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No Bubject hag been more discwssed since Mr. Mackenzie came into office than kis unfortURate purchase of ste^.1 raiid. A simple record of the fActs in this oa^e is all that is necessary to show, first, that the purchase was a most unwise one ; noxt, that it was without the authority of Parliament ; and, lu«)t, that it was open to the p;rave suspicion of having been prompted by a spirit of nepotism. It will be remembered that Mr. Mackt'nzie's first proposal in relation to the Pacific Railway was to u^lize the water stretches. All the railway, ttierefo e, to be built bj him was about 45 miles from Lak>e Supe- rior tn Shebandowan, and about lOO miles from the northwest angle to Fort Garry, and tho Pembina branch of about 70 miles, mahing altdgeth<-r a li tie over 200 miles of railway, which hn had the itimie diate intention of building. In the fall of 1874, he advertised for tenders for some rails, and the first auspicious circumstance connected with the matter was the man uer in which thvse advertisements were inserted. It will be admitted that it was a matter of the greatest pnsi'ible import- ance that the fullest publicity should tie given to any invitation lor tenders of this description. The manufacturers of steel rails were in England. Their a^j^ents in this country must of necessity communi- cate with them, and unless, therefore, there was time for that communication, tho trade at large must necessarily be put. to ft verv great disadvantage. And yet we find that the advertisement was dated onthc29ih of Septemh«r, thnt its first apMoarnnce wa« in tho viofUreal Herald of th« 2ad of Uctober, and that '* askud fur tenders delivered in Ottawa on the 8th qt October, so that itJEK WERE O ^LY >-IX DAYS DURING WUiCU Mi^R- CUANTH COUL.> ARRANGE .OSiii-D I TfJEIR TEVlEiiS. No buMuess man will say that thai; was long enough. The retwrn brought down to Parlia- ment states that the advertisement was inserted in the followin-* newspa- pers: — herald, Witness, 'Nati nal, Bien Public, Trade Review, Mercury, Journal de Quebec, L'Ecenement, New Vork Herald, Scotsman, Coal nnd Iron Record, Globe and Kation, Now, as a matter of fact, the a'lvertisement did not appear in the Toronto Globe at^ all. Mr. White, in a speech delivered kt Winchester >piing8, ofTrired to eontrib>ite $100 to any charity Mr. Mackenzie might name, if the first advertisement could be shown to have been publisiied in the Globe. The Trafe Review had actually ceased to be pub- lished. The Scotsman, Cal and Iron Record and Nation were all weekly (.apers, and the time allowed made it impoj-sible that the advertisetnen', even if inserted in them, could have been of any u-e. The only papers, in lai't, in *'hich the adve tisement appears to have heen printed were the Herald and Witness of Vl<»ntreal. The appearance of the ud- vertisemeftt caused eotne interest among the merchants of Montreal, and we have iiie testimony of Mr. Th' mas Work- man and of Mr. Datlins? that they represented to Mr. Mackenzie that the time was altogether too i-hort, and upon their representations it wan extended. In h's speech in Parlia- ment iu the seBbion of 1875, Mr. Mucken- fe3Qul?^1S?]Ci5r^ Kio.^ zie cited both these gentlemen as having advised the purchase of these steel rails, upon the ground that the market was in a favorable condition ; and yet they both subsequently declared the first they had ever heard of the matter was when they raw the advertisement in the Montreal Herald, and protested against the short- ness of time allowed to persons to tender. That is the first serious inaccuracy on the part of Mr. Mackenzie in his defence of this purchase. At their instance the time was extended, and, in the Herald of the 5th of October, the postponement notice appeared, giving up to the 16th of November to send in tenders. Even that postponement notice dil not appear in the Globe until the 13th of October, five days after the tenders were required to be in Ottawa, according to the first advertisement. So much for the manner in which ten lers were invited for these steel rails. Next, as to the contracts. Mr. Macken- zie has claimed that the lowest tender was in every instance accepted. The tenders which actually were accepted were as follows: — Guest & Co., $54; Ebbw Vale Company, $53.53 ; W^st Cum- berland Company, $53.53, and Mersey Steel and Iron Company, $54.26. This last company was represented by Cooper, Fairman & Co., of Montreal, whose names have been unpleasantly associated with this transaction. It will be seen that their tender was 26 cents a ton higher than the highest of tlie others, and 73 cents a ton higher than the lowest. Each of these tenders was for five thous- and tons, excepting that of Cooper, Fa r- man & Co., which was for from five to ten thousand tons. And yet THE HiaH- EST TE.VrJER Was AWARDED THE COOTRACT FOR TWENTY THOU- SAND TONS, while of the others the Eljbw Vale Company got only five thous- and tons. Guest & Co. ten thousand, and the West Cumberland Co., represented by Cox & Green, five thousand, the latter at their own earnest solicitation being subsequently awarded an additional con- tract for five thousand tons more. The tenders were all in accordance with the advertisement for rails to bo delivered at Montreal ; but there was another tender, of which no notice whatever was taken. L from Messrs. Doyen & Ramsden, of Ant- werp, whose tender was sent in through McMurray, Fuller & Co., of Toronto. Tl»t te.ider was as follows : — Brussels, £9th October, 1874. Orntlbmrn : Tn accordance with your favor of inat • we beg to offo , subject to your Bccep- tation for 25th prox., one, tw.t or three par- oelN of 5,1100 tons each of HesKemor nteel rails of the nnest quality at £ siK- per English ton f.o.b. Antwerp, net cash arainst B-L in Lx>n(lnn. Those rails cun be of any section you like, provided they hto not under 80 lbs. per lineat yard. Q hcse rallH would be of eur own make, as we are establishing works for them, would be cut 1 i length to order, brand- ed R. Delivery during period of navigation next yea:'. Yours truly, (Signed;, DOYEN ARAMSDBN. No notice was taken of this offer by the Department, upon the ground, as stated by Mr. Mackenzie, that it was not in ac- cordance with the advertisement ; but, if the object had been to secure rails bt the lowest price, there is no doubt that this was the best tender of the lot. Antwerp was an exceedingly favorable point from which to obtain freights. There are large imports of grain and petroleum at that port, and usually there is a buperabund- ant supply of tonnage there, both sail and steamer, so much so that it la quite common for vessels to proceed to Wales, or the coal ports on the northern coast of i.ngland in search of coal or iron freights. By steam, rates ranged from twelve to twenty shillings a ton in 1874 and 1875, and it is ndt too much, there- fore, to say, that freights could have been obtained at fifteen shillings from Antwerp to Quebec or Montreal during that season. It will be seen that the of- fer made was for fifteen thousand tons, and that the price laid down in Montreal would be £10. 15s. Od. HAD THE FIF- TEEN THOUSAND TONS GONE TO TaE ANTWERP FIRM, INSTEAD OF TO COOPER, FAIRMAN & CO., WHICH WOULD STILL HAVE LBFP THEM FIVE THOUSAND TONS, THE HE WOULt) HAVE BEEN A SAVING OF AT LEAST TWENTY-SEVEN THOU- SAND DOLLARS. Mr. Mackenzie, in some of his speeches, has attempted to show that he made an offer to in- duce the agents of the West Cumberland Co. to take the contract for the whole quantity. In a speech delivered by him at Whitby he said': ** one firm tendered for "5,000 at |54 ; another firm tendered for " 5,000 at I&3.24. This firm was the " lowest, retresented by Cox & Green, if " I reoollect aright. / pressed them ** to ta'ii^ the whole 40,000 we then decided " to order, but ihey declined to take more •* than they tendered for, and Cox & '' Green have published a letter over their " own signatures stating that they were " preBced to take the whole contract at '■ the figure they named, that being the '' lowest." As a matter of fact Messrs. Cox &. Green never wrote any suoh letter. On the contrary the letter ihey d«d write is in direct opposition to this statement of Mr. Mackenzie. Dur- ing the oontioMersy which occurred while the Montreal electipn was going on be- tween Messt a. White and Workman, Cox & Green wrote a letter to the Herald ex- plaining their eonnection with the mat- ter and in that letter they said : " we '•' prepared a tender lor 10,000 tons steel " rails, at £11 stg. per ton. delivered here, " and without coming any further into "contact with the Department, '• were informed by telegram '■'that our tender was accepted." They were mistaken as to the ten thou- sand, because in the first instance they only received a contract for five thou- sand, and the correspondence which ap- pears in the return brought down to Far liament shows that they had some diffi culty in getting the contract for another five thousand. ThAt correspondence is as foUowd : — " 13 and 15 Hospitai. "treet, '■ Montreal, Deo. I8th, 1874. " Dear Pi»,— '\^ o » reto day-ln re^e pt of ."^ cabSo eommunlaation from west Cumberlund Iron and 8teel C'»mpany (Limited) informlnij . us tbat taking iutoeunsideralionthoiavorablo terms of payment, tbey aio picpared t>iu- arease tbe quantity of steel rails wbicb they are contracting to deliver from (o.OOO) live thousand tens, an tbo quautliy*aow bluud", to emlnd youtbatomr price is tbe lowest of any, viz. : (£U Os Od.) eleven pounds bterl nir per ton do- li'Ter«din Afonteal. We would now, there- fore, reppectfully request that yo-i would bring the propot-itl'^n to the notice of ihe .^■ln- Ister of Public Work.s, calling hU partif^ular attention to 'he very low price oi the r.aila. " fcioliclting thf favor t i n reply, " We are, Dear Kir, '• Your obcdlpnt servants, (Signed), " • OXifc QRLEN." •• F. BKAUN, Esq., Secret-iry " Vublio V orks Deparlinent, ' "Ottav^." " Montreal Telegraph Co., " Ottawa, Deo. 2l»t, 1874. " By Telearaph /rem Montreal, to T. Trudaav, Pvhlio Wo^ka : ' "Pee our letter 18th l5ecember, to Mr. Britun, oflTeriDg Ave thousand tons more rail?, If wanted; r«pTy quick, as a railroad is in treaty." (Signed), "COXA GREEN." And the following day came this ans- wer from the Secretary : — •' Ottawa, 22nd Dec, 1874. " Telegram to Cox <& Oreen, Motreal : " No further steel rails wanted. Thanks, (.-igned), . •' P. BRAUN, " Secretary." It is not pretended by Mr. Mackenzie that be made any effort whatever to get thB other parties, Guest & to. or the Ebbw Vale Company, to accept a larger quantity than they tendered for, so that WUJ HAVE Hi RE 7 flE LOWEST TEN- DER OF ALL AB^OLU 1 ELY IGNORED^ AT A LOSS TO THE COUNTR. OF TWENTY-SEVEN THOUSAND DOL- LARS. WE HA V E THE TH > EE NEXT LOWEST AWARDED MMPlY THB SMALLEST QUANTITY FOR WHICH THEY HAD TENDEREi, AND WE HAVE THE HIGHEST OF THOSE THAT RECEIViD ANY CONTRACTS AWAPDEU AS MUCH AS ALL THE OTHERS PUT TOGETHER. No one will pretend to say that a record of that kind justified Mr. Mackenzie's statement that the lowest tender was in every in- stance accepted. It will be seen that the tender from Antwerp was rejected upon tho ground that it was not in accordance with the advertisement j and yet, after all these tenders were opened, and all these con- tracts were awarded — when the whole transaction, in fact, in relation to the ad- vertising for tenders had been closed,— !\ private arrangement was made between Mr. Mackenzie and Cooper, Fairman & Co. ibr additional quantities delivered f. o. b. at Liverpool. It has been the boast of Mr. Mackenzie — it was his boast espefiaily in relation to this steel rail purchase— that in every case tender?* were invited ; but the facts show that in thia, as in other statements made in rela- tion to it, ho was wrong. The following ^jorrespoMlence will explain thia latest transaction : — " Montreal. IBth January, 1873. Deai: PtH,— In reply (o telegram of tho 7th inst., wo begt) ndvistj jou that wo liavo pur- chaNccl on account of Oominlou Oov»rnment .SW'O tons Bessemer Bteel-ralls nt £l0.10s.0U fob. I.lverijo->l,ciNh,ngalnst, bills of la'iing. " Woliavviulsocontract-tl fre gbts to Van- couver portK, viz , Ksqni mult, iJowlcb in Hay una Kunalmo, at £J.6s.0d. sterling per ton. " The fovornment amiumin^ the responsi- bllhyo' freight, Ac, whiclt Is to say, to pay siiippeis, inaKcrs not assuming delivery .to Vancouver ports. '• tolouhl \ou require the track boPs for this lot, \vd can nrraogo f r them imd Includ". \ve nro ndvi^^cd thiv'< > teel rails are now held at XU 0:s.(d. Wo would bo glad t> bo favoured wlih tlio address cf your bankers in > ngland, to whom wo suppose tho bills of ladi g will roquire lo bo prejjented. Kindly conflrm tho contract ns soon a^i post-lble, to enable u.5 to cable rppij-,tno necessary documentii to follow. ^*ours faltnfally, (Signed) *' CooPBR, Paiemaw & Co." " Hon. a. Mackenzie, Ottawa." " Ottawa, 21st January, 1875. " Genti.emfn,— in reply to your several communicatio tion behalf of Messrs. Naylor, Benson <(;• o, ,lumto utato that tho f Jove rn- ment nccertH their offer to .supply r-jiX-O tons uf steel raiUnt £10 iOs Ktorliigper toaf. o b. n- Liiverijool, uiid "Hows i.^ j.er ton lor xreights to th« Vancouver jiorf*. '•Tlio A gont-Genera! of tho Dominion, E. Jenklcis, Esq , will hfo to ih« insurance. •' I less-: . Morton, Rose & Co. nte tho finan- cial agents of tho Government ia I.ondoa. " I have, &c., "F. BBAUN, •• Secretary." " Messrs. r'ooper, Fairman & Co., " Montreal." THAT WAS A PURCUASSOF KAILS WITUOUr AsY TEKDEK Wi AT- EVl R BEING ASKEL» FUR. IT WAS A PURCHAS; Ob' RAILS ON TERMS WIJICII HAD BlE n:XP vE&SLY RL- JEC-LD IN TIIE CANliOFTHuAl.T- WERP TENDL R, AKD IT WAS A PUR- CIlAbE AT 'IE J t:lllLLl?NGS A T< N IIIGQ RTQANRAJLSWEREOFFER- fiU 1 OR, Ar TfctE VERY 'I iM\i OF MR. MACKENZIE'S PLR'^HASE. What would have been the effect of an honest submission to public competition lor this now quantity may be inlerred from that fact J and what would have been gained by the acceptance of delivery in England instea I of Montreal, may be inferred from tho following correspondence, which wc find in tho return brought down : — " PuiL4DELPniA, Octobor 23, 1874. " Deak Sir,— In maklns; toindersf ir 'Steel Rail ,' you require deiivcrits to be made at Aion'reul. " I write to ascertain if tenders would be re- ceived fjrr I'M t> be delivered Ht 1 iverpool, and 111! matters of fre'ght and insuranco would then bo In your Lands. This course wou'd bring ont greater rompetltiou la way of bid?, thus reducing p. ices. " Yours Iruiy, (yigntd) •' VUILIP 8. JUSTICE." " F. BU'.UN, Esq., S'ecretrry, " Pubilo Wo ki Department, "Ottawa, Canada." " Ottawa, 2:th October, 1871. •' 1*13,— In reply to «ae enquiry mado In your communl.-;«t?oa ut tho 2'lril Inst., as to whe- ther iho pepart men ''would accept tenders for .steel ralu delivered itt Liverpool, Kngland <* c, I beg to Infui m you than i o eucli ttndcts would bo accepted. lu aJdItlon totbeplaco men.ioned in ;Uo specifl' atlon for delivery, tho J ©paitmeni wou d have no objection to t niers f >r del very on Georgian By, Jjaka Huron, or Duiuth and Thunder Bay, Lake auperior, ' I have, &o., \ (signed) <' E. BRAUN, " Hecretary." " Pnijcip R. Justice, Fsq., " No. 14. North Fifth street. " ruiadelpala, Pa., U. 8." There ij no doubt that Mr. Justice's statement, that permitting rails to be de- livered f.o.b. at Liverpool, would have greatly increased tho competition, and would have had the « ffect of correspond- ingly decreasing the price of those rails ; but it irt evident that it would not have suited the special object of Mr. Macken- zie. The public, however, will naturally ask what right Mr. Mackenzie had, in tho first instance, to reject tho tender from Antwerp, by which $27,000 would have been saved, on the ground that he would only accept rails delivered in Montreal, to refuse the offer ot'Mr. Philip S. Justice to increase the competion by accepting tenders for rails delivered at Liverpool ; and after- wards, by private arrangement, to enter into contracts with Cooper, Faifman & Co., and get other rails so delivered at Liverpool at ten shillings a ton higher than those offt^red by the Antwerp firm, and by tha West Cumberland Company a,i well. People will naturally inquire, WHO WERiil rms FlhM OF COOPER, FAIR- MAN & C \ '10 WHOM '^IjEjE spe- cial FAVORS WERE GRAi.'TED? What was there in their business which \ should have secured for them privileges absolutely refused to other firms ? The answer is one which certainly cannot be accepted as creditable to Mr. Mackenzie. Ills own brother was a partner in the firm, and to that fact is to be attribitted all these spe* ial favors. As doubts have been expressed upon this point, it is as well to give here the ofBcial notice of partnership : — •• [Vo. 6o'] •• Province oi Quebec, ) " District of ''oiitnal $ *' Wf. tlio undersigned, do hereby certify that- wo hnv ' eDteied Into co-partnership, under the ftj'^o or Arm o« "Cooper.Falrman & Conopany." us ineichants, which firm c n- fcisis of Jame^ Cooper, ol'the City of Montreal, and Frederick F'irman, at present residing; at Watt rloo, iu the suld Frovlnce, as general partners, and CHARLES MACKENZIE, of SARNI A, In the Province of Ontario, as a fperiai pawner the said CHAllLEB MAC- KEl^Zlti h<;ivingrontiibuted Fli^iEEN illOUSAND DOLLARS to the onpitHl stork of the said partnership. WhiCh said cu-partncrshlp commenceu on the FIRST DAY OF JANUARY INSTANT (1873.) and teru.lnates the FIK T DAY OF JANUARY, IS'S. Dated this second day of Jat utrypne thou- sand eJt^bthuudrtd and t-evei t.v-ihree. (tl«ntd), J \ M E ■♦ I OOPEK, F. FiX.:,RMAN, CH ui.fca MACKENZIE. Signed In the presence of ( i ued), JOHN C. GRIFFIN, N.P. Fyled and regist' r- d- this seventh day of January uue thouisand eight hundred and Kevtnly-three. v (algnid', HUiJERT, PAPINEAU 4 HONEY, P. y. C." But it has been pretended that Mr. Charles Mackenzie had retired from tho firm tpc'fore these transactions took place. Mr Mackenzie in his fpeech ia Noith York said : '• A firm in Montreal, in which " my broiiier was at one tim« a sleeping " partner, wereagentsof the firms in Eng " land who were tendering ; Lut before " th^y became agents at all in this matter " my brother withdrew from the firm " rather than have the slightest doubt " cast upon his integrity in this matter." KOW, A-) A MATl'JiK Oif Fact, AND AS P OVID BY TUE RFXOi D, Mli. CnAl(LEs Ma< KENZIE DD NuT Rt- TIRE hROM THE FIRM U^TIl aFIER ALL THiiisE TRANSACTJONs TOuK PLACE. There has been some attempt to mystify this matter by pretend- ing that the notice of dissolution was not inserted at the time the disso- lution took place. There is no doubt upon that point, but the notice of dissolu- tion states the time at which the partner- ship ceased, and that time was after all these contracts had been entered into. Ilere is the official record which leaves no room for doubt on that point : — ^ " Pkovince op Quebec, i i ihtrlctof r ontreal. S " We, James fooper ai.d Frederick Falrman, both o< the City oi Montreal, llaruw»o Mer- chants and III porters, hei'eby certify that we havecarrl dou audbiieiidio carr^ on bust- uesHustucuut the s>.ld • Ity of A ontreal, in partnership under the name or firm ol (Joo^it r, Kalimaudi Company, ai.d that tue said co- partueihhlp hassunb stcd sincotho fourth day ot'May luBt, urul that we, the taid James Coof cr, an I, / red r ilc t a rmon < rw i nd have b en since the said day the only members >/ the said partner- ship. WitotSH our bai ds at Afontreai, this twentieth day of July, one thousand eight hundred and Keventy-flre. "(feigned), JAMES COOPER, F. FAIRMAN. " Pyled and enreglstered tbls twenty-fourth day of August, one thousand tight bandied and seven yOve. "HUBERT, PAPINEAU & HOVEY, We have thus the fact beyond contro- versy, that MR. CHARLES MACKENZIE WAS A PAkTNirR IN THE FiRM UF CuOPER, FA KMAN & CO. WHEN Ht.-E iXlRAORDINARY FAVOitS WjlRE (.RaNTjiD '10 THE FIRM BY MR. MACKiNZE. That he did not retire until after A the con- tracts had been made; ;'U we know he received on bis reti.ement pro- missory notes payable at the Exchange Bank for the $15,0(X) which he had put into the firm. It required the proceeds of these transactions to enable Cooper, Fairman & Co. to pay these notes, so that the fact is beyond controversry that the result of all these transactions was to en- able Mr. Charles Mack' nzie to withdraw his capital intact from the firm, in which, but for that fact, it would probably have been irretrievably lost. WHAT THE COUN iRY HAS L »sr BY 'i HE MERE PURCU K.-E OF TIIESa RAILS HAS BEEN ESTIMATED AT NOT MUCH LLSS'lHAN 'IWO MIiLIOaS OF DOL- LARS. 'Ihe statement prepared by Mr.. Macpherson on the subject of the loss from this ste 1 rail purchase is as follows, and no man is better qualified to give u Ntatc- ment upon the subject than that honor- able gentleman : — The Profit and Less Acrount of the Oovcrr- meut^teei I' aliNf peculation may be taken to Ht nd about as fol lows: — Cash paid in Eiig and f<.r stool rails and faHteniijgs $2,938,000 The same quantity cou'd have bren purchased, deliverable this Mprlng incanada, for l.SCO.OOf) I OSS on first coHt $I,138.0CO iDtereft to SOth June, 1877, on ascer- tained ptyments '2'],365 To this must bt odded the cost of 4,000 tons laid upon the Truro and Plrtou lUiil ay, a line * hv would not have been tteelcd had not the rails been on h»nd 28S,120 (The Oov« rnmr nl has taben autbor- liy to truusfcr' ibis RuUwxy to NovaE'coiiaas agift to a private Company. J Ascertained loss to the end of cur- rent fiscal year, SOtb June, 1877. . . . $1,615.3«5 Interest is running on at the rate of about $13,6tU p( r njoiith and is in- creaslug— I estimate the further ]o^s by interest before the rails are usedut f419,169 It may be assumed that the 0(ti0 tons to > ova Scotia, 4,000 tons of which are to bo given away to a private < ompany And the nmalnder are r.t various places from Kingston to Manitoba. " We have dealt thus only with the ques- tion of the purchase of these rails*, but there remains the question of transporta- tion. In April, 1875, Mr. Mackenzie ad- vertised for tenders to transport rails from Montreal to Fort William or Duluth, and the following tenders were sent in : — Ist E. Ha.muel, Montreal $6.0>perton. 2nd. ©.Edward, Kingston 6.25 " 3rd. C. E. Jacques & Go , Mon- treal 6.80 " 4th. Charles fetephenson, Mon- tre.l... 6.50 " 5th. Cox A Green, Montreal 6.50 " 6th. bolc<*mbe A Ltfc wart, King- ston 6.74 " 7th. J. H. Beatty A Co , Thorold. 7.00 " 8th. W. H. t erry, Euffalo 7.00 " One would have imagined that, in ac- cordance with the general principle Mr. Mackenzie has laid down, Mr. Samuel's tender would at once have been accepted. He offered as surety Messrs. D. Butters & Co., of Montreal, and certainly no better surety could be offered; and yet, UFON THE GROU^D THAT MR. FATVJUEL WAS NOT A STEAMBOAT OWNiiR, HIS TENDER WAS KEJECC. ED. ALIj the OlUtR TENDERS WERE ALSO REJECTED, AND AN ARRANGEMENT WAS MADE WITH COOPER, FAIRMAN & CO., WHO ARE NOT SIEAMBOAT OWNERS AND NEVER HAVE BEEN STEAMBOAT OWNERS, FOR THE TRANS! ORT OF THESE RAILS. The pretence was that in ;«he November previous. Cooper, Fairman k Co., in one of the tenders which they sent in, had offered to deliver the rails at Duluth and French River at $5.60 per ton e«tra, exclusive of any harbor or wharf- age dues. When Mr. Mackenzie got in his tenders as stated above, in answer to bis advertisement, be appears to have entered into correspondence with Cooper, Fairman & Co., and they tl?en proposed, on behalf of "The Merchants' Lake and Steam Ship Line," to convey the rails at $6.20 per ton, including all the charges mentioned in the advertise- ment. That offer was accepted. It will be seen that IT WAS TWENTY CENTS A TON HIGHER THAN MR. .>-AMUEL'S OFFER. Not a very large 'amount, not a very serious matter, being only a thousand dollar?, but even a thousand dollars, to an econo- mical gentleman like Mr. Mackenzie, ought to have been worthy of considera- tion. The most extraordinary fact, how- ever, is l^jat Mr. Mackenzie when he de- termined to refuse these tenders should have accepted Cooper, Fairman & Co.'s offer of the previous ^ovember, and should have ignored other offers which he had at the same time. Here for instance was an offer : — " Ottawa, Ont. , Novehiber 14th, 1874. " Dear (sir,— Should the Gbvernment pre- fer to have thece rails do ivered at the follow- ing prints:— Duluth. Fort William and Geor- gian B y Inst ad of Montreal, we can deliver th mat Duluth or Georgian Bay at $4 per ton additional, and at Fori, W llllum at $1.75 addi- tloi al, conditional as to the dellvtry at points named, that there bo a sutholent depth of water for vessels to go theieto, and that the consignees are to unload. Not knowing if it is the intention ot the Government to insure tho various cargoes on the lakes, we have not included the lake insuiance on the iLland frt ifibts, $4.u0 and $4.75, which would be about 16 cents per ton. " Your obedient servants, (Signed), " Perkins, Livifgston, Post <£ Co.» " Agents of Guest Co." " The Minister of Public Works." IBOAT JECr- DERS D AN WITH OARE AND IklBOAT RT OF that in airman they rails at This offer was from the agents of Quest A Co. to deliver ^ese raila at thn points named for an additional pumof |4per ton at Duluth or Georgian Bay, or $4 75 per ton for delivery at Fort William. That ia, in round figureu, at least a dollar less than Cooper, Fairman & Co. offered, and would have resulted in a saving of five thousand dollars. Ihen again in the Iwnderof T. V. Allis, of hew York, were the words *' with the option of delivery at Duluth or Georgian Bay at $5.00 per ton additional." That is sixty cents a ton less than Cooper, Fairman & Co., or a saving of three thousand dollars. ALI^TbE-E OFFERS WERE REJECT- ED, AND A PRIVATE ARRANGE- MENT MADE WITH COOPER, FAIR- MAN & CO., IGNORING THE lENDERS SENT iN, AT A LOSS 'JO THE COUNTRY OF BETWEEN FIVE AND SIX THOUSAND COLLARS. The ?)roceedings which occurred in Far- iament in relation to the seat of Mr, Nums, the member for Lin- coln, threw some additional light upon this transaction. It turned oat from the papers brought down at that time that TH5 COMPANY IN WHOSE BEHALF COOPER, FAIRMAN & CO. PRETEND- ED TO MaKB an OFFER IN APRIL, J 875, WAS ACTUALLY NOT IN EXIST- TENCBAT THE TIME, BUT THAT A CO;iBINATION WAS MADE IN fiUCH A WAt AS TO CONFER AN IMPORT- ANT FAVOR UPON A MEMBER OF PARLIAMENT WHO WAS A RUPPORT- m OF THE GOVERNMENT— a iavor which 3ubBequently caused him the loss of his beat, in consequence of its being a violation of the Independence of Parlia- ment Act. Then there was another trans- portation arran/!ement. Messrs. Cooper, Fairman & Co., who, ad we have said are not shipowners, were entrusted with arranging for the transport of rails to British Columbia, where it turns out that they were not wanted in consequence of the policy of Mr. Mackenzie in aban- doning the Vancouver Island Railway. NO TENDERS WERE INVITED FOR 'I'lIIS BKITISII COLUMBIA TRAN- SPORT ; but t!ie bovernment had a formal oft'er oa the subject, as will be seen by the foUovving letter : "MomHTALTELEORAPU CrKPAKV, ) " Ottawa, litb Jantmry, lOTS. S *By Telegraph /rom yew Yt/rk Mitckem e. to Boik A. " Have Ja«t received oontract c'nly execute by Gaest A Co., wbich we Inrwarit to you. \Vi learu, tbrougb a Transportai loo CQi^p-iny, tbai you may wHUt some r >11b at Britlkii Co* lumbla. Will you consider u propnslt on teomi us to sblp one fut direct tbero, orforan a4vV: tlonal ten tbouaai d tons to be sent there? Pie Be U legr>pb reply. "(aigmd;, •• PERKINS, LIVINQSTON, POST A CO." That letter was not even replied to ; but an arrangement was made through Cooper, Fairman & Co. for the transport of the rails at £2 sterling per ton. IT HAS NOW TRANSPIRED THaT THOUGH THE GOVERNMENT PAID £2 STERLING PER TON, THE AC- lUAL PRICE PAID THE .SHIP, IN- CLUDING 2i PER CENT COMMI9.IION TO THE SHIP BROKERS, WA8FBQM £1 8s 6d TO £1 lOg Od, SO THAT HERE AGAIN WAS A DIRECT' LOSS OF OVER TWELVE THOUSAiND' DOL- LARS. That there may be no dispute upon this point, we give the followiog, ex- tract for the charter party entered into with one of the vessela transporting these rails, it being at the highest price paid to any of the ships : — " Freight for the said cargo to be paldat ,tbe r .to of thirty eblllings, and flva per cent, primngo steriing per ton of twenty hundred welghton the quantity delivered. All port charges, pllotageB, dock and harbor dues on 1 be snip to be paid on the ship aa customary. The freight is io become duo and in to be paid as follow*, viz.:— Two-thirda 1 i London, on sblps' final sailing from port of loading, sub- ject to a discount of elz p r cent In full of in- terest. Insurance. Ac. Ihe equivalent of £350, a' the rate of exchange for bills on London at usance, free of interest and commls>-lon at the port of discharge for ships' dif^burs^monts there ; the balanc > la London wlibln 14 days after production to charterers there of con- signee's vert iflcate of unloading and right of delivery eft he cargo, less cost of damaged or rteflclent cargo, payable only to the order of John S. Dewolr A Co. Twenty-flve running days to be allowed f r sending cargo along- Flde, and the cargo to be received by tho can- slgno. s at the rate of not le^s than fiO tons per running day, Sundays excepted, and wiien rc^ qulrsdl'y the enslxnees, such ext:aqaautity as maj be praotlc>*bIe. Douiurrago to bo paid at tho lat-j of 4d por register ton per day. An address commishlon of two and a half per cent, on the amount of freight under this 8 charter In to bo paid t'^ tbo char torcrn and may be duductt'd b/ thorn out of tho llrbt puy- meat." We again quot« from Mr. Macpherson the followiog tabulated sf atemont of tho Ios8 on tranuportation, and adding to it tne item, to which we have referred, of ten Bhihinga per ton excessive payment, on the transport of raild toB itish Colum- bia, WE II VE AN ACIUaLL LOSS liN Tt E MEIluJ MATIER OFTIIA^- yPORTATlUN OF OVER NINEiY TUOU^iAND DOLLARS. On tne 6th January, If-T-, the Gavcrn- ment bough . r),uiO tonrt <.f steel rails fro a Mess s. cox Atirceu, of M ut- leul, ut illo fitg. ppr ou f o b la Eogl I d, M'd two duy.s aftoi wtinla (ontho7thJ;m luy. i."?? ,) tho(iov- ornm^Qt bougat f om Cooper, Fair- ra.n & Co., w!t-o it I'O -poiitlou, 6,187 tons it £10 Is. p r to ., alvo t. u. I), lu EoijUud, for iiritish Col- * umbla. The country's loss by this act of favour- llam w s 10*. itg. per ton, and...„„„, amounted to !i>12,GW InNoTcmbtr, 1871, Messrs. Darllns; A Co., f Montreal, tonUero.l lO i>. Ha and nu*s at*J '. 7po ten, and at tha same tlmo Coopor, I'alrman icssrs. Hope A Co., < f II imiltoD, \7cre paid at the rato of .^ii.'.0 per tm. The oountry'i; loss r y tl:i3 act of favor- itism und mlmmuKti cnt ^ as $2Jii per ton on IJ.OOO touu, and amounted to 2^,400 In April, 1873, 1h ^ Red • Ivor Tranap ir- tation < ompany tendered lor tho transport of r.iN fiom j ulnth 'O Winnipeg ut > l'> (IT. . < urrcnoy, per ton of i!.«lO ponds Messrs tul- If'.T A ilnc, of n mllton, tendered for the same servieo at $i:S50 (Ui-lted tat) poirdM.) Tho Kid liivv* Company got tho convtlct, and ^CjWM>i>oitea 15|U1 ton Tho dlfforenco In the rate of frcUlit arut in tbo ton weight tugeiucr amouul- ed to +3 .HO per ton. Tho couatry'n los« by this act of favor- ItlHih ur mlHinunai,g69 Tho loss on tho foir transaoMons which I h ive enunuratea amounts to $79,;138 These vails, sufficient to lay five hun- dred miles of railway, were purchased in January of 18.4. How thoroughly unnecessary was the purchase at thit time will appear from the return brought down during tho last session of Parlia- liament. That return hod relation to tho number of miles actually laid, down to