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 JOHN G. BOWES, 
 
 •- ' Appellant, 
 
 THE CITY OF TORONTO, 
 
 Respondent^. 
 
 
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 ON APPEAL FEOM THE COURT OF CHANCERY 
 
 El 
 
 Si 
 
 J. W. GWYNNE, Sdlicttor/or AppeUanL^ 
 O. MOWAT, Soliciwrfor Bespon^enUi. 
 
 PRINTED BT MAOiEAB, THOMAS&CoI KINa STBEET» tOBOlifO.. 
 
 * - 
 
 1854. 
 
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 IN CHANCERY, 
 
 BETWEKN THE CITY OF TORONTO, PLAINTIFFS; 
 
 AND 
 
 JOHN (}. BOWES, DEFENf)ANT. 
 
 THE PLAINTIFFS' BILL. 
 
 TO TllE IIOXOUKABLE WILLIAM HUME lU.AKE, 
 - ClIANOELLOK OF UPPER CANADA. 
 
 The JiiUof Coniptaifitofihe Cltt/ of Toronto^ a Coi;p(t^ati(my 
 
 SlIIWKTH— tTO^ 
 
 . That ou the 25th day of November, 1850, thexJity Council of the 
 City of Toronto utbresaid, pai^iteil n rcdolution agreeing to grant us a 
 gift iu aid of the Toronto, Simcoo and Huron Union It)Mlroad Coin- 
 ,pany, on eertain eonditionct therein mentioned, the sum of £25,000 in 
 |>ebentures of the said City, payable in Twenty Years, witli interest 
 half-yearly, in Uie meantime, at Six per cent.; the said Debentures to 
 be delivered as the Railroad proceeded, and in a proportion of one to 
 ten itj^n the expenditure thereon. That on the 18th day oj^ August, 
 1851,.t}ie said Council passed another resolution agreeing to lend the 
 said Company, on certain conditions in such resolutions mentioned, the 
 furthersuui of £35,000 in like Debentures, to be delivered in like pro- 
 portions. That by somet arrangement between the snid Qompany and 
 Messieurs M. C. Story & Company, the persr>ns who were employed 
 by, and who contracted with, the said Company, to build the said 
 linilroad, the sjiid l^ebentures were to l»e delivered to the said Con- 
 tnictors; and that divers private negotiations took place between John 
 <r. Bowes, the Defendant hereto. Mayor of thei said City, and the said 
 Contractors, for the sale of the said Debcntu res to the said Mayor. That 
 Debi-nttircs i>f t)to stiid City, payable in England, were worth par or a 
 
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 prornium in tJwEiigJinli ^(nfkci, ftinl crtuld, m tlwwia Mayor knew or 
 iKjIicvwI.W iioj^Hiutwl thcro at par or a proiniuni, if what li« IciiflW or 
 lmliove.1 to l»o Ui« propor irt«fti»H for Unit piirjioiM) werw tiiki^n. That tlio 
 City couUl liave iiflgociatwj tIi«Han»P, ov<5n ln€ana<la. itt a higher rato 
 than for Eighty per cent, on the amount tlierrof. That, however, the 
 «ai.l Mnydr, being dwirotin of making 'a profit out and l»y nioann of 
 the aa ill Debentures, ontlto fucilitato the pmchating, legalising and 
 paying for the some, secretly propoaed to, and prevailed upoo the 
 llonoruWe Francis llincks, who resides in the Git y of Quelieo, in 
 Lower Canoda, out, of the jurisdiction of this Honorable Court, and 
 jhon wua and is still Intpcclor Ceneral of the Province of Canadv, 
 ond a Member of the Purliunient and Executive Council respect 
 ' tivbly thereof, to join him in the purchase ol auoh Debentures aa tho 
 City would issut) to the said ('ontraotors, and that half tho proflta 
 of the transaction should lie puid to or retained by the said Ilinckt 
 for his agency in tho matter. 
 
 Thot afterwards, and on the 28lh day of June, 1852, a 
 By-law was passed by tho snid Council, embodying the effect of 
 the said two resolutions, but not providingany rate for the payment 
 or redemption of the said Delientures, and without the prior publi< 
 cation of such By-law, us the law required, and though the atW- 
 tion of the said Mayor and Common CoUncd had been culled r 
 before the passing of the said By-law, tothe illegality thereof by 
 ' reason of the said circumstances, and though some members of the 
 Council objected to tho |iassing thereof on the ground of such rile-* 
 galily. That ou tho Thirtieth day of June aforesaid, the said 
 Contractors, m pursntmce ot the said negotiations wrth the said 
 Mayor, addressed u Ictlur to him at his request, proposing to sell to 
 him JC24',000 of the said Debi^ntures (to which sum thereof 
 they supposed tlifmseh'is to lie immediately entitled under 
 the said By'Iaw,) he |)uyiiig them Eighty per cent, therefor 
 on the deposit of the said Delienturcs in such Bonk in the 
 City of Toronto as he might desii^nato. That the said Mayor 
 secretly accepted the said proposal, in his own name, bill really in 
 pursuance of the said arrangements between him and the said 
 llincks, and communicated the said letter and acceptance to the 
 said llincks. That the intention and agreement of ^1 parties to 
 Ihp aaid sale were, thdt the whole of the Debentures to be issued 
 
 
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 to Iha Contmctoriby the nid Cily ihonl.l M sohl iimler the trmnge- 
 inont and at the rate referred to in the miid loiur. That tho •«iid 
 Mayor managed to defer tho iisuing oltiny of tho raid Delienturea 
 until the Twentyrflrat day of July in order lo uflord time for tho 
 raising of the money by the aaid Ilincka. Thiit on that day 
 £10,000 of the aaid Debentiirea Were iwiued and do|Kmiioil 
 by the Chamberlain by dirodtion of the wid Contractora in the 
 llpfwr Canada Bank at Toronto, being the Bunk where ihe Cosh 
 Account of the City was kept, and through which the money 
 transaoliona of the City always tooH pluco j and that the sum of 
 Jt'8,000 was paid by the said Bank as agents to iho said Contrac- 
 tors therefor, through the instrumentahly of the said Bo'ves and 
 Hinekf, wd partly oh the lecarity of the Debentures so deposited. 
 
 That afterwards tho said Railroad Company, being unable or un- 
 willing to grant the security required by ihe By-law, fi»r the said Iohd 
 the said Mayor proplosed to the said Contractors, and it wos ar- 
 ranged bolu'con thehi (subject to the opproliation ond concurrence 
 of the said Commoni Council, so far as such approbation ond con- 
 currence might lie necessary) that the said gift and loan should b« 
 aba jdoned, and that ill hou thereof, the said Contractors should 
 «ell to the B^Apty 10,000 Shares of the Stock, which they then 
 hold in the H^Roilroad Company, and which was of the nominal 
 but not actual value of £5 a Sharer and cduld have been bought 
 for cash at the time for less than half the jiominal value thereof; and 
 thut Debenturea or instruments purporting to be DelientJires of tho 
 said City, to the nominal amount of £40,000 should ;thereupon,be 
 issued to the said Contractors, and that the same, with the said 
 Debentures already issued, should be the purchase money of the said 
 Stock ; and, that the private agreement hereinbefore mentioned 
 for cashing the Debentures at eighty per cent, should apply to the 
 Debentures to be so issued as last mentioned ; and that such 
 Deb<>nture8 should aceordmgly be deposited in the Bank of Upper 
 Canada, aa mentioned in the «ii4 lettef j and that, the said Con- 
 tractors should receive therefor in cash, the sum of £40,000 only, or 
 four-fifths of the nominal amount of such Debentures, in full pay- 
 ment thereof and therefor, thus leaving a profit on the transaction 
 of £10,000or thereabouts, for the said Bowes and Hincks. 
 
 That the said agreement, so. far as communicated to the mid 
 
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 Cummon Cmincil^ wai nnclioncd by ihom jn dill (aitli niul con- 
 fldeiicfl tliot (he whola ■gr^einent had h«en cotnmnnicati'd lo 
 fh«m, and that the ttrmi comniiinioatfld to Ihom wore tlio 
 twit ttrmt that it was puMible to miikfl with (ho*iaid Con- 
 traotorii Imt the aaid Mayor did not communicate lo the anid, 
 Common Council, that the purchase money or amount (or whoih 
 the Miid DfbcMiturcs wore to be sold was i'iO.UOO only, or in ftiot 
 any pnrt of the armngenront the iMid Mayor had made with the 
 mid llmck!!, or thuaaid Contractoni for the purchase or cashing of 
 the said Dtflienturps. , • 
 
 That the object of the said concealment by the said Mayor was 
 to enable the said Mayor to obtain and appropriate to his own. use, 
 or such other illp(^il uses as he might choose, so much of the said 
 sum of XIO/XK) as should not'bo required tor paying disbunementa 
 connected with the transaction or for compensating the said Hincks 
 for his agency therein. 
 
 That the said Mayor might have rtiade or procured an arrange, 
 ment to save the City the suid iiun, instead of arninging fur 
 obtaining the some fur himself, but made no attempt to do so. 
 
 That afler the making of the said agrcenient,and a(\er the snme 
 hod been sanctioned by a resohition of thii^ said Council, Uit not 
 otherwise, the Contractors in pursuance oild port performance of 
 the said ogreemenk^so entered into with the suid Mayor for the 
 said City as aforesaid, transferred to the City, through the agency 
 of the said Mayor, 10,000 Slmresof the said Stock ; and that Debcn- 
 tuips to thil amount of £33,000 in the whole, were from 
 time to time issued, and were upon being so iwued deposited by 
 the Chamberlain of the City in the said Bunk, by direction of the 
 Contractors given at the request of the said Bowes, under and in 
 pursuance of the said agreement hereinbefore mentioned ; and 
 any of the said Debentures were issued before any actual 
 ransfer of the Stook therefor took place. ^ 
 
 That tho money agreed to be paid to the Contmctora on and for ■'^.■ 
 the said Delientures was from time to time paid to them by the 
 soid Bank, through the security and instrumentolity of the «^id 
 Hincks, in pursuance of the said arrangement between him ami 
 
' 7. 
 
 ntiuned : ond 
 
 
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 Itir nki noii^M, and without lh« Mid Miyjlhimilting nny |«y. 
 lurnt or ■dtt«no whatever (or or oo mccount thereur. 
 
 That mMnwhile,and on theSHrd day of Aiigirat, 1852, tho nid 
 Coiiiioil agrfffd to prtjlion Parliament for an Act to l<>giiliM Iho 
 iMiie of XIOO.OOO of Debenture of tho raid City, one half fur the 
 pHfchdie of the Stock, and the other half for consolidating the City 
 I)(plit ; and a petition to that effect was accordingly presented at 
 the o|ieaing of the I^egislature. -0^ 
 
 Thnt on the 22nd day of September a bill Tor that purpoae was 
 introduced into the Tiegislative Asseaihly, and on the 29th day of 
 the some month, Mr. Ilidout, the Cashier of the said Bank, by 
 direction of the said (Iincks,for the joint benefllof the soid Hincks 
 and Howes, oflered the City a loan of £ 100,000 under thejact to be 
 powod in ptirsuanoe of the said petition, on condition that the said 
 Debcniiires should betaken in port payment thereof. 
 
 Thnt a certain Act of the Parlioment of this Province, ■■ 
 iniitnled, "An Act to authorize the City of Toronto to 
 nfgotitilo a loan of £100,000 to consolidate a part of the City 
 delit,'' Mian then procured lo \m passed and was passed on the 
 7lh day of October hist. That on the 11th day ^ the said, 
 month the mid offer was accepted. Thatdti the 18th 0r 19lhof the 
 siiine month, £7,000 df the illegal Debentures, being^the residue of 
 the suid £!K),000 were issued through the procurement and with the 
 concurrence of the said Mayor,and deposited in the said Bank,and 
 lionghl from the Contractors for £5,600 cash, which wasTsised and 
 poid as in the case of the Debentures previously issued as aforesoid. 
 That on the following day the said Common Council possed a by- 
 law nuthorisingXthe Mayor to subscribe for, or take, receive, and 
 hold Stock in the taid Company to the amount of £60,0M for and - 
 onbehulfofthesoidCity. " - 
 
 That there was ntfvauthority whatever for issuing the said De- 
 bentures or purchasing the said Stock, except as hereinbefore /^ 
 appears; and your complainants submit whether what herein- 
 before nppears to amount to any such authority. 
 
 That on the 2nd NoWsmber following, a by-law was passed by 
 the Council without any previous publication, authorising the said 
 
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 loon of £100,000, and the same was e^ted according to, and in 
 pursMance of the offer mode through Mr. Ridout, and hereinbefore 
 mentioned. That the old Delieniureswcre returned tg the Cham- 
 berlain OS part of the loan, at par, and the said Bank passed the 
 remaining £50,000 to the credit of the City agreeably to the said 
 statute. That the Debentures so issued were immediately setot to 
 England, and either immediately, or before, sold to other persons 
 fri or^lwve par for the joint benefit of the said Bowes and Hincks. 
 that there was a profit made by the said Bowes and Hincks 
 on the purchase aforesaid, after deducting disbursements 6f nearly 
 £10,000, one half of which was retained by the said Hincks for 
 his agency in the matter, and the other half, or the sum of nearly 
 £5,000 was received by the said Bowes, which the said Bowes 
 improperly and illegally, and in breach of his duty in that behalf 
 to the City as Mayor thereof, paid into the funds of the firm of 
 Bowes & Hall, of which the said Bowes is the principal partner, 
 instead of paying the samo^over to the said City. That the said 
 Mayor persists in illegnlty holding the said sum to hisown use and 
 fur his own benefit, without any account to* the suid Corpomtion 
 therefor, and will do so unless prevented by the decree ol this 
 , Courl. to be pronounced in this suit. .■ 
 
 That throughput the whole of the said transactions the said Defen- 
 dant Bowes was an active party, and us^sd the influence he had, 
 and which was considerable as Mayor, and otherwise, to procure 
 the passingof the several Resolutions and By-)aWs of the Council 
 hereiKibefore mentioned, and to procuie the seyeral acts and proceed- 
 ings hereinbefore mentioned, to be performed, and taken on thf 
 part of the Council and its officers, respectively as aforesaid i in all 
 which tlie said Mayor had it in view to facilitate the making of 
 the said profit, but that through the contrivance of the said 
 Mayor, the said Common Council, until long after the several 
 matters hereinliefore mentioned had taken place, was kept 
 wholly ignorant, and did hot even suspect, that the Mayor had 
 any such private interest therein as hereinbefore appears, or had or 
 expected having any part or interest whatever in the negotia- 
 ;tion or sale of any of the saidDebentores or in the,, profit 
 thereof} but, on the contrary , the fl^iid Council believed thai, in the 
 • advice and recbmmendatimis he from, time io time cave to the 
 
Council, an^ the members thereof, and upon which they octed, 
 or by which they were i^fluencod, and in the active part he 
 took from time to time tn -Reference to the sume mutters, ho 
 was wholly disinterested, except as he hud an interest in com- 
 mon with all the other inhabitants and Rate-payers of I he 
 Cit|^, and that in fact the said uglreement with tlie Con- 
 tractors,- and the said By-law and Act of ParliDment were all 
 shaped, framed, and carried out through his means in such a 
 way as might enable him, and under the hope that he would 
 he enabled, to possenJhiimself of the s:ud jCd.OOO, without any 
 discovery being everlprae thereof by any uf the parties interested 
 therein, or entitled to call him to account therelbr. .^^^„ 
 
 ^at the said Contral![lors have not and do not pretend to have 
 anyclaihito the said Stim of £5,000, or any part thereof. That 
 the said sum hath been wrpkigfully and illegally diverted fronthe 
 funds and uses of the said City, and that since the diseovenr 
 thereof the said Mayor frequently and solemnly denied that to 
 had any concern therein. ;':',; 
 
 ' - ■ ■ ■ ' .■•"■■' ■''■■■'■■-,"■. 1 .^' ; /■ 
 
 . ■**^ ■,.,■■ v-i •■'.■'. . 
 
 To the end, therefore, that the said John (t. Bowe» n>^ be 
 ordered to restore ^nd repay to the said Corporation, to be applied to 
 the proper uses and purposes'pf the funds so diverted and mi^appro* 
 pHated by him as aforesaid ; and that an account of the said fund» 
 may be taken and all proper directions in respect of the said accounts 
 and funds respectively- given. And that your Complainants may 
 have such farther and Othef relief in the ptomilses as shall seem meet. 
 Yoar Complainants pray that a subpoena may issue under the seal 
 of this Honorable Court directed to the said John G. Bowes calling 
 upon him to appear to this Bill and observe what this Honorable 
 Court shall direct in that behalf. 
 
 And your complainants will ever pray, &c. 
 
 O.MOWAT. 
 
 Note:— The original Bill was filed on the 18th day of March, A.l>. 
 1853, and tiie Plaintiflfs were, David Patterson, Arthur Lepper, 
 Hugh Miller and Robert Sar^eant, all of the City of Toronto, Merch- 
 ants, and Jonathan Watson of tlie same place, Leather Dealer, they 
 being also inhabitants of the said City of Toronto, and suing on behalf 
 

 . i •/ 
 
 •■■■■-'•- ^ "■■•'';'■■■.:■ ■■'■■ ^ : ■./■'■^ ■,■:,■ 
 
 of themselves and ull other iiihabitauCs of the City of Toronto; and 
 the Defendants were John G. Bowes and the City of Toronto. ' 
 
 To this Bill the Defendant Bowes filed his answer on the 28rd of 
 August, 1858, which imswer is printed jwtf. 
 
 A replication having been filed to this answer, the first depositions of 
 the Defendant John G. Bowes, aild of Thomas Kidout were taken 
 hefore the Court which depositions appear pott. 
 
 The Fhiintiflb on the leave of Court, further amended their Bill, 
 under an order, by which the Defendants were declared to be at liberty 
 to demur to or answer the amended Bill as an Original Bill ; and all 
 evidence already taken was to be used as evidence under the amended 
 Bill; and the Court reserved the costs of all parties of the amend* 
 meAt and motion to amend until the cause should be finally dis- 
 posed of. 
 
 X- 
 
 . To this amended Bill the Defendant John G. Bowes, fil^ his 
 answer on the -^th day of Novemberi 1853, which answer is also 
 printed ^oSt^T^ 
 
 The remainder of the depositions, 
 pleadings as they thus stood* 
 
 zc., were taken tinder the 
 
 The leave of the City Council having been subsequently obtained 
 for substituting the jame of the City as Plunti&', the Bill was fiirther 
 amended by making this change and omitting the charges incidental 
 
 thereto, under the following order tT-> 
 
 \ ■ ■ ■ / .■'..,' . '• 
 
 ** Upon the application this day made to the presiding Judge in 
 Cambers by ConnseHor the Plaintiffs, and the said Defendants, 
 the City of Toronto consenting thereto, and the Defendant John 
 G. Bowes nut appearing though duly served with notice of this 
 applioition, as by affidavit appears; and on reading the affidavit of 
 Joshua George Beard, now Mayor of the said City, and a copy of 
 the Bill with certain proposed amendments, and the several pro- 
 ceedings had in this cause : It is ordered that the Plaintiffs be at 
 liberty to amend their Bill in this cause by striking out the names 
 of the present Plaintiffs, and substituting therefor the name of the 
 Corporation of the City of Toronto us Plaintiff^ and hy^maknig such 
 

 a. the 28rd of 
 
 fiirthor amendments OS may be neoesttiry so fhr nis the same are 
 incidental ami conseqentiul upon the said substitation ; and tha' 
 thu answers of the Defendant Bowes llo stand as the answers to the 
 said Bill as so ameaded ; and that the replication, deposit ions, and 
 other proceedings hod in the cause hitherto be taken as the replica- 
 tion, depositions and proceedings under the amended Bill ; and tha' 
 the hearing of the said cause do take place at the time for which the 
 same hath been set down, and that the suit do in all respects after 
 such aniefidinent, stand in the same plight arrd condition in all re- 
 «))ects as before the amendment; andthisOrder is to !;o without the 
 us^uhI security for costs required in such cases by the practice of 
 the Court being first given, the Solicitor for the said Bowes having 
 without prejudice to any question waived the same on^ the under- 
 taking of the Plain! ifis* Solicitor to give the same when demanded* 
 
 » 
 
 •^./^.'i >- ^ j-^j'\,^ 
 
 in under the 
 
 ANSWEli OF DEFENDANT BOWE& 
 
 . ' [Filed 23Td Augigt, I8a«j/ 
 The answer of John G. Bowes, one of the defendants to the Bill 
 of complaint of David Patterson, Arthur Lepper, Hugli Miller, and 
 Kobert Sargent, , of the City of Toronto. Jiferchants, and .Tonathan 
 Watson, of the same place, Leather Dealer, they being also inhabitants 
 of Ike said City of Toronto, and suing on behalf of themselves and 
 all other inhabitants of the said City of Toronto. 
 
 This Defendant denies it^to be true, that any such agreement as in 
 the said Bill of complaint is alleged, or any agreement to the like 
 etfoctj was ever made or entei-ed into by. and between this Defendant 
 and the said Messieurs Story <fc Company, in the said Bill mentioned : 
 but tliiA Defendant says, tiiat in the Month of November, 1850 the 
 City Council of the City of Toronto, at the joint request of the Board 
 of Trade of Toronto and the Directors of the Toronto, Sinicoe and 
 Huron Union Railway Company agreed to grant as a gift to the said 
 Railway Company the sum of i! 25,000 in Dentures of the said City< 
 payable in Twenty Years, and bearing interest at the rate of Six per 
 centum per annum,such Debentures to be issuable and delivered to the 
 said Railway Company in proportions or instalments of Ten Pounds 
 
 J* 
 
>** 
 
 . ppiS^i-Ji^HT, 
 
 ■ ■ . . ■ ' ' ' ■ ■ '■ .' , ■ ' 
 
 pftr centum m the work of the Railway of the said Company shoutd 
 jiro^rt^; that in the Month of Aiigtwt, 1851, the City Council of the 
 said Cit}^of Toronto, at the request of the inhabitants of the said City 
 of Toronto, expressed at a Pul»lic Meeting of the said inhabitaiito for 
 the puriMwe convened, agreed to grant further aid to the said Railway 
 Company in the shape of a loan of £35,000 in like City Debentures, 
 such loan to be^ secured by the bonds of the said Railway Company, 
 payable in ton yiars, \vi^» intoroMt half yearly ; that in the month of 
 June, in the year M' our L(»rd 185i, the said City Council passed a by- 
 law, authorising thiiB Miiyor ofthe saiil City of Toronto for the time 
 Ix-ing, to cause Debentures of ili«»aid City of Toronto to Die ijsued and 
 delivered to the snid Kiiilwny Company to the amount of £60,000j^ 
 upon the conditions ill the said Hy -law specified. And this defendant 
 B:iy», that on the 21st dayof JuIav 1852, l>ebentiire8 of the said City 
 of Toronto to the amount of £10,000 were issued to tIjSa iSijiid Railway 
 Company, upon account of the said gift of £25,000, " 
 
 And tills defendant sny«, that objections having been raised by the 
 said Railway Company to seeming to the said City of Toronto re-pay 
 meht of the said proposal loan of £35,000 tn the manner required by 
 the resolution of the sai«l (!ity Council authorizing the sanie, various 
 moiles were 8ugge.«<ted, w* well by th« sard Railway Company as by 
 various members of the said City Council, to obviate the difficulty i»» 
 which the said Company was |>laced, by its inability to meet its 
 engagements in consequence of the said loan of £35,000 being with- 
 Jield until the security contemplated by the resolution- awthorisingsiich' 
 kan should be j^orfectcd, and the said Messieurs M. G, Story & Com*" 
 pany,.in the said Bill montloncd as the Contractors of the said Rail- 
 way, ox prcsfsed their readiness to assent to any other arrangements 
 which would enable tlieni to moot certain pressihg engagements, 
 which they had entered into upon the' faith of the said £35,000 Icwin 
 b6ingperfecto<l, ^ 
 
 And this defendant says, that as Mayor of the said City of 
 Toronto, 4his defendant Jiad divers inteniews with Mr. Berczv. 
 then President of tbo said li:iilw?iy Company, for the purpose of 
 arriving at some arrangement relative to the said . £35,000 which 
 might prove sattisfactory to all parties concerned, ^d On the 29th day 
 of Jidv, .1852, the said Mr. Berczy suggested to this Defendant that 
 his Defendant shoiddj)ropo.sc to the said Mcssieui-s Story & Compiiny,, 
 
y 
 
 to whom tlie said gift uf £25,000 beluJijH, A»ftt th«y, the snia Ci.rk 
 tractors hIiouW «irrejider Uie said gia lii.on o^nditiou, that tlie khuI 
 Railway Company shoukl waive all right U^ the wiid loan of i*:J6,000 
 aud that in lieu of »uch gift and such loan the said City of Toronto 
 •hoiildtake Stockin the said Railway Coinimny to the amount of 
 £60,000, and that the said City of Toronto shouKl issue thoir Deben- ' 
 /■■ turcs for an amount »vhich, together with the amount already issued 
 onaccount of such gift, should come to the said sum of £60,000. 
 
 And this defendant says that he acquiesoeil^jV^such suggestion of the 
 ., «aid President of the said Company the moreireadily, because blame 
 had been attached by certain of the inluibitants of the said City to 
 the said City Council for mating the said gift of £25,00^ instead 
 of subscribing for Stock, when it was ascertained as the fact was that 
 the said gift and all benefit thereof had been handed over by tlie 
 said Railway Compauv as a bonus to the said Contractors. 
 ■; ■ •:■■ . T .. . ■ ■.■■"'■ ■ ■/ '' .' ■ .;■ ■■■■:■'•.■ ■ ■■; ■ :■■. ;.■' 
 
 \ *' And this defendant 8a)-s that in pursuance of the suggestion of the 
 siid President of the said Railway Company this Defendant upon the 
 same 20th day of July, had an interview with one Mr. Learmohd upon 
 ' behalfof the said Contractors and made to him the said proposition, 
 ao as aforesaid suggested by the said President of the said Company, 
 and tlie^said Mr. Learmond, then in the presence of the said President; 
 of the said liailway Company, assented thereto, and upon the evening 
 of the-same 29th day of July, this defendant communicated the same 
 proposition to the said City Council, aijd in communicating the ?ame, 
 " thisDefendant did communicate the same faithfully ahd truly, and 
 withheld nothing whatever save that the said proposition had emanated 
 from the §aid Presideut of the said Company, and thereupon the said 
 City Council passed a resolution, authorizing the Standing Committee 
 on Finance and Assessttient, to complete such arrangement upon certain 
 conditions in the said resolution set forth, and to whicli resolution thia 
 Defendant craves leave to refer. r 
 
 ^And this Defendant says that the said resolution of the said City 
 Council having been communicated to the said Railway Company, 
 the Secretory^ of the said Railway Company, upon the 30th day of 
 the same month of July, enclosed^ this Defendant a resolution of 
 the Board of iJirectors oif the said Railway Company, which was in 
 the words following: «♦ Resolved,— That the Board of Directors 
 
 *9l I 
 
/ . 
 
 13 
 
 « ■ ■ 
 
 "agree to *tne proposed arraiiguinoiit btftwceii the City'C«nmcil ami 
 *'M. C Story A Co., Hubinittod iuiho r«»oIutii>ii of the City Coimtil ' 
 "of the 20th iiidtaDt, without 'prejudice t<» the existing urrHMgemeiitrt 
 " between the Council and the Bourtl and Uio Contractors, iiv th6 event 
 "oftlieouo proposed not being aCconipliHhtMl ; An*! furth/>r, without 
 '"prejudice to tl«e other parts of tlie aaid existing agreenlents which 
 '* are not to I»e atlecteil in any way by the substitution proposed fof 
 " certiiin parts of those agreements." j / "^ 
 
 And tlii.i Defendant says that upon tlic said 30th day of July,' and 
 in pursuance of the said last mentioned agreement, 3250 Shares iiT 
 the Capital Stock of the kaid Railway Company, amounting to the 
 sum of £10,25,0 were issued by the said Itailway Company, to and ii 
 the name of the siiid City of Toronto; a«l this Defendant says th.i 
 on thoaisjt of the sj^me month of Ju^-, Debenturen to the amount M 
 ie:),oipO of the said City of Toronto, and upon the 3rd day of Auglist 
 18512, the further sum of £ip,000 of like Debentures were issued to 
 the said Kail way Company, and on the 18th day of the ^aid vfo\\\k 
 of August, 17r>0 SharesintheCapital St<Kjkof thesaidRiilwayiJotn- 
 pany, amounting to the further sum of i|8,to0 were issued ti/jrtid in 
 tlw name of the said City of T«»fonlo, and in the 30th day of tlic same 
 month of August, 4250 Shares in the Capital Stock of the iai.l llail- 
 way Company, amounting to the further sum of £21,250 \V^rc issued 
 ti) and in the name of the said City of Toronto, and on the 3 1st day 
 of ih^ same month'' of August, pebcntures of the said City of Toronto 
 to the further amount of £13,000 were issued totlie said lUil^ay 
 Company, and on the ninth day of the month of September, 1852,^ 
 VSOShares in the Capital Stock of the said Uailway Company, anifSunt- 
 ing to^the further sum of £3,750, being the balance of tlMjsaii sum 
 ofr ^50,000 referred to in the said resolution of the said City Cbun<:il 
 pf the 29th day of July, 1852, were issued to and in the name/pfthe 
 said City of Toronto, and on the 30th day of the said mouth of Sep- 
 tember, DeWntu res of the said City ofjoronto to the further amount 
 of £5,000 were issued to the said Jfi^ilway Company, and on the 19th 
 day of the month of « (otober, 1852, the s/iid Railwriy Company, being, 
 as this Defendant believes that they were, entitled to receive Deben- 
 tures of the said (Mty of Toron/o to the amount of £7,000, being the 
 balance of tire said sum of £50,000 Stock, Debentures of the said City 
 of Toronto, to the amount of /he said simi of £7,000, were on the said 
 19th day of October , isM i ft l /to the said Railway Company. 
 
 /■' 
 
^ 
 
 1^ ■ :•■■■..• 
 
 ^Atid iIiIh It defendant says tliat all of the said several Debeatures, so 
 art atorcMttid Ihhu^ by the naid City of Toronto, were, an this Defend* 
 ant verilv b'lieves, bo iRsued with the sanction of the Finance Com 
 niittee of the said City of Toronto, and in pursunnce of the UesohitkJn. 
 of tlio City Council, in that behalf; and the «aid rj^bentureai. #ere oh 
 tliiH Dpfcndnnt verily believefl, deliverable to the said MessieurB Story 
 and Coini>any, by virtue of an arrangement between the said Uailway 
 Conipiniy and the said Messieurs Story and Company, entitling them 
 to receive tlio said Deb^tures, and from the time of the said Deben- 
 tures re^'poclively being issued, the same became, and were the absolute 
 pn»perty of tlio said Messieurs Story and Company. -j .. - ■ . 
 
 And this Defendant sjiys, that doubti having been entertained as to 
 
 the legality of the said subscription of £50,000 Stock in the said Rail- 
 
 ^ way Compnny, and the- City Council of the 'said City of Toronto, 
 
 being, as they were, desirous in good faith to carry out the said 
 
 agreement embodied in the said Resolution of the 29th day of July, 
 
 i852» and boing desirous also of being empowered to effect a loan for 
 
 p other purpojjcs, the said City Council petitioned the liegislature for the 
 
 Spnpsiiig of MM'Act, which was subsequently passed, intituled, "An Act 
 
 " '• to autliori7.o^th6 City of Toronto to negotiate a Iqan of £100,000 to 
 
 "^. 
 
 consolidate a^art of the City Debt," and in such an Act the sub- 
 
 scription of the said Stock, of £50,000 is, as this Defehdant is advised 
 and believes, recognized and confirmed. 
 
 And this Defendant sayS) that on the l8th day of October, 1852, a 
 l^y-Law of the Common Council of the said City of Toronto, was also 
 passed, which,\ although th^ same purports to be authority for the 
 Mayor of the said^U^ of Toronto to subscribe for 10,000 Shares, of 
 £oO,000 in the Capital Stock of the said Railway Company, was in 
 fact passed tor the purpose of legalizing and confirming the issue of 
 Stock so as aforesaid niade to and in the naiile of tiie said City of 
 Toronto, to the said amount of £50,000. 
 
 And this Defendant denies it to be true that the said By-Law was 
 procured to be passed or was passed in consequence of or in pursuance 
 of or for the purpose of carrying out any such agreement between this 
 Defetidaht and the said Messieurs Story and Compauy as in the saidj 
 bill is alleged. And this Defendant denies that any such agreementi' 
 
 was made ur entered iuto. 
 
 f^L 
 
at 
 
 !• 
 
 'i- 
 
 And thwDefen<Unt«fty« that the mmlMo^HMM.r. Story ami Cert pany 
 reived the whole of the M Debenture, for i;60 (TOO HnU approjm- 
 
 !Z the Ha„u... to then Hecnecl fit. An.l th. Defemknt deu.c. . to 
 be true tlua the said Debenturen for £60,000 were rede^aned or that 
 it WHH ever agreed that thoy should bo redeemed by iU HubnUlUi on 
 Of Debenture, to the nnumnt'l.f £40,000, or by the paymjnt of the 
 .um of £40,000, ftrUing from the huIo of Debentures ..sued under or 
 by virtue of the .aid Act, entituled, " An Act tx> authonze the C.ty of 
 "Toronto to negotiate a loan of £100,000 to consolidate a par of the 
 *. Citv Debt ;" but the same Were, as this Defendant believe., redcem.'d 
 by L iasue of Debentures of the said City of Toronto to the amount 
 of Fifty Thousand" Pounds, );^the Chamberlam of the said City m 
 
 * pursuance of the mvid Act of Parliament. 
 
 . And this Defendant <lenie9 it t« be true that by any of the transac- 
 tions or matters attending the issue of any of such Debentures the 
 said City of Toronto has incurred a loss of £10,000 or ot any sum Q: 
 money or that the said sum or any sum has by thi. Defendant, or 
 to his kiiowledge and belief by any person been dive, ted from the uses 
 of the said City of Toronto 
 
 And this Defendant suys that the subject matter of the said bill of 
 complaint Wits, upon the petition of the said Cmpluinanrs and others, 
 brought under the notice of the City Council of the said City of Toronto ; 
 and that in consequence of the report of said Committee ,md ot the 
 evidence adduced beft.re the said Committee, the said City Council 
 in the free exercise of their judgment and uninfluenced by any 
 misrepresentations of. this Defendant-for this Defendant denies the 
 making of any misrepresentations in the matter— declined to cause any 
 proceedin.rs to betaken against this Defendant, for the reason, as tins 
 Detendant believes, that the said City Council arc satisfied, and well 
 Aware that there is not, as this Defendant says there is not any founda- 
 tion in fact, for the jillegations and charges inacle by the Coinplainanta 
 against this Defendant . ; : joHN W. GNVYNNK 
 
 (Signed), 
 
 J. G. BOWES: 
 
 The Detendant John George Bowes, on the Twenty-third day of 
 Auguot « » ne Thou s and F.ig ht Hundred and Fifty Three, appeared 
 belbre me at my chambers in the City of Toronto, and signed Uiefore^ 
 
*T'Sf3l 
 
 (f<.lng annwer irt hiyprewnce, and thereupon w«« »worn More mir, 
 That ho had read tlio wiid aiwwer, and know tli« conlenja thereof; 
 an<l that the wuno waM true of^ \m own knowknige, except ati t« 
 inattorH wliich are therein stateil to bo on hin information and belief, 
 and as to those matter* ho believed it to be true. 
 
 / A. BUELL. 
 
 THE SECOKD ANISWKROFTUE 1)EFENDANT. 
 
 / [Filed, 24th November, 1»53,] 
 
 The Antwef of John G((yrge BowtH, one of the Defendants to the Bilt 
 of complaint of David Paterson, Arthur Lepfyer, Hugh Miller, 
 Robert Sargent, and Jonathan Walaon, Plaintiffs, suing on 
 behalf of themsehes and all other inhabitants of the City of 
 Toronto, fled in this Court ori the 2(Slh day of October, iiv th$ ■ 
 year ^ oar Lord IS53. .J 
 
 in answer to the said Bill, I, John George Bowes, jttie above 
 Defendant, swy that to the best of my knowledge, hifornijit;|oa and 
 belief. Debentures of the City of Toronto, payable in Englaidd, Were 
 hot worth par or a premium in the English market as in the said Bill 
 h alleged, and that neither in that or in afty other irtarket, could they 
 have been negotiated atpai* as fn the said Bill is alleged. And I say 
 that to the best of my knowledge, information and belief, the said 
 City could not have negotiated the .Del>enture» in the said Bill firstly 
 mentioned, at a higher rate than 80 per cent, on the amount thereof, 
 if the same had been ottered for sale by the City in the Canada market, 
 and I say that such a transaction, even if it could have been effected, 
 would have involved a clear loss to the City of 20 per cent.; whereas 
 under the terms upon which the said Debentures in the said Bill 
 mentioned were issued, the City of Toronto, negotiates! the same, and 
 only issued the same at^r. iia^ 
 
 And Isay thatthePPiwof the 28tMlfcy^fJune, intheyearof 
 our Lord 1852, was, with all due deliberation, passed by the Council 
 of the said City of Toronto, at which I presided in my capacity of 
 Mayor, notwithstanding the alleged objections to the s aid By daw in 
 
 
 < (^ ■ 
 
 ; s '■ jT- * 
 
^pp»<[|^^jy7'r^^y»-^ 
 
 
 ,^ ^rv^r. l-rf^ Jt-f* J- 
 
 
 ■ 10 . 
 
 t ■ 
 
 f ' • 
 
 the Mia IJill in«ntion«l, partly, mI believe, for Uie rewon that .l.na.i* 
 were enUsrUiiiotl hm U) th« vniidily «f •uch objoctioim, hikI imrlly 
 becttUrt« tli« HHilway Coin|»»i;y uiui the ContracUim in th« w»ia Bill 
 montioiKHl exprc^wMHl thnim«lve« to l>o most iiuxious that nwh Hy-liiW 
 thouia be pasHt-a notwith"tan<ling nuch objections ; and bocaune the 
 ■aia Couuoil were of opinion that the action of the inhabiiantH i)f tho 
 laid City, who, in public incetingH aMcmbloa for tlio purp.**f, hn.l 
 requeatca tho wiia Council to aia tlw wiia Railway Conipahy, and that 
 tho action, of tho naia Council by their votoft ana ro««)lutloMH of tho 
 25thaay of November, 1850, and of the 18th aay of Augunt, 1851, 
 in the Haia Bill m«ntionca, aaopting such aonire of the inlmbituiits, 
 hod alroaily given to the «*aia Company and Contractorn, a ju>«t l.'jjal, 
 .moral ana equitable claim to^ have such By-law paawHl.nHd to havo 
 the same legali^oJr" »uch objections Bhould prove valid. 
 
 And ladmlTit to be true, that the said CoutractorB ijUhe <.aia Bill 
 mentioned., not ohiy believing themselves to be as in the^said Bill is 
 mentioned, but being, as I submit they were, justly entltka to tho 
 absolute control over the Debentures referrea to in the letter of tho 
 QOth day of June, 1862, in the said Hill mentioned, did fldaross-trj 
 me the letter of that date, ana dia thereby offer to sell to me tho^. 
 £24,000 of Debentures to which tho saia Contractors, haa, in th^ 
 manner in the saia Bi|l antl heroin as afore is mentioned, boconjo 
 entitled ; ana that I, upon behalf of myself ana partner, o«e John 
 ttall,'traaing unaer the name ana style of Bowes and Hall, aia, to- 
 -geUier witlt Francis llinck»i in th^ia Bitl mentioned, ev.jutually 
 agree to purchase; aua aia purchase, from the saia Contriutor* tin 
 saia £24,000 of Debentures so offerea to me at the rate in ih^ suid 
 Bill mentioned. 
 
 . And I say that I jim infornaea ana J believe Hto bo tnlo that 
 the saia Contractors haa offerea to sell the saia -DebouturK.s aud 
 all Other Debentures of the saia city, to which they bolicvcJ lluiii- 
 selves to be entiUea,to aivers persons at the rate of £76 per leiit.; uiul 
 I aamir-t^t tlieydia^ell the whole of the Debentures of ilic saia 
 City to which they aia become entitled as herein is mentions I, tome 
 «na my saia partner, Jobh Hall, ana to the saia Francis lliniks, at 
 the rate of £80 cash for every £l00 of Debentures; ana I believe 
 that if they couia hav o got t en a bet t er pUce they would not have ao 
 
• ; «■ ■ 
 
 i ' 
 
 IT 
 
 Aiul I deny it to b« true that by any raanaf^omont of miofl th« 
 iMHtiing «»f «ny of tho Miid Dobootur** in the «aiU Hill mrtnUonod waa 
 deferred until tho 2Ut day of July, 1852, an in tho said Hill la 
 all«>K««l ; »ii«l I Huy that I had no control whatever in <lclaying the 
 iitNUO of lh« miid l)«lK!ntur«» ; and I any tlmt if any tlolay did Uke 
 |)liu'0 after the n»|M'ctive tiiuea when tho «aid Contractom thowed 
 themwrlven ontitl«d to receive mucU I)cb«»ntur«a by compUanoe with 
 the voto antl rwolutioiw of the Coulittil of tho said City relating ther** 
 to, •m*h delay must have arisen, aa I believe, from tho circunistanot 
 ' that th»> Chaiiiberluin of tho iiaid City, whose duty it waa to prepar«^ 
 audi DobonturoH, wan unablo to have tliom propt^rly filled up, and 
 executed f*)r insuo, And I admit it to bo true that ujwn the security 
 of tho naid firm of Howes k Hall I did raise the sum of £8,000 
 to pay to the said Contractors, and tliat after payment of that 
 sum to thcin, they, tho said Contractors, did, after receiving the 
 Debentures of the said City, issued upon the said 2l8t day of 
 July, tieposit the same, or cause the same to bo deposited, in thoBahk 
 of Upper ('anada, and I upon behalf of the said firm of Howes k Hall 
 claim to be entitled, togetlier with the said Hinck»,to the s|iid Deben- 
 tuli^ HO depoHitcd, as purchasers tJiefeof from the persons entitled||| ^ 
 tho abHolute control over such Debentures. And I admit it to be tnia 
 that the said Kail way CompjKiy in the said Bill mentioned, did declioe 
 to give tho security required by the resolution of tlio Council of the 
 said City authorizing the loan of £35,000 in the said Sill mentioned ; 
 and I say that notwitlistanding their declining to give such security, 
 tliey nevertheless were deairous of receiving the benefit of such 
 loan ; and I say that tke inhabitants of the siud City having, 
 at a public meeting for the purpose held, expressed their desire 
 tliat tlie said Council should, upon behalf of the said City and the 
 said Railway in the said Bill mentibned, and the liaid Council having 
 by tjieir resolution in the said Bill mentioned, adopted such desire of 
 the inhabitants of the said City, and the said Railway Compaay 
 having been unwilling to comply widi the termf upon which the said 
 loan of £35,000 was authorized, applieatioiw/ were made by and 
 on behalf of the said Railway Company to 'several, as I believe, of 
 tho members of the said Council to have reconsidered the terms of 
 tlie said rcsolation, authorizing the said loan ^i £86,000 ; and I say, 
 that having; been as I was myself, personally^' opposed to the said gift 
 
iwjiiipti^iii'isfpfiwijiiii^ 
 
 
 -J 
 
 i8 
 
 \ ;• : 
 
 / ■-, 
 
 prMMJ tl»«m<»«lvfl* dmttti«fl<Kl with tli« vol* of the Mid Council 
 •uthoriiin« tli« Mm.-, I wm tlmnm of Ukiitg «<lvRtit«i{0 of the 
 r«fuiMil of the m»i.l Ilailwfty C.)iii|)iiny lo giv« the «<jotirity riMinirca af 
 eondiUonal for the miia lotm of X'30,000, so far m U) «m.l«iiv,)r, -^ 
 the ground of «ut!i n-fuwil, U) obtnin from t\w»au\ Uftilway ^^ 
 tcnnn inort) IwifH'lU-iiil to iU nnu\ City nxul more ngrocfvljji' to'^lKTl 
 coni'oivwl U) 1k' tlio views t>f ft rniijority of th«f iiihabitantii thoroof, cow 
 •i»t4>iilly i»»ih H diiljs^npml to the vote* and r«»w>luTlUH ofth«Maid 
 Council tlfcn alruuUy i»n«».'d, uiitl with tho juHt right* of th<i miid Kail- 
 wif Oowipftiiy nci|Hir»'d tho^emuler; •nd Iiity that, Hiially,tiipif or 
 •boutth»5 UOlh day of July, 18S2, th« Prwidcnt of tlio wud Kail- 
 w«y Company j«ro|)»»t.Ml 'to in*', tliat, witli a view of ucttUng tho 
 Afferenoi'n oxiiting l»ol|N<'n tiio said Railway Company and tho Cor- 
 
 ; poration c.f tho »rtii|^jPll\, relative to tho prop««etl aid to tho «ftid 
 Railway, I shoultl,propfiti> to tjjo naid ContraotorH, who l»y arrange- 
 pet\i» iKitwoi'U them and»th«* said Uailwny Company wore entitled to 
 tbe/ iaid gift of £25,000 that tluy should resign tho Ram«, and that 
 th<l said Uailway Company should ro.Mgn tho »aid loan of* £35,000 
 and that in lieu "f nnch gilt and loan tho said City should subscribe 
 for and tftlce Stock to tho amount of £50,000 in tho said Uailway 
 ^mpany, which StfK-k was then at tho disponml of tho said Con- 
 kjmcton, and that tho "said City should jpay Tt)r such Stock by 
 the issue of Debcntiurcs to tli« »aid ft'illfHjyjj^JIJO.OOO. And^l 
 
 ' / My that believing ilfte such an an-atuMSHlb^ild ^*^|||^i^ 
 in fact wa-s most bonoHcial to the said 0HBIpn™|rOiW8O thosame 
 to the said Contractors, and it was accepteil by them, and at the next 
 meeting of the hnid Council, 1 communicated the same to tho said 
 Counojl, and it wjw, upon due deliberation, adopted by thorn ; and I 
 t by Hiich an arrangement the said City has l>eon verj' mate- 
 oncfitMl, and that no more favorable Krrangeraent for the said 
 dould ^||j!|,|j*'*^" obtained from tho said Railway Campatiy and 
 Intractors in^io said liill mentioned ; and 1 say that tho Council 
 of the aaid City in atithorizing tho subscription of Stock in the said 
 Riulway in manner and upon tho terms aforesaid, did so upon due 
 deliberation of the propriety (»f the step upon its merits, and because, 
 as l\believe they were, by so doing, most effectually consulting the 
 iutermts of the inhabitants aiid rate-payers of the said City. And I say 
 that I uo not know wliat tho actual ma r ketable value of sha re s i n the 
 said Rauwny Company was, nor that they had any roarkotablo value, 
 
 i 
 
 ,* 
 
 ,^4 
 
 
 ■.:■ : ^ 
 
 ft 
 
t 
 
 19 
 
 ^ 
 
 •t (h« tiin« ihiit the •»!(! Cily Council nJtrmA to c<wiv«i llmh ftng^ 
 menu with Uie i*«ia lUilwuy Coin|riiny iii»o Hto.li, aihI I do not l>«»(tv« 
 timt Simrm in tlio CiiiHtiil St.«k of ll,« .mid lUilwiiy ( oinpany wM 
 tii.-n liiiv« Uum iKHiglU for httif tJi^ noinin«l v«lu« therooT, M inthowld 
 Hill iit alloK-Hl, nor do I Iwliove that they w^ro tU««n in Ui« nmrkot »t all 
 foriuilo nt «ny diHooinit. Ilowuver, I wy thiit the vi«w of tH« «»id(Joun. 
 cil wiw* faithfully to curry out, in»uUiUnc«, their ongur'«»«n*» '^i^' ^« 
 lUilwny Ooinpnny to nid thoir undi^rtnkin(( ; mul thi«tto h»Tft purch- 
 awjii Htock in tho i.ni<l llnilwiiy Coinpuny, by or on l)iiiHlf of Iho «»id 
 Council, othorwiBU thiiu m »uUcril)erH at pur, ^v^-rvM nor would _ 
 have been for a nioniont contcinplfttcHl by th« wid Oouncil; and I 
 lay that, if th«Hai«l Coun«il had wished to purilinr«'H(Aj«k In the aald 
 Railway Company at ii discount of X50 p<>r cent., an in thivtaitl Dill M b 
 allowed might have been donts such a trannnction nover could have 
 beon of any btMuflt to tlut noid Ituilwny Company, and never 
 would have boon asscntod to by thorn ; and., I wiy tlwt, accord- 
 ing tt>,tlm bo«t of my knowlodjjc, information, and belief, th« 
 ■ame ne^r would have boon, or with, any propriety o»ttld have 
 been, entertaiuijd in tho Council of tho said City ; but that iucU 
 a proposition would have been regarded 4« a frauil upon tho *id Rail- 
 way Company, and m an nttemi»t, without any pretext upon the part 
 of tho fiai«l Council to evade thoir engngementa. doUberatdy made 
 with tho «aid Company. And [ admit it to bo true that *60,000 
 tforth of Stock in tho Baid Railway Company has betn duly 
 alloted to tho said City, and tho certificates of. Shares fiorefor 
 wceived by the Haid City ; and that tho Chamberlain of t^ said 
 City did, w I believe was his duty, issue £50,000 of Delienturea 
 ^ of Uie said City in payment of such Stock— 'Which Debentnrea 
 H w«e, by arrangement between Uie «aid Railway Coinjpany, aid the 
 C«ntractor8, as in the said Bill is alleged, deliverable/ to, and were 
 delitercd to, tho said Contractors, or to their order. / - |||. 
 
 * And I admit it to be true, as in the said Bill is lAlegedy that the 
 Council of the said City of Toronto did petition Tarliament for 
 ^tho passing a Bill to authorize tho City of Toronto to negociate 
 a loan to consolidate a part of tho City Debt; And I say that, in 
 80 doing, the Council of tho said City acted deliberately, and with 
 a vi o w to tho inter w t a of th e sa id City; an d T sa y t h attjch Bil 
 was, by tho Legislature of tho T*rovince, passed into a^l^w ; and 
 
 i 
 ■ j 
 
 ( 
 
 
 '* 
 
 ;■ 1- .' 
 
 
 1? 
 
 ■i^ ' 
 
i it 
 
 i 
 
 ■X; 
 
 20 
 
 say that thereby also the said City has been very materially 
 benefitted. 
 
 •^: 
 
 ud 
 
 And I 8ay*that the said By-law in the said Bill mentioned to. 
 have been passed in the month of October, 1852, was, as I 
 believe, passed for the purpose solely of confirming the Resolu- 
 tion for tlie taking of Stock in the said Rail wayCompanyr passed on the 
 29th day of July, 1862; and I submit, whether, after the passing of 
 the said Act of Parliament, puch By-Law was necessary, and whether 
 or not the issuing of tlie said Debentures, or the subscription of Stock 
 in the said Company is defective or illegal, for the reasons in the said 
 Bill in that behalf suggested, I submit, ought to be referred to the 
 proper tribunal in a matter calling In question the legality of such sub- 
 scription and the issuetrif such Debentures. 
 
 And I deny that the said sum in the said Bill mentioned, or any 
 sum, has been diverted from the funds of the Corporation of 
 the City of Toronto— or that the Rate-payers or inhabitants of 
 the said City have beeYi or can be prejudiced by the trans- 
 action in the said Bill conaplained of. And I submit that the 
 Contractors in the said Bill mentioned, had,- as it was intended that 
 tiiey should have, the power of disposing of the said Debentures 
 80 as aforesaid delivered to them, and that they had a perfect and 
 absolute right to dispose of the same to me, or to any other person ; 
 and I submit that the circmnstance of my being a member of the 
 Council of the said City was no impediment to my acquiring from the 
 9aid Contractors an interest in the said DebenUires, or to my purch- ; 
 aaing the whole of suqh Debentures from them. And I admit that I 
 out of the purchase of tiiie said Debentures from the said Contractors, I 
 thefimiofi^wes <fc Hall have realized the sum of £4,123 9s. lid. : 
 Currency, and.no more; but I deny that such >»», or any ; 
 part thereof has been in any way realized out of the City 'Funds, or ; 
 
 • that the Funds of the Cilj^ or the interest of the Rate-payers of the \ 
 •aid City have been thereby prejudiced ; and I admit that upon ih(\ 
 occasion of proposing to the said City Council that they should con- 
 rert their engagements with the said Railway Company into Stock, 
 
 ~ as herein aforementioned, I did not communicate to the said Council 
 the feci of the said Contractors having ofteredto sell to me any of the 
 bebentnras to which the said Contractors conceived themselves to be 
 
31 
 
 entitled, but I say that I had communicated such fact previously to 
 the Finance Committee of the said Council at a meeting of .tliat 
 Committee, and I submit that the fact of such offer having been 
 made to me by Ihe said Contractors, or tlie fact of ifly having any 
 interest in such Debentures were matters wholly irrelevant on the 
 question of the propriety of the said Council adopting such proposition 
 for the taking of Stock, and that neither of such facts should have had 
 any effect in enabling the said Council to come to a just conclusion 
 upon the said proposition ; and I say that the said proposition was 
 deliberately con;sidered by the said Council, and was adopted by tliem 
 upon the merits of the proposition itself, and that tho adoption thereof 
 by tliesaid Council was highly beneficial to the said City, and to the 
 Rate-payers and inhabitants thereof ; and I Say that whether or not 
 I had agreed to pnrchase any of tlie said Debentures from the 
 said Contractors, my conduct in the Council relative to the several 
 Hesolutions and votes of the said Council in the said Bill referred to, 
 ilrouldhave heigin.precisely the same as it has been; and I would have 
 acted precisely* in the same manner as I did act if any other Rate- 
 payer or inhabitant of the said City had contracted for the purchase 
 of the said Debentures from the said Contractors ; and I say that I 
 neVer have either upon any of the occasions in the said Bill referred to, 
 or upon any other occasion given my vote, nor have I ever exercised 
 any influence for or against any. Resolution or matter before the 
 Council, from any other motive than that of consulting the interests 
 of the said City, and orthe Rate-pajers and inhabitants thereof, con-r 
 sistently with a due regard to the obligations and engagements of tha 
 said Council; and I submit tlijit neither the Plaintiffs in the said 
 Bill mentioned, nor any of the Rate-payers or inhabitants of the said 
 City, nor the said City Ccouncii Have any i?laim upon, or interest in 
 any part of the said sum, so as hereinafore mentioned, realized by the 
 said firm 6f Bowes & Hall, nor have they any right to call in question 
 the sale of the said Debentures by the said Contractors; and I say 
 that I believe the reason why the Couiicil of the said City of Toronto 
 have refused to take any proceedings against me in respect of the 
 matter alleged in the said Bill, is because the said Council is con- 
 yinced that, as I submit the fact is that, the City of Toronto have not 
 any legal, moral, 6r equitable claim against me to recover to the use" 
 of the said City any part of the said sum, so as aforesaid realized by 
 the said firm of Bowes & Hall; and that the funds of the sai^ 
 
 / 
 
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 'y'^^, ■^^*''*'C^)^^*',Vf --^jMr**! * -fiVW' fc- t^ ^"'■(J*- 
 
 / 
 
 22 
 
 City, and* the interests of the Rate-payers and inhabitants of there 
 have not been in any way prejudiced thereby. 
 
 ■^m 
 
 (Signed), 
 
 J, G. BOWES. 
 
 The Defendant, Jolin George Bowes, on the 24th day of November, 
 1853, appeared before m«, at my chambers, in the City of Toronto, and 
 signed the foregoing answer in my presence, and thereupon was 
 sworn before me that he had read the said answer, and knew the 
 contents thereof, and that the same was true, of his own kn^qj^ 
 ledge, except as m matters which are therein stated to b^ o^r 
 information and beUei; and as to those matters he believed^gt*. 
 
 true. 
 
 t-' 
 
 A. BUELL 
 
 ■y! 
 
 '**** 
 
i-i»«MeiMS«a,^«i>ai*y 
 
 
 V7f, 
 
 ..... V 2.3 
 
 DEPOSITIONS TAKEN VIVA VOCE JN COURT ON 
 12x11 SEPT. 1853, ON PART OF THE PLAINTIFFS. 
 
 # ■ 
 
 John George Bowes sworn— saith, I am Mayor of Toronto.— 
 This is the 3fd year of my MayoraUy. 
 
 ^ ■•■■■'■■ 
 
 1 know the Plaintiffs, Patterson, Lepper, Miller Sargeant and 
 
 ^Watson. Patterson and Lepper are electors: I believe Miller isan 
 
 elector ; also Sargeant. All the Plaintiffs are inhabitants of Toronto 
 
 and Rftte-payers, I believe, i don't think Watson resides in the 
 
 City, they have all been inhabitants and Rate-payers some 
 
 years except Watson, as to wttom I don't know. 
 
 J recollect the circumstance'^tlending thetS.kmg £i>6,000 Stock 
 in the Northern Railway Company by the City. The propt«ition 
 came through me, suggested by Mr. I^erczy, the President of the 
 Company. I made an offer on the subject, subject to the approba- 
 tion of the Coimcil. I made the proiwsition.and it was accept* d 
 liy Mr. Lawmond. I had only one conversation on the subject of 
 theproposition with Mr.Lawmond who wa^sone of ihe Contractors. 
 I Jiad a conversation also with Mr. Berczy befop communicating 
 the matter to the Council. I think Berczy wai^present when the 
 proposition was made, or before it was accepted. The conversa- 
 tion lasted only a few minutes. No Commuoication had taken 
 place previously on the subject with the Council. The City was 
 to give Debentures for the Stock— Debentures of the City, amount- 
 ing to £50,000, the same amount as the Stock. It was arranged 
 between me and Mr. Lawmond that he should take £50,000 
 Debentures for £50,000, Stock, and the Company should cancel 
 the agreement for the bonds and loan , for £25,000, and ^£35,00Q, 
 respectively. ':'_;.',..:' l'''-i. ■\_./\:'__:^ .:\_ .'.;_:;.;; 
 
 I did not know what tise the Contractors were to make of th^ 
 Debentqres. Lawmond was acting on behalf of all the Contractors. 
 They had previously made to me an offer to sell £24,000 Debet?.. 
 ttires."^There had been'a ^rant of JE6b,bop and £24.,OPO was the 
 amount IHen due. T he offer was t wo or three days after the by- 
 law passed. There was no proposifion witB^lLbem orT the subj<^ct 
 "previoi^iy to the letter containing the offer. There was talk about 
 it. No doiibt they spqke to me on the subject, but not on the sut)- 
 
 'i4 
 
 3k- I 
 
 • ? 
 
 
¥1 
 
 .V 
 
 r, »«)► 
 
 ^' 
 
 H 
 
 ^r 
 
 j<ct of buying the Debentures. I don't reooUect,.however, any such 
 conversatioi). 1 Imve no belief that they offered to sell me the 
 Debentures before receiving the letter. 1 believe I bad iioconver- , 
 /salion withytory &Co.BlHMil|uirchiising Del»entnre8 l»efore receiv- 
 ing the letter. I bclfeve there wasn conversation a day or tu^o be- 
 fore, in which they offered to 8<*ll the Debentures, the je24.,000. I 
 dmi't recolUci any other converaitioii lu'for** the letter in which 
 the offer to sell the Dfbeiitiires. I don't recollect whether the 
 letter was written at my suggestion or not. On receiving the 
 letter I hud a neaiiog t»f the Finance C«»minitlee called, and 
 urged to them the ex|»edreney of themselves purchasing these 
 Dtlientures, but they unanimously refused to do so. There is no 
 ttiiniite of that meeting, it wHss(»on af>»'r the letter was received. 
 Me>*.srs. Thompson, Hutchinson, Sheiird, myself and some others 
 were present at it. I did not shew thfui the letter. 1 statad to 
 them ihu; tl»e oflfer of the i:,24-.00O had been made to myself at 
 1 [If r cent, per annum discmmt. The City had not then funds 
 to lafte up the Dt boMtures. I SJtid to them they ought to get a 
 credit, biit did not suggest any in«'t hod o'f<doingS'», and they m«ide 
 no suggestion — Uould have iiulhing to do with the matter. 
 
 I don't think any agreement was made before the 29th 
 Jcme, 1852, as to whut amoiuit iiicush was to be pu it I to the Con- 
 tractors. They ((ffered them at 80 ceuts. upon the dollar to me on 
 £24,0U0. It is asked '• whether this offer was accepted." That 
 question is objected tp— Not gut. 
 
 Witness proceeds: 7— The offer was made to and accepted by me 
 to take £24,000 Debentures at 80 cents to the dollar. Not on my 
 own account. 1 accepted the offer eight or ten days after it was 
 received. No arrangement was made as to what the Contractors 
 should receive on the rest of the £50,000 Debentures, pnly 
 £10 000 of the £24,000 were issued. , This was atler ntyacccptanCe 
 ■of the offer. Th'' money was paid over to the Contractors for the 
 '^"ioCoOO Deljentures at the rate of 80 cents, to the dollar. No 
 similar arrangement was carrried mto effect as to the remainder of 
 the £24,000. The arrangement of SO cents, tothe dollar was the 
 arrangement clawed outthroughout the whole £.50,000 Debentures 
 <jf which £40,000 were issued after 29lh of July 1852, and the 
 £10,000 before. £50,000 Debentures were. issued for £50,000 
 
 ■■/:-,. .■^■. 
 

 * Stock. All that the Contractors received in money (or the 4)50,000 
 Debentures was £40,000. l^lid not buy the £50,000 Delwnlures 
 for myself. It was not unde^tood that the proposition in the letter 
 as to the £24,000 should ^ carried out as to the rest of the 
 £50,000. No subsequent arrangement, however, was made 
 between roe and the Contractors. £10,000 of the £24,000 was * 
 
 purchased by me at 80 cents to the dollar, and the rci»ainder of 
 the £50,000 DebenturfeirVere purchased at the same rate,,h(lt nd# 
 under any arrangement with me. I was interested in this 
 arrangement under which the £40,000 were purchased. I had < 
 
 _ thesame interest in the £40,000 as in the £10,000. There was not 
 '\ a profit rrtade to my knowledge by any body upon the transaction, 
 
 \»f £10,000. 1 think there was a profit t>f £5,000 mode on it. I 
 think not £9,000. I think as much as £8,000 was made, or there- 
 abouts. This entered into the business of the firm of Bowes & 
 Hall, of which 1 am a member. The share of the firm Was £4,000, 
 orhalf of the profit that was made. The other member of the 
 firm is John Hall. I am entitled to five-eights oC the profits of the 
 business, or thereabouts, as I believe. This sum has gone into the 
 1)usiness of the firm, like any other moneys of the firm. This was 
 a partnership transaction from the first. Hall expected to have* ' 
 
 the benefit from the first. 
 
 1 think the Debentures assigned,, were sent to the_ Contractors --^^i'^ 
 to be filled up. When completed they gave an order that they ^ 
 
 should be lodged i^n the Bank. They were signed by me betore 
 they were filled up, I think the Chamberlain signed them after- 
 wards. That is the practice. I believe all the Debentures were . 
 deposited in the Bank of Upper Canada. £2,500 weje kept by 
 the Chamberlain by the directio^tifte Contractors, but afterwards 
 they were siSd like the rest.^ome of the Delientures were 
 lodged in the Bank by the Chamberlain, by the direction of i' 
 Contractors. 1 don't know, or believe that they all were. I think . 
 these directions were given from time to lime. « 
 
 The £40,000 Debentures were bought at the same rate as the 
 £10,000, but not under the same arrangement. I cannot say : " . 
 when the second arrangement was made, under which the £40,000 
 were bought. I was not aware of it at the time, but sul'seguently 
 
 if 
 
 J 
 
i 
 
 ( 
 
 36 
 
 I was made aware of. I can't say whoso money it was with 
 which the Contractors Miere paid. . 
 
 Monday 13th SeptemherlSSa. 
 
 ■■■'■■■*■. -I y 
 
 Examimtum of Defendant Botoea reaumed.-^J think £8,000 was 
 
 thdexact profit made, ox very close to it. The Debentures did not 
 
 brin^ por.'' Drains wer e drawn on Glyn & Co. of Enftland^ for the 
 
 ii/noi>nt,or Weurly fliu lirnoiint necessai^ to pay the ConUagtsigJjr 
 
 the Debentures.""THe drafts were for 70 per cent ot the amount of 
 
 £50,000. This I laarn Mn the Cashier of the Bank of Upper 
 
 Canada. "t'''-. ■ 
 
 . 1^1^ drafts were cashed by the Bank df Upper Canada her» 
 and the money paid by the Bank to the 'Contractors. I believe the 
 Debentures were placed as a collateral security at the Bank by the 
 person who drew the drafts. I speak here of tho Debentures 
 issued under the Resohition of Council, of July 1852, and the By- 
 law of June 1852; not of the Debentures issued under the By-uf^ 
 law of October. There was a Letter of Credit from Glyn& Co- . 
 The. offer to purchase the Debentures >vas made by mo for a Jtliird 
 party, and that third party drew the draft on Glyn &po^ 
 
 The arrangement Originated in the Contractp«r|)rqposing to me 
 to purchase the Debentures; and I then made the offer to the 
 third porty, and his acceptance was communicated through the 
 Bank of Upper Gunada ; and I communicated th© acceptance to 
 th^ Contractors. I mentioned no name to them, but said that tho 
 Bank of Upper Canada would pay for the Debentures at 80 cents, 
 td the dollar. I took the Contractors to the Bank. I did not men- 
 tion to the Contractors the nameofany other person unless Bowes & 
 Hall. I mlormed them that the purchase was not tnade for myself. 
 At the same time Bo\>«9 & Hall were interested to the extent of one 
 half of the profit mgde by the transaction. I proposed to the third/ 
 party toenter Into the transactioni I told him what the Debentnres 
 "could be bought at, and added, that I thought by keeping them,, 
 some profit might be made of Ihem. I intended to advance funds 
 ofthe.fi'rm. I could not have raised beyohd£10,000but for the assist- 
 ance of the third party. J n consequence of the drafts being drawn, 
 I advanced no fundaof my own, or of the firnf. Thesecurity of the 
 
 firm was at first given to raisei£10,000,oralitllc more,but that was 
 
 ■.A 
 
 3\ 
 

 21 
 
 replaced by tho drafts^. I gave a lettoi of crodil to advance that 
 sum to the Bank, and that sura was raised upon my/letter of credit. 
 The Debentures were not deposited till afterwards. I l)elieve the 
 letter of credit was only to enable the Contractors to get the money 
 until the drafts should be drawn jn England, ^e d rafts were 
 drawn, I think, between the 21st and 31st July,lDnt I do not know 
 of fny own knowlege when they were drawn. I understood it was 
 Giyn & Co^s money that authorised the drafts, or rather the . 
 letter of credit sent over by Glyn and Co. / My belief is that 
 
 _^Iyn &> Co. had |)Iaced funds to the amount of the letter of credit 
 at the disposal of tKelKTr^Tparty of whom I nave ispoken^ 1 fake 
 
 ~ihis to be the nature of the leiter of credit. I never saw the 
 letter of credit. I suppose the Debentures were deposited in 
 the Bank as Collateral security to Glyn & Company. I dp not 
 know that Glyn & Com|)any had any profit on the transaction 
 beyond the usual per centage on the drafts. I do not know 
 that any jierson other than my firm and the third [nrty had any 
 share in the profits of the transaction. I jbelieve there was no 
 other. '^' 
 
 I did not make the proposal to tho third party for tho benefit of 
 the City, I had previously recommended to the Finance Com- 
 mittee not to allow the Debentures to issue,but to take them them* 
 selves, aa their legality had been questiotid, and I thou|^t that 
 Jsmjn^Ui(yii^ be injurious to the Cit^ ; and i; thought then, 
 that r had a right to purchase them, as 
 might. The Finance Committee refused 
 
 any private merchant 
 to adopt my suggestion. 
 
 I did not tell them^hoxy; iponey might be raised, 
 
 I had not spoken to the third party upon the matter until after I 
 Had received the letter about tho £24,6o(> Debentures, but I may 
 have spoken to him about raiiBing mmiey generally for the City, 
 and 1 believe I did. I am oonvinced that I had not spoken or 
 written to the third party about purchasing these Debentures. I 
 wrote to him very shortly After seeing the Finance Committee^ 
 perhaps th^day following./ 1 niailed the letter to him. I do not 
 recollect sending a letter by Mr. Cotton to him: I believe I did 
 not. I wrote several lexers on the subect to this person, and I 
 received one or two, or mo»c from him. f cnnnotsay how many. 
 
S8 
 
 
 ■, I . 
 
 |t..._._V-.. 
 
 biiiine8s transaction. I have been a merchant in largo butinew 
 for mttuy years. It is not tho habit of men of business to destroy 
 letters unless thoso marked private. Thooo so marked we do nut 
 Keep. I think I kept no copies or drafts of the letters I sent, but 
 t entered |H)rtiuns in a memorandum book. The drafts may have 
 remained for a day or two. I should say that I marked my letters 
 to the third porty private, and that the letters to me were so 
 marked, or I should not have destroyed (hem. Those I reueivott 
 may have remained on my desk for some time. I do not think I 
 preserved any for one month, but I cannot swear that I did not.-^ 
 It was on my private desk thatletton remained. No one butmy-^ 
 self wrote at it, except my {nrtner, when at home. I cannot 
 swear that some of the letters may not have been destroyed after 
 this suit was commenced. There was no desire expressed either 
 by myself or the third person^ that tho thing should be kept private. 
 I did not before give the explanation ^hich I now give, because a 
 persecution was got up against mo in the City, through news-^ 
 papers and otherwise, assailing me in rusi^ct of the transaction. 
 This persecution was after the corres|K)udenc(!, and was not the 
 cause of the letters lieing marked private. I wished the trans- 
 action to be kept private, just likf* any other biMiuess transaction. 
 An additional reason was, that a third {>arty was concerned as a 
 purchaser, whose consent that it should be otherwise than private 
 has noyiBen obtained or asked for. . 
 
 oyuei 
 
 I ha^^ot yet tound the memorandum book in which portions 
 of the letters were entered. I cannot recollect when I saw it last, 
 it was not filled up. Idid not rucoUect ittilLaflcr I had made my 
 first affidavit. When I recollected it I went to my Counsel, and 
 then I did not know but what I hud it. I searched for it after 
 seeing him. I had made some search before. * 
 
 |_ never communicated to the Finance Comniittee_or^ to the 
 Council,.. anything about the arrangement I had made with the 
 third party /or the purchase of the Debentures. I thought I was 
 under no obligation to do it. .« / * 
 
 . Coj[in$6l advised that U^ Debentures issued uoder the By-law 
 of June for the issning of jE6O,00d Debentures was not valid. The 
 <l itj(^ouricil thought they might legally exchange City Deben- 
 tures (br Stock. Before the passing of the By-law the opinion of 
 
 ■■:-\. 
 
mm 
 
 ^^r- 
 
 \ 
 
 90 
 
 iteU to 
 
 ha CoiinMl against it* legality ivaa oomniunieatea to the Oounoil. 
 The opinion of two Counsel, Connidl for the Contraotors, the other 
 /way, waa also before the Council. It was thought in the Cnunoil 
 that they could purchase Stock with City Debentures. I have 
 not seen the opinions in favor of the liy-luw. The Contraotora 
 were willing to take the Debentures notwithstanding the doubts as 
 to thoir validity. I never doubted their validity, and was willing to 
 purchase them. I think the third party was aware of the 
 adverse opinions, tt was mentioned in Council that, if tlie Deben- 
 Uires were illegal, an Act of Parliament might ho obtained to 
 legalise (hem. The Council petitioned for an Act, enabling them 
 to substitute other Debentures for them. I think a petition was 
 drafted aboat the 9th June. I think it was only before the Coimcil 
 once, a notice given and the petition adopted, probably at the 
 next meeting of Council. The draft of the Act was prepared by 
 the City S)licitor.. T wus in Quebec when it went down, and 
 8|iuke tosome members aboutit. . 
 
 A' proposition came from England, I^helieve to purchase the 
 Delientnr«8 issued under tho By-law of* October. I do not know 
 and never heard who purchased those Debentures. I know 
 nothing of theofler for the purchase uf the £100,000 of Delientures 
 till it came to me officially, and I communicated it to the Council. 
 I bclievo that Comnuinications psissed between the third party here 
 and the parties in England who uf][ered to purchase, before the 
 offer to purchase. I do not know that it was beforo the ofler to 
 purchase. I learned from the third party that £8,000 was the 
 amount of the profit made on the sale of the Debentures of which 
 I have spoken. I do not know it otherwijse 
 
 £100,000 of new Debentures were issued, £50,000 of which 
 went to redeem the £50,000 of old. Debentures issued, and' for 
 the other £50,000, the City got that amount of Cash. The new 
 Debentures were payable in England in Sterling iDQpey." The 
 ^d_0jis9t I think, were i^^^ aT"tKe Bank of Upper Canada 
 ^ere. The difference of exchange between England and here 
 varies somewliatT'' Usually from 9 07 11 per cent, usually 11 or 
 nearly that. t»^ 
 
 I was absent from Toronto in the early part of October to the 
 
 I ■ 
 
 F ^^i>; 
 
 f: 
 
• 
 
 I 
 
 * ' w 
 
 4 
 
 10th. I do not know why any of^ho old Dobontiiroi yf/^to issiiod 
 after the |«ning of the Hy-law of ()ctol)«r. "Ilie Oontraotdn 
 received only 60 per cent, on th^ dollar ii|ionthoee,ai well as upon 
 thoee previously issued. Tho Contractors would, no doubl, havq 
 received 80 cents, to tho doljarfrom tho Corporation, uppn'lhope 
 Debentures as well as from ai|y other quarter. 
 
 I suppose I knew of the passing of the Act as so^'P it ^^ 
 passed. I was at Quebec at tti^jime. It had pauoJtho t^^ 
 Houses, I think, before I lefl Quebec; and I think it was rny ini-\ 
 pression when I left that it had ; and when I was leaving Qifcbeo 
 the Governor was at the Ilortse giving liiiT assent to Bills. I_ 
 fwlioved, when I left, that the DiH hod r^eiVed, or would reooiiire 
 the royal assent that day. Thot was my.^olrrcssion. 
 
 111 writing to tho third party I may have saiu that tho Council 
 could get the £50,00o Debentures legalized, and that they Wer<) 
 pledged to the Cuutracturs to ^ got thoin loguliz(}d. PUpliov^ 
 nothing was said in the Coiuicil ifs to whether Ihcy should bd 
 legalized by Act of Parliament or Kow, •' " ^ 
 
 I ihhik, when I was uliuut going ro Quel»cc aliout Kailroaa 
 natters, it was suggested in Council (hat [ should endeavour to 
 got an Act legalizing the Debentures, and to enable us to cfTuct 
 the loan, which wo had asked (or ciQhteen months before. This 
 was some time before tho Petition was sent down. 1 cannot say 
 whether this was before oraftcr tho passing of tho By-law of June 
 1852i.' ■ 
 
 I do not recollect forming any opinion as to what Debenlnros 
 issued under tho Acf; would sell at, whether at par or not. I ma) 
 have sllid they wore worth par. I do not recollect when our pro- 
 portion of the profit made on the Debentures was received by our 
 firm. I think the 8 \m was i;4',0Q0, within a few shillings. I have 
 not my books here. I mean the books of Bowes &. ilall.. That 
 sum is regularly entered in the books ^f Bowes &, Hall. Our firm 
 has no papers relating to the transaction except the one produced. 
 
 Explanatory $tatemmt.—The Only nrrangfiment made by m? 
 with the Contractors Avas that Ihey should take i;5o,p0O Dcben- 
 f^ res for dC50,0po Stock, 4»<I cancel the tigrecinrnt for llio gift ol. 
 
 .,\ 
 
 . N 
 
 

 me 
 
 1-1 
 
 ben- 
 
 
 JC2r»/K)0 nml llio Ivinn of L'3!S,ooo I conwitlotod tlial tm lti«»o form* 
 i wus gcttiiiR ll>« Ktuck lU 1 p<'rcfiit. intlte PoiiiiJ. loonsidered 
 Ihnt it wnn tli« niofit ittlvHiitiigiwuiN Imrgiiiii (liiitcMilU Iw mat\e fur (ho 
 City. Nut a wunl waHVuid liotwreii me ondlhe Cuulruoluriiubuiit 
 the vphie «»r Iho Slock, 
 
 Ur/tlanatirrj/ Kxnminuti(m.—Tht City woi under ohligntion tomvkn 
 H gift totho Uailroiid of i'2r),000. Afterwnrds they came unJet 
 nil oiigii;,'«mt!rit lo U>«in to \\\vn\ .t'3S,<)00, Thi^ae two minis, 
 nmonntinj? to .€Go,(fOO were tho suhjoct ol a ny-luw'Haiwpd on tho 
 28lh Juno IH52. Tho U'KuU.ty ot this liy-lnw was douhtod, ojn U>e 
 j,'r»)Uiul of itu not providing a Hliiking fund i>r pnyinent of the 
 J^ioimt, Tho Jly-Iaw was not published. It wiih HiippoHtti tliut tlio 
 Itiiilroiid Act nuthoiiHfd such u IJy-hiWi 'rhij. Culftnwtors were 
 nnxioUH to recoivo tUa l)cl)cnturc» for tho JCOO.OOO, notwiihstnnding 
 theao doubts, to incOt their pcHHing doinands. At tho tiino thJH lly-hiw 
 piTsascd, or id'tcrwurdH, thcro wrw no arrtfngoincnt between mo and tlio 
 Contructors whieh would htivo preclude thcni from disponing of tho 
 Debentures in miy Way they plwtfcd. 8t>on after the IJy-luw piuMud 
 the Debentures bocuino the property of the Contriietors as tho work 
 
 ,\ proceeded, an far as tho City wm concerned. Thoy could compel tho 
 (Uity to issue tho otheit* on compUanco with the conditions: thoy 
 could not iii,g«)od faith havo Imjcii witldield from them. At thotimo 
 thd^Jetter was written to mo by the Contraftorfl, containing tho otfcr 
 of tho £24,000, there was no arrangement between us for the convor- 
 hion of tho gift and loan into Stock. That was an tiftcr-thoughty 
 arising ft-om tho dilliculty about tlio security : and the proposition for 
 
 ■ it omauatbd from the President of tho Company. The exchange was 
 a loss to tho Contractors. Thoy lost tho gift of £25,000, and a foan 
 of £35,000, and gave tho City £50,000 ;Stock instoad. Tho City 
 gained proportionably. 
 
 Tho Debentures Aycrc absohitely purchascil from tho ControCTors 
 There was no arrangement with them at any timo for their redemp- 
 tion. Tho arrangement for tho purchase of them was subsequent ta 
 the Finance Committee rvfusing to have anything to do with them 
 From that timol considcrcyl that it wjis oj»en to any private person to 
 buy them. \ 
 
 Tho l>y-law of tlie 10(h OctOl)t'r was passed, I tinnk, at the sug- 
 Wo have hot since endeavoured to fcU Dcbeuturos payable in Eiiglaud. 
 
 
^i: 
 
 ) •■■ 
 
 t 
 
 4:\: 
 
 ■i 
 
 I f 
 
 m. 
 
 #. 
 
 k 
 
 jfrtitlon of tlio Sollcltnr. It wan nuppowwl tlml tlic Rmntulfon win 
 hiniijng on tlio City. Tlio |>o iHUilllirow ImuchI for XdO.OoC umlflr tlio 
 Ity-law notwitliHtAiKlitig tlio coiiv<<nii«Hi into Mtmlc. l*lio (Jontrndoni 
 w«r(irontltk«<l t«> roct'lvo tlicm iw tho work progromod, Tlicy wir« 
 uwuoil to tiiu Contractors ai thoy tranifcrrod tlio Stock. / 
 
 Provlonnly I hwl endonvourod to «»ff«ct a loan for tlio City, at j>ar 
 In Riiglund, but n«v«r Hiicoewlwl. I think now, tlio City Dolwnturw 
 would not fetch par. Tho City could have otTered no nocurity which 
 —^ would have indulged a titird pcriton to «nt«r into an agroomont whoro-l 
 by par could have Injen obtained for tho I)el)onturea. 
 
 Aa to tho momorandoin book that wan lost, I mode CTcry soarcb 
 for it without aueceiui. 
 
 Thoro waa never any coAtract, arrrtngemonl or agroomentwhatover 
 botwocn ino niid tho ContnictorH, that tho trHnHuctioii rolntin^ to thO 
 DebonturcH nhoutd bo anything but (i Ixma fide and alwoluto nalo< 
 
 Rt-Kxamined. — The Conditiona I havo inontionod related to tho 
 CertificateH of tho Engineer an to tlio progro«i of the work. There 
 waa also a Condition that the ongagoiiicnt for tho gift and loan should 
 bo ruleased. Fornml releases were afterwards cxecutctTby tho Com- 
 pany. I don^t know when this was done. I may havo signed tho 
 DobenturoH before this was xlono, but I don't know. They are nover 
 signed without an Order in (youncil, and I always know that that is 
 right. 
 
 I don*t suppose that there would havo l)een any objection on tlie 
 
 ^ part of the Contractors to take the JG40,000 from tho City lis well fts 
 
 from mo if tho C'ty would have Uone it. In fact,* X^xuV they would 
 
 rather have done so. ^ • '^ 
 
 There was no arrangement with iho Contractors further Uian the 
 
 letter binds them. 
 
 • . . - , ■••; ■ .■ '. .. : • -^ ;■■;. •■ . ; ■ ■; ■ ■■ : \'- . ,: /• ' ■■ 
 
 ; 1 should think it would have been possible to sell the Stock at 60 
 
 r jper cent, discount at the date of iJlie. Resolution. The gift of £26,000 
 
 ^ belonged to tlie Contractor^ us I undcrstooil. They sufferotl tho loss. 
 
 It was made over to tliem by the Company. 
 
 I aiu speaking of Debenture* i>ayjvble hero as being at a discount. 
 
 H 
 
 ' '■ 
 
 I 
 
"^gp"^^^ ■^"♦vi^iwn' V' 
 
 
 8$ 
 
 ■'1- 
 
 W« havfl not gince endrnvorr<l tq w^ll Debenture* imysWe in Kn|- 
 land. City l>olH!iit»ire» luivo Uhmi ulalml in tl»«" <}|«?Ik) " N«wi«i»niM«r to 
 liKvcbetni <iu<)t<>«| ih Ktiglnnd nt 3 {tor c«ot. Vraiuiuni. I tiuii't know 
 whflth«r it i« »o, ' 
 
 J'tr C'w.— 11n«rfl wiw no frtmh nrrnngfltnont :|iHil«i with tlie Con 
 tmct«^ii» nfter tlio Icttor oflTBring tli« JE'24,000. Th« whi)I« trnnsattion 
 I>n)c«««l<:<l on tl»« Iwwin of that hater. Tho Oonlrnj;U)rn w«r« nyt Iwmnd 
 beyond tho JE'24,000. Th«y wu|d hrtvfl »oUl tho l)«l>onturc« to any 
 othii^rty. Bofore'tho lonn /of £10(),(K)0 wiim tukon iip, thi Dvbea- 
 tur«'s liftd pnwoil «»ut of my iitin^H. I wiw only tho owner in part. 
 Tho rcht wttM held l)y tho oih.T |>i«rty. I did iiyt int«'rforo with tho 
 Debonturen aftor tho Letter/ of l/fodit of (iiyn, llalitiix & Co, wu« 
 roceivod. I did not abandoji Ull inlenjat in them, 
 
 By Mr. Vm]^(fhnfl.--i-T]\ei roirintndier of tlio I MiAntnriM Beyond 
 thoXlO,0()0 wore lodged in tho liank on tho tu-lt undflntJMidihg 
 that tho Contrnt'torjiiirou|ld rof.>ivotho SOContM to tho Dollar, aceord- 
 
 iiig to the origiuni bfle|r in tho letter. . . - , ' 
 
 (Signed) ' J. 0. BOWES. 
 
 Thomai (fibba Itiilouty ealh'd bij Plaintiffs. — I nm Ca«hicr of the 
 Bank of Upper Canada, and have betn ho for a niiukber of years. 
 
 I know «omo of the Plnititiflk, and have heard i)f tho rest of them, 
 I know Mr. Bowes, I know Mr. Cartewright and Mr. Lawmond- 
 
 Members of tho Firm of Story «k Company. / ■ -■< ; 
 
 ..•..., ■« . • ■ • . ■ .■ ■ ■, .f ' 
 
 1 was applied to last year, L think in the latter end of June, in 
 regard to the negotiation for certain City Debentures on behalf of tUfti 
 Contractors. I think tho tirst I heard 6f it was a Letter from Mr, 
 Ilincks to myself. No Debcnturos had then been ofTored to tlio Bank* 
 l*dO not Unow whether any had iHsuod at that tljne. .The purport of 
 die letter was that Messni. Story tfe Company had engaged to sell 
 £50,000 of City of Toronto DeUifturcs at 20 per cent, discount, and 
 hid wi.slied that tlio Bank would assist him in the negotiation — that 
 Olyn & Co. had desired to havo tho Debentures at tho Bank »t their 
 security — that Mr. Hiticks would bo authorized to draw^upon GlynjA 
 Co., ujwn Bank Certificates being sent of the Debentures being <iepo«. 
 ted for Something less thaw 80 per cent.|of the amount of the Debed- 
 turcs ; and Mr. Uincks wished tho Bank to advance tho money to the 
 
 
 •Ji. 
 
 '.' 'I 
 
 
 ■■■'«. >J 
 
 
 « 
 
 
 m 
 
 
 •^ 
 
84 
 
 ¥ 
 
 i '.I 
 
 
 ! • 
 
 . :.VV- 
 
 Contractors as Debentures should be deposited from time to time id 
 the Bank-^hat Glyn Sb Co. said they would give Mr. Hmcks ii 
 credit forthe amount, upon the Debentures being dep<»ited. Mr* 
 Hincks inclosed to roe a letter from Glyn & Co., authorizing Mr, 
 Hincks to draw for £l 5,000 or JB20,000 Sterling, tlie Bank holding 
 ^ City Debeiitures. Mk CartWrtg^ranJ Mr. Bowes came to ihe 
 Bank shortly afterwards and Said that an arrangement was made for 
 tlie sale of £50,000 of Debentures at 20 per cent, discount, and asked 
 if they could receive 80 per cent, upon the Debentures as they should 
 he deposited ; I answered in the affirmative. They said that the 
 Debentures could be issued frem time to tame by the Chamberlain 
 ^nd lodged to /tiieir account. The Debentures were not then ready, 
 and a sum was advanced to them upon Mr. Bowes, security of £3,000, 
 or £4,000, or /it may have been £8,000. This was temporary until the 
 Debentures should be prepared. Th is interview was after my receiv- 
 inff Mr, lliniiks' letter. I think the temporary advance was made 
 upon the occ^ion of Mr. Bowes and Mr. Cartwright first coming to 
 the Bank as I have mentioned^ Tbe first Debentures were lodged at 
 the Bank on i the 22nd July. The amount was .£l6,000. I think 
 the temporary advance was previous to that. 1 think Certificates of 
 the amount ;!ftf.D«tienture8 deposited were sent sEwtly before the first 
 JDraft of Mr. jBincks on Oly n, Halifax & Co. I answered Mr. Hincks' 
 letter acceecUng to ^is proposition. The Debentures were placed in 
 the Bank fw)m time to time by the City Chamberlain. They werja 
 issued slowly, and Cartwright, or his Agent Dr. Beatty, were in the 
 habit of coining to the Bank to see if they were deposited. The 
 money as advanced wa(S carried direct to the credit of Story& Company. 
 We advanc^ 80 per cent, as the Debentures were deposited. The 
 last £l'0,000 sterling was negotiated by .Mr. SHhcks with Glyn M 
 Company in England. Theother payments were made on Mr. Hincks' 
 DrafU on/Glyn ic Company. |io other pajty thuiMr*. Hincks drew 
 any Drafts on Glyn ds Coinpahy in this transaction. I believe the 
 letter fro^ Mr. Hincks and the enclosure from Glyn & Company were 
 all that jl received. I considered that |hey were final and 'perfected 
 the tradtaction. 1 took no other part i^ the matter than what I have 
 stated, i^or did the Bank. Ijlid hot hear till some timeafterwards 
 ^4hj»tJU)y:..qyj%tion had been r»sed as to the le^lity oHhe Debentures, 
 ^t jaftfiti' we heard (>f it we went on cashing the Debentures, as we 
 heard that the defects couldi be reni^ied. The question was not 
 
 4 
 
>ugbt before the Board of Director». Mr. Iliiicks did not coinniu< 
 ite to tno that the Debentures had beeiT^oslioned.' Nplbing waa 
 "by CBeBaSnrto remove tETe alleged defect : they relied on Glyn 
 L/O.. £82,000 of City Debentures in sterling money were issued 
 and\placed in the Bank by the Chamberlain, and thereupon the old 
 £501000 of Debentures were given up to the ChambeHaiu, and the 
 difference, JC49,'760 was placed to the credit of the City. The whole 
 £82,000 sterling of Debentures were sent by the Bank to Glyn 4; 
 Company, with inatructio ns to hand jthem to Mast ernia a japJBLhii 
 jmyina the ampuntj which was to be placed-to the credit oOhe 
 £4O,d0|O sterling, equal to the above sum of £49^flO^€UTfen^ 
 
 The £60,0'^0 Debentures first deposited we coiisidered to be tlie 
 property\of Glyn & Compnny. I considered that ,they and Mr. 
 Ilincks were interested in tliem. I thought them the property of 
 Mr. UincI^ subject to tlie amount advanced by Glyn A Company. 
 I never uhderatootl whether Mr. Hincks had ' any partner in the 
 transaction.A Mr. Bowes did not explain that he had any share 
 in the^ transaction, nor did Mr. Hincks. I know nothing of any 
 arrangement between Mr. Hincks and Mr. Bowes. ,«I^ do not know 
 that Mr. Bowes informe<l me that the defects in the Debentures could 
 . be remedied, or that Mr. Hincks did^ The Bank proposed to the 
 City to buy the £83,000 Debentures. Wedid soat the desire of 
 Mr. Hincks, wlio instructed ias to send them to Glyn to be handed to 
 Masterman, oh payment of £41,000 sterling. I did not know what 
 the Debentures would sell for in England, whether at par or not. I 
 knew nothing of how* the Debentures were negotiated in England. 
 The Debentures were sent to England, and by return of mioil Glyn Af 
 Company advised us of having received for us from Masterman the 
 sum they were to receive, £4lv000 sterling, The difference between 
 the £40,000 advanced by us to Story Sc Company, and the sum 
 brought by the second set of Debentures was not paid by us to any 
 one^ '■•.■;'■'■ ■-■:■,.■ ■ 
 
 
 i'd 
 
 I do not know how that was arranged in England. Q\yn & Com* 
 pany got £82,000 sterling of Debentures and paid, us £41,000. 
 What became of the difference I do not know, Debentures were not 
 issued for quite the full amount of £100,000. Mr. Hincks in his letter 
 jaidhehajdtjatrriOigcd t^^^^^ the^ebentures in England. HedidnotsRy 
 at \vh;it rato. Exchange for sonic months past has been sold at eleven. 
 
 /■ 
 
 ^l 
 
It ^as seldom been less. The City has to pajr certain charges lO 
 London on the payment of the interest on the Delienturcs which they 
 would not have to pay if the interest were payable here. The Bank 
 sells Exchange to the City as to individuals, and they should purchase 
 their Bills here in time to remit to England when the interest falls 
 
 \due.. ■ .■-'.'• , *• '■..■■ #V, - ■ " 
 
 -^f-' • ■■ ■- - ■ ■■ ■ ■ ■ -■ V- •■• ■ ■ . .- 
 
 V Cro»8-Examined. — I do not think the City could have negotiated 
 these Debentures at par either in London or here. It is difficult for 
 ft Corporation like this to get money in London, unless introduced by 
 ; some well known name. I have always thought that Story's loss on 
 the £50,000 first Debentures assisted the City in selling the remain- 
 ing; JGSO.OOO at par. The communications with Mr. Bowes were not 
 in his olBBcial capacity but as an individual and a member of the firm 
 of Bowes & flail. The letter securing the temporary advance of 
 £7^000 or £8,000 was signed by Bowe^ & Hall, I think. 
 
 (Signed) 
 
 THOMAS G. RIDOUT. 
 
 i)., 
 
 ■ li 
 
 \ r: 
 
 Depositums taken viva voce in open Court this Sixteenth day of 
 
 J^ecember, A.D. 1853, m a certain cause pending in the said^ 
 
 Court of Chancery, wherein David Patcrson and others are 
 
 ..Plain^fs, and John 0. Bowei and the City of Toronto are 
 
 DefeMants.^^ ;- 
 
 TaoMAS OiBB's RiBOUT, sworn for the Plaintiffs, saith : 
 
 Treoeived letters from Mr. Hincks relating to the matters in question 
 in thidcaiue {Ifr. Gaynne objects to the production of these Letters as 
 not evidence ftgainst Mr. j^lgvoesy and they are produced subject to thi» 
 ofy*«j<tott]— the papeit^mwk^T^ contains a true copy of . levery 
 thing in those letters at all matenalr to the matters in question in this 
 suit ; (this copy is admitted by the opposite side as sufficient evidence) 
 the first lett^^ated 5th July, 1852, is the first communication I 
 received from aR. Hincks on the subject ; the date is a true date. '^I 
 have (jompated the paper marked M. with the originals. I do not 
 remember making any proposal to the City as early as April, 1852, 
 fcspecting the negotiation of Debentures. The Bank, I do toot think, 
 
 J 
 
in tiic winter of 1861 and 1862 nindte any inquiries respecting the 
 negotiation of Debentures in Euglund. I did not think it worth 
 while, as I thought it could not bo done unless the Bank guaranteed 
 theiii. . The Mayor wrote a Icttcp- in the fall of 1861 to the Bank to 
 enquire if they could negotiate Debentures. I do;i't think, any answex' 
 was returned to this letter ; the letter was written as Mayof» I don't 
 recollect any proposal made by mo on tlio subject in tlie summer of 
 1852 to the City. Iwjks aware that Provincial Bonds were at a large 
 premium; 'at this time Gity Bonds could not have'been negotiated at 
 par in England. I don't recollect informing tlio Gity that they could ; 
 in fact they were negotiated afterwards. I did not inquire,. I think, 
 wh§B thoy could be negotiated or not. I cannot "account for th 
 Debentures going off so well in London as they did. I don't thin 
 they would hav% sold for less had they been sold on behalf of the Git^ 
 I think Mr. IImjiks'Jnflueij*cJn tlie nionc^ 
 j^ienV off venT the letter of 5th of July from Mr. 
 
 ifiucksi I agiredLtiLiJjfvke the requiretl advance. I had not seen 
 the -letter for pome tim¥wheu I said t did not know Mr. Bowes was 
 interested. Mr. Bowes calnie to the Bank soon after I received the 
 letter of 5th July, with Storey & Company, but he did not appear 
 throu<rhout to have any personal interest in the matter: he came 2 
 
 ^or 3 times. I don't remember Mr. Jiowes alluding to Mr. Hincks on 
 ^lis occasion, bnt suppose he must. I don't think I produced tbp 
 ■ lottdr of 5th July? 1 have no doubt I mentioned it to himj I spon 
 forgot that Mr. Bowes liad any intetost in the matter, but knew it 
 then. Mr. Bowes had no reason then to cxpcet.any other negotiation 
 of the Debentures but that proposed by Mr. Hincks. He must have 
 called at the Bank on tliis biisineiis,.jvnd must have inquired about it; 
 he 'told me Storey «fc CompUny were the parties, who held the Deben- 
 tures. The Interview had reference to the business mentioned in the 
 letter : it was a few days afterwards Uuit Mr. Bowes gave the guaran- 
 tee I have already mentiorted in my former evidence. Mr. Bowes 
 .did not, 1 think, call, during the summer of 1852 on this business ; 
 he called 2 or 3 times. I never thought ^uch of Mr. Bowes in the 
 matVer, he did not appear to have any interest in it. Mr. Bowes 
 never spoke to me on the . business as Mayor of the City ; I always 
 
 ^saw the Chatnberlain. At the two or three interviews I havei men- 
 tioned, iie, Bowesj came, I Ahink to get small advances made to Storey 
 jfe Company: ho did aslfc them as a favor to himself. He seemed 
 
 '4 
 
 V'^ 
 
 \i 
 
 'M- 
 
 u 
 
 - } 
 
il 
 
 M^f 
 
 A 
 
 anxious tLnt Storey <k Company should* get the money, although- the 
 Debentures hud not issued. He never told me ho had any interest 
 in the matter, or gave me to understand that he had from his man- 
 ner. EarTjr in the Spring of 1862 Mr. Bowes carne^tojflie Bank and 
 said he coj^id buy BeBontures in the inark^ ek io Wr cent, discount, 
 jand wanted to know iT the fiMt'wouIdlend'him^*^^^ 
 PQ8e». ivhich thej^'^reFuserf^ 1 had no pHvate'cOniTerence with Mr 
 Bowes. I cannot teir whether I thought him then, acting as Mayor 
 or^iot I was in doubt aboutit Mr. Bowes asked for the advance 
 for Story & Co. I suppose because the' Debentures ^vere-not issued. 
 The letters froiri which I have made extracts in paper M are the only 
 letters Treceiv^ from Mr. Hincks I believe, on this business, except 
 the letter aboutvmuking the offerto the City to purchase the £100,000 • 
 Debentures! The letter of the 22nd October relates tq the £100,000 
 I^ebentures. The Gitv'lilfa transacted itsbiisiaess with the Bank of 
 Tlpper'Canada for some years ; the Bank has had jjlso jtjie Govern, 
 naent account for some years. The j^aper /m^ked NWacor/ect. 
 statement q( the manner in which ^e moneys* were advanced to, or 
 -placed to the credit of Story <fe Co. and thet;mesthe Debentures were 
 deposited in the Bank. , ♦ » 
 
 CrosihEmmined. — ^There was a guarantee from Bowes & Hall 
 given by*\IK Bowes for. £8,000 to raise the first money for Storey & 
 Go; I considered Mr. Bowes then acting in his private capacity.— 
 Mr." Bowes called at tlie Bank .to manage this matter at the^times I, 
 have mentioned, i knew the Contractors claimed the DeblntureJB, 
 they said the Chamberlain.ypiild.lodge Che Debentures on the^' 
 account from time to time in the! Bank ; i4 was publicly known that they 
 claimed the Oebentures. X understood they plainied th^ Debenturea 
 and were selling therii. I suppose the applrcation in 1851 to me, was 
 to know whether the DebentuiW could be negotiated at par; I thought 
 .not : without, the. Bank's guai-ante© they could not have been soldat alt 
 probably ,ilithout some person introducing them: The City did not wish 
 to sell the Debentures in 1851 at 2p per cent^discounL TTiat was^ th^ 
 current price at the time, ai also in ISSiZ. The Debentures .ireye 
 lodged slowly, and the Contractore- complained of it. The letter .v 
 
 dated -the 6th 'of July was in fact written and received in AJugust. v^' 
 
 7 • ■ . - ' ■ . / ,' ■ .■ .• ' ' - » . , 
 
 /*<yg<;Mr.>-:rThe Bank has bought and solft City Debentnres many 
 
 ■w' 
 
 \. **■>«•>.,., 
 
 I ■:■ 
 
 "U. 
 
 . ■ ■ '''i ■ * ■ 
 
 
yMra. They Lave tftried in price, sometimes more, sometimes less 
 thjin 20 per cent discount; that was the market price in 1862. An 
 ordinary iwrson taking them to the London Waikct could not have 
 sold (hem at all. They must have been introduced . by some person 
 of influence* I carried on the transaction on the foot of the letter 
 dated the 6th July, biit subsequent letters enlarged the amount. 
 
 (Signed) 
 
 THOS. G. RTDOtT. 
 
 J 
 
 ■■'■ ♦ 
 
 John O, Howes xtporn for the Plaintifn, saith — I think the Con- 
 tractors spoke t») ino abinit the purchase of Debentures more-than 
 two or three days before the date of the letter written by tlieni to me, 
 I dbn't think I hai( any conversation about purcliasing them myself at 
 all. Tlicy S{>f)ko to me perhaps two or three months before the date 
 of the letter about selling the Debentures, but not to myself, or I..cai\- 
 not tell whether to myself or not. 1 made no ai-rangement with them 
 [or purchasing Debentures from them Until after I received the letter • 
 In question. I mean thejetter dated the 30th June. I sent, I tliink^ 
 a copy of thi« letter to Mr. Hincks a day o^ two sifter I received it. I 
 siippose-I made aproposal to him to join me in purchasing them at the 
 "same time. ,i,Jcannot say whether this wm the first time I mentioned 
 the matter to JAr. Hincks. J was at Quebec and may have spoken 
 to him oti the subject befofe. It must have been in the summer* It 
 mayhavebeena month, or two before I received the letter. I don't 
 know what Mr. Hincks refers to in his letter of the 6th July, unless to 
 a conversation I had previously with him— there ^as no arrangement or- 
 understanding. There may have been a conversation between us on^ 
 the subject of purchasing Debentures previous to my receipt of the 
 letter of the 30th Junet I am not sure however that there was any 
 such cpmmuiucalioQ.^ 1 doubt it, but still it is likely there waff 
 one*| I am not awar^that Mr. Hincks was in communication 
 ' withtauy body else as to the purchase of Debentures. I donU know 
 whiyt-led Mr. Hincks tosuppo^ that Debentures would not be issued, 
 so soon, except, perhaps, some previous conversation with me. I 
 doii?t recollect receiving the letter referred to in Ihe letter frpmt' 
 Mr, pincks of jSth July. I donU recollect getting a letter from bun 
 d(^|ring me to put off paying the Contractors, till next mail. I may 
 have received such a' leltefi I have no belief tllx>ut it. I think; 
 not. Lt hink I h ad a commHOicatio n w ijji .Mfn Cotton before 
 
 I 
 
 iaW 
 
 -<n 
 
 1 
 
 
 }t* 
 
 'S. 
 
 ^m 
 
rtt'j^t^' 
 
 "i ■ 
 
 receiving tlio Ifettor <ff flOthJunn; it'was-oi^lyjiconvorrtation about ther 
 City purcliasing tlio D<>bent.ures. He was notn m«i>bep-<>f the Cor- 
 poration. 'Iliad no conversations with Iiiiu hbout my pnroha»ing 
 Debentures, but had about Mr. Hincks puFchasing. I have no idea 
 when they occurred. I have no rccoiiection of a conversation with " 
 Mr. Cotton about Mr. Hincks purchasing for tlie jofnt benefit of him- 
 self and mo : there may have been. There was a conversation with ' 
 Mr. Cotton, but Jr cannot say whetlier before or after the receipt of tho 
 letter. I ha\'e no belief of it. I am sure I had no conversation with 
 Mr. Cotton at any tinie about any purchase in which he w^ t9 bo 
 interested that I know or believe. I liever knew him -iji the Cransac- 
 tion. I donlt know, and have no belief, whether Mr.'6Jotton was' , 
 aw.are of 'the purchase by myself and Mr. Hincks. I have no idea 
 what the allusion to Mr. Cotton in the letter of 0th August from Mr. 
 Hincks refers to. I have fo^nd ^lo letters or copies orietters from Mr. 
 Hincks since I was jcxamined./l have not found 'the niemOrsjndum 
 book ref(&rred to in my evidence. I think it must have |^en tjfkenout 
 of, my counting-hou^. I don't think JMr. Cotton ev«r wrote "to me 
 ■about these matters. I don't recollect writing to him about any 
 Debentures ; 'I don't beHevq I ever did, 1 never spoke to tho Com- 
 pany '^rtijie Contractors about the j)urchas»*''of any other Debentures" 
 1 don't recollect when I first formed the intention to jumJiase th'e 
 Debentures. I don't think I formed any infbntion to buy the Debea- 
 tures, which were to be issued to the Contractors or Company before 
 the receipt of the ]ptter of 30"th June. I am not sure whether it was 
 befiire or after the rocgipt of that letter that 1 laid the matter beforo 
 the Finance Committee, probably about and subsequently to the time 
 of receiving the letter. And before \ laid t^ niatter before the Fi- 
 nanee Committee, I formed no intention oX purchasing the Deben- 
 tures myself. 1 mean the olfer that was made to me^of the E^ben- 
 tmres at 20 per cent, discount. I >vas ai, one'tyne a Director of thia 
 Northern Railway. 1 don't recollect the time ; probably in the begin- 
 jning of 1861', not I think in 1852. Mr. Armstrong succeeded me. It 
 is probabl*!, and I have no doubt I expressed the opinion mentioned 
 at page 44 of the printed Report ref«i-j;ed to by \xiQ in the schedule to 
 my a^davit made on production of IJooks and, pa|>e»8 ; that was m^^ 
 <3tPJnion then and still is. IdKlnot know wliy City Debentures shoul* 
 notfetch as much as Provincial Debentuaes if properly negotiated. I 
 
^ , ■ \ ■ ^i %: ;■ ■ •'. ■■■;.■■■•••■■■■; 
 
 tJiink'tlicy ought I ifhJerstood tho Debentures couiil not bo tiftflfo-- 
 tiated ¥ithou* the guarantee of the Bank of Upper Cnnaibi, to whom 
 we bad applied' for a loan, I consideroJ tlie proper way of negotiating 
 t>eben,ture» was throudWie J3iink. Idid volunteer to write to capi- 
 talists in England on thelsubject. Idid write to Mr. l)unn, enquiritig 
 what Debentures would briug in England ; his answer was unsatis- 
 factory. I wrote to no English capitalist oh the subject, and to no 
 other person than Mr. Dunn as to the negotiation of City Debentftres. 
 1 wrote to Mr. Wilson of Quebec on the subject about tlie same time 5 
 hi^ answer was similar to Mr. Duim'a :— that the Debentures had'nor 
 
 been introduced into the EugliJi market, but that hew:w about to 
 dpep an agency. I wrote to Mr. Dunn in my capacity as. Mayor I | 
 think. I have no/lraft or copy of either of these letters: I keep no 
 copies of letters excejit of our own 'business letters. Idon'tthinkl 
 have got Mr. Dunn's answer ; I don't know what is become of it; I 
 looked for it sorao time ago, •! have not got Mr. Wilson's letter. '1 
 think it was destroyed like other letters. We keep pur business letters. 
 Idid not bring either of these letters before the Coiincil jior the 
 Fitiatice Committee. Mr. Dij^nn was for many years Receiver-General 
 of Upper Canada and Canada. . He Avas residing in England when 1 
 w^te to hiiH. Mr. Dunn, I believe, offered to negotiate the Deben^ ; 
 
 ^tures, but his whole letter was so -unsatisfactory that I didoot.lay it 
 before the Finance -Committee. I Alink he said to the effe«^ that the 
 Debentures were notknown in England, and Me doubted whetherthey 
 <50uld besoW. I don't believe that any City Debentures had then 
 been sold in England. I^Jkm't tliink my letter to M?. Dunn related to . 
 the Debentures Hi qnestion, but to^ Debentures generally. I got no 
 other information from Mr. Dunn that I reooUect. WhenldeterriJ 
 mined to buy the Debentures, I don't know why I applied to Mr« : 
 Hinuks rather than any other friend. Thad oUier friends Who cbnld 
 have assisted nae. If' I had applied to English capitalists, and the - 
 Debentures had been properly introduced, they, would havse sold aa 
 fevourably I' think. I had nocorrespondencewiUi English capitalists, 
 and I know of no one who could have disposed of Uie Debentures so 
 well as Mr. Hincks. X believe Mr. Hincks to be well known in Eng- 
 land| and has l>een for several years. At the time the-jDebentuires 
 
 ^were purchased we jjjere uncertain whether there avouUI be a profit^or 
 low fiu^hc ttnnsnction, althouj r h wo oxpcetcd a p r ofit, and at th4 mk 
 it would not have bcen^lone^)y the City. I don't kno>^ whether Mr. ' 
 
 1 
 
 1 1 1 n 
 
 
 m 
 
;-«fc ,:. 
 
 \ 
 
 \ 
 
 -J: 
 
 .1 ■ 
 
 • ■ ■■. 
 
 42 ■ ; 
 
 HinclcH would Imvo ncgotiatod tlio Dol)€iiturt'8 for tlio City for tlio 
 Rama rcnuincnition. I never mkod him to do so, or to negotiate any 
 DebentureH for tho City. 1 liavo no doubt tlioro was no pri<»r publi- 
 cation of the By-lnw of 28th Juno, 1852. I think 8ome objection 
 ' WHS made to it nM Hlcgnl ; two opinions wore tnkon on it • I received 
 no security for tho ndvnn(os/»r.£H,000 to Story A; Company, for 
 which my firm jjHvo a gunrimtooi There was no deposit of Deben- 
 tures whatevrr on the occasion: .ind T had no security what-- 
 0ver. 'J'he Debentures issued under iho Hy luw for the issue 
 ofthe iJrOO,000 weru imyubfu in lAXuhuf. I cunnof tell why, 
 eXce|it that Mr. Ki I uit hny > have moutioncd it in his let- 
 ter. I rofollt'ct no other rolisoii. The i)i(»pusiti(in in his letter 
 * was submitted to tho Finance Cunimittteeund approved oy 
 Ihein. I was no party to the arrangement except as a mcinber of 
 the Council, It is l)etter fcir the City that Del>entures should bo 
 payable here in Currency, than in Kns:Iand in Sterling money.— 
 The understandijig was, that the £50,t)uO Debentures issued to the 
 Contractors were to bo legalized. They couKl not be legalized 
 without providing ii sinking fund. This was wbAf we wished fo 
 avoid. I wasat Quebec, and understood, but not oHiciaHy, thatthe 
 Act had i^ssed. I opposed the gill of 4^2 ^O 000 lo the Company 
 What I advocated was first, that £lOO,00)8loek should be taken, 
 'then that £50,000 should be taken, and when these failed I 
 voted for the gift of £250,000 aUhougH T was opposed to it, to 
 prevent the loss of the Road. I don't rfceolJcct whether I supported 
 the loan of £350,000, but ft had my concurrence. The proceed- 
 ings of the Finance Cpnimittee relative to the advances to the 
 Contractors had my approbation. I believe I was a member t)f the 
 Finance Committee, though not the Chairman : and if I did not 
 oppose their proceedings they had my approbation. The papers 
 inarked 1, 2, 3, 4., and 5,aro the thirds of exchange by which a 
 '\^|X)rtion of our profit iu the transaction in question was received. I 
 l^eceived them from Mr. Hincks, inclosed to iiie or my firm. I 
 m'tknow Avhich. I don't know when they may have come to me 
 iJiave no lielief on the subject. It maJe no difference whether : 
 lh% are addressed to me or the firm. The letters to Mr. Iliocks 
 werle\from me— someof the letters from Mr. Ilincks were addressed 
 
 to mb |iersonall|,. -I duubi whtslber all of them were. I thmk 
 
 fr 
 
^ 
 
 iho letters were nddreMetl perfonolly to myself, fur the most pnrti 
 jl^. all events, ihongli i)er))U|%/;;to the cure uf the firm. Th« t 
 Jiijbdursemerit " Puy to I. T. I'arsoi^ A; Co." was made here by'one /. 
 of oiir clerks by our order. The rest of our shQre of the profit wutf ( 
 p«id in money liy Mr. llincks to me at Quebec in oush. I doD*t[ 
 .recollect whether I gave a^rocoipt. I thiok not.^ fir 
 
 I think Mr, Ilin'oks novor gave any nce^untormomoraiidiiin show 
 ing how the amount of £4123 Oh. lid. wai arrived at, \- 
 
 I th*nk it WM in .fanuary hint tliat it wmt Rr^t rutuoured tliat I wan 
 concornetl in these Debentures. I d<MiH know Ihi^l I ever mentioned 
 to any body that I Imd anyjeonoern in the negotiation. I don't 
 know that any niombcr of the Council wan aware of the faot. I don't 
 know that any body was aware of it except to suHpect, before I stated 
 it here in Court. I don't recollect any conversation with any member 
 of the Council upon the subject after the rumour an »ho. I don't think 
 that I ever stated to any member of the Council what was not the 
 fact. \Vlmt I denied was, that I had used the City fniids. I never 
 wjw asked whether 1 had any interest in tlie Debentures, l may have 
 been asked the question though I don't recollect it; butjn my 
 answer I had reference to the charge that I had used the City funds, 
 I never mentioned, intentionally'^ to any body, anything relating to the 
 matter. This understanding arose aa {o what I stated with regard to 
 the capacity in which I spoko. .^Vhatl said was, that I never used 
 the City funds, or had any interest as Mayor in the negotiation of the 
 "Debentures. I never gave any ineinber of the Council to understand 
 intentionally that I had no.personal interest ni the matter. I never 
 heard that I had been misunderstood on this point until after the suit 
 comm^ced. I told Mr. Cawthra 1 had no interest. I spoke at 
 Mayor, but^whether I said so or not I don't know. I always spoke 
 in that capacity on this subject, but did riot always g^ay so. I don't 
 recollect any convei-sation during the negotiation of the Debentures 
 m tlie subject. / 
 
 ; I was present at the meeting of tbo^Gouncil on the 21st of February 
 1 853, when the , report Avas brought up that the Mayor had an- 
 nterest in the Debentures. I said nothing on the subject upon that 
 Kcasion. I did not say anything about the resolution, stating he had 
 not pa r ticipa t ed i n the purchas e — leav e , I believe, was not giv e n to 
 thp individuals who asked to sue in the name of the Corporation.— 
 
 ■■I 
 
 ^'1 
 
 HI 
 
II. 
 
 44 
 
 TIiQ lotter markod O in uiy Imnclwriting. I think it wns addr«aa«d to 
 V Mr. Cottim. , 
 
 CroM Kjcaminrd by way of explanation. — I conat«ler tho purcluiao 
 of the 1 )fll)«nturm ah a matter of biuineiM of my firm. I nm not in 
 tliti liiibit <>f n{H;tikin;^ t*> other pentonn about the buainoHS of tlie firm^ 
 Hod Mr. Diuura letter Iteld out any liope that par could hav* been 
 got for the Debentures, I would have submitted it to the Finance 
 Committee. I have Qvory reason to believe that they could not haver 
 been negotiated at par, but I thought they ought to have brought 
 
 >.*?. ' 
 
 
 !' 
 
 I had nothing to do with bringing forward the iTy-Jaw in quefltion.- 
 The Mayor hud nothing to do with bringing forward any E(y-law^~> . 
 Ihey are brought forward by a Committee. I have no vote in the 
 ,' Council unless there is a tic. I usetl n<> influence with any m«mbev 
 of the Con^mittce to bring forward the By-laws. I was not present 
 . when the By-law for granting JBOO,000 to the Contractors was 
 brought forward. I am a member cx-ofEcio of all standing com- ^ 
 mittecs. I took no part in the De|^tii(tion of the £100,000 Deben- 
 ture^ I made no propoisnl for the purpose. The proposal wa» 
 made by the Bunk. From the time the Council directs the' 
 " issuing of Debentures the Mayor Ims «o control Over theip. I never 
 ^ refused to sign tliose Debentures,, or interposed any delay "in issuing: 
 /^■"""nhera. They were, I believe, expediated as much as possible after " 
 they were ready. I doiv't thhtk there could be any object in delays- 
 Tliat money, or a i>ortion of it, was got for the Contractors and 
 received by them before they were issued. City-. Debentures bear / 
 interest from their dnte, I believe they are dated when they are ^ 
 i^ucd*— they are signed by the Mayor before theyiare issued. 
 
 In this cose it was a gain to the City that the £100,000 Debentures 
 ' were made payable here. Tliey would have been at 20 per cent dis" ' 
 count, the then current price of Debentures payable here. I think 
 when the By-law of the Ist November 1852 was passed, it was/^^ 
 understocd that some persons in London hftct proposed to purchaier ~ 
 the Debentures. This information was received from Mr. Ridout*» 
 ktter. "• ./ 
 
w. 
 
 45 
 
 .>>-, 
 
 *" Jamtt Cotlm for the Plaintiffa tieom, ^tk-A know R(r. Roww, ^^ 
 kIho Mr. IliiickB; Mr. I(<>w«m nicntiunflcl t4> iiic Unit I )fl»«ntur(« wero 
 to lie itMiiod U» tlio 1 >ir«HtorM of tho N«>rtlicrii Iloiul, nn<l Unit ft •pcdil- 
 liUioii could ho inudo iit Uunn. I thinif tlim wuh in Kt'hnniry 1852. 
 , Mri liowoH itrojMMU'd that wo Hhould purcliiiMn the t><>lM'ntiir«'H «>ii joint 
 •ccuuiit. Tlii» Wiui,lM>fof« any iiwuo. Convenntion t(H)k plnce from 
 tiin» to tiiiiQ to tfu! rffi'i't/triat wliun iwued wo Hhouiti make the pur- 
 cliane. It wi M wutftfw tcd thftt„,MD.-lHuck«_ Hln mld be otAp loyed to 
 neij^otintojIiGin. I tliink tho pi<>|>«mition 04iine from Mr^ Howes, but 
 ~ 1 Jim not sure. I hnd ii conversftUon with Mr. Howew in reference to - 
 u propoaition' from tho Contrnctorti, or n n«>}j^)tintion with tliein ; wo 
 \>1ai\y iig^eed thiit the Debentures Hhould bopurchftned from Uie Con-* 
 V trrtctow on j oint iicct>un t. iit 20 per c«nt. di«count. Mr. Bowai wan 
 the mciliuin of communication. Tlioro wiia lio definite amo\int fixed 
 between Howes and mym^lf at tirst. I letl that to Howes. I h ad 
 communication with Jilr, llincks lieforo Uie final arningement with 
 Mr. Bowe*. I aannot tell when my first conversaUon with Mr. . 
 Hincks was. It wa« verbal, nnd roiiy have beeTK%-*fflPnUi or six 
 weeks befQcaJtlje fi»*t_.IJebentiiro jvfij„.dei)02^^ My first inter- 
 view was at Quel)cc. I liad a conversaUon with Mr. Howm praviou» 
 . to my first comnmnicaUon with Mr. Uincks relating to our purchase 
 ■ of the DebenUirese, but 1 cannol distinctly state its purport. Mr. 
 Bowessaid he had already communicated with Mr. Uincks. Wlien Z 
 first spoke tolkfirriRnck8,irel»ftdTnioMn^^ or appeared fo 
 
 have. I will not be posiUve Uiat I had more than two interviews with Mr. 
 Itincks. t may have. The \m one. was immediately preceding the 
 first issue of Debentures. I informed-Mr. Bo«e« on my return of my 
 conversatiot^s with Mr. Hincks. • ._ . _^ 
 
 ,1 had conversations wJth Mr. Bowes- as to the illegaUty of Jhe By-^ 
 Wof the 28th June. We proposedTo get over th^ difficnlty by 
 having "tfie" debt of £100,000 consolidated ; dnd that by changing ;^ 
 iliem into sterling they would be more valuable. This Mras some 
 time in the* beginning of June, I can't be certun. T can't be 
 positive whether 1 stated Jiis to Mr. Hincks. I never applied 
 to Mr. Hincks for. the ^rpose of having an act passed.'^ 
 was said by Mr. Bowes^ ihaii, J^Ir^. J^'ncks'^^ 
 the cflf c ci of^g c ttingji. b e tt e r^ j^^ Debentures th a n 
 
 any other person 
 
 
 "^..J 
 
 X 
 
 r.-- 
 
 i tting Jk. b e tt e r F'cc. tor t n e i fenenu i rps Tn a n 
 , and that it woifc be necessary to ^e him Mi 
 
 n 
 
 •c: 
 
 
ss^^'-^^f^^^z^'' T3^r 
 
 46 
 
 . ./ 
 
 >l 
 
 •>-., 
 
 itofMi ill Uie Dvt>untur«>«. m it would Im nccRMary to haY" h** •mit* 
 
 tiioe to |>r«Muim ait Act to iCoiuuUJalO tliom. I mw tho IctUtr frtnii 
 
 ha dtitriiotorx uftlia .lOtb Jurin. 1 think thii wiw a linyur twonftor 
 
 tN tlMt«^ Mr Howos idiowtsi it to tiio in hlA own oiHoe. Mr. I)owm 
 
 x>|tl inn Horno timu prior to tho {\aU) ot' that luttttr that ho wouKl 
 
 propoiw) th(< ot}«r of thu Ooiitritctors to th« ^itiiuieo Coii)initt«Ms ll<i 
 
 •aid, at thn lutnu) tiiiio, thnt they could not lUHu^pt it, Imhmiii-h) ihoy wero 
 
 not In a |Kwitioti to ritiiu) th» inoii«y to buy thotrl. He miid tlmt ho 
 
 Would niuko thq prop<Mition Iq ohlwr tluili Ui«y might Hot find fault 
 
 with him hflr«Mifl«>r. TIiIm wim th« Oiitywwon th.it I ro»iolloct»f(L/ I 
 
 on on« <H'rnhion to<»k h letter ffuiii Mr. Kowos to Mr. ItinokH. Mr* 
 
 Uiiu-kH r«»i<lent at (inolM'c. I ruud>thnt letter. It wan written l»y Mr. 
 
 Ikiwiw. It lidd reference to thepurohiwdof I >el)entur«». Ioonvor»tcfl 
 
 with Mr. Howes* <»n the «iil»je«l inatu^r of tho letter — my convorHatlon 
 
 NviiM with reference to tho mode of ruiHini^ the money for the purohiuto 
 
 of the Dehenturo*. Tho lettt^r hud reioreiico to the iMimoHul»ject. It 
 
 wa« delivered to ine open. I Keidcnl it in Mr. liowjw's OlHce. Mr. 
 
 BowcH direct*-*! it to Ik< «leliverd t't Mr. IlinckH. Mjr conunuiiica* 
 
 tiotlH wero with .Mr. Howort ali>nti. - The name of the Krtn was never 
 
 biontiono<l. '1 underHtiMMl that hi«» ihtefost wan iiHtividual. 
 
 (7ro«4 Examined hij Mr, Ounjmte.-^l do not tliink I was one of the 
 first to originate the charff«» against Mr. liowes. I never did Hi)eak of 
 It. ISvatin Quebec in De<wii^r 1852, anti when I came up horf 
 there wero placards about charging Mr. 1 (owes with chiseling tlid 
 City out t»f Jb'lO,oOO. I waa no parij to th6m, or any other placards 
 t>n the subject. I have stnte«l some parts of iny evidence, bSfrl don't 
 hjcollect what part. I did state that Mr. Bowes and I were to pur- 
 chase on joint account). I mentioned it to Mr. Moldoll aiul othoc^ 
 bttt I can't say to whom. I did not state that 1 could give evidence 
 before the Committee of Council. I do not know liow ray evidence, 
 became known. I was called on to give evidon^e before the Commit- 
 tee of Council. I can't say how I Came to l>e so called on. If I did 
 not state l>efafe that I was chissoleil out of my share, I state it now, I 
 took great oKibragio at my l>eit|| so chis!»elcd, but I stated nothing 
 aliiout it. I may have stated that I carried a letter from Uowcs to 
 Uincks. ■ ,' # .-...:;■/■.■. ■■•■-.-,.,■■- -r ■"" "' 
 
 f 
 
 
 % 
 
 The loss' of the Guclpli Contract was not tho cause of my 
 Umbrage. It was one amongst many others. I brought au action of 
 
./ 
 
 
 * " 
 
 % 
 
 W"* ^ 
 
 41 
 
 .1 
 
 ulnndor ngaliml Mr. Bow*')*, I'lil tliHt nriion liml ii<> reference ,U) th« load 
 of tliA o^intnict. I liAV« II Htronx r«'«*liii}; H^iihii«t Itowet. 1 can't ((t|l» 
 exactly tlu' |H'riiMl <tf my rtn»t iiitorvicw wjtli Huwoh uhtitil tlio Uc>Im«ii 
 tiirctt, but I tiiink it wm hIx iiioiithit prior to Uio .'luih Jiiuo. I $n\ 
 ttriain it wim ^lireo montliH prior to tiiut *lat<>. I ntniiot tell whet) 
 we ngrcoti to puroliiiMO on joint uccoiint. I otMrt tull liow loii)]^ prior^ 
 to tlio nOth Juno that wiM. I havo not tho HU{(hti>Nt i<lca. It wim 
 di'llnituly aKr(M.Hl that liowoHHiul I hIiouUI luirchiJc on joint uy'^tiunt, 
 hmhI tlmt WQ lihoutU gai Mr. lliuclu'it uMtiiittunce. /Mr. liuwuK iuid iiiA_^ 
 he hjul wrjlton to I Minn aiitl WiUm, nu.l Mliowi'd iii»' tlio Uafijr. W« 
 hail agrt'v*! to buy tlu-ni, if, uh the work wcnit ftlonj^, *n iihould 
 think it pnidi'iit. I ii«'v«>r untko to tlo! Contrai^oni on llie KuUjtHSt. 
 'T »aw th« ContractorH at llow«w' Ofllco al>ou4 th«Mlay tli/ h'ttcr of the 
 iiOlh «)f June wan writtrn. It wiw thoutrht U'tt<«r that, I should not 
 ii|M'ak to th«' Coutractoii^ ft wan thoiif^ht U'tttir to jijavn tli« milter 
 in Ho\vo«' hands. I did ni»« think it wrong thon, that tho Mayor 
 phonld inako the ptin hiw. 'IIjo objoot t>f a|>plyin|c{ to the Finance 
 jCoinuiittoo w.'iSi to *void nny blain« b«'inj( attached to Howee thero- 
 Jit>or. 1 WIW tlw^n in noj^otiation with the ContVueti)rs «'f the Northern 
 Kond abont somo (•( th» imiltcrH, and it wi» tlioughl U-ttei not to 
 iiR'ddlu ill this. "^ .,\ ' /\ 
 
 It wa>< finally agreed that ll»»wes and I kIiouM puK-haso when w« 
 leanioil that tlje Conlraetois would nell at 20 por e^it. discount. Thi» 
 wa a irtoiith jtrior to the 30lh .lime. Thii* was after I had fteen Mr 
 llincks. Wlien I huw Mr. lliiuks iJowfS luul I were the only 
 pnrtifs interested. 1 do not know how fur I slated this to Mr. 
 Jlincks, but so far. as I know, Mr. Ilintks had no reawm of any kind 
 10 form any other opiKion than th«t Mr. IJowes and inysolf weii» 
 xclurtively intordst^d. ^^:t ' ■ . 
 
 After tlie Contractors agreed to take 80 cents, on the dollar, Wfc 
 Bowes rctpiestcd me to take a letter to Quebo<« to get Mr. Ilincks to- 
 give directiouR to the Batik to ftdvance the money for me nnd Mr. 
 Bcjwes, on the Debentures being deiH)8ited in the Batik. I delivered 
 the letter to,Mr. Ilincks. lie read it, and told me that he would 
 telegraph and write to Mr. Kidout to make the inntter all rig^bt. ^ , 
 
 — It was understood that Mr; Ilinckp.wns to have a share for negotit 
 ating the Dclicnturoa, the nctt proceeds afler tl^t was to be decided 
 
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 between Bowes and myself. I made no arrangement with Mr 
 Hinckst Mr. Bowes did that I dou't know when the arrangemeni 
 was made with JMr, Ilincks. I don't know that any such arrange* 
 nient was ever made. 
 
 ^^"^I only heard it from Bowes, 
 to be paid to Hincks. 
 
 Ho never stated to me the amount 
 
 There was no other arrangement as to raising the funds other than 
 I have stated. When I retarned, I told Mr. Bowes that Mr, Ilincks 
 isaid it was all right < * 
 
 I eain't si^ when I had the eonversatioii with Mr. Bowes as to the 
 illegality of the By-law of the 28th June : we had several conversa- 
 tions before and^Hfter the 28th Jnne. Our arrangement fqr an appli- 
 cation to consolidate the debt was previous to the 28th June. I don't 
 recollect that out arrangement oh that subject was communicated to 
 Mr. Hincks, My first conversation with Mr. Hincks was a casual 
 one relating to the probability of the purchase of the Debentures.-^ 
 That was the whole purport of our coSVersation. I don't recollect 
 distinctly what did pass. There 'was nothing of moment My 
 second interview was on the subject of Bowes' letter about raising the 
 money. He said that it would be all r«iady. I always talked as if 
 myself and Bowes were tlie purchasers. I may have had oonversa^ 
 tions since, but I do not recollect when or where. I understood that 
 the offer was to be made to the Finance Committee, I remember the 
 purport of ray conversation, but I cannot tell the date. It was before 
 the letter of the 30th June came from the Contractors, but J can't say 
 how long,' When Mr. Bowes Vrote to Quebec by me we did not 
 <]i8cuss the terms., The draft of the letter was written when I cams 
 to the ofliee. I have not yet discovered that I was not a purchaser. 
 I have not yet discovered that t am not to have my>shar& I never 
 knew that Mr. Bowes intended to deprive me'of my interest until I 
 heard his evidence. I had reason to think so from his acts^ but never 
 knew it tilll heard his evidence. I thought from the hostile course 
 he was pursuing towards me that he would try to cheat me. I did not 
 make any claini because I was waiting for the result of this suit II 
 do not know when tlie Bill was filed. I believe that Mr. Bowes has 
 Deceived the money, butbejn^onbadtomjs and finding now a clamour 
 ill toHji alntnt it, r il(t iiiit S4X' fit to m.ikc an .•ipj>li,':iti<»u to hii'.i. | 
 

 
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 ^M not R party to posting placards about the matter against Mr. 
 Bowes. I never did say to any person that I could have been a , 
 witness for the City against Bowes< There was a definitive agree* 
 ment that tiie Debentures should be purchased by Mr. Bowes and 
 myselfl ■ 
 
 Re-Exami^edv^Tihnor to the lett|r of the 30th June I had nocom* 
 munication with Mr. Hincks as to noising the money ; but Mr. Bowes 
 informed me that he had made su<^ arrangements tliree weeks or a 
 month prior to my taking the letter t^ Quebec. A few days previous 
 to my going to Quebec Mr. Bowes, t old me tliat t)ie Enginecrjuad 
 giyep his certificate, and th§tjio_wou(d dday the issue of theDebon-" 
 turestili Mr. HincLsMettortoriic BanUsfiouldar^^^ . 
 
 talkedof purchasiiigtlid'DebenturGs Mr. Bowos told mo that ho had 
 written to Wilson and Dunn, and tliat Dunn had offered to negotiate 
 tlie Debentures on good terms : in fact not to charge anything for the 
 business. Mr Bowes shewed me a letter from Mr. Wilson or Mr^ 
 Dunn, I won't be sure which. The application to Dunn and Wilson 
 was fpr our mutual benefit in the negotiation of the Debentures. It 
 was not agreed between Bowes and myself what share Mr. Hincks 
 should have. .My inipressioii, and 1 tlunk Mr. Bowea' too was, to 
 give Mr. Hincks whatever he woukl demand for the job. Some t ime 
 previous r had conversation with Mr. Hincks as to the iiegotiatlon 
 «ifsoine Debentures m England^ Nothing was done. It was 
 inertly a matter .contemplated. We coriteihpleled haying Mr^ 
 Hiacks' assistance from the first. We could . not have raised the 
 necessary amount oursielves. I would not have entered into the 
 arrangement for a purchase if I had not assistance from some 
 person. We never contemplated raising the funds ourselves. 1 
 had^aj^tter from Mr. Hincks ^s to the negotiation of , previous 
 Debfintures belonging to n^yselfJ ^>ey were municipal. I cannot 
 say of what Eftimicipality. He offered to negotiateThem at 1- per 
 cent, I shewed the letter to Mr. Bowes. Mr. Hincks said the 
 Debentures were worth 05 par, payable in London, ut least he pro , 
 posed that as a limit. , 
 
 Per Cur. — It was definitively arranged thz^t Mr. Bowee and my- 
 self should purchase the Debentures on joint account Mt-wajj before 
 this that the application ^was madcto Mr. Dunn and Mr. Wilson;^ 
 
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 60 
 
 hbont a month or twd before thii. I havo a dear, recollection of* 
 leeing Mr. Dunn'i or Mr. Wil«m*s answer, but I cannot say which 
 and I may have seen both. This was before the arrengement was 
 concludedj perhaps a month previous. I cannot say whether I ufiVf 
 the letters orrheard their contents from Mr. Bowes. I had not 
 arranged with Mr. Bowes what Mr. Hinoks was to receive for his 
 .assistance. We have had communications about it, audit was sup* 
 ]posed that Mr. Hincks might require a third or one half. When 1 
 left Toronto with the letter, I had the full belief thati was to have 
 half of what Mr. Bowes received, and remained under that impres- 
 
 I returned frop Quebec in about three weeks, j have made no 
 kpplication fur my share. I never applied at the Banker to the 
 Contractors, or the Chamberlain, to know how matters were pro^ 
 ceeding ; but Mr. Boweg stated to me between July and November 
 1852, what was doing. He told me what amount of Debentures 
 Were issued and lodged ; and during this time he treated me as 
 entitled to halfi><j did not hear that the' Debentures had been' 
 negotiated and the proceeds received, until Mr. Bowes stated it in 
 Court I had reason to believe before that such was the case. I 
 did not know of the amount of profit, or that it had been received, 
 until Mr. Bowes statied it in Court. In December last when" I 
 returned from Quebec I saw Mr. Bowes about different matters . 
 and out interview was of such a nature that we have not spoken 
 since. I have seen Mr. Hincks since, but did not speak to him oh 
 the subject. I may have stated to parties that I had been chisseled 
 out of my share of my profit. ^ 
 
 By Mr. 6'«>jfnn«.— 4 understood Mr. Bowes to state in his 
 evidence that I had no interest in the profit on the sale of- the 
 Debentures. I am not positive. 
 
 : 
 
 (Signed) 
 
 JAMES COTTON. 
 
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 ■.,:••/■■■..; ; •' ;, si . 
 
 0- "' 
 
 pepotitions taken viva voce in<^en Court this Twenty-first day of 
 December, A.D.IQ^Z, in a certain came pending in the taid 
 Court of Chancery, wherein David Paterson and others are 
 Plaintiffs, and John 0_. Bowes and the City of Toronto' are 
 Defendants^ 
 
 John Qutchinson, sworn for th» Plaintiffs, saiUi : ' 
 
 i wds an Alderman of this City until a short time ago. 
 I had been an Alderman nearly two years. 
 
 I think^ 
 I recol- 
 
 in, October. 
 
 • ^^l^^l^se.yeral proceedings relative to the Debentures in question 
 
 •lunHl^se. I heard first confidentially from Mr. Cotton in July 
 oN|||pti IS52, that Mr. Cotton and Mr. Bowes were,interested 
 in the DebenturcB in question. This was after the £60,006 By-law 
 Kad beeii passed, and afte; the changei to the £50,000 Stock. All 
 I learned then from Cotton was, that he and Bowes were jointly 
 
 <^ interested in Debentures ta be purchased, and were likely to make 
 a good thing of it. I asked for no further piarticulars. The con- 
 versation was eonfidentiul. i did not communicate this ccQversr* 
 
 ' tion until the matter had 0^ come out. I did not before becauseit 
 was confidential. It was some time after the communicatiim 
 occurred that Cotton's difierence with Bowes occurred. I think 
 I supported the £60,000 Byrlaw, and I was in favor of tho 
 change to the £50,006 Stock and supported it. I think Bowes 
 took an active part in proeuring^ this change. Ho had then a good, 
 deal of inflaence in the CouncU. I was not influenced by him ; hii 
 opinion had weight with ine. He exerted no direct influence 
 over me. Had I known that Bowes was interested in these Deben- 
 " tures, I think it would hsive affected my conduct on the ooctsioq,. 
 
 I was then a member of the Finance Committee, and until I 
 resigned my ofiice. Mr. Bowes did not mention an oSkt he had 
 received from the Contractors to take 80 cents, on the doUaron the 
 Debentures at any meeting of the Finance Committee at which I 
 was present. I am satisfied of this. I never saw the letter 
 written by the Contractors to Bowes on the subject. I firsjtHeaid 
 of the offer in December I think. The purchase of Stock wks from 
 the Contractors, but I thought at the time that it was from the 
 Company. I heard that it was from the Contractors fiist in 
 pijceiiiBer^ ~~ ~ ~~ 
 
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 " I*aAn'a roerphant here, dud have been sinde 1848, during tha|N 
 time the rate c»fExbhange on j!)iiglknd here has been ffuih 10 to 1,1 
 and 12 per cenr^r^miunn. 'Inhere i» an ad^^antaga in negotiating 
 a loanjn England, becuqse money is plenty, and the mte of inter* 
 
 .est low. provided jthorcwas confidence it) the eecurity* ^^ 
 
 ■...',■ ' ,♦ -• , ■ ^ ■ ■ f ,., ' "''V-\: '■■ ' ■ ; 
 
 .^-€tv98-^xi;tmin^-—-i did-not hear from Cotton that Jie'and Bowes 
 Were interested in^nTfe-Ddbentnr^s'.until the 29th July, IShrnk.-— 
 Cuttop^and I have liycd tpgetliefittf-ajjnio years. I ani sure this 
 conversation,wps after the change fro^ntlitrie^^OO to the £&OfiOO 
 Stock, I hkve no'doubt of it. Xdid not get t^y pariioulotrs anddid 
 nut ll^ik anytlnngubout it : only Gily Debentures werelneQtio6ed . 
 in the«onvorsuton. " 1 could not judge whethct anything was wh 
 in itlta^uuse 1 heard no^rticultgrs/ I dift not. think Cotton had 
 referenokto the €60,000 Debentures. I did not know it had, and 
 thought itothiug jaliout it. I qonld form no opinion as to what 
 ^Debentures virere meant, and^did fiirro none. There were some 
 'Smalf Debentures issued about that time, noiie from which £10,000 
 could be made. I know the £25,000 was' a giflt to the Conifmny. 
 Idjdnot knoiv it had been given to the Contractors. I might 
 have heard it. I don't recollect whether I was a member of the 
 Coundl When the £35,000 loaii was voted, or* whether I took any 
 part. '- . *• ■ :■ ',.. . 
 
 I first became a menpber of the Council in January 1852. Had 
 Iknowfithat Bowes/fras interested in the Debentures I should 
 have enquired into the raatter, and had there been anything im- 
 proper I should have exposed it totheother members 61 the Council. 
 1 think the Miwor was enabled from his official position topqrchaise 
 the' Debenture^ I dc^n't think he had the.means or the credit indi- 
 vidualfy. I think it would have b^n less improper had I done it. 
 His position as Mayor livas, I think, used in this trai^ctiqn : he could 
 not have got the money without it. I donH think the Bank woiild 
 have taken the guarantee of £S,000 if Bo\Vei8 had not ^n Mayor, 
 it is mere matter of opinion. I never heard Mr. Ridout ^y so. I 
 • thmk the City has lost by the amount not being saved toith^tr City. 
 The City^ 1 think might have got the Stock at much less t^n par—- 
 theygot it at par— they sold the additional £50,t)00 Debentui'es at 
 
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 p a r . Th e y did not g e t value for the^Stock-^th<H^id not get it for 
 
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 rits mn^ket^ble vtluo. I consiiierit Whs worth from 56 to 75 oepta 
 on the dollar. ' I bavf heard i% wus in the>niarke|.' l tliink purchas> 
 
 ing the Sloolfrromtho Contractors and not the Company altered the 
 the position pf the. City— rthey ought to have purqhtised ontbefqost 
 adVantQiiepus terms from the Contractors. They wer© represented 
 in the- Comjpahy. t do'nH know whether they coi]|d have pur- • 
 chased atadisfcount from the Company. Bowes acting .for tjfio 
 City could %ye got the Stock at a discount, I think! I think fte 
 could have* purchfised from the Contractors for Ifiss than frtfm tlie 
 Company.; If Bowes had producedji letter from the Inspector-'. 
 Oeneral or Opvernment, saying ihiit a law would ife pass^c^ %gal- 
 izing the Debentures, I thiiikjheoiMild have got* aiS advance'©! , 
 i:40,000 from:^ the Bank for thte City.' I thilik t)iO «ity- con)d 
 .'have got the £50,000 Stock for MO.loOO. Tphie object df^>l||e City 
 in^ivjng the £25,000 was to hknefit thp Gomjwuy | afterwards I 
 •helieve,.j[hey wished to ben(jfit theniselvos. :I/<lou't think the , 
 CoTn|«iny could hj^ve preven^tl the Con^aiptors from seilfri^ ffaLe 
 "■ k^at 20 per cent." discount. >][ thought ^'f first l!iP City weiro '. 
 ihu^ original wj>)scrib^rs, as thdy pi'rchjtsed from.llie C.«1i|- 
 ' tractors.^t^onsjder tjiey'A^ere'not^.origMinlsul^cribeM Z under- 
 stood the Coihp^y reHnqwisl||d tjie £25,o6o4ift ottjcOnditionof the 
 City taking £50,000 Stock! I4hjnk the City migjitj^or^ri/piir 
 cJha.se the £50,Ooa 'Deberit\ireS for £4.0,QOO, under tKejxjduIiar cir- 
 cumstances conifidering their ille^lriy, which vfisas, I thiukytbe cause ' 
 of theirlieingatSO per,cdntdiso5nt. I did 'not know that ordinary 
 Debentures were fetchiiigwore. I have heard thkt the ordinary 
 * discoRit was 1 p€t\ cent, pai^ anpitn) : the Dobentures to the 'Con- 
 tractors coul4not> Ibelieve, be negotiated. I think if tbb Cctatws- \ 
 rors 'had got an assiirance tbut the Debenture^ woiild^ be legalized, •■ 
 they might have got ^>ar, and the Cityqould not have purchased at a 
 discount; I think the ContraQtors were getiing full value for the 
 Debentui^^— ^they were well paid for the worky Uiidprsuehcircum*' 
 stanceslthink it would not have been wruug forijowesas Mayor 
 ,to pqrchase the Debentures at a discpunt lor the City, although 
 having the means of legalizing th^m.^ I was examined before the - 
 Counicil on this matter, and the reasdh I gave for thinking that 
 there was anything wrong was, Chat the Stock was purchased from' 
 the Ccfetraetors, and not from the Company. - aJLjS-till think ity>.and 
 
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 I think th« Mayor u8«h1 Iba- or«dj]t of the City in nisin( 
 the £40,000. I think the Mayur actinf(,u such in the niltter wai 
 u«|(ig his influence as Mayor, and using the credit of the City/ I 
 think the position of the Mayur and the credit of the City were in 
 a «;|egree identieai. I was told by Mr. Cotton that the Mayor had.^^ 
 \md his pusifion in the inatteri which I consider jQsing tb^ credit 
 'of the City. ;-: -'."■■.-■. '- •■' ■■ . ' \'- ■:"''■.,■<:"■■ ':' ": 
 
 I Will not undertake to say that the Mayor did not say the Con* 
 tractors hiiul lieen offering the Stuck through the City at a great 
 liseount. t donU recollect it, and never heard it. I don't know ~ 
 the fact that they were so offered. I have heard that they 
 were offered. I have seen the Report marked P. before : 
 ^ it is, I think, correct as far as regards nny own evidence, 
 at p. 35. It is the Report authorised by the Council and 
 "'signed by the CIt'rk. I think differently of the I^ayor frbift what 
 formerly did, owing to this transartibn and other niatteri. Mr. 
 Cotton was concerned in some of these. . I have heard reports 
 froni Cotton of the Miiyor*s conduct — 'my impresjion is fbi^nd^d 
 fiartly upon these and partly upon my own observation. I was not 
 party or privy to piling the placards against the Mayor. I fi^as 
 sot present when any of them were posted. I did not know that 
 any of my clerks aided in it. 1 believe now that my clerk bad \ 
 
 taomething to do with it. I saw'a copy of the placard in my office, 
 whether before or after they wore posted I donUknctw. I will not 
 ny it was 'not before. I did not see the - roanuocript/ I am 
 positive I never saw them being posted. I think I did not see •> 
 the placardin Cotton's Office before it was put up. 1 saw a copy 
 in his office, the same I think that I saw in my own Office. I' 
 never had a good opinien of the Mayor. I dare say Cotton in^- 
 formed me' of the transaction in question before the placaids^ere 
 posted. He gave me to understand that Mr. Hincks was interested^ 
 
 ^ I thought he was to receive a third: that they were all interested 
 
 , 'equally.' ." ^.• ..^■■V/ ■...:■■■'. ■ 
 
 ■ i2^ri?aMim»n«f.-^Iitave had no quarrel witii Mr. Bowes that t know 
 of. I have net spoken to him as an individual for^some time—since 
 Deeember or January last. I wa* one of those who resigned my 
 office a s A lderm a n. I d id so because I thought that Mr. Bowes had 
 disgraced the City, and T disgraced myself iiy silling under him. I 
 
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 •aw the writing iriarked[ Q. sigAed, sealed, and deUVered, ai hisaot 
 and deed by Mr. Cotton. I am a sufasorihiiif witoffi toil. It wa> 
 executed on the day of the da(e>4 v i . 
 
 />er,C«r.— I did nrot talce'aSraotiTe part in the prdo^edinffs in the 
 
 Couneil relative to the i8miin^*of Debentures. TdonH recollect the 
 
 passing of ilieBfr-W of the j^h June 1852. I have been for yearr 
 
 intiinate with Goltoii. I heard nothing from Cotton about the pur- 
 
 vd>**aofDebeivture8 before July or August, and DecemberiC I am 
 
 -Jbot ^ware' of any other Debentures in which such a speculation 
 
 (Soiild be made, except those to be issusd to ft/e Contractors. I 
 
 thought tittle about it at the time, but aflerwardk referred the mat« 
 
 ter to^bese Delientures. If Ib^d givf li the matter any considera* 
 
 tion, I shoul(|/, at th^ time» have referred the' conversation to the 
 
 .Debentures ill question.' I recollect a petijtion ifi Augij^it for con- 
 
 iolidating this debt. It did not thein ocoitt toutne then that there was 
 
 iaythingimproper in the transaction Imul heard of. Iknovrthe ' 
 
 fnroce^din^for consolidating the debt was going on. 
 
 >I did iiot knjBv' until Decamber that Bg^wes vras purchasing 
 
 >il50,00o/ DeBentures at 20 per cent, discount. I did not hear in 
 
 J Jul^P^i^ugust who was selling' the Debentariiis. All I heard was 
 
 rihat Bowes and Cotton would cl€»r;eiO,0pQ on. a purchase of 
 
 i J)ebei|iture8. I have oo doubt that ihe. current price then was 
 
 llperoenl.peri^nhum. IdonHknow whatwas then the> market 
 
 ?alaa of the Stock. I have Jieard tliat.StoQk could tHeh' have been 
 
 , linrchased at a discount, but do not know it I neVer saw it offered 
 
 for sale, or heard of a sale of it' IdpnH know whethler it could then 
 
 have been purchased at all; if not^ihe.oaly profit to hQ dl^erivied by the 
 
 X3ity must have been from i^rporohase of their own De%itures. I aai 
 
 Bot'aware that tljieire were any funds in the hands of the City, that 
 
 Could have been used for the purpose. X hftve no actual knowledge that 
 
 flke Major used lua position as such in procuring the advan^^lrom the' 
 
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 I think the Bank Aiist havie been iflflufe^ced by the position of the 
 Mayor— they would give credit to any assuiianco he ghve as tcvlegalize 
 
 without the concurrence of the Chhmberlain. I recollect Mr. Kidout's 
 
 
 -n 
 
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 '. .* •' ^. ■ ' 
 
 Dftbr of the loan for consolidutiiW thodobt,anJthoHubB<j(iuent.By-IftW» 
 1 daro Hay Itook part in Uioho proceedings. . ' ^ ^, 
 
 pg^ HUfCIIINSOJ^ : 
 
 WiuiAM Cawthba ciilM by plkintiB :-• 
 
 I lent £20,000 on the Ist of Janurtry 1844,'a8 1 think, to the City -. 
 
 that was at 6 per cent interest at par — mom Debentures will fall due on 
 
 the Iht of next month. I made an offer t« the Mayor aiid to Mr. Thoni|>- 
 
 •pn of the Council to ren^w the Debenture^ I think in May 1852. 
 
 Besides the City Debentures, I held a niWgage of City property. I 
 
 luentionod tlio subject several times to tho\ Mayor and Mr. Thompson 
 
 and po3.sibly 'also to Sbv Beard. Iwas wnling to renew at par for 
 
 • 5 or 10 ycirs : five certainly, and I think I sliJ&uId have had noobjection 
 
 toronewlhtm for ten years. ^ TheDebeiitureVi hold arc pay»bl(^th 
 
 ■ principal «nd interest, at the 'Bank of Ujiper Canada licre. I l>elievo 
 
 "the City Debentures genoriiUy are payable at Mie same places After 
 
 ^»e,cooi«)lidation Act iKisscd an offer was'madAto me to redeem tlio 
 
 Debentures, >yhiclr I refused, fis I was not proWed witliout more 
 
 w>tico "to rpeetr so large a sura. I am a director of the 'Bank of 
 
 UpjMsr Oi^liada, /and have been SQ for some years. \The Govorninent 
 
 aoconnt IS Kcpt pt the same Bank. It is a yaktablo amount I shduld 
 
 be sorry that the Bunk should lose it. I wj^ not awnro as a director 
 
 of the itdvanceriiadw on tlie Debentures. The matter was not brought 
 
 before the board thlit I am aware of. I think itSyjis not. \l do not think . 
 
 . the Bank, would advance jG8,O00 to any mercantile firm in Toronto* 
 
 or ontheir,g.uamHte'c unless upon soqie good p^jper conhocted with it* '^. 
 
 ^for , some yeara past money has' been more abundant, aiid money 
 
 , Vjtsinable jat low'^i' i^atys. I have found it so myself as an invester of 
 
 ' money. ;;" ;/;.^ V- --'■-,/■ V-'-' ■" -:;' ■'■'':'•■' 
 
 CrojM-jKra»n/ncd[— Wljen willjiig to renew Uw Debentures it was upoh 
 the same security, iueluding the mortgage or City Property. 1 have 
 botli bought and sold City Debentures. L have bought them as low as , 
 L,>80 per cent. I beliSve a.s on^ motive I had in faking £20,000 in D^n- ' 
 tures was, if possible to raise tlioir value and i»)aco them at par. It naul 
 tiotthat effect.- About tiiotjnie/of the issue of the DcbonturesW 
 1P52, 1 wajS in tlift iiiarkfct wilting to buy Dt?l>ei»tur|08. I would ha\ 
 given more than eighty per cent, for City Debculurcs. T have no. 
 
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 recollection of tlio Contractort offerinjr^ nny to hio. t tliink (3icy 'dUl 
 » not, "Wlion I ma<lo in(|uiri((>« about fcnowinpf the Debentures I 
 lliouglit tite Mayor luul Mr. Tliompoon «he\vwl 11 i«byncH«(. abput treat' 
 Ing witK me. Jt cauned np coolneas between U{t I ttijlieve. 
 
 I think the I )«b<»nturcfl iMuctl in 1 852 wliicli T fmrc!ijw(»;l, I botigitt 
 ftt a disifouiit at about ^ or | per feont. per aniunii. In 1850 my' 
 agent in my alMe^^o purcliasod Debent^r&4 at a very low rate, aince 
 tlien the City Debentures have been, more (liflicnlt to purcbaac. It 
 ia more ilifficult lo ncll a largo amount to one liaml at a good rate 
 than a small one. "^ . v 
 
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 It would liavo been i^j>?)ss1!>le, t think, in October IjUp^, to bnvp 
 negotiated £103,000 of City Debentures at parin Toronto: I cannot 
 sjiv at wliai rate they eould have been negotiated. I think ^Ir. Ilinokt 
 rtilvisedmeto take consolidated I^jbenturea in llcui of those I hold 
 and, to give U[> my mortgage. I declined to do so." The consolidated 
 Del)enrurert alluded to, were not part of the' £100,000 Debenturesi 
 bat Debentures consolidated und«r UKj general Municipal Act. 
 
 ^ Rc-ii!x<tmh<!d.'—-^\^ purclinsing Delipturos to^i conaiderahl^ amount 
 I showhl do them on better termsxfor^ tlie seller than 1 or 2, but in 
 the" case of a very lai>gd sunv* £4,03pl6r, £j,OjO it would be. dlirundt, 
 as it is a snm not readily raised. I think juojiey here is worth riior')' 
 than six per cent,; and that Debenturdii^>l^pt at a discoUni; for thiit 
 rejtson, and mortgages even good ones ajso. 1 , 
 
 Jit/lkeCourL — Between 1844 and 1852 City Debentures were 
 
 pretty generally sold at a discount of 1 per cent, per annu^. ;' ,1 think 
 
 none havQ been so low as 30 per cent witliln that period. I bought 
 
 lo a small amount at that rate, I think, before 1844. I ejfl'.not say if 
 
 any sales have bejen made at as great a discount as 1 i>er cent, per 
 
 annum since 1860. So large aa sum a £100,000 coyld scarcely have 
 
 been raised in "to^onto aUmy rate. ' y \ * 
 
 .-. ' ■■. • ■ ■ ■ ■"' : * . ■ ' • ■ ':■ {'■'■/' ■ / '4 
 
 Considei'able" amoiuits of Ciiy .Debentures have - been 'isstted since " 
 
 1844. For the lifst !lirec or four years money has become so cora>» 
 
 p.iratively plentiful thatlhavc had some difficnlty'in^J>;ckiHg up any 
 
 Municipal D clffintnrcs. 
 
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 with their giiAMiiloe to that Amount, it would bo quite n (liAt>roul 
 thing from thvir guarftntoo nvithout such deposit* In such cuho tho 
 Hank might advanco tho amount. ^ 
 
 ' * (Signed) / V WM. CAWTIIUA. 
 
 JloauuA O. UftARD, twom (vt the llvinUl| Mith :' - p 
 
 '■ ^ ' ' ' ■ ■ •■ ■■■■'■■■ ", . ' ,' ■ -"W- ■''... ^ ■ , ' ■■ '■^■,v;'V-'~- ' ": . 
 
 I wflM a member of tlio Gitv Coiihun in ISftt, and nevernl yeni* 
 before, nod I* have b^ih an Aidcrtnhn for several years tx) January^ 
 1853. I was a, niomW of tho Finao««' Cotainittco ^ m 18/V2. f^- 
 rocolloct the dltforcnt prococdingA between tho City aiidr llie Northern' 
 Railway Company in qtieiition in this cause. Mr. Bowes took aii 
 active part in tho proceedings for amisthig' the Cbln^iny. I never 
 thouglit ho had an interest in tlio I>obeTttureA \m\xH\ to* tl^jy Contract- , 
 0T8 until he j|»ave \m evidence here, from his aAt<ortk>ti! tlmt he hna 
 not The opinion (if Mr. Bowes had weight with'tSo Conneil in^ 
 those matters, in which tho Government Irnd to be cortsiMteil ; it had. 
 wnght with m6 — it would have had nono had I known that ho was;, 
 interested, I never heard of tho oft'ers of the Contractors to sell tho 
 Debentures at 80 cents on the dollar: I heard of it fir^t about this 
 time last year. Mr. Bowes denied in the Council that he haicl any 
 thing to do with them', ho denied it to mo invariabfy. Bowes told,' 
 me that Cotton was trying to ruin him because he had lost tlio 
 contract for the GiK^lpli Railroad. Bowes i|pyer qualified his deniul» 
 by saying that he had no interest as Mayor : he said ho had no moro 
 Concern than I had. I took it for granted that what he said wa» ' 
 traev He wanted my nssiatance to secnre bis re-election as Mayor ; 
 and I ph)mi8dl and j^ve my assistance, believing thai he bad no* 
 com with th^ Deb^ntufcs. I never s»w Uie letter of tho Con- 
 tors to Mr.' Boives that Y recollect. It was stateil when tho 
 legality of the By-law was in^qnestxtn, that the Debentures would 
 be worth par to the Cbntractois at New York if they hail them. I ^ 
 think Mr. Bowes must have been present when this was mentioned. 
 I was seldom absent from the Committee. I don't recollect the offer \. 
 of /the Contractors l»eing brought up' there. I think I have heartt"^ 
 froiii the Mayof that the City Debenrtures wowld beat par in l^ngland 
 resources as w-ell a» We' ourselves, fl 
 
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 application to the Legislature to consolidate the debt. Hie \ Mayor 
 went to Quebec to get the Debeiilures already issweil,. legidizcKl'^ h<y 
 
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 «^J .lh» (JovoriuHeiU would not do it, but woutd iMinoli.Mi a Lmn tff 
 1!|I00,00U, We WHHteU iJiO.oOO to pay itoiuu cUiiiM uit.l tlio IMO.Oou 
 i»Biio<J Ui tli« IJoiitriictoM legal iaiHl. Il« ineiiti(>ti«J uu individual by 
 iiuuH^. 1/e wiM nt Qupbw when tho Bilt wiw i.iwh«,1 thruujjli th« 
 I^>Wer Uoum?. 1 mw hiru tlw inorniujf aJinr ]m return ; lit) nuid tlioy 
 IiimI had the greatest niwam ; thttb Mr. Uiiiclu had nhovcd it through 
 tp^o or three «tagc« in one night, «nd he left confldeut of HUecewi. I 
 7»aid I thought aie arrang«meat notadvuntago«»u«; that w« hud better 
 lot tt« l^liwiturcK run and have the £aO,Ooo or £100,000 for jiuprove- 
 mcnu. Itet >Ir. Howen Miid Mr. Hincfai would not do it in any otUr 
 way., IWCM wan very freqifently at Quebec that lununer : iie MtiH 
 the conik>li«ation Act would be paiiotid by the Council. Mr. Bowet 
 «hcwed iMo the prlnti^J liill which h« brought up. 
 
 Cro*«.A>«/j^m«/._If,i,V t known thrtt 1Hmm wiw Int^rwted in tilt 
 Debentures I Uiiuk I ntill ith.iuld have voted fur the change from the 
 £00,000 gift atid hmn to the £30,000 nUtck. I cannot teH wh'ethep 
 t»uch knowledge would have h;id any effrtcto^^ the Council generaHy; 
 |»roJ)ably itwWld not have had an effect on' the change : that it 
 would 8till have boen carried into effect : it onght not X think to hav^ 
 h«d any such effect, becayse I thirik the change was beneficial to the 
 City. The £23,OoO wan a gift, and the £35,000 was a loan. Thes^ 
 obligations were entered into upon a Petition from a meeting of inhab. 
 itnnts, prosideil over by Mr. Arnold, and alao an applicAtioii fro»a the 
 Board of Trade, with the view of diding the Northern Koad. It was 
 intended that'the proceeding-, for effecting this object should be legal : 
 tJie inhabitants were opposed to the taking Stock to the amount of 
 ^100,000. The Debenture* for the £2^,000 and £86,000 were to 
 be if?8Ufid to the Company or Oontractorato to be disposed of as they 
 thougltt fit. It mm stated by a jKJrton appearing to be the Attorney 
 of the Contractors, Uiat they could get par for the Debentures if they 
 had them at New Yorfc ; the Qontractors were present./ My opinion 
 was that members of ^4li5 Council phoujd not buy Debentures. The \ 
 Mayor was asked in Council, when the matter was talked about, | 
 whether he had any /oonoern with the Debentures : he said no. " This 
 was befiire the elec^n, and I have no doubt with a view to it. I 
 understood him to s^ that he never bought them, and had had nothing 
 to do with them . H e made e arn e st p r otestatio n s U> Uiis effect, and I 
 believed him. Jl «W prfeetly on friendly tc/ms with Mr. Bowes. I think 
 l.jaanx iet^ w* to get i^ito the Council and to buri^- at once wl>«t_Uie 
 
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 cnlli"*! tf»« cnliiinni«'M (Imi woro gut up tij^niiiitt Iilm. Onfl pflr cont po 
 milium wtM full valuti for lli«* DcWiilurcM. It wim uiutcrHttKid wIipii tliu 
 money wum MiilwcrilNMl ilnU no Sinkiii); Kiiiul wahV) Im; 4>i«tHl)liMli«(l. 
 Tliw WiM tliu ro!im»ii tilt! k'jf.ility of lln< Uy-luw wrt»t UoiibtiHl. Tlio 
 ohj(>ct of tho Ootiiioil wiu to ;;t't tliu DclMsiituren l«>;riilit(<«| wHIioui 
 crouting a ^inkiiij; Kiitnl. Itowen iiii;;lit liiWo stittoil, hikI 1 think liu 
 <lkl, that thu (jovornjUiotit ohjoctt'vl to K'Knliziiif; thu l>elN>nttir«* with* 
 out oreHliiig n Sinking KuikI. It was nut cunteuiplutiil by Iho 
 Council to rnUv X'lOO.OCO for fututo work". The City only wmitcd 
 ^60.tK)0pftml the Ait wiw pa^MHlto mii^ thin ninoitnt, antl lor^een^- 
 
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 tho XfiO.OOO DotN'iitiiicit t«li(>H<ly iNMuml. I iloiri think tlic City hni 
 lu«t money, by the* tninNnctioii of Mr. lk»w«H, othorwiHU than that tho 
 City ought tohavo it.^ / It wan not intonih«il that tho ('ity tthouKI 
 iiul»«!ribc for Ht«H>1c. |t wim Htattnl by Mr. (jinmilo that we ooiiKl uoi 
 fjot rid of tho X'25,000 gift rx<opt by puri-buHing Stmk from tho 
 Contractors, they having r«?c«'ivtHl tho iliS.OOO a« a Immiiih lV«na llio 
 Company. Tho City ba<l to deal with tho Coiitradorrt in ordor (o 
 g^t rid of tho X23,000 gift. If tho City had Hulwrib.>kior U'lij St«K^k 
 it muHt.havo given pound for pound, but it would h.ivobeeiha matter 
 for tho ifMiHidoration of tho Council whether to do tliirt or purchat^o 
 from individualrt. Tho X25,0U0 was )jplin(pii»«|iod on condition of thu 
 City taking £50,000 Stock. Tho' City woro oxptwted to pay money 
 for tlie Stock. If wo hiul sub-u^riliod foe- Htook wo uiunt lukvo paid 
 tho calls liko an individual. If wo had bad tho money wo Htill should 
 bavo issued Dobeiituro!) for the Sto«>k and used tho iiu»ney f«)r other 
 purpones. Thp market price for Delwntures, if legid, thou wiut 1 por 
 ceiit, per annum. If tho Contractors bad got this they might havo 
 disposeil of them a» tboy ploancd. Whether tho City would havo 
 redeetned the £50,000 Dubouture4 with £40,000 money, I don't, 
 know. Tho City wtui not in a ])oaition to raiso the £50,000 without 
 tho Act of Parliament. Tho City could not ox[)Oct moroifuvourablb 
 terms than par for tho £100,000 Debentures nod this the City did get 
 
 Re-Examlned.'—l understood when I y(it<6d for tjio £25,000 gift 
 that no Sinking Fund was to be created. It was bjtenly stated and^ 
 AvcU known. I bod the same impression when the £35,000 loan, vra* 
 agreed upon. It wan Mr. Cameron I think that suggested tlrat the 
 
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 i ' \ing Fund was uocciisa r } ' , and t hat the r e was some illcg t di t y ns to 
 ublicution : and in Conscipiouco uf this, opinion,s wore tiken. I wn» 
 
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 ()rwi«nt wTiPti iTtc Act wm pniwrd tat U'liliit; COO.OOn T)«>lioiitur«» 
 «ft«r >,^'U% the opiiiiuiiN. ^ wtw Ni)X{(ONf«'.| ih.il ih« IttlUlnmhUw 
 liMiiglit ill hihI tlht JJutM itatinL 'I'liin w»»h ilmio, ainl ilioro wjih » 
 giKxl iltiul of <lk-ii<«Hic>ii, niiil it wtM iirgmt tliiU if the iKHKniturt'* 
 #tre li^uotl th«> City wouM l»jjjujiir«i| nit«l tho C«.utriict«>« wouU 
 li^ I doii't NH.'olhTt whi'fljrt^^j^ WiM Mtid ulM»utH SiiikiJ^if'. 
 Jt\iiKli It' w«« inl.'iHhHl lMi)j« ^oriiiiwiit Hhuiihl hj^aliza^io 
 DolRjntim'H ill mmu* way «)r^ii>r; ^ii.iJiiik)!! thi« it(ij»|KWtioii I vm'il 
 fur th« Hyhiw. ( kmw that Wrt>^JAdi>6ilur«» tu U givMi to tbulkitk 
 wore to U) jiayuLluiu fc4iglun,«K_^Z^_ - ^/^ , ■ ' . V ' - ■. ;^ „-. 
 
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 /7// J/r. ffiv^nne.—'rhe Cdiitwu'torH waiitflil nioiioy to purohano in>iv 
 
 .^ which wa.H c'.\|>(kt<«<l to ri^fi in |»ri«'«; hut whi-thor tliin w»ih tlut \Hf S.- 
 
 I thi'y oxpectfd to gi't par |;»r thf Di'hoiitiinH I .|».ii*t know. I nmhrV 
 
 '■■ nt«HMl tht»y wouhl Iw) worth par to thtnii at N»'W Vork. 1 i|oi»'t kuof '- 
 
 whi'thor ih.' iron ww to lw« Umi-'UI nt Now Vork. • i^ / '.'" 
 
 /'#'<• f?ilr.— The CntmrtoN wirt- st^^flt-il tfi'at I'he IVlM'tinirw " 
 woiiI<l hlioitly Im' h'.jali/..'.|, alul iliil imt think lliiit any iiK'oiiv«iii«noo ' ' 
 woiihl arifiC hy iw»uiiij< ihfiii at jiiuc, amltiMtig aii*] liMl<liiij( th«Mn in "' 
 the incinitini<», Thoy winhcil to Unvn tht-in atoncrt/lKH-au^o thoy •• 
 wirtht'd to hny iron U-fore iho pi-i.-o nwf. •'^""•i^Stefe ITi-lmnlnrtni 
 tvoro sold at | per ttsnl. pyr aiinuii,) : othun* at I pliPfint, iHsrnnuuin. 
 I )elK>ntnroH wxjro j^t-norally sold at tho latter rate. [ know of HaleM U» 
 n large atnoti^t at titirt rate. Tho .juei^tion^i toeonverting tlio 
 ^, i:flO,OOp gift and loan to £.-0,000 Stock ^s nt>t imuh di^wuKMed in 
 tho Finhncc (joiniiiittoo. It wan genondiy <*oiisidt'rc<l /idvimtagoonti 
 . to tho City. THking llio St»Kk und giving the I >obentnre3 at tho 
 Baino rate it wan thonght that tho arrangement wan benefitiaK Thero 
 was sinno pernon on U'lmlf of the ContractorH prcHsing tho change 
 froin £00,000 gift and h>an to £.>0,000 Stock. Mr, Thoinjwmi ast 
 Chnjrnmii of tho Finance Committee had preWoHKly had an interview 
 on the subject with the Agent of tlio Contractor and persons repre- 
 senting tho Company. Ho inentioftetl tho reHultof'tho interviow, 
 , and thereupon the Council determinod to make tho. change. "NVhcro 
 ^contracts nro m«nle and payment is to be mado in Debentures, 
 tho tender is raised Bt» as to make up to the C'OntriMjtor the low of 1 
 rpcr cent per aiuuiin discount on the Debentures. 
 
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 J. 0. BEARD. 
 
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. 63 
 
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 I yas an AlJeriujui of tliQ City in 1852 : and a member of lli« 
 Finance Committee. I waU present at the passing pf the hy-lavf for 
 taking Stock. The Mayor was present : he spoke several times, an}!i^\ 
 aj>|)earotl very anxious that the By-hiw slioulil pass. I Jo not recol- 
 lect anything Wing said aboat a Sinking Fund, but its illegality ^kas 
 questioned for watAof pn>per publication^ and for not providing for 
 redeeming the principul a» well as interest. I opposejl the taking the 
 Stock on the lioad on tlie groun<1 that the Stock was not Avortii tliD 
 1 )ebonturcs, I had beard the Su>ck was worth Qnly 50 cents to the dol- 
 bir. It was said iti Ctmiicil that the Dtfbentures would be wortK par 
 to the'Contrhctors if the Bill were passed. I never heard of any 
 . proi>osal to the Finance<Jonimittee by the Mayor, that the City shoHlJ 
 purchase the 1 )el»entures at 80 cents to tire dollar. I rcntciiibor i|o 
 letter behig laid before the Comniittee from the Contractors to that* 
 fft'ect. The Mayor never said that he thitught of aiaking the |>ur- 
 chsutc iiimself." 1 wjis first aware of his being iiUen^sted in the I>e- 
 benturcs in January last, or rather I then first heard it^H^ore^. 
 
 Croits-Kxamhied. — T|>e liy-law of \yhich I have spoken tvas for 
 taking i)50,0'*0 Stock In ihe Hailroad. I believe I w;is in the'Coitti- 
 cilwhen the Hy-law was proposed for issuing £Q9;00Q jBi'ebentures to 
 cover the £25,000 gitl and Jl'Sd^OUQ loan. I dp hot dwtinctly recol- 
 lect what passed on that occasion, or that I took any part in it. I 
 suppose the Council went into Comnnttee lipon it, l)ut I do not recol- 
 lect. I do not rcctxllect whether I 4)biected to it* J wtis aware of tlie 
 
 "*!•** -* tab-. 
 
 - £2^*^900. gift and i,'35,0dO loan. I do not think • I shpuld have 
 opposed their Wing carried out, I h(t!itd of the Resolutiou ^t^ su^ 
 
 ' stitute jE50,QOO Stock a short tiiiic l»efore it was proposed jji'Council. 
 
 I do not know whatpassetl Milhc Finance Committee in regard to It. 
 
 I think I \va& not present. I attended pretty regularly aWut that 
 
 time ih the Fiirtmce Committee. I may have been absent once or so. 
 
 In Council it came Wfore Coinmittee of the whole. Idonotremeni- 
 
 . Wr who was in the chair. I opposed the proposed change .ts contrary 
 to lawT-jio Sinkings Fund being provided for. ' Others opposed it; 
 ulso Mr. Carr and Mr. RoWrt BeanU I think it was spoken of as a 
 ByJaw. Reference was made- to the opinions of counsel 'on the sub^ 
 jeet. i opposed it also because I thought we did not get value for ilf 
 because the StOclc of the Railroad wRSof loss value. The ll<>s«>lution 
 
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 JOSErn SIlEAIlD. 
 
 • Jamks AsiiMBt^j, s*om j;.r the &ntili,'saitlu 
 
 . I am a member of tlio City euiitTcH, and was in 1851 and 1852^, 
 I snpportod tlie Resolirtion for granting £25,600 to tho Company ; 
 also the RcsolHtion for the loan of iJ3J,0O0; and also supported, the . 
 By-law for carrying tlie ^iftand ban intoefteet, and also the Rosolit 
 tionfor converting it into tlV^ tnkfhg of the £50,000 Stock. The^' 
 Resolutions and By-law weresupivjrtcl by tlieXfayor^ He supported 
 , the matter in-all its stages as J did. I think )te had a g('>oil.deal of 
 influeneo with the Council duriftg* these proceedings— thatis with a 
 n>i»jority. I suspected that the Mayor was interested in. tlic Dcben-'. 
 tures first when a Comiwittec of iH'(H»iry Was appointed to investigate 
 the matter. I 8|ispected this biefoje, in the early j^rt of the year, if 
 net bfetore. 1 t^uld not lijue supported the' Resolntion tor convertins; 
 the gift and loan into St»ck, had I known that a more favouniblc 
 arrangement could have been made, i thonght it the best arrange- 
 ment that ilould be made ^^^ ___^ 
 
 Croas-i:xamiml.—lyra!i\)ot a member of tho Finaficc Committee. 
 
 I thought the fhange for coijverting the £00,000 "gift .nnd loan to' 
 
 ££50,000 Stock highly advantageous, and Uiereforc I supported it, ani 
 
 not from the Alayor's influence. It was the opinion of lhe lyinjority.' 
 
 This dpinioii^would ^wt have beeftartected if I had known that tine' 
 
 lV 
 
 was carri^Hl by a large tnajority. I bcllcvo City Debentures were ^^a- 
 then at a discount of I. jKjr cent, per annum. I did not know of any V 
 
 Railroa.yitock being then for sale. I understood that persons were », 
 present, al the Council on bc^ialf of the ContrHctoM pressing the 
 pjissing of the I)y-law, i^OtwithsUiuding the alleged il%dity. It was 
 represented as a itiatt^i- of urgencj^ with them to get the Resolutwn 
 ' ' ]m8sedi ■,. . ./, -■■;^:--. 
 
 Bij the Courti-fim nWt aware of any one being' deputed to nego- 
 tiate witli the Railway C<>njpiiny about the substitution of Stock (of 
 ilK! gift and loan. Afr. ThoirtfHon may haVo been, but I rathe? think 
 it was th\5 Mayor. I thought, of the two, that it was more .idvanta- .. 
 ff!0O»K to the City to Uike £»0;00b Stock iir the Railroad than tho 
 .footing of £25,000 and £{76,000 loan. - > 
 
 
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 Contractors wouKLiKflHTiS Debentures lU 20 i>^rccnt, diHcotint. I 
 l»clievcd that City Debentures were then nt 1 j)cc cent, per annum 
 Oiscount^ . I'eople were anxious to get them at that rate. J did not 
 know ofany Northern Uaih-ond Stock being then in th'^ market. I 
 *did not hear of thtf proposed change long before it wjis proposed in 
 jUouncil. I think Mr. Tiionipson, CiiairiUan of the Finance Committee, 
 bnMight it forward, but anr not certain whether it was he or tlie 
 Mayor; if it was nottlie Mayor, it wjw stated that it was"in conse- 
 quence of a conversation iKJtween the Mayor and Mr. Bercz}'. There 
 were persons said'^'to be connected witli the Company and Contractors 
 present wheii tliC matter was discussed. I judged of the measure 
 upo^^its own nlcfJLs witliout a reference to whether the Contractors 
 Were going to sell the Debentures or who wjis going to purchsisc tliem. 
 
 JAMES ASHFIELD. 
 
 / 
 
 John Cahr, called by I'laintifls ; 
 
 I was a menil)er of tlnA City Council last year. I reigned in Octif>- 
 ber last. I was not a ni6raber of the Council, I think, when the gift 
 of if2o,e00 was agreed to, I was a nieinber when the £3'^,0D0 loan 
 'lvji.spus.sed, aftd 1 .think present in Council. 1 was a member wl^en ^ 
 ihe £50,000 Stock wite agreed to be taken. I was present when t]io\ 
 liy-law was passe«l for t'lie issuing of £100,000 Debentures to cSiiio* r^^ 
 lidatc the debt^^ llle Mayor advocated strongly the passing of these 
 By-laws, gift and Ittgif and when I made any opposition he endea- 
 Voured'to persuade me to snpjiort them. Atter the rumors arising as 
 to the Mayor having an Interest in the Debentures, I put a (ptestion 
 to him bVi the subject in Council, and ho positively denied having any 
 interest. My'tpie-stiun was, whether he had received any benefit or 
 fexpocted "to receive any benefit from tlie speculation about the i!50,000 
 Debentures, lie liad previous!}' answered a similar <]uestion from 
 Mr. Remain, that he liad neither directly or indirectly received any 
 benefit from jt,,aud did not expoct to receive any. He ans^ysred my • 
 fpie>tionby referring to hjs answer to Mr. Roniain; <nnd when furthe^ 
 prised he appeared annoyed and indignant, and said that if furtliei*, 
 pressed on the sulrjeet lu should make it a personal matter. I have \ 
 heard him declam tlie*same thing both in and out of Council. v 
 
 '^Z'^'ii. 
 
 
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 (JfOsg>\fijta^ied.'-A imi the above question to the Mayor abotit 
 
 4'n 
 
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 65 
 
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 *12 montlw ngo ; I think tlie latter end of I»int' yew, I tliink it t>ro-^ 
 liHble thatl voted for tlie £50,00a Stockr I tliotiglit'it a. good ex- 
 v^oiiange for the previous .gift «nd loan. The Mayor always took an 
 
 > active part in favour of tlie Railroad. Ho advocated it as advanta- 
 geous to j^je City. I opposed the issue of the Debentures tor the 
 X60,000 as they were epnsidered illegal Jf th.it was* at the sain»« 
 time as the change of the Stock for the gift and loan I opposed the 
 whole. The Contractors proposed tlio issuing of the Debentures 
 th rough some members of tlie CounoiK I opj)08ed' U as wrong. I . • 
 think I voted for consoHdatnig the City de1>t, and is-wing Dpbentures 
 for tho purpose. I think City peb^nturw in the early part of 1858 
 were at a discount j^f about 1 per cent, per annum for the time they 
 r- hati yet to hm. "VMhenth? Mayor w'as quoMioned in Council he said 
 tliat he had neveV purchased any City. Debentures except through an 
 Agent, and to whom he had paid half per cent, ' ' . 
 
 * JOHJf CARR. 
 Charlrs J. Ortox, sworn for the Dnintiff^, /with t ' 
 
 ' I am a Director of the N<»rthem Railroad pud a- Sharchoidcr. , I- 
 have been a Director aln/ut ? ywirs. I al-io Imve acted as A^ent for 
 the Contractors in some matters until alwjut mouths ago. I Ifold 
 
 < £2,500 worth of Stouk. 1 don't thiuk the Contractor,* hold nearly 
 «w much as XlOO,000 worth tf Stocjc. . I don't know of any sales' of ' 
 St!(xk iu the lait or ])reH«nt year of rtny cojisequeiice. I donH know 
 the price. Very little Stock 4s h(jM by private; indivHuals less tbail 
 Xl5,000 which it was origin!vUy.*jJl^d»)n'tknow of any sates of Stoek 
 for money. It might or might not sell at 60 percent, discouiit. ' t 
 did not represent the Directors while Jtheir Agent in iU'mattew^^'onlj 
 for the purchase of right of waj. I was iwquaii^^ted wit^ the traQslM^ 
 ttQ|l0 between the Corapatiy ia& CJontracWs as far af the Boatd of 
 Dh-ectors was concerned relating to thju change fhora. £160,000>to 
 £150,000 The arrangement fw the purchase of Stock by the Ci<y 
 was of no advantage to the Company. The,£3Si000 loan was to be ' 
 paid to the Contraotore. The Company gave their Bondslto the Con- 
 tracters in Ifeu of the £35,000 Debenttires when the Arrangement 
 
 ' was.made for the purchase of Stock by the City, This was Ih^ only 
 
 (advantage the Company derived from the arrangemenit, if it wj» one. 
 
 \ I think the (Joiitractors had agreed to accept the ^muIs befot^.fli^ 
 
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 Company g«v«» up tlie £35,000 loan, " The arwn<?ftment hovfevar yk 
 all one, ami the acceptance of the BuuihwldpetMlea oiv the relinquish- 
 went of the £35,00Qi . • f 
 
 •OhM«-JKMW»W.---Th«y Oompany left the Uanagement of the 
 change from the £60,000to £50,000 to the Goi^tractors. Thc^,,were 
 to.carfy it out and the Company did not intorfer^. Tlic Conipany^did 
 pot care what «ho Debenture* were sold for. It was of importance 
 to the ConlractorsLto get money Jit the time of thi* hegotiatbii. 
 Thoy were very anxious to have the arranffement,fiir £aO,000-carried 
 jOuU 'riiey agr.?ed to the second arrangement, »i nd were>ankiou» that 
 it slrbuld be -cifflied out. 
 
 Per C'wr.^Tlie Company gave over tliP £2.>,00(igift and £3ri,(J0O 
 ipan to the Contractors as part of tlioir arrangeme-ib/ The Company 
 WIS unable to give -security l.thpOity for th»? Xio.OOO, >and it was 
 nfecessai v to make a new arraligement ; and thtin Ithe proposition for 
 the £|p",000!?tock in lionof Uie £tfO,000 gitVaiiJ l^m Wiw agreed t 
 lor thrContr^to.;. , : . ^ - . cUAJim J. ORTCyN. 
 
 
 ktvAS TcLLv called for the Plamtiffa : ;. 
 
 >^ 
 
 I romcmlM»r ll 
 D.'lK^utnres. Al; 
 
 I^was a me;nber of the Cily (J.»ijnoil in !«.>!; 
 pawing of tdo Hv-law tor the in^sue of £V<li»,O0;) 
 the exchange of*Uking Stock of the Kaih-oad Co.^,pany in lieu of ih 
 gift and lo«n previously agreed to. I never heard a word of. Mi 
 IJowes' interest in thebebentures at that tifiie. * . 
 
 The first 1 heard of it was from placards on the [wall. I never hear' 
 until to-day 6f Mr. Cawthra's jotler to renew the Debentures held b 
 ilm. I supported the By-Uw for negotiating the £100,000 loan.- 
 When the exchange was made with the Railway Company of taking 
 Stock instead of the gift and loJm we heard nothing of the necessity 
 of a sinking fund; nor until the return of the Mayor from Quebec 
 when we learned that the Goverqn^ent ref^ised to legalize the Deben- - 
 lures unless there .was a provision for a sinking fund of two per cent. 
 I think the Mayor stated so from the Chair. I think' this warf^pon 
 the occasion of his first Visit. This was perhaps .6 or 8 months bef*^. 
 the pn^^ing ni th e Act authorizing the torn It w»is not expected that 
 
 the csuse of Debentures issued 
 
 ft sinking fund would be necessary in 
 
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 67 
 
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 I 
 
 it) purchase Stock, as tli6 Stock might be dispose ot 1 was in farOF ' 
 
 * of the uegociation of Uie Jt:iOO,000 loan. If I had known of Mn 
 ^}' Howes' interest, in it I oertiiinly should notOiave votetl fo^ it utitil I 
 
 1i})(}erritood the wl^trle-eiroUm^tances o^ the pnse. If I hiul known 6f 
 Mr. Cawthru's iifFer to renew his loan it wonl^Tfiaye made a difTereuce 
 <%ith me, as a principal reason for the Issue of the new Debentures was 
 to j^neet those held by hiuii^ I thiiik it. was mentioned! in Council 
 tliaf'Mr. liowcj was nogociating a loan in England isliortlj bef^^re his 
 election for Mayor. Thin was. given as a reason for his re-election.— 
 •, That aii^ his general support tor KaitwayM induced nie to vote for 
 
 • him. ']: ,. ■.: ■. .\ ■■ ;.;■';■ ,.:■'.■■■ ■■ "• ■ 
 
 ■■4PT 
 
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 tn I85i2 he had a good deal of weight in th§ Council as a good 
 man df buiiiuess, and a suppurtcr.of public improvcincuts, 
 
 Crdss-Kxamined. — The mayor did not use any^Huence with me 
 to induce me ^ votefof the issuing of the Debentures. I i>u]*porte(l 
 the m^ii.«Aire on its meuits as necessary for the progress of the liall- 
 road. If I had heard of' tli^ Mayor having an interest in theDeben* 
 turesM should have ijiade enquiry to see if alL was right, as I think 
 DO -member of the Council should purchase Debentures. It might 
 have affected my vote for the Debentures. I thought the Debentures 
 is/iued ought to be legalized, anidtliat was one reason jjrhy I votetl for 
 tfie £l6o,000 Debeutures! I'was not a meiiiber of 4iKl<'inance Corar 
 miltee.^ 
 
 C~The 
 
 ...:, ^uyor- went to dlluebec on other City liihRittcrs -besides the 
 Debentures. I have uiidersffllirf that the County of* Simcoo Det^n* 
 tuww wdfo ille;? li, for w lut t)f a provision fiJhtJiiriiiiii!^ fund in<th 
 
 Siime mani),e|as those of Toronto. \ 
 lost by the transaction in question. 
 
 provision 
 
 I do not 
 
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 (J|tafe»ihJiiti!^ 
 i^l^iik^ilfet 
 
 theOiy 
 
 If the i\^yor bought the Del\cntures ! should hare hesitated as to 
 my vote because the Contractors might have sustained a loss. I 
 ^lought the whole .Y/«ngoment was' beneficial to the City, and still 
 think so. I thouglutHe Contractors took the Debentures at par. 
 
 If any stranger had purchased the debentures I should ^ot hfive 
 
 hcisitated as to my vote ; but c ^nsidered it a diffojcm thing when 
 
 a member of the City Council purchased ;, but I do not thinlc th^t the/, 
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 l6liers nro the Icttci«|fertwl.to ^^ 
 
 th^^ poUcnturei to th^moiint «»f y 
 ini>4laiiii of tl»e €it^;^?fc 1 wirt^^~ ' 
 
 I 
 
 rS^t&fi^ mm^(»ny'i^-mi^'^, <i«ductmg 2i for V^x^n^aii^i • 
 
 2d^^iil»tbnii^hyi:f':^ftaei^^ from' ]^r.^Crawftml :«ll 'y>- ",:; . . 
 Ifte-cjentv This ol||^ wi|fti»Me ^ the 9«i,or k of-^ber ' : 
 
 '^^ Finance Commit^ aecfiV^^l^f oijer. 1 ttiifik thewi w|»s ho j, 
 i>t^;pflfe«»U)lend mon^s^th^j^ity^at that time c^>ny c<«4|t»fence, ; 
 
 ItT.X-^^ ■■■.:■;•-.* ^ -■'.>y:;-;^>/:||:'V,,v --'.^^ ■:•"■'' i^ilvi'I--'- '. ■'■■^'■''-'.' 
 
 „ ; ' ^K| Pfbcntilre* issued btHc C#ractore ir€r«,MVlo^g'4li|to^ me 
 ^ ^' '^ vi^li ^«nk;^f ^FP*?"" Ciinada ^uihe! request of thef'Cont^acitj^ und ° ^; 
 * V ^/*:!^^|J^^ lM)oWledgr x>f tJ^, Mayor and Fmjinice Oommiti^ei; tliesH fV i 
 ^l^|Vei>tHre» vlrere«i^ie<l^ the M«y«>r and myself fi3 Chftfeberlain.-- . . ; i 
 iineiaily the Mnyor 9igiied^L>eb^nt^^ * I don't 'ge'*^'^|Jy P"*; u 
 
 ny natiKj tintil thoy;ar«» on tfifeeveof beiiig iaftucd, to prev^s^i^ij^ent : Ij^, 
 they IH« -filled ig) betbre thi Mayo^^^^^^^ 
 in ' question werQ liHd «p by Mr. Bo^d in tiie bo^yXtf' 
 .Colliip«?»«<'W«re 8om« ofjjrn f.Hed up by a young iij 
 Cdinpany's office an(y|^Bj*»t to hic and eomplet 
 ori*Wge<l the issuing^iSi)fiMintuies as s^Tn Jis a 
 for ishuing Ihein. ; they seeine«l exceedj ugly iin xioui 
 w»i a <MsiderabIe nroount o^ Dcbentuiesr Qver due, 
 or 4:6,000 or £Q,000 when the £lQO,000 loan \v|s rtej 
 of them SjBveral yeai-s, because scftnetimes paymeiit^vras 1 
 arid »rt other times when payihlent was asked parties were> requested 
 to wait until ah arrangoment con i d be inatle . T t ti ink there was over 
 
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 69 
 
 ItWt to /hU due, Hot to a large amount, perhaps il2,000 or XdjOoO \ 
 (luring that year : about ^3,000 or X4,000 have fullcMi or will falldu« 
 tluh year £'^0,000 will be due to Mn Cawthra on the l»t January next 
 aiid,4I10^0i|)0 to the liiBuruiK'e Coinpjuiy. The Insurnnce' Company; , 
 %«3re wilHug to Uiko payment of thoir'^ befure due iih tliey uould make 
 iiivetitt^iento within a limited time : they are nil retired nuwv All the 
 DcbiuatmiC'H I have mentioned were payable in Toronto at the Bank of 
 ITpper Canada. The Hank pays the interest and chargeH it to the City. 
 ]t makes no charjj:« for this, liefiiro the JE 100,000 loan wag negotiateil 
 tiio City li>Ad no I>ebcnturea payable iu Euglaud. The proceeds of 
 the £100,000 Debentures were put to the credit of the City tlie day 
 they were isfiued I think. The Bank allowed 4^. jwr cent, oji thb 
 £20,000 reserved, to meot Mr. CawthrnVDelrentures from l»t January 
 la*»t; on the rast of the £50,000 iho Bunk allowed no interest: it ia 
 within a very short time that the anmunt beyond that reserved for 
 Mr. Cuwthra has been withdrawn. 1 think there iV still about £1,000 
 in the Hank over and above the £20,00p. Several of the City notes 
 liuve not been presented until someNiine after they fell due. The 
 £20,000 due to Mr. Cawthra is tlic only part of the debt payable out 
 of the £lOO,000 loan remaininfT unpaid except about £2,000 or £3,000 
 Aotes not presemed. I.tliink X wji^i aware of the passing of the Act . 
 on the 1 1 th October ; tI»o Mayor was. iu Quebec when the Act was 
 passed. An imperfect copy.of the Act was proseiited to the Finance 
 Committee on the 11th UctobcKi 1 received a certified copy of the 
 Act\on the 22nd October : the last £7,000 of the Debentures were 
 issued on thW9fch-iJ^||evere^s by mo I think on that day ;. 
 
 by tIiWP^fw|i^%^di^ I 'w he signed them befok'e he went 
 
 Ui .QiiSKec. I cairt, il|pQlllp%ays(>lf whether he did or not ; I see no '. 
 mason to dc^bt that he signed ^them before l||,e went to (Juebec. 
 There is' no minute of th^'ii^an<|fCom^iac9>ajy|jJ||prixiiig theBsuo 
 of tlie ■£7,000 l^el>enturo.4Wt ih.ey wet thj« da]?i'anil iTiave no dyvibt 
 they ^sanctioned it : there are inihute^ foralfcthi? jveviou^issues^ ,The 
 Mayor had pouer to issue th#£7,OiOO DHJiit'nuires fmiiv the Act of the'^ 
 Council the day b(ifore. * This n\ay a^tiOunt for the^rtbseutS&'iJf a minute ; 
 (he minut^ are i!i my custody. I am often prescn4;U the meetingH 
 ' of ^lljLpMfe^^ommittee, during^he**(l'i^leoj!>^rt of <h**tM*s», T 
 was pi^fliHK^"^ ^^ ^^^ meeting of the 2dtli Af^, 18$1. Tthink 
 I wa.** pre 
 
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 the meeting of 2l8t Jhne; >S!^1, nnd »>. timt nf t l'4> 
 
 Sud July, atso 30tli July aud of 6th September. 
 
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 CroBt-Kxumltictl^ — I think in con<M>i|ii«>ncti of iho nnutitti of 28tli 
 April, 1851, Ihi) Mayor iippliudto the liaiik of U]>itQr Cnnmhi to know 
 oil wbiit tcrutH tht^y wuuid ^iiarttntoo the payiucut of the interest 
 on the JC100,000 lonn. Tho liitnk miitl ihoy oonld ji<it raiso tho loan 
 .unless the iuiorest was f;uarantcoJ. Tli« Mayor r.ppliod to tho Uiuik 
 in June, lti5l, anvl got their a»HiHtunco in Raising a loati in Knghmilin 
 ortler to reduce those outstrindin}^ notes and the Dobt-nturus due cjiid 
 to boconjo duo. The sumo object wnktspt in view until the £100,000 
 was raisinl : and tho Cur|)oration h.ut al\vay» been anxious to otfeet n 
 loan At par if pOfv«ible. Tiio Hank decUiied attHiMtiu^, as UHcIo!4^«, will^ 
 out thi! j^uaranit't' of the interust. 1 iliiiik there wan an appliiuiliou 
 to know what thi-y would charge for tlu- {^uiimnt'c Mr. lii'^ut said 
 he would coninjunicute with pen>t)iis in England oh tho subject of 
 raiHing money; the result must have boon unfavourable. I havo 
 known no loan Hincc I have been thumltorluin of ho liir^o amount 
 efteoted on such advantageous terms as the £ 1 00,000 loan. Wo. 
 gave Mr. Cawthrrt additional security which made a diflerenco in hit 
 case. 1 think ti»o Insurance Company also had a mortgage. \. 
 
 AVe*pay a commission of 1 per cent, on th^v interest to ^flfifcank 
 of Upper Canada for tlie iiayment of the interest; this is much (touu- 
 tcrbalanccd by getting the loan at par. If the Debentures hml beejx 
 payable in Toronto without any coliiiteral seciirhy the discount upon 
 them would have far countorbalauved tlie commission of 1 per cent 
 ori the interest On llagarty and Crawford's oflor, the Debefitures 
 were to be. payable here. The (Jontrictors were deemed entitled to 
 receive £60,000 Debentures. If wo had not issued the £7,000 under 
 the £50,000 wo must liavc issued thorn mid>-r the £l00,00ol Wo 
 were bound to "the Conlracldirs, I'art uf the J^4,000 for opening C«»l- 
 t)orne Street Wiis [i.-iid to the Contract'Oi-s for that work; i)a|ili '.wcro 
 Sold : that. r.-«JUod at par was in pfiViuent of work. When the (^mnoi^ 
 titih issue Debohtures at par for workjitis^^i-nsiderod tliHttlie C^lS;;p»iy 
 more for the work. In tho Summer </f 18.'>2 the niarkt't I^ice'^* 
 City Debentures having 20 years lo rim, vns, t think, i20 p^Nienl. 
 (liscuuHtur 1 per ceut iter annum : there were many sales at that 
 rate. While the Coritroctors hud control over their ££0.000 
 Debentures, the City had no funds wherewith to tiurehasb\thein 
 The City c6uld not have raised £40,000, to redeem theui : had 
 t hey w is hed to reJccfni them th?y must have i s s ued other Debcn - 
 
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 tnres V* *^o nmonnl or XfiO.OOO Debenlures, ftxc(^4 by accepting 
 the ofl^r of Hagarty and Crawlurd so far ab it'went f I nevcrr knew 
 any other ofler Itcyond theirs. It wo»a long Ifme afterwards."^ • 
 Pehentu^es bear interest from- the date of issuing them. Ilnftarty 
 |ind Crav^fqid's tender cuino at the same time lliat the l^ank** 
 did ; and\ the Finance Gommitlee accepted the llaiik^s lis 
 more adVo^ntageons j the credit of the City was hot lised by 
 the Ma^or ^n purchasing the Debentures.. It could not be 
 uned wi|honl my knowledge. The yea! of the City, which , 
 is in my custody, nev4r has been used for the pnrposo. ■ 
 
 No delay wUs used in issuing the DelKsnlurps upon,receiv 
 I'ng the Certificate of the Engineer .i»r the llHilnwI. This 
 Certificate was necessary before the UelWntii.res cf<.iild he issu^jL 
 The.Certificate cume through the Fin«ii«*r Couunittte,^nd "ifT^ 
 made an order for issuing the Debentiir«-s. Evrryiliiiig wus dtfn^ 
 to expedite the issui^ig of the DebtptiireS. The (;oltT>ons .wre 
 filled Upat thaliaiirO^d Office to expedite iheni. Idyn'i know.^ 
 what oVijecttlfeMnyoi^ could havfehadin.wltlilroldnif,' the £7,000 ;' 
 he did; not in liict witlihuld it; hud the condition bce« complied 
 with the Contriictoih w(»i|ld have iTCfived \\\d m^ioIc iih July : the _ 
 Dehnilurts wore Mgrd in the IJaiik t'tir tho Contrnctors. Tlio 
 City has rfci-ived jnir for tbe wholt? .1*100,01)0. * The City bnssns,- 
 lairiod no"loss (rom the tmnsiactioiix llmt liuve ooMirrj^d. 1 consider 
 flint the City 1^ gained; tl^ «r«»sl\jro|' the i:fiO/Oo gift and 
 to £50,000 Stock was very fiV^'oruhle toilhe City. It had been 
 Contemplation for a considerable lime to raise a loan of -£50,000, 
 and it was done as soon as an Opportunity of doing it beneflcialfy 
 occurred. A considerable amount pi Debentures has been issued 
 since IbeJMOO.OOO loan: they hi|\te been sold at If per cent, per 
 annumlHRit. The efi^ioUng t^e £100,000 at par had the eflect 
 cif improlng the rates of the Debentures. The notes of the 
 City I have mentioned were pn>abje in a year with interest ; it 
 was very desirable to convert suclVsecurities into Debentures, 
 The iss4te of notes was injurious to \heCity| The Bank would 
 not nssi3Ke City while the notes w^e^n circftlation j the riptes 
 passed current ; there v^s no difi|!ul|j;. l!ts^ City redeemmg 
 them: they xyeVe. always redeemed rPily, aa^erefoi% passed 
 ( nin lit Thr'^f' t ^"" .^^^:.>^^ .u^ jC ^ 
 
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 Northern ^laiFwiiy : th«y httve mised it not ■■ original MiUcrirwrii 
 but ai on ft trantfer from the Contractors, I think by arrangement 
 with tHe #Dmpany, but do not JuM|ggg||^ Certificate was for 
 XftO.OOt^' Stock. Mr. Dercay wMe a letter oflerini: to%regoall 
 objectioni to the It-polity of the Deleifliirrr '{ and I think this lit- 
 ter i}jfd'in effect on the Finance Committee in inducting them to 
 !»•• •iiBy-law. The Contractors were always very inrgent that 
 *hf pftjpntnres shuukl Ite issncd. Toronto Debentures were not 
 kipiln^n the New York market. I don't think they could have - 
 Wji sold there ot par, or lietter than they could be sold here. I 
 kHVe Dp douj^the micrifice made on the Debentnrii ofJbe Coil*^ 
 unctorsossistl^ the City in raising the remaining £50,000, although 
 the £100,0001 loan was raised so lonj before. Mr. Cawlhm'Msnd 
 the Insurance Com|)ony's Debentures /ell due; yet upon the{W>le 
 I^'ink the UUy hos gained by the transaction notwithstanding.tho ' 
 twK'f interest Ky^tthig the money at par; the loan could not have 
 ■li^en raisetl so fflVourable since. I heard, that the Contractors 
 were raising money to i^rchasjO. ours I was present at the meet- 
 ing of the Finance Commiyfte^ llie 1 1 th October. The pro: 
 pusal of Mr. Ridout which was coflkidered at iKrtit meeting ii|«|teared 
 to Ihem ndvHnta^(|||. I(^ not img|obable t^at the Mayor may 
 have signed the £'fWlb DeWnlurrs beloro he went to Quebec; he 
 went, I think, at^;i)j the end ofSepternl»eror tieginning of.Oct(»l>er. 
 It was probsiblohe nug|kD|>e dctained^ji Quebec^d the Contrtie- 
 tpif miglit want the Debentures bej[or« lie returned. The offidal . 
 
 Ityed after the'l^uu^ of 
 ) were ilpplyjng fyr mem. 
 
 »lice of (lie {ius8ui)|.of the Act was 
 
 e £7,000, Debentures. , tlhe Cajtracwllw 
 
 aSfiirfllsi 
 
 $inetiiYies 
 
 .%^ 
 
 JRe-JSiamtned^The dity ItalHIhirtflisa Exchans^ 
 
 liefore.tHi interest becoi^rsdue'''||| order to meet it. The Bank of 
 
 |iVpper Canada pays-il and charges the^ity with the current rate 
 
 yj^of exchange^ ThevCoihmit|ee eonsidemJ the Bank*8 offer was 
 
 ; It for the whole £100,000, and it was not conj^iclered whether Hagarty 
 
 and Crawford's offer would have been less advantageous than the 
 
 BafikXiiBd the Bank advanced the remaining £75,000 at par. I 
 
 •have made no calcu|ation to ascertain the comparative advantages 
 
 '-of itagarty and Crawford's offer and the Bank'lj siipposiog the 
 
 remaining £75,000 advanced at par. I tjiink there Was no adver- 
 
 iifement ois to taking up the loan of £1,00000. t spoke tp several 
 
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 parlies aboiif if. I know no reason why theixirlitf who sold rh« 
 Delirnliirc!. in Knylund could uol Imve sold ihcnuii advunlugr- ' 
 ou»fy for iht! City. I don't know on what tcruw lliey were sold in 
 England. My opinion us to tim e.x|Kjdiency of accepting Mr. 
 lli.lout's Oder wus (uundt'd on sales hetc. I dul iu.i siisficct thut 
 Bowes hud anything tudoph tho puichaso o( iiie Dubeulurt-t 
 until It hecunio runn.fod ultoiii tho town. ! 
 
 Per Cur.— There were £ 15,000 or JE 1 0,000 notes fjilling due ia 
 IMS, wiiickit «U8 ncctasury lur the Cofjioral ion to meet. There - 
 W«« no avc.iduMe .leluy in issuing IheDelH-ntnresalUr tho lly-iaw 
 of 28th June, IS.W, The Alajor did nothing i6 delay iho issuing 
 vt iheu^ ii^ gave me no directions to Ihul tUccl. 
 
 ;;^ (Signed) : ^. T. McCOllD. ' 
 
 ■«:, f. .• W:,. ■ _,, • • .■•--.-:; Wf',:- 
 
 ThursJjiy, a2nd December, 1 SSa. 
 ^W called by ri:untiffe: , 
 
 lama^jreilral agont of the Contractors of th<? Nortlicrn Rnllroad, 
 
 I h:r\-o been sa,(>iiioc thoy comiuonofed operations hcr«. I do all their 
 
 bu«inri^ iu th-rir abicnco. Fajicr li. is my handwriting. I 
 
 l>repaml it a few (jtvys aijo frolu tho book of tlie Contrac Jfeyjpt by 
 
 myx.o\( in my own Iiandwritin^tj. It s-liews correctly tlio ^:tJMPis of 
 
 the Engineer of work done from lime t<>4ime. Th<; datd^^S the 
 
 days on which I re.eived the certilioatC!*. It also shews correctly the 
 
 certificates of Stock deptwited with the Chamberlain, with the correct 
 
 dates,'e^cpt that 24tli Jtily fihould be 30th July. -The 1760 shares, 
 
 '750 shttlJea and 2,000 shares of tho £38,500 shares, were original 
 
 shares issuetl directly to the City. The Contractors drew £8,000 from 
 
 the Bank of Upper Canada. The third class of entries shews tha 
 
 .dates on which we knew the amount of Debentures credited to us at 
 
 the Bank, and to have been placed to our credit. We were raising a 
 
 greatVleal of money ut that time, and did not^et the Debentures as 
 
 rapidly as we desired or expected. ,In order to expedite them we 
 
 had the coupons, \Viih the exception of a few at the commenoement 
 
 Jlk'd up ill our offi(!e. I applied several times to get the Debentures 
 
 issued, tiiid urged expedition. I. do not know exactly the causes of 
 
 delay. Sometimes I believe the absence of the Mayor : sometimes 
 
 
^J- 
 
 '^w'-iij . *^fm 
 
 • i- 
 
 the D;*b«t)liiri>« not Mng AIUI ii|i. At tlint timo th<* Str»c\c 
 of tlio i'oig^Miny liiul do niurkctiililti viiliu*. I know uf iiuno 
 Win;; offvitHl ixcopt it d'w nUnn'* Im'M Uy |N>r»oiiA in th« codntry 
 wiiicli \voix» ort'tTOil nt a inoroly iioininiii jiriiM-. Tlu' Contrjictor* lub- 
 Kriboil t'lr 'X|5),0u') of St.vk; thin w*w uiulii- llh'ir iH.iiIrael. Tho 
 Coijnly<if J^Iu.ioc ttMik I'iO.OoO. i'livaU* hiiliH«ri|iii«»iiH \v«'re to ilm 
 amount «»f alH.m £1^.000. I tli mot know \vltutlK>r uny turttiur »utii 
 liiw iH'eii tukuit [»y indiviJiuiU haoly. 
 
 T?alo!4 Tr«v« r»,en niaU' l«»*'jy at 40, HS. aixl 27\ [wr cent iliHoottiit. 
 I cannot say wIm-iIi'T llif Sii.iik is tMnit in valui'. Sini'o tlu* Int of 
 ' Jply lastalijtut i»oo«har.n» lia\»' Uimi lakfn I»y in-iiu.lMaU ;i>rrvliiUH to 
 timt, vory ('»•«•. TIm' i'lii'JjV^'O luaa lo tli«;/.'..|ii|.any l>y iIh> City wan 
 takoii Ity tliu Coiifradoi^i in the Compauy^H.boiKJ!*, »o liint lli« City 
 Imvo no lien on tlio toa.l. Tlic LomU wvrg taken by tbo Contractors 
 osa payuunt^o'tso iniivij nj>on tliu \yuik. 
 
 CVo.»«.A'jr««i»Vf/. .-Tbo sale of tbo Stock to tbo City van npt 
 ♦ffectod by luo^ \t was .lone by Mr. (Joorjjo A. Lawinon,J, a ineinbor 
 6f tbti llriii of Stui-fy tt C*.inp:»ny ; ha aiul .Mr. CouiHyriijIit bad 
 speiMuI powers lo act for tbo firm, .. 
 
 It Cost n groat (b al of labour to fill up tbo connf,in. Tbore woro 
 forty of tboni to oi^b Ih-bcnlnrc. 'I'Im' amount f»f oa.b DrlMMitjiro 
 was X2.')0 : tb.'y Wwrtvlilb'tl npin mv oJiiivfor ilK»H.»ki' of .•xi.f.liiion, 
 I capnot »ay wbal lime iLipM'.! bftwcon tin- ib'posit of ibf c«-rlirtcatc'* 
 and tbo dvpo>it to onr crclit at tbo Hank— tbere may bavo been 
 dnpUcatc oertiticatesoneofwiiicb was bambd to tbo l-inanco Coininit- 
 teo fi<)m time .to tinK*, bnjt I do not know it. Wbon speaking 
 of delay I da not wisb to impnto any intention.nl delay, lait our 
 necessities made us impatient; tbo Cbambt-rlaiu sboVlpd everv di«- 
 position to expedite mutters. I never tbougbt tb^ was any 
 intentional delay. 
 
 
 I could form no estimate of the value of the Stock in 1852, as there 
 was none in the market, and it cuuld not be suid (u liuve any 
 inarketable valiio. , v ^ 
 
 Rf- Examined. — I do not think that (he delay was at tU accounted 
 
 fqron tho ground of the legality of the Stock Iwing questioned otf 
 
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 none 
 n»ry 
 
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 the I'^ili Muy I8.V2. \\> rrcciireil fhrni th» t^mrn^ffittfprtiflfari 
 <>i XlOO.wo iM'Mig «|ji«* lu lilt) Colli nioiur* lojr woiW il.-ii*', iiiid 
 ♦•xiw'ctwl 10 rwr-ivo ul i.ik'i. llwX'ai.OOi^Uu^ r»y the Ciiy ujvii w'tilk 
 
 to (llt> uIniVO IlllluUllt living ilullC. *^fc^v' ,.,/ 
 
 rtfMM-Hxiiuhhfttfh l» Am —flic «U luj^fclTirred t«'. 'Tt wim lo the 
 C«Mii|iMiv, IM'I lo llif Ciiy lliiil we |,h,UmI iMr«tfiif«| IwiIih i;240ooio 
 uliitli I hiivu rtfirr»'«l uiili ri'*ji|w'c:i W ilio ccrlifii'iiti! (or llu* 3:250 
 llMlifi LSOOO t»l Ihwiu iiliurts hml uut Xaoa jifovKuwIy i*M«»il { «nU 
 12.1(1 o| llioaliuri'3 were liy ccrli(icuU«8 »urrciitJcr»'4 by ih« Con-. 
 truc(uri» ■■ ■*. ,•.,• '.■.■-. , ;:■, .. ; 'ii^/. ,;-^»^ 
 
 GEORGE BEATTY;' 
 
 g»li8litulH.ncif £50,000 Sto^k for £6oOOO g ift n ml ln.in ; ^r i 
 ' • I "I*'" '<^Hiiig ovtT my evkleuce liefcic the Comiiiiiter, Irccollect it 
 
 ***t V :l * ■ ^- r^^^^^ refereiice to the illcga!ity of llie By-luvv of the 2Slh of^Jiiiie 
 
Thii intervj^w was liefttre thoipiiKsiiig of this Dy-lrtuv I reported 
 ' what pn^ifio the Council/ l>eture the itussing of the By-lau-. I 
 reported whut Mijor LawiiiorKl stiid "us to ilic Dt-lieuturrs Ininj? 
 worth par) the same evening, I tkiuk the By-la »V|K»ssinl. J 
 rememtier the arrangerncni ufU'rwuiVIs iniide lor chiinirinj; the 
 gift und'loun, to the taking of Stock. I sHp|iorled the oimngu an 
 decidedly advnnrageous to the Ciiy, ondl sli 1 think it wnsr . '* 
 
 I donUlcnow what theStock was thencoBsklered worth.hnt I heard 
 ail opinion expressed by « CQni|Hjterrt judge, that all Stock of a Uuil: 
 way Gonjpaiiy is not worth more than Sj cents on the dollar, Ik fore 
 the road goes intooperation : that was my opiiuon when the iVIayur 
 proposed I heohange, 1 considered they were tlie best teryi&tiiuil hit 
 Cif y could luftke. 1 sopptHrfed this proposal pn thatsHp positi 
 *nd to iiron>ote the coDstruction of ttie road, -i^^*™""" 
 
 
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 JCIOO.OOO lonn was prrsentcd to llie Committct', ilu* Mnynr stnfe* 
 fume, I lliiiik, A'iiliiiT lipuriiiG; « f nifiiiiMrit iC lli<> Ooiiiiiiilfi'c 
 llml hr wus jsltid the pfirr Inul ooinc (Vt tii lorlirs in EhuKukI !• 
 •tiike those DelWiitiirr!<i, Ihciiiisi* Ik' \\m\ Imri mmiu- ifl« a of «'iit(>riM! 
 into the trun^icliuu lviiiis«4f', litit llviit hh Iih mii M.iyor of ili< 
 ' City lie thuitglit it u'uiikl liuve tiecn iiu|»nijtt'r lur lirin todo .sy. 
 
 The si«*ij»«ct uns not then rrn'iiiionnl for sormMnonl lis nnijl nfUT 
 the.|ilucurilsu{tpeurp((; t|i« Miiyortlirn spikH t«i hip i>n Ihcsuhj.'ct 
 and upppured ^Villinp to (%»iniuiinioato llie circfinijitiiiipcs (u nic, 
 but I dfclined to hnir Ihpin; fliis wufi nflV-r the plirlion; I sard 
 that any inftrinufronhv luiqlii iiivp Ww on iIip siil'l'-ct Isliouldpon- 
 Rider inyspir honnd <n Hiiikp ppMic; tiii Miis twuision Iie-U'd hip to 
 ♦iielieve Irom what he ^lU tliut hw wiis in Mime way intcrrstpd in 
 _ the purchase of the Dpbenturp!^ j J did not re|iort lliisto the Otnitieil} 
 it wusa mere infprence druun hy nio frorfi snniclhing ho said. n«.i 
 an cApress statenipnt cm his j art. I snpportpdnuvl3^-la\v forjhla 
 i!lOO,000 Kian/ When I snpporfpd the rr^fohition forlli"e pititi(»n / 
 mid the By-law fur the £100,000 liNni. had r known Ihat Mr.l 
 Bowes was interesfM in tlM}^-^^^^!!^^-.^, my eundiict sindil|p[ / 
 conrse I took would have been hiitUrially adi'irfd. llad I knoun|/ 
 that the conversion of the i'.'iO.OOO Del»enfnrps (lom Cnrrpiicy iiiio\ 
 Sterling was for the lienefit of Mr. Bovvrs^uid Mr. 11 nicks, I urn .' 
 snre I shonid have don4)tpd the correct iiessdf the tllU1^nclion, and i 
 should have ascertained w'hether more fuvoraMe lerrjis could not 
 have^been made for the City i iii one rpfpfct tbe change wus-a 
 disadvantage, in another an adv^ntuj^e to the Citv. It^vasji dis- 
 ad\'antage ^that tlie City should pay (or exchange so long as it ■ 
 was against Canada, \vhich it has lieen for piany yjors ; it \v«is nn 
 advanfai^e to have the DelienliirVs inihe I/mdon Market at u ' 
 0ood rate ; it was a, decided advanlnge' tliat a siiikiiija: fund shonid 
 lie created, not perhaps in ihrs'^Miiiiancp, but generally ; but by the 
 law as it stood a singling fund must iiavi^ been provided of 5 pi^r , 
 cent,bnt in this case it. was arranged that ;|8inki'ng fund of ^cit*, '' 
 e -nt only shcnid lie provided, t*nd tliereiiy it was not i^ disadvairti^ije 
 tn the particular case ; it was also u disadvantage bocanso the Ciiy / / 
 Would probably bejiiveqnired to j^rovide a ?iniiiS fund also foir 
 the Stock in Ihd Gtielph Uoad, wltich was not at first . t hungh 
 
 •niTcea^ary. 
 
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 Th^iT hod l»ron nrpotintioiiswitli Mr. Uiiluiijaln.tit llir ilcfl.OoO 
 
 •Iwili iTVvuMfsty^ii. his WWvr. I licnrd from Mi. Hours fhiil iliore 
 hud U'eiiu ufm.iiu'kMi lifiwron Mr. Iii<|..iit, lmuM'U,iii»il larlit-^ in 
 
 ■ Enj;ian«t, ri-lutiii«: to a loan of iluO.OW. in cmisoluliiie ilie City 
 
 de-ht/ TluTP \v-ji-5 n j.roju)suI (r..in CiUii »t (;..iiij»:iny in Londoii 
 
 li^forp Mt. Ilidonrs IttM'jf lo itdvinicf iluvX'Ou.Oou.Jurn comniissiun 
 
 ]\ v£l jH-r Cfht. 1 (liiiikMr, Uidont o.V.niniit.i.MJf.l this to Ihe 
 
 FuioMtH' Omujint.'o. This \yi.s, I ilii;jk,iiiilir' 8|'ri»i': jpiM Imps two 
 
 jnuiiiiliJ* iMt.rf Mr.. r»i(li iil\s Itfh r ul ilu- 2f)iii ul S»|.ien(nir. Tlicy 
 tvoiihMmvo lii'ki'u tlu! Dchoiidiros at 1»:ir, chargiiiiJLil, c»»mmwKivia 
 
 joi. .1-1^7 "cent ; Mr. IJowos JH^^cTiW tiiDrs'slnleil tliil-ing the [froviciiis " '' 
 18 nii»nfh$ 1h it City PiIh dIim. s wiro inirriisitjuliy i>s viihiulile, or, &' 
 miTesJulhun Provhicjal Dihcii»»rt s.an.lil llial lact were kitjowu in 
 EiijiUjud they woi(lrrr(JHi|H«ni(l ftar if nut more. I tliink lie said 
 he had wnrt.n,toEiJiiti.shC.tj.ii}%ls uii the suLjcct ; 1 iliiukhesaid 
 
 j'itul received luviuiiahlo rt'|ifi«s. 
 
 Mr. Bou'r.siliiJ not lay invfiTc the Pfniiheo Cou^miVlec i he offer 
 he rt'Cfeive*! fruin the Coiilrirr..r.siosfJI their D-hc-ntrires, nor »'ny 
 vflvr ; nor dui he ineniiitii tliiil Ik- hai! i^reivi-iln h'lter rrt»ni tliem j 
 he. nieiijionetl ilmt tht- IVIi. liiiir. s \\<re iii the niaikcl,! think in 
 the preseiiee of invmlK-rs ••! ihi' Fmatn'e C nmnil < <• in their room* 
 
 /und snoseMitl the iirr>|'ii(l y of the (Jiiy Cfiik'avou iii!» to make u 
 ({ivoimil.le I'lirelinsJO ol tjiciii ; ho sngiiuslt d no method of doing 
 this, exoept perhn|s, I ihink he inity liuve siijiimsled Ihat the 
 Banks. Wonlil ii<hance ilie money (lir the jmrjKse; it Was not. 
 thotl«!rlit'',tr.u*.lical»lo by tjie niciiiliers vvjio heard it. This was 
 before hiiNinei^s coinmenced. or-a('ur if was^over. 'i'liere was no 
 meeting C.I jlc'j I. to eonsuliT lhi» iiiatkr, aml.it wus never Ibrniully' 
 
 -hrouuhl before the' tiTomniitNi'., • . ' 
 
 ■ ,"'. ' ■" A.--^*- ■ ■r"-^v/'::,'V. .*■ -::■::' - 
 
 I think thef nomniillpe hitd nothinij to do.with iM*«iiiiii»» Vhe lu^Jt 
 £7,000 DelNMiiiires. It istlKV .Miiyor's ilufy f,'» issue Oi-lieiihires 
 mdesjisonie eo,ndition is utuielx-il (o ifi*' is'<ifj"iifr. i tliink thesunio 
 condiMons were v.U *atliu-iri<f, Ui llie A7.0,»0''as l,o tiie ollKTiji, : The 
 issue of the £7,000 >fsj 1 tlujilt, in co^^>(ql!elK•eo^ tjie arrange-, 
 nient in p\irs;miWr Vf" 4hich the By-linv (if .the iSih nif IVtober 
 j; p:»sscd ; liiid the I'inajice Ct-iK'iiitft^e onlorcd itinrissirtiiff, it would 
 m the Minntc Bcok. Ill 
 
 f«ir 'ti 
 
 ippearea i 
 leir issuing. 
 
 do m^t recolleel any order 
 
 I: 
 
 
 /1 
 
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 ■-Si 
 
 
 ,*' Croa(»-J?,rffm/n('if.~\Vl)eiT it Was coHSiderc'tl tlint a Smkinc Fund 
 W'OS iJotrcquirt'Uforaiiy sii)cU iuany lluilttup.lhero. wiis.I U'lii'Ve, 
 J10 sul«cri|>tiii»iii iimU'r tUHisiiloriJtruii c',\4U'|»t itie (iiifl|)h UuiUvMX. 
 TKere «.vji* u S|wTif»l .Ct"t. (or live ciftul' X'2a,eOv),iiiKl il whscitir* 
 M(l«>^r!f(t lliul u Siiikiiig FimhI wi^s lU'l ntjiiiri'd hy it. An opiuioii 
 •hurl W^n eX|irpssctl iliut u Sinking ImiiuI- was ni'cessiiry \k\\v\\ ilie 
 liy-liivv ({,f 28il» J.iine \Viisiiiiro(.lniH'il,l.t'canse ilie Sjm-it.iI Act \va»< 
 ovi'r-ri*l<l«MJ by llie Gt'iierul Act.on tlip pafsing ol lliis By-luw, 
 TJiere was no in(JiiiMic«iifrxeili'il Uy Ihe Mayor, The qnostion as 
 tt%ihe ciians;o for Uie ^i(l anJ 1;oan to iln' iHifchasir ol S »K'k, ivus 
 discMi.sseit yn its rnerils^ in the Qunncil. Miflii've ih« Contnu'tors 
 >Mert? very anxi(Ai[s,'(o secjiiei llM^'DflMriiUin's, notwiihslmid- 
 in^the qncslion as la Iheir h'liahty. I nmlfrNtoinl Ironi Iho 
 Solicituroi the Cuntraclofs, at thi> interview I have nM'nti«>i)«*d, ' 
 Ihit* jKir CunU Ik' got hir tlie DebtMitimsr -::Mf. .Morrisrm u-jis |Vre-— "- 
 sen! at ihisinl^erview : m»lliing wjts }\jJi(last«i I hiviiMended, purchase 
 ol iron, inakinjrHhe Del#Mltir»'.'s, nntWrilM^ eircunislanees, worth 
 |Hir, to liiu iK'st <^ iny'lrmilhrliuii. The ^<'tifr niarkeU S. I 
 received f'roniMr. lierl^jr, iFie l'r«'>itlfnt op 'lie Ct>ni(tiiny. oii_i2Srh 
 Jinie, mntlhal eveiMiiji lltu l'>y-lii\v wns Siissfd^ J woiiltl^nol havtj 
 fonMiihil ip the iiO^i.uOO Nm li%l rw'»wn tflai i| ai'us for the 
 lient lit ot'^Ies>>irs. liivvts nhil it>m-lc& ithl^ui.nljMjo iK'JIt'r arriiii<>e^ 
 ^jT^etitM'oiild liiivtsheen iianle lor \htvl\jrtn^'l« Ciiiise disen dilidile ta 
 tiiel^nnnce Connnitti-e ai:d I h|vjHfti^^i>0 , us ii. matter tif pidilio ' 
 nioriih'y. J dun"! ihuik \h J,^v^ hiiyvVi«; pnreliiisrti the JJelM'U- 
 . Inns at 20 per cent. yb^l•o»>|^^,V^^ hi 
 
 City. 1 thiiikVconiparati\'Hv''rtieCMV ^ ,, . . .. -, . ...„ 
 
 rrjown t'f £103,000. I think a w*<rh;pi"!Krio\HM^ >i'r the circum'! 
 • stances vvoiJlJhliveeiHdthal The^'iiy to niuke al^ 
 I d»H»vt think they ciinlil have suld- the 10^ 
 
 cttHJinission t*n I he ca.pital, irrespective urahy^cuiiiuiissiuii i|i theb 
 inleri^lwhiclVujusl also hii^'e Wen puidi- ^ j^^, '"■"'^i!,v , >:-i;i 
 
 
 Bi»ok i'l the inedlitigs Atf tliii pi ii^jTob^ '<^r)[rii it te^. Xliec itihitite 
 linidpr dale 21st-Jiihe, 18^2^^ if|« t)jy.lr;jrtiit\vriti03^ 
 me 08 Chairman., i0;eiyJim«^^^ 
 
 ■.i: 
 
 
80 
 
 •»^- 
 
 , jn my lianil\vrifit>|?,nnd »Ji?neit by me as^ Chairman ; and all the 
 
 . ' ' ' MiiMiirs I linvtr ii^'i)iii»ii(Ml r('|>rpspnt correctly what pnssed ul the 
 ^'. .,^^t?'Vtfral nicftmps t(i uhii-hihey rolutej they are read over by 'ilie 
 •^#'>','^l« the ntc'clitighi'f »rc ilu'y uie signed. 
 
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 .-■'■■ ^■■ 
 
 By Afr. Owtjnvr..—\ know it wrts menlioiied', and I think by Mr. 
 
 ; Uj^onf, ihiit .1:60.000 woiilil hi? udvuiiced by (ilyn and ComfHiny 
 
 ' OS I have inentiuiuul. iHliitik it wus nut an ofler to dispose of th« 
 
 , Dehenliires fur )i cuimniiwii'ii of one jK«r cent. 1 unV satisfied it 
 
 ; was a direct ofllr by Hi«'n) on behalf o( other parlies to purchase 
 
 i- the IK'licntlires. Tiio- 1 j)or eonti coininissioa to Glyn <fe Company 
 
 y 4VMS to he tl Hi only deliiclion from the principal. At that time* the 
 
 Corporation had not power legally to issue Debentures to carry this 
 
 offer int<> effect. They wrrc taking steps at the time to obtain a loan. 
 
 The offt^r was not .considered so favorable" as cduld be oblaincd, and 
 
 no steps wore taken in consequonoo ofit. The £.50,000 loan, whichwas 
 rtVle afterward.% \v.n»,,I think, mgre tiivorable thati Ijiis offer : the 
 iirst proposal wa- to offcot a loan of £50,000, and it was afterwards 
 increase-*] t;>°i.'lOO,OuO: Mr. Ili.Iout cojniniuiloated, I'think, to the 
 Finuliee Cumiijiitoe vvrbMlIy l)of->re lie wrote this letter, that a l6an 
 couldbe erjeclvd at par f.»r £.tK),OGO or £00,000. I recollect verbsd' 
 neg'»i.iiUio"ns before the letter irturk^l T of-^vhidi that letter was thdv 
 result. I think tilt' M;iy<tr had ncgoti-itions witli Mr. Ridoiit, and it 
 was UMdor.«tood that a loan of £()0;G0O could be effected at par. 
 How^ the i'GO,0 p cnine to be reduced to £50,000 I don't know: 
 this must have bc'Oiv hefore ' tke act The loan actually made is 
 better than liie otter of Glyn tfe Company S(t far as the £50,000 is 
 concerned: as to the remainder it is dis-idvantaereous only as dic- 
 ' lating lo.';ns to the City wh-;it ihey Inight otherwise have avoided ; I 
 'xneiiu as to th? oecasioa of a Sinking Fund: the result is that instead 
 -of p 'ying 5 per cent., wliich would rake too much for the £50,000. 
 the City p:iyh 2 per cent.,'whiLh is. sufficient for the whole £100,000. 
 I retaiji the <Ji»inion I cxprc.-i.-5ed before the Committee as to 'the 
 teduetion of the Sinking Fu^|d fur 5 per cent, to 2 per cent : gettmg 
 the Deb<.'ntui*-> upon the Luntlon market is a great' advantage ; it has 
 rai.sed tli > credit of the Ciiy Debentures and les-'^ened the discount 
 upon them. 1 il.iiik the\regular payment of interest in London will 
 eventually make the Ci\y Debenture!. equal to Provincial Debentures j 
 «Bd it would have had the ttame eQect upon the'' loan of £50,000 if 
 
 
 
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 :■■■■ 81 "•'■■■■'-..■, K- ^> . 
 i' ' ■■ - ' ' " -■ . ' 
 
 it haJ been made. I think tliU result iit inor^ liUily, to ensUe from the 
 iiitroduction of n largo than afm.ill quiin'-ity of Dobenture*, if th«.^. 
 City, shouhl obtain power, and »honUl in fiwt eff-jct a loan at 
 par in' Iviglanfl, bo as to redeem nil the outstandirij; liebenturesr -I 
 think this result, more likely to "full ow. In tlns,\i«\v lh«) loan of 
 £100,000. nii.nrhtl)i!un advantugoto the City; the rale of exchange i« 
 Hometimert in t'lvor of thisi Province, 1 thfnk there i.» siii eipial pror' 
 babihtyof» exchange Wng in favour of the I'rovir.eii when the«* 
 Debentures become payjlblo. 1 think the probability is that the. 
 .average for 20 years would be agfjfinst this country. 1 sboul^ 
 object to th,o arrangement on tliis ground if tlu^re were nota correV- 
 pontlsng^id vantage in getting our Debentures upon the l-on Jin maricQt. . 
 1 think the loan of £lOO,(K)0 has contribuUd t» this result. Deben- " 
 (ures being payable in liondon is likely to make tlvem have better 
 credit than if they^^-w^ payablb liere* The rale-pjyrfra ^cann^t^ 
 h'asonably jjbft'eCt^ tl»e Debentures U»ir0 piiyajjle in Engh»nJ. tTr 
 beliiJJ«^1li«^C:oi.triid»?»M o in question fpr sale iij • 
 
 [•oronto, a4)out the, time theV wcrs purchased by. Mi-.^KaweA.. 1 did 
 not know it at tlie time. The Miiyor stated they were iMcmarlcct 
 when he meutioned it in the Finuuof Committee room that the€ity 
 might, perhaps, ihake a favourable urrangenient for purchasing them. 
 'JIk; ii'iembers, I think, wlK>,heard it, decided at once that it was out^ 
 of the queslion for \he City to purcaasw^s own D^bontnrei at a dis- 
 c.mnl, and I think tlic City would jioth :vy« thought of sucha thi^gv 
 My impression was, until I knew the evidence of Messrs. Shedrd and 
 Beard, tfiat they or one of thein, were pi«sent. The cxpresfeion used 
 was, that " the Cily codld' not shave its own Bebentufes." Several 
 members of the Finance Cmttmittee were prese/it, The meetingof the 
 21st -was held to cdnaider W>m'«uhicatian firftm the Northern Rail- 
 y/ay Cora|>any. The substanfeAof what is |ontailfte^ in the minute 
 of this date; was feported to the Cbu^l : it ^als approved of by them. . 
 The C(Jntractor8 would have been en£itted^£25,00() gift aa, soon as 
 , work to the amount of JE 100,000 had beei{,ddne,^d a certificate to 
 tliat effect furnished. The first delay wa^ occasioned^by some diffi- 
 culty about the Engineer's certificate— thife- certificate of the Govern- 
 ment Et»gineer being required. ^ At ftie meeting of 2nd July the 
 Committee approved, under th'' ' circumstances app^,aring from the 
 Minute, of tJie £lO,Oo6' -being issued. Th>pT^position as, t<>' tho, 
 
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 • jC14,000 fell to the aroun.l. It hwl proUaUy Ujen (»|>ok«-« of 3 or 4 
 da>'« Wfore. The Contractors had reanon to exi>ecl the X2S,000 gi(l tio 
 
 'rtte" ns the requisiie nmoimt of Work wa« done, wluitever was (tone w . 
 mifthe' JE35,00 » lojin. It wawonierctl on th«' 30ih July by tl^ic Comnili- 
 thHtilO,OOaD..l.ent»r(» in addiiion lo th« il 1 5,0()U A»>i*fly ii»»n«a 
 mnU be iMiie I on the ContracU»ra transfen lug £24,630 St wk. The 
 niMnite of lOiJi Otober iwoti the »ul»j»>ct of Mr. Ui.lout'rt lotterinjlj^l ; 
 i% When in my evidcice bef>re tl^ Connnittec I said iho BinaHVe 
 femntitteeancr CirtiiH'il con!-idero<l the arrjutig^-mont b.ijllciHl, 1 refer- 
 rodto'thearranKe:nenl» relative to the £100,000 loan ^ li a ).ecuniary 
 ' Kense, I »till ronKider the arrangement bent'fioial. - It was opf)oRed . 
 bythre* or four i>er:*onii. li never caine to a vote Iwinjj given by the 
 liiyor : he miy have voted in Con|n>ittee. I think'that dnring the 
 term of office of the Mayor, the City, in a pecuniary ftensc, lyii« been 
 benefittetl by the ttnanoial arfaus^ment qf the M«»yor. With ih^ 
 exceptionof the Sinking Fund, he ha» taken tronUe on various occa- 
 sions to in.ike arrnnireinonts with tlie Banki forthb benefit of the City, 
 i retain tUe QpuiioH e.\i>ce.«6l by mo bofi»re the C.nntmttee, staged at . 
 
 • page 46 of lUM)k inaiked y.eTCtfept as to the Sinking Fnijd, ajifd on - 
 ^Re ground of public morality, in reference to this imn'»»ction. The 
 
 f reHlraintii l*^rfter to in that (ipinitMi^luKl relation to tin* Mnnioipility 
 incurring general debtw \sithont pwividin^r Siiiki:ig F«ind«., 1 w'Hi ^ 
 aware that a Sinking Fund had been Ciitiblished vvilh resp»vt to this 
 loan at llmt <inii^, t^nd »h« knowledge of the fact \l id not operate tQ 
 
 ' tlie prejudice of die Mayor, in my opinion. My ehujige of o]>inioQ 
 Avitli respect to the Mayor, 1% not |olely attribut ible tirj^'ouMdorations' 
 of public morality. I entii-e^^ls^PFO'e of t je efitabliHliment of a 
 Sinking Fund, X t hink < a b^e» i^^tigeTnent coiHd have been made 
 if a Sinking Fund hmJ not, l^ii\reqijire<l. I don't know how City 
 Debeiitures c^ji \)Q sold on?^beUer terms than at par. I think there 
 was uo occasion to issue these Debentures, and the City ought to havo 
 
 : had the benefit, of a Sinking Fund at 2 per cent.<)ntheothet£i50j,00a» •'' 
 Whatlobiec? to, was the introduction of tlie £50,poO Debe:rture», 
 held by the Contractors, iiito' the Act. I dofi't thipk the benefit of 
 
 "■ getting £iOO,Oo6 instead of £50,000 upon Be Lojndpn inarket, sufli- 
 pient to counterba.lanc«9 this disadvantage. . ^ ■ . ' 
 
 Re-ExaMined.'^'^\\<itL,\ ^Ti\^i^^^ Finance - 
 
 Committefr I was'oot aware" whjitth«Jransnetii6n in^qM<>^tion really 
 
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 - W«i% nor WM I 80 Aw«ro until llie Mnyor ^rtve Ins eviaenoo in l&^ 
 Court. iJntil hq oir«rtMl to inoution the eirounwtnncen, h» I ln»v«S ^iiett. 
 tloiieiU I wjw liiii intimate friend. From tbnt time I luul my HU».pi- 
 ' ffionn. Itnentioned toMJverul inilivitlunl member* of the Council, 
 thongli not to the Council, what he said. I m»d votlier mem- 
 lior« of th.'(%.unoil have taken trouble M well as tli^ Mayor, hh 
 
 " much «)r \wr\in\M more, to improve the financial condition »>f the City 
 The M.iyor had more w«ii(ht tluiu aiiy other utemher of the Council 
 before these transaction* cnmo t.i iV'hl. lie advocated the row.lntion* 
 and Hy-liw8 relative to the N.^rthern Rtulroa^l ; ho »ui.iK>i^^ed thei^ 
 
 actively. .■ ■■■:-: ^ ■ ■.,- " ■ ■■■■^ A ■ . ^ 
 
 .•.'■; •■■■''" .■■■■ ;■ ■; .■■"-■' ■■■■■ .V ' \' 
 
 Per Cttr.— All T have fitated respecting Mr. llidout, I leariWd ttm\ 
 
 Rtatemeuls madcin the Finance Committee, and, I tliiuk, by Mr^IJowes. 
 
 I cannot .»ay' p^wltiveW that the propoKitioa of Glyu and t\)fUpHny 
 
 WH» for any fixinl f»um, but think it had reference to tlw i:50,Q00 of 
 
 £60,003 loaii, wlilch It Was de-ired to efieet. I tliink, upon h«armj? 
 
 . ^vliat Mr. Ridout hiw stated indtis cvidoncb, that some niomhs before 
 
 the receipt of Mr. UiiloHiV letter respecting the .£!Oa,GO J loan, thei'e , 
 : wa«a pro,K)9ition from (Myuaud Compart)' to take 4:50,000 or £00,000 
 loan at par, deducting only a conimisalon of I percent. The offer 
 \ appears to be asearly as Aprih The propo>Uum % the change froi^it 
 ' i;00,000 gift and TiW.n to £5(k000 Stock, eame, I thnik, betore the 
 • Finance CommiVte^, and was ^prpved 1>y them before it wa« Jaid 
 ' before the Council. I tliink' it W brought before the Comnuttee by 
 *^ Mr. Bowes. I think the Cohimi^tce merely discusi^d it alid required 
 n writte'n protMlsaj,; I don't tijihktherewiw any formal cortimunication 
 - ' to the (iontracUir., but having heard from Mr. Courtw right 4b ^tluy^ 
 . Contractor* were anxious for it; I,cGmmunicai«i.l this to Homp of tlw 
 • • Comjuitik I Avas notin*tract^;nor any other person ttvat I know 
 ^ tiJi ti comnuuiicate with th^Cmitractx)!-^ m» the Hul^ect. Tiie Cm- ■ 
 niSttte discussed it merely on the . proposition of the Mayor. ItVas 
 , cufsideraWv di^cusse;! : there wj^s ii large m;.jonty in favour of it i.i / 
 ;, the 0ourtt;ii. It was. coijsidered as a purchase of Stock at less than / 
 ' ' 80 cenivpn the dollar. Tlwt i« more (idvaiitageous because the City 
 ' was relief from 'the loan pf £85,000;: on this view it was general^ 
 aiVproved i^^ U.e Comjnittee ; and this view finally prevailed m^tbe 
 '" X;,Hmi:il. 'rhearningemcnt made with, the C*)ntractors Was to t^e 
 
 ■ £30,0(>0^Sto*. lliid wehad>mds Vto-nii^^ g'^*" ',*%"» 
 
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 £'23,000 oiu»li ill lien of £.50,000 lM.oiitur»i». The .»bj.Htof llio City 
 yum to HHHiut thfl HHilr(.wl, ami it »Ii<l lua think of .Irj.miHtinjr U»« 
 8toclc. Iftlit! Oily liiwl lui.l flin.U it would Imvi' bocu odnsi.lmHli 
 «1iBcrc«lital)lo for Ukj City to Imvo given X40,OjO for the i'60,000 
 DtibonturiM, • 
 
 , ntj Mr. Ovnjnne.-^lhe Miniiten «.f tli«> 2nr.l M»\ 28tli June n-pro- 
 Mint correctly what |»»a»e»l nt llm nKt*tiii|yCH to which llioy rtfhilft. I 
 think there in np winnto of pro^'PtlinifH hclore thi' Conunittw rdativn' 
 V» the chungrt of the XOO.OOO tjitl amlloan, to £:,0,0(K} ^it^H-k. TIi« 
 City woultl not »f!l its RaUroml Htotk at 50 p<«r c«'nt. tlisconnt. 
 
 "-. 
 
 ($ignetl> 
 
 SAMl'EL TllOMrsOX. 
 
 Thomas C^Itiw6CT/^Mjiw<\re^ 
 
 . , Since my foriucr ox«n>ination f have found a letter fnnn Mr. Minckfli 
 
 ; ' which refers to an otter ttoin pprH(7ti«Ji London iiirpfor»Mic»» 
 
 . ' to a loan to tht^ City. Tl^*' l'^*^ is'^atwl 2Sth^ S'ptonihcr, 
 
 ; 185-2 ; the letter now pnxhrc*^ I i-jsfeit tptt«^r. I had nocomniunica- 
 
 j iion on the rtubjoct of the lo.iii of ;jny kind whatever wiili Mr^JIItjuks 
 
 J or with any person iniliii^hehiiir^iTcvroi** to this letter. 
 
 Cm*#-AVnw<w«/.— Xo piro|»<»*itiMi waR fvor mnde'by the Bank to 
 the oftVctthiitlliyn, Halifax »^ Co. would qcjc-tiate City Petjcntntf^ 
 at par upon a c.>nmiis«ion of 1 per cwt. At flie hi»tJiMOc of tlw 
 
 ' Mayor or wane other pci-son on b«>half of the City, I adilrcfwed ' a 
 private note to t J!yn as to the- negotiation of CUy l>pl>fTitiiires in Lon- 
 don, I think, in the fall of 1851, . mil received a very diWonrasfinir 
 ftiiBwer; ho much so that I thiiik I did not commmiicate itto-theCiXiy 
 1 never received authority to luake such a piopositioi* asf p si^^OHted^ 
 and never did to the City Coinuil or any person connect^l with it, or 
 V\ anv one whatever. 1T<^ theicft.re innst be mistaken n\>t^n that point. 
 • )l could not have befn the fa>e tluit the Bmik was ivqr<i?sted to neffo. 
 
 . »iaioi»loan tor £.50,0,)0onIy,;iitst,eiKl of £101,000. I.have no recol- 
 "'. Iwtion of anything of the lii^^d. Jltel^tt^r of'tlie 2ftth Seplembet^, 
 
 . 18o2i w.uv the first ott'T of tli^Bank oi> tl|e sul>je.;t to the best, of niV 
 FewUection. I was not . authorized to make tin ofJVr of £.j0,000 t«> 
 the Citv mukr the Ooii>«blidated Loan Act. I understood that it wji?v 
 doHbtftirwhr>tlft>r the City would choose; loavAil itself of t]io provisions. 
 
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 Okorok V. rtiDOUT, nwom for the PlttinliffH, snitii : - • . 
 
 In 1861, 1 wHd nn Alderman of \\i^ City nnd ChHirninh of tlio 
 finnnce Conniiittpp. Tlio Minute of tbe 28th April, l85l, in in my 
 hiilHlwritinjf aii<I siffnc«l by me a« iMmlnnan, nn.l w ii ot»rr.vtnU»tc- 
 mont to the Ixnt of my belief of whuY CKvnrrcl at tlio niMiiitr to 
 t\'hlcFltrHatcH: the persons there uieijtione.l jw pn^sent, were prtwnt, 
 1 Min.juliredof oftlieHritiili Ameriini Insunmte ConHMiny : theCity 
 WUH ih.leJdjnl to tlio»T| in i'Ij),(jOl): the < 'ompjiny wii« not nKxious fur 
 |»H\m.'hl; the City n^<l« a i.ro|H)*itioii tor piyitij; the »leljt h'tV.re W, 
 ieeame drie. Tip l'oi»ij>;iwy, aftyr H«Minvcorr«*|>on(lHnco, lU-termiiu^'l' 
 to H«re|.t the pn»|»o»»aI, and rwe^e payn»eiU-frt»ni time to tiwe, an they 
 could rcinvoj th«5 n^diey* I hwve nor»M*»u to think the Company 
 would hiive r/pqflirrl the Mi<»n«'y Vtf -re It 1»e*jjUne^n6', noi that tluy 
 would wirth H jilienr, JW th«y were aiVrjvly «wiired. | 
 
 - 6VoM-Krommff^—T)icC(>nii)nny lent , the iimrtey for Mie wike.of 
 nn invcfttnient. I hiave only erplrtwetl im <»I)inion, not n nuUtei^ 
 «if fact. The Company, besides I »ebentur|HSRd a MoHj;Hj,^e <jn City 
 property. The City when the/ made thJPl>p>sitM>n, 1 tak« ii t^r 
 granted winhwl U» ff»;t rid of the Mort^e; otherwise tliey wohI.» 
 nr)t have mwie the jrt-opoKid. At the time of the meeting of tho( 
 Kinauce Committee on the 2^h April, 1851, the intention was t«» 
 IsHUC new tlehentnr^, the iMftrest to Ik- fi/iyahio in Kn.ifland, and try 
 negotiate theiii in ICngliMwI. And the Mi^-or wiw to asce^tuinfroiiV 
 the Banks how it could t>e8t lie dowe. #e. did not sut-ei^d At that 
 time in eftecting a loan as projiwed. At this time Citry l>ebentu'rci> 
 w'ere;r think, at 1 per <Tnt. per annwm discount. 
 
 He-Examined.— I am Governor of tln^ BrlTuth iAn?erirH Insurance 
 Company. The Comr/any took a secowl Mortgage on «he property 
 niorti^jged to Mr/ Cawthra, contrary lo their, u»u^l imictice, feeling 
 perfectly, set-n re. I don't think tire Mo#tg;ige''embraceil thif wh..|ti!f 
 (.'ity property. Had it been tWmigjMhtttry to make the prilicipal a» 
 velVaa the- interest payable in KngHJj^Kibiiik the Corp<£iti«)n wvuM 
 ha^Gcotisenteu to It. 
 
 liif Dr. Connor.— \ was men)l>ef of 
 the £ 1 00,000 loan passed. Mr. Bou^n ^i ^ 
 iurtructions from my eonstituentt* relative tS'' 
 
 IHlPttl 
 
 cnt when the Act for 
 rge of it. I had no 
 
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 tilatigo prii'tt. Tlil-i wuh un<ler)«t«>o<l iit the liinu 
 [ciitfuct, Hill I Wiis jwrt uC the «H>n(iid«ration of 
 
 t)tf)OMiti(mt tttkeh viva wk« in opett Cuttrt, nit tVtUHfmlitif the 1 1 ih 
 n day of January, A.D. 1854, »»i « c*rl»in rantt ptndiwi in tk« 
 
 miUI CoHrt of Chanetry, wkerrin Davltf Piittrmm and nthfr» ar$ 
 Plaintiff>i, and John O. fivwc» and the City «/ Turuhio, tfrtf 
 Df/tndanlt. .. •., p . 
 
 \^ On the part of the Dcfendnnt li«»w«». y 
 
 MaTo.M CooKtWKioHT ■worn for tho DefoMtlaut Bqww, with J 
 
 iBm one of the firm of Storpy A C^tnpiny, thp nf fJietor* for the 
 NoriWi'm Uonil. Sroroy A Company wore V* jj.-t the i'-iS.OOJ jfift a* 
 II bonus boyon 
 ^ of entflritig In 
 taking it. 
 
 ■V ■ .•«««. 
 
 tht £Sft,060 lii^ \tn% In lien of »o mtoli pri*'at« jmbscfiption.- 
 • i'he Company wcro to pet Xoa.OJO private subscription, and only gVt 
 £16,000, an<l tho £3^.000 Lun ww' t> co:n) in^o the pliico of the 
 foAidue^ I wan he^ on the 28th June 1802. I wiw fro.picntly hero 
 •fexcept after that, and a short time beforo, but during the progrean of 
 (he work t have been here more than any other uieuiber of th« firfn. 
 Mr, Luwinond was here Rometiniev^yhen I was not. 
 
 I was anxious for the p.-iasing of the By-law of the 28ih of June. 
 ' ,1 pressed its pa»inj( because we Itad arranged with Mr. Roberts* of 
 New York for all our iron, and had underfaken to place a portion of 
 the debentures in blsjiands. It was vefy important t« uc to get the 
 T>eV)ent«re« at that time. The iron \v»>« then boincr «lelivere<L; and we 
 got it nt-fK pretty low ratp.' It ln«l rl^en at tluit !ini'>."\A>^ ,got it at 
 H very h^ rate. We paid 3?) tlolUrs at Quobet% and .it was worth 
 there, I think, HO dollarss We got i,00d tons hero at 37 dolbr*. It 
 \vas an object to us not to forfi-it «^ur Contract. Scveril fliips had, I 
 believe, arri veil, or were on their way with it*. For those reasons we wore 
 anxious to get the nabantiu-e'i, and to ga the liv-law passed. Wo 
 had a legal adviser here from New York. •• 
 
 We were aware that the legality of the 1\vda w was qu?stioned, biit 
 we were willing to run the risk, and take the Debentures. Our Jegal 
 adviser was also agent for JVIr. Roberts. - 1 remember writing a letter 
 
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 to Mr. BowM, JiiIinI, I UlUne, 3^llli|S^^^V>W previotmiy 
 
 ffii(leavour«d to m\\ tho l)i*l>«iitur«« ^Mt' ]^^^^^HBSL ^Vu IiikI 
 
 aiithoriMMt Mr. UuImtIm toMtll h |M)rt^on i(^R|||^^Bi^ HA ot>iit« on 
 
 Ike (lulUr. llu IiimI not Hiict'«>f>«l«Ml. Wo ■'^'vl^HP^' '*' ({«'<-p»>' f^' 
 
 tli«*ni. . Never m\u\ im>, tliitt. I know of. H.'fo^rritln>f i\\« letter we 
 
 liiul hml R ciMjvernMiiun with Mr. Ikjwm two or three <layrt Iwfore, Ho 
 
 ^ro|)OAe(l to |iiirch!«M> th« I)t'h«'nt»iro« ut HO ceiitu on the tlijIUr. VV« 
 
 ^tulil him wo thought he couW linye thcni } nnd he w»nte<.i n wntten 
 
 |)r(»|>oHition, unr] in cnriHequenco, tHu lettt-r wtM written. Tli!>« whh tho 
 
 firnt |»rop(»Kilion th«t wa» nja«lo lM>twe«'n ih Hn<l the M«y<»r. I nni 
 
 . not »«nie wheilier we uceepfe<l hit «»flV'r Ht iMice, or miiti onty, wo 
 
 thon|{ht he ooiiKI hiive them. We thun^Vht lliiit wtu um good nn utfer 
 
 - !,» we coulJ gt-t It wiw no fuvuur to !S|r. Uuwofc — — ...".:. '.— 
 
 We i»ftferre<l iM»Hing tho pebenttiron h«r» nfter the |e^»lity of the 
 By-lHW WMH qneHljonccl. We Hhoiihl h:ivo hoUI them tt> nny other 
 . jicnion oh tlie Ranio term% as reatlily a-* to Mr, Uowoa. I »np|>0!<«'(l it 
 wouhl l>u difficult to negociato im) large a nato in thin ('ity. Mr, 
 J^owoH dill not attempt to make une of thuir Kiippmed illeg tlily , to 
 get tliem eheaper. 1 eoiisidiTOi.1 the matter eh ^ed after writing iho 
 letter, uikI seeing Mr. Uuwiw, and miderstauding Iron) hini tlmtit wan 
 oliiHed. I itever hUp|Kwt'd thai Mr. PO'Vesi kept l»aok the DelMsnturei", \\ 
 *nllh<)Ugh we ti. ought they were t>h>w in i^Huing th«i)», W« vi'ore ' v. 
 • anxiouM to get the l>el*entureff. hr. Hentty attendeil to tite g<-ttin<| 
 them to be issued.. The understanding wns that u.4 isaued, they 
 «were to be dijtosited In the \hix\\i pf Upper Canada. • •■'' 
 
 I was not here when the purchase of Stock wa« nubHlitutod for tho 
 gift and loan. In itself I did not consider this «n ndvantageons 
 ^ arrangement for UiefContractdrn^ but the reveri*e, but nece-wtyeomjiel- 
 Icd us to accede to it. I would not have consented to it on any* 
 account, had we not be^n' much pressed, for funds. I ani aware that 
 there"\vaR a diffitlulty between the Company and the City, and between 
 the JLwo we were "kept out of the D.ebehtures. We took, the Com* 
 patjy'rt l>onds in lieu of the J635,000 Debentures which were not theri^ 
 so available, We wcfuld have cancelled the gift and Aold the Stock 
 for Kess than par, payable in Debentiires, I consider thi» arrangement 
 *f ory advantageoirObr die City. .^;". 
 
 . (CyMJ-^piKtwiW. - -AVe had agreed to depoeit the Debentures wit 
 
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 Mr. Rfjberts, to a certain amount. I|e wiis to sail ani apply the pro' 
 ^eetls to acoounti lie was to sell them when he could. I think he 
 intendeii to sell them in London, but am not sure. We had limited 
 him to 85 cents <mi the dollar, lie was not to sell 1 hem tor less. — 
 This arrangemen-t was made in the winter previous.' Wo were entitled 
 to £24,00 j' Debentures on the 16th May, I supposed the Council 
 Jae^ifated on account of the supposed illegality of issuing them ; I heard 
 jio other rea^oii : as regartls the £ 10,000 of tliv. gift, or as to the £ 1 4,030 
 they could not agree uj) ^n the security — it w^s part of llie losin. We 
 |)iessed the issuing of the I Jebentyres. Isjjoke to the Gbmpany, and 
 also Mr, UoW'es about it. I don't recollect hearing of any difficulty 
 before the 16th of May. I think I mentioned tQ^ Mr. Bowes that we 
 intended to place the iJicltevtures with Mr. Roberts, T only recollect 
 one conversation about selling to any other person in Toronto than to 
 Mr. Bowes. Wo talkedyAowever, about the value of the Debentures 
 several times. I recollect talking vkith Mr. Bo\ves generally about the 
 Road and the l>ebenturej«, but I cannoi eav that we talke«l of the value of 
 the Debentures before the sale to liiiv. We did not suppose \Ve could 
 !«ell the whole an»ount here, and thought we could sell them better in 
 Londtin or New York, and that was the reason U'e-did not srjij^ly to 
 parties he»e. We could put an end to the arrangement with Ji^r, 
 lloberts as to the sale of the Debentures,,. had wc pleased., ^ 
 
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 We were to pnr for the iron as it was delivered, whether th« De- 
 Mbenhircs vi^n^ sold or not. It was to be delivered as rapidlv as 
 jJO^siblo. It was arranged between Mr. Bowes and ourselv.eg that 
 the Debentures should be placed ih the Bank. We did not see Mr» 
 itowes after -the conversation until! wrote the letter, that I recollect. 
 J understood that Mr. Bowes bought the Debentures, but whether for 
 liimself or another] did no(? know, nor did I know it until the facts were 
 disclosed in this Court. I think we told him tliat we were in the habit 
 .of making such transactions confidential. This w^s at the time of the 
 .conversation. I said this because I thought it was new business to 
 » Mr. Bowes, and he would not understand it otherwise. It was 
 . iuuterial to us that this matter should not be divulged. That was the 
 
 reason I made the remark. . 
 
 ^ - .■ ■ ■ 
 
 — We expected to get the Debentures after the By-law was passed as 
 soon as we were entitled to them^ We directed the Chamberlain to 
 .deposit them as issued ii« the Bur'i We sold the whole .-650,000 on 
 
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 89 
 
 tlie name terms, althotiglL my letter montioiieJ only JC2 f,000. TIi# 
 residue of the Debentures was tivlked. *liout at the orijjinal conver- 
 sation, but no arrangement was made tvith respect to them. 1 did 
 not 8n^i>6ct Mr. Bowes )o 6e the cause of the delay in issuing the 
 the Debentures — the Chief dfelay had occurred before this tiuie. W^ 
 had disposed of £0,000 Debentures otherwise, and did not know 
 whether we could let Mr. Bowes have thetn, 1 cannot' tell at what 
 rate we sold them. We paid for right' of way with them. AVe re- 
 purchased £50,000 of the £60,000 at 80 cents on the dollar. We 
 only got £40,000 in money for the £50^900 Debentures. 
 
 ' .■ ' ■ K '-■■, ■ ■ ' ■■;'■■ ■ ■'. - 
 
 We would have given up tlie gift and loan and sold the Stock for 
 £40,000money totheCity, as well as to Mr. BoWes. had itboen pn» 
 posed to us at the same time. In fact we would have made the same 
 arra(Pgement with anybody so that w6 got the same amount of money- 
 We were not ceriain of getting 85 cents iin the dollar, |i^id I think 
 we should have sold for 80 cents eveu^had the Byda^v. been 
 unquestionably legal. I don't know whether we could have got 85 
 cents. I think Debentures were selling for 80 cenU then, m the City. 
 We got so much less for our work in conse([ueuce of the £25,000 gift 
 Being relinquished. ^ 
 
 Re-Examined. — Captain Strachan offered us for a small amount oiP 
 Deber1tuix« 75 cents on the dollar, provided we gave him the option 
 of an additional amount of 80 cents ^at a future time. . We had not 
 made up our minds on the 28th of June to sell tjie whole of the ' 
 Det)eiitures, considering ourselves pledged to Mr. Roberts. I had no 
 , idea tiiat Mr. Bowes washed to purchase, before my cpnversation with 
 him, . vj- '■-■■ ■■"" ■ * ' f ■ •'[: 
 
 I was not aware that the first.£8,000 was raised upon the credit of 
 Bow^ & Hall. % thinliMr. Bowes knew that w« had to get" back the 
 JE6,000 which we had sold. I think we had told him that^ome of them 
 were beyond our control. I did not krcSw that any other person was 
 concerned witli Mr. Bowes. The suggestion as to keeping the matter 
 secret caine from me, and was dictated by regard for our own interest 
 I did not apply to the Council to hasten the Debenture^, and I 
 don't know that the Company did. 
 
 By Mr. MowokU—l de^fed the sale to Mr. ^Bowe3 to be con8idere4 
 
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 eonfidontial, Injcause we had not sold nil the Pehcnture?', and it niight^' 
 prejudice the sale of the rest I did not come here long before the - 
 28th June, at that time— only a few days before. For sometime 
 previous none of the 6rm hud been liere. j Previously I had been 
 here, and also Mr. Lawmond. During the spring I was here part 
 of the time, also Mr. Lawmond. part. We were willing to run tho 
 risk of the illegality of the bye-law, as we were advised by our legal 
 advisor, and /llso My. Boulton ; and it was thought tho bye law was 
 not ille^ytjlun<|^ at all cvcotSi the Debentures woifld be legalized. 
 \Vc felt sure also that the city would not ref»udiato them. Wo 
 repurchased the £5,(^00 Debentures we had sold, because Mr. Bowes 
 wanted to get the w|K»le £50,000. 
 
 (Sighed) 
 
 M. CODliTRIGHT. 
 
 ■ -]^- 
 
 '"Chariks Dai-y. called by Defendant Bowes : 
 
 -. 1 am Ob^rk of tho C'ny flouncil, and have been so since the begin- 
 ning of 1835. It is part of hiVduty to attend all meetings of the: 
 Council and take Miiintes of 'their ])r(M'ee<ling9, The Minutes taken 
 by me are a correct re»'onl of such proceedings. Upon a motion beiiig 
 moved and seconded, and its being entered that the motion was 
 carried or ordered, it import.*, that the motion was carried without^ a 
 division ijging called for; although members may have expressed 
 differences of opinion. No entry is niade of a motion being carried 
 unaniraonsly, unless it is expressed by all the members ))resent rising, 
 in the afjiirmative on 4t' motion. The" books before me contain the 
 Minutes of Council taken by me in the Council at the time^ii and 
 since 1 850, down to 6th June, 1 853^ At the request of tine Soliciton* 
 for the £|pfei)dant, I made extr^ctd from the Minutes of all proceedings 
 in the Council relating to the gitt and loan by the Council to the 
 
 JUiilway Company, and the taking of £50,U00 St6ck in lieu thereof. 
 The|^!q^r pow produced to vfie iparl^ed'A. 1 contains such e.\tracLs ; 
 th^l^r^^true copies front the entries in tlie Minute Boo^k. I find in the 
 Ulinillte'^ook no other entries in relation to the.se matters, except on 
 the 11th June, 1852, and 13th Septerhfiier of the same year. It 
 contains h true copy of the pefition set out. The petition was prepare4 
 in the office of the City Council's Soilicitor, Mr. Ganlble. I forwarded 
 the petition to Mr. Boulton, the senior member of th» city, in 
 
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 accordanco with the order uf the Cuuucil ; Hiid al.so comiiiuiiicntQd 
 with the other ineipber, Mr. liidout. The Hill for cuusolidiiting thn 
 city dt'ht, Wild niso prepared by Mr. (Jitriible. The lubiion of 23rd 
 Atipufit, as to. the p<'tition (or the hiw to AUtliori^o th« issue pf 
 £100,000 nfilJi^-ntvjr*'**, was carrietl without any division bring called 
 for. I do not rec<'5lteyt whftlicr tlior*.' was any discussion ni>ot» it. If 
 Wr, I3o^^Ee8 had be»'ii direct fd l>y the Council to take any steps in | 
 relation to the wtle of the Ofbeiiturc, there woitid have been a / 
 resolution to that eii'ect ; or if he had been directed to act for the city/j* 
 in any niatier. Xl'^'ic •" no i*ii<-'l> resolution in relation to the Deben. 
 
 been such resolutions, 
 
 tures in Oouncil. •^^»^^other matters in which he hiis acted there have \^ 
 
 Cross- BxnviJ tied. —Whi-n the Council is in Conunitlee of the 
 Whole the yeas and nays are never recorded. When in Couneli they 
 
 , are recorded when desired by two mombei-s. '1 h« Gninjj|il did not 
 in?et on the 9th June, 1852. 1 have no copy of Mr. amble's Draft 
 ©yjll^Cpnsolidation of City l)ebt IJill, It was sent direct to Mr. 
 
 •JHHjp:^ . 'I fiijd no Minute of any application by the Hallway Coni- 
 pftH^for the payment of the first nfttalment of the £25,000 gjifl 
 
 ,rt)eforfe the 11 th June, ISo*.' That 1s fhejOnly reason 1 have for 
 savins? that they made no such application betorethat date. I d(j not 
 know a» to applic^itioiis to the Finance l^ommi^ec. I do not attend 
 its ineetin;.^. The Mayor was a l>i'rector of the Northern Railway '* 
 Company for the City from October, 1851, to February or March/ 
 1852. Mr. Cameron was appointed as such Director on Otii March, 
 1802, and on 7th June in'sanie year Mr. Armstrong was appointed. 
 No appointment has been maile. since until tlu^ recent appointraent of 
 Mr, Capreol. 1 understand the Company questioned the right of the 
 City Coimcil to appc»int a Director after the chaiigefrom the gift and 
 loan to the taking of Stock. 'I have with me and pioduee the opin-- 
 ions referred to in the Minutes in regard to the validity of the By-law, 
 They are marked Ar4"«nd A. 3 : they are all I am aware of having 
 been taken : they were received before the By-law was passed ; I 
 think they were mentioned in debate, but not formally laid before the 
 Council. Tlie paper marked A. 4 is the Report first adopted by t.Ke 
 Select Committed appointed \>y the Council to enquil^i respecting the 
 Debentures now in question: it is in the' hal(cl^yj■Uing^Qf Alderman 
 Denisop. It is hot the Ueport which was presented to toe Gounoil 
 
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92 
 
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 by that CotojjnUteo : another was wlopteil and preBcnted. A lettaf" 
 was received by the ConimittiK' f^om the Mayor before the adoption 
 of t^ie above-mentioned Report, and the note of receipt of that pre- 
 sented to the Council. I was present at tJie meetings of the Cohimit- 
 iefi. No docunient or evidence other tlian the letter was re(vived by 
 the Conimitleo between the adoption of the first and second Reports, 
 the ofler of Messrs. Crawford «fc Hagarty to take certain Debenture^ 
 ,^s not in my possession. Tha Chamberlain is the proper officer to 
 have that doctiment. ^ 
 
 Re-Emmiiml.—\ think that Mr. Cameron /lid not act as a Director 
 ftir tho City on the Northern Kailway. The Chjimberlain signs 
 chetjues for the City nioney, not the Mayor. ' ? 
 
 (Signed) 
 
 CHARLES DALY, 
 
 ■ * • ■ . ■ . . * '^ ' - - 
 
 Charles Bekczt,, called for Def^dant Bbwes<: 
 
 I have been, connected with the Northern Railroad since its com- 
 tnencement, as a Director of the Company. I became Chairman, 
 then Vice-President, and then President of the Company. I succeede<i 
 Mr. Walter as President and Mr. Morrison succeeded me. 1 w^ 
 President in the summer of 1852. I took an active part in the nego- 
 tiations between the 'Company and the City Council. The £25,000 
 gift was incluiled and fl>rine«l J* part of the tender of the Contractors. 
 As to the loan, ^le City were U> give the Debentures and receive the 
 Company's Boirtls.-'-The City wished to have the first 1 fen on the 
 road by way of security for the loan. This the Comimny objected to 
 «» it mi<*ht prevent their getting the Covernncient Gua''*nt*« 
 as that would be grant<?d only on the Government h?tvin^ the 
 first lien. There was a great deal of discussion between the Coi»J>any 
 and the Council. Some of the Council, arv] I thinly piong thenif 
 Alderman Thompson, appeared to be inclined to press the lien, but T 
 cahnotspeak positively, 1 had daijj^ interviews with the Contractors 
 on the subject, and have been present at discussions between the Con- 
 tractors and members of tlie'Council. Fronj what passed,, I thought 
 the Contractors might be willing to give Op their bonus.%fti take 
 City Debentufes, giving Stock for them. 1 snggfested this to Alder- 
 nian Thompson. He appeared not to understand wy suggestion, (y 
 not U> eutertiiin it. I then made the same suggestiuu to the Maj ot 
 
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 itho fliouj^ht it n good pUn and requcated me to commumcate witli 
 the Contractors. 1 met Mr. Lawmund and Mr. Orton. After some 
 ai«cu»8ion tl.ey agreed to give £50,OOQ of Stock and receive £50 000 
 City DclH-nturos an.l to relinquish the gift of £25,000 and the loan 
 of £^5,000. I was anxious to make this arrangemeftt for th<i sake 
 of the Companr. as without it thoy could not carry out their agree- 
 ment with the r%>ntractors on account of ll^diflkuHy in eflfectintftthe 
 louu 1 ihouglit it a most advantageous SWangement for the City, ^ 
 and it certainly was so. I believe the assent of the Contractors wftji 
 communicatod ium.ediately t.. the Mayor, and proposed to the Coun- 
 cil shortly afterwards. The Mayor rtever spoke as if he had attthortly 
 'to make such arrangement himself, but he spoke of recomipendmgiit 
 to thft CuuncM. 1 (lid not wish to appear in the matter, and jequest^ 
 the Mayor not to mention my name m cnnection with it. Mr. 
 CourtriKht expressed himself dissatisfied with the arrangement, ^nd 
 .poke of itas a loss to the (^ontractors of £12.000. I did not expect 
 that so favourable an arrangement for the City eould b6 made, knd 
 ^•as surprised Umt the Contractors whom I saw on the subject en ered 
 into it so readily. The Govermnent required that Mr. Keeferl the 
 Engineer, .hould examine the road before giving the Guarantee./ The 
 Council required that the road should be exammed by an Enkneer , 
 unconnected with the road. That was one of the re^vsons aligned 
 f!r the dl^' in the iss.eof the Debentures. I thinl^Mr Keener had 
 U latutjexamined the road, and I thought that -«^-^^^^ 
 of the Company's Stock Mi. in the market at tins t.me^ ^.f; r;^"'' 
 •it Ind then any marketable value. We had agreed w.th/the Con- 
 t a ors Lt -^50,000 of the Company's Bonis should be fen to the 
 cTn ra t>^^^ prov ded that private Stock be taken to Oj^t amount. 
 
 ^T^ was taken, and we applied for Ithe ^^ ^^ 
 ^^"v ' .._ ,, .>o*\r.w;opt. with the Company 
 
 to 201 City Debentures for the amount, a. »o Urehea^ed lh»t ».th- 
 luf MveUht not get the Govemment Gu.Lt.e. A" -'I ~"-» 
 
 -;i:-;^=„>.w».^,.^ew^^^ 
 
 held by the Contractors was to be -given m 
 Debentures, not Stockheldby the Company. 
 
 not tl.ink that the Contractors 
 Stock a t a discount, besides r 
 
 exchaftige for the Cit/ 
 
 Th/ContracJtors would 
 
 I do 
 
 
 :1 
 
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 give tl\g 
 exchange for flj^ 
 
 ■ r^iS ar-?AA*^ 
 
.i. 
 
 f 
 
 »;y 
 
 i: 
 
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 0«T>entiirw. Tliey thoujjhl they wt-ro making it greut micrillw .•»< f 
 
 was. 
 
 •t 
 
 Cross- Examinfid.—l thought tlic City was to have u security on 
 the road besides the Coiuimny's Moiub, Imt not the first security. I, 
 believe the chi»< if not.tho only diffl ulty, was tho City expeotiljg to 
 have the first ehargo, Tho Company i,r<)t tho l;t'l,cnturo,s tor the - 
 Contractors as tkst as thoy coiill ij.'t tli.Mii issn>.' i. 1 tmvo no recM- 
 It'ction of tlio City Ix-iiig t-wr willintj to take n second lien on the 
 road ; if thoy wore it Jias comjilotely esnipcd my recollection. I fcvl 
 quite sure thiM- at one time the City re.|uirt?d a Hr>»t lien, and tlmt it ' 
 was at that tiiiio that I Ii.mI. all t\w troiibh? and anxiety al>ottt the 
 B4»nds. The diflieiilty about the l.-iTMlity of issuing L)el)enture8 Tor 
 the llail4(Ky occurred alHMit the same time. Alderman Armstrong 
 appeared willing to forego the first lien and the Mayor said he wonid 
 throw no obstacle hi the way. Tliese dirtieulties were about the Ikj^h 
 Debentures. rft^ . 
 
 ■ . ■ ■ ■ ^ 
 
 ^Me-Examined.—\ny application tf. the City for the issue of Deben- 
 tures would be in writing, acconipniiied by our Engineer's Ccrtiticato 
 ^s to the amount of work done. Upon hearing read tlio minute of 
 Council of the 11th June, ISo'J. and being told that the entry of 
 application by the Council therein made is 'the first entry of siich 
 application, I say [ bblievc that that application was the first made ■ 
 by the Company to AheCoundl on that subject. 
 
 (Signed). CIIA'RLES I3ERCZY. 
 
 ■ - . • / 
 Joseph Ccrran MoniitRo.v, sworn for tho Defendant Bowes, saith : 
 
 I am President of the Xorthorn Uoad, an<l l»ecam«*«i) in December, 
 18.'52. I am Member of. Parti{tm.Mit for Niitgara, and took my seat 
 29Lh September, 1852. I hav(/\^.ii a Director of the Northern 
 Road from the fiist, and have been N'ico-Pre'^ident. [ took an Jictive 
 pairt in the negotiations between the City and Company and Con- J-- 
 tractors regarding the gift and loan. The Crwnpany had undertaken 
 to procure £35,000 Debentures by way of loan tor the Contractore. 
 There wajj a difficulty as to the loan. The Corporation required a 
 niorlgage ^ecurity. I opposed this. They first required alien on the 
 road; they then rcT^iired a mor-jfaj-. on its bein^ expl;M ned that 
 
 
the n«n woul.l Uitorf«rc witli tli« Gov«»rnment lien. I oppo**d lK>th 
 plHiw as prejudicial to the intor(»st« of the CoinpHuy. I liud inler- 
 views with wvoral incmbert of the/'ounoil on the subject, particuiiirly 
 Mr. Thompson, Chairman of the Finance Committee, and who took 
 kn active part in the matter for the City. I exphiined to tliftm the 
 * f 1 * - ren^>n of my opposition. The diffiailty was how the City were tx> 
 i^leem the Delhcntun-s, and 1 sunrjrested that the Bonds to Ixj giveo 
 " by the Compaf^y shojldbe payable in 10 years, which would enable 
 
 (he City "^ to redeem tlieir own Dpbentures, paynlde in 20 years. I 
 lid not succde^.ju carrying this sugjfosti' in into ctfcct. The Con- 
 tractors" weie aware of this. We on several oc<!asions advised U»ci4 
 |odo the best they could. They said thoy could n6t go on unless ' 
 . they got some ilnoney.* Thoy said they could not raise money on the 
 Conjpany's IJo.nds, at all events until some part of tl>« road was finish- 
 '6d. I was afraid tlie road would be stopped. They required money 
 At this time to meet the purchase of iron. I was aware of the con - 
 
 » tract they had n]ad« for iron, and «»f the rise in price of iron, and of / 
 
 the importance of their getting money to nmiplcie it. th<«y had // 
 entered intQ (joLtracts fof £90,000 worth of iron. It was purchased ' 
 ht £4 10s. steHing per ton, the invoice price. It hail risen to £ih 
 sterhng per toil. J*art of the iron was seized jit Quebec as being 
 entered to/i^ too Iowa price, viz., £4 10s. The Contractors cojild have 
 realized a large profit by rebelling the iron, and the Company wa$ 
 apprehensive that they would do thin, and that the road wOHld^jfail;, 
 •A special meeting of the Hoard was called to ascertain if the Company 
 Svoidd ac<jept the proposed arrangement for converting the gift and 
 loan into a purchase of Stock. 1 did not approve of tins arrange- 
 ment I thought it very advantageous to the City, but not so advan. 
 ,tageoU8 to the Company as if the City had taken £50,000 Stock of 
 the Corop»ny. I wfts not present at the meeting. I thought the " 
 City was purchasing the Stock at 50 per cent, discount, I thought 
 "ithardiippn the Contractors, and that the City were taking advan- 
 
 ,,i tageof them. The Contractors gave £50,000 Stock for £25,00q 
 Debentures in fact. Mr. Berczy took credit for this arrangement, and 
 it released the Company from their fear about the road, and the Board 
 ■was well pleased with it. I had repeated communications with Mr, 
 Lawmapd about the sale of the Debentures. He wanted rne to get 
 them payt^ble in New York. They did not expect to sell them here 
 ' at all. — Mr. Lawmand i se v c ral tim es pr e s s ed ro^ to sel l t h e P e b ea ture » 
 
 
 \^^ij^'C ui^f&i^i^ 
 
I-; i 
 
 I! 
 
 for tk«m. I a<lvii«cl him to go aiiU •«« Mr. CAwtlira, and told liiin 
 that I had heard he wa« purchuHiri|| Del>oiitur«8 ut 20 por cent, dis' 
 count. At the time the contract for building the roud avim ontored 
 
 ., Jnto, Debentures were set dowp w worth 20 per cent, discount. The 
 Contriiotori) calculated them at that rate an ca*(li. Mr. Luwmand 
 
 ' offeried them to mo at that rate. lIeotft>re<l mo 5 per cent, toaiego- 
 tiate them, and I was to Ml them at 20 per cent. di>)Count. I <le- 
 .c|ined t(;^:Jipienere in the matter. I don't think I could hav)« Hold tliom 
 lit 25 per cent, discount here. I mean the whole am>unt. I 
 ;took an active part at the Hoard in managing the affnirs of the Cora- 
 paiiy. I frequently saw Nfr. L:iwm:md. I don^l remember any 
 ..complaints from the Contractors that the Dolwjnturos were delayed. 
 J thought the City orijgnnllynvas to have no security for the £35,000 
 ,excej)t the Bonds of the Company. I was consulted about the By- 
 law/of 28th June, and asked to give an opinion about it. Mr. 
 Thompoon, Chainhan of the Finance Committee, attended our Board 
 a Ahort time before the passing of the By-law, I was also consulted 
 «l>out it by a professional gentKunan from Now York, actiivg for Mr^^/ 
 Roberts and Mr. Court w right. I was of opinion, and so stated, that 
 tlie By-law would be valid without publication, and without 
 providing a Sinking Fund. The gentleman from New York had 
 looked over the Acts and brought them to my house. He was of 
 the same 0|iinion as myself. PilblicHtion was the principal point 
 in question. Something was S{iid about getting an Act of Purlia- 
 JOjent to legalize the Debentures. I said I hud no doubt a law 
 would be passed to legalize the Debentures if necessary. I thought 
 so. I Was aware that the County of SiniCoo were about to apply 
 to get such an Act. I intended to assist in getting it. The Com- 
 pany was anxious then to gel the Debentures for the Contractors. 
 The Company was anxious to get the By-law passed. I commu- 
 nicated with Mr. Boulton on the subject. He took an active part 
 >n the Council in favour of the Company. I was present on one 
 joccasion when Mr. Boulton stated in the Council that the legisla- 
 ture would certainly pass an Act to legalize the Debentures if 
 necessary, and if the Company desired it that hie would endeavour 
 to get such an Act passed. I intended to get one Act to legalize 
 
 yi\\e Simcoe Debentures, to amend their Charter, and if necessary 
 to legalize these^ity Debentures. I spoke also to Mr. Dempsey 
 jpa the subject, and probably many other membeis of the Council^ 
 
 > 
 
 
 

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 Th#» Conlnietora wrr« nnxiunt to gel lliw lly-lnw [Mmrd : Ihrjr wprU 
 rtloKl HiixioiiR; my •iixiHy wun entirely on llieir «cr«HiW, M^ 
 LiiwmiuKl rf pfofedly shkI lie wmild r*iihf r have XftOO ihrn thuri 
 Xi.O^Odix inoiilhn HOerwartls. I wtk% innlrnclfd aOrruardt l6 
 dmw n Uill for nil ih« |)iir|K)9es I have. mriMionod.' I did •<>, and.. 
 t.M.k iht* Dritft Hill Willi ni«t to Qm(>In>c. Mr. D«iilU>n introduced 
 tli« Kilt 'I luul dntwn, iiitd the Hoiis^. Tina Bill did not cuniuin 
 tiif! iut«'h(lfd pruvi!<iuii for Ifftuliziii^ the City DvWhtiircN. Th¥ 
 (MJy Cuh^ti'lidiiiioi) Ilill^ W)«H iittriNhiced on th« aame dny. The 
 Dill I tooh lu QiielK*c cuntuinrd the inrre handing. I ofierwardx 
 drew the Bill in extenln, und I hud then abandonrd the intentiiil 
 of inN(>rt?nga ptOfjilion ndiitina to the City Pel»entnrra, because a 
 IN-tilioh hnd heen presented, and a topafate Bill was tu lie InUin 
 diiced to tuke them up; The Petition was presented to the Honaa 
 hy Mr. Ii\Miltun on liti St'liteiulier ; read Sod or 9rd. I t,hiitk ( waa 
 iiHver ill the niiglitest degree influeiiGed by Mr, BoWvs hi aihy of 
 tliewi prucecdiiigi. lie never 8|iuke lii me On the Kuiiject ihul I 
 am aware of. 1 reineinher the secortd relating of ihe City OunsiH 
 lidntiun Bill. It wuj taken out of its ofdrr^ on 4th Octoii«*f. Thai 
 reason was we hud u discii&iion that eve;tiuK about r(*f)ea(ing th6' 
 5th and 6(h cluuSe» of the Consolidulioti Kuilutiy Bill. Thrsfe' 
 cluuses required certu in conditions prtflbedeiil to the Jiitr«Nluct 
 of Ruilwuy BilliitUnd the8|>euker having decided that nu B 
 Bill could hfl iiitrtKlticed, it was decidled (hut a Bill shonli 
 IMSsed hi«8iily tu ex|)ediie several Bills. Mi. Bouiton fc^ked nie MK 
 this occusiun to »|eak to several Low^r Cidiiuda ttitHHUi'ti tu gif 
 die City Ouiiso|i«lution Bil; taken out <>f its order. I did mi, mttit 
 Mr. B<nilion mowd the 8ec>»nd ^eudinji;; of the Bill, and it iwsivtf 
 tiiruu^h Cummiti^, receiv^l^ 8uine»iiieiidii)eni>, uiid was ordered 
 to he reud' next (Jay. ii was ruud on the 6ih. Mr. Boultoii 
 ^as anxious to {01 tjnb Royal ussenl at once given to it. No sncli 
 Bill could have U^ri pa.ssed' at that tune wiihuut containing a 
 provision fura Srukifig Fund. Therciwas nu difficulty iu getting 
 siich a Bill through the Legislature, th^ Coc|ioration having pre- 
 Keiiletl a Petition for it.. There was nu (^i vision n| ion it. There 
 were similar Bills pushed ahuut the same time from other pladMl 
 Mr. Bowes never sfiuke to me on the subjecl that I f ecoliect. JM« 
 wasat Quebec at this time. Mr. Uiacks never a|ioke (a medA 
 the itiibject. 1^ don't thigjt any application relaiing to the gi /t af 
 
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 the £2.'>,000 would hare pasAed tlirongh lh« Board, but an i«p|>luui.( 
 
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 tinn r^ln'int to the 1.«n -f Tl^OOa. |l wouM li«v#. M^ nrr^i'^ry 
 lo ,.ru.lMrr ll.r KMgHiH«^'Nl%T.rlic,ii.-. Mr. .N yim tir.ili.- Ki.MM..'..r. 
 wa« wiiM-^tJ I" h.ivc l.rtu« Hpi*""'*-** •? "•" t •wi.trttciur».: mul '« •* 
 ..rolmlil- ••»..« •hi' <ny r»-M"»«"«' " <'••'''«•-»« •'" " h'1"»»»'*' ''"«" 
 .•-..I. Mr.fmiili^rl.iml wj>H|.|K>i«il»-«l hiuI «.«*••• nil ll.-r.rliri.nU't 
 a uHMiiliH u.-rf Kiv.n l.y Act ..i VikfUumtnx u, Si.l»«-.iUr». lu i..li«» 
 J.,rk ih.ir .SiM-h. NVry l^w <h«l »'. I *** M». C'tt.Mi mi Torm.i.. 
 I.H CbriMiiiM. murnli.K. 'n.i.«u» «l.^ »'f*l .mi.« I U„r.l of .,..y 
 ♦lirtlfMlly nt^'ut lh« JLIO.OOO. I kiirw U fr.nii 111" l'l-CH«d» iL.-l 
 
 Cr,m-Kjramhud.-\ mtl S..lici«or ({^..i-fti1 ^.f TriH f r!.in...lH.n...l 
 »,„v,. In.^« im. nine- lH9t .lMn«. Mr. lliiH-hM .>• ihe |»ru.ci|«l niei-.U r 
 «t Ihr (lovi-riiiufiil. llm conOrriM.n *Hh llii* in«tt.r hni. Ih-o 
 the ii.il.rcl i4 MUich irtil.lic .liw-i.^-^iuii. I rtrnt l..,.riii..l ihut Jhr r.ty 
 r.'f|i.irfU t»i« l.«nn of Xa.'V.OOO io\U »rnrrd «iii thf l4...nJ. from Nfr. 
 O^iuWe.ulthe lime ul »l»o J...it,ri»iy'» •iwJii.JtJ «|1'«i.'«fia.. K.r purt 
 tff the Im»4 .-> 
 
 Mr. (;winl.l«' Milt mf m.fut iu'.lri.mt-i.t ••» f'H.k nf. H*- «.H* 
 Ss.licil..r lor il,« C...|..r«t,..n h...I^I.^ C..n.|«..y. H.' prr,Mrr<l lU 
 i„,.rM....'... ns S.l..-i...r to tl.r C r,^.r»tiihi. H |.r..vidra for •.. hr^l 
 M-..,.f..r^i.'«;-v.r.....-i.' U.-.. iM f.vour..» '!.«• City. It expriM^.I 
 .h„. I„t,l .I..H I «„« »..! ;.w>.r. .1. .1 tl.. (:.»> r.-.iHir..d « ..rr.ir..y 
 
 ,.»Vtl.^ R...d. I Iv.v.. i ...M .I.:.' I hud fit. .1 rrud 1U.. R*.f...l..ll..n 
 
 iT2rPf..n« o tfiv H.^- I.».i. -f i.a\o« wl..i-h req..ir#- ^.•iitify. t 
 •iMf .wit .ln.|f n..' Hv.l.WMtil,--is1n.>f .1.1...^. iior did f r»-nd rt 
 ««iurilv »i».-rtf«VK;.nv iuipfM-i'.' w. <»'"'.< ^m* not iivar.- thit 
 fhr Rv-I tw r"'*'"'-'' •"'•' -"'••'••V "■. »hn Uor.'l. I w«» i-wnf ,.t 
 >iif d.*-..5.^u.fM.I Mip Bv i.M ...th- (Uiy Cou.iril. td..n"t tecWPCt 
 • ..ythi.jr |*i!«''i.'7 ••" »hM» .-•.•:.-...ti r.duii*e toNrmrify ..n lh.f R-a.! 
 Tlwr.. »H!» no di»riK«i...,, 1 .hi.k. ..iH.ut HM-iirily <.n«il ih*" 2.. of 
 y.iiv. Tl.*. im|-r.^«i.i. ••„ t|,.. .i.h.«lH ..| »h- in.Mtd.^rs o{ ihf B.i.fd 
 o< fl.^ r..,M|»mv WI.K. »h;»» H. ruri'v 'votild ....« »-• nqtiir^d ».V •!•« 
 \iiy. Id",', k'...* fr....i vlMt iHUt.^'-y Vr..iH Ih- «i.n#"l«.»l 
 H^r .?*?>' l»'»<Tiltw"«« r^«M.ly»d -.•{•*.».. I l4>iv "" r-.-..l>«'tion -f 
 l^iiitr ,,.>>s'Mt u »»!. ili*^ Muyof esr-|.« ".i.-i- « .»», Mr. U n-zy. 1 
 h.v^ ..odot.M I have s,-.k.i. to hi.ii, h-U I J".'' reri.ri«.-t any |«.r. 
 
 
 
 ti>.«d,,r r..|vfrMrti.n. I th.Mipht the CiH|.n.ti..n h.«tilf fo iho 
 n*,lro,ul. • Tl.* r-- v\.^ ii^vvr any: d.ir^^MHy ;.h -nt th.i C23 » -.!». 
 
K 
 
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 ^^ 
 
 i»y 
 
 u|:|Hiii*'d il •iroit}(iy. I ulijecl^d lu lh«('uni|iuiiy'a {;^^M^t^f^^uty'\>ri^irt• 
 eiitiul ti'dirity (uany oilwr b<>iMt« th« (\iiii|iaiiy iinglit pivr ii|i«im 
 (uMiru liioiis. 1 lliiiik Ihr who|«> iNwrd Mtrf ol iIhn u|uitiuii. T\m 
 iitnrlKtt|{u tulijrct 10 the Guvernintiiit li<-u «<>« tilwayx n|)i4i« ii ol u« 
 H lir«l HfOiii-ity. My |tr0|KJS.il llut (li** ('hui|>m»i| i»litiul«l piv«« Inh>J<i 
 Ml IQ yfMfN WMM iiut HCiH'|)t«il, I l)tflii-Vf. J iU\nU it ^'ui> |ir«>fii«M-il* 
 
 i Ulli (Jllllf Mil*- I MIlKKi'Mlffi till- |0 yrur lk>l>«.l« (U M(. 'l'll«M'i<|iMLitl, 
 
 ttiut (irxli^l'ly itllifr iiiciiilvrN of thu CXainnr. 'i'liu coiitraol li< 
 iMJildiiig llir Hi.»i\, ulifti itiflMJittruciotit'witiiiitliddit'O^U-iituri't 
 Bi 20 p«r cfiit diwuiint. wkm inMdf. ( thiok. lu (li** t.dl xf 18.^U 
 fiini ImAI. 1 N<i)i|KWti' Mr. r^uwiUMiid upi'lK^d lu me fo imII Him 
 i)cb«Miiitres jiumt'diuM'ly ult«*r ih^ir tirti iMtiit* in .hiiiv ur .lUly 
 ' I8f>i2.' 1 MiiiMiHe it WtiN briWn* the 34Mi Jun-. U wmm during ilmt 
 •iiiiiMifr. Mr.t'iHir(rii(bljVirliH nut heri* tti»*n, 
 
 . Mr. fyiwrnund «<rtercd in« ih#» HrlH-ni'tofi Mud ^ iwrc^Mtif 
 ] uuiild Ncll ihf hi, I ihii^k. nt ur tibntii l^i^* mmv tini*^. t miii >«Mr« 
 • h«' coniiniMMUMi i-trrf^d 'o nie wns 5 p<*r r<>|if. I Nin'iMil i|Mit« 
 c^rtiiin Ibut I wnn uMlh«iriH«d to nvU mi 20 (•cr ooiit diicuuht rxirii 
 
 .-l|];^eoi)uiiii>«Min. J did 
 ^- here. My iiM|<r^s*io»i ih 
 
 nut think I riMild m>)I tht-m nn nny itrmt 
 
 .-... <.,,T ...,,..- .^ ^ not »ii*-roi\ 4iy liruriiig Ihut Mr. Kolterta 
 
 L ^' Wis voiniiii>>Miuti(d lo k<>II nt 8.^ cepti* on Ihr dnUiir. Mr. Coiirtrigl.t 
 ^ £«>ui[rluiaedirfqut;ti«ty ol Mr. Ijuw iiiniid** cituiriictM ftiid arrnnge- 
 
 ..>-. 
 
 'T*J 
 
 
 
 ■<f 
 
 
 Af"^ 
 
 file tits, 
 
 ^ 
 
 I wan eoMsulted ubi>nt the Ugality of the |<rop(i«rd Dy-lftw of th« 
 28-h of him, shortly before it was fMssed, Itho'ught I was eon* 
 suited as Counsel and nut mh Director or Vice President of the Clom* 
 puny, but i made no chnrTo... I did nut frivea written opinion,— 
 I don't recdleot whether the |MMntof the ainkin|E luiid was raised. 
 I dic| not jcnow that a iiinkingiund would not be provided. Parliament* 
 iiiet on thfi^lih of August 1852. I received instructions for'prepar* 
 ing or dratltlitj^ a Kill for the purposes Ibave nientionetl. and dr*w 
 th« hewling^ i^I have 4tcntioned. This include both the Simcoe 
 Vu1 Toronto D^benUires,' 1 received iny instructiW the same week 
 I went to Quebec. 1 think t rammed from Quefc without draw- 
 
 -H 
 
 ing the extended Bill, and while here I think I drew the Bill. ( 
 thiiik thin was Bonietiwe in October. . 
 
 
 •*■«*«■- 
 
'^mj^^'^'^ip^ifnm^isi^^^^i^ 
 
 *' 
 
 
 I '1. 
 
 ■J 
 
 i 
 
 i- 
 
 VI ■ -.■■ *. 
 
 ■ . ! 1 
 
 •fi 
 
 I !>fQ( the Bill M drawn, to Mr. Boulton, «t Quebec. IlookcharK* 
 of ihe BiW in the House. 1 drew the Bill here, 1 think alK,ut thr«« 
 weeks after I had given the headings to- Mr. Boulton, I was at 
 Quebec'abowt » week when I took down th^ headings. When 1 left 
 Quebec this tinie I had heard of the int^de^ introduciion of the City 
 Cohsolidatifln- Bill, I bad be#rd of the petition for the purpose. I 
 was watcl)jp« thb Bill I had prepared, and bj|d the provision ^ 
 about the Cjty Debentures not been introduced'iijto the Consolidation 
 Bill, I should have iijtrpduced it into this Bill. No one spoke to me 
 I bout not introducing this clauw into my Bill, but I omitte.4 the 
 clause when I drew ^he Bill., n ^ -^ v— ^ :. 
 
 TTie City Consolidation Bill |ia4 been passed. The popsolidalion 
 Railway Bill required ameiidmiBnt, apd 'the Governor General was 
 ^mihg down three days afte|rwar.(js toiisspnt to it,' and that wa the 
 reason Mr. Boiilion 8|K.k9 to me, as I. have mentioned, about the 
 City (^nsolidution Bill, in order that it might bo assented to at the 
 
 ' Mtih0tinie. 
 
 * My statements relative to the passing of this Bill, were taken 
 
 iVoi^^th« Journals tbi$ morning, otherwise I could ijot bavp 5tat«-cj 
 
 all of them -with 4(|inucb accuracy. 
 
 Be-Examvned.—l have no doubt that the Debentures we!;« offered 
 to me at 20 per ceqt discount, and my impresjsion wa^. liiat I was 
 to sell at that rule And reiceive my commission besides, of 5 per 
 
 cent. 
 
 :^^ 
 
 'J^ 
 
 It ,^ after the Debentures were offered to me at 20 per cent 
 discount that T was requektef) to dispose of them* and was' offered 
 a'eoiiiroisaion of 5 per cent. The Com|)any would not have 80I4 
 Stock at a discount at the time of |he con/ersion of the gift and' 
 loan to the purqhase of Stock. When I left Quebec the first time, 
 I came up to my eleclionv When | rpturned, I took my seaf 
 »nd ramained at Quebejts until the 6th of October, and then 
 caWa to' Toronto, and while here, drew up th« Bill 1 have mfn- 
 tioncd; 
 
 \By ifr. 4f<H<»«e.— The Company would gladly have taken 
 £SO,000 Debentures from the City for tl»e same 'amount of 
 
 (Signed) 
 
 JOS..C. MORR.ISQN, 
 
 r 
 
 ■ li 
 r 
 i 
 I 
 
'a .-^"^ J— ^^-v^^s • 
 
 ^ ;t*^^Ks^^i^ f 
 
 ■:■• ^ ■ ■"" ■■-lot 
 
 Gkokok tLATT, called by Deleudaul Bowe8,,»aith: 
 
 ' I was a member of the' City Council in 1852 and 1853. I wftg 
 present when n proposition was made lor taking ^50,000 Stcck m 
 lien of the gift of jE25,000 and Wan of £35,000.-11 supported tho 
 mnmirestionaly/Hs greatly advanlageons totlie City. 1 wasnol 
 influenced in the matter by the Mayor— in thai or any oiher nialter 
 1 havb never heard the n>easnre condemned oulot the Coundl I 
 was iniimute vi-itb the Mayor at the time. He did not press his 
 views MiHJUi me jn the matter either in or out of iho Conncil. 
 
 ^the Agent of the Contractors. Mr. D«; Grassi.sjjoke to niealwut 
 giliing the By-law of the 2Qlh of .Juno passed. He mfint ioned the 
 rise of -iron and the necessity for pa>ing Sub-Contractors, ns 
 n^asons for their taking the De bent u res, even though lhe« legality 
 might be doubtful. >^, 
 
 When the petition for a Bill to consolidate the debt was under 
 discussion, borrowing in Eoglai.d was spoken of. J thought they 
 could be negociated better there than in Canada, and ought to 
 stand Hi* well as (Jov^'rnmentDebenlurfS. 
 
 I do not rec'.llect that any one ni Council oppased the petition for 
 consolidMUne th- drbj: 1 believe the M»yur sp.ka jn Committee, 
 bnt l^-youd that I do not know Umt he interested himself put.rur. 
 laily. He took « great interest in Railroads. It was, always 
 understcK.d in the Coimcil that the £50,000 Debentures sheula Ihi 
 legalized. - ■- 
 
 I know James Cotton, and have known him a long time. 
 
 Cros>.Exrmined.—l am positive the Mayor never spoke to m« 
 in reference to the matters ofut^of which this suithas arisen, while 
 they were before thd Council. I have always »*en a friend and 
 wipiwrter ofMr.Bowes. The City has negociated Debenture, m 
 Canada since then of £100.00Q. I believe these are the only ones 
 payable in England. 
 
 i^..i^m^«^^Belay was caused in the iss^^^ of Debenture? 
 in con^quence of some members objecting that a certificate as^q 
 t ^ e work dpne should \>e by an Enfiineer not connected with th« 
 
 V" 
 
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 m 
 
I, ■ > 
 
 >t 
 
 '1^^^'P"^'*^'^'"* ^^.TftJ^Sl. 1 J-* 
 
 !r-»r^ ^ij'f ?'^^vwft»^«T^^i^ 1.w->y^M|^s«^,-'i!S^.^lB»ifr^rt iP'^?W^»^^^^^M^'-fP7?''TA'^f "1,'*,'*V''X^ 
 
 102 
 
 Coininny. Mr.^r^muur wak»|M>kf'nu(,aaaii American, nppuiuifil 
 ■by •iitt Cuiiiracturs, 
 
 Cro9s-Examined, — T was nut a m^mlMTof Ihe Finunri> Cominit4> 
 •tee ut the tjine upplicat kill uiis mil dt- for the issue of Dt-lienliirrg 
 and the utjuve ulijeciiuii mude in Coiiiicif. Thu niulttr sttNHl, 
 lOver ui.d uus brnii^ht ttii uguin. Jdunotknow how it wHii dist- 
 |iosi>d ul. Tho Council prdcreJ I lie iHsne of Dciientures n|Nin Miu 
 ike|)url uf the Fiiiuucu Cotuiniltue, i heiieve du Detbciitun a 
 Were iswiied exce|)t in that wuy/ 
 
 (Signed) 
 
 GEO. PLATT. 
 
 Charles EdWakd Uomaix, svrurn for the Def«*ndiirit Buwes, 
 •attiih:' 
 
 1 am an Aldfrnma ♦•leet of tli«« City. , I was eirrted as Coiin- 
 cilh»r in Janiiuiy, iS'ii: I h'lve H-rved in tjial p>»|B»ciiy 2 ycMrs. I 
 WHS present in the Ctuiicil on 2j8t Jnn«», IS.')?. 1 niov.d un 
 liiiirndiiieit on tli:«t orcjsion : thi- qui stiu)! iniiiie tip as to Uie pcu- 
 |«.8td Uy-Iavv juisseil un Jjah Jamuiy. uhd it was oljected that 
 the |iru|M«. tl nyrlaw wt.ijld be illeuu), ajid \ nioytd an uiueii. m Mit 
 that ii Nhoiild Ih^ r.jferred to ii SjtfCial Caauniltce to c«ir;si.U r i.f 
 thai qiic«iioii u»d re|Rnl lu Jh*^ <iexl in«'«*«i rg. , Aly Mm.ndiMenl 
 was li'sl. I Was o|.|iu8td to iju- gifloi i,25,000 and loan o( £35.000 
 One of tht: CiiHractor.i urs.'d ii|K.»n mt? Ihe desirulileut** of ilicir 
 geltiiig the OvJlieutare* on llie niil und loan, and Mr. DeGrassi 
 tneir Asent wished me to g*i tu the Conncil lu order that a 
 qn..rnni iniaht he secured/ I was un:|iogj that the Northern 
 lUwd slionid soon, hut h»d no «i|>|«>rlunityur taking un aclive 
 .liarlmproniulina it.^BHur« I *u8elecl«d a Councillor, there hud 
 »H.eii a goud dial of talk aiNiiil the impropriety of giving away 
 £25,000 and lending £3:>,0 JO, when tlie Corporation eonld asKist 
 Ihe r.wd as eflectiiully hy taking Stock. I heard many eiiissen* 
 express thin opinion, and Mieiird it expressed at a public meeting, 
 pnd it was advocated that it would havelieen better to have taken 
 even a Lrger aiujuntoJ .St.«k than make the sifi and loan. This 
 wa8 8aidi»^ir. I^wcV presence. It was mattir of complaint against 
 the former Corporation that tJiey had made such an arrangement as 
 hti jf.fi »iiJ loan. Ml. BurtcN .said yg ihj.s tM-caaiou that it waa Ui< 
 
 / 
 
■• ^ 'J 'jT '^y "* 
 
 ''/*5'^V»Jtf:«»--.;iw J'^fij^'ww's.t,^^ ---.-^-j J :r;"*jf'»<i ,-i«?fltaF,^«frif^7'-7T 
 
 10.1' 
 
 / 
 
 iwf i\rfAt\([mcnt t^at 4oy couM mike *k ttV»i ll«n«. Thi* wm •! » 
 Wjird meetings 1 tWquently urgetl on Sir. Bowe.-. the i»,>>pritty of 
 tlve change. 1 had M interest in the nmltei' except for tlie gcxl of. 
 the ( Hty. Mr. Bowes never atteniptano imhiV-me me an to my 
 v«»ieH ill th«i Council/ I don't know ihnt be ever auempteU U> intiu- 
 ence any oUiftr persohi I was tolerably ililimate wllh liini. 1 vote^I 
 f<.r the chii"^ft from the gift nnd loan lu the purehase of Stmk. I 
 c<if»sWMf*l it very ndvaiitagw.ns to the CitJ. 1 never heard auy b<»dy 
 oiijal (o ft j evfii th(> (Ii\i>ion in the Council, I thoujjfht, did not titrn 
 npoii the pioprivly of the change, btit np<»n other points. There w:i« 
 a fwliiig tliat Debentures should not W issuetl wxcepl oh tlic Certifi- 
 <!Hte» of diMntef(?stfcd Enginei-ra. Tiiere wah »oMie di.'SatisfHclion irt 
 the minds of some peoj>le .n to the r >ad, up »n litis and other points ^ 
 but as to the propriety of the purchase of Suk-I^, 1 lUink th«re wan 
 unHnimity. I thoUj^ht it advantagetiUM, for the City that the debt 
 nhould be foftsolidated mid ihe £100,000 raised^ I voted for it. I 
 fi-equentl),iilthe Council called U[»on the Mayor to say what progress 
 wa» made in obtaining the Joan in England. The ptoprieiy of bor* 
 «»!wing ni'iney hi England at a long ilate was freq'ienlly Ur^cd in and 
 out of Council as advHnt«geotf» (o the City, In ovrf«r to meet flio 
 lial»ilitie» of the City, instead </{' diMithaiglng th'ehi >(it "of the City 
 pro[»erty or by taxation. Much of the City pro|K^i:y Was tlien low 
 rented, and 1 thoiljjjht iiiat if a loan was (ffevted at a l<n»g date, tira 
 incr«ase<l rents miafht enable tlie Corporatioir to disdmrge the intere>t 
 on the loan. I thouglit also the loan in England at 20 years might 
 he renewed. 1 tvas opposed to a Sinking Ftind. My vjewra weio 
 popular with my conf'tinients. 1 iirged these views in and out of the 
 CnnaeR4 I think a "majority in th6 Council were with me on this 
 subject, I think a inajority of the Council would have been against 
 a Sinking Fund had it not been urged as necessary to get the law 
 passed. I think a m ij »rity of the Coimcil were in favour<of Ixirniw- 
 ing in England, and thought. I believe, that if the City Debentures 
 wf-re known in England, they would acquire credit tiiere, aniljtto 
 distouni on them li\re would b^ diminished— that it was de^irabo 
 tl.ev siionid become known in the Englinh market. I think it would 
 hj'.vt' ut-en ne^•e^8ary, under any ciictiirtdtan»*es, to ]Kiy a cnm^ssiorf 
 to » party itr England to negotinle the loan, and a|t>o for payment of 
 the interest. J should still have thought the loan in England desi- 
 .ibl>'. ' Nt M.i'i..n \v;t^ enU-U^tpd with th^-Ui'l I believe, ani Mr. 
 
 li 
 
 'M 
 
 i 
 
T^ 
 
 } 
 
 J 
 
 ■f !.■.!■ 
 
 Ridout reqiiesfed to co-opprato A*ith him in promoting ii In (K« rTuiHel''fflg, 
 S)f Assembly. I should have tlioUj^^lit Ui« oliauge from lli« gift and 
 ^oan to the purchase of Stock advuritag«ou><, whether the iSt<x'k wan" 
 laken from the Company or the Contractors, but L would rather have 
 had it from the (Jomp.iny than the Oontraclors, bfoause the object of 
 the C^^ waH to beueiit thu road, and it would have been more bene- 
 ficial to tlie road to take St/ick from the C'<»iripany; and al«o it wontd 
 Jifivc bc^i less doubtful , that the City in that «vi>.e would have been 
 entitled to a Director. I.doubt whether 1 knew at that time that the , 
 Stock was c.ming from the Contrjictora. 1 think some objection was 
 iimde in the Council to Mr. Koefer'a .staK.-mt'ut, that £lOo.OOOJuid 
 been laid out, because it was verbal and not in writing. 1 am not 
 siire, but I think the Ghairnian said in the Council, th.tt .Mr. Keefer 
 had made the statement to him. In June, 1852, J^ebentures were 
 Belling at 1 per cent, per annum discount : 4 know iIiih U> be the fact. 
 I remember, placaixls being put up in the City ; T think referring to 
 he .£10,000 matter, but am not ceruiiji. I took IHtle notice of chem 
 I think there was only one Sort of placard put up relating to Mr. 
 3owc8. , 1 Jrst saw this pUcard posted up, I think on the Saturdayr 
 iiigiUu before Christmas day. 1 8.»2, l»etwpfn U and 1^ o'clock at 
 light. I Hve in Itichmond Sireeu 2 or 3 doors from Churcli-strect. 
 1 wa* returning on this n?ght, h<.;n.> from a nipper, and as I saw the 
 placard being posted by some parties upon a wall a little south of the 
 jouse occupi.Hl by Mr. C>-„tan ml Mr. H,itchi;ison, f read th^ 
 olacard and found it to bethe one I hav^ alluded to, f lif-re weretwo 
 pereon* posting up the phwanls and a ihir,l wiiS looking on ; at least 
 ;ie stood sideways towards the otiier parties, apparent! v oh the look 
 •Hit, about 10 or 20 feet from the parties who w.?re posting up the 
 plitcards. I was walking arm in arm with a friend, and wished to .' 
 ,mss unobserved by the pirties f have mentioned. I thought, and 
 till think, that, the parties engitred in porting up the placards were 
 .Viessra. Newson aiid Anderson, Clork^ of Messrs. Cottort and Hutch- 
 nson respectively, and th? party on t!ie look our. I thought, was Mr. ' 
 Cotton. It was not a dark night, and I felt pri>ttv sure m to the ^ 
 ulentity of the parties. Mr. Cotton had ha Uom« business with mn 
 lunng that week. I had frequent interviMv. wiih him during that 
 week: and the Vlonday followin-j the S.lnrdav night on which the. m 
 !»l?tcards we.-e pnt up. being ,he \Io„^v b^fi^^e Christmas dav, as L • 
 thmk Isawhim in^is own offi.. ^V.n.n^as spoken of a^; can- 
 
 • a -«»*^ t&i, Sv 
 
 
 T 
 
*^"*S"^''^^f r 
 
 1 % 
 
 '■105 ..■■■•■; 
 
 jtJidntf for wwomI of ifif WHrdi* nt tljta iirin-, and w«n in f«cfr» 
 , •tNii<Jiiint«. 1 hive uu doul)t thai Coiuni wiw in Tot onto on t'hfl night 
 ihf piMcurdA wore put iij). 1 khw him Mjveral iiinet«,4;iiii:iiig (he w.-ek 
 (•vtunt UhristniiM. I 8»w Hevi;iul c«»j.i«s of th<f pT«c|»r(| in niy own 
 house. Mv friiMuJ whom I have nieiitionetl, on theHanie nighi pulled 
 down one ol tluj phioardH hihI l>roti<;ht it into my house. Ajy friend 
 LontMirrtr.! with nie in opinion iw u> Hie identity of the pernons an I 
 thin'k. 
 
 •• ".■ ^ \ . .. ' ■■ ■ ■. / -; •■■:■; . • V. 
 
 [Thij. wjift ol.jectej^jo by Mr. iMowat, and (he ol.jrvtion overruled 
 ami lh»' evitleiic*; receivtSJ de Ix-ne «•;»«•.] 
 
 I Crm-Exaninetl (as to the jnrts olyecteJ to wjtlibu: p:ejmlice.) 
 
 j My fiiend was Kd ward H:iw)<e, a lawyer rcMdent in Toronto. I 
 |don'l reinenilHT w'heiher ii was a ujoonlight night. There was unow 
 on the ground. U-anie up from Kir.g-M reel, .Mr. Cotton live.! then 
 iin (JJiureh-sireet at s*ji(ie distance from King-street, I dott'i recolloct 
 i»eeing any inhnr persons tlian thos^^ I have mentioned. I first saw 
 jtheni \i)un 1 got within 20 or .^0 feet fr..m tliein. We came upiii 
 ithem hy surprise. We were eng.tgeil in conver««ion. I think th^ 
 jlight was jufKvient to enable us to «ee them at a gjvaler distanci^ 
 I We were on the same side of ilie ^treet <m the siilewalk. ^ I think the 
 lparti;P» had large overcojtta. I don't think their faces were blackcnedi 
 {but am not positive. I saw their \'uc^^ One party >» jw Ht.}opingl 
 ;down picking up placards and tlie other was takingsonie pasto. V\ e 
 'passed hastily, as hastily as possible, but I saw the faces and thought 
 il knew theni to l»e the parties 1 have name<i. 1 caught a glim|»e of 
 . ;theinas ive |.as>ed. We turnecT the corner iiuinediaiely afterwards 
 land, wem to iny own hon-te. Jhey none of tjiem spoke to us, and I 
 jd^ditoihcar them say Anything .as we pafe,e.l. We pa;;sod Utween . 
 ;the parties who were i^wting up and the party on the loolc out, who 
 j.to«Hl near tlie cur .stone. His face was tow: r Is the comer, rathw 
 Ifrnm than ti>^ard8 us, but I had n good view of his fiide face. He 
 jwas looking aViit south-east towards St. Lawrence fla'!. He seemed 
 jto lie Io.>king all round. We were going north. I think Uawke and 
 .myself spoke on the subject next day, and I think we still agreed aft 
 {to the i.lent^i- of the parties. I have never spoken to him upon the 
 *uhj_e,^t Mnce. I did not wish to do f^o. I think I mentioned th* 
 !in>.(.«er t^. Mr. Co..rg«. PLut in confidenr'e, on the Sunday or MtMHy 
 
 %:4 
 
 T 
 
 ^li^'^-C^it^j i 
 
 <«'^v>.i '*}i!^^i3attJfKi^i4ik&£^ ' 
 
u 
 
 *¥: 
 
 I'-i; 
 
 .morning afterward*. I meiiticned to Cotton on the MondlSy nioming 
 tliat 1 thought I had seen him on tJie Ss.turd.iy night a« I have ,,,«,,- 
 jttened. I t-onuidere*! a Sinking Fund "nneeewHry >.>, the w^iwon* 
 before n.entiono,], and b«y»iise the Sh«.riff can «9seH« the property in 
 the Court of rqiudiatioi, by tho City* I counidero^l » Iohu in Eng- 
 land advantHgeourt, he.-au:*e nion^y wm« to Ik; obtained at a h.wer nit." 
 money inhere worth more than 6 ,M.r.vnt.; and even tiienin Enghuid \t 
 was and is worth much le««. If the D. bentures were at well known 
 m England as here, money could have bwn obtained on much more 
 ndvantageous terms in Kngland.. City I )ebenturi.8 have been »6ld bjr 
 the City since the loan, to the amount, | think of £16,000 or there- 
 aboiU. The Finance Committee are now advortisinff the sale of 
 enturest £20,000 Debentures or therealH>uts "were to U hoKI 
 mf the;oan of £lOO,000. 1 think thoAe that h^ve been sold have 
 be^ sold here: I have no doubt ofc^. 1 am not aware l^ at any 
 •tt^nipt has been ma^le to sell them in England. " d^,'t know vihj 
 some ot them were not at 20 yoHis. ' 
 
 Jie-Examlned.-WhPti I ni.'.Mi..ned »o Ctfon that I thouKhl I 
 fcHd,ee„J,imon the Satnrduy „i«ht,he denied it and auid I m,.« 
 l« mistaken. My impression, however, remained iMiaUertd. I 
 •till retained the impression M.unjily. I demanded «ik,» fbis uc,- 
 «.«.o„ ft letter Irom Mr. Cotion. u hich he had previoiinrv refused 
 ^.8.«eme. I irhH.sht .l.« ph.c.rds wpy* comiec'ed wi^h aome 
 o^he« previo.^, ,H«,ed n,, r.tleoting .^^..^ „,«. and threatened 
 Mr. Got on ,f hed.d ..o, am. me fh. letter, fodisclose w.but J had 
 «l«ervedou the S:Mufd«y „ifi|.,. He domed his connertionwifb 
 n, bui g.ve me li.e lei.er he h,,d previously ren.sed, and I uasco... 
 ftri^d ... the iuipre«.io,r th.„T|,e mh„ the ,,erson. He might hav, 
 gii«^n me the letter for any uthfei reujwn. 
 
 ^ I shewed Piatt oneof the,. l»c»rdsbn.he1VIonday morning. when 
 rmeiitioned the eireun.Man.e u. him, as f, h^vosaiJ ; the one that 
 hud lH.en p„IU.d down by Mr. Hawke. Jt was at my house. It 
 ^v»;» the lurge placard. I thiuk it alhides to the placards I hav« 
 o.eijfio,.ed, reflecting on me. There «q« a copy of the placard 
 FitHyapo|,.;a.n«., ori»^s.e„ger iK'torethe Cuuncd. befor* the' 
 Clerk t.iok the Chair lor the election of Mayor. . 
 
 The placa|;d' thit Ilau-»c pulled down was not th« m». T ^» 
 
 s1^ ■**'; 
 
 ■ •k ■ 
 
 !«K^ "^ T'rr.'y- , -'n-ti^ravigrTr i' '^T^ fl.al'jS8^Sa^ gf,i~»;-a^;tftBT\-«-'^erm 
 

 \ 
 
 l\^ 
 
 107 
 puctrd up. ■ Htt pulI«U it vfl abulhcr |ilucn. 
 
 wf, 
 
 ClIAS. El). ROMAIN. 
 
 \ ■ ■ % 
 
 ■^*- (Sijgnec*) 
 Gkorob Platt, re-callcd by Mr. Bowes; 
 
 Ot^eeted to.-^J »»w Mr. Cullon on tlio Evminp of ihn Uth of 
 D<?cepilier, ls5», uml daily for suinw J'fvv diiy<4 ai'u^rw.irds: lor a 
 ffiKKi {miiiiy duys utterwurds. I re.neml»er U >inuin. liitmin? Mr. 
 Ctiltdnliij^ me in connecriun with ihjc itoKimcotiuinK^ tituuilulls. U 
 WHSonii Sunday, alter the l-Hh or Dc'ceu»l»cr, uud th^ht^ Cnrist- 
 n>u8. .^ ,. ■ ••■■', 
 
 - ■ *■'. '>.*■''."■■' 
 
 Crona-Exammed. — I know Jonuthun Wntstin. He Itas n sliofi ill 
 Ihe City. I do not know whethf rlie restuii s in ii ur not. lie lius 
 n tannery, M»fliev€, out of tie City. 
 
 I hflieve (he pri-Kont nuutWr of the inlmbituiittt of the City is 
 aUirii..40.000, 1 think not K-iiii. ] kiw Cotton tinriiij; llie O'cekufUr 
 the 14-ih (d'Drqendiei. J cjiiinot^.siiy us to u ^imhI niany duys. I 
 do nut know whejher Jonathan stilt rl{(^Mii« Idsisbof* in the Cily. — 
 
 (Signed) 
 
 GEO. PL ATT. 
 
 OoleR. GowA)(,*i;alled|l9|«^ Defendant Hdwrs: " 
 
 ■ .■■-.•/-■ „ . ■ » •■' > 
 
 I nrn an Alderman of the City. I entercdUhe Council in Jan. 
 1853. I have Uen rarely absent from niet-tiugs of the C«.'Un<:il.^^ 
 
 In my opinion the nrgociatbnolthe loan in England waft advan- 
 tageonstothe City. I hiiv« Wdouht at all ujion the subject. I 
 was a memher of the Comn^iitee appointed by the Council to 
 enquire into the negociiltion of t^io loan, and became informed of 
 the terms on, which it became begociated. In no other instance 
 have T known or heard of any loin being nesociated by the City 
 ti « less d iscouht than 1 jter cent per annum. I have known DeLrn- "1 
 turcs sold at 3a |ier cent discount: I believe that i 11 the 
 Londoh Market' the larger this amount required, the Iwtter " 
 aro the terms upuD\ which it hiay W negotiated. I haw 
 known Mr. Bowes well since I have ehtered the Cuuncif. ] du not 
 Hdy.lact iii^i ultjuijitin!; to iuflt|en(?e |iny of them u {tun any qnet* ' ~ 
 
 
 
 acilVj" *i-s ^Ls^ii'£s' ms. 
 
 ijl^J-'S^^-ii^ji^ -'b' I r"Mri~7"'i]^'' ''I'g^gK^ 
 
10$ 
 
 + Vf 
 
 V/. 
 
 ^ 
 
 "l ? ■ 
 
 .1! '■ 
 
 .11 iv. 
 
 r 
 
 
 tian, i^xcrpt finf lit* Hskrd me tomtf iik to iiiH)lli#>r ini>iiili«>r »i» vole fnr; 
 him liA'Miiyor. I unj not awnre of liik iittl«iii|>iing lo iii|lMfiic«t 
 the vutfi (ji jullifrmeinLf n>. 
 
 Cronn- Examined. — The Mnyor nnd T hnve af'nrnilly nrtrd to. 
 gHilit-r III ilic CoiiiumI, tiH>iiult w« huve ».im«'liMi»jnlirr.rrcl. uiiU 
 jiuil wiirmly. I jiiNtihV«l Ihn nMinefiinn \i i»li tlir iiiuit^rM in .^n.-K- 
 tiim in tiii i tSnii.iiiMi liihcoiiducl in rduiiuii ihi^rtMo, cxcrjit his 
 
 CiiMCftillliflit ul \\. 
 
 I3'li .Iruiiitiry, Kx:ini»nHfion Ci»n!irtird. , 
 • ' ■ ■ ■ / - . 
 
 HicHAMu l>r.Mrht. sworn for th«»D.'f«iiiIiint rM»'.vo«, witiv : 
 
 I w'M nn AI.I«'nnan of the City in I84*2. hp.! for four jvnr* 
 Hr^\;i..oH. I r.'ij|.-.ii«.»r ^ho ^\\\ of £2.i,c00. I MHf'j*,.rirtf i( -in 
 ( iMincil,nn<l iifv t •• I<»»n of £H5jO >. I Wi5#t>rt>ir;!u' X.rrih»'rn 
 K<M(i sirun|!ly. I ri'iiiHuilHT lh«' C>ittri(M<>rN h 'iri^ very iinxitiiw 
 to fret Delifi.tiiris in IK.V2. I MnvthHH on f h.i Vi j iii.^« C • naitiii^,, 
 It Wu« a »?h«.rt tiiiiir I'ttorr ihi* By-I.MV »•:•««'♦•«• '-I" tlie 2^.'li ofJnii*.. 
 TiiHV r.qtiirril Mi.n.y. I liml i!..iivrrsiili»>i.si w i«». m.ii„- ,.| f|„ „v 
 ititil iiiiiie>sliH!il lli!,f fluy liitd cin.ir'ii.'ied f .r, ir.n i.ntf wrr 
 milirt-hPlisivf! nl «:tslniiMn!; u |,.^s i| luey <li I imt cnt iiumt-v. | 
 tiiink ih'-ro «v.is s.i.ii ? .htJi '.riliy ..wr.i-^ ?.. s • iie <rt-riil},- 1|..« l.i Iim' 
 r^qnireil li..th in ilu» Fiikuhm- Con.iiiittee iiml iln- C<.nMril.^ 
 Wliiit lltt-y rtqiiirrd w'iis.a«;»rfifioutu olflie QiniiniK of work done 
 r.n the i:..«.l. ] think .\Jr. Keeler gave a vefUi! crtrfifuie first, 
 tiiid tliAt it wMK n.*i deuuiod siiffioieiit. Hiis diflionliy uiik the 
 raii^e Mltiie duhiy; ^' 
 
 m. ^ \ . . ■■• ■-:.;...-" ■•".:, 
 
 Ther« ytejf com nninioHt ions with the ro»Hr:irfor» nlmiit th«- 
 Tinic of iMiMing ih« Ry.lt«w. I \v:.j« pr* »• nt «hen iho By-»ji\v 
 passed III the Council. I tliink f had coiivcrflUiotiu with some tif 
 the Contractors or their Agents. Thry wero vory anxious to get the ' 
 DebenturfM. 
 
 The Hr-hiw was referral to in S|»ccial Committee, of which I wa* 
 on*. I thought so, but on hearn^ the minute re id, I holieve ther« 
 MUM no' (.\.iiiiiiitt««", I Huni>.n--d thf ch-.mge from the jrift and Joai> 
 
 I h 
 
 \ ■ I ^ •■ ■ 
 
■WjWffP ' 
 
 to tli« purchiM^ of Su*(k, thinking il very HjvuiUagooiM to tliD City 
 ] WM not iiiflat)iic<Hl in my c«>n<iiietor votoH in t)ies« inutleni by ^1^ 
 n.iWM. Th» fliitjf ol»jvcti«»n to the By-law w«h tlie noii-publiwiiion. 
 It wan forniHlly renolx efl tliat ilje DvboniurM should !•« itwuetl, lut tho 
 Contrai'tom wore vory anxioim to gH tliein, nnd we were iipprtflieiiHiv« 
 that tlw Uo ul iniijlit orlitrwisn Ui stoppeJ for n time, and the Con 
 trHo«or» wore rc:uiy to run ti>e risk, anil wo did not »(^ frouj wiiut 
 qvutrter diffloulty could arise. ' 
 
 I remember the propiVition f<»r con'olidatinj^ tlM» debt, and raioinff 
 £1C0,000. I HUjjportcd it. It ()ri^nHted, I think, with the Finance 
 <"oinniitttH», and it wa^ in conscipi^nco in»«vod in th» Tou'ioil, an'i thwn, 
 ] rhink, unanim'^u ly adopted. I think iiWH.< thtVHnjfjjoHfion that the 
 money should bo «ibtainfd in England. We wor«? to try nnl g.'t ,' 
 tiier*. a» 'I wr.s to be had thore on inorr ndvantngemis term*. 1 wan 
 not in the ^)iJfbt^"*l df jjrefl influenvod in tins matter by Mr, Hnvei. — 
 He mip^ht havrt had influonc« at t'le Kinino*; Conimi(te« like any 
 /Oth^r taember. according to tho 6»rf« of If in arjLjum ont-*. I tifonght tl p 
 pfoponition advantrjjuoUH to tliet'ity. Ithink th«f F:n moot'o'nmiiu-e 
 \vi»rc unani'nous on ih«» »uV>ject. I snppoftinl it in thi» (>i,nim-il. Mr 
 (' nrdiiprr'p-in-d t'li' l'eMti<»n to the Leirislat'.MP f»r the ConsoHdation. 
 h wi« f.»r\vardt'd i'» Mr. Houlion, tlio City Mem'ier. If I i»a I then 
 known that Mr. R .w»v* had pur based the £.'»uOjO Oebenturc?, I do 
 not think it would hivi*^ inrtn^-ncpd my vt te, but it is ilifgcult p^ say, 
 I don't think I sliould have attacli)i»d any iini>ortance to it. 
 
 The loan. I undt'rsfiqod, was nejjoviatwl in London^ without any 
 chari^*'. ^ It was mokt iidvanUigeoi|s to the City. I never heard of u 
 loan af par b«ftV»re. 
 
 I think City Debentures payable liere, were then at 1 per cept per 
 
 unnuni discount. Mr. Boultoi) had charge of the liill. I have rjeaaon 
 
 ^o think that Mr. Bowe3 and Mr« Doulton wore not theii on good 
 
 t*-'""*' A good deal was said at that time ftljoyt, Mr. iJowes and 
 
 Mr. Cotton pushing the petition ag.iinst Mr. Uoulton's leturn. Mr 
 
 Koultou A-.'iH not likely to be influenced by Mr. I^owes. 
 
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 IIINCK8 
 tchttlf of dvfondant. 
 
 TUV. IIONORAULK V 
 £xaiuinod by Mr. Attorney (iugttiil 
 
 Thw ovidonf'e wiw tnkcii «gQtiiwfe]^)horCommi<wion; tho que*, 
 tionii having boon put (^vf "" ' 
 
 9 
 
 Qmttion-^ ;** •* ^ ' ; 
 
 Did or did ndC^ho rHiRmdant IJowoii over, nnd whon firwt, to tho 
 boHtof your recoU«ction and b«li«f, propoHO to you that you Hhould 
 join him in tho purchiMf ^.>f any, nnd irnny to what amount, of 
 dobonturoa of tho City of Toronto alxmt to bo itwuod in aid pf tho 
 Ontario, Siiucoo and Huron Union Uuilroad Company ? 
 
 ." ■ •' 
 
 Homclimo ot tho latter end of Juno, opo thousand eight hundred 
 iiid fifty-two, 8o«m after my return from Enj?hin«l, Mr. Bowoa pro- 
 poaod to mo to join bim in purehaning curtain debonturca of tho City 
 of Toronto, then about to bo itjHued; Mr. iJowea t«ld mo that tho 
 contractorH had been trvinj? to hoIV thorn, but without hwcccm ; that 
 thoy Would, be th(»ujrht, tjiko ei;rhty per cent, for thorn ; the amount < 
 about to bo issued wuR about twiinty-fivp thousand pounds. I agreed 
 ^ join bini in tho [lunbiise at that price; the highest ^aluc of auch 
 bonds iilikc^nie.was ei|,'lify-fije. Ijncm that punhascs in small 
 
 Bowes and I had some con- 
 
 e. 
 
 'J*. 
 
 stlms lugnHjHUo ut t 
 vorsut|mH||p^\ji<)de on^MMing the money to pay fur them in cose 
 ho succocded in efrceting the purchase > ho told me that he had 
 pounded the OMiicT of one of tho Banks who had y{wen him encour- 
 agoment. I ^old Jiim that if I were concerned in the operation it 
 would bo ou tiio express condition that the money sh«»wl(l be raised 
 in England; tlutt I had no doubt of getting it for twolie months at 
 five per cent, pfer annum, which would give us plenty of lime to dis- 
 pose of the bonds, and that if he could secure the purchase I would 
 undertake the entire jnanagoment of the fhuLsaction. This convcr- 
 satioo occurred on the twonty-fourth of June. My reason for being 
 pretty positive as to the exact day Is that I examined the registry 
 book at Sword's Hotel, where Mr. Bowes usually stcrpped, and find 
 by it that he arrived in Quebec on that day and docs not appear to 
 4»av " • ' • - - 
 
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 ft-? 
 
 remain e d in town ove r night. — In this w ay I am enabled to 
 state the exact day on which the conversation occurred; but, inde- 
 
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 pendently of this, I can state firom my own re«ollection that it must, 
 have been about that time. 
 
 In reference to what I have said as Jo eighty-five p6r cent/being 
 obtainable for these debentures when sold in small sums, I wish to 
 add that I do, not believe that more than eighty could be got for 
 them when sold in-large sums. 
 
 Question-^ ' ' " 
 
 According to the best of your knowledge and belief was such pro- 
 position made to you with the view of obtaining any advantage to 
 . Mr. Boweff or yourself which your position as Inspector General ef 
 «he Province eras a member of the Legishtive Assembly enabled 
 you to obtain? ,.■■>■ 
 
 Answer— ■■■ ■ 
 
 Decidedly not. I could have managed the transaction in every 
 way with equal facility, had I been out of the Government and of 
 Parli^ent. I wi«h to put in a letter addressed, to me on this subject 
 by Messrs. Glyn, Mills & Co., which is in the following words : 
 
 ■ •■ '-r , - :- ■.: ■ y I ■■ ■,. ■-■:,.; . 
 
 London, December 6th, 1853. , 
 I>«ARSitt: • V 
 
 Our attention having bepn called to statements which have appeared 
 in .some of the- public papers in Canada referring to certain transac- 
 tipns between.yourself and our firm, we think it right explicitly to 
 declare, though it really scarcely requires any remark from us, that 
 so far from these transactions having had any reference to or connect 
 tion with the agency or funds of the Canadian Government, or your 
 position in it ;^ the loans were made by usupon undoubted security 
 at tlie full market rate of interest, ^i€d repaid in a veiy short period, 
 and that we should be ready again either with you or with any other 
 client of ours, to enter upon a similar transaction so perfectly straight 
 forward lind regular welre they in ail their bearings, 
 
 • •» : We have the honor to remain, • 
 
 - J>ear Sir, yours fiiithfully, ^ 
 
 ^ „ „ _ GliYN, MILLS & COMPANY. 
 
 The Hon. F; HiNCKls. 
 
 t iThe Plaintifs object to the prodwHon of this letter as inadmissible 
 testimony.'] • 
 
« . 
 
 •V^' 
 
 *" tWb*^ 'W^*'^' 
 
 "■'■■-■. 128::-' •> .. ■^^... 
 
 J lTh« Commuaiontri without deciding on tit aebnisaibilittf of the 
 evubnee, alipw the same to be taken, reeervitiff the question for Jh§ ^-|fc, 
 decision of the Oowrt. -- ;! . 
 
 Mr. 0. O'ltiU Stuart, one of the Commissioners, dissents, being of 
 opinion that thh objection should be maintained.'] 
 
 This lettot- is now prodtioed and filed by me, and maiked A, 
 
 I lutve had a private banking account with Messrs. Glyn, Mills & 
 Company for some years. I have found it necessary to have one for 
 the deposit of iinonies sent me for investment in Canada. I hold ai^ 
 this time in my hands a large amount of various securities the pro- 
 perty of friends, who have confided them to me, about six thousand 
 pounds of which belong to members of my own family, who have 
 invested it on my advice; a considerable amount of this is in Grand 
 Tivnk Railroad Stock, purchased at current mark«i| rated, but nojb a 
 share of which has ever been offered for sale. From my^^Vate 
 transactions with Glyn, Mills & Company, as well as from their letter, 
 I am confirmed in my belief that I was treated by them as an 
 ordinsiry client of the' firm, and not in any way in my official 
 character. 
 
 Question — " 
 
 At the time of the proposition being made to you by Mr. Bowes, 
 or at any time, to the best of your knowledge, were debentures of the 
 City of Toronto negociable at par ip the English market, or else- 
 where, as you, for any and what reason know or believe ? 
 
 Answer — • '■■■. 
 
 I am convinced^t such debentures were not negociable at par 
 in the English markdb at that time or elsewhere. I had reason to 
 know from a conversation with the Honourable John Henry Duun, 
 when m England a few weeks before, that he had been applied to to 
 negociate a loan for the City of Toronto, and that he had failed in 
 doing so. Mr. Dunn must have meant that he could not obtain par 
 subject to the ordinary commission. An oflFei- of ninety-five was r^i 
 
 made for City of Montreal debentures about the same time, and my 
 belief was that the full value of City of Toronto steriing debentures 
 
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 124 
 
 in London at that time would have been ninetj-Bvo. At that time 
 no City of Toronto eterllng debentures hud been iHsued. But I 
 prdsume that if there had been any, they would have sold for thn 
 flame price as those of the City of Montreal. Ip 
 
 Question- — 
 
 Did or did not Mr. Bowes, shortly after tho thirtieth of June, one 
 thousand eight hundred and "fifty-two, and how long after that day, 
 ta the best of your rpcollectionj coniniuiiicato to you by letter as a 
 feet that the contraetors of the said railroad company had written to 
 him offering to sell twenty-four thousand pounds, or any other and 
 what amounts debentures of the City of Toxyhto, which they, tho 
 said contractors, were 0r conceived themselves to be entitled to, at 
 eighty pounds per hondred, or at any other and what late of discount? 
 
 Answer — .,■■•;■ 
 
 On or about the thirtieth of June Mr. Bowes wrote me a letter, 
 stating that he had received an offer from the contractors to sett 
 twenty-four thousand pounds City of Toronto debentures at eighty 
 percent. 
 
 Question,-— ''-' ^ , 
 
 ' ■ . * 
 
 At the time of your agreeing to embark in the purchase of such 
 debentures, were you made aware of any illegality being alleged to 
 exist in the issue of such debentures, pr'did any such alleged illegiil- 
 ity affect t^e price agreed to be paid to the said contractors for the 
 said debentures? ' ' 
 
 Answer — . . 
 
 At the time of my first conversation with Mr, Bowes, when I 
 agreed to join him in the purchase, I was not aware of any snch 
 question having been raised; the price was not in any way affected 
 by such a question, or by any supposed illegality. I am not certain 
 whether it was mentioned in Mr. Bowes'Ietter to me, or that I first 
 learned it in the public papers in the report of the proceedings of the 
 City Council of Toronto on the passing of the by-law. The alleged 
 illegality was of a technical character, having reference to the omis-. 
 sion to provide a sinking fund, and also some want of notice. All 
 parties, as. I understood, at the passing of the by-law, concurred in 
 
_ iff^^i!im^wv^ir39Srw^if'^^f^e''!nv'W""?'*^0^: 
 
 »*»? 
 
 : 125. ■;. ■;■.:,■■ , - •■ 
 
 pledging themselves to obtain the necessary legislation to ovcrcono 
 any difficulty should it be found to exist. 
 
 Qtuation — 
 
 Was or not tho letter of Mr. Bowes, communicating to you the 
 written proposal of the said contractors to sell the said debei^ures, 
 received by you at Quebec, or where else, and was it transmitted to 
 you by post, or was it delivered to you by one Jaines Cotton, of 
 Toronto — as you for any a'^Hjjtkat reason know or believe-^and will 
 you produce the said lgtt«j^Pr^ 
 
 ■■ " C^ ''>^' 'si ■ ■ 
 
 Ansvier — ./i^' 
 
 . I cannot produce the said letter, and n^y^ belief is that it has been 
 long since destroyed, and I have no recollection of reading it or, see- 
 ing it since the time of its recep^n. It was merely an announce- 
 ment that the contractors would sell the bonds on the terms previously 
 agreed to in conversation. It may have been accompanied with a 
 copy of a letter from the contractors, and my impression is that it 
 was. My belief is that the said letter came by msjjl. My reason for 
 80 believing is, that although I got a great man^ letters from Mr. 
 Bowes during that.year on a great variety of subjects, I never recol- 
 lect his sending any by private hand, except one, which I recollect 
 Jiavilng been brought by Mr. James Option, of Toronto. My reason 
 for believing that the letter brought by Mr. Cotton was not the letter 
 in question is, that I have consulted the registry-book at Sword's 
 Hotel, where he usually stopped when in Quebec, and foun«l that he 
 is entered there as having arrived on the twenty-first of July, one ' 
 thou&nd eight hundred and fifty-two, and not on any previous day in 
 that month. It is probable that the subject of the debentures was referred 
 to in the letter brought by Mr. Cotton, but my impression is that that 
 letter principally referred to a subject on which Mr. Bowes repeatedly 
 wrote and spoke to me. That subject Was the propriety of appointing 
 Mr. Jlecorder Duggan a Division Court Judge. I think Mr. Cotton 
 was also urging the same point, and that this was the special reason 
 of his bringing the letter in question. " ^ 
 
 ^ ■■! 
 
 Question—' ; 
 
 Prior to the receipt by you of that letter had you any, and if any, 
 
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 , ^■•::- •■.."-■,, 126 ■ ■; . ;^. ^^"■■■■■. ■ 
 
 what, conversation wifli Jtmea iDotton, of Toronto, idatiTe to die 
 purchase of the gaid debentures from the oontrtctors of the said 
 railway, and was the said James Cotton in Quebec at or about the 
 time of your receiving such letter, as you for any and what Mason 
 know or believe ? 
 
 ■',,■■ .'•.■■ 
 
 Answer-^ ■' ." :' ■ .* 
 
 I have no wcollection of holding any conversation with Mr. Cotton 
 
 relative to the purchase of. the said debentures, except a passing 
 
 obserVatiofl or two when he delivered me the letter from Mr. Bowes, 
 
 referred to ih the last answer, and which I think was aeiiveied on 
 
 the twenty-first July. The letter of the thirtieth June was, as I have 
 
 already stated, to the best of my belief, received by mail. The 
 
 observations which passed between Mr. Cotton and myself when he 
 
 delivered me the letter of the twenty-first July I cannot now lecoUeot, 
 
 but I can state positively that they had no reference to the raising of 
 
 the money for the purchase of the debentures. For the reasons 
 
 mentioned in my last answer, I do not believe that Mr. Cotton was 
 
 M Quebec in the month of Jxdy before the twenty-first. 
 
 ^ueatiofi—' ' ' 
 
 From. anything which passed between you and I^r. Cotton during 
 the month of July, according to the best of your r«coUection, did you 
 inform Cotton that you would telegraph Mr. Ridout in relation to 
 the debentures, or did you in fact telegraph to Mr. Ridout in relation 
 to theiu during that month— for any and what reason that you know 
 or believe? 
 
 Answer — , 
 
 I have no recollection of telegraphingMr. Ridout on the subject. 
 I am certain that I would not have coiiimunicated a proposition on' 
 such a si^ject by telegraph in the first instance, and that my letter to 
 Mr. Ridolt, dated fifth July, and given in evidence by hii|a, was the 
 first communication made to' him in consequence of the purchase of 
 the debentures from the contractors. I had thought, ^^en I saw 
 Mr. Cotton's evidence, that it was possible that I might have had to 
 telegraph on some incidental point, in consequence of the letter, 
 which I bplieve to have been delivered on the twenty-first July, but 
 
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f 
 
 
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 having required fVom the Montreal Telegraph Contpany the originals 
 of any telegraphs sent by me to Mr. Ridout during the month of July, 
 one thousand eight hundred and fifty-twoj I found that I had only 
 sent one, and thttl 6n a subject having no reference;^whatever to the 
 debenture transaction. I do not recojle?t telling Mr. Cotton that I 
 would telegraph, and my conviction is, that if I Had determined to 
 telegraph with reference to so important a,^ran8action, I would have 
 done so. • 
 
 Question — ■ 
 
 Did you or not believe, or fVom anything that ever took place be- 
 tween you and Mr. Cotton, or between you and Mr. Bowes, had you 
 any reason to think or believe, that Mr. Cotton wa^, or that he 
 claimed to be, a party to or interested in the purchaue of the said 
 debentures? 
 
 Answer — '■ v "■ . ' .'' ' 
 
 I never heard from either party that Mr. Cotton was in any way 
 interested in the transaction, and have no reason to believe that he 
 
 was. 
 
 Question — 
 
 Did or did not the said James Cotton, or the Defendant IJowes, 
 ever propose to you, or ever treat with you, as if you had agreed, or 
 did you ever agree with the said Bowes, or any other person to act 
 simply as agent, or upon commission, in the disposal of the said 
 debentures? 
 
 
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 Si 
 
 ml 
 
 Answer-— ^ » 
 
 Nq proposition was made to me^by any one to negociate these 
 debentures on commission. The only proposition made to me in this 
 transaction was Mr. Bowes' proposition for the joint purchase of the 
 debentures on account of Mr. Bowes and myself. 
 
 Question- 
 In the agreement between you and the said Bowes to purchase the 
 said debentures, was there ever any arrangement made between you 
 and him that he should delay the issue of the said debentures, with 
 
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 the view of enabling you in the interim to raise the money to pay for 
 them, or with any other view; or had you, or had the said Bowes/to 
 your knowledge, or in your belief, any motive Huflk-ient to induce 
 him^to endeavour to delay the issue of the said debentures? 
 
 ,i Answer-^ ' '■•■ ■. r '•■•-,. ' 
 
 ^V, ■^^'^^^s certainly no arrangement in the agreement that Mr. 
 
 \ ■^'^^^ should delay the issue Of the debentures; the issue was rather" 
 sooner than I anticipated, and in consef{uence I ' wrote to Mr. 
 Kidoiit, on the fifth of J'uly, one thousand eight hundred and fifty- 
 
 T7 two, informing him of thie tran«actiy|i, and that I had no doubt of 
 getting a credit from Glyn, Mills & Company, on the deposit of the 
 debenttbcps with the bank. I knew that as the bank would be veiy 
 speedily reimbursed by exchange on London, the transaction would 
 be a profitable one for them. I am not aware of any motive Mr. 
 Bowes could have to delay the issue of the debentures, as the bank 
 had agreed to a^jvance the money,, and as the first advance to the 
 contractors, on account of the purchase of the said debentures Was on 
 the personal security of Messrs. Bowes & Hall, and it was therefore 
 not Mr. Bowes' interest to delay the issue of the debentures. 
 
 ■" \-: ■:' •■..;:■■. "■'■: ■ ■- ■■ ■. . 
 Question — ' 
 
 Did you or did you not, and wheo, through the cashier of the Bank 
 of Upper Canada, cause a proposiflon to be made to the Corporation 
 of the City of Toronto to negociate a loan for the City of Torontb at 
 par, on condition that new debentures of the City of Toronto should 
 be substituted for those purchased by you and Mr. Bowes from the 
 contractflvs of the said railway company; and if you drd make such 
 .proposition, state what that proposition was, and what /Was your 
 object in making it ? - . 
 
 Answer — 
 
 X ■ - ■■ ■ ■ ■ 
 
 S . ■ ■ - , ■.,.-.-■ 
 
 I did authorize Mr. Ridout to make such a proposition in -a letter 
 dated the twenty-fifth of September, one th'ousand eight hundred and 
 fifty-two. I had long been aware that the Corporation of Toronto 
 7, was anxious iioobtain a loan at par, to redeem a portion of their debt, 
 for, part of which a special mortgage was held by Mr. Gawthra on the 
 City property, which it was in every way the interest of the City to 
 g e t rel e ased. — I w ais awa r e that several atteiMpta had been made to 
 
 s. 
 
 i& > y i S r b .t^ife»JagteAu i^.i . Jfe ^aitofe»a^ 
 
 'jTlXX^ 
 
■' 129 / ■•..■■■■■'- --' ■■ 
 
 obtain it without 8ucce8A. I have idrendy 8tate<l that I was informed 
 by Mr. Dunn, when in London in the Sprinjr, that he luid been 
 applied to, and had been ^uniiblo to effect it in that city. It occurred 
 to.mejhat by pettin- sterling debentures instead of currency for 
 those held by Mr. IJOwes and" myself, we should obtain incans' of 
 selling the whole unumnt speedily in London, and thiit it would bo 
 for thte interest of the City of Toronto to replace tlie old debentures if 
 we gavethcm par. The sterling debentulx's were worth, I thought 
 . »t the time, about ninety-five to ninety-six per cent. The proposition 
 never would have been jtaade or thougJ.t.<,f but for the benefit of tho 
 Uty of Toronto, and had I been dealing with anindividual, or merely 
 IpokHig to make as much money as I coul.l, I a.n convinced that I 
 could have obtained a reduction e<,uiv«lent to a' commission flf from 
 one to two per cent, on the price I authorized Mr. Ridout to offer for 
 the fifly thousand pound*, which the City desired to raise over and 
 above the^amount which it was required to issue to replace the deben- 
 , tures purchased. by Mr. Bootes a m^yselt; the legality of which had 
 been questioned. The City of Toronto obtaine.l its loan on more 
 .fevouiyble terms than any of the late lua.,8 to tho JVovince. Mr 
 IJowes and I coiild hav<^mad6 more money by holding our currency 
 debentures. Ihayec1u)t"kftawn,an in^anfie in which sterling deben- 
 tures have becffrefuSed to parties askin|; for them in the first instance. 
 In a recent; transaction, in which the City of Toronto luis made a con- 
 tract for a large public work, I haye been informed and believe that 
 the debentures are to be issued in currency or sterling, and payable 
 in Toronto or London at the option of tho parties. It depends 
 entirely upon circumstances which description of debentures Is most 
 valuable. J would prefer currency debentures, if I were holdinff 
 them forinvestment here; people investing in Kngland would of 
 course prefer sterling. I have no doubt that at-this time eurr'encv 
 municipal bonds are fully as valuable in Canada as sterling ones are 
 m London. o v 
 
 A- ^ -■'■__.-■ ■ ■ ■ --■;■■ ■ ■ ■ 
 
 ■ ■ ■ ■ .-^ " ■■'.■., ' '"-"-" 
 
 Quentioii— :-; -gt "]:■'''. 
 
 c^the City of To^nto have in any manner- or by the use of an^ 
 means, obtamed m England, or elsewhere a loan of fifly thousand- ' 
 pou nds upon so favorable terms as they have. effected 8uch loan in tho 
 manner m which it has been effected through the proposition caused 
 
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 to bo mndu by you tbrongh tho Caflhier of tho Bank of Upper Cunuda 
 to tho CorportitiuQ of tho said City? 
 
 ■ Atuwer — 
 
 My conviction is that thtiy conld not have obtained a loan at par 
 at tho time. And I think that in every way the transaction was 
 moHt advantageous to them. We soUl the same debentures for which 
 we paid par to tho City at a dincount e(|uivalont to about four per 
 cent^, that is t6 say, wo sold the said debentures, amounting in the 
 whole to eighty-two thousand pounds sterling, or about one hundred 
 thousand pounds currency, for ninety-seven per cent., one half in 
 cash, and one half on a credit of four months without interest. I 
 believe I got tho full market value and the highest price that could 
 bo obtained. We lost four per cent, on the debentures for fifty 
 thousand pounds for which we paid par to the City, which had to be 
 deducted from our profit on the fifty thousand purchased from the 
 contractors. <, V 
 
 Question-— 
 
 In the passing of an Act authorizing the City of Toronto to raise 
 on<i hun4red thousand pounds to consolidate a part of the City debt, 
 did you tal^e any, and if any, what pairt; or did you exercise any, and 
 if iny, what influence upon any other person in prucurinoj^it Act 
 to be passed, or had you or the said Bowes any object ii^^Bcuring 
 Hueh Act because of youriintesrest in the said debentures purchased 
 by you and him from thoj^lcontractors pf the said Railway ? 
 
 Answer— 
 
 /- 
 
 I was present when the bill passed oneof its stages and may have 
 been at all of them. 1 1 )ok no part, and used no influence to carry it 
 through the IloUge of X?sembly. I am noTaware of any influence 
 being useH by anyone to carry it. It was of a similar character 
 bills passed for the same object for the Cities of Kitigston>fidi[{ajnil- 
 ton, and I think Montreal There was no opposition toany of these 
 bills ;' the object of all WJP the same, simply to require a less oppres- 
 sive sinking fund than thdt required by the Upper Canada Municipal 
 A.<!tt. !^e City of Toronko would have had to borrow whether the 
 new^ i j&i passed or not. So f a r' a a the act legalized thfi debentures 
 
 -■'■ ♦■ 
 
 / 
 

 mm 
 
 iiwued to tho Itailroad contnictorH, or provided for the RubHttttltion of 
 other dcboiituroH for thoiii, it wiw in conHequvnce of u diHtinct under- 
 Btanding before the conclusion of tho purchuHe of the Huid debenturcM 
 by U8, and at tho time of tho piutHing of the by-law under which they 
 issued, that the City would take the neccswiry steps to remove doubts 
 as to the legality of tho issue of tho debentures. I have no doubt 
 that the City could have been compelled to do so in some way. After 
 the passing of the act in (|ucstion and after comments had been modo 
 as to the propriety of legalizing debentures which were already in 
 circulation, the legislature on its re-assembling in 185Jt confinned tho 
 Validity of debentures issued to the same parties by the C;Ounty of 
 Simcoe and which wore objected to as illegal, and this even though a, 
 motion to quash the by-law on the ^0|ind of illegality was thqn 
 pending before the courts. • t"^ . ' . ' 
 
 
 Had you or the said Bowes, to your knowledge or belief, in view 
 the procuring of such act to bo i>aNSe<I when you and he agreed to 
 purchase the said deboutures from tho contnictoifi, or would you have 
 embarked in the purchase of the said debentures at the r.ite you did 
 purchase them, without regard to such act being • passed j or was 
 there any arrangojnent or undei-standing between you and Mr. Bowes 
 to- the effect that you shcmid use any influence you might have as a 
 member of the Oovernnient or of the Legislature, or that Mr. Bowes 
 should exercise any influence he might have as >layor of tlic (Mty of 
 Toronto upon the Corp()ration of that City, in procuring anjthing to 
 be done which was in any manner necessary to be done to enable you 
 and him to derive a greater profit from and out of the said debentures 
 so purchased by you from the said contnictoi-s ; or wimld you have 
 embark;^ iw4h^ purchase of the said debentures if you had not been 
 *■ a member of the Government or of the Legislature ; or did tljo cir- 
 cumstance of your being a member of the Government or of tlie 
 Legislature enable you to derive or facilitate you in deriving" any 
 greater profit fi-om the said debentures than you might othei-wise have 
 derived therefrom; or did Mr. Bowes apply to you to tfike any - 
 interest in the purchase of the said debentures because of your being 
 a member of the Goverment or of the Legislature, as you for any arid 
 what reason know o r believe ? — ^^ — — ..'.■■■■'■. ' . - - ■ , --7 
 
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 Wlion the trnnsnrtinn wns ontorcd into, neither T nor Mr. Doweg 
 • to my knt»wlcil;.'i', had in view t\u\ iirocurin^ of m\di uct. Nt-ithcr 
 my cmbarkinj^ in tlu; o|M>niti()ii nor t\io i>n(« j,'ivon for the dcbcn- 
 turt>« wriH iiitlmiK od by any HuppoNitiou on my purt Unit iiii uct would 
 bo rwiuirod. Thcro wum no undorHttinding bwtwtTn Mr. IIowoh nnd 
 niyHt'lf that I Hhould um? any inflminco I nii^ht have uh u member 
 of the (Jovfrnment or of thtf li«!gi«hiture with regard to the tranHuc- 
 tion. I had no un«lerwtandinfr that iMr. HoweH HJioidd exeniHo any 
 influence that he might have a^ Mayor of Toronto mM)n the ('oriK)ru- 
 ti«in of that City. I would liave joined any other mcAehunt in Toronto 
 of thetifime standing with Mr. IJowoh and <mt of thi (.'<»riK)rotion m 
 re«idily a« I did him. I undcrat<M.d and believed that the City had 
 hmg bef(»r(( determined uh to the aid to be giftyiyto the Railroad 
 Company, and I wuh not aware tliat .Mr. JioweH Woulil use any official 
 influence <ith(H' to promote or to obKtruct the truil'Jiietion. I would 
 have <;mbarked in the transaction asi readily if,! had not been o 
 member of the (jtoyernment or of the Legi.slatufe ; antl 1 am not 
 aware that eith.T niy oflleial |)o.sitiun or tliat (»f iMr. Howes was ot* 
 the k'a.^t service to u.s in canying out the ti-iniHattinn. I do not 
 bdieve that Mr. IJowcs applied to me in coiij.e«|Ueiice of my ofliciul 
 position; th.en- an- oth-v members of the p.venimeiit whose oftifial 
 position wi.uld have enabled them to render as niuch aid, had any 
 Huh been n.fuiml, a.s 1 could do, but they were niit applied to, to 
 my kuowled-ic. I believe that Mr. Bowes would liavt; nvade the. samo 
 jaopcKsitioti under similar circumstances had I been entirely di.scon*- 
 neoted with the (jovernmeiit. I know of tran.saction.s of a similar 
 character and of evi'h greater magnitude being carried out by parties 
 ; entirely disconiurcted with the (Government. I have no doubt that 
 I could have obtained frcHn other parties in Lond«»n the same accom- 
 niodation whii h I received from 3[essis. (Hyn, Mills & Company, 
 upon similar terms. An offer was nnule thrtmgh me, not ibr my own 
 advantjige, to advancfe money on similar securities on the same terms 
 as I negotiated the loan with Glyn, Mills & Company when I was in 
 Loudon in 1.S52. ^ ^ 
 
 ^ 
 
 #• 
 
 V 
 
 Question- — z^- ■ / ' ■' .. . ■/: 
 
 .\ccordi ng to the best of your knowledge, iuformatioji and belief 
 
 could you and 3Ir. Bowes have made equal profit out of your purchase 
 
 %K 
 
 :■■''! 
 
If 
 
 \ 
 
 
 laa 
 
 of thormid tlcbor)|6rc« from tho wiui <ontmc'toni if tho not to etuihlo 
 the City«jfTon»nto to ccMiHoIiilnto u part uf tijo city dt-ht liiul never 
 been pjWHod ; niul would you luid \w luivo Jxuri e<iuully HntiHtiud with 
 your rtuid purchiiHw from th« Miid t'oiitractorn if no h\H'\\ uct hud been 
 poMMcd; andJiadMr. Howch any roumm to believe that Hueh iin act 
 or anything t«^ bj^jdono undtn- it, wan neee»Hary for the purpoMe of 
 cnhaneinp; Iho p|^ t(» be derived by you and him from thopurchuHo 
 of tho Huid deb(i;|p'l!|i^!f« from the Haid eontruetorH ? 
 
 Aruwer — * , 
 
 I bcliovo that wo coiihl have made an e(|ual, if not n greater profit 
 by holding the eurreney debentureH and nelling them in Canada. 
 Theie waH a yery conHiderable inwnwi in priee of alU'nnadian hcou- 
 "M^'which coinmctrced soon after our pureha«e/and continued 
 until^crjr recently J and 1 am not aware of any late wdeH having been 
 made at the priceH whith ruled at the time of the purehaHe*. When 
 I entered into the tninwaction I anticipated that riwe, and wcndd have 
 been perfectly Bntw^anjl to have taken Huch price an | could have got 
 in the home market for the curreiity bond-s, always assuming that the 
 understanding that the bonds should be legtdised was carried out an 
 in the case of tho Simcoc bunds alreatly referred to. 
 
 Question-' 
 
 Did you or did you not transjuit to >!r. IJowes any part of his 
 share of the proceeds of the sale of the said debentures purchased by 
 you andliim jn bills of exchange upon Kngland; and did y,m or not 
 purcbase suchnills in the ordinary course of business; and where 
 did you purchase the samqj ami why did you transmit to Mr. 
 Bowes his share or any part of hisyiiare in the profits of the said 
 transaction by bills ou England ? 
 
 Answer — 
 
 J 
 
 I did remit Mr. Bowes a portion of ihe profit realized by tW tran- 
 saction in bills of exchange on London drawn by the Keceiver-^en- 
 e^j that exchange was sold without any intervention of mine at the 
 Wghest price that could be obtiiined, and in the usual way. If was 
 Jawn against balances of special funds by tho Receivor-Genei-al, and 
 
 waaonly when the bills wore brought to nie to be countersigned 
 
 uru 
 ft \{ 
 
 y-i\ 
 
 that I became aware of the side. They were sold to the Bank of 
 
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u 
 
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 ITppor OmuiwIh, and drawn in favour of th« uinnn^«r of tli« branch of 
 tlwt bmik lit Quobiic. When I haw th<>iii it occurred to uui that thiiy 
 would b« a corivfluioiit nu»do of rciaittiii;^ to Mr. Bowtw, m oxuhango 
 in UMuitlljr higher in Tormit<f than 'at Quebec, and I knew that Mr. 
 HowcH required exchange in hia buainona. 1 ao«t to the Bank of Upper 
 Canada to buy the oxchanf^e. I had no intercut in the matter ; I 
 charged Mr. Hi^cm juHt what I paid, and gave hini either a bank 
 cheque or bank notea for the balaiwe on hit* next vinit to Quebec. 
 The exchange waa endoraed by Mr. »ru«l»huw, the manager of the 
 Quebec Brauuk ol' tlio IJuuk of Upper UaimUu in tlt^ umuuI way. 
 
 Qnfttiim — > 
 
 Do you know any other matter or thing tending to nhow that the 
 transaction, ao far aa the ('ity of Toronto waa concornedj wna bene- 
 ficial to the aaid City, or that Mr. Howea did not niuko lio of yr 
 re<}uire to make uae of any influence he may have had aa Mayor or 
 •Aldernjan of the aaid City in udvancing hia own peraonal intercMta, 
 in the trauHaction referred to in the pleadinga in thia cauae (lither to 
 the detriment of the interentH of the auid City or otherwiae t ICan yoii 
 explain more fully than you have done the circuinMtancea of Ihe loan 
 from MeaarH. (Jlyn, Milla & Company, and the way in which t^t firm 
 wiiH Hccured in the Huid loan obtained from them for the pur<^ha»»e of 
 the aaid debenturcHr 
 
 4 * ■'■■•••■ \ ■•'" ' 
 
 AiiHicer — 
 
 I believe that I have already fully stated the advantage of the 
 tninaaction to the City of Toronto. I am not aware that Mr. Bowea 
 employed any influence that he had as Mayor of the said City in 
 advancing his own personal interests, to tho detriment of the said 
 Gity. The transaction with (Jlyn, Mills & Company was a loan on 
 the special security of the debentures of the City of Toronto pur- 
 chased by Mr. Bowes and myself, which debentures were deposited 
 for their accountjn the Bank of Upper Canada, for which Bank they are 
 the London Agent, and receipts were given by the Bank acknow- 
 ledging that they held such debentures on account of Messrs. Olyn, '^^ 
 Mills & Company; and in no instance were drafts drawn by me ^ 
 without being accompanied by such receipts. The transaction must 
 
 \ 
 
 have been j^n advantageous one to Jlewls. Glyn, Mills & Company, 
 
 f 
 
s^l?j«wWpfe 
 
 
 
 ilj(ni«;S,*p jiiiBi,,,ii = 
 
 ^ >■■ 
 
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 186 
 
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 V. 
 
 il^^ 0'^ 
 
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 M th«y Rot fif« p«r coiit. fi»r their advanccw, whilo the initrkut raluo 
 of iiuirioy at th« tiinu wan m\y two and a half per cottt. Th« iii()ti«y 
 WHu ropnid t<» MoMrnt. (Jlyii, Milltt & (NnHpony by drafb, «f mine on ^ 
 Moiwn. Mttnteniiaii k. Oumpany who ar« bunkitrH for thu imrtitni. to 
 
 ; whom I Hold tho dob«r)tun»» pun-haikid IVom tho (!ity of ToroB|jU>. 
 
 / With that mil0 McmtN. (Jlyii, Milln & Oompftny luid iivthiiiK to do, 
 nor w«ro thuWov^ «iff(iir«d to thorn by nio. "^ , ' , ;. 
 
 CVww rxijmiaeU h»f Mr. A^drrto Stuart, a» (huntd J^f tka 
 
 ■ f 
 
 QuejUum. 
 When^id you return from England; in eighteen hundred and 
 
 I iWurned to Quebec on or about tho thirtof nth of Juno of ttil/ 
 yew jyl arrived at Quebec, I think, on the twelfth or thirteenth. * 
 
 / 
 
 m 
 
 ktion—' 
 
 '■' / 
 
 [efore your departure for England, wfts it generally undorttood 
 tWt some aid would be, grant«^d by the City of Toronto/to (h* 
 'Wtttrio, Simco<| and }[uron Union Railroad Company? / 
 
 a 
 
 Yes; it was W^l undcrrtood ; and I think rcBolutions of the City 
 Council ^v^ero passed a conflidcrable time before pledgiujj the City to 
 grant sucihjiid. / 
 
 Question-^ * 
 
 Had you any conversation with Mr. Bowes on the j subject of the 
 debentures likely to b^ issued by ^he City of Toronto in aid of this 
 railroad previous to your departure for England ? 
 
 Answer-^-' ■■"'■ ■•■ ^- ..-^ ^ ;■■..: .; ' / .. 
 
 I had no such conversation with Mr. Bowes, or^th anybody else, 
 prBvious to the twenty-fourt h of Ju n e, one t j ^i pja and eight hundr e d 
 
 and fifty-two. 
 
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 Questlori—^ ' 
 
 ^'hat amouut of debclHures did Mr. Bowes first propose to yott 
 to purchusc; and was such prupusal made iu writing or verbally, and 
 when and where ? \ 
 
 A ' ■■-'-' \ ''■''•■V ■ ■ ■■ A".. . ■■ ■ . 
 
 Answer — ■ , \ ■■■ ■ . .— '•^. 
 
 The proposal' was made I verbally to me at Quebec. I think the 
 the amount spoHen of wai cither twenty-four or twenty-^ye thousand 
 pounds. I think that we must have had conversatioiv](!it the time 
 with Hference to the remainder of the debentures, as it #a8 expected 
 that the railroad company would gel in all sixty thousand pounds 
 which, under the terms of their agreement with the contractors, were 
 to be taken by them in payment. -'The proposal was made' to me on 
 the twenty-fourth of June, one thousand eight hundred and fifty^wo. 
 
 Question— '7., " ■ ~ ^' " ' 
 
 Had'-you any other and how many conversatioha** with Mr. Bowes 
 subsequent to the said twenty-fourth of June, on tl^ subject of these 
 debentures, previous to your finally agreeing -to purchase them? 
 
 An$icep-— \' '! . ■ ■■ ' 
 
 No; I may have had two or more conversations with him on the 
 twenty-fourth of June^ bUt he left Quebec either on that day or the 
 next. I did npt see him ag-ain for several weeks. I told him then^ 
 (that is on the twenty-fourth of June)7^tliat if the owners of the 
 debentures would sell them at the price whicn^e told me he thought 
 they would that I would join him in the purchase. 
 
 Question— - 
 
 After agreeing to the purchase of the debentures in question; did 
 you enjoin secrecy on Mr. Bowes of his or your connection with the 
 purchase, and when, and from what motive, and was it in writing or 
 orally? ., i-___ 
 
 ■ :^ ■ 
 
 I have no distinct recollection of the time or mode of communicat- 
 inp with Mr. Bowes on the subject of secrecy, but I have no doubt 
 
 . 
 
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 I 
 
 .CtaiAi^^^^: 
 
./;■ 
 
 that at some time in tho early stage of the transaotion I did impress 
 upon him tho importance of keeping the transaction as a most con- 
 fidential one. My belief is that any prudent person engaged in such 
 a transaction would adopt such a course; but I am ready to adniit 
 that the course pursued towqrds me by the press did influence me in 
 wishing to prevent their obtaining any knowledge of my private tran- 
 sactions. I was not influenced by any feeling that the transaction 
 was an improper one, cither on the part of Mr. Bowes or myself I 
 mentioned the circumstance confidentially to some bf my friends, and 
 I was aware that Mr. Bowes gave the same confidence to at least -one 
 of his friends; It isjlie custom of all persons who engage in trans- 
 actions of ^his nature |to keep them as secret as possible, and this is 
 one reason why the intervention of brokers is generally sought. 
 
 Qucitlon — ' ■•' •'• : ■ : ■'-'.■ 
 
 Are you aware that after Jlr. Bowes had purchased the debentures 
 in question, he declared iaa meeting of the City Council at Toronto, 
 that he was not interested in them^ or in their negociation ? Had he 
 your sanction for making such a declaration in his place, as Mayor of 
 the City to the City Council ? 
 
 Aniwet'^— ■■ ■' ','■ .:;.•' _ # 
 
 I have seen by the newspapers that Mr. Bowes is reported to have 
 made such a declaration. He had not my sanction for making it. 
 So soon as I became aware that Mr. Cotton and Mr. Bowes had 
 quarrelledj which was about the latter end of November, one thousand 
 ^ eight hundi-^d and fifty-two, I was perfectly aware that the transac- 
 tion could not be kept secret, and I either directly or through a 
 friend in Toronto^ or in both ways, authorised Mr. Bowes, and 
 adviicd him to state every fact coiiucctod with it. My belief is that 
 this must have b^en some time before the declaration of Mr. BoWes 
 in the' City Council alluded to in the question. I should say, in con- 
 versations^with Mr. Bowes on the subject, he invariable declared that 
 so farijs he was concerned he had no objection to the transaction 
 being m|ide public, but that he knew that my enemies would make 
 it a subject of attack on me, and it was for this reason tW I was 
 particidar in communicating my desire that he should state'the whole 
 matter. i ■ 
 
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 . 18& 
 
 IIow, many letters did you receive on the 8t^%ct of these dcbcn* 
 tures from Mr. Bowes from first to last of thi^trtuisaction? Please 
 produce them, or account for not doing so, andjtf y^ have destroyed 
 them, state particularly when and why. ^ [^ 
 
 . '■ ■ ' ' ■ . ■.; ' .. :'■ ■ • .^ "0 ' 
 
 bmccr— 
 
 Ireceived a great number of letters from Mr. Boles during the 
 latter part of the year one thousand eight hundre(|?and fifty-two j 
 Ihey were on a variety of subjects, and Mr. Bowes w^ in the habit 
 of writing on all such subjects in the same letter, ^ey were prin- 
 cipally on the subject of the Toronto Esplanade, the' Toronto and 
 Guelph Railway, for which he wanted the Provincial Guarantee, a 
 Separate Divison Court for Toronto, and other matters which I do 
 ' notparticukrly recollect. IJ«iJ.e,not, to my knowledge, any of Mr. 
 Bpsjea' letters in my possession! I cannot recollect the"precile time 
 iSyhey were destroyedj but I re-edlect Ka^ng soflK of them in 
 :my possession in the autumn of one thousand eight hundred and 
 fifty-two, because Mr. Bowes happened to be at my house where these 
 •^itli other letters were lying in an open desk, and he made a remark 
 upoiix the loose way in which I kept my letters, and said that ho 
 thought t\ey ought to be destroyed, and, I think, said that he. was in 
 the habit o^^estfoyin^ mine. I told him then that I would destroy 
 any that I hadj\and I subsequently destroyed them w^eu destroying 
 oth^r fetters.' ;I treated them just as I do aU my private correspon- 
 dence, unless where^ome special reason requires their retention. ^Ir. 
 Bowes' letters contain^ very little on the subject of this transaction, 
 /as he took no pdrt' whatever in the management' of it beyond obtain- 
 ing the offer of sale from thle contractors. It is very probable that Mr. 
 Bowes iliay have written' me ^n the subject of the bill for the consolida- 
 : tionofthe City debt, though 1 have no recollection that he did so. I 
 think that he principally comniunicated on that subject with Mr. At. 
 Gei; Richards;. and that any ipemmunications on that subject with 
 Richards or witl^ me.were verbal.; Mr. Bowes seemed anxicwa that Mr, 
 ; the City should not be required to provide a sinking fPd. The 
 • Government had fully considered the subject of a sinkirig fund with 
 reference to the Consolidated .Municipal Loan Fund Act for Upper 
 Canada, and determined to insist W a silking fund of a similar 
 
 I 
 
 on 
 
 CO 
 
 II 
 
 tr 
 m 
 
 <^ fi 
 
amonnt be?ng pTOvUled in a 
 
 - ''^,: 
 
 189 
 
 au.v»..v «— r, ^ ^^^ Corporation lioan Acts, and tliis 
 
 courarWas folliwca i^lie chses of Montreal, Toronto^ KinK'ston an* 
 Hamilton. Among the letters from Mr. Kowea, which have been 
 destroyed, must have been hicluded any containing references to tho 
 transaction 'in the Toronto debentures. I cannot possibly say how 
 many of these letters had reference to the debentures. 
 
 Question — ' 
 
 Were the letters having reference to the debentures written to you 
 by Mr. Bowes, or in the name of Bowes & Ilall? 
 
 Answer — 
 
 They were all in the riamo of Mr. Bowes himself; bui in the 
 letter acknowfedging tho ^ceipt of the exchange he told mc that tho 
 i^ firm had used it. 
 
 /•* 
 
 Quvuetion — ■ 
 
 Was that the first LcaMon upon which the name of the firm 
 appeared in connectio^ with.this transactioa? 
 
 ,/■■■■■- -,.■ .*■. : ■■ ■-«-,■ 
 
 ■ Yes. - - ■. ;/■-■ 
 
 „ " . f . ■ " • ■ 
 
 / ■ , ■ ■ .-■...• ■. ■ , ■ ■ , . 
 
 Question-^ 
 
 Did you write t<j Mr. Bowes on the same subject, and how often, 
 and were your communications addressed to Mr: Bowes, or to Bowes 
 & Hair ? Product copies of all the letters you so wrote, on the sul)ject 
 of these debentures. . , 
 
 I wrote frequently to My. Bowes on the subiect of this debenture 
 transaction, as wdl as on other matters, respectibgwhiahe addressed 
 me. I always addressed Mr. Bowes, and not the firm of Bowes & 
 Hall. I have no mean? of judging how many letter^ I' addressed t» 
 Mr. Bowes. I^aa not in the habit of keeping co^es of them, and. 
 I very seldom keep a copy of any unofficial letters. I have a private 
 
 '^« 
 
 iii 
 
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 it 
 
I 
 
 
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 rnmn^ 
 
 140 
 
 letteisbook, which b at present mtslai<Lbut I am certain it contains 
 no letter to Mr. Bowes, and I hav^o aekkrthc gentleman who toplod 
 the letters which arc in that htx/k, rti.llio jiIs.. i.^ certain that it eon- 
 tains no such letter. Ian, thercFore convinced that I have no copy' 
 ,ofany letter which I have addressed to. Mr. Bowjcs. 'I have not had 
 any letter copied in that private Icttor-bopk for the last twelve month's: 
 The boojc I have no doubt was mislaid ;when I changed my rcsidencd 
 
 last summer. ' . ' 
 
 ■ * • ■■■,-.'. • .-, ••...■•■•■• ^ ^ '- ■. ■.; .... ,_ - 
 
 ■ : ■ '■ ■■■;, - .■^- :.■ . .. It . V ■ ■ ■ 
 
 Question-^ ': , . 
 
 How mwiy letters hai you tmtten to and received from Bowes on 
 the subject, of the debentures pre^vwus to your letter .of tile fifth of 
 July, one thousand «ight hundred and fifty-two to Mr. Jlidout? ^ w 
 
 Answer^- 
 
 4. ■ 
 
 u 
 
 / 
 
 
 I had" received one, and I tliint had written none. * ", ' ' 
 
 ■ ' ■' - : , . , •,'■■;- t - ■- ■ ^ :■ .- 
 
 ■.■■■■' '■■ »»'• .-, . 
 
 ■ - • ^g ■ ». ■ ■ . ■ ■ - " . ■ ■ 
 
 Question'^'. ■.'":; "■■'*"■ "■■ •/■ .". . • ■•■"■■;■ '■■■'' 
 
 f ©id you write by the same mail to Bowes, that is by the mail of ' 
 thefifthofJuly? . • - . 
 
 ■ - '. ' ■ ■;• ■ , - o -"' 
 
 Yes, I have ho doubt that^ did so. IJiave i^o copy^f thatltttcr. 
 
 ■ ■ ■ -■■ / ■ .. ■■ V ' ■ '. . ' ■ .■ , . ■■ . . 
 
 Question — ' -■'-.'. '■'. .■ 'v"'-^- '.. ■.'',■■'"";.-;. 
 
 ; In your conversation with Mr. Bowes at Quebeq^was it agreejl that ' 
 you should purchase twenty-four thousandor fifty thousand pounds of ^ 
 
 debentures ? , 
 
 Atuicer-^ i . . . ' 1' . , ' . -■' ' ' V-' ' ' ,• ^ 
 
 • - ■ ■■ "1 . ".-■.■. i: 
 
 ^;, My recol|ection is that the suih was twenty-five thoiKand 'pounds. 
 I ailerwarda learned that the amoupt at the disposal of the contractors 
 was fwenty-£)ui^ thousaUd. * ; 
 
 iQueitionr-^^ 
 
 ^ When wereySu first inforiSied that|istcaa of twdhty-fourlthousand 
 j* pounds there wtere ty be iyued jto the BaUTfrajr company fifty thousand 
 
 "% I 
 
*^9^«*. iiw^ l^ '*f%'v^Wfp^ 
 
 
 141 
 
 pounds^of debentures, being the amount subscribed by the City of 
 Toronto, and by whom ? . 
 
 ^ 
 
 n8icei>—~ 
 
 I have no dpubt fhat I was informed by Mi Bowoa immediately 
 after tHb arrrtnjrement was effcxJtcd, but I do not recollect Uie precise 
 time, but it 'must have beeii about the'bcgiiining of August. 
 
 Qiifisfmn-ri '. 
 
 Are you aware Whether this change, was suggested by Bowes, and 
 
 strenuously advocated and promoted by him in the City Council of 
 Toronto? ' ' ■ . < ' - V • ' 
 
 IW'^^ 
 
 
 
 . Answer-^ '■' . ' ' ' ■""'".'', 
 
 T. am not aware that such is the fact. Ihavo hoard that the chanfeo. 
 
 ^ was suggesti)d by jMj%JJerczy; president of Ihe Rail roajj Company. 
 
 . The arrangement was m6st beneficial to theCity, and I am convinced 
 
 that the City will benefit to the extent Qf twenty thousand pounds by 
 
 ' thatHihange. ' ,; •' 
 
 ■ . . ' ■ ' , ^ ' ■ .»»■ - ■ 
 
 ■',:/: Question-^ '%--, ^^ ■ ''-''':.■' 
 
 - ■ ■ ■ ■- ^ - ■ . ■ ,.-«'' 
 
 Qn What day did you definitely' kgreo with Mr. Bowes ta purchase 
 \|he debentures ? v 
 
 Jinsjicer-r- .-' - ...';''■'■ -^ 
 
 , * Qn the twenty-fourth -of June a conditional agreement was made 
 
 which depended on the contractors being willing to sell on the termS 
 
 stated, and, on oulr being able" to obtain the necessary funds. The 
 , iSnal purchase I consider to have been made when ^r. Bowes accepted 
 
 ihe oflFer-which he had receive^d ab^Jut the thir^eth of June, an'^ ' 
 , which i Believe was on the eighthof July one Ithoi&and^eight hundred 
 
 and fifty-two, after having heard from me* ■. ^^ ^ ' 
 
 :noMedee;< 
 
 ,1. 
 
 Havejou any personal, kno^dge^of any of flie debentiires of the 
 r City of Toronto having been negotiated in Eng^nd and at what rate 
 jfifevious to £he proposition. made to yoii to purchase tiie debentures 
 inyiestion? " . • - - . ' 
 
 ■■ ■ ■■'tM 
 
 
 I'M 
 
 MA 
 
 T^ i 
 
 :■ iS 
 
 m 
 
 
#B "iwwmBTjw{T|4«™y«[ir«^qjp)r^s5j -jfj^^f^ 
 
 Tf^J*i:% 
 
 . , 142 
 
 Answer— " / 
 
 Ihftvo not, and I do not bcHcvo that any stich debentures were 
 sold in Engknd prior to the >ialc oftlie eighty-two thousimd ppuudu 
 BtorUng made by n»c. , 
 
 Can you say that at the timcof your agreeing with Mr, Bowes td 
 embark in the purchase of these debentures, no illegality "was alleged 
 to exist in their issue, of which the contractors werp aware, and would 
 not any such alleged Illegality operate to indued the contractors to 
 offer them at a lower rate than they otherwise would ? , 
 
 Amtpcr—' . ■'■:.. ^^ 
 
 I was certainly not aware that any such illegality had been alleged, 
 but I had been several montlis absent from the Province and out of 
 the way of hearing anything on the subject. I do not dunk that if 
 any well founded objection on the score of illegality existed the 
 debentures could have been sold on any terms! I consider that for^a 
 Jarge amount eighty "per cent, was at the time the full value. I 
 certainly would not have given any more. 
 
 Question-—' 
 
 Are yon aware that these debentures \w;re offered for sale at New 
 York before being offered to Mr. Bow<J8, and that their alleged' 
 illegality prevented an offer of; any kind being m^ad6 for them? y. 
 
 J.naM?c)*— ■ *■- ■■■.-'■" : ■ ■■' ■";■• . . ■ . 
 
 I am not aware- that sich is the case. I know nothing of any 
 offers except from hearsaW; but I believe that the feontractbrs had 
 tried in various places and) had been unable to get £^^ good an offer 
 as that madeiby Mr. Bowes. I have heard that Gaptaiii Strachan 
 made a conditional offer of seventy-five per cent, for them. I cannot 
 say whether this offer would have been accepted or not* , 
 
 % ' ■'.'■■■..■-' 
 
 Qnestum-r-y ■ - '' ^r "*■'■■ '*.;'' ■, ° .■ '■: 
 
 Were you folly aware ©f the doubt entertained of the legality of 
 
 ^ 
 
 ^ 
 
 
 
 these debentures before fihally agreeing for Uieir purchase ? 
 
^ 
 
 
 
 'tS- ' '?^^**T° rf j^~T^ ■»^' ' f "~™n^ ^"S^^ t" rjp'^^'Y ^e«^_^^W^*^J' ^"i^l^'SFWSi^nilW^ 
 
 ,' / 
 
 I.muft.bay^o been. 
 
 ■1.. 
 
 Question- r , , ^j^ 
 
 ' Con yott swear poHitivcly tlial IMr. IJowch* letter to you of pro 
 thirtieth oflJuue wan not delivered to you by Mr. Jumes Cotton? 
 
 /I should Inotiikc to swear positi>^ely< as Mr. Cotton has sworn the 
 reverse, but I can swear to the best of my knowledj^e and belief that 
 it was not. Such jyis and is nvy iniprcHsion, irrespective of tho 
 evidence furnished to irio^y the rejrister at Swords' Hotel, where I 
 
 , knew Mr, Cotton was ih the Imbit of stoppinfj, and where I think it 
 very iniprobablo that any error could occur in taking down tho name 
 of a pofson so well known as Mr. Cotton. ~ 
 
 . *' ■ 
 
 Question-^ * . , \, 
 
 "VVitholit reference to the register at Swords' Hotel, could you from 
 memory have sworni that Mr. Cotton was in Quebec on the twenty- 
 first of July, or on any other particular day in that month ? ' 
 
 1 
 
 Anhcer—^ 
 
 " No, I could not, I can only swear to his having been in Quebec on 
 that day on the faith of tho said register. 
 
 Question—' ■■ * - . ^ ' 
 
 ■7 ■ ■ , ■ ^ ' ' ■ • 
 
 Might not IVfr. Cotton have come to Quebec in the beginning of 
 CtTtijy without his name being inscribed on the register at Swords' 
 \Hotel, or without going to that hotel at all, or without going to any ' 
 hotel at all, in ca^- he returnSd on tlft same day that he arrived ? ^ 
 
 ■ - -- " ■ ■' '■■: "■".■' ' :■■' ■ ■ ,- / - ■ ; ^ • aa • .-■ .■ 
 
 ' Certainly h4 might. , . ^ ^ 
 
 - Questiotir— ■ . ■ .-r'' ':-,.'. '■■■' ,.-.■:■ 
 
 .2^ Can 'you swear positively that you had no conversation with Mr. 
 Cotton in relation to tie purctxase of tjtiese detienttires previoj^ to the 
 ' fifth of July one thousand eight Jiundred .and"My-two ? 
 
 '1- 
 
 
 
 m 
 
 
 U 
 
 
 ( iJ 
 
 I 
 
 \ 
 
 
 jf-'i- 
 
 •is . 
 
 til 
 
i. i' 
 
 *-^ 
 
 144 
 
 Antttfir-— 
 
 I hkvo no rocollcotion of hoidtirtg ahy oontrewation with Mr. Cotton 
 until mo day when ho dclivorod «ie a nealud letter from Mr. Howes, 
 to which reference has been already made. I opened and rend thitt 
 letter in his prcscnoe. I recollect his making' some roniark on tho 
 subject of the transaction, to which I replied, and ho then went on 
 to converse on other matters. Mr. Cotton was in Quebec on tho 
 twcnty-f«iurth of Juno. I am pretty certain that he did not call 
 upon mo 4 certainly he did *not with jMr. liowcs. IjKJH JU)l_aKSajr 
 positively that I had no other conversation with Mr. Cotton, but I 
 ^recollect no other. 
 
 Qttc$tionr-^\ 
 
 Did you atany time confide to Mr. Cotton your intention of pur>* 
 chasing these debentures, or d^ he obtain the information from any 
 one else, and from whom ? 
 
 Anstcer—i. 
 
 Any information that ho had on tho subjcdt must have been 
 diroctly or indirectly from Mr. Bowes, by whom I was informed that 
 Mr. l/otton Wa9 inhis conldenco. ' ~ - ^ .._.„_^,. 
 
 V. \ • -V ■■■■ - : ■:■/•■•■' ■ ; -■/;..."-■•..., 
 
 Question — 
 
 Did not Mr. Cotton in his conversations with you appear to know 
 of the intended purchase of the debentures? 
 
 Anitwer-— .].' ' W' 
 
 ■ I have already stated that, to the best of my recollection, I had no 
 iconvcrsatiqn with Mr, Cotton unlil after the purchase had been com- 
 pleted. I now recollect a circumstance which has some bparing on 
 tho time when I beeame aware of Mr. Cotton's knowledge of tho 
 transaction. When Mr. Bowes communicated to me Mr. Cotton's 
 knowledge of the transaction he expressed a wish that he (Mr. Bowes) 
 should not be known as concerned in it ^t the Bank of Upper Canada, 
 and said that hgjtould fflt Mr. Co ttfla.tp tran^gt any business which 
 might have Jo be done there with regard to the delivery of the bonds. 
 I particularly recollect this circuiSlanceJ because I regretted having 
 mentioned Mr. Jt^wes name in my letter of the fifth of July, and I 
 

 .^' 
 
 X 
 
 145 
 
 V 
 
 am thoroforo cortain ihat it must have boon aj^r j^hat time when I 
 bocamo awaro that Mr. Cotton was in Mr. R^irtog confidence. Jj^» 
 ■ igiuh8er|uoh|b Juttor I lucntionod to Mr. liiduutthat'thu bon^M would bo 
 depoBi ted by Mr. C otton or Mr. liowcs, ' -f - ' 
 
 Que$tionr—' 
 
 Can you Bay%hon Mr. Qowes gave his personal guarantee to the 
 Bank in favor of the contractors for eight thou.sand pounds, or any 
 other amount; in part payment of tKe price of the dcbeaturos, or fot 
 kuy other and what purpose ? 
 
 ^11 
 
 
 ■ • ,'l 
 
 
 
 
 %•■ ; ,! 
 
 
 
 I^B^E' 
 
 i 
 
 A 
 
 An»wer — 
 
 ^ 
 
 It must have bbon on or about the eighth of July, one thousand 
 eighty hundred and fifty-two, immediately after the receipt by Mr. 
 Ridout of my letter of the fifth of the same month and his determina- 
 tion to make the temporary advance on the debentures in anticipation 
 of Messrs. Olyn, Mills & Companjis letter of credit. I have n^ 
 a^Uoctiou-that I was informed of the advance in question, but it is 
 most^^bablo that I was, eithcj: by Mr. Kidout or Mr. Bowes, or 
 both. That advance was for the special accommodation of the con- 
 tractors and was given because tfie agreemeht for purchase having 
 been completed and the issue of the debentures authorised by the 
 Ggrporation, there could be no doubt of their deliveiy to the Bank so 
 soon as they Could be prepared. — 
 
 Question-^ 
 
 As this advance was made hy the Bank upon thelbonrity of the 
 Debentures, amd mth a fiill knowledge of their purchasvjjould the 
 Bank, at that dafe, have been ignorant of the &ct of Mi^ BoWes 
 being interestjed in tlie purchase of these debentures ? 
 
 Mr. Bldout (^ght to have been aware, from my letter of the fifth 
 of July, that suck was the case ; but the fact semns to have escaped 
 his attention, a$ I fcaow from his having stated in evidence Uiat he 
 was not aware of it, i^d that he was himself sniprised, on leferring 
 to m y lett e r of the fifth of July, to find Mr, Bowca' name men t ioned. 
 Mr. Bidout appears to haVe p«id little attention to the ownerahi^ of 
 
 if 5 
 
 
(TTT 
 
 1 ■ 
 
 f - 
 
 ' 
 
 '•■■.:,::,. 
 
 ■^■F*-^j" (ri^'''>^^W^''WT^ir^^^^*' 
 
 I'-. 
 
 \ ..k!... 
 
 ' ■ - 
 
 m 
 
 
 14U 
 
 K .: ■ 
 
 ■i). 
 
 I 
 
 ! 
 
 tho dobonturcfl,'hiH lulvaiico huviii); Ihhjii niailu uii the security uf tlio 
 dubunturol, mid nut on porHonul Hucurity. 
 
 .•■1 '•■■ ■■■■:' ■' ■ 
 
 How iiiniiy htto.rn pn^Hcd Wlwoi'n you niid Mr. Hidnut on tho 
 Dubjoct ofthitt loan by the IJuiik ? nnd hayu you bin It'tten* to ppduco t 
 
 v 1 cannot say how many lotterH pussed between un'on thin Hubjcet. 
 
 j I have IVeqnont corrcMpoudoiK-e with Mr. lUdout on vnilouK nintteb*, 
 
 } demi-official ajid private, none of which, to my kiiowlodfro, I liuvoin 
 
 \ f, my poHseHsioii, ujdeHs* it be huch as have betm received within tho 
 
 f' fast three months, uiy corrospondonco during which period I have 
 
 not yet destroyed. v 
 
 Qitcstion—f . ' \ . . ^' 
 
 How lonp, after having informed Mr. llidout that Mr. Bowes was 
 interested in the purchase of the debentures in <iueHtion, was it that 
 .]. you wrote to him that ho would receive tho dcjbontures either from 
 Mr. Cotton or Mr. Bowes ? 
 
 Amxef- 
 
 About a month. 
 
 !fi -fi 
 
 I'ii- 
 
 For what reason, then, if Mr. Cotton was wholly unconnected with 
 the transaction, did you suppose that he^Would bectftne possessed of 
 the debentures, and hand them to Mr. Ridout? .. • 
 
 AntAer— 
 
 As I bave idready stated, it was becauto Mr. Bowes wrote to me 
 informing me that be woul^jl get him to do so. 
 
 ■''■.■ J 
 
 Question— ^ /^_. , _, _._ ^a, 
 
 ' [The Defendant^ » Ckmnsd objects ta tJiU question, but obJectuM* 
 iwt allowed by ike Commiasionen.l ^ 
 
 Did you at any time, and when, write to Mr. Cotton on the subject 
 of disposing of Municipal Debentures in England oncommission? 
 
 / 
 
tlio 
 
 tho 
 
 cct. 
 
 oin 
 tho 
 ravQ 
 
 that 
 rom 
 
 nrith 
 d of 
 
 I me 
 
 . 147 ,■ ■ • ■■■■ ;-'. . 
 
 Produce a copy of any letter you luny hnvo h«vo written to him on 
 tho Huhjoct. 
 
 Anncer—- 
 
 I hud no recoIIt!ction of hnvin];!; written HUch n letter until I 8MW. 
 Mr. Cotton'H eviih-iico in this eiwe. I kcjrt no copy of tho letter, but 
 have, since Mr. Ootton'H evidence wiw given, »ecn n c(»py of the Hnid 
 letter. I have niiMlnid this c(»py, but nin certain that T have it Honio- 
 where in my p<«He«Hion ; it ha« nO rjulation whatever to tho tranHaction 
 with Mr Bowes, to which the prc8cnt cawo relatCH, nor to any othof 
 transaction with Mr. Bowes, no-far as I know, ca reading it. I 
 recollected that, a few days before n«y departure for England in tho 
 early part of one thou-sand eight hundred and fifty-two, Mr. Cotton 
 wrote mo on the «ubjoct of seUing some debenturcH which ho was 
 likely to get as a contractor, and which certainly were not City of 
 Toronto debentures. I gave an opinion, in my reply, as to tho valuo 
 in England of such debentures as Mr. Cotton referred to, and that 
 opinion was that they were worth about ninety-five per cent. I 
 referred to sterling debentures payable in London. My belief is that 
 tho debcnture/i refeiTcd to were to bo issued in aid of *tho Toronto' 
 and Guelph Bailroiid by some nmnicipalitics on tho lii)6 of that road, 
 ' but I am not certain. I told >ir^jCgtto n in in ; y r ejljr, that ifhe sent 
 any such debonturcs to mo. I would endeavour to sell them for him, 
 charging tno Usual c^omimssion, which ho proposed to allow in his 
 Tetter to mo, to the best of my recollection. 
 
 Qnestion^^. ." ■ ,V • /'„" 
 
 fiVas it distinctly understood by Mr. Bowes, at the time you agreed 
 
 to join him in the purchase of the debentures, you afterwards pur- 
 
 chaflod together, that you expected to get the money to pay for iftiera 
 
 from parties 'in England, and that you would communicate forthwith 
 
 • with these parties ? ' ' 
 
 ft 
 
 »*i 
 
 ii -I J 
 
 
 i 
 
 iUfw' 
 
 bject 
 ion? 
 
 
 Ansicer-— /''"' 
 
 - B was so distinctly understood. 
 
 Question'—: , ' 
 
 ~ You Hay,iin your letter of the fifth of July, one- thousand eight 
 hundred and fifty-two, to Mr. Bidout, that you had pot expected the 
 
 -, j^A 
 

 f-- 
 
 1 
 
 ■^ 
 
 148 
 
 City would iMuo itM bon«lN ho mcmid. Wm your Iiiiprnmion iw to tlut 
 tiiiio tho (yity would iMtuo itMlHiiulH producod by your cuuuuunicationA, 
 verbal or writtun, with Mr. Dowoh? 
 
 " ■ ■ ■ 1 
 
 My imprcfwjon must Imvo been dorivod from my convorKation with 
 Mr. I)owcH, but I^hiid only rvforunco t4> u Hhort period of time. I 
 wail woll awaro thnt tho dubonturcs wcro likuly to ihhuo before very 
 long. „__ ^^_ L_^j . '. . -^ L^ ^ .• ' .^— 
 
 Qurntion- — ' 
 
 , Though Mr. Bowor may hftvo had an intorcMt in tho innuing of tho 
 debonturos after he gave security to the liuiik, uuiy he not, proviouMJy 
 to that time, have Uiied h\» influence tu ruturd tho iiuiuiu|; of tho 
 , debonturcH? 
 
 Antwer-' :^ 
 
 I do not SCO how Mr. Bowes could havo oxoroiscd any influonoo in 
 the matter. I had undertaken the entire iinanoial m'unagement of 
 tho transaction, and I am convinced that I did not suggest to him 
 to delay tho iflsuiQg of the debentures. 
 
 . ■ ; ' . ■'■' ■ ■ ■■ ■'.■•... .'■■,. ' " ■■ .''.T' ■ 
 
 Quention-— " 
 
 Was not ybur proposal to tho City Council of Toronto, made 
 through the Cashier of tho .Upper Canada Bank, one to tolte the one 
 hundred thousand pounds authorized to bo issued Under tho Toronto 
 Loan Aotat par? \ ' ... 
 
 Anwoef— ,• / ■ 
 
 Tes ; oonditionally^on their receiving, in part payment of the same, 
 tho fifty thousand pounds of debentures, tho legality of which had 
 been questioned, and which it was one of tho objects of the Act to 
 legalize. >< 
 
 
 QuejUton-— 
 — Is4i 
 
 Ik 
 
 oi 
 • tr 
 
 ji^- 
 
 \ 
 
 L- 
 
 V i 
 
 I 
 
 not true that fifty thousand pounds of the said tean wl^iieve ir 
 came to be appropriated by tho act itself, to tho redomptioa 
 
 I '• 
 
 ■r 
 
,v 
 
 *> 
 
 14» 
 
 . of Iho ilobontorofi you and Mr. Ittiwoii had purnhaMod IVom thft con- 
 • tracUinif 
 
 Yon, ■uob WW th« oaMO. 
 
 ■ . ■ ;. Was not Mr. Bowoh at Qiuihco during the pnHMTmg of tlio t|ct roforrod 
 to in tho lout qu(Wtion, and w«ui ho imt hoard before tho Conunittco of 
 th« liOpishitivo Awjcnibly, u» Muyor, upon tho propriety of tho 
 mooBuro? 
 
 An»wer— 
 
 V- 
 
 Mr. Bowos wofl in Quoboo ubout that tiriio, and nmy hayo boon ta 
 ezauiined, but I huvo no knowledge that ho wum. 
 
 Ih it not truo that Mr. BovfcH intorontod hihuolf in tho ^i^i^ ot 
 tliat aet? 
 
 4 , 
 
 I huvo no doubt that l\Ir. H*)we« exerted hinisclf to got tho act poMiod, 
 but there was no oppoHition of any kind to the measuro retiuiring the 
 use of influence of any kind. ..,'*% ' 
 
 Qiteitum'-^ '^ ■■■.\ *■..-' ■ ■ '■ 
 
 Is it not true that tho act, as finit introduced into the Logislativo 
 
 Ansonibly, did not 'contain wlmt aro now its fifth and sixth olauMt; 
 
 and that they were added in its passage through tho house ? 
 
 =« 
 
 
 / 
 
 /; 
 
 
 
 
 ; i. 
 
 r 
 
 • / a 
 
 ' v.- 
 
 t •*! 
 
 .•^ 
 
 AMwer—- 
 
 I have no knowledge that such is the case; and I do not believe 
 it to be so, as I have already stated I took no part in the passing of the 
 said bill, and have no knowledge of what may have taken plaee in the 
 select committee. I have seen the office copy of the bill as printed 
 for the house, and with the exception of somo unimportant technical 
 — cor r ections, in Mr. Wlcksleod's Itaud- wr itiug as law clerk, it is in the — 
 •hapo in wjiioh it afterwalxhs became kw. It seems to me jmjgoifBblo 
 
 ').. 
 
 '.•a 
 
 if ^ tf 
 
 ^ 
 
/ 
 
 e 
 
''^S^|J"-t 
 
 •li 
 
 C'-«: 
 
 
 >■*;► 
 
 f'- 
 
 160 • ■ 
 
 UiBt tho fiflh and sixth clauBcs could have been omittod in the ori^nal 
 
 Quention-r- ■ . '^- " , ■ ' , ,..' ' : ' ' ' 
 
 Can you say who suggested the two clauses in question, and that it 
 Was not Mr. Bowes ? 
 
 Amiter — '" -"'"• . A ■ „.■-':■■'■ 
 
 I cannot say who suggested the clauses in question; but the fifth 
 
 clause is framed to meet the distinctly expressed wishes of the Cor- 
 
 ^poration of Toronto, which had decided on subscribing for fifty 
 
 ; %)U8and pounds of stock in the Ontario, Simcoe and Huron Bail- 
 
 • md Union Gomjwny. The sixth clattse merely relates to the sinking 
 
 ^■fiind:;.. .-^..'^.^v .;■■■■/ 
 
 _■.■ . : ■... ;■ -;|IV- ■■,■.■■ 
 
 Question—^ t • 
 
 If Mr. Bowes did not^suggest the twip clauses in question, is it not 
 : true that they met lus and your endre approval? 
 
 .if^ 
 
 1 ■/ 
 
 Answer — - 
 
 There is no doubt that they met our approval, although "my belief 
 18 that if I had drawn oi* suggested the fifth clause, I would have 
 worded it differently, although practically the change I would have 
 made Would have l)een of no importance. 
 
 ■ /QtiesHon-^ ■, ■■■ ■■ ;■ * ■■■■', . ■■•''■ ■. 
 
 / Bid not Mr. Bowes inform you, about the time the purchase of the 
 ■■■J debentures was made by you, that there was a distinct understanding 
 - 'J^ that application was to be made to the legislature to le^ilize them ? 
 
 ■/-■■-. Answer— ' --^^ ■ . ' '. "'■■■. '...':'■ 
 
 f I have already stated that I" became aware of such understanding 
 
 \ immediately after the discussion on the passing of the by-law m the 
 
 City Council I have no doubt that ifheiard^ ftomMr. Bowes, and 
 
 that I also learned itfrom the public papers. 
 
 Question- 
 Without there being any agreement in words that you and Mr. 
 
 ■^' 
 
 Bo 
 
 it I 
 wh 
 the 
 mi 
 del 
 
 par 
 
 test 
 
 ^ mil 
 
 qu( 
 
 ;:'.^.itc 
 
 .^f cas 
 
 f 
 
 1 * 
 
 mil 
 
 V froi 
 
 del 
 
 the 
 
 .s. ■ i 
 
 ofl 
 
 par 
 Le, 
 
 itse 
 
 by 
 
 6X9 
 
 An 
 
 qU4 
 
 hoi 
 

 ^■^W^i' "} 
 
 ■'dfe* 
 
 151 
 
 BowcK should each use his iuflucnoe t<> logaliH&thcHO debentures, wn» 
 it not matter of courw) that you nhould both exert yoiir influence^ in 
 whatever "Way your interest in this matter would indicate, to obtain 
 their legalization, and could you iu fuirncss to j\Ir. Bowes, or with 
 JEtny regard to your interest; have oppoHcd an act lo^li/Jng these 
 
 debentures^ or do othenvise than give such an luit you^upport ? 
 
 ■ ■ ■ • - ■ '-*■■• ' ■ ■ ' /''' . ■ - 
 
 [Objected to by the Defendant's counsel : 
 
 ist. Because it is a deducfion to bb argued froin the factHstjited (»n 
 part of the defence, atid one to Avhich the witness cannot properly 
 testify from any knowledge of his owii, as to what was pusMing in the 
 mind of Mr. Bowes w^erc no words passed j and becausa, if the 
 question cannot bo properly answered with regard to the nefendant, 
 it cannot bo asked with regard to Mr. llincks, who is no party to the 
 0886. ., ■ :■. : ... .'■ • " 
 
 2ndly. Because there was no reason that could suggest itself to the 
 mind of the witness, bearing upon the introductory part of the iiuestiou, 
 from the fact that the witness was not aware of the illegttlijy of the 
 debentures at the time of his agreement with Mr. Bowes to purchase 
 them. And 
 
 d 
 
 
 3rdly. That this question does not properly follow from any part 
 of the examination in chief, as the exercise of any influence on the 
 j)art of 'the witness, either as a member of the Goverament or the 
 Le^lature, is expressly negatived ; and as regards the Legislature 
 itself, it is proved there was\no opposition to the bill. This is proved 
 by the witness, both in his examination in chief and in his cross- 
 examinaticto.] , 
 
 r ■ r ' ■ ■ ' 
 
 \Ohjectwix reserved for the opinion oftiie Court-I 
 
 Amwer — • ■'■ 
 
 ' tinder the circumstances attending the issue of the debentures in 
 question it would, in my opinion, be a matter of course that every 
 honest man would be bound to support p, measure for giving effect to 
 the understanding between all the parties interested at the tjme of 
 
 * ^! 
 
 1 , J j 
 
 I 
 
 
 
 
 .v,.^ 
 
' ■ 1 "i ■ 
 
 '!: ! . - . 
 
 I' 
 
 I 
 
 x. 
 
 162 
 
 f 
 
 the passing of, tbe by-law. I consider tbat^ opposition to such a 
 measure i^onl9 be an act of fraud. It hoycr entered into my imagina- 
 tion at any ^me after Ilieard of the allogod illcgulity that opposition 
 would .be made to the measure necessary for legali;^ing the debentures. 
 i, of course,^ of opinion that Mr. Bowes must have supposed, if 
 he. thought Imthe maUer at all, that I would support such a measure. 
 I am at th^ same time perfectly certain that Mr. Bowes never appro- 
 hcnded^pposition from any quarter, to the passing of such an act. 
 And^hat he did not seek my assistance as a partner in the transaction 
 iirom any idea that parliaments ry influence was necessary to seouie 
 the leg^ization of the debentures. 
 
 Was not the opinion of seveial eminent CooftPfil in Uppet €anada 
 taken by the City Council upon the Jegulity of these debentures, and 
 Were not several of those opinions, and, amOug othcra, that of -the 
 permanent Solicitor of the City Council, that these debentures were 
 illegal? • \^ ^Sx 
 
 Awtwer— 
 
 lam not aware at whose instance the opinions of Counsel 
 Were taken, nor am I aware of tl^ names of the Covnsel who' were 
 consulted. . I have always understood that there were ^conflicting 
 opinions on the subject. My belief is that Mr. Clarke Gamble is the 
 Solicitor to the Corporation; and I never heard qf his having given 
 any opinion on the subject. From what I have seen, I believe that 
 the opinions against the legality of the by-k^w were given by Mr. 
 Hagarty and Mr. Mo^at. — > 
 
 . .^. . . ..■.*-■",■"■. ' ■ _ 
 
 QuestlOTIr^' ■ ... -. ■ ■.-,; 
 
 *N Was there not a discussion in the Ciiy Council npon the legality 
 of these debentures, in which reference was made to there being high 
 legal opinions against the validity of the by-law for the issue of the 
 debentures, which discussions were made pnblio? 
 
 ; " " , ' "■..^- . '■ '•'^■'- ' ■" ~" 
 
 ■ ' , ■■..-' ' ■ ■ ■' ■"■...■ V. • : - ■ :' '.■.'. '^ 
 
 Answer-^ " ,'' .,-. -■ ^' 
 
 Yes j I believe such discus s ionfl took plac e , and w e re mod e pablio» 
 
 'v ■ 
 
 si^ 
 
mi 
 
 fc- 'i* 
 
 i^OtAtMtn— ■ . ■ ^ ■ . ■ 
 
 * Tm it ui»t true that with such doubfe>i upon the Icpility of those 
 dcbeiitiircs, it would hav«i been hai'dly posHiblo for you or 3Ir. ]J(jw^es 
 U> liavo dispDweil of them without having theiu legalized; and did not 
 Mr, lj«»we.s come to Quebec as Mayor, at the desire, or, at all events, 
 with the sanction of the City iCouncil, to get an Act passed legalizing 
 them? • , 
 
 Answer — -• 
 
 ^r^ consider that, tinder the circumstances, It 
 debentures should be legalized. 1 wimld nevdr 
 
 jSary that the 
 iijged in the 
 
 tmnsaction , had I ii tit bee n p^fectly satjsMd ^aW]^^^;^( iratitin of 
 the City of T«»ronto would be incapable of so.grotts an actof fraud, as 
 to huift..o»ritTcu takiijg th^pr()per steps to have the .said debentures 
 le«r«dized. T^im awau'c that jMr. Bowes, wlieu in Quebec, interested 
 himself about the p:is.<iing of the bill, and I mive nu doubt tluit lie 
 had the sanction of the City Council in so doing; but I believe that 
 he had other business for the City, which more especially required 
 his personal attendance at Quebec. I refer particularly to the 
 Toronto Esplanade. - 
 
 ' " f- ■■ ■■' 
 
 'Question-^ 
 
 Had you any correspondence witli Ma.steruvan & Company, on the 
 Bubject of City of Toronto debentures;^ and when first did you write 
 to them? 
 
 Answer— • 
 
 X never had any correspondence \rtth Masterman & Conipany on 
 the subject of City of Toronto debentures. ;'\ - 
 
 Question — 
 
 Had you any understandings or Was any propo.sal made by you or 
 them, and which, and when, with reference to the negociation in 
 Kngland, of debentures generally, or of City of Toronto debentures in 
 particular? 
 
 Answer-^ 
 
 '^-'.J f 
 
 ■n0>- 
 
 ^IJ, 
 
 ll 
 
 
 •\ 
 
 11 
 
 
 1 
 
 fiia 
 
 
 
 No. 
 
 ^-^^ 
 
 .« 
 
 '7 
 

 4:'i 
 
 i' •• 
 
 
 m 
 
 * 
 
 1 
 
 Qi^ionr^ ' ■ .,,;■■ ...■■■ Z"'*^ • ■ ■■' ■:.■,.' .•! 
 
 \^W Mastenftaq & Company in any and what w^^^ mixed up 
 witli the Bale of tko City of Toronto debentures, iosued under the 
 City of Toronto Loan Act? . ^ jl^ : 
 
 ■" ■ , ■ ^, . . . ■ . ■' - -^ 
 
 'I/am not able to state the position eccjapied by Mtusterman Ik 
 
 tSovipany in the transaction/ w all my oorrespondei^ce vfasirit^ other 
 ' partiies. \ v- . . . C^"^ ■ \ . ' ■■.:■■■.'.■:■■'■■■ ' - ■■• 
 
 4T 
 
 QueMtioni—;;^ 
 
 Had you any correspondence with Glyn, I^ls & Company ^n the 
 Jlttbject of City of Torohto debentures; i^^when did °you iSrst 
 address them on the subject f . ^|^ ^ 
 
 ' . '. ■■ "' . ■-' ■ ■ '^,-. ::f"'":'t' ■■■'■"-■ ''-^- ■ 
 
 I had such fr cprrespondcnce as I nave already stated. I am 
 unable tp state the precise ddfjr, Ibut I mlist have first addressed them 
 by die English mail which left Quebec next after I had agreed to 
 join Mr. Bowes in the purchase. 
 
 How often did you write them, and hear fiidm them in reply, on 
 this i^ubject, before tlie final disposal of the debentures by you y 
 
 Answer^-r- * ■ ' ^. /■■ ' 
 
 My impression is thali two or three letters ^m each p»rty may 
 have pasMJl on the subject. \ » / 
 
 Q^eUvm— ' ^ '.--':'-'' ■-'''■■'' ■■"''' 
 
 Did you not obtain the money or a credit from Glyn, Mffls & 
 Company to enable you to purchase these debentures; and produce 
 the correspondence which passed between you and them on Uie sub- 
 ject of these debentures? _ j^,;. :_ 
 
 ^r 
 
 9^ 
 
 ti^re 
 ,hM 
 
 i^Aiit 
 
 B 
 
 pfT 
 
 discc 
 
 have 
 
 •Qr« 
 
 Que 
 
 H 
 
 ciatc 
 
 Wbic 
 with 
 City 
 
 Aru\ 
 I 
 amc 
 resttl 
 IcOi 
 posit 
 aske< 
 had I 
 
 inter 
 -fiave 
 
< 
 
 ted up 
 [er tho 
 
 man Ik 
 Mother 
 
 1 
 
 ^n the 
 
 :1l. 
 
 , I anil 
 3 them 
 ■eed to 
 
 ply, on 
 
 f 
 
 ty may 
 
 )rodu6e 
 hesnb- 
 
 rkateBT 
 
 
 *> 
 
 ^r 
 
 166 ;- . 
 
 to them; and I have nd^ letters of theirs in m^pomession ori^the 
 i^Mt; llcnrtfieirTelter oFTcreSS to and it has not 
 
 to my knowlcd^ been returned to me. - Any priyatejlettor s ^hich 
 I m ay have: had fepm them on that or any other suhjcct, of 'anf0^der 
 i^teihantiiree or fpur months hack, have been , def^urofSd. 
 
 '.. Questtoa-^ ^« • 
 
 ;' Would you have rendered to the City of ^orontb the 8asie>service 
 ' youi«ndcred Mr. Bowes, in the sale and ne^odiauon of these deben- 
 ^ tmpes, if Mr. !Powes had applied to you for the pt rpose as Mayor^ and 
 }Ad offered you thd same interest in the transacti >n? 
 
 Had Mr. Bowes come to, me,' and proposed to 1 1^ to join the City 
 of Toronto in the purcha*^^ of a quantity' of th* ir debenWres at a 
 dlscounl;, with a view of inaking a profit,^ do not believe that I would 
 have consented to join in such a transaction with tWCity of Toibnioj 
 ' or any other municipal corporation. , 
 
 ■■■'■■" x' '■ . .. . ■ ,« .■-../ 
 
 Question^— . ' ' ' ■>■'■■■■/:; ■■ st' 
 
 Had Mr. Bowes, as Mayor, proposed to you to^buy, sell and fiego- 
 ciate the debentures in questionj which you .Ma Mr. Bo^|td bought 
 firOm the contractoiis, for the benefit of tlm^iiy,^iipon a bOmmisidon, 
 wbieh Would have yielded yOu an eqiiak^rofit upon the trausaotioii , 
 with that you actually mad8^w6tddjfbuh)Eive consented to aoi for.tKe 
 
 City? ■:;:>->;..-;. /:;^" 
 
 .■^j 
 
 Answer^— ^ 
 
 I never would have thought Jiinder tinjjijiriitiintttninnn^ of nrtii 
 a mere agent, and demandin»^e pro^t which was the legitimate 
 resttlt^a speculation involving great responsibility and great, anuety. 
 I cOuld not, therefore, if I ha|^' acted as an a|ent> have° occupied the 
 position which I did. J3- "^ "^ ^^^ TB^Mfe^ thpt }f T ha4 been 
 asked to endeagoigjo negoeMte a J ^an foy (h^ Cjjiy pf yoronto, and 
 had been offM»dUhe ugn^jjjBB^^ accepted 
 
 |%^P^>*^<>H JSL*Mfe?^^^ ?9 without 
 
 intemrence y^h my jublio duties. I have always consider^ 
 
 ' 1 
 
 ■I 
 
 ;jS-.''1 
 
 m 
 
 have fe e samejri^tto acc e pt eem| 
 
 semci a a r e nd e w ; ^ to 
 
 M 
 
 *• 
 
 
 • #' 
 
 ^f 
 
 11 
 
 ^V 
 
 Y.: 
 
 \ 
 
// 
 
 
 -*>l^ 
 
 150 
 
 ' I»ri\'iito iijlivitlunlH or coriH»r«tiou«,:.tlMit the Atturrioy fJenenil Iihh tt» 
 
 ' roceivtf folsn'or hm advice, or for services rcndcretl bylilin tu siiiiiliir 
 
 ., , . ^ .. . ,.„^ .z _.„i.«_,^ •->'....■ -..•■•• ' — ..»i.- ■«.>■<•'»•■ ■"■■• »■ 
 
 ^ purtiofl/ ' . ^^ Jk. , J, 
 
 w ■ ■ ■ : 
 
 ; ■ pitl you coiiimutru'ate "H the subject of the debentures boufrht by^ 
 ; /you and Mr. Bowes, with any other person or pei-soiis in Kn^land 
 besides Ulyn, Mills & ('onipan y; with whom and when? 
 
 -. -=^ — —^\—^ :. ■ ■.• 
 
 ' t ' '^ ■ ' ' \ ■ ■ --■■ "" ■ ' " • ■ ' 
 
 X do not rocullcctthat I did. 
 
 4 
 
 \Que8thn — ■ \ ■ ■ /. ■'■^' :''.■ /^ 
 
 ^liw not five per cent, been fixed by the Jejrislaturc as the sinking; 
 ^ fund for repayment of municipal deboiitures, au«l can you exphiin 
 ,why two per cent, was ad<»pted' in the Toronto loan Act. 
 
 1' 
 
 Amwer-^ ; 
 
 There was no ppcciaf nite" fixed by the Municipal Act of Upper 
 Canada ; that act required a nite. sufficient to pay oflF. the debt in a 
 certain term of years, and which I think w<mld have been between 
 three jjud four per cent, peruunum, buj that sinkinfr fund was not 
 
 ^ intendS^o apply to debentures issued in aid of railways, but to loans 
 (tf "a much more insijinificant character. It wjis dbvious that by 
 requirinfr so large a sinking fund, the intention of the legislature to 
 facilitate the construction of railways would be defeated. The rato : 
 
 . of two per ceirt. per annum was determined on without any reference 
 
 to the Toronto Loan Act, and was inserted as a provision of the 
 
 . general law for establishing a consolidated municipal loan fund for 
 
 • Upper Canada, which measure was brought in by the Government. 
 
 The^same principle was applied to the aties of Montrdal^ Kingston, 
 
 , Toronto and Hamilton. - 
 
 U: 
 
 Question-'-^ 
 
 T>id you communicate frankly with Mr. Bowes all you knew and 
 thought about these del^tures when entering upon the speculation 
 
/ 
 
 AtMwer — 
 
 ■■'*■■■ ■ ■ . . ' ■ ' ° ■ . .. •■ .' ' ■ ■ 
 
 Cortjijinly. T piyc him iny improsHlonH an to the pr(»|»ablo liso in 
 
 tho vuluo of (laiuulian Hceuritiu.s, uiid us tir tlic bust iiuKiu of ruiMiii||{ 
 
 .thu muiiey and eurryin;; uut tlic uporatiun. '^,^ ■ 
 
 -^ 
 
 ■ 1 • 
 
 Question— ' ^ . 
 , What reason hud you to bolievo thcHo debentures teoulu h«)| in 
 Kn«;land, and what repreHcntation did you make of their vahie to tho 
 peroonH with whom you coiiinjunieated on thq Hubjectiii Krtirland? 
 
 -I- -- . 
 
 Vr 
 
 I did not contemphtte welKnjr the debentures iu 1'<!»{i:l»»id when/I | 
 purchased them. My objeet was to'iibtain u tW(!lve ui«)nths loan jon J 
 their security; )ind to sell them from'tinie to time in siuall pan^els um 
 oppoi^tunity should offer. i 
 
 - • 1 ■ ■■-■'.' 
 
 Question-— ■ • ■ -^ ■ ■ 
 
 Wtmld not your 6fiieial ehaiwter of ]nspedor.«(leneraI haye ton- 
 tributcd to give coulidenee in these de]>entures to the pei>«on,s with 
 whom you co'inmuUieated as to their ssde, and thus ftic^^HfliTe their 
 Hale ? " •* . '^' ■ 
 
 " ' i 
 
 ■ I 
 
 C,i 
 
 Ahswer — , ' , ■■'■• ■'"■\ :/■■.'.; 
 
 It is very difficult for nie to e'stimate what iiiflucneo my ofReijiil , 
 posititm mitrhtf*'jj;ive to niy statements, but my belief is, that my f , , 
 English corresiHindents woul(| place the same reliance on any state- *i[t • 
 nients of mine, if I were out of office as they would do in my present' 
 po»itionv -: M- . i:~' :-- ■: •-■v,---. - ,-, • ■ ■ "• •, ■,... -'■-:vt*:-- ,^. ,-•.,>; 
 
 >l 
 
 ! 
 
 ^•'^1 
 
 
 m 
 
 Qi^stionr^ : : :''''"::\--:' ■^■^\[':- v" -: ^*' 
 
 During the tinid you were in corrcspohdencc witli Olyn, Mills & 
 Company on the subject of these debentures, had you oecasibh to 
 sddress them. likewise in y(|ur official capacity of Inspector General? 
 
 'ixl 
 
 Answer— 
 I think not. 
 
 I have not for a conslderahle time had occasion ta 
 
 Mfite uffidally to .Mes.srs. (Ilyn, Mills & fompany. — The regwlii 
 
 ill 
 
 ■■■V 
 
 r ft 
 
 Ml 
 
•■*; 
 
 /// 
 
 official oorrespondonco with that hotiBo and with Mcsara. Barings is 
 conducted by the Receiver Ueuoral, and seldom comes under my 
 notice. 
 
 Quettion — 
 
 Previous to becoming InHpector General, had you a private account 
 with Messrs. Olyn, Mills & Company, and ordinary private transac- 
 tions with them ? 
 
 ,- ," .■ : '' .■ vX'. ■ ■■■ . '■'- . . .'■■'. ' '/. '■.■'^'■'■:\.- 
 
 No, I had no such account, nor was I ncquainted with Messrs. 
 Glytf, Mills & Company untilaftcr I bctumc Tnhpoctor General. 
 
 Question. ' 
 
 What was .the exact profit made by you and Mr. Bowes upon the 
 purchoHe of the fifty thousand pounds of debentures from the con- 
 tractors ? And produce ihe account. * . - 
 
 ■ . • ■ , ■■''•■. ■ '-■■■- ■ » • . . " ' 
 
 ■ ■■ ■ ■ . ■■..■•■.■ . I " 
 
 Answer — '..• », *'.--*■ ■; ■ \ : :■' ' / ^ 
 
 I have no account to prod^^, the l*csult of the operation was that 
 I drew a bill of exchange on Messrs. Glyn, MilTs & Company for the 
 baknee At my credit with them, the proceeds, of which amounted to 
 eight thousand tlvo hundred and thifty-scven pounds eight shillings 
 and six pence eUrrency, one-half of which I paid to Mr. Bowes, .as 
 already stated.. - - ^'- " . ' ' 
 
 you' of the one hundred 
 tto under tbc^ Toronto, 
 
 J^ Is that not the profit upgn . 
 > thousand pounds issued by 
 • loan Act? ' 
 
 ■ ■•.'"■ ■'" , '••''. . ■ "^. ''■ '.':'■. '>*L .■"■'■■■ '■ ' ■ '" ■ f ■■■:■■-• ■ 
 
 Ansvatr — :': . .— ■:■■■', 'V'- '■■"^ ■"^•■' ■ ■■ v ■ "'■' ''>-'.-\ 
 
 I consider that there was a 'loss on the sale of the one hundred 
 thousand pounds, no portion of such loan having realized mr, * 
 4^, whereas the City was paid ^od^ ■ .. : v^ 
 
 - Questionr-^ y ■\-^'- "■■' '/',■'■ 
 
 — rr 
 
 1 
 
 , 
 
 >» 
 
 :* 
 
 ■ ■' ■ '^■ 
 
 V.*: . ; 
 
 ^ Had you taken fifty thousand, pounds only of debentnies issaed 
 
 1;. 
 
 •*K 
 
*■ ■ ■ ■■ 
 
 si' 
 
 1..' 
 
 
 ^ -'.'.- 
 
 ■ -''y 
 
 ■' ■ '- 
 
 
 v"-- V 
 
 •fc. 
 
 ■ ■ \ ^p 
 
 under the Toronto loan Act m payment of tho debenturoH which you 
 purchased. firom the oAntiiMtora, what then would have been your 
 
 profit upon the purchase of debentures by you and Mr. Bowes? 
 
 , " * * 
 
 Antwer-— ':'''.■'■' ■'-,■ 
 
 Had I received sterling debentures in exchange for the amount of 
 
 'the debentures which were purchased from the contractors by Mr, 
 
 B9wes and myself, our profit would have been enhanced by the 
 
 amount of the loss sustained on the debentures for which we gave 
 
 par to the City; but as we should not have received sterling deben- 
 
 tureb at all, unless we had purchased from the O^y at par, our profit 
 would have depended on the price at which We coujd have sold our 
 currency debentures in Canada; and as there was a rapid advance in 
 'the value of such de^nt^res, my l^ellef now is founded on infonnap 
 lion received froiif the brokers in Montreal witjMVhom I (K>rrespo]id| 
 and from other sour(!es of information, that our profit would probably 
 have been greater had we never interfered with the. purchase of the 
 new City loan of My thpusand poundsv ■ 7 ^ ' 
 
 ■ Qu(Utwn — ■ ; ■ .r . .. . . . -i > ■ . ■• i- 
 
 You have said that the exchange remitted^ by yj^tiio Mr. Bowea 
 
 .,„^aa drawn against.particular balances in the hands, of Messrs, Glyn, 
 
 MiHs and Company by the Receiver General, and that' it was sold in 
 
 the usual course ; will you state in what way exchange of this kind 
 
 is sold, and against what particular balances these bills were drawn ? 
 
 Atuwer—^ 
 
 I was informed by tho Receiver general that he had sent round to 
 ih9 different Ba,nk8 to ascertain what t^ey would give for the exchange 
 in question, and that is the usual 'mode which he adopts in selling 
 small parcels of exchange in the ordinaiy course df business. I have 
 no personal knowledge as to the frinds against which this, exchange 
 was 4rawn, but have no doubt that it was against dividends and secu^ 
 lities held on accdui\t of the clergy reserve fund, or the sinking fund. 
 I have already stated ihkt I did not know that the Receiver (general 
 l^d exohiange to sell,, ot that he had sold any to Mr. BradshaW, Qnti| 
 the bills were brought me to be countersigned. The exchange was 
 dra% n OP MessiB. Glyn, Mills & Company, MeaarB. Baring Brothera 
 
 il 
 
 
 '• i 
 
 ' ' '■"1 
 
 
 --r-44 
 
 ■'•I'll 
 
 -"-■'■ cA 
 
 ./■■It 
 
 - 4*1 
 
'•■■ 1. 
 
 .r 
 
 .;. -. ■■-■;•. ::.. . ■ICO-'. :t 
 
 QHeHion — 
 
 '^ Hud yuu cuiiimuuiuutioii (tf tli()..<(ut'HtloiiM put to you hy tliodcfuii- 
 daHt iiiidur tliu pruHciit comiiiiHKioii buforo tliu tiuiu uf your oxauiiuu- 
 tloii, uiid did you, lor tho nnwt part, prepare your uiiMWorx boforo 
 cuuiing to bo exuuiiued, uiid briii;; with you u uoto of guuh uiitiwcrHr 
 
 ..:•■•■'■». ■'■ *■ 
 
 Atuwer — ' * 
 
 I did BOO the fitfo.stiunH, wfeich wore shown trt mo by Mr. Gwynne, 
 aiid I prepiirud notes of my uuMwerH. I duMired in the cimrne of my 
 aHiHwers to thoMo quoHtionH to enter into u number of partieulura which 
 Hccnied to me to be pertinent to the Hubj(H.-t, inHtead of confining 
 myHolf to a nimple affirmative or ne«;ativo to Huch qucHtioni. 
 
 Qiiifhtion — '^ ? 
 
 You were not in Toronto in tho year ono thous.und eijrht hundred 
 and firty-two, previous to chwo of the month of November, iiHnmieurH 
 by your testimony, and therofi»re will you please say whether your 
 knowled<;e of what took place in reference to the issue of the deben- 
 tures to the contractors is derived from 3Ir. Bowes or from any other, 
 and what source ? , 
 
 ' Aiutwer — , ^ * ■; 
 
 I was not in Toronto until the hitter cnd-of Noveujber, in the year 
 one thouHund eij^ht hundred and tilW-two, and my information on the 
 -subject was derived from Mr. Bowes, as well as from the publio 
 prints. 
 
 ■ ' ' ■ ' '■■ ■ '' -.«■ ■ . '. "■ 
 
 Question — 
 
 Had you written to Messi-s. (Jlynj Mills & Company previous to 
 the sixth of Pcceniber, one thousand ei<;ht hundred and filly-three, in 
 a manner whii'h might call for their letter to you of that date, which 
 you have piodpced? 
 
 ■• ■■ \ - ■- : •'- .'. ■ . .:' : ' ."' .■■■ '-- ■■. .■.,,, ■■■. ■ :. . 
 Annfcef — < ■■■-^^ -';.-■ .--,-.•• ..■*■.„....■.■. ,^ 
 
 The correspondence on the subject originated in my getting a letter 
 from 5lr. Q. C. Glyn, M.P., very much to tlie same effect, in which 
 he offered, if I desired it, to send a letter explanatory of the transac* 
 tion, from the firm of which he is a principal member. I replied by 
 
 •^^^ 
 
 
 W- 
 
 '0& 
 
*- 
 
 •^^v 
 
 «. 
 
 I : 
 
 m 
 
 
 iH^sfr"*^***!" 
 
 4* *• ^ ' 
 
 I had not 
 
 ■UUng that I should b« glad to roooivo Ruoh a letter, 
 applied for any letter until it ^ras apontanooualy offored, 
 
 h " ■'■.■■•• ' ! . ■ W • ■ . r 
 
 i -■:■'.'"■'■:. ;-^' '! ■■■ - ■ • r':' 
 
 * Re-f^mmined hjf Mr. Attomeu OcMral Roaik '■ \\' , 
 
 Prior to tho| tale of the Toronto dobentui^ in London as stated by 
 you, areyott aware of any siinilar Mcu^rities of aoy other, Aii^ what 
 city in Canadi, being pretiously sold there, and of the price for which 
 they were sold? 
 
 Aimopr-^ 
 
 \ 
 
 I ^#e hoard thai City of Moistrsai ourrenoy debentures were sold 
 in London at leas than eighty per oeQt., but this is the only transac- 
 tion that I have heard pf in' currency debenturoi in London. I^ho 
 debentures I refer to were issued to the Saint Lawrence and Atlantic 
 Bailroad Company, and were sold by Messrs. Black, Wood & Coii|li> 
 pany, contractoiB for that road. . ., ■ m 
 
 Queatiotir^ 
 
 In your cross-examination, you spoke of a letter received by you 
 fh)m Mr. Bowes, stating his wish that his name should not be known 
 at the Bank of Upper Canada as concerned in the purchase of the 
 debentures in question, and that he would get Mr. Cotton to deliver 
 them at the Bank ; did yon, from anything in that letter, infer that 
 Mr. Cotton was in any way interosted with l^owes & Hall, or either 
 of them,,in |he purchase of the said debentures? j 
 
 Aruwer^ ':^- ■''■^ ■'■;■;'. %• •' 
 
 -' Kofthere^ was nothing in that letter to lead to such an inference.^ 
 
 I v..:':' 
 
 ■vf ■ 
 
 I 
 
 ■".Hi 
 
 Quesitqnn— t^ '■.:::' /■■:■■: .•■':-'■' -^ 
 
 In what year were you first appointed Inspector General of iho 
 Proy^oe of Canada ? 
 
 1^ . ,-y-, . :M—. ■— 
 
/• 
 
 ^ I .■ M' 
 
 les 
 
 ^<t In tho yo&r ono thuamnd oioht hundred and forty-two. I rooignod 
 offiee in ono thouitand eight hundrod and furty-throo, and wait again 
 Rppointod in ono thouitand eight hundred and forty-eight, and have 
 ooatinuod until now to hold tho office. 
 
 -^ 
 
 •V 
 
 
 (Signed) F. niNOKS. 
 
 \ "".■ » 
 
 ■, \ 
 
 ^*'. 
 
 'J 
 
 ^.-r-.h 
 
 m* 
 
 ' f 
 
 
 * 
 
# 
 
 
 f 
 
 '. i| 
 
 F! \ 
 
 
 
 * 
 
 '^'S'^ 
 
 t ' * 
 
 /. ■\ 
 
 I 
 
 
 /C H , 
 
 Ajfi'fftvftn/tJUDfi/^tfnnlKwomnnflJIlrrl twenty third Aiujwi^ 
 
 ■J 
 
 John GoorKo IJowos, of tho Citj-of ToronV), KHquirc, ono of the 
 above Defondanta, inaketh oath and wiith, that ho huM applied Ut tho 
 
 I Clerkand Chamberluin of tho Council of tho City of , Toronto, fJr 
 certified copies of all papcra, writinpi and doctin.ont«, iii tho p<.HH08- 
 mon, cuutody or power of tho Common Cou.icil of the said City of 
 Toronto, relating to thomottcrH in the naid Bill of Complaint, filed in 
 thii^so mentioned; and that he has roccived from the Raid Clerk. 
 copie^Xtho following popors, writings and documontu, namely:— < 
 
 '■ ■ . '. ^■'•- ■■■"• =^*-^\ : vs ' r; ^^ ■■'^'/-' •:■::/.'■■■■':■■■. :c» 
 
 1. Copy of an Act to provide for the ihsuo of DobenturoH to the 
 extent of £60,00a in aid of the Ontario, Simooo and Huron Union 
 Kailroad. Passed 28th Juno, M(52. 
 
 2. Copy of an Act to authoifto'tho Mayor to subflcribo for ton 
 thousand shares in the stock of the Ontario, Simcoo and Huron 
 Union Kailroad, on behalf of the City of Toronto, l^assed 18th of 
 October, 1852. . • .,^ . • 7 
 
 8. CopiesofJVIinutcsof the Standing Committee on Mnancd and 
 Assessment of the following date*., namely :— 2l8t November, 1850 : 
 June 21st, 1852; Juno 28th, 1852; July 2nd, 1852; July 80th. 
 1852; September 29th, 1852. \ X---[ ::.'.■'■ '■■■^■: 
 
 A. Copy of letter fSrom the Prcsid^t of theX)ntario, Simeoe and ^ 
 Huron Union RaUroad Company to t^ie Chainuan of the Finance 
 Committee, dated June 28th, 1852, - | 
 
 ^5. Copy of letter of M. Courtwright, jacting member of the firm of 
 M. C. Storey & Company, to the Select Committee of the CouncU of 
 
 ■ft . '■ - >* .■•..■ .«* 
 
 -ft- 
 
 
 i 
 
 
i) 
 
 i^ 'fi: 
 
 
 '^ 
 
 •• ' ■ 164 . :'■:' 
 
 TorontQ, appointed ta enquire into certain matter* <*6nneoted with 
 the sale of CityvPebcnturc8,|atcdTcbruary ITth, 1858. 
 
 ' ; 0. Copy of letter from samp to same, dated February 21st, 1853. 
 
 " 7. Copy of Bepc^ of Fbance Committeo of the 18th 'August, 
 185ir. ' ». '■ ; - ■" :"■■. ■■ ■ : ■/■■ ' W ■; 
 
 8. Copy of resolution of thq Coi»mon Council of the City of 
 '■ T9rontp of 29lji July, 1853; .' 
 
 * ■ ■ ■ ■ ' . • ' \-' ■■■; "V .: ■ •■■■■*■ , ■. 
 
 9. CJopy of le^r and resolution, enclosed, fSrom the Secrctaiy of 
 the Ontario, Simcoe and Huron Union Eailroad Company, addressed < 
 iotho Worshipful the Jtfayor of Toronto, dated 80th July, 1862. 
 
 ' And this De^nent has received from the Chamberlain of the said 
 City of Toronto, a cop^ of an original document, in his custody, 
 bearing date 27th September, 1852, being an authority from thesaid 
 Messrs. Storey & Co. to the said Chamberlain, to deposit certain deben- 
 tures in the Bank of Upper Canada. And this Peponent says, tha| 
 ihe onginai documents, whereof the sdid above papers are copies, are 
 in the proper custody of the C6toinon Council of the said City of 
 Toronto, and are not in the custody, power or controiU of this depo- 
 nent And this Deponent is Informed and beUeves, that the said 
 ^p^rs; documents and writings, fronr which the said above copies 
 £vc been taken, a^ifll the papers, writings and documents in the 
 -custody of the Common CouncU of ^e said City of Toronto, relating 
 ^io Iho mailers ii the gaid BUI m^ritioiied. And this ^Ifoncnij^^, 
 * ^that he hariw^wia caus^to be filed in this hohouraWe Court the 
 said co^Vf documftite,-and also a certain book, i^ubhshed hy dircc 
 tion of the Gomnion Councihof the said City of Toronto, relitingib-the 
 matters in tl^ said Bill of Complaint mentioned, intitule^'" Report 
 - of the Select Committee appointed to enquire into the issue and sale 
 ofCity Debentures in 1852, with the evidence." And this. De^nent 
 kys, that he has not in Ws- possession, custody or power,; any deeds, 
 ■ bciks, papers, writings ^r documents, relating to the matters in qu^ 
 tioninthis cause,or to%ny of such matters, other .^air the said 
 books and copies of documents, so, as aforesaid, filed by this Deponent. 
 ^ ■ .' J. G. BOWES.. 
 
 rj 
 
 •S-- 
 
 ■a; 
 
r 
 
 f / 
 
 166 
 
 Secmd Affidavit as to fame, nworn an 
 
 \lfih 
 
 :d iitjScj 
 
 yjfewicr, 1858. 
 
 f 1, John George Bowea, of the City of Toronto, H^quirc, one of the 
 above named defendants, make oath and sayj as follows ; 
 
 lBt%. I say that I* have filed certain copies of documents relating 
 toihematterein'question in this suit, as set forth in my affidavit 
 made in this cause, and filed with the said copies on the 23rd day of 
 August, which documenta are also particularised in the first schedule 
 hereto snnezed^ \ ,, ^ . 
 
 2ndly I further say, that subsequently to the City Council pass- 
 ing the by-law of the 28th June,. 1852, in the said first schedule 
 hereto annexed menliioned, Messrs. M. C Storey & Co., in the said 
 biU mentioned, addressed a letter to i|(B offering to sell debentures of 
 the City of Toronto to the amount of tyenty-four thousand pound^ 
 which letter is now in my possession ; and I submit that it is wholly 
 irrelevant to the matters in question in this suit; I howeveriiay that 
 I have set forth a true copy thereof in jthe second schedule hereto 
 '."imnexed. . ' ■: _ '"* ';■ ■ ■' ; . 
 
 Srdly. I further gay that subsequently to the debentures in the 
 said^ll mentioned becoming within the power and control of the 
 said Messrs. Storey & Com|»py and to their being publicly offered 
 by them for sale, I have, in the course of my priva^ correspondence, 
 mentioned to my said correspondents the fact «f the said Messrs. 
 Storey & Company having such debentures for sale, and I have 
 received lettere from my said correspondents relating thereto j but I 
 say that such my correspondence had relation wholly tt> the private 
 transaction of the said Messrs. Stofey & Company havibg such deben- 
 tures for sale, and did not Otherwise, in any m^ni^er, relate to any of 
 Jthe matters in question in this suit; and! submit that such my cor- 
 I respondence is irrelevant to the matters in question in this suit. And 
 I further say that I never have kept copies of or extracts from, or a 
 «opy of or extract from such my corresponlence, nor have I ever 
 kept the letters or any;of the letters so received by me, nor any copy 
 ,of or extract from an^ pa*t of such corresp<^ndence, hut the letters so 
 ' received by me have been, to the best of my beUe^ destroyed or cast 
 
 .1 
 
 
 1 
 
 liit 
 if 
 
 1 
 
 
 III 
 
 'ii 
 
 I! 
 
I*; 
 
 I'i 
 
 :.\, 
 
 .t 
 
 166 . 
 
 away amotiK wnsto papers after having "been" read ; and I say tliat I 
 ^av^oLn«pr/any part of such correspondence in my possession, 
 #wRiyJ|r'fK)wer. 
 
 Ifurther syMrl have drawn up a statement relating tb^the 
 
 iMttersln question in this suit fpr the -purpose of my defence to this 
 
 ^ipWncI^ statement I have placed, and it now is, in the hands of 
 
 my solicitor, for the purpose of such my defence, which statement, 
 
 for such reason, I object to produce. 
 
 ■■:■■■'■■■■■■■'"' ■''■■'' ■-'■■ "'■' ■ ■ ' ■" .■■"',..■■' ■' ^^■- '•■ ■■ '*'" 
 
 . J£"'*'»«'''«J^* according to the b^t of my knowledge, remembrance, 
 infofbation^hjyi^^hatlh^venotno^ 
 said^ heyer have had in my own possession, eustody, or in the poses- 
 s»on, custody or.power of my solicitor or agents, or solicitor or agent, 
 or m the possession, custody or power of any other person on my 
 behalf, any deed, account, book of account, vouched receipt, letter, 
 memorandum, paper or writing, or any copy of or extract from any 
 8ucl\ document, or any other document whatsoever, relating to the 
 matters in question in .this suit, or any of them, or wherein any entry 
 has been made relative to such matters, or any of them, other than 
 and except the documents set forth in tlfce first and second schedules 
 hereto. "•'■• ■ .■'--■.■-• .■'.■■>:■'"■ - ^^ ■ "..• . : ' . ,"- -^ 
 
 •*■ ■'■■■■•■ ■ ' -.. .-■'.- .' . _ X 
 
 V (Signed) J. G. J8QWES. 
 
 n 
 
 
 first Schaluk re/crredto in the acrrmpavying affidavit, filed U 
 ■; ': " « >Si:/>'««^er, 1853. :. / „ 
 
 Ist Copy of an act to provide for the i^sue of debentures' to the ' 
 extent of sixty thousand pounds In aid of the Ontario, Simeoe and 
 Huron IJnion Railrgad, passed the twenty-eighth of June, one 
 thousand eight hundred and fifty-two. ' 
 
 J _ 2nd. Copy of an act to authorise the Mayor to subscribe for ten ' 
 .Jhousand.shar^ in the stock of the Ontario, Simeoe and Huron 
 Umon Raikoad, on behalf of the Ci^ of Toroifio, passed thl 
 eighteenth of October, one thousand eight hundred iSfflS V 
 

 <h-' 
 
 -ler 
 
 ^^ 
 
 8rd. Copies of minateli of the standing Oommittee on Finance and 
 Assessment of the fotlowing dates, namely : 21st November, 1850 ; 
 June 21st, 1852 ; June 28th, 1852 ; July 2nd, 1852 ; July 30th, 
 1852; September 29th, 1852. ' 
 
 4ih. Copy of ft letter f!rom the President of the Ontario, Simooo 
 'and Huron Union Bailroad Company to the Chairman of the Finance 
 Committee^ dated June 28th 1852. 
 
 5th. Copy of letter of M. Courtwright, acting member of ihe 
 firm of M. C. Storey & Company, to the Select Committee of the 
 Council of Toronto, appointed to enquire into certain matters con« 
 neoted with the sale of City dfebentures, dated February ITth, 1858. 
 
 6th. j^Ktot letter from same to same, dated February^21st, 1853. 
 
 7th. Copy pf report of the Finatioe Committee of the 18th August, 
 1853. .■.^■" ,,'■■■/"■>■/;■ 
 
 8th. Copy of resoludofl of the Common Council of the City of 
 Toronto of 29th July^l83?t, 
 
 9th. Copy of letter and res(^ution enclosed, ftqm. the Secretary of 
 the Ontario, Simcoe and Huron Union Bailroad Company, addressed 
 to the worshipful the Mayor of Toronto, dated 30th July, 1852. 
 
 This defendant has received firom the Chamberlam a copy of an 
 ori^nal document, bearing date 27th September, 1852, being an 
 audiority firom the said M^»rs. Storey &^ dompany to the said 
 Chamberlain to deposit certain debentures in the Bank of Upper 
 Canada. 
 
 Book published by direction of the Common Council of the said 
 City of Toironto, relating to the ilAitters in the said bill of complaint 
 mentioned, intituled: << Report of the Select Committee appointed to 
 enquire into the issue and sale of City debentures in 1852, with the*, 
 evidence." ), ■• 
 
 ^ 
 
 •i 
 
 
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 If 
 
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 168 
 
 Second Scliedderfferrcd to in tU accompanifing affidavit. 
 
 * " • ToEOKTO, June 30, 1852.' 
 
 J. G. Bowes, Esquire, ; , v. 
 
 SiE :-We propose to sell you the twcnty-fbur thou^d Pf^^s^f : 
 Toronto debentures authorized by the City Council on the 28th 
 Instant to be issued in aid of the Ontario, Simooe and Huron Union^ 
 ' EailrW, yon^to pay us eighty cents on the dollar on the deposit or 
 saidSitures in such Bank in the City of Toro^^ as you may 
 designate, and we to deposit said debentures as soon as we receive the 
 
 same. 
 
 ..■"'" ^f^^' 
 
 to-morrow. 
 
 Very respectfully, 
 
 Your obedient servant , ^ 
 
 " M, C.STOREY&CO. 
 
 .-— -7^- 
 
 S^ippl^tai Jffid<tvU sworn to and filed 2nc? Sej^ndfr, 18 
 
 JLJ 
 
 : Let u8 know your acceptance or not ot to preposition in writing _ 
 
 ■m 
 
 :f 
 
 w 
 
 I, Jo^ George Bowes, of the City of Toronto, Esquire one of the 
 above Defendants, make oath and say, that since the making of tbe 
 affidavit by me in iMs cause yesterday, it has come ^ "^ ^^^f ^j)^ 
 that for some period of time in the year one thousa^nd eight hundred/ 
 Tfadfifty-two, Ihad a smallinemorandum bookinwhu^hLoccasio^^^ 
 
 mad^itries>lative to my private cOrre8pond(mce j «^Isay tb^ 
 
 the time of my making my said afficUivit yesterday, relative to my said 
 
 V -^r corres^ndence therein referred to, the feet of my hav.^ 
 
 rrmeriVbd s«.h a memorandum book as herem aforesa.^^ 
 . Ly recollection; and I have since made diligent s^h therefor, and 
 % I L tkt I eainot find the same; andl say thail hj-e -^ «-n^ 
 1 samd&r a period of several months last past, and I d6 not l^owwhat, 
 ^ WbSconle thereof ; but I verily believe Ihat the same ba^^^^^ 
 
 ^d^f se v e r al m o nths lost; a nd I sa y t ^a t I beUeve that the said 
 perjoopi wjv«i« ■ _ ' . „_„ «„f,5«« r«lfttinff to mv said 
 
 H»i 
 
 memo 
 
 ok did contain some entries relating to my said 
 
 -.■ V •*:■ 
 
\ 1 V 
 
 j^tivato odiTospondoTioo rofbrred to in my s^iid ^ffidavit/mado^ymter- 
 ^ay ; boi I Bubiuit that for the riaasons stated in "my sdid affidavit 
 made yesterday, relative to my said private cor^spondenco, the said 
 neinorandum Ivdok did not contain any entries iii it, relative to the^, 
 matters in question, in this suit. H "^ \ ' 
 
 (SignetO J. (JbOWES. ' 
 
 1^ ■■■ 
 
 ^ 
 
 'w: t 
 
 .' 
 
 Defeni^dnft Affidavit as to Books and Papcys, filed Qtk Dcc.y 1853. 
 
 1, Johit George Bowes, of the City of Toronto, iF^., one of the 
 above-named Defendants, mak^ oath and say as follows >— 
 
 :■ '^ ^ -.[■: ■ ::/.' 1 ;*•>■ 
 
 FiriU I say, that I have £led certain copies of docnmi^ts relating 
 to the matters in question jn'this suit, which were ^ed by mo in 
 this cause on the 28rd day of Aug;ust last, which ^uments are , 
 particularized in the first Schedule hereto annexed. ''. 
 
 Secondly. I further say, that s'ubsequcntty to the City Council*^ 
 passing the By-Law of the 28th day ^f June, A.D., i8525^n the saiP" 
 first Schedule her^o annexed, mentioned, MessisrH. C. Storey and 
 Coinpany, in the ^id Bill mentioned, addressed i| letter to me, offer- 
 ing to sell debentures of the City of Toronto to the amount of seventy- 
 , four thousand pounds, which letter is now in my possession, and I 
 submit; that- it it wholly irrelevant to the matters in questiol}3in this 
 cause; howqycr, I say,"tEiN! have set fo|ih a trtie copy. thereof in 
 t^e second ^^hedule hereto annexed* 
 
 ^„ 
 
 «.N 
 
 Thirdly. I further say, that su^sequehtly to the debenture^ in a. 
 the stdd Bill mentioned becoming \nthin the po^r and control of/ "^ 
 the said Messrs. Storey and Company, i4 the said l^ill mcptioned** 
 and to their publicly ofiering thepci for sale, I have in the course of 
 my private correspondence mentioned to my said correspondents the^ 
 faet of the said Messrs. Storey and Compq^y having such debentures ' 
 for sale, and I have received letters from my said corr^pondcnts 
 rdating thereto j but I say, that such qorrespondenoe had, relation 
 
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 TyfidM^in ko far 08 irclnM t^ mnttcw ifttl 
 t8)lc) tHo private tram«ction8 of the «^ 
 nng^iyh debcntttrerfor slilc, and did"^ 
 |te t4anyjjpf the luatterH in «iuestioi|[ 
 
 th^l »*»^8»Jf o^%^'»*^<'|i**^ ^ irrcleyai|j^ 
 
 >lt|^l^ia explain 
 
 t««yi 
 
 iiner 
 
 
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 ^ 
 
 have I cv«?»!k^ t|ie 
 id oroast ihetOgwajfia; 
 
 r Buit;iwr iihe^pwr|i)P ofnfj^^^ . 
 |m| WsSy^won I of ' " 
 
 
 
 V f 
 
 
 l^l^'y^' of our.f)t^^' ||§| 
 bicjii-occasiDnallyiaiido :^« . 'i'jl 
 
 H 
 
 viuei^at;*)[l«iil 
 
 ^|iV'Cjn>.tfe|'6rdi»iajip^ 
 
 ' this «»i(t was-^^sti 
 !': :;;^'. |oth^liiatters;|n |iiL^ 
 ;; ■ V .^ ^tt tliitt'suitj^; wMicl| |;i^^ 
 iji * purpoaie of 8qjB| mjy! ilelcr 
 
 ^[ '^to'prt^4ttC'^■^•^' ■'i V'^'ir ■■ 
 
 * '/'"I fui^er^ th<il>iffe|r Bom^ 
 
 " entries ilblativelto ^ijirWatoy corrcspo^dtM*"^ and I ;say; tlmtl i^ivo 
 " ^liotwjcii^tV'^n^c Mai;perl«ia^8i^ a#I 4o 
 
 lipt kfow A^hat basrtcpiine thfe^i|iiT«f Jj^^K^^^ the »atiie 
 : has been for iticriy.(|8evpmlracJ*.th^fea^^ 
 " • . that the Uii inemoi^hiiin I,p6fe4i4 coiit^ 
 
 • • iny saidsppvate cttrresp^rideAe/^^ o*^«5*» 
 
 ; .' entries 'ii orjot relate to, any <^f th!e n^il<^; m thb ^id Bill mcAi- 
 
 ty, i^'im^c bpks. oiT^es &^aU, of wbieb 
 
 •firm.I a^ a paitncy, tboare app<^ entrit^ showing ^^ihe mm of 
 
 four thousand bne hundred and'jtwcnty-tbrle, ppvnds nine shf "- 
 
 aiid dev^ pence tias been i^^tod to the cfredit of that firmk 
 
 Isay, that H does not ap^ar by the said boots out of what trai 
 
 Huch credit ari8eH,i)ut the^amc is 6ntercd in thfe said' books, m the 
 
 ordinary course of bu8ine8.VaS'Vcreait of such #n to the said firm;' 
 
 .and I say/that sucb entries do so far relate to the matters in question 
 
 \n' this suit, th?it they comprise the amount of £4123 9». llrf., 
 
 admitted by me in my answer to the Bill of the Complainants ^to 
 
 have been realized as therein is mentioned ; and Isay, that such entries 
 
 in the said books of the sa id fi ^ nn of Bowes &.Hall do not exhibit 
 
 anything in relation ♦<> — ^^^^f' nM»«'»rs in the said BilUf the said 
 
 ... J, , 
 
 m 
 
 .^::*- 
 
 tioned. 
 ♦^ c^nd I further 
 

 dido ^^ 
 
 male ' 
 
 }ckeve 
 
 .in;^ to 
 
 f such ' <► 
 mcia- 
 
 * ■ ' - " 
 which 
 
 «um of 
 
 tU|M8 \ 
 
 ^.^HjHU.. 
 
 in tho 
 
 dfiita;' 
 
 uestion 
 
 .lie/., 
 
 ants to I J ' 
 
 entries ^ .5^ 
 
 exhibit 
 
 ffl.-r: 
 
 pW^W^'^^not^'P"^*" ^l^!^" iti this suitj and foi* the 
 ins heroin ai#arihg, 1 objeQ^t^lrodueo the said books contain- 
 
 
 , Ati 
 
 ^ «» -I . , 
 renunu 
 
 ■'^ 
 
 -u'- 
 
 jr sl^l^iSN'^iih'S *" *^° best of my knowledge^ 
 
 ^ ._^^i*^i^i|pHonJ^hd llief, Ihave not'i|ow, and, save as 
 
 heroin iiTafoSBSuid, I never had in my own pos^essioti, custody, or 
 poiwr, 6r iiithe possession, cu^y, or povvtr of my solicitors or 
 agents, or^icitor or agent, ori^ the possessi^p, custody, or power 
 
 of ntiy pel 
 voucher, 
 '*af ojr ok 
 mattenilu iLU< 
 entiylids b^e 
 
 on my behalf, any d«5d, account, books iff accounts, 
 lettcr,^ meinoranduuVl^pcr, or writing^ or any copy 
 im any such documentSi^atsoever^ relating to the 
 ;ion Jn this suit, or, to any ofthom, vr wherein any 
 jnadc relative to such matters/br any of them, other, 
 than and exc^jpl the said documents hereinbcf(Wercferred to, and 
 the said clocuiitats set fyrth iA the said first and se^d Schedules, 
 hereto annexed. And ^I further say, that the monies^ the said 
 Bill sought to be recovered from me, never were in any jmah^r made 
 by br through the credit of the fUnds of the Gity of Torom^ nor 
 have the City of Toronto, or the inhabitants or rate-payers thCJ 
 any interest^ Jmrhfttcvc^r in such monies, as I am advisciTancrf € 
 believe; andlsny, that the transaction^ in the said Bill referred ^to 
 aa a sale o£ ^fi^ debentures to me and others, was a bona jSde sale 
 hj the con^raistors in the said Bill mentioned; jind I say, that I 
 nevjer have had in my possession, custody, or power, or in the posses- 
 «8ion, custody, or power of my solicitors or agents, sjjjcitot or amn^„ 
 any deed,.jia|teint, booksj^faccount, vouchers, ^*^^fl||J^^wfljfiW* 
 randum, V^K^ writing, or any copy^rf" or e^^ti^'trbm anjf sjii^ 
 document,9pbr document whatsoever, whic4Vould shoif or tend 
 to {jthKUHHsi^id transaction was any other than a' bonajme sale 
 ptors, who were entitled to tho said dcbentuisea.' , * 
 
 (Signed) J. 0. BOWES. 
 
 . ^■V^ 
 
 M' 
 
 
 
 ;i 
 
 1916 
 
 
 
 ^' "*^i|r % * 
 
]': /' 
 
 'i 
 
 ■ " •-;':/'•■■; ■. .172 . ;■ ;■ ■ 
 
 Admiuiom. 
 
 :'■,-'■■■■ ,, '■ ' ' ■ ■■ • #' • . . ' 
 In order to save oxpenwo in taking eTidotioe in thii cauw, I con- 
 Bent that the Plaintiff shwll be at liberty at the hearing to read tho 
 following, as evidence on his behalf :■ — 
 
 1. The copies produced by the Defendant Bowes, or referred to ia 
 the schedules annexed to his affidavits, without producing th© 
 otipnals, or giving ^Itirtbor evidence thereof 
 
 ' • ^'T~: :■ ; ! 8. Any reports, litters, documents oiPvOroccedings printed in th^ 
 pamphlet produced by the liefendant, ma^\be read froni the pam- 
 phlet, Without producing or provbg the ori^bajs, subject lo'all just 
 exceptions as to" admissibility, relevancy, or otherwise, to which th« 
 origiiMilS) if produced and proved, WQuld have been open. 
 
 8. The resolutions and by-laws set forth or referred to in the Bill. ' 
 Admitting, on prodaction, all copies certified by Daly, without further 
 evidence thereof, or of originals. 
 
 4. And I undertake to admit at the hearing that the Plaintift 
 
 were (as they state) before the occurrence of any of th6 transactioiiB 
 
 mentioned in the Bill until now, and still are, rate-payers and inhabU 
 
 ^ tants of the City of Toronto j subject to all objections as ta the right 
 
 of such to sue. t 
 
 6. That the electors of the City have, during all the period, num- 
 bered several hundreds, and the rate-payers and inhabitants respec- 
 tively are more numerous than the electors. » 
 
 a That Mr. Hincks resides in Quebec: was and is^an'M.P.P., 
 Inspector-Generaiy the Province, and a member of tbe Executive 
 Council, as sta^ iii^ the Bill * 
 
 All these admissions to be subject to all just exception as to the 
 admissibility and relevancy, &c., of the facts upon the issues inj the 
 
 ^- '-■■ -:-' pleadings raised. - • ,..- ,;.,,_..^.:— .-l.,i ._ ■-:,.■■[,,.■ . ■■ ' \ ...,.: 
 
 •:■;>..::;; : ■ : '. ^'^■-- 'JOHN W...GWYNNE,v-^^ --j ' 
 
 Solicitor for Defendant Bowes. 
 
 vV * ■ 
 
 Dated 15th Dec., 1853. 
 
 :^ 
 
^^^p^f^ 
 
 178 
 
 The Retolutum o/2bth Novemhi'r, 1850, at to the £26,000. 
 
 Tho Common Council of the Ctty/of Toronto, oa, the 25th of 
 Kpyombcr, 1^50, adypted thq followi.ng resolution :— >. 
 
 " >?<?«fA«t That the sum of £25,066, in debentures, payftble 
 twenty years after date, with interest tit ti\x per cent. per. annum, 
 payable half-yearly, be granted in aid of tJie Ontario, Simcoe, a^d 
 Huron Railroad Union Company, on the conditions 0ot forth in the 
 second clause of the Report No. 21 of the Standing Committee <hi 
 Finance and Assessment; and in order to extend the benefits of tho 
 mid. Railroad to all parts of the City, it be another condition of the 
 above grant that the terminus for passenger tn^ns shall be erected 
 on a portion of the Market block property/now vacant, such portion 
 to bo leased to the Company at a^ iionitYial rent for 00 years, and that" 
 tho lino of llailroad shall be camed along Bilaoo and F?ont Streets, 
 t« tho full cxtentiflf the City Water-Lots." ^ ..f 
 
 
 Reaoluiion as to tJie £35,060, Xoan. 
 
 On tho 6th of August, 1851, the Manager of tho Ontaridr«)8imooe, 
 and Huron llailroad Union Company, aided by certain resoHntionv 
 adopted at a meeting over which John Arnold, Esq., presided, applied 
 for a loan of £3^,000, upon certain conditions set forth in the said 
 resolutions, which application and resolutions were referred to » 
 Tho Selc^tK Committee, on the 
 
 of August,^ 
 
 Select Committejcf.; 
 1851, reported '.-rr^ , 
 
 " TMrupon i^ nfost sCttcntiv6*€flfcsideration given by your Com-^ 
 mittee to the p^)ositions signed by Mr. Arnold, as chairman, and 
 after frequent interviews with the manager, as wfiLps with, one X)f 
 tho can tractors of the Gomjpanyj your Committee ^!||ld recommend 
 that in lieu of the propositions (or either of them), t^e Council loamr 
 * to the said Conipany their debentures to an amount not exceeding 
 £35,000, payable in twenty years, witlyptercst on the same payable ' 
 
 half-yea r ly, issuable in the samo ratiy%a the bonus of £8^,000, 
 
 ^fl 
 
 I ■ 
 
 < 'I 
 
 % 
 
 
 
 . .<'x 
 
 ••."'1 
 11 
 
 ■:■% 
 
 A, 
 
fi 
 
 i 
 
 t- ■ I- 
 
 I . ; 
 
 
 Li 
 
 174 
 
 
 >■!> 
 
 Compfli 
 
 taking as Rccuriiy for Auch doboiituroH tTio bondH 
 to the Ramo uniimnt, payiihlu in ton yoiira, with intoBMt half-yearly, 
 secured on the rond, to the ratiHfaction of this CorpoKitiAn, upon tho 
 jrecominondutiun of the City Solicitor. 
 
 "And further, that it be a condition to this Jtinijr that the road 
 fW)m this city to Jjako Sinicoo, ar the Holland |wer, bo completed 
 in two years from tho l«t of January next. '^I> 
 
 ''And further, that iw long aH tho loan of £^,000 contnraeii, the 
 Mayor of this city, fur the time being (if ho be not a dircctbr in any 
 other Company), be a director in tho above-mcntioi!iod Comjteny; if 
 hb bo a director in ^any other Company, then any Aldomvua of the 
 ity, for tho time being, to bo nominated by mm Council U).be • 
 
 city 
 
 director in said Company." 
 
 '^J^^' 
 
 ''% 
 
 ai 
 w 
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 C 
 2 
 ai 
 b 
 
 i\ 
 d 
 
 I 
 f 
 
 This report was adapted by the Council on the said ISth of 
 August, 1851. , 
 
 /■ 
 
 \..- 
 
 The £m,000 Bi/-Law. 
 
 ***■ 
 
 '*"■ 
 
 k^\ 
 
 An Act to provnh for the imue of Di'h'n{ure» to the extent of 
 \£&)fiOO,inai<lofthe Ontario, Smcoe,aiii^ Huron Kail road. 
 
 . Whereas, on the 25th day of Xovctifli^ 1850, the Comrao 
 Council of the City of Toronto resolved tliilj^ the sum of £i5,000"in 
 debentures, payableSO years after date, with 'interest at percent, 
 per annum, payabt^alf-yearly, be granted in aid of iW Ontario, 
 Simcoe, and Huron Railroad, in the proportion, as the Work progresses, 
 as 1 is ta 10— namely, jC1,0,000 to beJ^ndcd on the road before 
 any advance is made by thaJgrponnlion; these debentures to be issued 
 to the cont|Mtors for JC10,0W, and that all future advances be made 
 in the same proportion, to an amount not .exceeding in the whole the 
 sum of j£25,O00, upon the condition that the tflrminug for passenger 
 
 toiins be erected on a portion of the Market Block property, now 
 
 i * 
 
 ;<&' 
 
i-- ^ V -' •■ 
 
 
 nny 
 
 rIy. ' 
 tho 
 
 
 f 
 
 '. 
 
 md 
 
 P^'.--: 
 
 jtcd 
 
 
 tho . 
 
 . " 
 
 any , 
 
 the 
 » 
 
 L of 
 
 V ■ ■ . 
 r. 
 
 i,«lti1 tint the lino of lluilnrnd Khali \w cnrriod nlonj? Palace 
 bihI Front HtrootM to tho full extent of tho City Wator-L«>tn. And / 
 whoreM tho miid Cuuimon (Jounoil, «^ tho l><th day of Au>«U8t, 1H51,/ 
 rettolviod to loan tho Ontaruj, Hiiiicof, uimI IIuioii Railroad OonipaiW 
 City dtibontures to an amount not extoiMlin^ XJir),()()(), payable Jii 
 20 yeiirs, with intcrcHt pflyablo half-ycaVly, ruHuablo in tho Hanio ratio 
 M the bonus of i:25,000,-takinj? w Hociugty for Huch dcbonturoH the 
 bonds of tho said Company to tho same «lboiint, payable in 10 years, 
 with interest half-yearly, secured oh the n)ad, to the satisfaction of 
 the Council, upoh the reeominondation of tho City Solicitor, on con^ 
 dition that tho roj^from tho city^Lako Simcoo, or tho l^olland 
 Kivor, bo cotnplot^ITK two years from^o l.st of Janwry acxt. 
 further, that as long as the said loan o(^k^,000 continues, tho 
 of the city, for tho timo being (if he brkit a director in anj 
 
 ttut a 
 
 1^ 
 
 And 
 
 Mayor 
 
 other 
 
 Company), be a director in the abovo-incnH|wd Company ; if ho be 
 
 a director in any oth«rJ.'ompiiiiy, the«j any AWeri^^ of tho |ity, for 
 
 tHe^tituo being, to bo nominated by tho Council ^We * dirjfector ip, 
 
 isai^ Conipany. ^And whereas, by the Act of tlite W>vinolttl liOgisla- 
 tur<S 13 and 14 Yic, chap. 81, entitled, " An A^ to enliblo the 
 Munieipal Corporation of the City of Toronto to assist in the con- 
 struction' of the Toronto, Simcoc, and Huron Union Raihx)ad/' it is 
 ill /^act^ThatJt shall and may be lawful for the Mayor, Aldermen, 
 ^^* and Commoinjjly of Hie City of Toronto, in pursuance of any By-Law 
 ^djj|m)C^,thQ Said Munv<!|piii Corporation, to issue debentures to an amount 
 . not '6xceoding jEWjOOO, nor in sums less than £5 each, for and 
 H (towards assisting in the construction of the propoa^ Railroad of the 
 said Company, and to provide for or sccurq the pavmcnt thereof in 
 such manner and way as to the said Municipal Corporation shall 
 Boem proper and desirable. 
 
 Be it therefore enacted by the Mayor, Aldermen, and Coflimonalty 
 
 oftheCityofTorpnto— ' 
 
 ■':■'■ - : . -■ l8t. y ■ ; ^ ■ -: ^ ■ ;■ 
 
 Thatitshjdl and may be lawful for the 3IayoT of the City of 
 Toronto to cause any number of debentures to be made but, not 
 exceeding in the whple the sum of £60,000, and to cause such 
 debentures to be issued to the Ontario, Simcoc, and Huron Kailroad 
 tTnion Company, in the proportion specified in the before-recited 
 
 i 
 
 TTnion Company, in the proportion specined in tl 
 TOSolution, as the -i^ork on the said road progresses. 
 
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 That of the «aid Huni of JCOO.OOO, the nam of X2r»,000 ihall bo ftS 
 tt gift to uid ill tUt! coiiHtruction of the mul nmd, ami tho roumiiiing 
 jea6,()0a Bhttll Iw iw a loun to'tho Ontario, i^'imc^w, mid Huron Kail-- 
 road Union Company; and for tho «c'eurin« of tho said payinont of 
 tho Hiiid loan in ton yoar«, with iiitcrcHt at tho rnto of hix por cent. 
 por annum, jwiyablo half-yoarly, tho wiid Cuinpnny nhall givo to tho 
 City of Toronto their bondH, Hccurod upon tho Huid rt>ad, to tho 
 •mount of Buch dobo^ituroH from timo to tiUic Lwuod to th« said 
 Company on aocount of tho BJiid loan. . f 
 
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 ■;'. . 8rdly. _ ■ \ /' ; 
 
 That all such debentures shfall bo under tho Common Seal of tho 
 ■aid City,»ij?ncd by tho Mayor for the time beinj;, and couiitorHignod 
 by the Chamborluin for the time beinj^ of tho Haid City of Toronto, 
 and Bhflll bear interest at the ruto of six per cent, per ain>>i»"> pnyublo 
 half-yearly at the Hank of Upper Canada ; and all such ' debentures 
 shall be rcdccniablo at tho Bank of Upper Canada— />roi/f/((/ idicayfty 
 that none of the said debentures shall be for a less sum than £25, 
 nor payable at a more remo^o period than twenty years from tho 
 issuing thereof. 
 
 4thly. 
 
 »• 
 That the interest on the said Debentures hhall be, and tho same is 
 
 hereby charged and chargeable, and shall bo paid and borno out of 
 
 the monies which shall come into tho hands of the Chamberlain of 
 
 the sjud City for the timo being, to and for tho uses of the said City. 
 
 '■; '■"■■■■ ■ ,../■; 5thly;-- " . 
 
 That fur the payment and redemption of the principal sum secured 
 by the said Debentures, there shall bo raised, levied and collected in 
 the year next before such Debcntui-cs respectively fall due, an equal 
 rate in the pound upon the assessed value of all rateable property in 
 /the BWd City of Toronto and liberties thereof, over and above all 
 other rates and taxes whatsoever, suflScient to pay the principal Sum 
 secured^by such Debentures respectively falling duo, as aforesaid ; 
 
 ..t 
 
 unless otherwise provided for the re-payment of tho said loan, vt miy 
 part thereof, by the 0, 8. & II. U. K. Company, or by act of th« 
 
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 t*^*^" 
 
 
 177 
 
 Mayor, Aldeimen and Commonalty of the City of Toronto, authorii- 
 ing tha iarae of other Dabontoraa in Uou thoroof^ in that behalf duly 
 ■umU and enootod. 
 
 J. a. B0WE8, 
 , Mayo . 
 
 ANAOT 
 
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 To amtkortte the Mayor to mbtcrihe for TVn Thoumnd Skare$ I'ti 
 tkt tStock of the Ontnrioj Simcoe, and Ifuron Union Raiiroadf 
 9% Mud/of the City of TWoiUV. 
 
 £PftSMd 18th October, 185i 
 
 WHEREAS, by a oertain By-law passed on the 28th day qf Jane, 
 1852, entitled, '< An Act to provide for the issue of dobentnros to the 
 extent of JC60,000 in aid of the Ontario, Simcoe, and Haron Railroad . 
 iJnion Company, after reciting that. Whereas, on the 25th day of 
 l^ToTombor, 1850, the Common Council of the City of Toronto resolved 
 that the sum of £25,000 in debentures, payable twenty years after 
 date, with interest at six per cent, per annum, payable half-yeariy, 
 be granted in aid of the Ontario, Simcoe, and Huron Railroad, in 
 the proportion as the work progresses, as one is to ten> namely, 
 £100,000 to be expended on the road before any advance is made 
 by the Corporation, these debentures to be issued to the Contractors 
 for ten thousand pounds, and that all future advances be made in 
 same proportion to an amount not exceeding in the whole the sum 
 £25,000 pounds, upon the condition that the terminus for passenger 
 trains be erected on a portion of the market block property now 
 Tacant, tnd that the line of railroad shall be carried along Fklace 
 Street and Front Street, to the full extent of the City Water Lots ; 
 and whoieas the said Common Council on the 18th. day of Angust| 
 1851, revived to loitn the Ontario, Simo^, and ISuron Railroad 
 Union Company city debentures to an amount not exceeding £85,000, 
 payable in twenty years, wijh interest payable half-yeariy, issuable in 
 th« same ratio as the bonus of £25,000, taking as security for such 
 debentues the bonds of the said Company to the same amount 
 p apble ia ten y e ars, w ith interest half yea r ly, seonred on the road to 
 t3ie ntisfiwstion of {he Coanoil, upon tbs reoommcndation of the G\%j 
 
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 Solicitor, on tlia^«lition that the road from this Cify to Luke Sim- 
 coe, on tHfe Holland River, be completed in two years from the Ist 
 of January next; and further, that as long as the swd^ loan of 
 JC^S.OOO continue, th^ Mayor of City for the time bejrig (if he be not 
 a Director in any other Company) be a Director in th? aboVe men, 
 tioned Company) if ho be a Director in any other Company, thep any 
 Aldenhan of -'the City for the. time being to be m>minated by the 
 Council to be a Director in the said Company. And whereas, b^ th«: 
 Act of PmfiKSial Legislature, 13 and 14 Vic, Chap. 81^ entitle^ 
 "An Act to enable the Municipal Corporation of the City of Toronta 
 to assist in the construction of thp Toronto, Simcoe, and Lake Huron 
 Union Bailroad, it .is provided always, that it shall and ma^ be 
 lawful for the Mayor, Aldermen, and Commonalty of the tity^t 
 \ Toronto, in pursuance of any ByJaw of tl^said Municipal ^^^"^ 
 ^ to issiw debentures to an Imount not Exceeding £100,(K)0, nW 
 sums/less than five pounds each, for and towards assisting in the 
 construction bf the proposed railroad of 'the said Company, and to 
 
 provide for or secure the payment thereof in^'such manner^iind way 
 • "ai to^the said Municipal Corporation shall seenj* proper and desirable. 
 It,wad enacted, that it shall and may be lawftil fot the Mayor of the 
 Citv o^Toronto to cause ai^y number of debentures to be made out 
 not etceedipg ih .the Vhole the sum of £60,000, and^ to eaus^^^ueb^ 
 debentures ^be issued to theOntario, Simcoe, and Huron KaUroad 
 . fe Company, ip the proportion specified in -the^b^fore^reeited. 
 resolution, as the work on %e said road progressesj that^o^ the s«d 
 . sim of £60,000, the sum of £25,000 shall ^^ ««£f » ^^^^k 
 ' . construction of the said ^oad, and the remainin^,£35,0Qp shaU be aa ^ 
 » loaiitofli««)ntario, Simcoe, and -Huron Railroad Union Company; 
 .>nd for securing Ae ^.payment of the said loan m t«»^f «f » ff 
 vinteritat the ratiof sii per cent, per anhun^ payable halfl^rly, 
 the saidjCompany shall fei^^ to the^ City ^ Toronto tl^ir bon^ . 
 .red^pon the said road to the amount:«f! such debentures from 
 -Ito time issued to the said Compjfiiy on ii0count of th^ said loan.- 
 u;hat all^uch debentures shalibe under the common seal of the^sajd 
 
 Ci^, ^ by the Mayor for the^time ^«^°?' ^ f ^Jf ^'«°f ^J 
 theVmberlain for the time being of the' said City of Toro^^^^^^^ 
 
 ^halibearint^est at the xate of six per eent-peranj^ 
 half-yearly at the. Bank of l^per Canada, and all^ such debe^^ ; 
 shaU be redeemed at the Bank of Upper Canada j W prcmded 
 
 
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 always' that none of the said debentures shall, bo for a lens sum than 
 £25, nor payublc at a more remote period than twenty years from the 
 
 V issuing thereof. That the intcrcston the wild debentureH shull be, 
 
 .and the same is hereby cliargeJ and tharj^oablo, ami uliall be paid- 
 and borne out of the moneys which shall come into tlie hands of the 
 Chamberlain of the said City for the tiniebeinfr, to and for the uses 
 pf the said City. That for the payment and redenipti((n of the prin- 
 
 'oipal sums secured by the said debentures there shall be raided, levied 
 
 - and oollected in the year before such debentures shall respectively 
 
 fall duo, an equal rate in the pound on the itssessed value of all 
 
 '^rateable ^ro^rty-in the said City of Toronto and liberties thereof, 
 over and "above all other rates and taxes whatsoever, sufficient to pay 
 the principal sum secured by such debentures, so respectively falliufj; 
 due as aforesaid unless otherwise*provided for by the repayment of 
 the said loan, or any part thereof, by the Ontarioi Simcoc and Huron 
 Railroad Union O/ompany, 6r by the :IMay()r, AUlornien and Common- 
 alty of the.City of Toi-ohto authorizing the issue of other debentures 
 in lieu thereof, in that behalf duly made and enacted. And whereas, 
 since the passing of the said by-law the followin)e resolution was, on 
 the twenty-ninth day of July, 'l^S^, iidopted by the Common Council 
 of the said City of Toronto : i 
 
 " Whereas his worship the Mayor has infonned this Council thai 
 V Ifhe contractors of the OhtaTiOj Simcoe and Huron Union llailroad 
 ^ Company haye accepted a proposition made by him, "subject to the 
 approbation, of this ©feuncil, in view of the difficulties wfeicjh have 
 arisen in the €xe.cution of a niortgage bond, by way of security for 
 the loan of thirty-five thousand pounds, formerly voted by this 
 Council,, to the effect that the contractors shall surrender the. gmnt> 
 of twenty-five thousand pounds, inade by this Council an4<transferred 
 to such contractorl>in part payment of their contract ; and also that 
 the directors shall waive the afpresaid loan of £35,000 altogether, on 
 * cohditioi|^tb^MBif iljpu thereof this Council Will take .stock to the • 
 PA^usaiid pounds, to be paid by the issue of City 
 ■ ^^'^aiuejl^ortion'aathc above loan and grant w;ere 
 ^beissijedi Beit therefore re^iolved tiiat tluj standing 
 tifinance a,nd ftl^sment be authorized to «pmpiete sqch 
 jrovidecl tMt no ie^t difficulties shall occur in earry- 
 \^'l i°S 9^^ t|iJB resoJjJitioa/ and provided also, thai no alteration shall 
 
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 lake pittce in the conditions upon which a portion of the market 
 block™ granted to the said corapariy, particularly with regard to 
 . carrying the railroad to the eastern limits of the City water lot^. 
 And Wheteas the said contractora have, by an instrumetit under their, 
 hinds and\8e»r8, dated the 14th day of October, 1852, duly surren- 
 dered suchVratat of Twenty-five thousand pounds and released all 
 rigk a^d tm& thereto ; and the said Ontario, Simcoe andy Huron 
 KailroadUni^ Company have, by an instramebt under their cor- 
 'porate seal, dateithe Hth day of Octpber, 1852, released all rightor 
 , claim to said grant, tod also to said loan of thirty-five thousand 
 pounddv, V. :.•'■>':■".■■ ' "■"•-■. '■ ' • .- '":-'■■■■■■'■• ' " ^-' 
 
 Be it tlierefore enacted by the lH^yor, Aldermen and Commonalty 
 of the City of Toronto, that it shall ahd may be lawful for the Mayot^ 
 of the said City of Toronto to subscribe for, take, receive and hold 
 stock in the said Ontario, ^imeoe and Huron Railroad Union Com- 
 • panytp'the amount of £50,000 for and on behalf of the said City of 
 1, -foronto J and for the payment of the same it shall and may be lawful 
 and it shall be the duty of the said Mayor V^r the, time being of ther 
 . fiiaid (yity to appropriate so much and so many of the said debentures 
 . authorized to be issued under the provisions of the by-law hereinbc^ 
 foretccited as may be requisite and necessary for that purpose, and 
 that the said debentures shall be issued by'him for that purpose at 
 th^ times, and in thesatne proportions, as is provided by the by-law 
 hereinbefore recited, subject however to the same conditions relative 
 to the passenger terminus of the said raihoad; andthe continuance 
 of the said railroad along Fj^nt and Palace streets as .are contained in 
 
 the recital of the said by-law and the resolutions. of tHe Common 
 Council of the 29th day of July last., ' , ' ^ 
 
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 TSiat the dividends from time to time paid and payable upon the _ 
 iiw^ so held by the said Jlayor, on behalf of the 6aid Citytf Toronto, / 
 
 - in the said Ontario, SimcOe and Huron Kaibroad iJnion Company , V 
 shailbe appliecl by. the^ Chamberlain of thesaid city in such manner 
 
 * a8i)y^re^luti6n of the" Common, CpuHeil qf tto City of Toronto iaay : 
 
 /'from* time to time be directed. * • * \ 
 
 > - , (Signed) JOHN a BOWES, ', 
 
 ■ . '-^ -"^r-;, ■ -"- :,"■ ■ :.'■ . ^.-* '■■-.: ■^•: : Maj/or. ' { 
 
 t^ommon Council Chamber, ) - J - ^ ^ -1 : ^ ..::^^.:^, il^^^I--^----^^ 
 
 :■ ,,. Toronto, Oct. 18, 1852. , { * ;. ^ / '■'■■■^::. ;■*■■■:/;,.-.;:■:■ ;./ ■; 'm'^^T 
 
 
 
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 iThe Bill "to authortge the^ Citjt/ of Torhiho to ncfjormteth loan of 
 JE100,000 to consolidate a part o/ the Citif Dcht;' of which Mr, 
 McCordprwhacdacopywhcngiinmi hi* evidence in thi» cause, 
 corre»pond« with the Act with the exception oj a fewjerhat altera- 
 tions, and except that the Ith and Hth claUMS in the Act m U 
 passed were not in the Bill as intntdumi and printed.J , 
 
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 An Act to provide for thcTssuoof ^£100,000 Dcbenturos, to Consoli- . 
 
 aate a part pf thef(3itfDebt. ^^-^ 
 
 < V . :,_ . [Passed Nov. >t^ 1852/ 
 
 Whereas, by an act paased^iiurri^ t^e prescut^pskrti of the Pro- 
 vincial Legislature, 16 Vic^ cHi. 5, eiititledj^iiAtrAct to authorize the 
 City of Toronto to negociate" a loan(5f^l£lW,000 to consolidate a part 
 of the City Debt," i^ is, aniopgstother things, enacted, "That it ehall 
 andniay be lawfuljto arid^-the City of Toronto to raise by way of 
 Ipan upon the credit df Bebienturcs the sum of ,£100,000,, lawful 
 money of Canada: that the sum of X50,000, part of the said loan, 
 shall be applied to the payment of the" promissory notes of th<*. said 
 City now cttrrent, and redemption,oif th«!»dcbenturc9 of t|^6?8ai^ Ci^y 
 issued prior to the passing of th<5 l2tTh Vic, #. 81,s and falling duo 
 within the next ten years: That the sunj of ^60,000, tKe remainder 
 of the said loan, shall be applied in payment of the stock purchased 
 by the said City in the 0. S. & H. IJ. llailfoad Company, or in the 
 redemption of the Debenturesissued on jiccount of the purchase of 
 the said stock, and that for and notwithstanding any clause, matter, 
 or thing, in any Act of the Parliament of the Province to the con- 
 trary, it shall and may be law&l for the Common Council of the said 
 City of Toronto to repeal the.by-^law of;. lH^ said Council passed on 
 the 28th day of June, 1852, authorizing the levying of a special rate 
 for the purpose of paying and satisfying' certain Debentures isspd or 
 tobe issued in aid of the said 0. ^kji. Railroad, or ^payment of 
 the said stock. And that, for the. paji^ent, satisfaction and^dischargo 
 . of the Debentures to be issued thy Virtiip of this Act, it shall and jnajr 
 be lawful for the Common Goijocil of the said City of Toronto in^i^^ 
 
 ^ by-law to be passed authoriangt^ie aaid Joan of £100,000, and 4|i^ 
 issuing tho Debentures therefor, to impose a special lUteper aanum; 
 
 - ttver 'and above dnd in addition to aU other rates to bo levied in^^ 
 
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 year, to fbrm a sinlkipg fund, of two per cgxil;. per annum^ for that 
 pai^se. And whereas the whole ratoiblo property of thp City of/' 
 Toronto for the year l^M was £184 ,000.^; And whereas the assessed 
 rate in the pound required ris a special rate, for the payment of the 
 interest of a loan of £100,000, and;thie creation of a sinking fund of 
 two per eent, to pay the p^acipal of a luan of £l60,000, is ten pence 
 in the pound : » ' \ 
 
 Be it therefore enacted, by the Mayor, Aldermen arid Common- 
 alty of the City of Toronto : — .< . . i. 
 
 , lat' . '■ V ■ [" 
 
 That it shall and may be lawful for the Mayor of the City of -^- 
 Toronto to raise by way of loan, from any persons, body or bodies, ii 
 corporate or politic, who may be willing ^ advance the same upon / 
 the credit of the Debentures hereinafter mentioned, and the special \ 
 rate hereinafter imposed, a sum of poney not exceeding in the whole' 
 the sum of £100,000; and to cause the same to be paid and applied 
 in the manner prescribed by the Act of thc^Provincial Legislature, 
 author^^g the negociation of the said loan. 
 
 2ndly: 
 That it .shall and may be lawful for the Mayor of the City of 
 Toronto to cause or direct any number of Debentures to be made out, 
 for such sum or sums, not exccedifig in^thc whole the said sum of 
 £100,000, as any person or persons^ body or bodies corporate or 
 police, shall agree to advance upon the credit of such Debentures and 
 the special rate hereinafter imposed; such Debentures to DC under 
 the common seal of the said City, signed by the Mayor, and counter- 
 signed by the Chaiuberluin of the City for the time being, and made 
 
 out in such manner and form.as tho^ Mayor shall .think fit. 
 
 •. * » 
 
 .3rdly. ' , , ' ' ' ■ , 
 
 That the'interest on such Debenturesi gh'all be payable half-yearly, 
 on the 1st of Apjril arid 1st of October, in pach year, at such baulking • 
 house or place in London, or elsewhere, !as may be agreed u|>on be- 
 tween the Mayor of the said City and the party or parties who 'may 
 advance the said loan, or any part thereof. - - 
 
 
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 That the said principal sum of £100,000 shall bo inado payable at 
 tweoty years from tho Ist day of October, 1852, at the banking housi^ j 
 or place in London, or elsewhere, as may be agreed upon as aforesaid." 
 
 ; ./ :' ■ : ••; , ^' 5thiy.' '/ -■' \ . 
 
 That a special rate of ton pence in the pound upon tho assessed ^ 
 value of all rateable property in the City and libertics^over and above 
 all other rates and taxes, shall be raised, lovibd and collected annually 
 for the purposie of paying the interest and creating a sinking fund of 
 t:<ro per cenj^ for the payment of the principal of the said loan of 
 £100,000, from the year 1852 until the year 1873, or uiitil tho said 
 Debenturd^ b)^1 be fully redeemed or provided for.^ 
 
 ■■".■■'■>"■■■ '■;/•'. ^6thly.- ■■■ 
 
 That if in any of the years coring which the sum of toil' pence in the 
 pound special rate by this Act authorized to be levied, there shall bo 
 any surplus, after paying the interest on the said loan, and providing 
 Jfor the sinking fund hereinafter mentioned, the said surplus i*all' bo 
 invested with and added to the said sinking fund, for the purpose of 
 paying the said loan of £100,000 secured by the said' hereinbel^oro 
 mentioned Debentures. \ ' ' 
 
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 ^STATEMENT of Monie9 recehed ahJmUd hy Vie Bank of Upper 
 Canada, UitJ%xhibJjf N, referreil^fn Mr. Ri^ evidence, . ' 
 "^ takenlQthDMtnber, 1S5^. 
 
 Statemojat of Monies natd ^^^fe>nk qf TTppfer Canadft to the 
 credit of M. C. Storey & Co.j.o^te^M^rjty of Je50,000 City of 
 Toronta Debentures sold at^Sbs. per q|^ wiscouni^- ' 
 1^52, Cunrenoy. 
 
 July 22,' Cash advanced on Nos. 740^ to 779, jeiO,000 je8,000 
 
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 Aug. 8, 
 Aug. 7, 
 Aug. 31, 
 Sept. 80, 
 Oct. 21, 
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 it 
 
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 «' 782 to 801, 6,000 4,000 
 
 ^ « 802 to,^l, 7,600 6,000 
 
 '« 832 to 841, 2,600 2,000 
 
 « 847 to 898, 13,000 10,400 
 
 '<< 899to918, 5,000 4,000 
 
 > 950 to 971, 6,500 4,400 
 
 i^^^Zia^l, 1,600 . 1,200 
 
 je50,000 £40,000 
 Statement of monies rccciVcti by thfefBank to reimburee the abbv© 
 adviinoesi 
 
 1852^^' ■ ..- ....... ., 
 
 Aug. 21. ]p5oceeds of the Hon. F/,Hincl:s' draft -on 
 
 "' " ^Messrs. Glyn^ mOak.Cp. for £15,000 
 
 \Bterling .., ....,./....>;.;,.....•'?... .•.•v*1841d 13 :^'_ 
 
 Oct. 23. DoX do. do. £5000.. .............. ._..,M^. 6152 15- S;^^^^^ 
 
 . ' By A\T. McCord, fot Intcrfet to 1st Oct., .^ ^". > Jf 
 
 By procce^ of c(^pons on £82,000 to 1st " 
 
 ■ ■. April, 18^ ............ ;.....,. .^ 2930 7 
 
 Qlyn & Co. £10,1^9 lOs. 8d. sterling 12449 1 11 
 
 • , ^^£40,281 .18 3 
 
 The difference of ^£281 18s. 3d. is the balance of Interest due to 
 
 tihe Bank on the advances made to Storey & Co. 
 
 _ " ' •• . . '»< 
 
 K 
 
 
 -> .,^j " 
 
 ^ 
 
• i 
 
 18» 
 
 Exliihil R, referred ^ in Dr. Scatty $ Evitienc^. 
 
 Cortifioafcl of Engineer for work dono under contract given : — - 
 • M«y 151,1^/....................:.............-........:....;. £100,000 . 
 
 June 29, « ....^ .;,....,. -• 6^00 
 
 Aug. 18, « ...M..,..................:..... lft,000 . 
 
 8op.l, T !I;.Z..........:......,........^............^.. 43,247 
 
 44,023 
 
 ■ ■/,.Oot. 1,' ^.< 
 
 «■••••*••••* 4 *••••••••'•*■******* *******"**********'** 
 
 je25y,i70 
 
 Of tke £50,000 in Stock, there waa deposited with Chamberlain :— 
 July 24, 1852, certificate for ..........................v"^250 Share|,_. 
 
 Aug. 18,' ** « . ...;.^.....................1750. « 
 
 Sep. 22| * ■ • '•••••••••'•••"•••••••••••^••••••••» I Ov 
 
 CITY DSBENTURES CREDIT£D. 
 
 July 15, 1852,. ,,.,,...i....'«»i.4«"**««»««»»«».»»«««.«..«..«»«»««»«» A'l",""" 
 « 81, " ........ ...,v.^.......M.|..,...^ .^........ 8,000 
 
 Sep. 4. ',...,...............*........*.•.......,.. .'^ ..... .*'...•• OjvyXf 
 
 20, ■ .., ,,..,.«..•...«.. .i.. ». i.. ...... •.•^.••.••••rj^<.."» ,^**l>My" 
 
 Nov. 10, « .................... ...............^.......--^ Moo 
 
 / 
 
 N-X 
 
 Jftm—lTie releases to the City Of the gift M loan from tiro 
 Beilroad and Storey and Co., were executed on 14tfiKQetobcr, lSi52. 
 
 \ Copif Minutez of the Standing Committeem Financj^t A»sKk^-)\ient, 
 
 Committee Room, Toronto^ 2lst,.N'ov., 18^0. 
 ' Present : J. G. Bowes, Chairman. ' 
 , ° The Mayor. ; 
 « ^ Alderman Beard. 
 
 ■ Councilman Thorifpson, aftd ' 'Z**^ 
 
 - J. M. Smith. / 
 
 A deputation fk>m (he Board of Dkectors^if thfR^Toronjii; Simco^-* 
 
 >*^ 
 
 
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 1*1 
 
 
 
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 ■sr 
 
 
 
id 
 
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 U 
 
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 I r^i 
 
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 186 
 
 nnd Lake Huron RailWd Company, consisting of Mossm. Boulton, 
 Barrow, Cipreol, and Morrison, waited on the Committee with tho 
 following proposition, viz., to know if tho Corporation would grant 
 tho'sum of £25,000 to assist in completing the Toronto and Lake 
 Huron llailroad, parties now being found willing to contract for tho 
 completion of the same in two years and a half from the present time, 
 provided tho Corporation grant tho above sum. - 
 
 The Commiilce are of opinion that should £25,000 bo granted by 
 the Corporation it should be in either of the foUowing proportions :— 
 
 1st. That £25,000 bo granted to assist in completing the said 
 road, advanced as follows, £12,500 when £75,000 aro expended, and 
 the rem^iing £12,500 when £150,000 are expended, 
 
 2nd/ In the proportion as the work progresses a# one is to ten, 
 viz., £100,000 to be expended on the road before any advance is 
 mad^ by the Corporation ; then debentures to be issued to the Con^^, 
 tractors for £10,000, and that all ftituro advances be made in th«^ 
 same proportion to the amount of £25,000. "» 
 
 Present: Alderman Thompson, Chdrman. 
 " , ** J. G. Beard. 
 
 ■ "^- .- :•:'.**.'■ ■ Dcmpsey; ^ \. , 
 
 « Armstrong. 
 
 June21,I853. 
 The communication of tho Secretary of the Ontario, Simcoe, 
 and Huron llailroad wjw considered. The Committee agreed to 
 report a By-law for the issue of £25,000 grant, ahd £35,0()f0 loan itt 
 favour of the said Company, at' the same time recommendmg tho 
 Council to issue the sum of £10,000 now asked for so soon as the cer- 
 tificate of a competentSurveyor unconnected with the Company sjall 
 
 be furnished to the CouncU, to the effect that tie sunx of i|00,aOO- 
 has bepn &ona/(?e expenaed on the said road. 
 
 ' pRIiSENT. i Alderman Thompson, Chairman. 
 
 ;. J Joshua G. Beard., ' ; 
 
 ■'v ■«•"•: V ,-^ ■■■■''/.' ■ - ' .;/.Pe™p9cyv '. ''";■■, "'^ ■■:..'' "'■" 
 
 ^,' 1;..;^,'\ :''::.:.- '.^^' ,_^k._^;':..:. -' ;.; ^^ -..,.■':,;. ;> ; r June 2S,lBb^' ;■■,',/ 
 ^ The Qpinions of k^ssrs. Haj^J^nd Mowat in relatioh to the 
 legaUty of the %%w fqr the iB8U| of £60,000^ebentures in aid of 
 
 ■4, 
 
 ; ''.■'• .r**%7j' 
 
 ./ ■ '■ 
 
/ 
 
 Hon, 
 I tbo . 
 i^nt 
 Lako 
 r tho 
 Ume, 
 
 sdby 
 
 18:— 
 
 said 
 
 , and 
 
 the Ontario, SItncoo, and Huron /tlnilrond wcto cnnftldArod. TIio 
 Bubstanoo of tho said opiniouH being advorao to the locality of tho . 
 said ])y-luw, unlotw advvrtiscd for three nionthx, mul iiIh«) drawn up 
 in accordanoo with tlio proviHioiiH of the MuMicipnl Corpitnition Act 
 of 1H49, 1850, and 1851, incliuling the inipo>*ition of a H|H>uial rntu 
 for the rodoiuption of tho prinyipul and interettt wkhin twenty yoarA, 
 tho Coiumitteo <authunHcd thy (Mmirutan to connnunioato with tho 
 DirectorH^of tho Ontario, Sinicoo, and Huron Kailroad ITnion ('om- 
 pany, with a view of OHcortaihing their wiMlies on the Hubjovt- 
 
 85?. 
 tpihe 
 I aid of 
 
 J# 
 
 , __ I*re8Ent: Alderman Tliompson. 
 
 Mayor IJowrcrt. 
 
 ; - JoHhua G. Board. 
 
 ., ■ Hutchinson. • /' 
 
 .7i^7y 2; lft52! 
 * A letter of the Secretary of tho Onkrio, SinicQC and Huron Kailroad 
 applying for m istjue of £14,000 debonturoH in accordance with the 
 By-law in fiivour of saidpcMnpany, and Hubnutting a Jlrjif); of a bond 
 to be given in securi^M £14,000, portion thereof by way of loaft^ 
 was conaidered, and the Connnittoc tcsolvcd to instruct the City 
 Solicitors to draw up an instrwftcnt for securing tho said £14,000 as 
 a lien on the road, i)ext after/ the OovcrnnicTit (jiuanintce, and that 
 the Chamberlain do ^eply to/l>lr. Sladdcn's letter, informing him that 
 such in instrument will be require^ and tha| tho Committee will 
 require an addition, the ordinary b(?nds of the Company for the sauie 
 amounts as those issued by the "Coip(^ration, and not in any way 
 restricted with regard to the right of tho Council to transfer the same. 
 
 The Committee ftirther agreed to recommend, that in conside^a* 
 tion of tho verbal dSsuranee of Mr. Keefcr, the Government Inspector 
 of Railroads, given to the Chairman of this Conunittee, that the sum 
 of £100,000 is now actually expended on the Railr(ftid> that such 
 verbal assurance, in addition to the certificates, received frop the con- 
 ttactors, be deemed sufficient"; but that the Board of Directors be 
 notified that before any further issue of Debentures be made in their 
 fiivour, a certificate wilfbe required, in acoordajuce with the Minutes 
 of Jnne 21st. . __ . 
 
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 188 
 
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 July 80, 1863. 
 
 pRBSENT— Al(loi*ian*Tlwm»p«oii. 
 
 Mayor. 
 ■ l)omp«oy. 
 
 Bheard. 
 The Rcunlutlon of tho Council of July^SO WM oonBidcrcd. Tho 
 tommittco hud an inUinioir with C. mhy, Ksq-, l»re«idcnt of tho 
 NTirthorn Railway Oonipany, and Major Uwmond, one of tho oon- 
 
 tractorM. ■ • ir 
 
 » ■ • " ■ ■ ■ ■-■ 
 
 l^wuH then (ydcrod that bo soon as hii Worship tho Mayor nhall 
 ha?f received from tho Board of Directors of tho Northorn^M'^^y 
 their Hanctioq in writing to tho conditions of the IlcsoU 
 City Cuuncil of the 20th July, inst., ho bo authori8e<f 
 bulunce of the j^nt to tho said Railroad, viz., i^0,0( 
 having, been already issued to the contriictors) upon recoivl 
 them paid up stock to.tho amount of ^£25,000 in security for tho com- 
 pletion of the arrangement contemplated in tho Resolution of Council 
 above mentioned. '* 
 ^ , ^* ""^ Monday, Sept. 6, 1853. 
 
 Peesent — ^Tho Chairman. 
 
 Alderman Armstrong. 
 
 ■..,'■■■,;. .•.-'-■'■ ;',."--;^ , ■ Dempscy. ■'':,:• ' :„ 
 
 , Uutchison. 
 
 ' f.' *■ '■ . " ' ■ ■ 
 
 The Council having authorised tho Committee to isijue Debentures 
 to the Northern Railroad Company, in the same proportion as tho 
 last advance was made, be it ordered that the sum of £13,000 bo 
 issued in Debentures on the contraetors depositing a like sum in stock 
 of^ho Road, in furt^t security for the completion of tho arrange- 
 ment sanctioned by tho Council. ' 
 " ■ ■ ■ ' ' ■ -.,1,1.-, ■■■. 
 
 SeptemW 29, 1852. 
 
 PmiSfMiT-— Alderman ThompsoiS. 
 
 The Mayors 
 V ' Dompsey. 
 
 Hutchinson. 
 A certiflcate of the Chief Engineer of the Northern Railroad, tkat 
 nptolst September inst., work has been done on thai Baibo^, »o 
 
 f. 
 
 i'-S. 
 
 ^ 
 
 I « • i 
 
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 the eitent of iC208,247,' having' bocn connidorcd, tl»6 CommUtco 
 decided on authoriwng th^i imno of £50,000 DoWnturoi., un tbe m- 
 curity of the Company'ii boiidn, for tho conipU'lioii uf tho armiiKO- 
 jaont M horotoforo provided. ,' / 
 
 PaiSKMT — ^Tho Chairmnn. 
 ■ -'^^-^ Muyor. 
 
 Aldcrniun Board. 
 « • Bhoard. 
 
 Ootvbor 11, n^i^ 
 
 
 A Utter of T. 0. Ridout, E«l«tro, Cashier of tho Bank of Uppor 
 Canada, offering on behMf of certain parties to take City debentures 
 for £100,000 at; par, on certain conditions, was considered. Also a 
 letter from Crawford & Hagarty, offering to take dcbouturoa to tho 
 amottBt of £25,000 and pa^me^of legal exponsea. 
 
 Th« Mayor oommnnicatek the paiiing of the act authorising the City 
 to iMue £100,000 debentures to oonsolidato tho City debt 
 
 The Committee drrootod the Chamb<nrlain to inform Mr. Ridout of 
 iheir iiitention of urging tho mutter upon the favorable considorutiort 
 of the Council, and to obtain from him tho particulars necessary to 
 be introduced into the By-law. . * / ' 
 
 The Chamberlain was dso directed to reply to Messrs. Crawford 
 and Hagarty, informing them that tho Finance Committee had 
 received A more favourable offer than that made "by them. 
 
 October 19. 
 
 I»RE8Mi>— The Chairamo. . 
 
 Tho Mayor. . 
 -.1' \ Alderman JBeai^. 
 
 . ,-. -8heard.'.._- '%-../ ^ />'■■,::■■ 
 
 * ' Ajrm8trong.\ 
 
 'A letter flomT. G. Ridout, Esq., Cashicr.of the Bank of Upper 
 
 CimaSa, stating the particulars necessary to complete .the By-law for 
 
 loan of £100,000" was read, and the' ChanaborWn itistruQted. to 
 
 indude itB proviiioiui in 
 
 r-law, and 'to inform |4r.°Ridei^ that 
 
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 (ANSI and ISO TEST CHART No.li 
 
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 190 
 
 Extracts fr&rjti PampMct frferml to in the Defendant 
 as to Buvks and Papers, and in the Depositions 
 
 davits 
 
 Monday f3?ch. 7, im. 
 
 The petition of David Puterson, Esq., aii^d others, praying for an 
 investi<i;ation into the insue and sale of certain City Dcbcnturea was 
 presentea by Aldernton Bell, and read as follows :--» 
 
 To the Worehipful'tlie.Miiyor, Aldemian, and Commbnalty of the 
 ^1 City of Toronto. 
 The memorial of the undersigned inhabitants and irate-payers of 
 the City of Toronto, ;. 
 
 .■-'.. .'-.■,. ' " ' ■ ■ h ' ■ ' 
 
 '■■■■■' d ■ ■ ■*■ 
 
 Respectfully sheweth,' that it appears from a discussion that took 
 place (f^lhcb^last meeting of your worshipful body, as repor^d in the 
 public press, that £50,000 of City Debentures, issued for the con- 
 struction of the Northern Railroad, were disposed of for £40,000^' 
 and' the last named sum alone received by the <:onlractora. That a 
 profit of jG10,000 has been realised on the transaction; and that the 
 matter appears to have been eiFected through or at the Bank of 
 Upper Canada, and that very shortly afterwards £50,000- City Deben- 
 tures, actually worth par^jvere substituted therefor.. .That great diffi- 
 culty seems to exist in ascertaining who reaped the benefit ofttne ten 
 thousand pounds discount, or to whonl the first £50,000 of^eben- 
 turcs were disposed of, or by wliom the £40,000 paid to the con- 
 
 \^ractors were provided. 
 
 ■ - . ■','■*".- T , 
 
 That charges of the gravest nature, materially affecting the^charac- 
 
 ter, credit, and respectability of the municipality "of this City, are 
 
 publicly made respecting the transaction in question. r ' 
 
 Tlmt if the sum of £40,000 so paid for the first issue of Debentures, 
 was in any way directly or indirectly advanced by the bank or others, 
 or procured on the faith or credit of the City, or of any engagement 
 by tlie City, to replace the same by any fresh Debentures to the 
 amount of £50,000, your memorialists conceive that any prgfit 
 realised by the transaction should be carried to the credit of the City. 
 , That your memorialists desire to make no chaises against individuals, 
 :and are solely actuated in their proceeding by a desire to have the 
 
 V 
 
 jasss 
 
• / 
 
 191 
 
 % 
 
 V 
 
 / 
 
 true facts of this case thoroughly investigated, and the interests of 
 the Ciity duly protected. 
 
 Your memorialistfl, therefore, most respectfully requc^ that your 
 worshipful hody will cause the matter in (jucstion to. fee fully investi- 
 gated, helieving 4hat such a proceeding is peremptorily called for, 
 and {kat if necessary an application be made by the Corporation to 
 the Court of Chancery to enforce discoveiy, or that syich qf the rate- 
 pay^ as may desire so to do, may, at their private cof|t, be aUewed 
 to use 'the name of the municipality in taking such proceedings as 
 counsel mfiy devise. ^^^ ^^^ „^ „ _^ . v 
 
 And your tnetaorialisfs, &c. 
 
 Toronto, 27th January, 1852. 
 
 / 
 
 D. Paterson and 485 others. 
 
 , % f Thursday, Feb. 17, 1853, 
 
 His Worship the MayW having, at a meeting, of th6 <|^Mttee 
 appointed, for investigating the issuing of the City Defe||t*BS, by 
 direction of the Committee, been asked to attend the Comtnittee, for 
 the purpose of furnishing the Committee with any informatioii he 
 could give on the subject under investigalion,.:^ 
 
 ^e following reply was read:— 
 
 The Mayor fJ^esents his compliments to the Chairman ofthe Select 
 Committee appointed to enquire into"the issue to, and sal^of Deben^^ 
 turerby, the contractors of the Ontario, Simcoe andHuron Railroad, 
 begs to state that he has no information to give the Commi'ttee on the 
 subject, but what will be found in the books of the Chamberlain, or 
 got from the Chairman of the Standing Committee on Finance and 
 Assessment, or the. contractors of the Ontario, Simcoe and Huron 
 Bailroad, or the Cashier of the Bank of Upper Csmada. -' 
 
 .■'-■■■■•' ' ^ ■ ^ ■ '■'^ 
 
 Mayor's Office, 17th Feb., 1853. 
 
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 Friday, Feb. 18, 1868* 
 
 Tho Committee met. 
 
 Alderman Dcnitfon, geconded by Alderman OoWan, moved tbat th^ 
 following three (questions be submitted to his. Worship the Mayor, 
 through°tho Clerk, respectfully requesting that ho will answer th© 
 Bumo, either verbally or in writing, to the Committee :— 
 
 Q, 1. Have you in any manner taken part, fp^ yourself, or aBagenl 
 for any other person, in the negociation or sale of the £50,000 City 
 Debentures, by the contractors, of the Ontario, Simooe and Huroo 
 Railroad, which it is said were sold at a discount of 20 per cent, ot 
 thereabouts? * If so, state how, and in what manner. 
 
 Q. 2. Have you, directly or indirectly, received, on are you in ex- 
 pectation of receiving, directly or indirectly, any portion of the profits 
 on the said transaction mentioned in the last question, o^j^sum of 
 money for aiding and assisting in the promotion, of the saidMfcatioii 
 or sale of the said Debentures? If so, state the amoun^l^ 
 '-■ : ;■'■,■ ■' ". . .^-^\ ... .^ 
 
 This third question riot to be put, if the two preceding are answered 
 in the negative. v * 
 
 Q. 3. Did you assist in the promption of tlie said negociation, ^itt 
 
 ypur position or capacity as Mayor of Toronto ? Or did you exerciie 
 
 . the influence of your civic position to aid you in promoting such ne* 
 
 gociatidn? or did yoyact entirely in your private capacity, «8 Mr. 
 
 Bowes, a merchant 01 Toronto? ■ 
 
 The Committee met. 
 
 Monday, Feb., 21, 1853. 
 
 "AA 
 
 Present — ^Alderman Gooderham, Chai rm a n . 
 
 BeU. 
 
 Denison. 
 -'Gowan.- 
 ■ Gonncilbra Ash^ld. 
 
 Qreen. 
 
 Maedonal cU 
 
1- 
 
 -l 
 
 :\ 
 
 19a 
 
 
 Alclenntin Denison nubmitted the draft of a Bcporti(i bo adopt^ 
 by tbe Comtnitteo, wbich was adopted. 
 
 ».:* 
 
 Adjourned. 
 
 The Committco having been notified that a letter in reply to the 
 
 \que8tion8 put by the Committee had been received froih his Worship 
 
 khe Mayor, — ^ ' ' „ 
 
 ^0 Committee re-assembled at half-past six o'clock, p.m. 
 
 PBBtiENT,— Alderman Gooderman, Chairma^t, 
 " ^ Gowani 
 Councillors Green, 
 << Macdonald. 
 
 The Mowing letteik was ^d from his ,woAhip the Mayor : 
 To William Gooderht^, Esquire, 
 
 'A^-.. ■*■;, 
 
 « Sir,— -I hkd the honor, In reply to your communication of the 17th 
 instant, to refer you to th\ City Chamberlain, the Chairman of /the 
 Standing Coinmittee on Finance and Assessment, the Contractors of 
 the Ontario, Simcoe and Huiton\jnion Bailnmd, and the Cashier of 
 the,Bank of Umwr Canada, % information on the subject of the 
 debentures issued to the Contractors of the Ontario, Simooe and 
 Buron Union RaUroad, as capable of (^ving much more satisfaotoiy 
 information than ai^y I ^ghtgivii . 
 
 Btitas theCommitee seem Vniuomi that I »hould answer their 
 questions, I cheerftdly do BO. \ 
 
 I introduced the CoWctors to the^ank of Upper Canada, and 
 rendered them any aesisiance in my po^r in the negpciation of the 
 £50,000 Debentures, but\received no reni^eration present or pros- 
 pective therefor. 
 
 Yours obedientiy, 
 
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 (Signed) ' 
 
 j.aBawESv 
 
 \ Mayor. 
 
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 194 
 
 « 
 
 Councillor Macaonalcl,Becoiided by Councillor Green, movcfl,— 
 That in conBequoncQ of the communication just read havrng been 
 received from his Wor»hip the Mayor, the following report be BUb^ 
 Btituted for the one previously adopted,— which was earned. 
 
 (See Report, ]}Ost,Jiratii/ printed:) 
 The jproceedings of the Committee' closed here. > 
 
 .i" > , ^^ J _ _ . ^Monday, Feb. 21, 1858. 
 
 The Select Committee to whom was referred the petition of David 
 Paterson, Esq., and others, brought up a report, which wto received . 
 
 and read, and is as follows: — , /^ „ i,,. ^^ tXa 
 
 TooTworship/ul the Mayor, Aldermen, and €<mmmaty of the 
 
 City of Twonto. 
 The Select Committo to whom was referred the petition of Bayid 
 Paterson and others, beg leave to submit the following Jeport, with 
 the accompanying evidence, viz. >—. ^ 
 
 Your Committee find that the coi^tractors of the Northern Railway 
 received £50,000 of debentures from ihe city for stock m the road, 
 which they sold at 20 per cent, discount, which appears ^^ your 
 Committee to be the fiiU value of the same, aa evinced by the 
 evidence of various parties before your Committee. 
 
 ^It is forther apparent that 'the city intereste have not in Ae 
 slightest degree sufiered by the transaction, ^and that the contractors 
 of Uie Northern Bailioad are perfecUy satisfied j and that the Mayor 
 : m officers of the Corporation had nothing to do with the negociation 
 of the railway debentures. And fiirther, your Committee-recommend 
 that the whole, or so much of tiie evidence given before the Com- 
 mittee as may be considered neces^ for the in&imatiou of Ae 
 citizens, be published/ . j / > " < 
 
 All which is respectfiJly Bubmitt^, . ■ 
 
 WM^ GOODEBHAM, Chaimian. 
 
 (ift*rt"^*tee Roomj Febroary 21t 1853 . ' 
 
^^S^F 
 
 &:'^' 
 
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 ■■■■-/■■■■■• '••*'".., •■■■■• . f ■■ 
 
 The report first adopted as above mentioned, and for which that 
 «bove given was eubsequently substituted, was as follows : 
 
 7b'<Ac Mai/or, Aldermm and Commmialti/ of the City of Torm^, 
 in Common Vowicil UHHcmblvd. 
 
 The Oommittce fo whom was referred the petition |of David Pater- 
 son and others, on the subject of the issue and sale of City debentures, 
 beg leave to report^ . ' . 
 
 That your Committee having taken all the evidence in their power 
 to obtain on the subject referred to them, beg leave to submit the 
 same to your worshipful body with no other opinion of your Com- 
 mittee than that they cannot come to any very satisfectory conclusion 
 on the subject, in consequence of your Committee not having power 
 'to send for persons and papers and to examine the witnesses upon 
 Oath.^-' ■ •■ 
 
 four Committee, however, feel it to be their duty to state, that 
 they areof opinion that the interests of this City have not suffered 
 from the transaction in question, so far as your Committee has beeh 
 able to discover. 
 
 The extracts from the p^phlet close here. „ 
 
 Cotton* 8 Release, being ExJiibit Q., referred to in the evidence of ^ 
 
 John Hutchinson. i - ' 
 
 By an instrument under the )iand and seal «f James Cotton, dated 
 the 19th December, 1853, he thereby declared that he made no claim 
 to the money in question in this cause as against the City or the 
 Plaintiffs, as representing the City in this cause. If the City is 
 decided to be entitled as against Bowes to the money received by 
 the latter or his firm, then he made no claim to it; and in that case, 
 be released and surrendered all claim thereto, or to the matters in 
 question in this cause, reserving to himself the right of suing Bowes, 
 or Bowes & Hall, in case it is decided that the City has no right to^ 
 the said mone]^ 
 
 "S, 
 
 Affidavit of Robert tHUcington Crooks, of the City of Toronto, JEsq^ 
 
 Ii Bobert Pilkington Crooks, of the «ity of Toronto, £sq., make 
 
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 oath and nay, thnt I know and ilfc acquainted with the handwritlnR 
 of the Baid Defendant, having frequently Been him write and wgn 
 his name; and I Hay, that the letter under date of the ninth day of 
 April, one thouHuud eight hundred and fifty-two, from tho.Ba.d 
 ■ Defendant to ThomaH Wilson, ^n the said letter named, is in the 
 handwriting of the said Defendant, and the signatyro "J. Q. Howes' 
 to the said letter is the proper handwriting of the said Defendant. 
 This letter ip now produced and shown to me Ut the time of my 
 swearing to this affidavit, and is marked with the letter A. I further 
 pay, that the letter under date of the tenth day of June, in the year 
 af(.resaid, also from the said Defendant to the said Tlioma8"\V»lson, 
 is also in the handwriting of the said Defendant, and the signature 
 "J. a. Bowes" to the said hwt-mentioned letter is of the proper 
 handwriting of the said Defendant. The said last-mentioned letter 
 is now produeed, and shown to mo at the time of swearing this affi- 
 davit, and is marked with the letter B. And I further say, that the 
 letter under date of the twelfth day of Jupc, in the year aforesaid, 
 also from the said Defendant to the said Thomas Wilson, is also m 
 the handwriting of the said Defendant, and the signature "J. 0. 
 Bowes" thereto is the proper handwriting of the said Defendant. 
 The said last-mentioned letter is now shown to me, and is marked 
 with the letter C. 
 
 ■ (Signed) ROBEBT P. CROOKS. 
 
 Exhibit k^ referred U> in Mr. Croohl Afidamt. 
 
 Toronto, 9th April, 1852. 
 My PEAR Sir:— 
 
 I am in receipt of your faTOur of the 18th ultimo, and delighted 
 to find that your attention, in connection with the interests of Canada, 
 has been directed to the establishment of an agency in Great Britain. 
 Such an agency, if managed by a competent person— one thoroughly 
 acquainted with the resources of Canada, and at the same time favour- 
 mbW kttown to JheWiWiata of England— in feet, on< poBseawng 
 
 • JBUJ" I t^ S.«l^^* 
 

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 th« oonfldenoo of both parties, wouW bo of inoiloulablfi ndr<int«go to 
 tbifl country. For want of »tU«h ou agoikoy, our debouturos h»v« \ 
 boon Hold at a ruinous diHoount. In tbo proHcnt HUit^ of tho money- 
 market in Knj?lund, it m diHtroditiiblo t^ our JinuHritr* tu allyw our 
 municipjil »lcbcnturcM to bo hoW bolow par, conHidering the undoubted 
 security they afford to the capitaliHt. . 
 
 Some time since, with a view to the final cstablishrwint of an 
 aRency of this nature in London, I 8UHfj;c8ted, through the J'dtn'fit 
 newspaper, the advantage that niUBt accrue to this country firom the 
 hifcours of a ropular Lecturer in Englund-r-one well acquainted with 
 the advantages Canada holds out to the >well-diTCcted efforts of the 
 industrious mechunir and lohounr, as well as the ample field it opens 
 up for the safe and profitable investment of capital. The suggestion 
 met with general approbjition from the local papers, and some able 
 letters were written by other persons on the subject. Yet, as it is a 
 matter in which so many are ecjually interested, it is likely to bo 
 'sometime before the suggestion is praotically acted on.. "What 
 M the business of every one, is trulif sa,id to he tlui lusiness of no 
 
 one. 
 
 y 
 
 I had sdfcne idea of going to Europe in May next, as Mr. Halllias 
 told you, but I find it will be out of n^ power to leave home at that 
 
 ■time. . ,, ■ . ■•/■■.. 
 
 #. ■- ■ • ■ . • ■■'..■.■'- 
 
 A large amount of municipal debbniuires will have to be disposed 
 of in England during the ensuing summer, to provide the "needful" 
 for the eonstruotion of the " Ontario, Simcoe and Huron" and the 
 "Toronto and Gttelph" Railways. IBhouId such an agency as that 
 feferred to above not be established, an agent will bave to be sent 
 from Canada to negotiate those securities, or some Company Jn 
 London, wholly unacquainted with the nature of our debentures, 
 will have to be employed. Should an agent be sent to England on 
 behalf of the Toronto and Guelph Company, of which I am President, 
 be will be directed to take advantage of yonr valuable assistance in 
 tlie sale of the securities of the Company. You may find an agency 
 of this nature well worth your own attention. Should you think so, 
 you will have my cordial assistance in every possible way. I shoidd 
 like to know from you whether the advantages which 1 contemplato 
 
 
 
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 198 
 
 Culd ftrffl© to tWii coontry iVom the cffortfl o^n oblo and judiolouH 
 otunir in Kuropo ar« likely t<» bo rcalizod. I forward you Ronio 
 colonial paporH. In one of thorn you will find the Hubjoct of an 
 RgoUt for (Canada in liondun rofcrnul to. My opinion in that Toronto, 
 Kingttton,,M«lntr«al, and Ilumiltoii ought to pay tho cxponHOH of an, 
 agent tlicinHolvoH, iind I am HatiHfi.id they would be indirectly b<5no», 
 fitted to ten tinu« tho buiu necowwry for that purpose. 
 
 Tho parcel you nont to Mrs. WilHon ban ju«t arrived, and hafl been 
 forwarded to her addrenH at Cobourg. Hoping to bo favoured with 
 a letter from you m often m eonveniont, :, _ _ _ 
 
 I am, ray dear Sir, 
 
 Yours truly, 
 ' i (Signed) J. a. BOWES. - 
 
 To Thomas Wilson, Esq. 
 
 Exhibit B, rrfcrml to in same affidavit. 
 
 Toronto, 10th June, 1852. 
 
 Mtdear Sie: / 
 
 I am favored with your letters of tho 7th and 14th of May, and 
 fully concur with you in opinion that it would be a decided advantage 
 were you to pay a visit to this country, aft«r having agcertianed the 
 information capitaUsts in England reciuire regarding the municipal 
 securities of panada. I should have submitted a proposition 
 on this subject to the directore of the Toronto and (Juelph Railroad, 
 had not the Canada Company through their Coiajjiissioner, Mr. 
 Widder, who i8 himself a director of tho railroad, irolunteered to 
 negociate the debentures of the company free of charge. I may 
 mention here that the Corporation of Toronto has agreed to aid the 
 Ontario, Simcoe and Huron Railway, to the extent of twenty-five 
 thousand poufids currency; the debentures of the City will be issued 
 to this amount as the workv progresses, the issue not to commence 
 until one hundred thousand pounds have first been expended on the 
 road. I propose to make those debentures payable in London, and 
 
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 * -. 
 
and 
 
 A -. 
 
 V'»- 
 
 1^9 
 
 have thorn ncffoc'mtcd by nil n^ent nppo/ntca by tbo CoTKiml.on, and 
 hand their vuluo in canb to th« Uuilw.iy Cuipany, and thuH prevent 
 the credit ..f tho.Cit^ bcinK injured by cntruHtin^ the wile «.t it* 
 bondH Uy unskilful liand^., ur their 1)ein« forced int^ the market by 
 needy railway OpIitmctorB. * «• 
 
 Tho nocurity for the punctual payment of the interent and principa) 
 of municipal bondH pn.vided for by the provincial act under which 
 thoy are i«Jued, i« ho ample that no doubt can plWiblybe «»terta.ned 
 reirardinK their validity ; their pqj^'ect HQCurity being once cntablmhod 
 rorely a favorable Bale could bq effected id the prciwiit rtato of the _ 
 money market in London. ' 
 
 I applied Bomo time Binco, through tho Bank of Tipper CanadMo 
 Wgociato a loan for tho City of Toronto to tho amount of £50,000 
 Bterling, to redeem dcbentuae« and small City notes now out isBued 
 under an old provincial act which did not provide a sinking fund for 
 their redemption ; the Bank offered to guarantee the principal and 
 interest but nothing has yet been done in the matter, beyond a fovor- 
 able letter from Messrs. Glyn, IlallUax & Co., agents of the Bank of 
 Upper Canada in England. ^^^ ., -^ 
 
 I will forward as soon as^ishcd a statement of the City debt 
 and revenue, and should my views bo apprmred of by the City Council 
 regarding the loan and the manner of negociating. City debentures 
 for railway purposes, you will hoar from mo on tho subject. 
 
 Tour views of tho Quebec and HiTifax railroad are those enter- 
 tained by nino-tenths of the thinking portion of tha inhabitants of 
 Upper Canada; indeed thoro ean scarcely be a difference of opimon 
 on the subjoeUof course I do not now speak of tho project a. a 
 military work, though even in this light, I look on it as a^wild and 
 unnociUy spoculation-but as a commercial undertaking I consider 
 it would be quite useless, entailing on a young country an unwanun- 
 table debt, without the most remote probability of a return for the 
 ouUay. The country from Quebec to Halifax is, for the most part, 
 a wUderness and the knd so bad Oiat it could not at any reaspmiblo 
 
 expense be rendered productive. 
 Th at portion o f tha proposed Uno between Qaebeo and Detroit \» 
 
 
 
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 W4 
 
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^^"■■"'■•'v^' 
 
 
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 200 
 
 * ■ " ■ ■ ' ',■■■■'■■ 
 
 diffwrontlymtiuitod; honj tho road wouM puM thi^iujkb oMof the'iiiart 
 fertile tnict* of country in Cuiiadu ; tho woiitoni towHuhipn art 
 rapidly iiivrbiiHiii^ in u>rriiMiItuml woiilth and in population, and in 
 addition to the tnido of tluH riMing country, thin ruilroud will, whort 
 conHtructod, form the niuin artery thrqu>:h which the products of tho 
 WcHtorn HttttcH niuHt find their way to the Kuwtcrn iMurkct. 
 
 Tho return of tho crop of 1851 for tho WcHtom Towti«hipi ihows 
 ftn IncrtiAHu over that of 1H50 of nearly 2!) per cent., and thuro ia no 
 roaaon to «uppo«e hut thin incroafto will continue for many youra to 
 oomo. Tho action taken by tho diflforcnt Alunicipelitioa hotwoon 
 KingHton and Toronto in procuring a eurvoy of thia portioh oft th« 
 Toronto line clearly hIiowh the fuvouruble opinion entertained of tjila 
 road by tho parties luoHt interoHtcd. Should thia poftion of the 
 enterprise fail in reniuncruting tho stookholdcra contrury to tho ezpeo 
 tations of those best able to form an opinion on tho subject, one thing 
 is certain, it cannot fUil to bo of incalculable advantage to tho country. 
 
 Should tho people or govemmont of Groat Britain rcfuso'to grant 
 tho aid required for tho construction of thin Ilailroad 6n ^ho ample 
 security wo are prepared to offer ; they raoy filTd when lojgi late that 
 the connection between this counti*y'ond the United^ States is be- 
 coming too close commercially. Tho Yankees know tho importance 
 of the trade of Canada, and they are making every cffi^rt to secure it; 
 the pooplo of Canada see this, and they see nkjo that British capital 
 is freely advanced to the people of tho United States to construot 
 those works designed to alicftftto the trade of this country from Great 
 Britain; seeing this, the men who volunteered to suppress the rebellion 
 in 1837, cry out for anncxati^ in 1849 as a means of securing from 
 Great Britain that considcnition which they were led to believe coald 
 not be obtained so long as Canada remained a British' Colony; 1)ut 
 trhy do I write thus lb you, there is no one better aware of this &ot 
 than youreelf. This impression I am happy to say is^iow wearing 
 off, and it will remain with tho government of the Earl of Derby to 
 secure a continuance of that loyalty and attachment of the colonies 
 to Great Britain for which they have boon long conspicuous, by giving 
 encoumgement without reference to part^ to every Canadian enter- 
 prise calculated to promote this desirable result. 
 
 
■'/..'^•^^ 
 
 ^^ 
 
 ^ 
 
 201 
 
 tho "BrItlMh dovominpnt" that tho growinfr «»tvRnta(?p of rnnnan to 
 (Inmt Hritnln can Imrdly hu ovornitoti, IhiIH iim nn outUit fi»r her 
 Hur|»luH iH.pulutum, nn<l m a i.mUmm tor lu«r iiianul'iicturon, an w«)l 
 KM tlui Moiino from whiuh kIio couM gut her Hupjily of corn in tho 
 event of a diffcrcnco with other natioMH. 
 
 It Hhonl.l nNo bo homo in nihul that every facility \n Voinj? givott 
 l»y tho •' llnitodl Htatts " to incrcaMe tlio t;oninierci«I connection between 
 tliat country anil Canada, and that tho rclationa of debtor and ennli- 
 tor oro tho HtrongoMt tien tliat bind countrioa together. I ahould 
 apologiw) for tlie unusual length of thia opiHtlo, but aa I very aeldom 
 have to apologino for Hueh an error, I tnwt you will cxouso it, and 
 
 believe me, ' 
 
 My dc&rSir, 
 
 »* Your's truly, 
 
 (Signed) V J. Q. BOWKS. 
 
 \''. 
 
 
 
 .^*", 
 
 Exhibit V, refcrrcdio in *amc Affidavit. 
 
 '" ■ ^ Toronto, 12th June, 1852. 
 
 My dear Sir— 
 
 I am thiH moment in receipt of your note of the 28th of May. Aa 
 Iklr. Halt leaves Toronto for Europe in a few hours, I hasten to 
 acknowledge it by him, though I wrptd you a long letter on the 10th 
 instant. 
 
 I had an undefined account of arrangements^ being ahnit to be 
 made with railway cohtrajctors in England named *' Brasscy and Bctts," 
 who ait!, I understand, connected with Pcto, for the bonstruetion of 
 tho Quebec and Halifax llailway. This wild scheme having been 
 abandoned, I was of opinion that an^ undcrstanding-wtth the railroad 
 contractors would fall through. The people of Canada will look with 
 suspicion on any arrangements for the construction of a B. B. in^i 
 Canada, unless it is let out, in the usual way, to the lowest' bidder, 
 The Northern B. B. is &job, and from what I hear of the "Great 
 
 Western," it is no better : they are both in the hands of " Yankees." 
 
 ■ m 
 
 ♦ ■ 
 
-««^?Vt^.'f" JMs«i;#ipkr j|" ,A|j^]^|||Mi 
 
 My opinion in, the present Ministry would not cUure to make an 
 arrangement that would injure the credit of Canada, if they were so 
 inclined. 
 
 J pulpMe going to Montreal in a few days, and very likely will go 
 as far as Quebec before I return. If I hear anything of the railroad 
 yoi on my way, I will make some enquiry at head quarters^ and in- 
 form you when I next write. Hoping to hear from you a» often aa 
 
 yoa oan.sparo a momenti 
 
 I am, my dear Sir/ 
 
 . ,^ " Yours, Ac., 
 
 (Signed) J. 0. BOWESl 
 
 
 Si I! 
 
 .' I 
 
 Further ExtracU from PampJdi'f re/erml to anic. --(202 to 206)- 
 
 Jieporio/FinanceCommittee of 19th August, 19^1, 
 
 On the 8th> of August, 1851, the manager of the Ontario, Simcoe 
 and Huron Kailroad Union Colnpany, aided by certain resolutions 
 adopted at a meeting over which John Arnold, Esquire, presided^ 
 applied for a loan of £35,000 upon certain conditions set forth in the 
 said resolutions ; wKch appKcation and resolutions were referred to a 
 select committee. Ilh6 select committee, on the the 18th of August, 
 1851, reported :" That upon the mostattentive consideration given by 
 your committee to the propositions signed by Mr. Arnold, as chair- 
 man/and after frequent interviews with the manager, as well as with 
 one of the contractors, of the company, your committee would 
 recommend that in lieu of the proposition?, or either of them, the 
 Council loan to the said company their debentures, to an amount not 
 exceeding £35,000, payable in twenty years, with interest on, the 
 same, payable haJf^yearly, issuable oh the same ratio as the bonus of 
 £25,000, taking as security for .such debentures the bonds of the said 
 company to the same amount, payable in ten years, with interest half- 
 yearly, secured on the road to the satisfaction of this Corporation 
 upon the recommendation of the City Solicitor. 
 
 "And further tliat it be a condition to this loan, that the road 
 from this City to Lake Simcoe, or the Holland Kiver, be completed 
 ^ intwo years from the kt o£ January next. 
 
 i; 
 
W^^T 
 
 2m 
 
 "And ftiitW, iliAt M long as the loui of £85,000 continnofi, tbe 
 Mayor of this City, for the time being (if ho be not a director in any 
 other company), bo a director in the above mentioned company ; if 
 he be a director in any other company, then any Alderman of the 
 City for the time being to be nominate by this Council to be V 
 director in said coiupiiny." 
 
 This report was adopted by the Council on the said 18ih of August, 
 
 1851. ■ .. , ^ . 
 
 
 Remlvtlon of (.'ommon Con nn'f tif 29th ofMyy 1852. 
 
 I t)n the 2nth of July, 1852, the Mayor communicated to the 
 Cjmncil thu«oxpcdioiicy of oonfinuiiij,' ah offer which he had made to 
 the contructora of the Outam., SiuiciK) and Huron Union llailroad, 
 in con8€(iiience of some difficulty which had pre89ntcd itself in the 
 matter of the Directors giving the city security upon the road for the 
 anxountproposed to be advanced to the Directors by way of loan, and 
 :i?hich offer the Mayor stated to have been in substance as follows : 
 
 "That the contractors should agree to relinqubh the grant of 
 £25,000 made by the Council in aid of the railroad, which said grant 
 .has been transferred by the directors^ to the contractors, and that'the 
 direotora should relieve the CouncU from the agreement to loan the , 
 Company the sum of £35,000, upon certain security, upon condition 
 that the CouncU should take stock in the said road to the extent of 
 £50,000, paying therefor in Debentures, at the same times, and in 
 the same proportions aa the work progresses, as it was agreed the said 
 grant and loan should be advanced— to which said contractors had 
 assented." .•■ f-/,' 
 
 Upon this communiQation, the Council adopted the following 
 resolution:— 
 
 Whereas his Worship the Mayor has informed this Council, that 
 the contractors of Uie Ontario, Simcoe and Hufon Railroad Union 
 Co. hive accepted a proposition made by him, subject to the appro- 
 
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 ;•■■.■?-• : 
 
 '■'-'"-- ■ . ■ ; 
 
 bation of this Council, in view of the diflScultics which have eiisted 
 in the execution of a inortgugo bond by way of security for the loan 
 of £35,000 formerly vt)tcd by this Council, to the effect that the con- 
 tractorH shall Hurrcndor the grant of £25,000 made by the Council 
 and transferred to such contractors in part payment of their contract, 
 and also that the Directors shall waive the aforesaid loan of £85,000 
 altogether, on condition that in lidu thereof the Council wiil take 
 stock to the amount of £50,000 to be paid by the issue of City Deben- 
 tures ift the same proportions as the debentures fpr the above loan 
 and grant were authorised to he issued. - , . 
 
 Bo it therefore resolved, that the Standing Committee on Finance 
 and Assessment be authorised to complete such arraiigment, provided 
 that no legal difficulty shall occur in carrying out this resolution, and 
 provided also, that no alteration shall take place in the conditions upow - 
 which a portion of the market block was gniutcd to the said Company, 
 particularly with regard to carrying the railroad to the eastern limjts 
 of the City water lots. , 
 
 This resolution was communicated to the Board of Directors of the 
 Ontario, Simcoe ancFHuron Railroad Union Company, and: to which 
 the following replywas received ; 
 
 ( Office of the Ontario, Simcoe & Huron Union Kailroad Co., 
 \ . Toronto, 30th July, 1852. 
 
 To the Worshiiful the Mayor of Toronto, 
 
 glB^—The Board of Directors have under consideration a resolu- 
 tion of the Council, passed on the 29th iri^nt, relating to a proposed 
 new arrangement for the issue of debentures to the contractors, a 
 minute of the Finance Committee thereon, and a letter from M. C 
 Story & Co., stating their willingness to accept the propositions 
 embodied in the resolution of the City Couixcil first mentioned, I now 
 beg to send you a copy of a minute made by the Directors of this 
 Company in relation to the documents referred to : 
 
 Resolved— That the Board of Directors agree to the proposed 
 arrangement between the City Council and^M. C. Story & Co., sub- 
 mitted in the resolution of the City Council of the 29th instant, with- 
 
 t) 
 
 b< 
 
 ai 
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n. 
 
 V r 
 
 1^. 
 
 . 205 ■■ 
 
 out prejudice; to the existing nprccments between the Council and 
 the Board, and the contractors, in the event of the one proposed not 
 being acconiplished. And farther, without prefudiee to the other 
 parts of the said existing agreements, winch arc not to be affected in 
 any way by the substitution proposed for certain parts of those agree- 
 
 menUi. 
 
 I have, &c. &c. 
 
 (Signed) WILLIAM SLADDEN, 
 V '■■:'■"■ Sccretaiy. 
 
 % < 
 
 ;4 
 
 /' 
 
 m 
 
 'y * Toronto, June 28, 1852. 
 
 Mr. Alderman Thompson, Chainuan Finance Committee, 
 
 Sir— On ^hb part of the Directors of the Ontario, Siracoe and 
 Huron llailroad Union Company, and the contractors of the satd 
 Company, I beg to intitnate to you that we arc prepared to take the 
 4ebenture8 of the Corporation . under a by-law, without the form of 
 advertising for three mouths, and to assume the entire responsibility 
 of so receiving them. ..^ Ss # r 
 
 The contractors, acting under legal advice, agree to this course as 
 the best that can be adopted under the pecuUar circumstances in 
 which they are phwed. - -^ — _ ^^ __^ „^ — ^^t^^ ,_ 
 
 Should the above mode not be adopted, I submit as the next best 
 course, that a resolution should be passed by the Council similar to 
 
 the draft enclosed. -^ ' (^ABLES^BERCZy, 
 
 . Presidenti 
 
 ' ' Toronto, February 17, 1853. 
 
 To The Select Committee of the GouncU of Toronto, appointedl^to 
 enquire into certain ihatters connected with the sale of City 
 Debentures, V^ 
 
 GENTLEMEN,-Your notc of^stcrda/s date, requesifng me> 
 furiiish such information as I may possess on the subject under 
 investi^tion, is received. 
 
 ii 
 
 ;» 
 
 
 
 
 p .K'»a 
 
 ■ llpl 
 m 
 
 
if. 
 
 H 
 
 « 
 
 „'y^ - 
 
 lo oonneotion with thin imbjbk, atid in ftrJer to* pM^MT an^er* 
 .tiUnding of it by partica not convoreant with the whole matter, allow 
 me to state briefly the tranHttctioii jkhroughout, bo far as the City has 
 .been ooncemod. \ 
 
 The Committee are doubtless awai« that the City of Toronto hj a 
 resolution of their Council, agreed upd^ certain conditions to issue to 
 iis sixty fthouiaud . pounds of their dipbentiiTOd, on account, of the 
 Ontario, Simcoe and Huron'' Bailroad tJnion Company, £36,000 of 
 which wdre to be in exchange for an equal amount of Company's 
 bonds, and the balance (£25,000) as a bo^us, being an inducement 
 offerecl to take the work. Subsequently, \by a mutual arrangement 
 between the City, thd Kuilroad Company ahd ourselves, the City wqs 
 released from the above obli^tion, together with the bonus. The 
 City, through their Council, then purchased of us £50,000 of stock 
 for which we took £50,000 of their, debenture^ 
 
 These debentures, after being issued to us and paid for, were eon- 
 sidered entirely at our disposal, wo being the onhr parties having the 
 least interest in them ; Ve therefore disposed of them at what' we 
 regarded as a fair price, and no subsequent event nas yet satisfied us 
 tiuit the arrangement was injudicious. 
 
 It is taken for grouted that the Committee do not ^desire to enquire 
 into our private business transactions, and trust therefore that the 
 above statement will prove satisfactory, as shewing that no undue 
 official interference had any influence with us in the msposition of 
 the debentures alluded to ; and to relieve the City from any anxiety 
 on our account, I beg leave to state that we are entirely 'sa^Msfied with, 
 ^he operation. * 
 
 ■v^ V (Signed) M^ COtTKTWKiaHT, 
 
 '"■.,, Acting member of the firm of M. C. S^oey & Co. 
 
 - ' •"'""* I I . 111. I . . ■. .: \ •■ • ■ ■ 
 
 - ^ Buffalo, February 21, 1853r 
 
 To The Select Committee appointed by the Council of Toronto i^ 
 .^ enquire into the sale of certain City debentures. . ^ 
 GENTLEMEN,— Your notc of the 19th instant, requesting my\ 
 ^mswer to certain interrogatoriesf^ereib contained, is received. \ 
 
 or 
 sa 
 til 
 tJ 
 ai 
 
 t—*^ 
 
 ;5'- 
 
^i^^%Jt"^t"^' ' 
 
 ^Wi'^^^ 
 
 / 
 
 207 
 
 ' " ■ . _ • ' ^, ■■..■•■ ■ . < \ ■■ 
 
 In reply to the first question, I can only ^y that neither niywlf 
 or any of our firm over made arrangements, to itoj^nowledge^ for thl^ 
 sale of the debenture* alludei^ to, or any portion of them, at par in 
 the city of New York/ and that the disposition that wo« made of 
 them, answered our^purpose better, so far a» my knowledge goes, than, 
 any wo could then, or any time |>revioUBly, have made. 
 
 In snawer to ihe scopad and third enquiry, I say— J(o*, ' . ' 
 
 (Signed) M. COURTWRIOHT, 
 * Of the firm of M. CvStoey & Co., 
 
 ts 
 
 >.— "^a 
 
 JVote delivered to Mr. McC<n4 on or about the date thereof. 
 « The City debentures (except the last £2500, or ten bends), to he- 
 deposited in Bank of Upper Canada. ^ p s^oilY4 Co., 
 , i '^ , Per Geo. Beatty. 
 
 September 27th, 1852. V - 
 
 • MhJiidoue 8 letter to Mr.. Bowes, being Exhibit. T. 
 
 ' ~^ y/ V^ : . < X Bank of Upper Canada, 
 
 / I Toronto, 28th Septemher, 1862.. 
 
 JoHW G. Bowes, Esquire, », 
 
 / ■■ ' V '■ Mayor. .■ .. ■■ .■■'■■■ . - ■. 
 
 /sra.-I beg to inform you that I am authorized by a friend, ott 
 lUfof^ertain parties inEngland,i«makotl^M^ 
 the Corporation of Toronto, in the event of the Bill for the £80,000 
 sterling loau passing viz i - 
 
 It is proposed that debentures for the whole amount shall be issued, 
 payable, principal and interest, at ascertain Banker's in London, the 
 latter, Semi-anntially. 
 
 ^ Interest to commence from date either 1st of November or 1st of 
 D^ember/as may be found convenient; with reference to passing; 
 
 ofkhe act.^ 
 
 
 ,--_:l - -^a . 
 
I^BT'^'^*??^ p"*l> F 
 
 , f^^ Wli , 
 
 ■"►.* 
 
 1% 
 
 208 
 
 The bonds to bo taken at par and paid for, without any dodtictjon, 
 
 at tho par of exchange of £1 4h. 4d. *'«'^«'«'^, ?« 'J« f,;'!'*'"5' 
 ThiH would give £97,«33 6b. 8d. currency, of which £47,888 Ob. m. 
 would bo payublo in cuHh and £50,000 in Gity bonds. 
 
 Tho £80,000 sterling bonds to bo delivered to this Bank, for trans- 
 mission to London. 
 
 If tho Corporation choose to authorize £2000 more, or £82,000 
 sterling, to be issued, that amount would betaken on the same tenns. 
 
 The Bankers in London will charge iU Corporation one per cent, 
 forpaying the dividends, that being theiyjsuai commission. 
 
 I «jsp<fetfully beg leave to^sblicit an early answer to the foregoing. 
 
 I have the honor to bo, 
 
 Sir, 
 
 Your obedient servant, , 
 .; (Signed) ^THOS. 0. RIDOUT, 
 
 . Cashier. 
 
 ha 
 
 £^ 
 
 
 ^^>* 
 
 ! 
 
 ■I- 
 
 ■ I ' • ^ 
 
 Exhibit U.f Icing another letter from same to mme. ** 
 
 f Bank of Upper Canada, 
 
 I Toronto, 14th October, 1852. 
 
 gift,— I have tho honor to acknowledge the receipt of your, letter 
 of the'llth instant, in which you require, for the' information of the 
 Standing Committee on Finance and Assessment, a specification from 
 me of certain matters relative to the new ^oan alluded to in my letter 
 of the 28th ultimo, and to which I beg to reply as follows— via :' 
 
 The enclosed paper is the form of the debentures proposed to be 
 issued, bearing, as you will observe, coupons for the half-yearly 
 interest. 
 
 The debentures are required to be made payable at twenty years 
 from date, at Messrs. Masterman, Peters & Co., Bankers, London, 
 and to be dated 1st of October, 1852. 
 
 ■■-Sii^nr^Esirrss — fsr-riiBirisswTB 
 
r-f.;'" 
 
 BtlOll) 
 
 rling. 
 
 ». 8d. 
 
 iranfl' 
 
 * . 
 
 2,000 
 tonus. 
 
 cent, 
 igoing. 
 
 bior. 
 
 
 209 
 •■'.■■' ' 
 
 The intercut ^itbe rate of six per cent, per annuitt, to bo payaUo 
 half-yearly at the same placo^namely, Ist April mi 1st October. 
 
 The amoant*of debentures proposed to bo purchased in England is 
 JE82,000 sterling, to be divided as follows— viz : [^ 
 
 82 Bonds of jC50b sterling each ^1 ,000 
 
 104 " 200 " " 82,800 
 
 82 " 100 " " ^i^^^ 
 
 InaU..........v....M...iC82,000sterling 
 
 The above £82,000 sterling will produce, at the par of 109 J, the 
 Bum of X99,766 13s. 4d. currency, on if £80,000 sterling in same 
 
 proportion. 
 
 I have the bonor to boi 
 
 ■ Sir,. 
 
 Your obedient servant, 
 
 THOS. 0. RIDOUT, 
 Cashier. 
 
 ^ 
 
 : 'f 1! 
 •t 
 
 lada, 
 ,1852. 
 
 ir. letter 
 1 of the 
 on from 
 ly letter 
 iriz :' 
 
 d to be 
 if-yearly 
 
 > 
 
 ity years 
 London, 
 
 v^ 
 
 i. -. iifc ' it ' j^iiit -x ^ i:!^x - ^ — 
 
210' 
 
 
 
 Furihn' Krfrart»/rom the PampUet, Imng ExtracUfrcm StatemmU 
 mtult h,/ Sitmud Thomimm bi-fore CommitUe of Council, rtad 
 Kkeut}Hhi»croM'*JC<inwiati<yn. 
 
 The Finance Oomnitttco, conceividK that the City Finance! woroin 
 ovory way honcfittod by thcHO arranKoinontu, gladly aiwentod. The 
 offer ...ado throuK'h the Ca«hicr of the Bank of Upper Canada wa. 
 connidorcd tt..d approved in CoUncU on the uamo evening, and the 
 urniiigomei.t8 cloHcd. t ^ 
 
 Q Hafl the management of thto City Finances, during the incum. 
 >H,„cy of the prcHOnt Mayor, tended to enhance or depreciate the 
 X'ity credit? ~ ' . 
 
 A That the fimAlftM position of the City has immensely improved 
 duriLg the prcHcnt Mayor'a tenure of office is undeniable; how ftr 
 hiH Worship has contributed to its improvement is of course a matter 
 of opinion. For the last three years the Finance Committee has 
 been unanimous in their determination to redeem the City credit 
 from the disgraceful condition in which they ^^fd »t^^^"''»'^^ 
 overdue, interest unprovided for, credit obtained at 26 or 80 per 
 cent, sacrifice, were matters of weekly occurrence; the Banks would 
 scarcely afford the Council the ordinary accommodation ^ted to 
 merchants. AH this is changed. DoubUess the improved state of 
 our provincial credit, aUd the prudent restraints imposed upon 
 munk'ipalities, have done much towards this change; but, in my 
 opinionVthe City of Toronto owes ^^^^ '^l'^'^^':^ ,^^''^. 
 over other municipalities in Canada to his Worship the present 
 
 Mayor. " . 
 
 For obtaining a recognition of the principle of a reduction of Ae 
 Hlnkin.. fund on municipal loans from 6 to 2 per cent.-an inestimabto 
 
 aSl-the whole r-™^ '^"f^ tf ^^T^f 
 
 is solely indebted to him fbr perseveringly drawing the attention of 
 I>,ndon capitalists to the intrinsic value of our mWdcipal se<mntM. 
 To his personal interference, as I believe, the City w^ also indebted 
 for largrmoney wcommodation from the Bank of Upper Canada on 
 
 -li i 
 
211 
 
 Miuny important occanlonH. I iiiiMht mention nun»orou»i inntnnccH 
 whflwi, to My own knowlwJgo, tlio Mayor Iiuh labounul for th« cHtnlf- 
 liHhui.uit of our civic credit; nnd if throoyonrn' oflTuiiwnt nnd ftnil.MW 
 oxortionH for tho fiimnciul proHiMsrity of tho ('.ily can ho approciutcd, 
 th«n, in my opinion at hmst, no man \h U'Hov .mtitU'dto claim honour 
 in that h«half than tho pr«iwnt Mayor of tho City. 
 
 KxmniT A. 1. 
 
 Jk!ni/ hUt,ttct»rfjWrciUo in /hpoHifionao/Charkt Jh,li/,p.OOantc. 
 
 IJxtmH /rom%e Jitport No. 21, of the Stmnfinf/ Committee, on 
 Fiiianee qiitl Agxemvieiit, dated 2(}th Xuirmher, I860 {referred to 
 tnlhe/ullowini/ Jieitoltifiim). 
 
 2nd. in tho proportion an tho work progrcsscfl, aH one l« to ton, 
 viz., ono hundred thouwind poundn to ho expended on tho Road 
 before any advance i.H nuidol^ftho' Corporation, then Debentunw to 
 bo issued to the (^«intractor8 for W.n tliouHand poumlH, and that all 
 future advance.s bo nmdo in the Hamo proportion, to an amouftt not 
 exceeding in the wholy the Htim of twonty-fivo thousand pounds. 
 
 All of which is respectfully Bubinittcd. 
 
 7 ^ ^(Signed) JOHN G. BOWES, 
 
 .. C'hainuan. 
 
 Comnaittee Iloom, i 
 
 Toronto, 2r)th November, 1853. 
 
 Extract from MimUes of Council, November 26, 1850. 
 
 ! Monday, November 25, 1850. 
 
 The Council met. Tlie Mayor took the Chair. Present:— 
 Aldermen Beard, Bowes, Campbell, Dempscy and Duggan ; Messrs. 
 Armstrong, Ashfield, Bugg, Coulter, Davis, Dunn, James, Kitchie, 
 Smith and Thompson. 
 
 Mr. Thompson, seconded by AlcHfcn Beard, mov^^^hat it be 
 resolved that the sum of £25,000 in Debentures, payable twenty 
 
 
 (il 
 
 
 ■ 5} ' 
 
^> 
 
 III 
 
 tl8 
 
 ycifi »ft«r daU, with InWrwt •! rfi p«f c«nl. p«T innum, ptytble 
 h«lf-ycMirIy, b« gnintod in tUl of tho OnUrio, Himcoo, »nd Huron 
 RuilfoiMl, on tho ooiiclitioM« ict l\.rth in the 2nd okuM of the R«port 
 A.2\, of tlio Ht»ndin>( (lommlttco on KinanoM »nd AuMnnnient } 
 and in order U) oatflnd f« b«n«filH..f tho imid lUilrotd U. all part* of 
 the City, it b« on6the/condition of the abova grant, that th« ternunua 
 for immuger tri»ina/iihBU h« enacted on a jKirtion of the Market 
 Uhyck property no^ v.cunt, mvh porti..n to be leaned U» the 
 Company, iit « nortiiniil roni, for nin«ty-nine yearn, and thiil the hno 
 of llHilroml HhttlJ »M» carried al.mg Palace and Front Street* to tho 
 full oitent of the City Water Lota. Upon which tho yean andnaya 
 were tak.n aa folh»wH: Yeaa— Mcwm. Armatrong, Ikard,. Howea, 
 Coulter, Davia, Dempaey, Hmith, Thonipaon^ H; Naya-Meaari. 
 Aahfiehl. HuKU, (Campbell, Dujrgan^nn, Jumea, and lUtchio, 7. 
 Cirried in tho affirmative, b^f^^tjiuajority of 1. |P 
 
 Monday, Auguat 18, 18^1. 
 Tlic Council met. The' Mayor took tho chair. Prcaent:— 
 Aldermen J. G. Heard, Jl. Board, Cameron, Dempaey^ Kneeahaw, 
 Kidout, Robinaon, Sheard, Thompaon, Wakefield, ^hittemore ; 
 Meaara. Aahfield, Beaty, Bugg, Carr, Haya, McLean, IMatt, l»nce, 
 Ritchie, and Smith. ' ' 
 
 The Council went inth Committee on the following Report of the 
 Select Committed, to Whom tho Communication of tho Managera of 
 .the OnUrio,;5imcofc and H«ron Railroad wa4» referred. 
 
 Tho Special Committee, to whom was referred tho aeveral com- 
 municationaofthePrewdentand Manager of the Ontario, Simcoe, 
 and Huron Railroad Union Company, enclosing two propositions, 
 signed by John Arnold, Esquire, as Chairman of a MeeUng of ft 
 number of citizens, held in this City on the 7th instant, suggesting 
 the manner in which this Council should assist the said Company m 
 making good >he deficiency of £85,000 in the subscription aUotted 
 to this City, ahd aak"in^the^concurrence of this Council in the same, 
 in order that a ^ork so immediately connected with the best Interesto 
 of this city might at once advance to completion, beg leave to 
 report: — ^ 
 
 ; , 
 
 \ 
 
 T-i- 
 
 ■CV 
 
 .■ I 
 
 jlijiiiA^piiWffiiiiWi^ 
 
y- : !fe^ - ' 
 
 eW^^^^W^^^^ 
 
 ■ 218 
 
 That upon tii« tmmi «tU)iitiv« c<»iiiiiilttratiun given by >uur Cuiii- 
 tttHte* to th« pn>poi«itbnt signed by Mr. Amokl m Cbsirmau, tnU 
 •flor fV«M|Ufli)t inUsrviewi with th« Moiiogor im wt-ll wi withuii« of th« 
 Contnuitoni of the('oa»p«ny, your Coinniittio wtiuhl rocoiiiMn'iul tlint 
 ill lieu,of thou* proixwitioim or oithor of llioiu, tliin (Jtiuncil looii to 
 tho Mid Conip«iiy their DulHiiiturcit, to mi aiiioiMit not istctuMlinp; 
 JE35,0(M), payable in twenty yearn, with int.ircut on tho aaine, pnynblo 
 half-yearly, mt amm •» the lUilroad in coiuplotod and ready fur 
 operation aa far w I^ake iSiuicoe, or the navinaUe water* connected 
 therewith, takinK in aeourity fi»r hucIi DelHinturoa the Honda of the 
 aaid Company to tho sttiiio umount, {tayable in tun yeum, with inturoat 
 half-yearly, seourod on tho Koad, to the $ati^activn </ the City 
 Holioitor. 
 
 And further, that it be a condition to thia loan, that tho road iVoni 
 tbia City to liuko Siincoe or tho Holland Kivor be completed in two 
 yean ft^m the lat of January next. 
 
 And further, tluit oa long aa tho loan of XiJS.OOO continuca, tho 
 Mayor of thia City, for tho time being (if he bo not a Director in any 
 other Company) be a Director in the aboye-mentionod Company. If 
 a Director in any other Company, then any Alderman of the City for 
 the time being to be nominated by this Co;mQU to bo a Director in 
 aaid Compuiy. 
 
 AU wliitli is reapcctfully submitted. 
 
 (Signed) NipHN BEVERLY ROBINSON, Jun., 
 
 Chairman- 
 Committee Room, 
 Aug. 18th, 1851. 
 
 Upon the question that the Report be adopted, 
 
 Alderman Wakefield, seeonded by ^derman Whittemore, ih 
 amendment moves, that all fVom the words " so soon," to the words 
 ** navigable waters thereof," inclusive, be erased, and the following 
 substituted : ** issuable in the same ratio as the Bonus of iS2&,000.'' 
 And that between the words " satis&ction" and " of," tho following 
 
 ' % 
 
 m 
 
 
 
i,- , 
 
 • 
 
 
 «• * 
 
 'V, 
 
 'W^ 
 
 III 
 
 *wunU bo ImiertmL " of lh!#_C«iiH*mii«H,'ui...ii ik rocuiiih.«iHUiiuM," 
 whiolt WM unktrad' 
 
 y,,m ...Hi nay- wrr. U.k«.. ... follow. : Y...».H-M.««n.. A.Mi.-l.l .1 • U. 
 Ikn.nl, II IUar.l. ('«rr, lKM..r.v. "»>««. K..rr«huw, Ui.l-M.t. 
 UiUhio. llobi..Ho.„ Tho.,.,«on, Wakofli'UI. un-l NN b.tl....or.s l-t, 
 NuyH-Mc-H".. iWty, H«W. McUu.... I'luit. U.c« hbyl ..ul 
 Smith, 7. Cirrttia in tb.i uff.r...uUvo, by a mtjonty ufO. 
 
 ■•#■ 
 
 Friday, Juno 11 th, lHfi*i. 
 
 TKfl rornicU met TI.o Mayor t.M.k tl.o .bair. PrcHcutr-r 
 Ald«rmon Aru.«tronK, J. (J. H«urd, H.mU.m, Hrook.H, lK...im.y, 
 Tbon.pHon; Cuunclllon., A.hflold. HmUv, U»W, t'«rr, Dun.., 
 MoMuUon, IMatt, Ko...ttin, M...ith, TulljJ|^r.d WH^'bt. 
 
 A communicntlon «f ibo Hccr«tary ofV- Ontario, Sin.cK^ «n.l 
 Huron Union Uailrond Coinpny, on ii.i.U.li..«i.t- due on uctount ol 
 work done oil the road, whm ru..d. 
 
 • Aldonnttn Tl.oinpHon, woc.ndcd by Coumlllor AkI.IIcI.1, ...ovoh, 
 
 that* (:ou..nui.icuti«.. of the Scretary of the t)ntario, S....coo a..d 
 
 ■ HuroSTlUilruad Unjon Company be rulorrud to tbo Standi.,g Cow- 
 
 kfttco on Finunco and AM»«w.uieMt : which wto ordered. 
 
 «J 
 
 n 
 
 %. 
 
 'if, ^ Monday, 2lHt Jui y 
 
 the Cquncil met. Tbo Clerk called the n.ecting 'Wilder"* 
 Prcsct^U Aldermen" Armstrong, J. G. Heard, 11. Heard, Brookc«, 
 Camtti&jjempHcy, IIutehuHon, Shoard, Thompson; Oouncillore 
 Aabtii-S^ SlW ^kgi Carr, Dunn, McMullcn, Lee, Piatt, Bmith, 
 «nd Wi 
 
 Alder 
 
 ^^' 
 
 was a|||9t'f<) the chair. 
 
 The Standing Committeo on Finance and Awiessment reported the 
 draa of a Bill to authoriao the issue of Debentures in aid of the 
 Ontario, Simcoe, and Huron llailroad. 
 
 Tlic Bill waa read a first time. 
 
 •X' 
 
 }■' 
 
 ife 
 
 -. 'IsiA. 
 
 ^ 
 
 . -.** 
 
,r 
 
 
 • •• 
 
 I . 
 
 i?B«*f -<(.*■- 
 
 ■■m 
 
 2|# 
 
 ^Pr ■ 
 
 *l-^ 
 
 Ifiwn tho quflrtlim lh.it th.- Bill U wnJ iiii.»«'o»m1 l5wt lo-imwrow, * 
 
 [w Hill Im' tioi nml II Kcruiiil tiiim ItMiiurniw, bat ll«l » 
 • H«l.rt ('uHiiiiiUiHj, Ut nmwUt of Ald«rm»ti ('Hinoroi, 
 ___-«y alia ThompMuii, to wpirt wheUw-r it »«' I**!?** »'»' <*»*«^ 
 OoS!)l Ut |,«MH Mioli H MilJ : iiiMHi whicU lh« yftt« «i»«l n»}« W»'n, tokirii 
 M WJowi: Y««»-M.n*nr^ »»<«tty, Jinioku, HiiKjr,«'..«r. Umiiwi.. and 
 ffhiiirti, 7; N«>»— M*""^^. Annntronn, A»hH«ld, J. <1. B«mii4|j^ 
 I)tm,mcy. Dutut. Hntclum..!.. Ik>o, MoMuIIom, I'latt, JiiHUh/l-hMiir 
 ■oa, «ud Wriirht, 11. iKjoldod in llw nugalive, by a umj.»rity <.f 4.| 
 
 ' .» •• 11 ' 
 
 lI|)on th« (|UOHti..ti tluit tho Bill b« rend a «ocond flmo l»-inwft«w, 
 the yoa-. and iiuyH w«ro tak.m .w tn||.»wM : V.u«r-.M»«»«rH. Ani.Htn.iiR, 
 AHhflcld, J. O. Ilcunl, linM.k.', D^mpm-y, Ihuin, Uut«lu)itt.n, Uw, 
 Mc>fullon; IMutt, Hiiiith, Thomson, and Wriglit, i:{ ; NayiH-M«««ni. 
 Beatty, IJu^jjr, Cuiiusruu, Cnrr, Il()m»iii, aud Hhmrd, C (turned in 
 tho affirmative, by a imijority «>f 7. 
 
 Aldcmmn Doinpey, Hocondcd by AUUirnmn Uwird, inov.w, that It 
 
 bercrfolved that tho Htuiiding Coiiuuittcu c.n Kiiium.^ uml AHW'»wiiient 
 
 ' be authorihcd to take tho opinion of nuch OounHcl «h they Jiiuy think 
 
 -proper, in rcloronce t..th«lcK"lityo»'l>*«««"K. '•' »tM prftent nhnpe, th« 
 
 Bill to authoriHfl th<^ mm of I)«!lMiiturcH in aid of tho (Inturio, 
 
 Simooo, and Hur«n Itailroad : whiih vrrv^ c»rthrrcd, ^^ v 
 
 WhoroM, on the 25^1 day of Novoniber, 1850, tho Common Council 
 oftbeCity.^f Toronto rm,lvod that fhe Hum of X2r.,000, in Dobon- 
 • turcH, payable in twenty year, after date, with interest at hix per 
 cent per .niiuiM, p,tyublo half-yearly, bo Kranted in aid o< the 
 Ontario, Simcoe.arul Huron lluilroad, in the propoitiun a» tho woric 
 progro««CH, UH o„o i« to ten, nan.ely-i: 100,000 to be expended on the 
 Road before any advance h mode by the Corporation, then Ik-ben- 
 turoB to be issued to the CoDtraetor« for X10,000, and that all iuturo 
 advances be made in the same {.roportion, to an amount not exceeding 
 in the whole the sum of 25,000, upon the condition thuktho teniunus 
 for paminger trains bo erected on a portion of the Market Block 
 rroperti^ now vacant, and that tbe Uiwi of Bailroad s^ll be canied 
 
 i 
 
 4 
 
 1 
 
 
H' 
 
 § 
 
 r, 
 
 
 ■' '-mJ'^ii 
 
 "^Mr '' 
 
 ir' 
 
 iCt 
 
 rr 
 
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 ;/■;■:■:.■■'>■■ "■•■■:';: ■■ . 216. .;■ ,■■■■■ .■.•;■;- 
 
 along Pflaco Street t3 Uie foil extent of the City Water Lots. And 
 ^ whereas the said Common Council, on the 18th day of AuguH^, 1851, 
 resolved to loan the Ontario, Simcoe, and Huron Bailroad Union 
 Company, City Debentures to an amount not exceeding ^£33,000, 
 payable in twenty years, with interest payable half-yeurly, issuable in 
 the same ratio as the bonus of £25,000, taking as security for such _ 
 Debentures the Bonds of the said Company to the same amount, 
 payable in ten years, with interest half-yearly, 'secured on tile Road 
 to the satisfaction of the Council, upon the recommendation of -the 
 City Solicitor, on condition that the Road from this City to Lake 
 Simco6, or the Holland River, be d^mpleted in two years from the 
 first of January next; and further, that as long as the said loan of 
 £35,000 continues, the Mayor of the City for the time being (if he 
 *be not a Director in any other Company) be a Wrector in the above 
 mentioned Company. If a Director in any other Company, then any 
 Alderman of the City for the time being to be a Director in the .said 
 Company. And whereas by an 'Act of the Provincial Legislature, 13 
 & 14 Victoria, chapter 81, entitled, " An Act to enable the Munici- 
 ' pal Corporation of the City of Toronto to assist in the construction of 
 the Toronto, Simcoe and Lake Huron Union Railroad," it is enacted, 
 that it shall and may be lawful for the Mayor,. Aldermen, and Coto- 
 monalty of the City of Toronto, in pursuance of any By-Law of the 
 said Municipal Corporation, to issue Debentures to an amount not 
 exceeding £100,000, nor in^ums less than £5 each, for and'towards 
 assisting in the construction of the proposed Railroad of the said 
 Company, and to provide for or secure the paykent thereof in such 
 manner imd way as to the said Municipal Corporation shall seem 
 proper and desirable.. 
 
 B^ it therefore enacted by the Mayor, AMermen, and Commonalty 
 of the City of Toronto: . 
 
 1st. That it shall and may be lawful for the Mayor and the City of 
 Toronto to cause any. number of Debentir§9 to be made out, not 
 -exce^ng in the whole the sum of £60,000, and to cause such 
 Debentures to be issued to the Ontario, Simcoe, and Huron Railroad 
 Union Company, in the proportion specified in the before recited 
 Besoliition, as the said Roa,d progresses. ^ 
 
 i 
 
 u 
 I 
 n 
 
 t: 
 
 a 
 I 
 
I 
 
 2nd. That of the fiaid sum of £60,000, Ae sum of X25,000 Hhall 
 be as a gift to aid in the construction of the Baid Road ; and the 
 remaining £35,000 shall be as a Ivmn to the Ontario, Simcoe, and 
 Huron Railroad Union Company. And for the securpg the repay- 
 ment of the said loan in ten years with interest at the rate of six per 
 cent, per annum, payable hidf-ycarly, the said Company shall give to 
 the City of Toronto their Bonds secured upon the said Road to the 
 amount of such Debentures from time to time issued to the said Com- 
 pany on account of the said loan. 
 
 3rd. That all such Debentures shall be under the common seal of 
 the said City, signed' by the Mayor for the time being, and counter- 
 signed by the Chamberlain for the time being "of the said City of 
 Toronto, and shall bear interest at the rate of six per cent, per 
 annum, payable half-yearly, at the Bank of Upper Canada, ijnd aU 
 such Debentures shall be redeemable at the Bank of Upper ^Canada. 
 Providedalw^e, that none of the said Debenturea shall be for a less 
 sum than £^5, nor payable^ia more remote period than twenty years 
 from the issue thereof! 
 
 
 >^:. 
 
 4th That the interest on the said Debentures shall be and the same 
 is hereby charged and chargeable, and shall be paid and borne opt of 
 ihe monies whTch shall come into the hands of the Chamberlain of the 
 said City for the time being, to and for the uses of the said City. 
 
 5th. That for the payment and redemption of the principal sum 
 secured by the said Debentures, there shall be raised, levfed and 
 collected in the year next before such Debentures respectively fall 
 due, an equal rate in the pound upon the assessed value of all rate- 
 able property in<the said Qity of Toronto and Liberties thereof, ov^r 
 and above all other rates and taxes whatsoever, sufficient to pay the 
 principal sum secured by such Debentures so respectively Mmg due 
 asaforesaid, unless otherwise provided for by the repayment of the 
 said loan or any part thereof by the Ontario, Simcoe and Huron 
 Railroad Union Company, or by act of the Mayor, Aldermen, and / 
 Commonalty of the City of Toronto, authorising the issue of other 
 debentures in lieu thereof, in that behalf duly made and enacted. 
 
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*-|y^^,»~^^*^.fJ^WIJJP» «f^v -^ «v J. ^^ 
 
 ; V -::-■/■ ^ ■■.-,•218 ':■■■ ;■■;■/■ ■,:■/:• 
 
 Monday, June 28th, 1852, 
 The CWncil met. The Mav-ivtoiik the chair. Pre;.ent, Aldermon 
 Arin.stro,.g, J. G. Board, 11. l%rd, ]J.,ult.m, Brooke, De.npHey, 
 Shoard, Th(>ini'«<»n; Councillo-s Ashliild, Ikatty, Bu-vCurr, Dunii, 
 McMuUcii, Lee, Tlatt, Ko.uau., Smith, 'i'.ully, Wright. 
 
 Alderman Thompson, secoii.lcd l.y (^.uucillor McMuUcn, moves, 
 that the IJill to authorise the issne of I)«^bentures in aid of the 
 Ontario, Simcoe and Huron llj.ih-oad be road a second time forth- 
 with, and that the order of the day he dispensed with, so far. as 
 relates to this motion; which was ordered. The Bill was read a 
 second time. The Council resolved itself into a Committee of the 
 whole on the Bill, Councillor McMuUen in the chair. 
 
 The Committee rose. Councillor McMullen reported thaj thfe/ 
 Council had- adopted the Bill without amendments. '^ : 
 
 The Report was read: The report was adopted. 
 
 . Upon thjB question that th^ Bill be engrossed and read a third time 
 to-morrow, Alderman Thompson, seconded by Councillor McMullen, 
 moves that the Bill to authorise the issue of Debentures in nid of the . 
 Ontario, Simcoe and Huron Hailroad be read a second time forth- 
 with, and that the order of the day be dispensed with, so far as 
 relates to this motion: which was ordered. 
 
 The Bill was read a second time. 
 
 The Council resolved itself into a Committee of the whol« on the 
 Bill: Councillor Mc3Iullen in the chair. 
 
 The Committee rose. Councillor McMullen reported that the 
 Committee had adopted the Bill without amendments. 
 
 The Report was received. The Report was adopted. 
 
 Upon the question that the Bill be engrossed,, and read a third 
 time to-morrow. Alderman Thompson, seconded by Councillor 
 McMullen, in amendment moves, that the Bill be engrossed, and read 
 
 k t^hf"^ ■■,■ 
 
 
 1 1 
 
 I: 
 
-m: Pcmpsey, Dunn, I^e,' Mc>IuUcn, Piatt, Remain, Smith Th6ni^on, 
 ^mr T""y» «nd Wright, 16 ; Nays-Messrs. IJugg, Carr, and Sheard, 3. 
 fe^i ■ Carried in the affirmative by a majority of 13, , 
 
 The Bin did pass, and was signed accordingly. ^ 
 
 Alderman Thompson, seconded by Alderman Dempsey, moves 
 that the Bill be entitled, " Art Act to provide for the ^sue ol 
 Debentures, to the extent of JCG0,000, in aid of the. Ontario, bimcoe, 
 and'Hurou Union Ilailroad; which Avas ordered. .. ■ :;^. 
 
 . ^ Sj£cial Meetin(/. .■ :■ 
 
 > . Thursday, July 2ath, 1852. 
 
 The GouncU met in pursuance to special summons, issued by^the 
 or^ c^ his Worship the Mayor. The Mayor took the chair. 
 Vre^enl Aldermen i^mst«,ng,-J.O. Beard, K Beard, Brooke, 
 ^^ Sheard, Thompson| Coun.illo« AsM«gg, I>unn, 
 T.««AldttulleD. Platt^BomaiD, Smith, My and Wnght. 
 
Aldennan Thompson, seconded by Alderman j. G ^^'^^^^ 
 that ihe Council do now fcsolvc itself intoa <^«-«^*«^^^^^^ 
 on the communication of his Worship the Mayor.whishwa. ordered. 
 
 The Council resolved itsoff into a Committee of the \.hole on the 
 communication : Councillor Bugg in the chair. 
 
 The iinmittee rose. CouncUlor Bugg reported that the Com- 
 mittee had adopted aT resolution. 
 
 - ' . ■ ' , • i ■ •• ■ .■ " ■ , . ■ o ^;"•' ■ 
 
 The Report was received. *,.'■■ 
 
 The Resolution was read as follows :— 
 
 « Wiereas his Worship the Mayor has informed this « 
 the C^nLetors of the Ontario, Simcoe, and Huron Unu,n Mway 
 Company have accepted a proposition made by him suhject to the 
 4^Iin of this^ounciV in view<^the f CS^^--^^^^^ 
 i in the e^eution of > Mortage Bond by ;^y;^^^;T^£:^ 
 
 TTV 
 
tat 
 
 T-^^i^m^^tr"^ 
 
 ^21 
 
 Vidcd that no legal difficulty shall occur in carrying out this rQsolu- 
 tion ; and provided also that nq alteration shall take place in the 
 conditions upon which a portion of the Market Block was granted to 
 the said Company, particularly with regard to oanying the Railroad 
 to the eastern liniita of th«i City Water Lots. 
 
 Upon the Question thjit the Resolution be adopted, the yeas at 
 jiays were taken as follows/ : Yeas— Messrs, Armstrong, Ashfield, J/G. 
 Beard, IJugg, Derapscy, tee, McMullen, Piatt, Komain, Shoird, 
 Smith, Thuinpson, Tully, and Wright, 14 ; Nays— Messrs. R. Bbard, 
 Brooke, and Duun,«. Carried in the afiiriuative by a majority (f H. 
 
 ■ Monday, August 23, 1852. 
 
 The Council met. The Mayor took the chair. Present, Alder 
 inen Amstrong, J. G. Beard, Brooke, Dempsey, Hutchison, Shejrd, 
 Thompson; Councillors Ashfield, Beatty, Bugg, Dunn, 
 McMuIlen, Pktt, Romain, Smith, Tully, Wright. 
 
 ice. 
 
 Tlie Clerk read the minutes of the 10th, 17th, and 19th in8tant.\ 
 
 Alderman Ithompson, seconded by Aldermari J. G. Beardj moves, 
 that the communication of the Chief Engineer of the Ontario, Sim- 
 coe and Huron Union Railway be referred to the Standing Committee 
 on Finance and Assessn^ent, with authority to direct the issue of 
 Debentures, in accordance therewith, on the same security ^s thosa 
 last issued on behalf of the said Railroad. Upon which the yeas and 
 nays were taken as follows : Yeas— Messrs. Armstrong, Ashfield, J. 
 G. Beard, Dempsey, Hutchinsop, Lee, MoMullen, Romain, Smith, 
 Thompson, Tully, and Wright, 12 ; Nays— Messrs. Beatty, Brooke^^< 
 Bugg, Dunn, and Sheard, 5. Carried in the affirmative by a 
 majority of 7. >" ^ ' 
 
 Alderman jhompson, Bcconded by Aldermaii Dempsey, moves that 
 the Standing Committee on Finance and Assessment be authorised 
 to prepare and forward to the Legislature a Petition and draft of a 
 Bill to provide for the issue of £100,000 in Debentures, to meet the 
 sum of £50,000, voted for the Ontario, Simcoe, and Huron Union 
 Railroad, as well as £50,000 required to form a fund to consolidate 
 
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 in 
 
 .5^.K 
 
 m 
 
 
^^^^^sr^rwi ^ 
 
 
 I'' 
 
 .. 4" 
 
 222 . 
 
 . the dutstandingiity Debt, and that *l»e 2l8t n.le of tlm Council 
 and the order 6f the day be d«pcu«>a with, 8*far aa relates to tb* 
 motion J which was orde;ted. ;-~--~.....™^^^^^ ■ 
 
 , Special Meeting. 
 -^-r- -'%^ Friday, August 27th, 1852. 
 
 The Council met. The Mayor took the chair. Preseut, Aldcrmer. 
 AinuBtrong, J. G. Beard, Brooke, Dcrapsey, IIut.,hin8on, ^ho">Peo» j 
 CounciUoS; Ashfield, Bugg, Lee, l»latt, Romain, Smith, luHy, and 
 • Wright,. . 
 
 Hi8:Wor8hip the 3Iayor stated that he had called this meeting for 
 ihe purpose of receiving the Kcport of the Sta«<nng X:JommltU,e ^on 
 Finance and Assessment, upon the subject of tho Petition to the 
 Legislature &r an Act to authorise the issue of ^'^ ^ 
 £100,000, to consolidate the debt of the City, and the Report of the 
 Sdcci Committee on Amendments to the Municipal Corporations 
 Act, and tho Amendments thereto. 
 
 The Standing Committee on Finance and Assessment iepprted 
 thfrdraft of a Petition to the Legislature, praying fe»r autjiorily to 
 issue Debentures for £100,000, to pay the Debeutures issued m. 
 filvour of the Ontario, Simcoe, and Huron Union Bailroad and to 
 Redeem the City Notes and.Debentures falling due wUhin the next 
 ten years, which was ^ceived and^ead, and was adopted, and la 
 as^Uows:— - . 
 
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 8 
 
 
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 s." ■ .. ■ ■ \ 
 
 To His Excellency, &0. : ' 
 
 The Pinion of the CUy of Toronto, ^ 
 
 Humbly sheweth,— >% * ; 
 
 That your petitioners are desi^s of withdrawing at once 
 from circulation certain promissory notes- of your P<^titu.ners^ 
 current throughout Jhe ProviUce, and also to proyide for the redemp- 
 tionof'certaiu debentures falling due within the next ten jears, 
 
 which promissory notes and debentures were issued by your petitioners 
 ttJ^^ ih. H>lic improvements of tlie.City of Toronto previou, 
 
 ■.■■'■■ V » - " ' 1*^<.- 
 
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 :.■'■-'':■■■■■■■■,■■ ^ ''■' 
 
 to the passing of the Municipal Corporation Act, and amount together 
 to the sum of fifty thousand pounds. • \:. 
 
 That your petitioners being desirous of aiding the Ontario, Simooo, 
 and Huron Railroad, a worlc of great iniportanco to the prosperity of 
 the City, agreed to make a grant to the Company, incorporated for the 
 purpose of building the said road, of the sum of X25,000, and to 
 lend to them the further sum of £2]5,000< in Debentures of the City 
 of Toronto, which hitter Hum Was to be Hccured upon the said road by 
 mortgage or otherwise. That a By-law was passed by your petitioners 
 authorising the issue of debentures to the extent of £00,000 for the 
 Balif purposes in proportion to the pmgress of the work, and under 
 certain restrictions, and an advance of part thereof in the proportion 
 agreed upon was nmde under the said By-law, when it was suggested 
 that the security required to be given upon the said Bail Road for 
 the said loan of £3/),000 would materially interfere with the operations 
 of the Rail Road Company hereafter, and might impede the final 
 . completion thereof, arid a new arrangement was entered into between 
 your petitioners and the said Company, by which the Said grant of 
 ^25,000 was surrendered, and the agreement for the said loan of 
 ie35,000 cancelled upon condition that your petitioners should become 
 ^ho lonajiih holders of the stock in the said lUil Road Company to 
 ^e amount of £50,000, to be paid for by debentures^in the same 
 Proportion and subject to the same conditions as the said grant and 
 ■ loan. - .- ' ■ , ■ ■ 
 
 That for the purpose of effecting the foregoing objects yotir peti- 
 tioners are desirous of raising a loan not exceeding the sum of 
 £100,000 upon the debentures of the said City, and providing for^the 
 redemption thereof by a sinking fund of two per cent, per annum, 
 and to enable your petitioners more readily te negociate the said do- 
 bentures it is desirable that the amount thereof and the interest 
 accruing thereon should bo made payable at the place where the sjyoae ^ 
 may be negociated. 
 
 Ydur petitioners would therefore humbly pray your Excellency to 
 
 grant the Royal asseitt to a Bill authorising your petitioners to make 
 
 ; the said loan of £100,000, and issue debentures for the same;payable 
 
 H: 
 
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1 ) r - 
 
 ■ : / > .' ■ ■^-■' •. -224 ■ 
 
 ■"-■-.- ■'■•"■■ .'-1 . -^ . 
 
 in I^indon or elsowhcro as may be deemed advinable, »nd tb provide 
 for the redemption thereof by a linking fund of two per cent, per 
 annum. * 
 
 And your petitioners as in duty bound will ever pray. 
 
 Alderman Thompson, seconded by Councillor Romatt., moves that 
 the petition be engn,H«ed, Hi^ned by His Worship the Mayor, and 
 sealed with the seal of the City, and that the Clerk of the City do 
 transmit the same to W. H. IJoulton, Esq, M.P.P, with a r^juest 
 that he will lay the sauve before the Legislature forthwith, and that 
 0. P. Ridout, Esquire, M.P.P., be requcstcd^to support the same} 
 which was ordered. 
 
 ' Monday, September 18, 1852. 
 
 The Council met. 
 ' A comnmnication from \Vm. H. Roulton, Esq, M.P.P:,acknow- 
 ledjjin.^ th(J receipt of the Petition of the Council was read. A com- 
 munic^tion from Geo. P. Ridout, Esq., M.P.P., acknowledpng the 
 receipt of the Petition of the Council was received and read, &c. 
 
 fonday, October 11, 1852. 
 Thtf Council met. The Mayor took the chair. Present, Aldermen 
 Armstrong, J. G. Beard, gfcard, Brooke, Dempsey, Hutchinson, 
 Sheard, Thompson ; €oun>fc Ashfield, Beatty, Bugg, €arr, Dunn, 
 Lee. McMuUen, Piatt, Remain, Smith, TuUy, Wnght. 
 
 .■';■ 
 The Standing Committee on Finance and Assessment reported -the 
 draft of a Bill to authorise a loan of £100,000. The Bill was read a 
 first tim^. Upon the question that the Bill be read asecond time to- 
 morrow :, it was ordered. ' 
 
 Copy SiUtj - . 
 
 Whereas, hy a' ceftain By-law passed on the 28th day of Juiie, 
 1852 entitled *<.Aii Act to provide for the issue of debentures to the 
 extent of £60,000 in aid of the Ontario, Simcoe, and Huron Rail 
 Road Union Company j^after reciting that whereas on the twenty- 
 fifth day of November, 18&0, the Common CouncU of th6 City of 
 
 M. 
 
 
V"'' 
 
 '"7'?r'»*^*'"'''f'W' ■ 
 
 V 
 
 2%b 
 
 Toronto tesolredthot the Bum of £25,000, in dcbcntureK pnynWo 20 
 years attor date, with intercHt at per cent, poraiinuin, pfiyiibL' half- 
 yoarly, bo grunted in aid of tho Oiiturio, ^Simcoc, nnd Huron, Uail- 
 road, ill tho proportion aH tho worlc projijresHCM, m one in to ten, 
 namely— £100,000 to bo expended on tholload before any advance 
 U made by tho Corporation, then Debontijrcs to bo itwued to tho 
 Contractors for JC10,000, and that all future Kdvancos bo nindo in tho 
 same proportion, to an amount not oxcoodint in tho whole tho wum 
 of £25,000, upon tho condition tliiit tho tonuinus for pasHoiiRor trains 
 be erected on a portion of the Market Block rr«»i>orty now vuount, 
 and that tho lino of Railroad shall bo carried along Palace Street and 
 . Front Street, to tho full extent of tho City Water Lota. And whercaU 
 the said Common Council, on tho 18th day <if August,'lH51, resolved 
 to loan tho Ontario, Simcoo, and Huron ilailroad Union Company, 
 City Debentures to an amount not exceeding £35,000, payable in 
 twenty years, with interest, payable hi^yearly, issuable in the same 
 ratio as the bonus of £25,000, taking as security for such Debentures 
 the beads of the said Company to the same amount, payable in ten 
 years, with interest half-yearly, secured on the said Road to the 
 Batisfaction of thesajd Council, upon the recommendation of the City 
 Solicitor^ on the condition that the road from this City to Lake Simcoe 
 on the Holland Rivei be completed in twp years from the 1st January 
 next ; and further, that as long as the said loan of £35,000 continues, 
 the Mayor of the City for tlie time beinjg^(if he be not a Director in any 
 other Company, but if he be a Director in any other Company, then 
 any Alderman of the City for the time being to be nominated by tho 
 Council) to be a Director in the said Company. And whereas by the 
 Act of the Provincial Legislature, 13 & 14 Vic. chap. 81, entitled, 
 "An Act to enable the Municipal Corporation of the City of Toronto 
 to assist in the construction of the Toronto, Simcoe, and liake Huron 
 Union Railroad," it is enacted that it shall and may be lawful for 
 the Mayor, Aldermen, and Commonalty of the City of Toronto, ih 
 pureuance of any By-law of the said Municipal Corporation, to issue 
 Debentures to an amount not exceeding £100,000, nor in sums less 
 than £5 each, for and towards assisting in the construction of the 
 proposed Railroad of the said Company, and to provide for or secure 
 the payment thereof, in such manner and way as to the said Munici- 
 pal Corporation shall seem proper and desirable. It ^as enacted. That 
 
 
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■f.*^.^m^r^^^ 4i^^ " 
 
 "7" '-^i*^f~^'' 
 
 "7*/ 
 
 •1,4. 
 
 /- 
 
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 it «hftll ond Ti.ny Iw Iftwftil fof tho Ma)w of tlie City of Toronto to 
 cauHo iiiiy iiuiiilMsr of DohriiturcH to bo nmdo out, noV cxcot'ding in 
 tho wholt. t\u' Mum ..i*.€0O,(HI(). mid to crouHC such debentures to bo 
 iHnuctl to tho Oiitniio, Simeoo, and Huron IliiilroHd Tnion Comjmrjy, 
 iu tho proportion npooiliod iu tho bcJoro recited rcKolution, um tho work 
 on tho Hiiid lUmd pro-Jrew^on. 'J'hat of tho «iiid huui of i'CO.OOO, tho 
 •■um of X:i.'),()00 Hhall be m a ^'ift to nid in tlio couHtruetion of the 
 Baid Road, and tho ivnu.iuiM- r'>\m) nhuil bo ^ a h-an to tho " 
 Ontario, Himeoo, and Huron Uaihoad I niou LVn.pajiy : and for tho 
 BOouringtbo repayment ..f tho Huid l«iun in ton years, with intorcHt at 
 the_(»me rate of aix per cent, per annum, payable half-yearly, the 
 Baid Company HhallL-ivo to the City of/foronto their IJondn, Bcoured 
 mpon tho said Koad, to tho am.;u.it of "^ueh DebcnturoH from tin»o to 
 time isamJi to the said Cuiupany on aocount of the (Said loam . Tliat 
 all such ^bentuioH nhall bo under tho Connnon Heal of the »0^.ty, 
 signed, by tho ;iayt>c for tlio time beliK.-, find eou»torHi«inod>iy;th^ 
 Chamberlain for the time bcin- of ihc f'aid City of Toronto, and Hhall 
 bear interest at the rate of hix per cent, per annum, pnyabk^balf- 
 ycarly, at the Uank of Upper Canada, and all such Debentures Bhall 
 be redeemable at the IJanl; (,f Upper Canada. Provided always, that 
 none V)f the said Debentures shall be for a less sum than ^25, nor 
 payable at a more remote period than twenty years from the issuing 
 thereof. That tlio interest on the said Debentures shall be, and tho 
 game is hereby charged and chargeable, and shall be paid and homo 
 out of the moneys which shall como into tho bands of the said 
 Chamberlain of tho said City of Toronto for tho time being, to and 
 for the uses of the said City. That for tho payment and redemption 
 of the principal sums secured by the said Debentures, there shall be 
 raised, levied, and collected, in the year before s^eh Debenttffes shall 
 ~ respectively fall duo, an equal rate in the pound on tho assessed value 
 of a« rateable .property in the said cfty of Toronto aijfd Liberties 
 thoreof, over and above all other rates and taxes whatsoever, suffieient 
 to pay the principal sum secuijed by such Debenturesyo respectively 
 falling due as aforesaid, unless otherwise provid/d ^J ^y *|^« 
 repayment of the said loan or any part thereof /by th(# Ontario, 
 Sifflcoe, and Huron Railroad Union Company, /r by the Mayor, 
 Aldennen, and Commonalty of the City of Toroi^to, authorising the 
 issue of other Debentures in lieu thereof, in th^t behalf duly made 
 
 and enacted. 
 
 
 ■ 'J 
 
^^^^miF*'T 
 
 '^ 
 
 
 227 ■■-■ ■■;. ' , 
 
 And whoWM, iiino6 the puMUig of the mid By-law, tho following 
 RoMolutiun wuH on tho 2l)th day <»f July, 1852, adopted by tho Com- 
 mon Council of tho Huid City of Toronto :— 
 
 Whorens )m Wornhip tho Moyor has inforniod thiH Council that tho 
 Contractore of tho Ontario, Simcoo, and Huron Wailroad Union 
 Company huvo ucceptcd a proposition made by him, aubjoot to tho 
 approbation of thin Council, in viuw of tho difflcuIticH which have 
 ariHon in tho execution of a Mortgajjo Hond, by way »»f security for 
 tho loan of X'a5,0()0, fonncrly v«)tcd by thisCpuncil, to tho effect 
 that tho ContructorM whall Hurrondcr the grant of £25,000) niado by 
 thin Council, and tniUHforrod to Much ContractorH in part payment of 
 their contractH, and bIho that tho DirectorH Mhall waive the aforcHaid 
 oan of £35,000 altogether, on condition that in lieu thereof thifl^ 
 Coifticil will take Stock to tho amount of XAO.OOO, to be paid by the 
 iunio of City DcbenturcB, in the Hanio proportion as the above loan 
 and grant wore authorized to be iwiuod. 
 
 '■ • ■ *<^' ■-' ■■ . 
 
 Be it therefore enacted, that the Standing Committee on Finance 
 and AjwcHsment bo authdriHed to coniplete aueh arrangements, 
 provided that no legal difficulties nhall occur in carrying out this 
 Resolution, and provided also that no alteration shall take place in 
 the conditions upon which a portion of the Market Block was 
 granted to the said Company, particularly with regard to carrying the 
 Railroad to the eastern limits of the City Water Lots. 
 
 And whereas the said Contractors have, by an instrument under 
 
 their hands and seals, dated the 14lh day of October, 1852, duly 
 
 surrendered such grant of £25,000, and released all right and title 
 
 thereto, and the said Ontario, Simooe, and Huron Railroad Union 
 
 Company have by an Instrument nnder the Corporate seal, dated the . 
 
 14th day ef October, 1852, released all right or claim to the grant, 
 
 andalso to the said loan of £35,000, 
 
 '. r .'■''' ■ ■' ' ■ : ■ ' ' ■■-' ■ 
 
 Be it therefore enacted by the Mayor, Aldermen, and Commonalty 
 
 of the City of Toronto— 
 
 i ■ " '.. ■■ ■ ■ ' ■'■ ' 
 
 Iflt That it shall and may be lawful for Ae Mayor of the City 
 <tf Toconto, nnd five the paymeal of the samei it shall and may be 
 
 
 
 1 
 
 
 » '• 
 
'•J^^^^lff^tV 
 
 UwM. .nd U .hall b. Ih- .luly of Ac M M.yo' «>' *• « "•J";"^ 
 JurU .t .h. .h„c. .ad >■■ .1.0 »."o P7;'*" "• • r.h. «.n. 
 
 - Uo^of the Cu..»..« CouncU of .bo -jp.b d., of July I«.^-,^^-_ 
 
 . Th.itb.nividond.^o« iin,..ot».T.>a;^W^^^^ 
 ..took»oh.ldb,.bo»ldM.,o,o„M„dofK^«lUV^^^^^ 
 
 : Toroolo iwj ftom »■■"« »» ''"" •" '*""''° 
 
 " ' 'Mondaj.Oclobor 18th, 1852. 
 
 ,,. Y. ll™.. The M.»or look tho chair. PrcMnt,Aldeni.«il 
 ;Th.Co.„cd™et. ^e^MjJ ^^^___ |^___^^_ g^^^ 
 
 A.deH..«Thon,p»n.««.nd.dJ.y Alde™^^^^^ 
 that the Council do now reaolve "^f '"^' ^'^''^l^., 8i„eo., 
 
 jInd.d«,fi>r..«l.W.tothe»me;rt>ch™.">etM. j ^, 
 
 ' Th. CoanV"»»l""'"»«« -^ • Cemmitte. .f tl, -bol. 0. th. 
 BUI, Councilor Dunn in the chair. / I 
 
 .\ r™iiif.i11or Dunn wiwrted that the Com- 
 
 The Committee toie. Councillor imnu «i~ n.™>rt «a> 
 
 ■mire: had adopM *» ''"^/td" u"n t ^T^^i"' 
 
 „ceiv.d. The '^P"'';"J\^°ntird^^. tmUw, AM«»» 
 iBUl be engrossed, ud read » turn a^e i*!- > 
 
Thomp«on, neoondod by Aldorman Dempaey, in amcndnicnt niovci 
 that tho Hiti b« engroiand, und road a third tiitio thin day, mid thnt 
 tho Blit rulo uf thit (*uuncil bo dittpomiod with, »o fur ua rclatva to 
 thia motion ; which waa ord()ro<l. 
 
 Tlio Bill waa road a third time. 
 
 Upon tho quoiition that tho Bill do pui, and bo ligned.bj th« 
 Major; it waa ojcdoxod. 
 
 The Bill did jMuia, and waa tlgned aeoordinglj. 
 
 / Alderman ThonipHon, aecondod by Councillor Romalh, m^VM thai 
 the Bill bo ontitlod " An Act to authurifio the Mayor to Hubacribe for 
 10,000 aharca in tho stock of tho Ontario Siuicou and Huron Uail- 
 road Union jCompany, on behalf of the City of luronto/' which waa 
 ordered. . \ V * 
 
 :■:■;■ ' "^ ' • :■ ■ ■"■':■■' ■ ■ ' 
 
 ■ " .'■■ ■■-■•.■"■■,■' 
 
 : ExmBiTA.2. : 
 
 ThU M the Exhihit marked A. 2, rejerred to in the evidence of 
 Charles Daly : being opinion of Mr. Hai/arty. 
 
 City of Toronto Dehentureti in aid of Toronto^ Simcoe, and Huron 
 
 Railroad Company. 
 By the General Municipal Act U Vict. ch. 81, sec 177, Corpofli^ 
 tiona are bound to assess thoir'whole rateable property in a sufficient 
 annual sum ** to pay all debts incurred, or which shall be incurred, 
 with the interest which shall fall due or become payable within the 
 year, and no By-law thereafter to be passed for the creation of any 
 .such debt shall be valid uulcss a special rate stifficicnt to pay it off in 
 twenty years be provided/' &c. 
 
 The Ontano, Simcoe, and Huron Hailroad Company are chartered 
 by 12 Victoria, ch. 199, amended by 13 & 14 Victoria chap. 181. 
 
 - By'the 18 & 14 Victory, chapter 81, the Corporation of Toronto 
 are empowered, ^' in pi^saance of any By-law of said Municipal 
 
 / ^>^ 
 
 A-'i 
 
 V ' 
 
Vs 
 
 I 1 
 
 iS^ 
 
V. 
 
 
 
 pal Corporation, to issue Dobentures to an ^^^^r^etion of the 
 
 proposed Rail Wanj^^pron^^^^ ^^ ^ 
 
 in »uch manner and wai, as to saxa Juun ^ 
 
 mm proper and desirabk," &^^ V " v Crvn 
 
 decl.«B-h.t -tall b.»>t f»''V°..w7l"» u^nlhe orcdUof th. 
 coaotj, eit,, &c. S«t.on 10 «"'f 'f^ "°^^^„„ „,u Victoria, 
 ch. 81, .Ml be p«.d,.xcept •' * "'°«''^S^ ,^^ ™,„,1.b rifer - 
 
 ; --^^^ 
 
 in newspapers. , 
 
 f am instructed that it is now proposed to v^ ^^^^^f 
 jfX nnn nf Titv of Toronto DcUntures, or some larger sum, in ai 
 £2?5,000ofCityot ^oronio ^^ ^ resolutions and pro- 
 
 of the ^^^iTY'^'Sir^W opinion that the formalities 
 ceedings of the M^inicipal ty. ^1 '«^*"/P ^^ ^^109, niu«t 
 
 :i^ lu. ^v a Bv-lawtobe thereafter passed, and m no way, aJ^orai g 
 *rnX!l 7up.oses -Uh.ny form-iU* O^nr^eiU, c,- 
 gtitufe a good By4aw. 
 
 eiaH, «a. -"^^i^;- MS..^r<:?*e ll Vic. cb. 
 
 tising. . ' — 
 
 1^-1 tw ♦t.U issue of Debentures would not be under 
 
 ,bi\r^'S:C»2^^Ac...iaH4Vicwri..b.«i. 
 
 for whieh debentures are issued on tin», aw govtrwa pj w«, 
 •wtioiha»nw>difi^ 
 
 a] 
 ii 
 o 
 
 I 
 ] 
 
 c 
 
 i 
 
281 
 
 ;i* 
 
 The Act enabling the Corporation to aid the lU.lroad mere y 
 allows them to avail themselves of their corporate power and credit _^ m 
 
 in raisins money for this particular object, which without the leave ■ -m n 
 of the Legislature might not possibly have been within their legiti- 
 mate powers. The Corporation must still, I consider, pass their 
 Bylaws for this object With all the legal formalities now required m 
 
 ordinary oases. ' 
 
 ' - According to my view of the law as. above stated, the proposed 
 By-law would certainly be invalid. ••. ^ 
 
 I consider that aU debts created by Municipalities must be secured 
 by special rates, and that all By-laws for bm<^ purposes^ should be ^^^ 
 
 niade in accordance with the provisions of the act of last Ses^on, 14 
 & 15 Victoria, oh. 109, sec. 4. 
 
 This directs, "that In any By-law to be hereafter passed by any 
 Municipal Corporation for creating a debt or contracting a loan upoto 
 the credit of such Municipality, there shall be set forOibrway of 
 proamble, Ist, the amount of such debt or loan, &o. ; 2ndly, the 
 amount required to be raised annually/' &c.,.and so on, a« there 
 
 directed.'; ■:. ^/,:', ;■;.-■.:,-■*:.•.■'--■.',■;::: 
 
 I think this affects and applies to aU By-laws for weatinrdebto j 
 and the words in the Act empowering the Cityto assist t^e Ruh^ 
 «and to provide for or secure the pay ment-thereof m sucb manner 
 and way as to the said Corporation shaU seem proper and desirable, ^ 
 do m,t empower the City to create a debt e^t on ^he security <rf 
 special rates, and as controlled by the general Municipal Acta. In 
 ^ch manner and way," means, I think,^ « in sua amounts, and on 
 Bucbterms of payment and redemption," &o. 
 
 * The legislature oomiK^ lai Corp^^tion^ to bour a^ebt, 
 fecept on Foviding a special rate for its sureredemption, ^ndl «m. 
 not believe it is lawful to depart firom such a condition, on ttj 
 a^ithority of the Act allowing them to assbt the Baihroad, 
 
 ' If the ByJaw be tjuashed by the Courts df Law for^ illeg^ly, 
 
 Debentures issued under its authori^ would, I presnme, faU with it. 
 
 
'*ii '5**,'** * ^ ? / u 
 
 *a^ 
 
 232 
 
 If-' 
 
 "The "consequences" are to be regB]?d|d mote in a commercial 
 ihan a legal view. / J- : ■., 
 
 ' i 
 
 The Corporation of Toronto would doubtless promptly rectify any 
 error by them committed, and wouldri)y passing a By-law in accord- 
 ance with the Statute, protect the Debenture holders. 
 
 % (Signed) JOHN H, HAGAETY. i 
 
 Cburch Street, ' , 
 
 June24, 1852; 
 
 In forming this opinion I have not overlooked the language of 
 ^several Acts of last session, bearing on the geneifill question. The l4 
 ' & 15 Vic. 73 (the Maine Trunk Line Act) by' section 6, after issue 
 of a particular proclamation by the Governor General, allows Munici- 
 palities to subscribe for stocks in this line (aline from Quebec to 
 Burlington Bay) without imposing a special rate in the By-law- The 
 Ontario, Huron, and Simcoe Line is declared by that Act as not 
 forming part' of the Main Trunk, although entitled to Provincial . 
 goarantee. 14 & 15 Victoria, ch. 124, allows^Iunicipalities to con- 
 tract debts to her Majesty for the purchase of &ny Public Works, 
 without imposing a special rate, under the 177th Section of 12 
 Victoria, jch. 81, 
 
 ■■; ■■ * ^ ■■ ■.-•»•■ ' ■■ ■■'■■'"■■. « 
 
 Again, the Railway C(^nsolidation Act, 14 & 15 Victoria, ch. 51, 
 
 'q0o. 18, allows Municipalities to take stock, lend money, or guarantee 
 
 (Company's Debentures, andHo assess and levy from time to time a 
 
 sufficient sum to discharge the ?lebt ao contracted. This is not to be 
 
 done till assented to by a; majority of qualified electors. ' 
 
 I do not thSc anything iu thi^-last Act can over-ride the impera- 
 tive words of the Act of- same session, 14 & 15 Victoria, ch. 109? 
 and it is. worthy of noti^, that this Act, sect. 4, directs that the 
 special rate to pay interest and sinking fund shall be ascertained, 
 "irrespective of any income, whether in the nature.of tolls, interest, 
 or dividends, to accrue 6v be derived from any Public or Corpora- 
 tion work, or ati^ stock, shirei^ interest in any such work in or 
 npon which such debt or loMshaU or may hjf mA Municipal 
 Corporation he invested or applied" 
 
 fo 
 
 - ) 
 
.,■"•-'■*■■-'■. ■ ~^ "■ ■ ■ ' • 
 
 It maybe also remarked, tliat this last Act rc^snacts, in a stringcB 
 
 form the 177th see. of 12 Vict. ch. 81. ^ „ uiiaARTY 
 
 (Signed) JOHN H. HAGARTY. 
 
 ^ EXHIBIT A/ 3. ; . 
 
 Thu is ike Exhibit marked A. 3, referred to in the evidence of 
 Charles Daly : leing opinion of Mr. Moxoat. 
 
 I think that both the publication referred to in the Upper Canada 
 Municipal CouncU Amendment Act of 1851 (14 & 15 Vie c. 109,^ : 
 16), and the special rate required by the 177th section of the statute 
 12 Victoria c. 81, as amended by the subsequent 8tatutes,^re abso- _^ 
 lately necesssary to give validity to any ?y-law that may be- passed 
 by the Corporation of the^City, under the Act enabh.^ the Corpora, 
 tbn to assist the Northern Railroad (13 & U Vic. e. 81.) ^ 
 
 The last mentioned statute authorises the Corporation^ to issue 
 Debentures for the purpose therem mentioned, "^nd to provide for o^ 
 
 secure the payment thereof in suchmanner and way as to the said , 
 ■Municipal CouncU shaU seem proper and desirable. - 
 
 Now thisknguage would certainly seem to ves^ in the Corporation ^ 
 an unshackled discretion as to the manner of providmg foror^se- ■ 
 curing the>yment of the-Debentures which the statute authorises 
 irmtoiss^^ but whUe the language would admit of thatmterpre. 
 K^nn;t say.it isclc^ '^^ ,^ 
 
 tioa may possibly have reference to the manner ofpaytng, and not^ 
 4he marker of i,ra.ia%ybr or aecur^nflT the paymen^ or mayi^ 
 to a providing for or securing the payment by any «dd*^uma^ m^^^ 
 
 Se CotPOration should think proper : that is, by any means m addi- 
 
 ^tLe which the 177th section of the ^^^ f f ^-^--^ . 
 be provided in every ByJaw J just as, for example, by tiieC^ 
 
 ^^ Amendment Act of 1851, 8. 4, it is expresdy provided tiiat the 
 special rate, &c. should be ascertained, irrespective of any mc^e, ^ 
 W^Aer in ihe nature of tolls, interest or dividends, to aecrue from 
 ly public wU in or upon which a^debt or loan «^o«J? ^ ^II^^ 
 or appUedj and as section 6 of thd same statute provides that Cor- 
 
 f 
 
 t^^lAMl^A, iC- 
 
284 
 
 potations may app\f any moneys not otherwise approjwiatcd, and alw 
 any pther mOneys 'ihich they may think fit by any additional rale to 
 raise, Ifevy and collect, to the payment of any deb^ or loan.. See ulso 
 
 section 11.. 
 
 ■ '- ■ .■ ;, : ',■'■ '■ ■;•. ■ : ■ ■ • ■■ ■ :■.■ -. , • 
 
 Now I think, that under the circumstances which I will mention, 
 since the language of the U & 15 Vie. c. 81', is susceptible of another 
 meaning than one that would confer an iinfettered discretion^ on the 
 Corporation for Ae payment of the Debentures, it follows that such 
 a discretion is 'not conferred by that statute. , 
 
 / 
 
 "^TheJm^imihg^i^statuWistobesoughtfbi^ of the • 
 
 itatute itself, biit with reference to any other statutes that may throw 
 light on "the intention of the Legislature. First, then, it is to be 
 observed, thatrln some other statutes, when the Legislature ^tended 
 
 to authorise debti to be contracted under By-laws which should not 
 ' provide foTthe pUment of them in the manner required by the said 
 . f 77th 'sectioji, cipress provisions to that effect have been uilroduced . 
 |14 & 15 Vic. c. 73,s. G and c. 124). Such an intention ia thus plainly 
 expressed elsewhere. If it existed in the present case, it is .not 
 'unreasonaWe to suppose it would have, been plainly expressed here 
 also. Then-it is remarkable that there is no provision, in the Ac 
 14 & 15 Vic. c. ist, forbidding the Corporation's, repealing any 
 ' By^-law that might be made under that statute to^rovide for or secure 
 the payment of the Debentures issued under it. Yet the Legislature 
 evidently considers it of essentiiil importance that Municipal Corpora- 
 tions Should not have the power of repealing By-laws which provide 
 for the paynient of their debts, until such debts are paid or dis- 
 charged, or in certain ewes until a new By-law is substituted for the 
 old one with the sanction of the Governor in Council, (see 12 Vio. 
 c Sir Mc. 178 ; 14 and 15 Vic. c. 109, s. ?, 6, 10, 12, 13, U; :aiid^ 
 - 14 & 15 Vic. c. 124,^ec. 2). Yet if the lT7th section of the Actof 
 . 1849 does not apply to the statute in question now, I think H ole" 
 that the 178th would notj and I do not see anything that would 
 prevent the Corporation -from at anj time repealing their By-law 
 before payment of the debt, and without substituting w»y olh«r - 
 secj^ty* f . . . ,• » 
 
 » y 
 
 -t- 
 
» f-' 
 
 9 
 
 t Mnk lLha.i a 'oonatructioii of the statute m qnostion (14 & 15 
 Vice. 81) which would involve this eonsoquonce, is only to be 
 veoeived if the language oleartf excludes every other interpretation 
 whatever ; and I think therefore that the omission to provide against 
 therepeal 6f theHy-Law must be taken to have arisen from the 
 177th and I7^th sections of the Corporations Act, being considered 
 iind intended by the Jkjgislature to be applicable to such By-law, and 
 from a special provision in the subsequbnt Act (14 & 15 Vic. o. 81) 
 against such repetd being therefore unnecessary. 
 
 • 
 
 Again, the language of the l77th see. referred to as contained in 
 the original Act, is vary general. After enacting that a sufficient 
 sum should be levied in eachyear to pay all debts incurred within th» 
 year, it proceeds thus : " No By-law hereafter to be passed for the 
 creation of any such dgbt, or for the negotiation of any loan, shall be 
 valid or effectual to bind any such Municipal Corporation,*unle8s a 
 special rate, &o., shall be settled in such By-law « * * * and it 
 shall not be competent to any Municipal Corporation to repeal such 
 By-law, (Mf to discontinue such rat?, until the debt so to be incurred. 
 andt]»e interest thereon shall be fully paid." The seoCion as amended 
 ^'Ha no less {general than the clause stood originally. < . 
 
 'ThMi, the Municipal pbrporations Amendm6nt Act of 1851, sec 
 * 4, enacts thus, "In every By-law hereafter to be passed by any 
 Municii«l Corporation * * ^ for creating a debt or contracting 
 a loan * * * thiere' shall lie recited or set forth by way of 
 preamble," amongst other things, " the amount to be raised annually 
 according to the 177th section of the Upper Canada Municipal Cor- 
 porations Act of 1849, as. a special rate for the payment of such debt 
 or loan, uid <)he interest thereof;^within the time thereby limited," &ۥ 
 
 X 
 
 • This clause ividently, if it deep not imply that every By-law for 
 ereatinga losL. or contracting a debt was tiZrcadfy by law subject 
 to the 177th section, at all* events in effect enacts that every By-law 
 for thepurpclies therein mentioned, sKouW /or the future be subject 
 to the provisions 6f the 177ih section ; and indeed almost every 
 ' clause of tAie Amendment Act of 1851, from the 1st to the 22nd, 
 implies tha^ the Legaslatare considered that every debt or loan by a 
 
 > 
 
mj: 
 
 ^:.::''..--;^; "-■■■■■■'■:■■■ ^■■^^ .^ v- a;- 
 
 ^ w^d to wb.U, void-™ bottor Uuu. «. m»oh w»t. paper, jnd 1 
 ^ilC^^d b, »,c™ though »o .ppBoationw.™ J«.d.... 
 toM to qu«(i Ux By-l«w. 0. MOWAT, - 
 
 ■ Juno 2»i 1862. ■ 
 
 \i 
 
 /. 
 
 ■';.-:^ '""■•;'. ' "^'■' exhibit m/: :^,-...--,..-.^:^,^^^-.^-.^:-,- --^^^ 
 
 «n • rt> J5j,lt'W« " Mr Befernd to in examination of T. G, 
 
 ■ . ■'■,■... t ' ■■ ■ . . . » .' 
 
 ■ ' ' ? ' " ■ ■ ■ " " ■ 
 
 • Quebec, 5 July, 1852. ^ 
 
 Private «ad. confidential. 
 
 , n I.- - T .im verv anxioiui to obtain n temppntiy loan 
 from the Bank of U. C. for a preuy » S« . j . g^^gg 
 
 n *° "sr::. W"o" ^ iSiuti^ J^. »i*.t of 
 
 ^"^ITm »rou which «w«>t .. «!«■.«. of 80 percou. 
 T/JlAr'^" e«.To.u«de»e fl>M I Af oh.«u *eamoau 
 or *1»,X««. ^" . , T^-aon «Dd haTC authority to dnw in about 
 1 ^ItaT-I M t^^<^ Ci., would i«nol.. Bond, » 
 -Ih^tydap. l^ftHrwould givo Bow« th, money. N^^J,' 
 "°"°- ... ■ ^.. ji,.tif eTeriteameouttbatftbrf «" 
 
 ft^ be an advantage i?» you to'get the exchanges ^ _^ ^^ 
 
 ■*■.... 
 
 \^' 
 
^ffm^^^mm. 
 
 
 W>^m$Mii^^^^^ 
 
 ' 287 
 
 .'^ 
 
 -^: 
 
 ■*■.... 
 
 Quoboo, 6th July, 1852. [Should be 6th Aug.] 
 MydoarSirj— i find that I ?nm likely to be interested in the 
 ,jC60,000 of City Bonds^issued for th^ Railway Company, as under the 
 now arAngement only I Je50,000 instead of 60,000 are to "be issued, 
 -which at 80 per cent, would Jify6 £40,000. I therefore want 
 £20^00 more than you have alKsady agreed to. , I have, however, 
 written to say that I. will wait the mail dne to-morrow before writing 
 to you, because I expect a letter front Glynn on the subject of the 
 adyaifceH, and I fccr very sanguine I shall g^t it; If so, all will be 
 straight. If they refuse, I will try and stave off UU next Saturday's 
 mail (over mail arrives on Saturday) whdn I shall h^ave other letten 
 on the subject." « 
 
 V "Quebec, 9th August, 1852; 
 
 My dear Sir,— I enclose Messrs. Glenn's letter, by which you will 
 see I am authorised to draw for £1&,000 sterling. I leave it to your- 
 
 J self to say what premium you will give. I am sure you will do what . 
 is fair. I have also authority to .drawlon Peter Buchanan for £500, 
 
 %*t 60 d's, the other may \}e 80 I presume. I do not think it neces- 
 sary to write further. Their object of course was to give me a credit 
 in your Bank, which is not necessary. I mustget you to adv^noe the 
 xemainder of the £50,000, whieh at 80 will be £40,000 in all. 
 
 The dra^ for J15,000 will nearly pay your present advance ; and I 
 
 ' have every confidence that if you wish it, I can get another £15,000, 
 
 .especially if you recommend the operation." I wUl wait your advice 
 
 by telegraph whether to press for the .6ther £15,000 or be satisfied 
 
 "• with what they propose ; perhaps it is better to try them. I h»ve 
 
 every confidence that 1 shall not want the advance for more than two 
 
 or three months, perhkps not so long; meantime I must gei the 
 
 balance of the £40,000, so as to secure the £50,000 pf Bonds which 
 
 have been or will be deposited with you, by Mr.tJotton or Mr. 
 
 Bowes. Willyou telegraphme on receipt whatyou .will allow forthe 
 
 exobapge ; what I am ixf do with it, wliether to ^ve it to Bradshaw, 
 
 \v. 
 
 / 
 
 ■'■■j^ ■■.:.:■■■'■■•''■ . 
 
 * . ' ' '-,'.■" " ' ■' -■ 
 i -. ■ - 
 
 .. ^r.---^^--::;'- 
 
 A 
 
 ...-■"' '^"'.. 
 
 
 { 
 
 ">'/ ■"■a/*'"- 
 
 
 „- ^ -^ , 
 
 
 • 
 
 . « 
 
 » 
 
 . V. . . ;-.■■ :,•■.- 
 
 > 
 
 
 
 
 t 
 
 
 Mfc^- ■->.>; 
 
 
 
M 
 
 # 
 
 , 888- ■; - .• 
 
 or mA it to ,o» f It w-ll b. noc»«^ for yo. to .dv«o tavuw 
 ™=cWcd Dcbcntum, to tho extont of «0 per ocn* »" *« """"^ 
 •dvnood, *nd I will t«k. th» ro.po„.ibilit, of drnw-ng for m^ *'» 
 £15,000, BO a. to mako tho currency ia «» oven ram. *»« J»™ 
 •Irc^, I thinV £24,000 of Bond.; thi. .t 80 per cent, would ta 
 £10,200, and tho dmfl n..y bo for what will produco that ».m. I ». . 
 gure there will bo no objection. 1 ' 
 
 J^nUcripttoLemr of IVh of September, 1852, addroud by Mr. 
 
 llinckn to Mr. Jiidout. . • ;^ 
 
 1 have authority to draw on Glynn for ^5,000. more, lame way as 
 before. . , p. H. 
 
 ''' , ■'•':;■ ■.■ ' COPY. ' ■ . . . , ■ ■■■^- . ^ ■ ■ 
 
 ' Mr. HincJestoMr. Rtdout. , 
 
 - .-' Quebec, 22nd October, 1852. 
 
 kv dear Sir,-! believe I did not answer your last letter, which 1 , 
 ought to have done, to explain that it is o^ the Isi of commg 
 December that the first half is payable at Masterman s and the 
 second on 1st of April following. The whole issue may I presume 
 be sent to Glynn & Co. ' I shall know in a post or two whether 
 Mastermanwillaccept,payable on 1st April.: but after all it is of Uttle 
 
 importance. Believe yours very truly, ' ; 
 
 F. HINCKSi 
 
 T. G. Bidottt . 
 
 It is not thought necesaiiy to print ihc Bills of Exchange, being 
 the Exhibits referred to in that behalf in the defendant 8 depositions, 
 
 p 42. They are all payable to the defendant individuaUy, 
 
K 
 It 
 
 n 
 
 re 
 
 )e 
 m 
 
 fr. 
 
 as 
 
 hi, 
 
 ing 
 
 the 
 
 Line 
 
 ;her 
 
 ittle 
 
 r 
 
 )eing 
 ions, 
 
 
 
 IN CUANCfillt. 
 
 1858. 
 
 i t t City of Toronto v. Bowes. 
 
 l^ofiniary 6 
 A^ril4 - 
 
 V;vjE8372'9 11 
 iv 743 T 4 
 
 The above are the principaf sumn and dates of TC<J^ipt in question' 
 in this cause, taken from the books of Bowgh ^ Hall, wK'ch are takcu 
 to be correct as abovO, for the purposes of the Decree, without further 
 cyidonoo. , This is not to bo consHdored as a consent* 1Wj<J*|^. 
 
 \\' 
 
 Cot. 12, 1854. 
 
 (Signed) JOHN W. OWYNNK, />r D«/^^an<. 
 OC MOWAT, /orrtaintip. V 
 
 IN CHANCERY. 
 
 ^ Monclay, the NintK Day of October, in the Eighteenth 
 
 . \ Year of the Reign of Her Majesty Queen Victoria, 
 
 \ and in the year of our Lord 1854. 
 
 '' . : ■.V- ■•: ■ ■■ " /■/■'■•: 
 
 ■ Between— The City of Toronto, Plaintlffa, 
 
 \ - ■ " and' . ,; 
 
 John G. Bowes, i?c/enc?an<. 
 
 This cause" coming on to beheard and' debated before this Court, 
 on the 27th and 28th days of June I&st, iri the presence of Counsel 
 learned on both sides, and the pleadings in this cause being opened j 
 upon debate of the matter, and upon hearing read the evidence and - 
 documents in that 'be^f mentioned in the minute entered in the 
 Registrar's Book at the time of the heai^ing, and^upon hearing what 
 wafi! dleged by Counsel aforesaid, this Court did order that this cause 
 should stand for judgment : and this cause standing for judgment thfs 
 day in the paper of causes, this Court doth declare the said John O. 
 Bowes to have been and to be a Trustee for the City of Toronto of 
 the profit received by him from the sale ofthe Debentures in question 
 inthiscanse. 
 
':■■■ .240 ■ ■ 
 
 An J thiH Court doth fbrihcr dooloro that the wid John 0. How««, 
 beinK Buch Tru«t«o oh aforcnaid, was incapable of acquiring, and did 
 not in foot oo«iuiro, any ponwnal inioroet in the Buid DobontureB. 
 
 ; . • ■ ■ ■ ■'■ ; ■ ■ V^ 
 
 And thin Court doth find and declare that tfio amount of profit 
 derived by the flaid John O. Bowes as aforesaid conHista of tho 
 following particulars: that is to say, of certain sums of money 
 amounting together to the sum of JE4,n5 17«. «d., together with 
 interest on the sumo sums from the respective times which they were 
 received by tho said John O. «owes, until thejday 6f payment, and 
 which interest up to the daj^ of the date of ^ Decree amounts U> 
 the sum of £400 6s. 7d., «uch profit altogctW to tho dny of the 
 date hereof beingihesum of £4522 3s. lOd. And this Court doth 
 order that the said John G. Bowes do within ten days after service 
 upon him of this Decree, pay to tho said Plaintiffs, or as they shall 
 appoint, tho said sum of £4522 Ss. lOd., together with interest on 
 thrsaid sum of £4116 XTs. 3d. from tho day of the date hefoof until 
 the day of payment. 
 
 And this Court doth further order that the said John G. Bowes 
 
 do pay to the Plaintiflb or the bearer hereof their costs of this suit, 
 
 immediately after service upon him of this Decree, and the Masters 
 
 , Certificate of taxation of the said costs. And it is hereby i^forreA 
 
 ' to the^aidMaster to. tax tho said costs, in ca^e the parties diffe^ 
 
 about thg same. . /.TjAwrn ' 
 
 (Signed) ; A. GRANT, 
 
 / ■ Rcrji^trar. 
 
 Ent'd.— A. G. ' .; 
 
 fr 
 k 
 
 ■ / 
 
 ^Copy of Minute in Registrars Book, shewing Emdence amd Docu. 
 mcnts read upon the hearing of th4s Cause.. 
 
 City v. Bowbs. 
 
 Phuntiffread*— \ */. T>i.:„*;ff'- 
 
 Defendant's depoflitiowi on both ^laminationa, aad aU Piamtiff 8 
 
 sdepositions. „ , 
 
 li* 
 
 •■» 
 
 
i^^fBj^iwwwt,-* 
 
 241 
 
 K. 
 
 did 
 
 rofit 
 tho 
 incy 
 rith 
 »oro 
 and 
 ) to 
 the 
 ioth 
 ■vice, 
 jhall 
 t on 
 intil 
 
 owes 
 
 suit, 
 
 iter's 
 
 jrred. 
 
 liflFei^' 
 
 ir. 
 
 t fl 
 
 Affidavits on brinKiiiR in books, &o. . . _ ■ / 
 
 All printed Kxhibits, except extract from printed pampWet fllod, 
 from page 20:i to 200, and 210 and 211, and except not^froui Story 
 
 & Co., p. 207. 
 Also opinions on By-law, and Ilinoks'. Letters to lUdottt. jj- 
 
 -■ ■ . . ' . ■ f 
 
 Dofortdant roads — . . . ^ 
 
 All his evidence, and all tho printed matter not road by Plaintifli. 
 Also Exhibit" A. 1," Minutes in Council. V 
 
 Each party objects to all evidence that is inadmissible. 
 
 NoTis.— 'From p^ 1 to 211 (both iitelusivo) hereof was printed 
 before tho hearing of tho cause in tho pourt below, and was used 
 on the hearing. All tho printing erubeequodt to page 211 has been 
 printed unoe tho hearing. ^,. ^. ''^ ■ _ 
 
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 APPRLtANT'a REASONS FOR APPEAL. 
 
 Tho ApHlant .ubn.iU x\..r^M Pccroc U «rron«ott.. a«d 
 <,ught ^bT r«verH«a, fur tho following among other roa«,n. :- ^ 
 
 l.t Bocauw tho -aSa T)coico U contrary to law and equity .nd j. 
 no warLntod by the lWi««., and tlu, cvidonco properly ^-i-able 
 ^ndTcocived \X^^ i" >he naid Court of Chancery. . ^ 
 
 2nd. IkcauBe the «aid Decree in ba«ed dpon an .•;«'7j;*»^.^^ 
 1- * ii..n» .H li member of the Common Council of tho City or 
 
 loronio wa« i „K,ntionod the Debeftturep of the City 
 
 :;T^:rl ^-^ Mes«rs.8tor^an;^o«p.^; 
 
 of Toronto, ^"^ -^ ^i^j^h involved any\mcapacity 
 
 Storey and Company. > i X.:^ 
 
 8td Bociu-e the Bnid Decree is ba«ed upon an "^""^Pf'^ ^^^ 
 
 the DcbcnturcB, of the City o lOTO ^^^ 
 
 nn.l Company, were so issued to ttocm . wcro^iii«r^j x.i(„u„„ 
 ana vyomjwirj, ^ v,v tho Common Council of Debcn- 
 
 pomber. 9f tho-mid Common CounoU. ^ ^ 
 
 ' 4th. Bec»«tho«.id Debenture .o i^ucd .o tho «««M^™^Ste, 
 Jj rorawinv wore their absolute propcHy, and thoy had full outhonty 
 
 "d Zrdlw the ™u>o to tho Appellant or « an, other pe«o., 
 ruhrin, iniorfere.ce upon behalf of th. City of Toronto. , 
 
 M BeeauMthoMid Deoreo ta>cd upon .n «»«ni*l«l I-»t 
 .^^ntSTHny r^ of h, or equity, or b, any rtalule n.n.ely. 
 ni momto of th. Common CouneU of a Munieipal Inrt.tuUon , 
 
 t^ltare. of the Corporatio. of the Common Counod of -tach h. » . 
 
 Y- 
 
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 ty of 
 loroy 
 City 
 Miny; 
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 irliioli 
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 3toroy 
 y and 
 >eben- 
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 thority 
 person, 
 
 ion not 
 namely, 
 titution 
 lies De-_- 
 ih«i8ft 
 
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 htembor, for htn own tiao,but wYi*t orery one ffttoK parehftso nrait bt 
 
 regarded oh a puroluuio fur Iho benefit uf the Corporation. 
 
 I 
 
 (Ub. ])ecaiuio tbo roiiolutions of the Common Council of the City 
 of Toronto in the Ploadinf^ mentioned of the date of the 25th day of 
 November, A.D. 1850, and the IHtii of Augunt, 1851, imponod a 
 duty upon tho Common Council of the City of Toronto of 1852 to 
 give full legal effect by n good and valid My-law to the objeotn of 
 thoHo roHOlutiotiH, and no alleged informality or defect in pOMting the 
 l{y-law of the 28th of Juno, 1852, cnn, under the eireumHtances ap- 
 pcaring on the ploadmgs and ovidenoo in relation thereto, operate to 
 invalidate the purohaBO made by the Appellant and the other persons, 
 who by tho evidence appear to have been the purchasers from the 
 Mo88rH. Storey and (Jompany of tho Debentures of tho City of 
 Toronto, autlxorised to be ii^sucd to them in iho manner pa tho 
 pleadings and evidence in that bcluilf appearing, . 
 
 7th. Because any informality iijflpiffiguial issuing of the Deben- 
 tures to tho Messrs. Storey bos brccn removed by tho Act of tho 
 LegiBlature in the pleadings in that behalf referred to, whereby the 
 transactions in respeot'of which tbo said Debentures were, by the 
 Common Council of the City of J'oronto, ordered to bo issued to th« 
 said Messrs. Storey and Company are confirmed by tho Legitlaturo, 
 and tho transaction forming the consideration for tho issuing of tho 
 said Debentures to tho said Messrs. Storey and Company, not being 
 impugned or capable of being impugned, tho City of Toronto could 
 mdce no claim to the' said Debentures for the reason of the Appellant 
 having been a party to tho purchi^o of tho samo from the Alcssrs. 
 Storey and Company. >• 
 
 Sth. Beoaiiso the purchase mado By the Appellant and others from 
 tbo Messrs. Storey and Company of, tho Debentures Of tho City of 
 Toronto, so as aforesaid to bo issjvM) to them was a legitimato Jjomi 
 fide purohaac, in which tho City, of Toronto have no interest. 
 
 9th. Because the said Decree effects the interests of one John Hall, 
 one of the parties -to tho purchase df the said Debentures frmn the 
 Moists. Storey and Compbny^ although the said Hall was Qot made 
 
 • :■, ■ ■• ■■■•■.::■-■■. t /■^/v::.:.:---. \- -.;•■■■;:■.-■■■/;■. :^ 
 
 # 
 
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e 
 

 i 
 
 244 
 
 A party to the suit in the Court of Chancery, and.tho Decrrtiptdert 
 tho Appellant to pay a sum of moncy,a portion of whiA imin feet 
 received by, and became the property of; the said HaU. 5 
 
 10th. Because it appears by the pleadings and evidence that if any 
 persons other than>.the purchasers of the said Debentureslrom the 
 Messrs. Storey and Company are entitled to the proceeds of ^the side 
 of the De1)^tur6s vyhich appear |p have been substituted for the 
 Debentures so issued to the Messrs. Storey and Company,^8Uch per- 
 sons are the Messrs. Storey and Company themselves, and not the 
 City of Toronto. - ^ " 
 
 nth. Because the said Decree is based upon aniianunption con- 
 trary to law that the position of the Appellant in purch|?ingihe said 
 Debentures from tho Messrs. Storey and Company iraa ^fjj 
 common trustee or agent appointed td^seU, purchasing J<^mm 
 use a portion of a trust estate which it was his duty to seR.^ ¥ot 
 which^md for divers other reasons the Appellant doth appeal from 
 
 the sud Decree. ' ! t 
 
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 \ ■ 
 
 845 
 
 THE RESPONDENTS 
 
 Submit th.t the Deore. of the Court of C|;"«7 '" ^''^ 
 fton. Twch the Appdtot h» .ppeded,o«ght not io be .lt.«a, 
 y.ri«a or reversed, for the following («mong other) 
 
 ■' ■• REASONS: 
 ■ Beeame the Defentot ™ the trustee and .gent of .»« for the 
 nhtat*, and must he regarded and treated a, sueh .n "S^^^ * 
 Lnsaetion. out of which the profit in quesfon arose; »»* ^^^ 
 Ws offlcial ehM«!ter, the obligations thereby mposed on h.n., his 
 a^u^l eonduet in the proe«=di,gs and t™»*7 """^-l "„?^ 
 nleadiuRS and evidence, and the eireumstanees of 4o ease gc»f""y • 
 CX sueh as dUentitled him io make any o«.er d»p<»t.on o. 
 the said profit except paying it ^ver to the plaintaiB. 
 
 P. M. VANKOtGHNET. 
 O.MOWAT. 
 
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 WiEADINOS: 
 
 Bill..... .......................' 1 to 7 
 
 The l^ocecdings in the cause stated.... ............... ..•..>'. 7 
 
 Defendant's Answer filed 23rd August, 1853 ......f. ...... 9 
 
 . ^ Do. 24th November, 1853*........... 15 
 
 ]PLAINTIPFS EVIDENCE ....:.......,.... ..........:.......... 23 
 
 x^Cciiau* • ai •••'«•■•• •■•««•••«'«•«.••■'••••••.■••'#•••••••••■••■••'• «••■••••••» wjfy 
 
 Beatty ....«,.;..,......................,.^....;.... ............... T3 
 
 Bowes (Defendant) taken 12th September, 1853 ........ 23 
 
 Do.^^^^^^^^^ ^ "^^ „..;.... 26 
 
 Do. ■ " B ......... 39 
 
 VyttAf •••••'• •••• •• •••••••••• «••••■*.•••«••••• ■««•••» •••• •• ••••«aaafl««« vTjp 
 
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 ^ Cotton ....^.„.. ...!.. V— ••••""- 45 
 
 XX Ut vCUlUoOU •••••<•••••••••«••.•«••••••'»•■■•••••••••••»•••••'••••'••• "OX 
 
 McCord .............;..^.. ...............;. 68 
 
 Orton. ............^.... ............. .......... 65 
 
 ' -. XUClOUv* JL' ^Ta, ' f « ttt"** •••■••_••••••*•*•*•**«••••**'*••**■,** **^^« OU} 04 
 
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 TuMy 66 
 
 \ _ J)EFENT)ANxyS EVIDENCxi .••..•.•••••••••••»••••••••••••••••••• ■ ou 
 
 * Daly ..w...... ...V. ...96 
 
 Dmpsey . '.... 108 
 
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 107 
 
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 Hincka.....o-.......v— ••••••— " """"""" q^ 
 
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 Piatt ..........v.-..."---'-"--'""^^^ 
 
 Romain ,...........*...«.•.•••••••••••••"•••••''••"•• 
 
 Admissions by Defendant's Solicitor, 15th December, 1858 ... 172 
 Affidavitof Defendant, as to Books and Papers, filed 28rd Aug., ^_ 
 
 ♦ 1853, under the Order of Court in that behalf. * J J^ 
 
 Affidavit of Defendant/as to same, filed Ist Sept., 1858 •• 165 
 
 Affidavit (Supplemfflital) as to same, filed 2nd Sept. ........... 10» 
 
 ' Affidavit as ID ^^^^ 6th Dec, 1853 (under further order _^ 
 
 ofCourt)^T|HL..-— ••— ........— •••—••••••^«*» 
 
 ^ Affidavit of Mr. dlpi^iDgDefendant'sLetterstoTho^^ _ 
 
 WUson/Esqi^ '''''^•'^-'^''''''•-'•-^^^^ 
 
 Letters referred^ in saine affidavit •;-:"";™** *° ,"? 
 
 Bill introducedintoParliament for consoUdating City Debt.:..., 181 
 
 By^Law of thtf^Common Council, as to the £60,000, June 28th, 
 
 J 1852 ...........«.......•-•••••••••■•••••••••" 
 
 - By-law of Common Gouttcal for taking Stock in fte Bailroad, 
 
 / 18th oci, 1852..... ........ .•...•.•-•••*-v''--7-"v:y;* Vol 
 
 ByJawof Common CouncU as to ihe 4100,000, Nov. 1st, 1852. 181 
 
 Decree "'•"•" """\'""'^"[ »Jq 
 
 Exhibit M. (Extraeia of Letters, Hincks to T.G.Bidout) 236 to 238 
 
 Exhibit N.-, being Mr. Bidouf a statement of the transaction in 
 
 ,. ' « lo4 
 
 question....' 
 
 — ^Jxhibit Q, being Mr. Cotton's release of any interest in matters 
 
 in question......... ...... ...••••'•• 195 
 
 Exhibit R., being Dr. Beatty's statement ..............•......_. 185 
 
 fexljibit T., being Mr. Riaout's Letter to Defendant, ^8th Sept., 
 
 1852 ...♦. ..^..... • • "''• 
 
 Exhibit U.,beingi^pUdout'8 Letter to Defendant, ^1^^^ 
 
 1852 ........v.,r........."....v...— .—— • "••••• ^"* 
 
 Extracts from the Pamphlet, as to proceedings of Select Com- . 
 mittee of Common CouncU, and referred to in Defendant 8 
 
 Affidavits and in evidence-190 to 195, 202 to 207. 210 
 
 « Page 121 fbllowa immedlktely tltor page 100. 
 
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 )'■ 'it. « , •, ' *^^ 10tliJiuie,1862......*.v.«" Awo. 
 
 ' « « ^ * '^« : l2Ui June, 1862 ,..*•«*•••••••• 2fl1.v7 
 
 MiMtM of Fimnoe Committw, City Cottoca.....V...'......W6 to:i89 
 
 Minute entered^n RepiJtrar'B B^ook, slxeinng Evidenee, &o., _^ 
 
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 Jietter-Bidout to Bow* (Defendant) Eihibit T, ••— '•••••••.^^'J 
 
 " ^Note f^m M. C. Story.€Go. tq^p. McCord, Sept. 27th, 1852 207 
 VOpinion of Mr.iHag«Wy,Q..C., cfn ByJiaw .:.......... V- 
 
 OWnionofMr>MowatonBame....»........-...--M-.-.*.- ,..— <*»» 
 
 Reasonsfor i^oal ;.,.»..-.-—•••"—— •'r—* 
 
 ^. )ii page ..... ^v ':-'''''-''''''''-'^^^^^^ 
 
 Reload* AoiP Cotton .;.............;,*,.-.^;"—..«-...Am wo 
 
 Report ItBt adopted by Select Comnuttee of Common Council, ,^ 
 fr ontbe8AjectofthewlebftheI)ebentures...,..v."....--- i«» 
 
 r R^lution of Common Counca, 26tli Norember, 1850, as to ^ 
 
 the JE25,000 "'"'rd^'^T'Z. 
 
 ^ R^jsolution of X3ommonCoundl,18tb August, 1851, ••t^^* . 
 
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