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32 X

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WHY THE

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WIIV TIIK

CANADA PACIFIC RAILWAY

SYiSrT3ICA.TE

FAIIKD

TO n.OAT ITS STOCI

"MEN OF FISHY REPUTATIONS/'

^ ■

(Frovi ATONTREAL POST, ,6th Feb., ,884 )

There are potent hours in the history of nat.ons that hare
a mighty iniluence in shaping their future destiaies. Such a
"strong hour" as Sehiller says, is now upon the ])ominion, and
the action of the present Parliament in regard to granting the
Canadian racilic further aid. after it has ignomoniously failed
to fulfil its contract, will have an influence on our future only
commensurate with the imposition of the Stamp Act by Great
Britain on her Colonies in he New World— an act that was
destined to despoil her of the lairest portion of h< r Empire, and
to found a power superior to her own. This 3'arliament, by
the acknowledged failure of the nicompetent Syndicate, has
now the golden opportunity of ridding the count 1^ fa grasp-
ing clique of overbearing oppressors, whose every act has
tended to the disruption of those Provinces from the confeder-
ation—a clique whose methods of doing business have caused
widespread dissatisfaction, and made it in an incredibly short
space of time most unpopular at home and discredited abroad.
In the management of the great public work entrusted to them,
they have shown how dange:ous it is for any country to dele-
gate almost sovereign pow rs to a body of untried men, mere
children in the great world of linance, and possessing no claim
to those statesmanlike qu ilitics which promote colonization
and render monopoly less oppressive by a genial personal
popularity. The men now forming the Syndicate have done

much to divert tho tid., of irr.miirration from, not only tho
older Provinces, but from the British Empire, and tho hlows
they have inlliyted .,n the prosperity of this Dominion will not
be healed so long as they are retained in a position of supreme
power over that great highway of the nation, the Canadian
Paciiie. As iinaneiers and eolonizers thev have been wei^-hed
in tho scales ofpublic opinion and have been found woefully
wantn.g. As railroad constructionists they have magnified tho
easy part cf the work into an heroic effort, but have carelully
shirked such portions as would entail serious outlay and test
their engineering caixicities.

The President only lately issUed a bombastic pronuncia-
mento, accusing the pr, ss of being antagonistic Let these
men look to their record and they will find the reason why
the press and financial world show a disinclination to believe
in the protestations of these truly eminent empirics. Has
there been one redeeming feature in their careers which would
warrant an implicit reliance on tho mere ipse dixit of that most
honorable man, the President, Avho for a brief space posed as
tho railroad Ca)sar of the Dominion ? When in business did
this shrewd trader give credit without laiowin- the antece
dents of those who applied ? Was he not aware, through agen-
cies, of the financial standing, antecedents, reputation and
habits of country merchants, oven in the remotest districts ?
Does he, then, imagine that the financial world and tie press
are wholly unaware that $8,000,000 of the rest of the Bank of
Montreal was taken by him while in the capacity of Presi-
dent, unknown to the Board ot Directors, and invested in the
St. Paul and Minneapolis Railroad, and that by a dishonorable
collusion with tho receiver of the road, false reports of its sta-

tus \V(^' sont to IIolliuul for the purposo of dcpvossii lj- tho
stock which wns hon^-ht in :it ii incrc iiomiiial fiiiurc :* Is lio
not aware that the rccoivcr of the road al'tcr nccomi)li>hin'T
this discrcdital)h' work was refused his share in the profits,
and broiipht snit in the Court of St. Louis to recover it ! Has
he forgotten lliat Hie case was dismissed b(>caus(> the jud"-o
would not tMitertain a snit in a United States Court ol" jnstico,
bronuht l)y quarrellinn' si)eculators to divide booty? Ni.r can
ho foruvt that a uowcrrul clique ol the defrauded Uutcji bond-
holders tlirouiih ' threats of Ijriniiiiii; the matter befoie the
courts, (ompelled an extra dividend and the matter was hushed
up? Men with sU( h donl)tlul antecodents are not received
very cordially on (he London or (ontinental markets, more
especially when one of the Home L'ule members of Parliament,
nt the instan<e of ]\Ir. rarnell, declared on the Ilocn- nf the
House of Commons that the " men connected with the (\,„^^.
dian I'acilic Kailroad were mm of very fishy reputation^."

It was not the intrinsic merits of the Canadian Paciiic as
a stock investment that cnised it to be shunned as a socuritv,
hnt tho Jisli// rr/mf (if ions < 1' those who were coniuH'ted with it
that made it a very suspicious stock on the nnu'ket. And this
ancient and fishliko smell will clinu- to it so long' as certain of
the pnv-ent Syndi ate arc linked to it. Th(^ taking of a bank's
rest, to such a large amount, without the knowledg(^ of the
directors, caused much comment in Ibrancial circles and was
denounced in no nunisurod terms by th(^ press of London.
Journals here, with their usual 'amount of backwoods" self-
sufficiency, dealt lirrhtly with the subject and iraatrined that
as a consoqu(mce the world at large would regard such a very
reprehensible transaction in the same renal light. Did the

$20,000 chock transaction add to the integrity and %in(ual
standinjr of thcso men > Did the evidoncc of Mr. George
Steph.Mi. that he. while President of the Bank of Montreal
gavii $20,000 to Mr. liunkin, who had no funds in the bank.'
and was //(,/ aimre to whnf purpose this large sum was to be
applM, tend to impress th,> public with his scrupulous sense
ol honor ^ Was it not universally known that this sum was
used to settle a criminal suit brou-ht by Mr. Monk, a stock-
holder of the Consolidate.1 IJank. n-Miust the directors, and
that the cashier of this bank was the brothep.in-law of one of
the directors ? J)oes the Dominion IWliament imaijine that
the forei-n world of money lenders are as apathetic to such
(luestional)le transactions as we are in Canada ? No, capital is
very sensitive, and the knowledge of such "incorrect capers "
put it immediately on guard. Had this Syndicate gone to
Europe with clean records, they would undoubtedly han^boen
moderately successful, but as it is, their " fishy reputations "
caused ignominious failure and made the financial world look
askance on all Canadian securities.

Have the more recent transactions of the.se mon been at all
to their credit ? Did the disreputa])le att(>mpt to squeeze Mr.
L. A. Senecal, who borrowed from them $200,000, on their pro-
mise to purchase the North Shore Koad, show them in an
enviable light as the promoters of a great public enterprise ?
They made a sudden and unexpected demand for the money,
imagining that he would be unable to p.y it, and failing in
doing so, obtain the property af their owni price. In this they
were mistaken. Mr. Senecal drove over to the Grand Trunk
offices to see the assistant manager, Mr. Wainwright. That
gentleman telegraphed for ex-Governor Smith, of Vermont,

•

who alplvt'cl at tho Windsor Hotel that niyht. A lew hours
ufterv^'cls tho North 8hur.' was sold to tho Grand Trunk, and
tho next day, mpl!i to their Surprise, tho Syndicato roceivod
tho money th^'y^M^vafHod to Mr. tSonocal,

Tho Hon. Brip^ Harlow was not so fortunate in his
at.i'nlptod sale of tho South Eastern to theso peculiar linanciors.
I3y a4van<inij: money they tinvw tho not around him, and ho
was strang-led in tho end. But a crop of over a hundrod law-
suits a'^ainst*W|if South Eastern makes the Syndicato very
desirous of selling out at a libiMal discount the $2,000,000
worth of bonds ihey hold of that unhappy corporation.

When the Syndicate found they had not tlie means to em-
ploy the 800 men whom (hey brought at an iiu-lement season
to tho Lake Suj)i'rior region, was it either humane or honor-
able to desert these unfortunates and leave them, after
incredible hardships, to get back to their homes as i)cst they
could ? Six perished on the way, many were injured for life,
and now tho Montreal law courts ^»re full of suits l)rou'4-ht bv
these wronged men against the Company.

Does it become Mr. G-oorge Stephen, then, to cry like a
whipped child because tho press lays on him and his clique
the lash ? Or docs he imagine that European bankers aro
over anxious to invest in an enterprise run by men of such
" fish V reputation?" He says that only $27,000,000 iir^ re-
quired to finish tho road, but, as the clique havt: failed, let thcin
step down and out and hand the road over to thefjr.>v.'rninent,
who can appoint Mr. Vati Home and a board of engineers to
complete the work which, when finished, will then be the
highway of the people from Ocean to oc an, owned by the
people and run by the people for the common weal. The
strong hour is now on the Canadian Parliament, which has it

•

in its power to rid us of this Syndi#te of fishy sgt|fc;lators,
which can only thrive by monopoly juid oppression. wC.niada
lias already given $G5,000,OaO te'"ftfOO,000 of acres toward
this g'l iMt enterprise. What havisifc^epe meniliven ? Nothing.
They have taken money wliuh slioiiM haS^ been devoted to
the construction of the road to invest iu'Otln-r enterprises and
thereby encountered the hostility of corporations with which
it was obviously their interest to have been ou fiiendly terms.
The Dominion never entrusted .these men with the public
funds tor the purpose of wrecking and scyM|ping railroads
and buying, lines m which ministers are m|lrested as the
price of their support in the Cabinet.

These gentlemen would have the public believe that they
have largely invested their owjtt private means in this enter-
prise. We have at present no evidence of this, but the palpable
fact exists that they have one and all built palatial residences
far more costly than that in which the late Cpmmodore Van-
derbilt lived when he possessed suflSi*ient means to have built
a Canadian Pacific lioad at his own (Expense. Therc^ is not a
mortgage lesiislered on any one of the mansions of the Syndi-
cate, Here is a pack of jwincely paupers applying for aid at
the portals of Tarliament ! Do the people intend to pamper an
oppressive, monopolizing clique, which has not, nor ever will
have, the confidence of the financial world? As they have
failed, let them retire and cease bringing discredit not only on
the road, but on Canadian securities abroad. They have tried
too much, and like the small but conceited hen, ha" e endeav-
ored to hatch out a square yard of (^u'gs, and lading are cack-
ling loudly for the Groverument inyubutor th come to their aid.
If the Government incub;aoi is to hatcli out the Canadian
Pacific eggs, the servicea^f the Syndicate then can be dispensed
with. The cliqu(^ however, with lis accustomed conciut, wil^
crackle loudiy- -after receiAang enough money to build the road
from the Government, " Behold, alone we did it," and in
reward for their services claim to be knighted all round.