7 4$ NORTH SHORE RAILWAY. =>^«= A STATEMENT OF FACTS. BY SILAS SEYMOUR, (iENERAL CONSULTING ENGINEER. QUEBEC, MAY 10, 1876. "c. muNTREAL COLLECTION GAGNON jn V I 30117 1/ t»2(j I'ormc J.'.sii |._>() y r v., Q- 3-2^5-30117 NORTH SHORE R ILWAY, statb:ment of ^acts - 1». ' .* I** ■ IN RELATION TO Cl.K'IAlN SPECIAL AGREEiMEN rS Bktwkkx HON. THOMAS .NrcCRFJA'Y, Contractor, AND SII-AS SIA'MOCR, (iKNKRAL COXSILTINC, l^^^,l XF.KK. Dated, respectively, June 2i\ iSjj, and Auo^iist /S, iS'/j. AND ALSO MVIIAT HAS BEEN DONE ABOUT THEM." QUEBEC, MAY 10, 1876. «% EXPLANATORY. The following ''Statement of Facts'' in relation to the several matters therein referred to, has been compiled with much care from originals and copies of letters, documents, and other memoranda in my possession ; and printcxl for the exclusive use and convenience of myself and my Agents or Attorneys, in the prosecution or disposal of my claims against the Honorable Thomas McGreevy, M. P., and Contractor Ibr the North Shore Railway. No general circulation v. ill be given to the document, by myself at least, either at present, or hereafter, unless it shall be found necessary to do so for the purpose of vindicating my own private character and professional reputation, against malicious attacks which may be made upon them by interested parties, in advance of a full developement of all the facts in the case, before a Court of Justice. It has occurred, and even been intimated to me, that Mr. McG-reevy may have calculated upon, and even taken advantage of my forbearance in the matter, in consequence iv EXPLANATORY. of my snpposod unwillingness to htivo a matter of this kind brought to pul)lic notice ; but I have never entertained a feeling of this kind On the contrary, my only motives for the extraordinary forbearance 'svhich T have hitherto exercised towards him in this particular case, have l)eenmy natural repugiuince to the institution of L\gal proceedings in any case, and under any and all circumstances ; and also my, as it appears, unappreciated regard for his own character and reputation. If he can afford to have these tested by a legal investigation of the present case, together with all its antecedents, surroundings, and consequences, I am quite willing that my own character and reputation should undergo the same tests, and in the same crucible. I am quite unable to perceive, that there was anything" either in the circumstances connected with the case ; or in my official relations to the Railway Company, the Govern- ment, or to the Contractor, which could render it at all improper, or even inconsistent for me, in my capacity as General Consulting Engineer ; or even as the Consulting Engineer of the Ilaihvay Company, to agree to receive from the Contractor, compensation for my E.ctra Services^ either in aiding him in obtaining the necessary means for carrying out the Original Contract successfully ; or, after having satisfactorily accomplished this, and upon his election to take another course, in my aiding him in the negotiation of a Neio Contract^ upon an entirely different basis, w4th the Provincial Grovernment ; particularly so long, as, in the latter case, the Railway Company had placed the road at the disposal of the Grovernment ; and the interests of the Grovernment were supposed to be under EXPLANATORY. V tho powerful protection of its own lCnf,ineer. And iilso, KO long as it was well undorstood by the mem})er of tho Government with whom the Contractor was negotiating, that the price which he was contemplating to pay for the construction of the "Road upon a Cdxh basis, was nearly a hilf million dollars h(Ao\\ my own ideas of its true value, as exemplif ':'d by th(^ statements which T had already furnished to him, and the Estimates of Cash value which I had invariably x^laced upon it, while acting as Engineer in Chief of the IJailway Company. I was not Consulted by the Board of Directors of the "Railway Company, in relation either to the policy or necessity of the adoption of the Resolution, on the 11th August, 1875, in which u was declared : " that the Com- pany was unable to cowstruct the IJoad under existing arrangements ; " and that, " th(> Company are therefore ready to allow the Government to deal with the cjuestion in any way they may, in the public interests, think proper ; making such arrangements with the Contractor as may he found necessary," &c. Which Resolution was adopted one week i>revious to my second agreement wath the Contractor. If I had been consulted upon the subject, it would undoubtedly have been my duty to hav<^ informed th'^ Board respecting the arrangements which I had made, and which were then available, for aiding th(> Contractor in completing the Road, " Under Existing Arrangements^ To guard, however, against any blame that might attach to me, on account of my silence upon this subject, I took the liberty, upon my own resx:)onsibility, of laying before the Shareholders of the Company, at a meeting which was VI KXlMiANAT(jRY. subHtMjmMitly held, at the iiistunco of the Governmoiit, lor the piirpos*' of taking into considorution the Ibrcnoini.- Resolution, a lieport, in uhich the Sliaroholders were liiUy informed of the true " JieasoNs Whij " the Contractor had thus far ])e('n unable to procrrd sati.sfacloiily with his work ; and slating also, that. " If 1 hadbuiMi Consulted by the Board, ))efore it took linal action upon the Kcsolution, I had it in my power to furnish Ihe most indUindble evidenreof ih ahiliti/ lo Conshiiti Ihe Rotul under J'Jxisfin"- Arr, the approval by Par- liamenl of the Contract, together with ihe En/ire Railwaij policf/ of the Crovernment, might have l)een prevented ; and the Contractor would necessarily, and, I think, very much to his own advantage, have been obliged to fall back upon the arrangements Avhich I had previously made for him; which arrangeuu^nts, as I could have shewn at the time, either were, or could easily have ])een made suiriciently ample to secure, under Ihe oriu,in(d Contracts, the early completion of the entire line now embraced in the " Que- bec, Montreal, Ottawa, and Oecidenlal Raiiwaijy Further than this, I have no desire, and there appears to be no occasion on my part, for any remarks, or expla- nations, at the present time. EXTLANATOUy. VII I will v«>nturo to ndd however, that if the facts aw herein set forth, afford any indication of the nature of the prin- ciples which have heretofore governed, and still j^'overntho Ilonorahh' Thomas McOreevy, in his Easiness transac- tions ; tmd in his ideas of honesty and fair dcalinir vvith his fellow men, it is a mystory to me, how he has reached th.' present exalt*'d social, political, and financial positions which he claims to enjoy. Feeling anxious, if possible, to obtain a solution of this problem, I shall watch, with more than ordinary solicitude, the resuh of the application of the same principles, as already initiated, in the carrying out of the great and important Undertaking, with which he has been entrusted l?y the Provincial Government. SILAS SEYMOUR, General Consulting Engineer. Quebec, May 10th, 1876. NORTH SHORE RAILWAY. STATEMENT OF FACTS. In relation to my Special Agrec^nent ivith the Contractor, for tJie purpose of i Staining means to secure the Speedy Constructio7i of the Road. AGREEMENT DATED JUNE 21, 1875. During the month of May 1875, soon after my term of office as Chief Engineer of the North Shore Railway had expired, and after I had opened an office in Quebec as General ComiiUing Engineer, I had a conversation with the Honorable George Irvine, late Attorney General of the Province of Quebec, in relation to the affairs of the North Shore Railway, of which Company I was still acting as Consulting Engineer ; during which Mr. Irvine expres- sed some fears as to whether the Contractor, Hon. Thomas McGreevy, would be able to carry his contract through successfully. 2 STATEMENT OF FACTS He also stated that, although he had no pecuniary 1 .terest in the matter, any further than such as was comiuon to every citizen of Quebec ; yet he could not help feeling" some anxiety upon the subject of Mr, Mc. Greevy's siiccm^ss, for the reason that he had initiated, and was chiclly instrumental in carrying through the negotia- tions, which resulted in the transfer of the contract to him. He also related to me, somewhat in detail, the history of these negotiations, some portions of which were quite new to me, I informed Mr. Irvine that, if Mr. McGreevy desired it, I had no doubt that I C(nild very soon find r<'sponsible parties with the necessary capital, who would be willing either to tiike the entire Contract off his hands ; or to take such an interest in it, upon reasonable terms, as would secure its completion, Mr. Irvine seemed quHe pleased with my suggestion ; and said that he would speak to Mr. McGreevy upon the siibject at once, and let me know the result. Upon meet- ing him a few days afterwards, he informed me that Mr. McGreevy would be very glad if I would undertake to bring about some such arrangement as I had proposed. Before coming to any definite understanding with Mr* McGreevy, however, I left Quebec on the 25th May, for Western New York ; having received a despatch stating that my father was very ill, and urging me to visit him immediately. After spending a few days with my father, I went to New York City; and, from my office there, either saw, or opened a correspondence with several of my acquaintances ■who were either prominent Railway men, Capitalists, or AGREEMENT DATED JUNE 21.ST 1875. g Contractors, iipoii ihe subject of this Road; the results of which were communicated to Mr. Irvine in the following letter : '^ No. 20 Nnssaii Street, New York, June 1, 1875. My Dear Mr. Irvine, I have received your letters of the 28th and 29th May, the latter containing Mr. McGreevy's propositions for as- sistance in carrying on his Contract, «S:c. I find that his ideas differ so widely from anythino- that it is practicable to carry out here, that I shall give the matter no further attention at present. The most that I hoped to do, as I explained to you before leaving Quebec, was to find good strong parties who would either take the entire Contract oif his hands and repay his actual expenditures ; or take one half, or perhaps two thirds interest in it upon the same basis ; and advance with him proportionately, until all parties in interest, should think it expedient to sell the Bonds. I have talked with parties here sufficiently to eiicourao-e me to believe that some arrangement of this kind can be made by taking a little time ; and perhaps inducing three or four Gentlemen to go with me to Montreal, and make a day excursion by boat along the North Shore to Quebec ; stopping at different points to look at the line, country, &c. But this excursion w^ould have to be mad 3 at Mr. McG-reevy's expense ; and I should want to have you and him meet us at Montreal, and accompany us do^vn in such a way as to make the trip a pleasant one. The great object is to satisfy capitalists that the Road when built, will pay a fair interest on its cost ; and 4 STATEMENT OF FACTS » also that there is a handsome profit in the contract. If they can be satisfied upon these points, they will take hold and finish it at once. If this idea should strike Mr. McGrreeyy favorably, yon can telegraph me to that eft'ect upon the receipt of this and also write me fully by mail ; and I will then do every thing in my power to bring about an arrangement ; expect- ing, at the same time, that he will recompense me accord- ingly. Yours truly, S. SEYMOUR." Hon. Geo. Irvine, Quebec. On the 7th June I received a reply from Mr. Irvine, of which the following is a copy : "Quebec, ith June, 1875. My dear G-eneral, I have beeii all day yesterday and to-day trying to come to some understanding which I can communicate to you ; and the result is, that he will agree to share the whole contract in outlay and profit, with any person you recommend, and who is good for the amount required. The amount expended up to the present time, can be shown by books and vouchers. I can meet you at either Montreal or New York if neces- sary; but until the writs issue for a General Election, which we are daily expecting, I am rather tied to my post. In the meantime, if your friends wish to come on to A'isit the line, he will pay any reasonable expenses. But I think it would be as well that they should go with you ACiEEEMENT DA.TED JUNE 21ST 1875. 5 alone, without the Contractor or me ; as it would be use- less for him to attract too much notice to a visit of that sort, by going with you ; and I fear I could hardly manage it at present. Let me hear by telegraph if you think the project likely to go on. Yours truly, (Signed,) GEO. IRViyE." The foregoing letter biding all that I could desire, I con- cluded to return to Quebec immediately, for the purpose of closing a definite arrangement with Mr, McCrreevy with reference to my own compensation in the matter ; and also to supply myself with such estimates and other data as I had found to be necessary, in order to present the case more intelligently to the various parties with whom 1 had opened negotiations. I reached Quebec on Wednesday morning, June 9th, and met Mr. Irvine at lunch, when I reported everything fully to him. Upon being asked by him as to what I pro- posed to charge Mr, McGreevy for my services in the matter, I told him that I should be satisfied with a bonus of five thousand dollars ($5,000] over and above my actual expenses ; together with a stipulation from Mr. McGreevy that my salary should be restored, as originally agreed upon by the Contractors, to ten thousand dollars per an- num from the 1st May last, until the final completion of the Road. Mr. Irvine expressed himself as being quite surprised at the moderate terms which I proposed ; and said he had no doubt that Mr. McGreevy would accept them at once. "Within a day or tw^o after this conversation, Mr. Irvine 6 STATEMENT OF FACTS informed me that my proposition was entirely satisfactory to Mr. Mcdreevy; and that he would put it in the form of a letter to be signed by Mr. McGreevy, and handed to me at once. Upon this assurance, 1 proceeded to Y>erfect a Proajtecius^ shewing the "present condition and future prospects" of the Road, which I had previously undertaken to prepare and have printed for use in my future negotiations. Upon sending the proof sheets of this pamphlet to Mr. McGreevy, for his examination and approval, he returned them to me with the following note : "Quebec, 17/// Jun; 1875. Dear General, I beg to enclose printed paper sent me yesterday. I think you might increase the amount of Estimate by one hundred thousand dollars, as there has been large deliv- eries during the months of May and June, of ties, lumber for bridges, &c., as well as iron for all bridges between here and Three Kivers. Also a great deal of masonry done on culverts and bridges. I shall call and see you during the day about the other paper. Yours very truly, (Signed,) THOS. McGREEVY. " After making such modifications as I could consistently, in order to meet Mr. McGreevy's views, the Pamphlet was printi'd under date of June 1, 1875, a copy of which is annexed hereto marked " A." I also prepared a " Private Memorandum " in which a statement was made, more in detail, respecting the condi- tion, and probable cost of completing the work ; together with an Estimate of the profits that might reasonably be AGREEMENT DATED JT'NE 21riT 1875. 7 expected to result from the Contract ; t\iid also the amount of Working Capital that would be required to ensure the completion of the work. Tlie following- is an Kxtract from this '' Ntmordndum " ■ " Having already expended a large amount of his own private capital in the w^ork, the Contractor is therefore willing to enter into the most liberal arrangements Avith responsible parties who will aid him in carrying the Hail- way Bonds until the l?oad is either fully completed, or so far advanced as to secure for them such a credit with Ca- pitalists, as will fully justify their being placed upon the market. Having this object in view, the Contractor has author- ized the uiulersigned to open negotiations, of a conliden- tial nature, with proper parties, either upon the basis of a loan upon the securities ; or of a direct interest in the Contract, upon terms that shall be equitable and just, in proportion to the money advanced, the labor performed and the responsibilities assumed by the respective parties to the arrangement. The present is regarded as a most favorable time for prosecuting the work to advantage; and the Contractor is therefore anxious to lose no time in pushing it forward to completion, as soon as it can be done with proper econ- omy." The " Memorandum " closes as follows : " The following alternative plans are suggested for the purpose of meeting the case. Isi. The Contractor to pledge, or hypothecate $2,500,000 of the Railway Bonds as they are earned under the con- tract, to responsible parties who will advance 50 per cent upon them, as the money is w^anted during the progress 8 STATEMENT OF FACTS of the work. In consideration for which, he will pay 10 per cent annual interest for the money so advanced, and share equally with the parties so advancing, any sum that may hereafter be realized upon the sale of the entire issue (say $5,000,000), over 60 per cent of their net pro- ceeds. 2nd. The Contractor to transfer an undivided half inter- est in the entire contract, to satisfactory parties ; and to keep $200,000 of his own private capital in the work. The parties taking the half interest, to put in the further sum of $400,000, as it is wanted during the present work- ing season, in order to complete the Quebec Division to Three Rivers 3rd. The Contractor to sell and transfer the entire con- tract to responsible parties who may prove to be satisfac- tory to the Railway Company ; and who will release him from all past and future obligations connected therewith ; and repay to him the money which he has already ad- vanced on account thereof, with interest at 10 per cent. In consideration of which the parties assuming the con- tract shall guarantee and secure to the present Contractor, 10 per cent of the net profits realized from the work. Any modifications in the foregoing plans ; or any other plan that may be suggested, looking to the desired result, will be duly considered. (Signed), S. SEYMOUR, Consulting Engineer North Shore Railw^ay. Approved, (Signed), Thos. McG-reevy, Contractor, North Shore Railway. " Quebec, June 19, 1875. AGREEMENT DATED /UNE 21 ST 1875. 9 The first interview uhich I had with M. McCireevy, personally, upon this siil)ject was, I think, on June 19,* 1875. During this interYie\v he siiyned the Memorandum. and exjn'essed himself as l^eing' well pleased with all the papers Avhich I had prepared, and the terms which I had pronosv'd lor myself to Mr. Irvine. lie also stated that he hoped I \vould be ready to start ibr New York by the following Monday (the 21st) ; and that he would then be prepared to hand me his written agreement, prepared by Mr. Irvine, and also ^500, on account of my ''xtra expenses. He stated, further, that he should be prepared, if neces- sary, to make some material modillcations in the terms mentioned in the " Private Memorandum, " provided everything else was satisfactory. Instead of leaving on the following Monday however, I received, during that day, two notes from Mr. Irvine, one stating that he and Mr. McGreevy were too much engaged to attend to the matter ; and the other, requesting me to call at his office, on Tuesday morning at half past ten, when Mr. McG-reevy would be there. I called accordingly ; and, after some further conV('rsation upon the subject, Mr. McGrreevy signed and handed me ^ the following letter : Quebec, 21st June, 1875. G-eneral Silas Seymour, Dear Sir, With reference to the Memorandum in your possession approved by me, containing proposals for new^ financial arrangements for carrying on the work on the North Shore Railway, I agree if you succeed in effecting any of 2 10 STATEMENT OK FACTS the arrangomonts, suirgostcd thoroiii, to pay you a Iwnus of *ir),00O, and also to keep your salary as Consulting En- giiifor at the salary at which it was iixed when you were Engineer in Chief, until the completion of the construc- tion of the work on the Road. Your obedient servant, (Signed,) TIIOS. McGREEVY. Mr. McGreevy also called at my office during the day and handed me five hundred dollars, for which I gave him a receipt on account of extra expenses ; and I left the same evening for New York. Having thus stated, with some particularity, the suc- cessive steps w hich led to a final agreement with Mr. McGreevy, I will endeavor to sketch more rapidly the results which followed. Upon my arrival in New York, T immediately prepared, and had pointed in the form of a Circular, a synopsis of the " Private Memorandum,'^ above referred to ; and distri- buted a few of them among the parties with whom I pro- posed to negotiate. A copy of this Circular is annexed markd"B." After spending some weeks in visiting, corresponding and negotiating with several parties who were inclined to look upon the matter favorably, I made an appointment with one w ho had previously been over the line, to meet me in Montreal on the 21st July. "We met accordingly, and came to Quebec together, the same evening. On the follow ing day Mr. McGreevy met the party in my office, and agreed upon an arrangement by which the AGREEMENT DATED 21ST 1^7'). II party was to assume the entire Contract, upon the terms spec'ilied in the " Privatr Mcmorand/nu.'" Mr. McOreevy, however, was not prepared with a state- ment of his expenditures ; and, as the party was anxious to return and make preparations at once Ibr meeting- these payments and starting- the work, it was linally decided that Mr. McGreevy would have a detaik^d statement of his expenditures and liabilities prepared for me at once, so that 1 could for\vard it to the party as soon as possil^le. Instead of doing- this however, he furnished me on the following- day, with a general, and very unsatisfactory statement, of which the following is a copy : " Quebec, 22]id July, 1875 General 8. Seymour, Dear Sir, For the information of yourself and thos:e gentlemen who propose to assume the position HOW' held by me for the construciion of the North f^hore Railway. I give below the total sum expended (o 1st inst., and the manner of its payment. Total ex}>enditure incurred by me to Ist inst., is $900,000 On w hich has been paid : By aovernment ^221,000 By Corporation $148,000 $;]64,000 Balance *536,000 The Corporation have $78,000 to pay yet, to be equal to the Government, which when jiaid, will go to reduce the above balance. 12 STATEMENT OF FACTS Tho payments to mo to be ns follows: Cash on coinpl«»tion ol' arnuiiicmcnt sH/iO.OOO Inno (lays thoroaltor 100,000 " 00 " ♦' 100,000 " 00 " " 100,000 " C monlhs " 80,000 $530,000 The whole, suhjtM'l to oxaniinnfion of vouchors for ox- peiulituro. The datos of paymoiit and amounts, may be slightly altered to suit circumstances, whon discussed. I remain your, Obedienl servant, (Signed,) Tiros. McGKEEVY.' It ^viIl be observed that, on pai>"o 10 of the annexed Pamphlet, marked " A," I hiid staled " that the estimated, relative cant met value of work done, materials furnished payments made, tVc, })y the Contractor, up to May 1st 187o, is ii;;8,34,321.30." Also, that in Mr. McOreevy's note to me of 17th Juno, enclosing the proof sheets of this pamphlet, he suggested that " I might increase the amount of Estimate by one hundred thousand dollars " &c. I had therefore stated, further on in the pamphlet, and also in my printed circular marked " B," that " The Ex- penditures under the contract up to June 1, 187.'), entitle the Contractor to a schedule estimate, based upon relative contract values of about ii^900,000." When it is explained that, under the provisions of the contract, " a Schedule Estimate based upon relative cou' A(»RKEMENT DATED JUNE 21ST 1876. 13 //•^r/ i',7//rs of about !5!00<), 000," would r»'pro«enl au Actual Cash I'l.riicnditure. of only $000,000, " l)(>inir two tliirdH of coutriic.t value," as Niatful in tho circular; and, as I knew tliiit this Iju't wa.s v<'ry woll understood. l>oth hy Mr. Mc- Grocvy, and the party willi whom he was noGroliiitiiii: ; my surprise may, to some extent, l)e imagined, when I read the above communieation from the Ilonorabh' Thomas McGrecN y. Kelyinc!' however upon the assurance contained in Mr. Irvine's letter of 4tli June, that " The amount expended up to the present time; can be shown by })ook!> and vou- chers." ; and also upon the clause in Mr. McGreevy's letter, tliat " The whole, subject to examination of vouchers for expenditure," I enclosed a copy of Mr. McCHreevy's statement to the party for \vh(»m it was intended, at once; calli)ig his attention to the above facts, and suggesting that he si'iid his agent or accountant here immediately for the purpose of ascertaining, from Mr. M:'Ureevy's " books and vouchers," the actual amount of his past expenditures and existing liabilities. On the 4th of August I received a despatch informing me that " Our Attorney leaves to-night to examine North Shore Railway matters " ; of which I immediately gave Mr. McGreevy notice. On the 6th I received the following note from Mr. Mc- Greevy : " Gth Auii;iti>t Friday morning. Dear G^eneral, I leave for below this morning, ray wife is not very well. If your friends arrive before I return, w^iich will 14 STATEMENT OF FACTS be Oil Monday morning, you can give them all infor- mation on the law. I will be at River du Loup, if I am wanted you can telegraph me. Yours truly, (Signed,: THOS. McGREEVY." On the 7th of August I telegraphed to Mr. McGrieevy at River du Loup as follows : "No arrivals to-day, probably to-morrow. Please call Monday. S." The Attorney, having been detained on the way, by the illness of his wife, did not reach Quebec until Wednesday the lllh ; and then, owing to his own illness, did not report to me until the following Friday, when he sent me his card informing me that he was quite ill, and requesting me to call upon him at the St. Louis Hotel. In the m.eantime, the Honorable Treasurer of the Prov- ince, had informed me that he had, for some time past, been carr^'ing on negotiations with Mr. McGreevy with reference to the construction of the Road upon a cash basis; and also, that if they could agree upon terms, and the Rail- way Company would surrender the work, he had no doubt that the Government would undertake it at once. Mr. McGreevy had also called upon me at my office during the same time, and upon my informing him of my previous conversations with the Provincial Treasurer, he admitted that somethinir of the kind had boen ft'oino- on for a short time ; but that the Treasurer was ao very close and contracted in his views, he had very little hopes of success. He also informed me that he had an appoint- ment to meet the Treasurer again very s;.on, after w hicli AGEEEMENT FATED .lUNE 21 ST 1875. 15 ho could tell better what would be done. Upon my sayino- to him, that the fact of his even opening negotia- tio'ns of this nature with tht^ (lovornnient, at the present time, and under existing circumstances, placed boih him and myself in a A'ery awkward, if not dishonorable posi- tion Avith reference to the party ^vhom I had brought heje under his agreement with me of June 21, 1875 ; and whose Attorney was now on his way here for the purpose of examining his accounts with a view to closing the arrange- ment which had already been agreed uptni, he replied that h(^ much preferred to make an arrangement with the Government if possible; and that, as I had accomplished everything I had undertaken to do under his agreement with me, he should carry it out -in good faith, whatever might be the result of his negotiations with tlie (lovern- ment. He also requested m<' to k(^ep the party in abeyance if possible, for a short time, so that he could fall back upon him, in case of a failure with the Government. He also urged upon me the utmost importance of not allowing any one here to know, or even suspect, that other parties Avere standing ready to assume the contract and complete the Road ; for the reason tlia., if it became known, it would entirely destroy his chances of closing with the Govern- ment. Under these circumstances, it may readily be imagined that I felt greatly embarrassed when I called upon the Attorney on the following day, Friday ; and received his lettc^r of introduction, informing me that he was fully em- powered to make a thorough investigation of everything connected with the existing contract, &c. ; and requesting 16 STATEMENT OF FACTS mo io afl'ord him orery facility in my power to enable him to make a full report. I felt somewhat relieved however when he informed me that an acquaintance, whom he had met at the Hotel, bad informed him of the negotiations th . were going on between Mr. McGreevy and the tlov- ernment ; and that he had already come to the conclusion that his mission would prove to be productive of no results. After explaining matters to him as briefly and Patia- factorily as I could ; and enjoining him to secrecy as to the object of his visit, I told him that I would endeavor to bring about an interview between him and Mr. McGreevy on the following day; and then he could judge better as to what should further be done in the matter. 1 immediately called upon Mr. McGreevy, and informed him that the Attorney of the party, with whom he was negotiating a transfer of his contract, was here and ready to commence an examination of his accounts preparatory to closing the arrangement. He replied that it would not do at all to have any stir about the matter just now, as he felt quite sure, if everything could be kept quiet, that h3 whould very soon close an arrangement with the Govern- ment. He also declined to meet the Gentleman, and requeste i me to get rid of him as easily and quietly as possible — and that, in the mean time, he would leave on the next morning's boat for Eiver du Loup, and remain there a few days in order to give me time to arrange matters. I saw the Attorney again on Saturday morning, and explained to him that, as Mr. McGreevy was absent from Town, it would be impossible for him to examine the ACIKEEMENT DATED JUNE 21ST 1875. 17 books and vouchers, lor a lew days ; Imt that, in the mean- time, 1 w ould bo happy to show him the maps and pro. fih^s ol" the lini', toi>:ether with the Phuis, Schedules, Esti- mates, and Abstracts of Vouchers which had been returned tome by lh>' Contractor at different times — all of which would "ive him a tolerablv correct idea of thi' situation. He accordingly spent most of the day at my office upon . that business, and expr<'ssed hirasell" as being entirely satisfied with the residt of his investigations, so far as I they had gone ; })ut added, that he saw very little use in I remaining Ikmc until the return of Mr. McCrreevy, for the I reason that, from wlnit he had already learned from out side parties, ht^ had no doubt })nt an arrangement would ^ very soon be closed between Mr. McGreevy and the Governm(Mii ; and he therefore considered it to be his duty to return and report the facts to his principals at . once. lit' also informed me that the Gentleman who had I j already bt^en here to see Mr. McGreevy, had since asso- I ciated with him other very strong parties : and it was their intention to set aside a working capital of at least tw^o milHon dollars, with which to carry on the work, provided his report confirmed my previous representations. This Gentleman left Quebec on the following Monday, August 16, 187-5, with the understanding that I would communi(;ate further with him or his principals, so soon as the result of Mr. McGrccvy's negotiations with the Government became known. All agreement was arrived at between Mr. McGreevy and the Government on Thursday, August llHh, 1875 ; and a formal contract, subject only to the approval of Par- liament, was entered into between the parties on Septem- i ber 24th, 1875. IS STATEMENT OF FACTS Reforriiij^ hack to the date, July 21. st ISTf), at which I had agreed to meet the Party ahove referred to, at Mon- treal, it shoukl be stated, that I had previously arranged with another wealthy and experienced Kailway man, to visit Canada upon the same business ; and that, on my way from New York to Montreal, I met this G-entleman at Saratotra Springs, and Lake Greorge, and he accompanied me to Montreal, with the understanding that he would remain there a few days ; or until I informed him of the result of the negotiations between Mr. McGreevy and the Party that I expected to meet at Montreal. After which, in case no satisfactory arrangement was made, he would come to Quebec and look further into the matter. This Gimtleman came to Quebec on the 26th July, and remained about here until the following 0th of August ; and made close and practical observations with reference to the resources of the Country, and the probable cost, and future business of the Road. Before leaving, he informed me that he had become very much impressed with the importance, and future paying prospects of the Enterprise ; and that if my pending negotiations failed, he and his friends would be very glad to make an arrangement, either w^ith the present Contractor, or with the Railway Com- pany, which would secure its construction under the ori- ginal contract. He stated further, that he was prepared to furnish at least one half of the working capital that would be required to complete the Road ; and he gave me the names of several other responsible parties, with whom we were mutually acquainted, and whom he felt quite sure would be glad to join him. Another Party, with whom I had previously had some AGREEMENT DATED JUNE 21ST 1875. 19 negotiations, also came to Quebec on the 80th August, upon the same business ; but upon my informing him of the situation of affairs, he left again the same evening. In view of the foregoing Statement of facts, all of which may be fully verified, I claim that I accomplished every- thing that I undertook ; and all that it was contemplated or possible I should do, under and in accordance with the conditions specified in Mr. McGreevy's letter of June 21st 1875. SILAS SEYMOUR. Quebec, May 1st 1876. NORTH SHORE RAH.WAY. STATEMENT OF FACTS. In relation to my Special Aorecmcnt loith the Contractor, for extra services in connection loith the neootiation of liis Contract with the Provincial Govern- ment, J or the Constrtiction of the Road. AGREEMENT DATED AUGUST 18, 1875- Diiriiig' IHe month of August, 1875, while I was acting as the Consulting Engineer of the North iShore Hallway Company ; and had also opened an oflice in the City of Quebec, as General Consulting' Engineer^ Hon. Thomas McGreevy, Contractor for the North iShore luiihvay, called quite frequently at my oflice, for the purpose of informing me as to the progress he was making in his negotiations with the Honorable the Treasurer of the ProYince, with reference to a contract with the Provincial Government, upon a cash basis, for the construction and equipment of 2 STATEMENT OF FACTS'. the TJoivd, including stoel rails, niu\ iron bridges ; and also I'or Iho purpose oi" obtaining- a variety of information relating to the subject. During the same time, T also had frequent interviews with the IIonoral)le Treasurer of the Province, upon the same subject ; and at his request, furnished him with such statements of quantities, and other information, as he de- sired ; together with my views respecting what, under all the circumstances of the case, should be regarded as a fair and equitable cash consideration to be specified in the pro- posed contract. Owing to these circumstances, and without any premed- itated effort or design of my own, I had become quite familiar with the progress of the negotiations ; and also with the views and ultimate intentions of the respective parties. During one of these interviews with Mr. McGreevy, he informed me that he would like very much to have me aid him in these negotiations; and that, from my great expe- rience in such matters, together with my entire familiarity with the affairs of the Road ; and with all the provisions of the dillerent contracts and specifications ; and also with the schedules, estimates, cost, &c., ttc, he had no doubt that I could ])e of great service to him. I replied that, from my knowledge of the Treasurer's views respecting the actual cash value of the work, I did not believe that he would ever agree to an amount that would either come up to my own present views ; or that would be at all equal to my previous schedule estimates of its cash value ; and I therefore could not advise him to close a contract upon anything like the terms that had al- ready been offered to him. AGREEMENT DATED AU0U8T 18, 1875. 8 Ho then iuibrmL'd me ihat ho would lako the chances as to the rosult, il' ho coidd only close a contract with the Governm»'nt upon anything- like reasonable terms; and asked me it I would be willing to aid him, not only in ob- taining the l)est possible terms from the (iovcrnmeat; but also in the preparation oi' tlie contract, specifications schtnl- ules, &c., for all which he \. ould agree to make me ade- quate compensation, provided he closed an arrangement with the (lovernment. I replied, that I would think the matter over, and let him know my decision as soon as possi))le. Mr. McGreevy called at my olhce on the morning of the 18th August 187o, and enquired as to wJiat I had con- cluded to do. I informed him that I liad prepared a letter for him to sign, stating the terms upon which I would undertake to aid him in tlie matter, so far as I could do so, consistently with my ollicdal relations to the Jvailway Company. After examining the letter very carefully, he said that it was entirely satisfactory to him ; after which he signed and handed it to me, wath a recpiest that I would keep the arrangement entirely secret for the present. The following is a copy of the letter : " Quebec, August ISlh, 1875. Dear Sir, In consideration for yotir extra services, I hereby agree. that if I close an arrangement with the Provincial Crov- ernment of Quebec, by which the Government either takes the North Shore Raihvay Contract off my hands, or pays me a cash consideration for performing the Contract, 4 STATEMENT OF FACTS. I will pay you l\yo thousand dollars upon the closing of such an iirrniii!(Mnont ; also 11 vo Ihonsaud dollars addi- tional, \vithin oiu) year from thul date ; and five thousand dollars additional, within two years from that date; making in all lifteen thousand dollars. Yours truly, (Siuned.) TIIOS. McGREEVY, Clenfral Silas Seymour, Consult ina* Engineer, »S:c., Qnc'bec." After closing the above agreement, Mr. McGreevy pro- ceeded to explain to me very fully, the existing state of his negotiations witli the (Jovcrnment; from which it appeared that there was a dilU'rence between the parties of !«i458,000, respecting the consideration for the Main Line alone ; the question of the Piles Branch not having yet been discussed. He also requested me to see the Treasurer, if possible, that evening. The Treasurer spent the evening at my house, during which we had a full discussion of the subject, going through all his figures very carefully. The points wliich I urged more especially upon the attention of the Treasurer, during this interview^ w^ere, the extra cost of carrying out the useless, and in many cases, the ridic/ffous requirements of the " Government Standard;" the great uncertainty with reference to the cost of the Ivight of AVay, and the Extension of the Road to deep water in Quebec ; and also the risks which the Contractor assumed w ith reference to the future rise in AOUEEMENT DATED AUifUST 18, 1875. 6 labor and matoriuls; the rosult of nil wliich was, that when ho left, tho parties wore only ^ir)M,000 apart, ])oiiig equal to sSil.OOO por inilo. Mr. Mc'.(rrof»vy oMllcd ui)on me early the rollowing mor;iiiiL;', when I roix^rtel to him rul!y ; mid iMrorni"d him that, in my opinion, he might reuard the Treasurer's pre- sent figures as his nltimatum : and therel'ore, it he was fully determined to close w ith the Clo\ernui('ut, he had. better do so at once; althouuh T Ihoiight he would incur a great risk by doing so. J[e replied that he would see the Tn^asurer immediately, and then lei't lor his ofhee. The Treasurer informed me, during the evening of the I same da\% that he had closed an arrangement with Mi;, I McCiroevy that morning for the Main Line, at $27,000 ' per mile; and retpiested me to prepan^ a revised sched- ule of prices ujion that basis ; and also the various im- portant points to be i)rovided for in the contract. ITe also requested me to furnish him with all information respect- ing the riles ]>ranch ; together with my views as to its probable cost. I Negotiations were immediately commenced and carried on, very much in the same way, for the Piles Branch, 5 which resulted in an agreement, on the 2Gth August, at $410,000. ^ About this time, the nuMubers of the Government left Quebec for Montreal, for the purpose of negotiating simi- lar arrangements for the construction of the ' Montreal Northern Coloni/atiou Eailway " ; and did not return un- til about the middle of September. I In the meantime, I was fully occupied in preparing the j various papers which had been requested by the Trea- 6 STATEMENT OF FACTS. siinM* ; 1111(1 also in t'xamiiiin;^- ami makini;- notes rospi'ftiiig tliH rou^li form of contract, whidi had hoon wuhniittecl to me by aiioth«'r inoin])L'r of tho (lovi'rnment. Dnrini;- all this lime, Mr. McGroovy wan also in IVei^uont attendance at my ollice, for the purpose of consultatiou ; and also of «'xainiiiiiig and taking notes of tlu' papers Avhich I was preparing. On the 22nd of September, Mr. McGreevy informed me that he was to havi' a (:oj)y of the revised contract, from the Government during the day ; and re(|uestcd me to call at his house in tlie evening, for the purpose of examining it carefully with him. During this examination, I suggested several changes, which lu' admitted to ])e quite im[)ortant; air.d, makini:' a not(! ol them, said that he would have them made the following day, before signing the Contract. On the morning of the 23rd Sei)tember, 1 sent to Mr. McG-reevy the following letter, in which his attention was called to an imi)ortant matter, which had escaped my notice during the previous evening : "Quebec, 23rd Sept., 1875. Dear t^^in, I beg leave to suggest, that before closing a contract with the Government, by which you undertake to pay all the liabilities of the liailway Company, you should satisfy yourself as to whether you can, under the changed state of a Hairs, collect from the municipalities of Three Rivers and St. Sauveur, the •'#125,000 subscribed by them to the stock of the Company, in aid of the lload, un- less these municipalities first agree to place these subscrip- tions at the disposal, either of yourself or the Government, for that purpose. AdRKEMENT DATED AUGUST 18, 1H7'). 7 T know thnt, uikLt Ihc cxisliiin; Hupplpint'iitnl Contract {Vi\'j;*' 1-, Article 14 , you were uulhori/od by the Coinpuny to reoei\ (' tlu'se Miil>sc'rii)lions ; iind that they were HWHiivjied to you lor th'» specilii: i)urpo.s(' ol eiiahHiii;' tl»«' ('<-inp;u»y to pay these liahilitie.s. lUit it luis occurred to me that* after the rtovcrnuu'iit shall ha\e assumed the Contract, th<'se munieipnliti -s may take th.- ground tiuit they are no longer ])ound by their subscriptions. The Government has Ixh'U very particular to have other similar subs('ri])tions placed at its disposal ; and I do not see why it should n(»t be done in this case, lor your own benefit and security. At all events I thing some allusion should be made to the matter in the Contract. Yours very truly, S. tSEYMOUU. Hon. Thos. McGreevy, Contractor, iScc, N. S. K." On the evening of the 24th September, I was informed by the Provincial Treasurer, that the contract between the Government and Mr. McCrreev}, had be* a duly^ executed by both parties, before a Notary, during the day, subject to the approval of Parliament; and also, that about /(//// thousand dollars had been added to the consideration, by the Government, in order to aid the Contractor in paying the claims against the Railway Company. The Act, by the terms of which the Provincial Parlia- ment approved of this contract, became a law^ on the 24th December, 1875. 8 STATEMENT OF FACTS. I therefore claim that, at that date, every thing was accomplisht^d that I had undertaken to do for the Hon. Thomas McGreevy, under, and by virtue of the terms of his Special Agreement, bearing date August 18th, 1875. SILAS SEYMOUR, Quebec, Maij St/i, 1876. N O RT H S H O Ri: R A I LW'A Y. STATEMENT OF EAC IS. In relation to t/ic manner in i.'/iich the Contraetoi- fias treated /lis Conjidential ^ Igrecments. IJ^-v— .— w— ^ " WHAT HAS BEKX DONE ABOUT THEM." — .SiS — The Agreements above referred to, are embodied in the two following- Etter.s, signed by the Honorable Thomas McGreevy, and no\^' in my possession : " Quebec, June 21st, 1875. General Silas Seymour. Dear Sir, With reference to the Memordndiim in your possession, approved by me, containing proposals for new financial arrangements for carrying on the work on the North Shore Kail way, I agree, if you succeed in effect- ing any of the arrangements suggested therein, to pay you a bonus of $5,000, and also to keep your salary as Con- A 2 STATEMENT OF FACTS suiting- ICiigineer, at the salary at which it was fixed when you were Engineer in Chief, until the completion of the construction of the Avork on the l\oad. Your obedient servant, (J^ijrned, THOMAS McaREEVY." " Quebec, August 18th, 1875. Dear Sir, Tn consideration for your extra services, I hereby agree, that if I close an arrangement with the rrovinciiil CJovcrnment of Quebec, by ^vhich the Grovern- ment either takes the North ^hore IJailway Contract off niy hands, or pays me a cash consideration for performing" tlie Contract, I will pay you five thousand dollars ui)on the closing- of sucli an arrangement; also live thousand dollars additional, within one year from that date, — and five thousand dollars additional, within two years from that date, — making- in all fifteen thousand dollars. Yours truly, (Signed, THOMAS McGUEEVY. (Jenerai. Silas Seymour, Consulting Engineer, &c , Quebec. It will be sufficient to state, in relation to the part to be performed l)y myself, under these Agreements, that under the one dated June 21st, 1875, T undertook to find Parties that Avould either make a large advance upon the Con- tractors Kaihvay Bonds, as they were earned during the progress of the work ; or that would take a certain interest in the Contract, and provide the funds necessary for carrving on the Avork ; or that \vould take the entire Con- WHAT HAS BEEN DONE AIJOUT T^E^[. 3 tract ofl' his hands ; and ropay his expendituios and assume his obligations. This undertaking having been fully porlbrmed, at a lar<'-e expenditure of time, labor, and money, on my part, of which I have abundant proofs, I chiim, that when Mr. McGreevy refused to close an arrangement with the par- ties, in accordance with the terms of his letter of June 21, 1875, and the Meiuornrnlinn therein referred to, he became indebted to me in the sum of Jp/re thousand f/o/fars for the bon>^s therein referred to. And also, that on the 1st May, 1876, he became indebted to me in the further sum of Five thousand dollars, on account of the delieienrest 4 STATEMENT OF FACTS ill the mutter, further than to fiirni.sh either party with such inibrmatiou as was required. Dut after the second Agreement Avas signed ])y Mr. McGreevy, I entered into the matter more earnestly ; and the r<'sult was, that the parties came t() an understanding, on the 26th August, — the provisional Contract was signml on the 24th Septem- ber, and approved by Parliament on the 24th Decem1)er ; at which date, I claim that Mr. McGreevy became indebted to me in the sum of Five, /hoHsat/f/ (/o/lars, on account of the iirst instalment spi'ciKod in his Agreement, dated August ISrh. 1875. Knowino-, a^^ I did, tiiat Mr. McGreevy had made very larii-e advances in excess of receipts his, in prosecuting the work under the original Contract; and that he was verv much embarrassed bv tlie failure of the Provincial (■rovernmtmt, and the City of Que])ec, to pay him a balance of over Tiro huiidred /lioNsnud dollars, which was shown to b'.' due him on ac count of his estimates for work already done, (all of which was lully set forth and demonstrated by me. in a published pamphlet, intituled " Some Reasons WJi t/, iSfc," dated November P2, 1875\ I refrained from calling his attention to the amounts due, under his special Agreements with me, until after he had received an estimate and payment from the Government, under his new Contract ; thinking' that, as a matter of course, he would then see me, and make the best arrangement he could for the payment of my claims. As to how far this, apparently very reasonable expecta- tion was realized, will be seen by the following narrative of events relating to the matter ; and correspondence which WHAT HAS BEEN DONE ABOUT TIIEM. 5 has ttikeii place hctwe* n ns upon iho siibj«( i, rip to the present time. ( )Nviii!L^' to the dehiy occasioned by a leconstniction ot the Provincial Government, the Kail way Commissioners, Avho were to administer the new Contract, were not ap- pointed until the 2Hth of January, ]STc a])0ut ten days. Upon learning ol' his return to Queb«'C, I sent him the following note : " Quebec, February 18th, 1874. Dkai: Siii, 1 1)( g to request once more, that you will arrange the unsettled matters ])etween us without further delay. If this very reasonable recjuest is treated with silence, and apparent contempt, like the others, Avhieh I have repeatedly made to you, 1 must conclude that you repudiate vour aureements ; and intend to lorce me to resort to other remedies. It is very important to me that I know what to depend upon at once ; and I trust that I may either see or hear from you during to-morroAv, Saturday, or on Monday before noon, at the latest. Yours truly, S. SEYMOUR. Hon. Thos. McGreevv, Quebec.'" On the following morning, Saturday, I happened to meet Mr. McGreevy, at the entrance to the Bank of Montreal, WHAT HAS HKEN DONE AIJOUT THKM. 7 when he stopped me ; and, refcring- to the a])Ove h'tter assured me in the most positive trrms, tliat he was utterly incapa])le of repudiaii^ig his agreements ; })ut on the contrary, that he consideriHl con/idfitluil nndn'j^rnu'nh, ol" the kind that existed ])et\veen us, as of the most sacr.d character ; and 1 must not do him the injustice to enter- tain the idea for a monuMit that lie intended to rt^pudiate them ; because I would find that he would act in perfectly good faith in the matter ; but he had so much on his hands that he rt^ally did not know which way to turn. Upon my telling him that I must leave town early the I'ollowing week, he promised positively that he would call on Monday, and hand me ottc. thousand dollars : and arrange tht balance to my satisfaction. Mr. McGreevy spent nearly the whole of Monday in the Commissioners office. After waiting for him till nearly five o'clock, I sent him a note, inforniinu' liim that I was waiting in my office to see him ; and that I must leave for New York that evening — to which, however, he paid no atteiition. I left Quebec for New York, on Monday evening, Feb , 21st; and arrived at Montreal on my return, on Friday ]\rarch 3rd, where I happened to meet Mr. McClreevy in company with the Railway Commissioners. I had made up my mind, from his previous treatment that it would be quite useless to have any further conver- sation with him upon the subject; and therefore did not place my sell in his way ; but he came to nn' during the day, and apologized for not keeping his engagement with me at Quebec ; giving as a reason, that he w as so much occupied during the entire day with the Commissioners, 8 STATEMENT OK FAOTS. that he roally had not time to <-'all ; ])ut that he would be in Quebec again during the early part of the following Aveek ; and I might rely upon his then calling upon me, and arraniring our matters to my entire satisiaction. Mr, McGreevy did not make his appearance in Que}>ec during the I'ol lowing week. On [Saturday, March 11th, I received a note from Mr. J. (}, Colston, my legal adviser, asking me to send him a check lor !$200. Up to this time I had, at his particular request, re- frained from giving any pul)licity to my special agree- ments witii Mr. McGreevy, except in a confidential man- ner to Mr. Colston ; and he had only seen Mr. McCrreevy's letter of the 18th Auiiust, 187-3. I therefore took the liberty of sending Mr. (.'olstou the following order on Mr. McClree- vy, with a r<'quest that, if it \vas noi ^ aid on prestiitation, to rt'iurn it to me, and I would send him a check in its place. " Hon. Thos. MoGkeevy, Please pay to .1. G. Colston. Esq., or order, two hundred dollars, on account of my extra services, as per your agree- ment dated August 18, 1875. S. SEYMOUR. Quebec, March 11, 1 870." On meeting Mr. Colston within a day or two afterwards, he informed me that the order was quite satisfactory ; and that he had written a note to Mr. McGreevy upon the subject at Ottawa, enclosing a copy of the order, and expected to receive a check soon. On the 10th of April, I sent the following letter to Mr. McGreevy : WHAT HAS UEE.N DONE ABOUT THEM. 9 " Qu('l)oc, April 10, 1874. My Dear Siu, I beg- to remind you oi" your r('i)t>atod promises to cull and arniuge our mutters. My ulfairs ure in such a .shape thatl must do something- ut once. If you will kindly attend to it during the prest'ut week, I shall be greatly oliligcd ; and will endeavor to meet your views ns far as possible ; and I shall also be saved the unpleasant n<'eessity oi' drawing upon you in favor of parties to whom I um inde])ted, and who arc pressing me for immediate payment. AVhen I see you, I shall have something U) say about your contract, which I think will interest you. Yours verv Irulv, S. SEYMOUR, lion. Thos. Mc(Jreevy, Quebec,"' Mr. McGreevy did not call during the week as requested in the above letter; but on the following IMonday morning, I received the following note from liim, l»y special mes- senger. "Quebec, ITlh April 1874. Dear General, I will call and see you without fail to-morrow or the day after. Y^ours truly, (Signed,) THOS. McdUEEVY." Ikit he did not call, and I think L can conscientiondy say, that I was wo^ at all disappointed On the 18th of April, I received a note from Mr. Colston saying that he had "seen Mr. McGreevy yesterday, and he promised to send me a check to day." B 10 STATEMENT OF FACTS. Oil tho lOtli April. \ roceivod the following note from Mr. Colston : DkAH (iHNEKATi, Mr. M<'(Jr(M'v\' did not ciill on m<' yesterday. I have ju.st scnl my 'Icrk round ; iind hr replied that if I ol)tained a general order from you. Im^ w t Mr. Col-^ton ou tiie 'JOtli April, and authorized liini to iiive a receipt lor the money as my attorney ; pro- vided he Li'ave it in sueh I'onu as not to invalidate my elainis against Mr. Me(Jreevy : nor to justily him in return, ing it to tli<' liaihvay Commissioners, as a ])ayment on ac" count ol my salary as Consul ling I'higineer. < >n the *22nd of April, I received the following note from Mr. Colston. '■ Quehec, 22nd April, 187(J. Dear (Jenekal, I received the >;2[. H •'N. B.— It is niul.'rstood ilml n,, (l,.(lu,.ti„n is to W mad.. Irom (Ivn. S,.ymour's Salary as Consuhiiiu- i'j.giiR.or oi'th.. N. S. \l n. Co., in consc(|uoiic«' olfhr said puymont. I Signed, Jas. G. C." Oil the 2Gth April, 1 addressed the Ibllovviiio. letter to Mr. IlcUreevy: '• Queljee, April 2(1, 1870. Dear Sir, Your note of the llth inst., was duly rec-ived, in which you say: " I will call and see you without I'ail lo-iriorrow or the day after. " You will observe that this is the lOth day since your note was written ; and I must therefore conclude that you have either foruotten your en^•ao•en^ent ; or that you dont intend to call. ^ T niust leave Quebec about the Ist of May, to l)e absent some time ; and therefore, unless our matters are satisfac- torily arranged during the; present w.-ek, I shall feel quite at liberty to take such action in regard to them, as my in- terests and necessities may seem to re(|uire. Yours very truly, S. SEYMOUIJ. Hon. Thos. McCxreevy, Quebec." Mr. McGreevy allowed the week to pass over again as usual ; and called upon me on the following Monday morning, May 1st. After having been favored with a long accouiit of the grievances to which he was obliged to su}>mit, fi-om the Kailway Commissioners, on account of their with holding his money ; and from the Government Engineer, on account of 12 STATKMENT OF KACTS. liis ciumuiiii? iho pliiiis of lniilgcN, iVc, und^not furiiisliing him with th»» sptMilicitions for st«M'l ru'ls, ours, iVc, iVc I ventured t<» (haw his attfiilion to my < wu matter, and to ask )iiin, " n'luit he //ro/xnift/ to iht about ii /" ][e replii'd. that he was very short o/ moii»»y ; hut that ho was g-<»iii under his ag-reemeiit 4)f 18th AuLiUst ls75. He assented to the arrangement at once, and said that lie would cither hrinu", or send me the money and notes during the day : and would call and pay the halance im- mediately on his return from Montreal. I waited for him at my ollice until nearly P. M., hut he did not call. In the eveniiiii'. T received the following' note from him, at my house : " Quehec, 1st May, 1x70. My dear General, I was unalde to finish your matter to day ; hut will not fail to do so on VVednesdav, on mv return. 1 would have sent you the notes, but thought it no use witliout the cash. Yours trrly, (Signed,) TIIOS. McGKEKVY." WHAT HAS ni\K\ DOMC AHOUT TIIEM. IS Oil lh«' next cvcHiiiis', I .sent tln' Ibllowinif h'ttt'V around to Mr. McCJrtM'vy's hounc, so that ht» would In- sure to get il iinintHlintoly on liis r«'tur)i IVoiu Montioal, on WimIiu'M- (luy morniiii; : " (^l.!^)«M•, May 2iul lM7t). Daeu Sii{, T would lil-day ovoning ; and thovt'lort' hope that you will call as early to-morrow as possible ; ani5,000 each, coming due in one and two years I'rom that date, I would suguest that you give lour notes of 5^2, /iOO each, payable respec- tively, Jan. 1, 1877 ; July 1, 1877 ; Jan. 1, 1878, and July 1, 1878. All the notes should be made payable to your own order. Yours truly, S. SEYMOUR. Hon. Thos. McG-reeA'y, Quebec." I saw nothing of Mr. McGreevy on the following Wed- 14 STATEMENT OF FACT8. iiesday ; but on Thursday, the 4th May, at 4 P. M., a special messenger brought me the Ibllowiug note from him. •' Quelx'c, 4th May, 1874. J)ea!i General, I enclose you two notes lor twelve and (ifty dollars each at three and lour months, which is all I can do at present, at least for a few days, until I get some money. Yours truly, (Signed, TllOS. M(H1KEEYY." To which I imniediati'ly sent the following reply : " Quebec, May 4th, 187G. Dear Sir. 1 luiA'e just received your letter of this date, by special messengN'r, enclosing two notes, each endorsed in figures " 81250." And dated - Quebec, 1st May, 1876." And each i>ayable to your own order, at your •' Olhce here," at '' three, "" and '■ four " •' ir nths after date " respectively. And each iilled out. in writina-, at twelve hundred dollars. And each signed and endorsed by yourself Yours respectfully, S. SEYMOUR. Hon. Thos. McGreevy, Quebec. " Hearing nothing further from Mr. McGreevy upon the subject, I addressed him the following letter, on the evening of the 6th May. "Quebec, May 6th, 1876. Hear Sir. Referring to my letter to you of the 4th inst., acknow- ledging the receipt of yours of the same date, in which was enclosed two promissory notes, I beg to state, that WIUT HAS BEEN DONE ABOUT THEM. 15 when my note was written, T was qnito at a loss to iindor- staiid your motive lor sending me the notes ; for the rea- son that they were not in accord with the terms of my h'tter to you of the '2nd inst. ; and your letter which ac- conii)anii'd ihmi was entirely silent upon thjit Ku])j('ct, merely saying that " this was all you could do ai present, &c." My only alteriratiA-e therefore, was to sinij^ly acknowl- edge the receii>t of the letter iwid notes promptly, and await further developemeuts. Upon consulting with my Attorney, however, the same evening; and looking over our previous correspondence respecting my claims against you, as per your agreements dated June 21, 1875. and August 18, 1875, respectively, it hacame quite apparent that you intended me to api)ly the proceeds of the notes in part payment of the amounts, long past due upon these ngreements ; and I therefore took the li])erty, on the following morning, ofplacini ne notes in the hands of a Notary, for sale, upon the hest possible terms. The Notary has just returned me an account of sales. from which it appears that the net proceeds of the notes, amount to $2,150. The account between us, as per the agreements above referred to, exclusive of interest, will therefore now stand as follows : Prr agreemcfif duted Jitne 21. 1875. Amount of bonux &\\e Sept., 24. 1875 ^5.000 Balance of salary due mojithly from May 1st 1875 to May lst,187G i3;5.00O Total iS;10,000 16 STATEMENT UF FACTS. Per <(i>reemenl ddlfd An^ftst 18, 1875. Amount of lirst instalment, due Dec. 24th, 1875... $!5,000 Total amount $15,000 Deduct amount paid Mr. Colston, April 22, 1876 i&200 Deduct pr()ce«'ds of two notes received Mav4, 1876 n,1^0 $2,850 Balance due upon both agreements... $12,050 I beg to state further, that it wotild have been much more agreeable to me, if you had settled up and cancelled the agreement of Atigust 18, 1875, as proposed in my letter to you of the 2d instant ; in which case I had also intended to wait your reasonable convenience, before pressing you in relation to the other agreement of June 21, 1875. But, as you have not seen fit to do so ; and have com- pletely exhausted my patience, by the very extraordinary manner in which you have treated me in connection with the subject ; and as I am ol)ligt'd to leave town early next week, to be absent some time, I shall proceed at once to make such a disposition of my claims against you, as I may deem consistent with my own interests ; in accord- ance with the intimation given to you in my letter of 26th April last. In doing this, I shall place my claim, under your Agreement of June 21, 1875, in the hands of my attorney, who will communicate with you further upon the subject. And I shall endeavor to dispose of my interest in the claim, under your Agreement of Augtist 18, 1875, to other parties here, who may be willing to allow me a reasonable consideration for it. WHAT HAS BEEN DONE ABOUT THEM. 17 You would therefore oblige me by informing me, at your earli'»st convenience, as to which of these respective Agreem 'uts, you desire, or intended to have me credit the payments which you have already made on their account ; so that the amount due under each Agreement may be distinctly understood. Otherwise ray attorney will be compelled to decide the matter as he may think most in accordance with the " Statement of Facts, " and attendant circumstances, which 1 am preparing for his use. Yours very respectfully, S. SEYMOUR. The Honorable Thomas McGtREevy, Contractor N. S. R., &c., &c., Quebec. " Mr. McG-reevy has made no reply to the above letter; and therefore, any further correspondence, or negotiations between us, with a view to an amicable arrangement, are necessarily at an end. Whatever may be the result of my future efforts to obtain justice in another direction, I feel quite conscious of having pursued it in this direction, much longer than is consistent, either with my own interests, and self respect ; or with the demands of strict and impartial justice, even though it be clothed in the " Sacred'" garb of " Confidential. Arrangements. " SILAS SEYMOUR. Quebec, May 9th, 1876.