IMAGE EVALUATION TEST TARGET (MT-3) / O m/ f:% V / ^ Si 4b 1.0 I.I 1.25 it IIM |!;i|2.2 lU M L . !^ U^ 112.0 1.8 M iim 6" — PhotcMaphic Sciences Corporation 23 WEST MAIN STREET WEBSTER, N.Y. 14580 (716) 872-4503 PRINTED FROM THR « BRITISH CANADIAN."^ 'f J' TORONTO : 1853. 1 i-d&- f: > L 3 t\ f 11 U\ \ ( ( V . * i On and ' Tiiesd ande' mitlet stance City £ evenii I and ti ( eviden is moi printet bution procee liar \\ii or two attentii Tho labor r to consj occasio ! Alderra | but our I comment i whole lA on wil? be. state, that re said it e is some financier'' e desirous Jommitteo uld prove ; ut refused ny but a I f courted '■ secret at 'Q antici- get at the enough to 3 citizens, eady pre- institute 1 Court of our next, ir reader* lllK £50,(Ki(> DERE^^Tr'RE^. »/\/<« »\^/\ »> ,^ <>,^,^^,y,i^^^,^^^^ MondayEvenlnn:, Feb. Slut. The usual meeting of the Council took place on Monday evenin^T, his Worship the Mayor m the chair. AftSr the routine bu»i! nes8 was disposed of and various petitions ana communications presented. Alderman Gooperham brought up the re- port of the Select Committee appointed to in- vesltgate mto the issuing of City Debemures which was read as follows :— To thi worshipful the Mayor, Aldermen and Cvm^ monatty of the City of Toronto. The Select Committee to whom was referred the pention of David Patterson and others, be« leave to submit the following report with ac- companying evidence, viz, :— ♦T7v"',iP''"";?^M®^f"^ ^^'^^ <^^e Contractors of the ^orthe^n Kailroad received £50,000 of deben- tares from the City, for stock in the road, which they «oId at 20 per cent discount, which Appears to your Committee to be the full value of the same as evinced by the evidence of various parties be- fore j^our Committee. it is further apparent, that the City intereflli have not in the slightest degree suffered by the transaction, and that the Contractors of the Nor- them Railroad are perfectly satisfied, and that the Mayor or Offirpis o^ th*^ '"'"-n — ^?— »-_ .i .. .,• toilQ With thenegociation of the Railway Deben- I il I'll (I » (8) tiifat, and further, your CammttU^ utemmmM thit the whole or so much of the evidence giren before the Committee, as may be considered ne-- ««««ary for the information oi the citizens Ixi poblished. All which is respec 'nUy 8u1)mittedr Wm. Goodkrham, Chau-mxjm. Uommittee RootP, February 21at, 1853, Alderman Denison rose to declare thatthf* teport which had been just read waa not the report of that Committee (hear, hear.) it was not the report which had been adopted j he held iii his hand a copy of the report which had been adopted at the meeting of the committee which took place that day after a full investigation into the matter.— It was a most unpleasant duty to him to be obliged to get up tu make such a utatement. He was sorry to be so placed, but he did not Ijke unfair play (hear, hear,) or improper conduct, and he protested against the con- duct of a portion of fhe committee. They had that day met to come to a final conclu- sion of their labors, and had then discussed the question of the adoption of their report^ and a report had been adopted and carried by a majority— that report he holds in hia hands. The meeting had broken up, and be (Alderman Denison) had gone away, but after six o'clock, and when he was at hi« home about three miles distant from this place, he received a notice to attend a further meeting of the committee at half-past six o'clock, in order to consider some informa- tiofi then recently communicated to the chairman by his Worship. He arrived here again St a. nnar^Ar r*«r*^ * 0( [«t««Z %\^l sf* arh«^/%«% m^ •M, fU0» aw en, «Qd was sur* 'ommtfii ce gir«fi lercd nfr- tizent l>n 'l-TTUJm . that thf» not thf» ar.) ii iopted ; i report eting of lat daf alter. — n to be tement. did not nproper 10 con- Tbey conclu- scussed report^ carried in hi0 ip> and ay, but at hi* »m this further ast atx iforma- to tho id hem (9; priaed to find ill but one of the commiiian present—he found that tnere had beou a oommuaication from his Worship the Mayor which tl ey had met to consider He had read it an 1 was pleased to kgo it, and regret - t'Hl it haci not been niado (uiiijjr. Uasfni upon it a Jew report was proposed ; lie ob- jected, that it was then loo late to do so, ami ho expressed his belief that it would be bet- ter to annex it to their report and hand it in with the evidence. As a meiiiboi ofthatcom- TTiittoe he would protest against that report- he contended that the chairman had no pow or to sign it—no anthority to (!q so. He re- peated he did not like any Improper conduct. The minority who objected to that report were not treated properly ; the document now handed in was most irregular ; it waj not the report ot the committee. When thia report (which he hehl in his hand) was • adopted ail the cornmitte*? were juesent-— when that one was substituted all were not. (Hear, hear.) Mr. AsiiFiELD—This may not perhaps h^ the proper time to stale why ho dissented from the report now brought up. On the other band perhaps it may, he would however staty hiftopmion. These proceedings ef the com- mittee he would say were most unprece- dented. A report had been prepared and •ubmitted to ilie committee wlien all the members were present, and carried by a majority of the committee, who then broke up and afterwards another report was brought in and carried by a majority of those present, but not a majoiity of the committee. Alder- man Denison's report was that which bad ';>oon adopted when all were present, aO/jr I ii .4 y* Lib (10) deliberation from one to 5 o'clock, when the committee separated. After that-afti five o clock-he Mr. Ashfield received a t^ot ce to attend another meeting again at half-^^l^six" p.m., to consider some statement from his Wo h,p. If that statement had been recSve^^ by the committee at a proper time, it would have had every considerition, but ,7 wa. not received until after the re, ort had bJeti adopted and the committee brol^en up! There rl''fr'"I™r"'^ ""Sreat difference tt ween he effect of the two reports, but the course novv pursued, shows in this alterapt to subsu! s ^tft r"/ °"''° t^tadoptei,that tWe 1.^ in the back ground something unfair- someth.ng that it was not desfred to be brought be.ore day-light_somethin^ which ward bv^AlT '' ""'"n '^'^"^ ''P'''' ^'"' S^t for- « aia by Alderman Denison, was the ronort „• the committee, (loud cries of read it, Sn and 11 was then read us follows- ' cay of roronlo, zn Common Council A Jmbkd. i he Commutee to whom was i rf,;rrc (heir "«» cause a ' 'h"' ^""''e the re- not don^ T. , ''" *'-'"' '■««-'v<'d it. This waa r,?L ", ?' ^' = '^P"" *»'*•«'' mosi improperlr he r^usl .l"°';l!""',"» «''-"«'^«"'« from Xh m ™ atemaf Cl^l' f.'^^''"'.-«^"ements which (hear {lear^"« *'" *^''"'"' »" l"* "«>' ^liJ d«.^rf,"n,w?,^M '■?.,''"'' *'« »""' «>"« <•"» u ..*jre, tnat was that the repoit should f?o m w«r i' 7'"' "'^ '-"P'-e-ion tha'tlem AZhl "^^'""'■•he.r report. This coo d f^L., ^ ''^r^' '* '^"^ subslilution of a dif. •ay how ,1 was adopted. On Fridav W ad journed to 10 o'clock this dayfVM„nda,v Alderman Bell and he Mr.(^wa*„Vere S i ^^^^^^^^©J <»3) lo prepare drafti of the report. They met hnd wanted the «latement of the Mayoi which had not been then ejiven, and Alderman Bell fcad his draft, it was not eeconded. His (Mr. Gowan's) draft was moved and lost, and the committee were occupied one or two houri discussing the matter, when Aiderman Deni- f on hastily prepared and wiote a report which was concurred in by a majority of the com- mittee — tl.e communication from the Mayor was eubrtequenlly received, and then th« present leporl was substituted. Mr, Ashfield •peaks of this report as having been prepared in a hasty manner. Why, Alderman Deni- •on's was more so. He did not vote for it. It was however adopted, and subsequently th« chairman of the committee received a letter from the Mayor, or it was found on the clerkt desk which led to the change of the report— that letter was read, and Alderman Denieon said ho was satistied with the explaaatioa 10 it. Alderman Dcnison— No. I eatd, if three particular questions were answered^ I woo!d be satisfied. Aid. GowAN said, they were answered. Aid. DsNjsoN said, ha did not admit it. Alderman Gowam resumed — After this do- cument was received circulars were issued; four or five assembled in this building ; Al- dernian Bell got notice of it, so did Alderman Denison ; the committer met 5 all were pre- sent but the mover who waikeJ out. Was thiifdoneto bmnd the Mayor with odium t When the mover, Mr. Btili walked out Al- derman Dentsoti read the communication ; Mr. Ashfield read it ; A!' «"' "^^ '«^^ matter which ied to a different report. Why did thev no minate thiscommilt'ee at all bVegetl «W truth I Let -111 the truth bo now belwe them and they could come to their own conclusfon after the evidence was read; with that view ee ofTho wlf f ''' ';■"'' ,Soins into JmmZ 11, ° ""2^° ""^ so disarm both. Alderman Denison stated that when the committee re-assembled this evening, "hrel of the commitiee walked out of the room- Mayo '8 ;t,e?«^ were all present when the itiii , ? f ' ^^"^ f'^^'l except Alderman Bell ^yho dissented. He ccutended it wa« hand in tlie communication with the report? it (15) X^"^^^p5"P came to the door and Mr, Bell left the room j Mr. Bell did not hear the discussion. Alderman Gowan.— You state quite right- ly. Alderman Bell, wilfully shut his eyea to the document. Alderman Brook.— Regretted this differ- ence of opinion. Alderman Gowan however, has given good reason why this report should not be received, when he states that the report r ?• iS? ^^^^ ^^ ^®^^^® ^^® communication ot his Worship was received, and that after it was read, another report was prepared and substituted, in the absence of members of the committee. He would move that the report brought up by Alderman Gooderham, bo not received, but referred back to the committee for further consideration. They were placed in a most unpleasant position and they would do right to protest against this course. Ho disagreed with the chairman. He would prefer further investigation, instead ot the report deliberately come to being thus dis- ^ilovredf and this unfair practice resorted to. Mr. BuGG— Seconded the motion. Alderman GooDERHAM—moved that the Council do now go into a committee of the whoie to consider the report. Mr. Romain seconded it. He said the public were lone enough ni suspense. Alderman Denison would vote for coin** nito committee of the whole so as to take the matter out of the hands of the special committee. In committee of the whole they need not cate which report was adopted, but he did not like the foul play in substituting anothw report for that which had been deli- berately adopted. ^» i t m II III (■ p If ii Lib m (16) JMr. KoMAiM mored also that the standing rule be dispensed with obliging the Council to rise at eleven, which was agreed to, and the Council went into committee of tlU whole. Alderman Carr in the chair. Alderman Denison said the report sug- gested the publication of the evidence, but did not say in what form. He would move that It be in pamphlet form, and that three pr fcur thcusand copies be printed. Mr. Macdonald said that if there weie •nything wrong in the course adopted he was the party to blame. Some of the gentle- men who came before the committee gave their evidence without any reserve, others refused to go beyond insinuations. It was de- •irabie to have unanimity in their report, and the committee not concurring in that of «ither Alderman Bell or Alderman Gowan the fhort report which Alderman Denison drew op was agreed to, after which a notice of the receipt ofa communication from the Mayor wae given and the committee met a se, but i move I three c were ted he 2;entle- e gave others fas de- >rt, and ;hat of ^an the drew J of the Mayor again, B pre- 6t one. le was by the es the of the ofpro- 3d the ed no f even as to ive in- dence (H) Mr. Grees would read a part only, the evidence of Mr. Kidout, Alderman Thomp- son, tha Charaberlain, and the letter of the Mayor. A member whose name we did not dis- cover, asked would he not itad Alderman Jiutehinsons i Mr, Greex\-~No, he did not want it. Mr. RoMAiN—Reatl the whole. Alderman GowAN-^Tlie whole is loo loni^, Mr. Lee thought the whole should be read, Mr. Wright--- There should be nothing' kept m the dark. ** The evidence was then read at length, and the communication from the Mayor. They will be bund in a subsequent page. Alderman D£NisoN~~said now that the evi- dence was read and all were informed of its contents he rose to say that the «ueslion bemg before them in the shape of the adop- tion of the repoit, he would have pleasure fa supporting it. Aid. Brook— -Consistency — Consistency, Alderman Denison— Who cries consisten- cy ? He was consistent, though he would nut adopt It as brought forward in committee yet when brought up as the repoit of the com- mittee, he would suppoit it. The only material dilference between tlie two was contained in the statement of the mcompetency of the committee to summon witnesses, and com pel testimony. When the report was agreed to, ihey had not the communication of the May- or, but in as much as he had now given an answer to their enquiries, he had no difficullv fttt sanctioning tiiis report and seconding it. 'I •ii m « Lit iii (18) Alrferman HATE.f said he wontd support tTio report. The letter of the Contractors h« thought conclusive,— the debenture* wero proved to be their property, and therefore w^ had no right to inquire what they did with it. Holding these views he would support the report. Alderman Bkll, who, owing to the noise and low tone in which he at first spoke was imperfectly heard we understood Vy say, that though taking the tronble to prepare a draft oi report, he had submitted it to tho committee but they did not approve of it. Alderman Gowan had done the same, and his report was also rejected, ^m\ Alderman Denison'5 taken into consideration, and tho committee decided not to adopt the version of the affair driven in either \m or Aldeiman Gowan's report, but leave it to the Council, when the evidence was submitted to form their own conclusions. It was his impression that there was a duty imposed upon him other than the wording of the petition on which the commmeo was called for; althouoh tho prayer was only as to inquiry into the issue of tne £50,000 debentures, yet, by the resolution they were bound tu inquire into the issue of all debentures, but he found that this View was beside what was sought by tfio petitioners, and he did not act °on it. It would be sufficient for him to remark, he had noUiinn to complain of up to that period when the Councii issued illegal debentures | It was a matter o< opinion, whether or not they were illegal,— counsel said they were lilegai, and that it appeared necessary to sub- •titttte olheisy md it was done. He r eueated that up t was not! these del found th; to be sub Mr. T. G he had ir friend mi £100,00(J condition debeiitun contracto and of wi was ther was somi evident t was a SDr otherwise issue pr understar that the tares for time that £100,000 understar] condition poralion s the amou of them h derstandt Bell) froi stated full troduced suit was I who foun( contractor (19) that up to the first issue of the £50,000 there was nothing wrong, but when he found that these debentures issued illegally— when h« found that le or othcfy and that the party advancing the money would thus obtain 20 per cent dis- count on the whole sum. The ordinary rato oi discount had hitherto been 20 per cent or one per cent for each year to run, but ii doe» not appear that these debentures were pur- chased at that rate ot discount by the Mayor's own money. He could not understand why the name ot the purchaser of ihe debenlurf * wasi kept secret it all was fair and right. — Every party examined before that cominitieo who was supposed to know who that party was, dechned to answer who was the pui- chaser, or on whom the loss fell. It was passing strang-e that when the witnesses supposed to know the secret came to that point at which allusion was made to the pur- chaser of the debentures or the profits on the transaction, they declined to answer any question on these points. (Hear, hear.) — The fact is spread over the minutes in lan- guage too plain to be misunderstood. Ho would further state, he had been inclined to the opinion that the party who loaned the jC 100,000 and the parly who purchased the £50,000 illegal debentures were one and the Siime, but when he considered Mr. Kidouts testimony, and when he put his finger oa that part of it which relates to the transac* tion, he finds that Mr. Ridout tells the com- mitt^ that the 100.000 ifausactioa was ■MfefaigMiW .y. J rn mrimmtimmutm ZSsaoi. ;o,oooof 8SU&, or tat ion oi* kevv they iy oi" the LtJ &haptj uing the jent dis- riary ratr«- vont misrepresentations of statements wnick there was nothing to impeach. Aldermaa Thompson's testimony comes^next, he does not know who made the i:iO,(X)0, he tells ua the contractors brought a|)rofessional gentle* man from New York to arrange for the pur- chase of these debentures which were there valued at par though here they were at 20 per cent discount. Mr Cotton comes next, tie is asked wlio got the £10,000 and he de- clines to answer. The contractors Storey, & Co., ought to be able to set it ai rest and we have i\lr. Cartwrights letter on their be- half but it docs not teli us, we are told they dont complain, they were too honorable to do 60 for they assented to the sale. There was one peculiar fact in that letter of the contractors — they are inlormed of the wish of the counsel to k.iow to whom they sold, and those contractors who are apparently under no undue official influence which could weigh with them, make use of this expression, in answer to the question "to whom did you sell ?" — « We decline to answer — there was no undue official influ- ence used." This evidence stands unim- peached, and he hoped this Council would compel them to place the Mayor in such a position as will eh her enable it to be seen that he is blameless or that what Alder- man Hutchinson states is true, and per- mit Akierman Hutchinson to prove that it is true the Mayor is a party who par- ticipated in the £10,000 : he hoped it would I be so done, but from the manner in vvhich ^a I report from thai commiUee had been brought f i it i f4 /::!' I w .N £^ Lib m up, it must real with the citizens themseTves^ to adopt other measuies. That report doer not answer the prayer of the petition, ancJ that committee by their report compromise this Council. If what Alderman Hutchison has state(] should hereafter piove true, it will place them in the unenviable position, of having declined investi^atm^r Uie matter, and It would be thrown on the citizens to prove that this £10,000 had been diverted Jitoa channel, where itoutihtnot to ijo -^ He would rest suti.^fied ^ if the Ftate- ments in evidence van-e printed and circu- iated, but he innst record his vote nirainstthi.* report. Let the citizens have whaf liiey asked —liberly to file a bill, to get at the truth of a transaction which ss it liow stands, reflf^cts no credit on the Mayor or council of tlie City hy the course coutempjated the prayer of tno citizens IS not answered. The rej)or{ says, tha committee do not consider that the Mayor was the party who neoociated the debenture^ true-bnt ho, Aid. lieli thou-ht that he had participatedin this transaction which it wa.? evident would not bear theiioht of day. The simple facls are that Storey & Co. -ot tlia X40,000del>entuies, and after they -ot them bills were drawn upon FAirrhnd im- ihe price ot toeir purchase. Mr. Kidout tells iis thev were depositeil m t}>e bank— that Storey & Co gotcreditthereaccoidinotoarrano-emenls.and «ome one drew biJls on Enofland ior the price of them. Wnen asked who drew the bills ha declines to answer. Well Sir, i-f these bill, were drawn upon Enorl doer on, and promise' itchison 3, it will ition, of matter, :zens ta liveried go.-^ state- : cirnu- in St till a Y. asked uth of a reflects le City, r of ino iys,th9 Mnyor ntures, fie baci it \^'a.^ . Tho :'ot tii» . them, e price ^ ihev y & Co f Island it price ilJs ho ? bill* •chase of th» rcoTd^ (255 sufficient time had not elapsed for any refer* once to England from the time of their iasu*^ ro their sale. When we ask is the party who loaned the money for the piirchas*^ of ther £50,000 and the purchase of the £100,00a debentures one of the same, Mr. Illdout f^ayt ^' he don't know" but appears to be under the impression thattViey were not. He (Al- derman Bell) had endeavoured to do his duty to the petitioners. He was desirous to get at the naked truth ; but when tliey come to the point of interest, we are met with the refusal to give evidence, and the witnesses d<3dine to answer the qi>estions, except before a competent tribunal which could compel the disclosure of tlie truth. There- fore they should give their sanction to pro- ceedings in equity. Trie committee wer» powerless. He would be better satisfied to hear that the Mayor were blameless, but the evidence forbiesthat conclusi<)n. — Much .had ben sauidit to be made of the fact of Alderman Hutchinson declining to answer questimis, but then he was pleadged not to name the pirty who could supply the required proof until he was called before a competent tribunal v.iien he will there dip- rlose a fact which he can prove has a direct bearing on the case and stands un impeached. He thought it would be more becoming of The council to place the Mayor and Mr. Hutchison in such a position as would relieve the character of the ibrmer, or place the lat- ter in a position to establish the charge. When the public have carefully considered ill arrive at the conclu- \e evit ^y ion he had-they would get at the truth. Mr. Of I - ■ ■ jid uh n (26) Ridout it is said contradicts Mr* Hutchinscsi^ but the latter challenges contradiction,— Their testimonies do not'clash, they are per- fectly consistent— both decline to answer when asked, who is this mysterious indivi« dual? They stop at the point at which the citizens desire to have inlbrmation. It wat Ptran^re the desire that existed to dispose of this matter in a summary manner, and he could not help thinking there was something in it not lit to see the light. (Cries oi hear, hear*) Alderman Gowan said there were grave charges made against panies which Aid. Bell reiterated, and persons \n the city echo- ed. These were most detrimental to the in- terests oflhe city. How were they to main- tain Its chaiacler, credit, and respectability! Was i: by levelling insinuations at the head of this council? Was it by employing the public press to caluminate him and sending calumnies across the hike? On what did ihey rest ? Let us refer to the eAidence. Al- derman Bell says iie cant see why the name of the purchaset should be concealed-— Sto- rey's partner says he wonr disclose him, Mr. Patterson fsa id, ii[i i i,i i ;ilfe*'.,'aM i .rffl ^ | Lit m I (28) cnsh, and for this poipose tliey rofd their £50,000 debentures at 20 per cent discount, Mr. AsHFiELD— said Alderman Gowan had alluded to him, and reflected on his conduct in clifferiug in opinion with him. Now every member ohhe Councif, know ihat he, Mr. A.s rider wag put and lost after a few observations io re- f%. (9i) I ference to tt, it being conteniled it would neg^^ ative the report just ado{)ted. The Committee having risen and the Mayor having; taken the chair Akierman Gowan siifd, that btlievini* hifi own report ttie best, he wowUI now movo itn substitution for that which had been just brought up. Akloiman Denison said ihecommillce had adopted his repoil— they irapropeily substi- tuted another,^ — thoy come here and get that other adopted by this Council, and now Ahf. Gowan brings in his own one, which that rammitlee atter full ileliberalion had re- jected, and ho asks the Council lo set aside the report which Inid been deliberately adopted. Here is a pretty specimen of the difhcultie^ which wcmo to be combated in that committee. Aklcrmen Denison, Caylcy, Hutchison and others, now rose from the table ami left the room in a body,— the following members of the Council alone remaining: — Aldermen Gowan, Goodcrharr , Robinson, Tliomp.son, and Hayes. Messr:?. Green, Lee, McDonald, Davis, Baxter, Romain and Bugjr. Akierman Gowan at a ([uartei to two in the morning moved Uie subsiiiulion of hii* report for that of the committee and proceeded to reatlilat length. In this he was occupied until a quarter to 3 o'clock. Mr. Romain seconded it. Mr. Baxter, Alderman Hayes, and Alder- man Robinson objected to this course. Alderman Robinso}^ asked the Mayor was this course regular ? The MAVoa—Yes ; perfectly 60« •(lit ■ i II h^ Ms 17 Lit (32) Alderman Thompson feuggeaJeU that th# wport Khoulcl be ehanj^a^d into a rePuIuUou ami so aiinexeil to the report aheady atlopu ed, and this course was ultimately a-rreed to, tae report was adopted, and also Alderman <.owau\s lengthy repoil turned into a resolu- tion to ha anueveil to it. It was also resolved that th« report and resolutions and a synop- mj of the evidence which Alderman Gowari faid he had prepared for the purpose should be published in ihc Toronto papers, and thai the three documents toj^ether with the evi- Ueiit^ should be printed in pamphlet shape, and 3,000 copies struck otf for tho use of th« council and for distribution. At a few minutes to three o'clock this strange scene terminated. I fes: ■*8BiaWB>W«S iJimK f iitM>m a um m mm > > > mHui . (33) V (^Frmn. the British CanadianJ) Satubiiat, 2oth Feb., 1853. Thk Patriot of Wednesday last contains a gtalement in reference to the proceeding?? of the City Council, on Monday night, whea considering the report of the special Commit- tee appointed to enquire into the issue of City debentures, which we cannot allow to pass Without denouncing as an attempt to mislead the public as to the resuhs of that enquu-y. The Editor of the Patriot, after giving the report, which w-as brought up by the Chair- man, as the report of that Committee, and also the report which was really agreed to but most improperly s«ippressed,infbrms his read- ers on the authority of Alderman Gowaii that Alderman Denison's report wliich had been thus set aside " had been adopted by one vote." This statement' is untrue, it was adopted by a vote of 4 to 2~-the yeas being, Messrs, Denison, Bell, McDonald, and Ash- field, — the nays, Messrs. Gowan and Green. The Patriot states that the report of the Com- mittee, and proceedings of the Council was « a full, complete, and triumphant vindica- tion of right and truth, against the assaults of calumny and falsehood.'* We will now examine what foundation there is for this assertion* ^ „ r^ The report which the full Committee, adopted by a vote of 4 to 2 states that « they !■■: If Lit f ■f (3*) pn on /Ae subject , consequence of not hay- ing power to send for persons, and papers, and to examine witnesses on oath/' and it furiber informs us *< that the interests of the yily, have not suiTered from the transaction in question, as far as the Conmitiee had been cole to discover,^' "Now we would ask, can this be consid- ered a full, complete and triumphant vindi- cation," of the conduct of any one whatever in the transaction ? We th hi k not, and we believe a dispassionate public, will concur m that opinion. We believe the friends, of his Worship the Mayor, did not so view it as lar as he was concerned,~.that the Mayor Imnselt, did not so view it, is evident, for, alter that report was adopted by the full t^ommittee, and it was functus officio, and when the contents became known, ,t elicited Jrom the Mayor, what was said to be an answer to certain question, and a statement « h ??n nnf^^''^''^ "' ^^^ negociation or sale of the ^50,000 debentures, a statement which he had previously declined, to give to that Committee, In that communication he stated that he "introduced the Contractors to the liank of Upper Canada, and rendered them any ass|slance in his power, ni the negocia- tion of the X50,00() debentures, but revived ^^^^f^^^^^^'^^^on present or prospective there- Now no body said he was paid, or to be paid, for the introduction, or his aid in the wJ^'^fn nki^^ "^^'^^ .'^^" '''''^ ''^'''^ »^^at there was i:iO,000 retained by somebody out of the produce of the £50,000 debentures issued at par on the 26th of Nov. last, iu this docu- ,'(■>■ ^ - —' (35) ment, being placed in the hands of the Chuirnjati the Committee were again called together, ami with uo farther nor bolter evi- dence before them, and i\\ deliiince of the protest of three out of seven who composed I the Committee, the majority set aside the I report which had been agreed to in full Com- mittee, and substituted one declaring that « the Contractors leceived £50y{)iK) of debentures from the City, for stock in the roadP No body ever disputed ihatj — and that they soUl this " slock in tlie road,^^ at ** 20 per cent discount wliich appears to your Committee to be the full value of same." — No body doubted that also. Tliis report further tells us <* that the City interests, have not in the slightest degree suffered by this transaction," in " Ihe slock in the road.^^ Who said they iiad I It tells us " that the Contractors of the Northern Railroa* are perfectly satisfied" — So they ought,— 'having sold their " stock in the road," to the City for double its cash value : and to crown the whole this precious report tells us << that the Mayor or oilicers ot the corporation had nothing to do with tke nego- ciation ot the Railway debentures." ! ! ! Here again we ask who said they had ? The Committee was appointed to enquire into cer- tain tiasactions in City debentures, and after a fortnight's incubation the Committee pro- duced a report, not upon the subject on which they were directed to enquire, but upon the sale to the City, by the Contractors of £oOflOi} of their RArLWAY stock, ill Was this "a full complete and trmmphant indication of right aud truth" as respects any j< Lit I I i 1 I (36) one? Wo do not think it was, neither do tho majority of the connniltee, for alter the iir.st precipitancy wilh wiiicii this report wnssub- sthnled was ^ot over, tho very men who had carried it, on coming' into tlie Council Cham- ber gave evidence of its iusuliicioncy for tiia purpose. Tliey saw tliat it virtually left tho subject of enquiry precisely ni the same posi- tion if not even a worse one than the repu- diated report, but some opposed it, others pressed its adoption and the Patriot tells us it *< was adopted unanimously by tne whole Council,^' this again is utterly false, five members rose against it, but a division was not called for. The vote of the majority was not any vindication of any one,it was merely the adoption of a report which didnot even bij a single sentence apply to the l 'Object of en- quiry. This was evident to the more astute mem- bers, but there was a draft of a report iir Al- derman Go wans pocket which that worthy Alderman " thought the best "though despite its merits the full committee rejected it. This report however was <^ just the tiiini? " where- upon says the Patrioty — ^* Alderman (iowan moved seconded by Alderman Gooderham that the report " which he Aid. Gooderham had brought up and moved for adoption in the early part of the evening << be not concAirred in^^ and that the report prepared by Alder- man Gowan " be aclopled in lieu thereof." How AldermanGooderham could thus stultify his previous act is a matter of wonder to us, but not so that at this strange proposal a num- ber of the members of the Council left in a body. HNe (37) The course was now clear and "this report^' says the Patriot << in the form ota Resohitioii "was concurred ui un'inunouslif by all the re- maining members of tlicCouncil." Such was not the fact. Mr. Baxter and Aid. Hayes ileclared they would oppose it, and Alder- man Robinson put to theMayor the question, "Were their then proceedinjjfs re;[Tular, and his Worship answered << perfectly regular," al- thouixh at the time there tvas not nor hal there been for some tune a quorum of the Council •present. But opposition was useless — the ques- tion was put by the Mayor, none of these centlemen rose against it and it was accorrl- ingly carried not unannously but without a division, yet this is pronounced by ihe Patriot '* a full, complete and triumphant vindication of right and truth against the assaults of cal- umny and falsehood." Up to this stage we agree with the committee that there is an absence ot evidence to criminate any one, but if any of the parties supposed tobe implicated rely upon any report from the committee or on the proceedings of Monday ni^ht as ^» a full, complete and triumphant vindication " they must thereby criminate themselves. We sin- cerely trust the Mayor of Toronto may not bo among the number, but that he may accept the challenge thrown down for a legal inves- tigation which alone can serve the purpose. H L \h ■1' f MINUTES OF PROCEEDINGS OF THE SELECT COMiMITTEE APPOINTED TO INVESTIGATE INTO THE ISSUE OF CITY DEBENTUKES. Wednesday, Feb. 9, 1853. The Select Committee to whom was refer- red the Petition of David Patterson, Esq., and others, praying for an investigation into the issue of City Debentures met. Present — Aldeimen Bell, Denison, Gooder- ham, Gowan ; Councillors Ashfieid, Green, Macdonald. Alderman Denison, seconded by Council- lor Macdonald, moves that Alderman Good- erham be the chairman of this committee which was carried. Yeas, Aldermen Bell and Denison ; Councillors Ashfield and Mac- donald ; nays. Alderman Gooderham and Gowan, and Councillor Green. Alderman Gooderham took the chair. Alderman Gowan, seconded by Councillor Macdonald, moves that it be resolved that all the proceedings of this committee be taken down in wn-iting including the questions to and answers of witnesses, which was carried. Alderman Gowan, seconded by Councillor Macdonalfl, moves that the undermentioned witnesses be requested to attend for the pur- pose of giving evidence to-morrow (Thurs- day) at 3 o*clock, p. m., namely — S. Thomp- son, Esq., chairman Finance Committee, Joshua G. Beard, Esq., late chairman Board I I (39) I I I of Works, David Paterson, Esq., first petiti- oner, The clerk of the Common Council, and The Chamberlain of the city, which was car- ried. Alderman Denison, seconded by Council- lor Green, moves that the questions intended to be asked of witnesses be furnished th^m in writing ; yeas, Aldermen Denison and Gow- an, and Councillor Green ; nays, Alderman Bell, and Councillors Ashfield and Macdon- ald ; the votes being equally divided the chairman voted with the yeas. Carried. John Bell, Esq , examined— 1st. Have you at any time purchased or offered to purchase either for yourself or for any other person the Debentures of this city 1—1 have. 2nd. At what rate did you offer to purchase % At various rates, from 15 per cent downwards— will answer more fully to-morrow. 3rd. Are you the law agent of Wm. Cawthra, Esq., formerly an Alderman of this city, and did you as such agent advise him to purchase city de- bentures 1— Mr. Cawthra is a client of mine ; I am not aware of having advised Mr. Cawthra to purchase city debentures beyond mere mcidental conversation in the oiiice. 4th. Are you avv'are at what rate the debentures were purchased by Mr. Cawthra 1—1 am not aware ot the rate at which Mr. Cawthra purchas- ed all the debentures ; I know that he has pur- chased some at a discount of 15 per cent down- wards ; I heard it remarked that Mr. Cawthra had purchased some at a much larger discount, as high even as 25 per cent. 5th. Did you as Mi Cawthra's agent advise him to demand 2 per cent from the city for receiving the money due him upon the securities which he held against the city ? I decline answering as 1 am not legally at liberty to disclose the advice given to clients. ,L mi" l> ¥ > i I I- I (40) 6th. Do yon know any matters connected with the issue of £50,000 city debentures in aid of the Ontario, Simcoe, and Huron Union Railroad, and if you do please state to this cornmittee what? I do know that on the 21st of July XlO.OOO de- hentures were issued on the 31st, .£10,000 on tlie 3rd of August, XI 0,000 on tlie 31st cf August, £13,000 and on the 30th of Sepletriber £5,000, and a further sum of £7,000 were issued on the 19th or 20th of October, Tiiese debentures as they were issued were ph\ced in the Bank of Upper Canada for the contractors ; I find that the last sunn of £7,000 were issued contrary to Jaw, as the Act oi Parliament authorising the loan of £100,000 was passed on the 7th of October, which act required that those previously issued should be redeemed, and in effect that no further issue should be made. On the 11th of October I find that the standing committee of finance and Assessment accepted the oifer of the Cashiet oi the Bank oi" Upper Ca- nada to provide the £100,000 loan. 1 got a de- benture on the 15th of January delivered to me by Dr. Beatty which 1 thought should have been a Railroad debenture^ but it was not. Mr. Arton, a Railroad Director, in August last inquired of me if I would take 80 per cent for the debenture I was entitled to. He had previously complained of ill-treatment in not getting his debenture at the time he offered me 80 per cent ; he stated that the Mayor had negotiated for them» and that that was all they could obtain for debentures. Mr. Cooper importuned me for this debenture ; 1 frequently applied for it ; upon enquiring again of Dr. Beatty, he told me that the Mayor had ar- ranged to furnish this debenture and had neglected to do so ; this transaction was a matter between Mr. George Cooper and the contractors for right of way ovei his land, or for feneirig which the city was not concerned or lesponsible to Mr. Cooper* (Signed,) TrvTfVr "R '£XJ[t« •■.^^^-'*^ (41) ed with d of the ailroad, 5 -what ? ,000 de- 3 on the August, )00, and 19th or ey were Canada sum of e Act oi DOO waa required deemed, ►e made, standing iccepted (per Ca- 3t a de- ome by i been a , Arton, jd of me enture I fiplained re at the ited that that that ?s. Mr. ture; I ig agaio had ar- eglected between right of the city ;^oopejr» Thursday Feb. 10, 1853. The Committee met — Present, Aldermen Bell, Denison, Gowaii ; Councillors AsUfield, Green, Macdonald. The Chairman, Alderman Gooderham being compelled to be absent at a meeting of the Directors of the Toronto and Guelph Railway Company, Alderman Denison was appointed chairman pro, tem^ A communication from Samuel Thompson, Esq., stating that he was •unable to attend the committee this day in consequence of being obliged to atterd a meeting of the Toronto and Guelph Railway was read. David Pattersout Esq., first petitioner examined, lat. Are you the first Petitioner upon ilie petition ©f D. Patterson and others, complaining of sonrid misappropriation of certain debentures of thia city? 1 am. 2nd. Can you give the committee any informa* lion upon the subject of the said petition and if so be pleased to state it ?— I have no knowledge of my o'.vn on the dubject, other than that contained in the petition. 3d, Are you a member of the Board of School Trustees of this city, and have you in that capacity eold thedebeniures of the city for the erection of School Houses? — I am a School Trustee, and the Board of which I am a member sold them. 4th. To whom were the debentures sold, what waa their aniftunt and at what rate of discount were they sold ?— -About £700 were sold to the Rev. Anson Green and first paid lor by note nnd , otherwise, the arrangements were for cash and the notes were redeemed within a month, the debfn- lurea were not surrendered until tht* notea were paid, the rate of discount waa at 17^ per cent for twenty years or | per cent per annum. Mr. Green got those ftl 4» 5, 6 and 7 years dato, the larger ill> n t$m (42) dates were taken by Mr. Short of the Bank of Upper Canada, at I believe a iiitle less per cent discount. 5th. If you purchased a city debenture would you be unwilling to state such fact and at what rate of discount ?-— I sbould not. 6th. If you purchase any debentures with the monej' of another parly would you conceal the fact T I should not with the person whose money I had invested, but J should not inform the public. 7th. To whom would you consider the profit on euch a purchase to belong? — The person whoee money 1 invested. 8th. Are you a member of the Direction of the British America Insurance Company ? — lam. 9th. Has that Company declined receiving the funds loaned to the city unless it is able to reinvest the same? — They have. 10th. What rate of interest is that Company now receiving for the balance due to it by the Corpora- tion ? — Six per cent. Ciias Daly, Clerk Common Council examined— lal. Are you the City clerk and how long have you held that office ? I am, and have held the office since February 1835. 2nd, Have loans or grants at any time been made to or stock taken in the Ontario, Simcoe and Huron Union Railroad Company for or on behalf ot' che ci'y ?— There were. 3rd. State the particulars of euch grant8» loans, etocka, when made, the amount granted or taken, and upon what condition? — On the 21st November, 1850, a deputation from the Board of Directors of Corpora* [amined— long hav8 i the office time been imcoe and in behalf of nt8| loans, i or taken, Voveniber, Erectors of n Railroad timittee on loration ta )f Toronto* at in com- i Railroad, fact for the and a hajf (43) from the present time, provided the Corporation grant the above sum.** On the 23d of November, Ihe President of the Board of Triide of Toronto, communicated the following resolution unanimous- ly adopted % the council of the Board of Trade. '* Resolved, that the construction of the Ontario, Simcoe, and Huron RailroadflWould be of vast im- portance to this part of the Province, and of irn- niense advantay;e to the city of Toronto, and in order to maintain our present position in the com- mercial community and to promote and extend our agricultural interests, it is the opinion of this coun- cil that the corporation of the city of Toronto should with the least possible delay co-operate with the directors of the said company in carrying out and completing their present arrangements for the construction of the road by a gratuitous grant of £25 ,000 debentures payable at 20 yearns date with interest: half-yearly, said debentures to be issued when so much of the railroad shall have been completed as will justify such advantage and satisfactory security obtained for the complf tion of the road." Upon the recommendation of the standing committee on finance and assessment of the council as contained in their report, No, 21, for 1850, the common council of the city of To- ronto, on the 25th Nov., 1850, adopted the follow- ing resolution: — ** Resolved, That the sum of £25,000 in debentures payable 20 years after date with interest at 6 per cent per annum, payable half-yearly be granted in aid of the Ontario, Sim- coe, and Huron Union railroad company on the conditions set forth in the clause of the report, No. 21, of the standing committee on Finance and As- sessment, and in order to extend the benefits o( the said railroad to all parts of the city, it be ano- ther condition of the above grant that the termiinis tor passenger trains .shall be erected on a part of the Market Block property now vacant, such por- tion to be leased to the company at a nominal rent for 9y yearsi and the line of ruiUoad shall be ear* ]| n m L' li (J rfl •If II '' J I (44.) ried aloni Palace-street and Front-street to the full extent of the city lots. The conditions of the 2nd clause of report referred to in the foregoing resolution was in proportion as the work progresses as one is to ten, viz , £100,000 to be expended on the road before any advance is made by the corpo- ration, then debentures to be issued to contractors lor £10,000, and that all future advances be made in the same proportion to an amount not exceeding; in the whole £25,000 on the 8th day of August, 1851. The manager of the Ontario, Simcoe, and Huron Union railroad company, aided by certam resolutions adopted at a meeting over which John Arnold, Esq. presided,applied for a loan of £35,000 upon certain conditions set forth in the said reso- lutions, which applications and resolutions were referred to a select committee. The select com- mittee on the 18th of August, 1851, reported that upon the most attentive consideration given by your committee to the proposition signed by Mr. Arnold as chairman, and alter frequent interviews with the manager as well as with the contractors of the company, your committee would recom- mend that in lieu of the propositions (or either of them,) this council loan the said company their debentures to an amount not exceeding £35,000, payable in 20 years, with interest on the same pay- able half-yearly, issuable in the same ratio as the bonus of £25,000 taking as security for such de- bentures the bonds of the said company to the same amount payable in 10 years with interest half-yearly, secured on the road to the satisfaction of this corporation upon the recommendation of the city solicitor. And further, that it be a con- dition to this loan that the road from this city to Lake Simcoe on the Holland river be completed in two years Irom the 1st of January next, and further, that as long as the loan of £35,000 con* tinues, the Mayor of this city for the time benig (if he be not a director in any other company) bo a director in the above-mentioned company, if he eet to the ions of the foregoing progresses upended on the corpo- contractors )3 be nfiade L exceedinj; of August, imcoe, and by certain vhich John of £35 ,000 } said reso- itions were select com- sported that 1 given by ned by Mr, t interviews contractors ►uld recom- or either of npany their ig £35,000, le same pay- ratio as the for such de- pany to the •ith interest I satisfaction lendation of it be a con- this city to i completed y next, and 35,000 con- time being lompany) bo ipany, if he (45) be a director in any other company, then any Alderman of the city for the time being to be riominated by the council to be a director in said company," This report was adopted by the council on the said ISthof August, 1851. On the 28th of Jur)e, 1852, the Council passed a by-law authorising the issue of debeLtures to the extent of £C0,0U0 in and of the Ontario, Simcoe, and Huron Union Railway, which provides. 1. That it shall and may be lawful lor the May- or of the City of Toronto, to cause any number of debentures to be issued to the Ontario, Simcoe and Huron Union, Railroad Company, in the propor- tion specified in the before recited resolution as the work^on the said road jirogressed. 2. That of the said sum of £60,000 the sum of JE26,000 shall be a gift to aid in the construction of the] said Road, and the remaining £35,000 shall be as a loan to the Ontario, Simcoe, and Huron Union*Railway Company, and for the securing the repayment of the said loan in 10 years with inter* est at the rate of 6 per cent per annum, payable, half yearly, the said company shall give to th«. City of Toronto, their bonds secured upon the said road, to the amount of such debentures from time to time issued to the said company on account of the said loan. On the 29th ot July 1812. The May- or communicated to the Council the expediency of confirming an offer which he had made to the con- tractors of the Ontario, Simcoe, and Huron Union Railway, in consequence of some difficulty which had presented itselfin the matter of the Directors, giving the City security upon the road, for the amount proposed to be advanced to the said direc- tors by the way of loan, and which offer the Mayor stated to have been in substance as follows:— " That the contractors should agree to relinquish the grant of £25,000 made by theJCouncil in aid of the said railroad, which said grant has been trans- ferred by the directors to the contractors, and that the divectgrs should leiieve the Council from the I V 1 I! m^^ Lib I t-f'l mi y 1 I I i (46) agreement to loan the company the Eum of /35,000 upoa certain security, upon condition that the council should take stock in the said road to the extent of Je50,000 paying therefor m deben- ture at the said time and in the same proportion as tha work progresses as it was agreed the said grant and Joan should be advanced^ to which the laid contractors had assented." Upon this com- munication the Council adopted the following re- solution:— ... 1 1 • r Whereas His Worship the Mayor, had inform- ed this Council that the Contractors of the Ontario, Simcoe, and Huron Union Railroad Company, have accepted a proposition made by him, subject to the approbation of this CouncilUn view of the difficulties which have existed in the execution of a mortgage bond, by way of security, for the loan or£35>,mu formerly voted by this Council, to the effect that the Contractors, shall surrender the grant ol i:25,00O made by the Council and transfered to such Contractors in part-payment of their Con- tract, and also, that the Directors shall waive the aforesaid loan of X35,000 altogether, or a condition, that in lieu thereof, the Council will take stock to the amount of £50,000, .to be paid by the issue ot City Debentures, in the same proportions as the above loan and grant were authorized to be issued. Be it therefore resolved that the Standing Com- mittee on finance and assessment be authorised to complete such an arrangement, prov)'led that no legal difficulty shall occur in carrying out this reso- lution, and provided also that no alteration shall take place in the conditions upon which a portion of the Market Block was granted to the said Com- pany, particularly with regard to carrying the Railroad to the Eastern limits of the City water lots. This resolution was communicated to the Board of Directors of the Ontario, Simcoe, and Huron, Union, Railroad Company, and to which the fallowing reply was received :— le Eum oi \ condition e said road r in deben* proportion ed the said > which the t this com- llowing re- had inform- the Ontario, ipany, have bject to the e difficulties a mortgage ^ ofi;35,()00 I the effect he grant of ransfered to ' their Con- I waive the a condition, ake stock to the issue ot" tions as the to be issued, nding Com- luthorised to i'led that no out this reso- eralion shall ch a portion lesaid Corn- carrying the J City water icaled to the Simcoe, and nd to which (47) Office of the Ontario. Simcoe, and Huron Railroad Union Company, Toronto, July 30th 1852, The Worshipful the Mayor of Toronto, SiH,— The Board of Directors have had under consideration a resolution ot the Council, passed on the 29th inst., relating to a proposed new arrange-* ment for the issue of debentures to the contractors, a minute of the Finance Committee thereon, and a letter from M. B. Storey & Co., stating their will- ingness to accept the propositions embodied in the resolution of the City Council, first mentioned, I now beg to send you a copy of a minute made by the directors of this Company m relation to the documents referred. Mesolvedf — *< That the Board of Directors agree to the proposed arrangement between the City Council, and M. B. Storey & Co , submitted m the resolution of the City Council of the 20th instant, without prejudice to the existing agreements be- tween the Council and the Board and the Con- tractors, in the event of the one proposed not being accomplished, and further without prejudice to the other parts of the said existing agreements which are not to be affected in any way by the substi- tution proposed for certain parts of those agree- ments," I am, &c., (Signed) WitHAM Sladden, Secretary* On the llih of October 1852, the following cer* tificale was laid before the Council;— Engioeers OfHce, of the Ontario, Simcoe, and Huron Union Railroad Company, Toronto, October 5th, 1852. I hereby certify that ] have ihis day granted to M. C, Storey, 4fe Co., a ceriificate for £4,923 cur- rency for work done, maierials furnished, and other expenditure under iheir contract for bailding the (48) Ont'irio, Simeon, and Huron Railroad, and that the total amounts of similar certificate's granted under eaid coniraci u» (his daie is JL 253, 170 currency, (Signed.) F. W, Cumberland, October Wih. 1852. Chief Engineer, Bonds releasing the city from all claims to the grant of £25,000, and the loan ot £35,000 %vere executed by the Ontario, Sinicoeand Huron Unioa Railway Company and the Contractors, with a ▼iew to carrying out thp resolutions of the Council of the 29ih July, and October 18th, 1852. A Bill passed the Council to authorize the Mayor to subscribe for £10,000 eharea in the Ontario, Simcoe and Huron Railway Company, In lieu of the said grants and loans. This Bill provides, That it shall and may be lawful for the Mayor of tb« said City of Toronto to subscribe for, or take, receive, and hold stock in the said Ontario, Simcoe end Huron Union Railroad Company, to the u- mount of £50,000 for, anc' on behalf of the said City of Toronto, and for the payment of the same, it ehall and may be lawful and it shall be the duty of the said Mayor for the time being of the said City to appropiiate so much and so many of the said de- bentures authorized to be isssed under the provis- ions of the Bye-law heieinbefore recited as may be requisite and necessary for that purpose and that the said debea;ures shall be issued by him for that purpose at the times and in the same proportions aa is provided by the Bye-law hereinbefore recited, subject however to the same condition relative to the passenger terminus of the said Railroad and the continuance of the said Railroad along Front Street and Palace Street as are contained in the recital of the said Bye-law and the Resolutions oi the Com* mon Council of the 29th of July and November let, J 852. The Council passed the Bill entitled *• An Act to provide for the issue of Jt 100,000 debenturea ta consolidate « part of the City deb(.'^ (49) id that the ted uuder rency, AND« Engineer. na to the 000 %vere ron Union ra, wiih a e Council I. :he Mayor i Ontario, in liett of /ides, ! Mayor of r, or lake, o, Simcoe to the tt- 5 said City ; game, it lie iuty of said City tie said de- he pro vis- as may be : and that m for that portions aa •e recited, relative to ad and the roni Street r recital of the Corn- ember lBf| «« An Act )eniures ta ih..Can the Mayor r>r any OlTloer of the City the credit of the City, i>r contrucf any debt on 4il use tiie crccuf oi me oity, i>r contrucf any „.. its hehilt wiihout the authority of a IJy-luvv of »he CouDcil, and the Corporation seal being ultaehed thereto'/— The credit of the City could nut be used without the authority of llie Council. ^ 5th. Are you aware of anv frsiuds or malversa- tion, or other illei^^al or im|)ioper act in connection with the issue or negoeiation of any d 'bemurea belonf»ini» to this ciiy, or within or under the con- trol ot any one or more of its ollicerd or membeis, as such oHicers or members ? — 1 arn not. (jih. (-an you inform ihecommiitee vvheth'r the credit of the city has been at any time used by any person or party, exeept in the fulfil tnent of the honest and honourable obligations coniracicd by the ciiy? — 1 cannot, 7th. Have you any order or minutes of Council directing the issue of the £7,000 on the 20ih of October? — lam not aware of any, except the au« thoriiy of the By-law passed on the^l8ih October. 8th, Is it necessary that the Mayor should have authority, either from the Council orC'cmmittee of Finmce, to issue Debentures? — The authority of the Council is necessary. J)th. Did you conceive that the By-lavi* passed on the Uith of October, confined thai aiuhcjiiy ?— - I did. 10th. Were you aware of the passage of the act toaulhorise the consolidation of the loan for thecify, on the lOthof Octoberf--! viras not that I can re- collect. ' Uth. Has the City subscribed for stock under ♦he terms of the City Consoii'iated Loan Fund Actr—^ I believe the city has not subscribed for stock bat that the Chamberlain has received scrip "r paid up stock in exchange for the Debentures fioin the Contractors, in pursuance of the letter of consent of the directors of the 30th of July, ^nd the bonds to the city by the Directors and Contractors of the 14ih of October. i* M^R^iSISE; Lib i' (50) The Clerk wag directed to rpqnf^?t the attendance of the Chamberlain, Joshua G. iJeard, E^q., late Chairman of the 13(»ard of Worki::; Samuel Thomp- son, Ksq., Chairman of the Siandiitg Committee on Finance and Ae^stssrnenis: and Dr. Beatty of the Oiiiario, Simcoe and Huron Railway Contractors. Adjourned until to-morrow, Friday, at 7 o'clock. Friday, February 11, 1853. Present — Aldermen Bell, Gowan ; Cotincillor Green. The Committee adjourned for want of a quorum until to-moirow, Saturday, at 3 o'clock, P. M. Saturday, February 12, 1853. Present — Aldermen Gooderham, Chairman, Bell, Deoison, Gowan ; Councillors Ayhfield, Green. Andrew Taylor McCord, Chamberlain, ex- amined — 1st. Are you the Chamberlain of the city, and how long have you held that office ? — Yes. I have held the oflice since the year 1834. 2iid. What aniount of ciiy Debentures have been sold or otherwise disposed of during the last two years? — £'}Ah,7Gl 12s. 4d. The Corporation do " not'orciinarily sell their Df^bentures in the common a<;cepianon of that worJ. I'he Debentures are pa'-d to Contractors and others at par, or for what «s (jpon the face ot the Dobenture. in some cases during the past year thU mode has been departed froitif and the lute Chaivmnn of the Board of Works, J. G. Beard, Esq,, has disposed of De- bentures for the coniraciors of Public Works, the proceeds of which w^ro depot^itcd with me and paid to the paid contractors upon the order of the Board ; ihe ouly other instance in which 1 can recollect of any departure from the usual mode of paying the debentures at par, was on account of the opening of Coibpine Street m 1851, when ^^''"^W^^"'*!*^^^^''*^*^ • .'S;«ai«.ie«ti¥*-i««!!K*. itendance ]^q., lute I 'I'homp- imiitee on tty of the I) tractors. 7 o'clock. , 1853. )o«ncillor I quorum P. M. , 1853. mqn,HeIl, Green. lain. ex- city, and -Yes. I have been e last two oration do e common itures are r for what ome cases I departed Board of ed of De- 'orks, the th me and der of the ich 1 can al mode of account of i51, when (51) several of the debentures for that purpose were sold at a discount of one per cent. \H'x annum. 3rd. To whom were ihey sold, and for what works particularly? — Tl>e principal part of the Bum iv«sued w-is to the following parlies : — Ontario and Huron Railroad Company .£oO,0()0; Toronto and Gueiph Railroad Company X40,000 ; loan to consolidate the city .^ehi £8:., 000 sterling, making in currency Xi)9,7(ir. 13^. 4d., Total, X189,766 13s. 4d., leaving a balance o( £29,000 19s. which were issued for sundry public works, via: £4,000 towards opening of Colborne tStrcet, from Church Street to Yonge Street, per act of Council passed 28th July, 1851; £l,7'-25 paid to the trustees of the Western Market when the building was made over to the Corporation ; £600 to discharge sundry claims for extra work at the St. I^awrence Hill and buildings ; £4,000 for sundry street improve- ni''nts; £8,000 on account of bill for issue of £13,150 on account o' improvements on streets,* £3,500, J. G. Reaid, Esquire, Chairman of the Boaid of School Tru.stces, lovvards buihling new school houses; £7,175 19s. to sundry parties, being the balance of debentures ordered to be is- sued fo4- constructing St. Lawrence Hall, Mar- kets, Ktc. Total, £29,000 19h. 4ih. What was the rate of discount in each case ? — Whole amount issued is 1851 and 1852, o€2lS,- 767 12s. 4d. Ontari(j and Huron Railroad Com- pany £50,000 issued at par ; Toronto and Gueiph Railroad Company £40,000 ; City debt at par £99,766 133. 4d.: opening Colborne Street, part issued at par, and part one per cent is allowed £4 000; Truste«^s Western iMarket £1,725 ; ex- tra wnrk at St. Lawrence Hall and Market at par £600 ; sundry street improvements £4,000 ; on account of 13.150 bills lor do. £8,000 ; £12,000, about £8,000 of this sum one per cent, per annum is allowed Joshua G. Reard, on account of build- ing school houses ; ot;3,500 isjued at par; sundry parties balance of debentures ordered to be isaue^ I 3} »««S*-a«!!K*. ffiiii [ ; K (52) for builJine St. Lawrence Hail and Market, &c. at pai"X"7,n5 19s. 5th. By whom are the debentures signed? — By the Mayor and Chamberlain. 6th. Had the Mayor any control over the deben- tures issued to the contractors of the Noriiiern Railroad, or over any other City debentures except signing them? — If the Mayor as the head of the Corporation chose to suspend the issue of deben- tures temporarily after signing them, \ would not issue them ; but in the issue of debentures to the contractors of the Northern Railroad, or any other debentures, the Mayor exercised no such control. 7lh. In the neaociation, sale or purchase of de- bentures, does the Mayor of the City, in his capa- city as Mayor, enjoy any advantage over any other citizen who may have the means, and who may feel disposed to purchase dybentures ?-— No advan- tage. 8th. At the time of the delivery of the deben- tures in aid of the Northern Railroad, were the finances of the City in such a position as to enable the City to purchase the debentures?— They were not. 9th. Could the credit cf the City ha used by any person or persons for any purpose wiihoui your knowledge? — The credit could not be used with- out the seal of the City which is in my kee|)ing, and therefore could not be used without my know- ledge. lOih. Was It used, or were the moneys of the City used to purchase the debentures issued to the Northern Railroad? — It was no? so used, nor were the moneys of tl.>e Cit; ^30 used, nor had the City any money to use for such a purpose. 11th. is the Upper Canada Bank the depository of the City funds? — Yes 12th. Who is responsible for the moneys therein deposited, and upon whose check or order can 'hey be drawn out? — I am alon'' responsible, and upon my check alone can the moneys be drawn out. ket, &c. ?d?— By e deben- Vorthern ia except id of the f deben- ouid not ?s to the ny other control, se of de- his capa- iny other ^ho may advan- e deben- were the to enable iey were d by any out your ed wiih- kee|)ing, y know- s of the ed to \he nor were the City ?pository s therein can I hey ind upon Out. (53) 13th. Does the Mayor of the City sign'tlw checks, or is it in his power to use or draw out the money? — The Mayor does not sign the checks, nor is it in his power to use or draw out the money^ 14th. Has the management of the City finance! during the incumbency of the present Mayor, tended to enhance the City creditor to depreciate and injure it! — The City finances during the in- cumbency of the present Mayor have been so ma- naged as to improve the credit of the City, and the additional security afforded by the new Municipal Act has had an advantageous influence. Previously ^0 that time, I believe the City debentures were often sold at a discount of 25 to 30 per cent. 15:h. Did Mr. Cawthra ask two per cent, for receiving the money which he had advanced uponi the security of (he City property? — Mr. Cnwthra holds £:30,OnO of City debentures which will itiot fall due till .Tanunry, 1854. With (he approval of the Mayor, i offered Mr. Cawthra first one and then one and a half per cent, premium, to allow the Ciiy to retire the debentures at once, Mr. C afked two percent., the Bank of Upper Canada offered to allow 4| per cent, upon the said J;>20,060. and the Finance Committee directed the money to remf'n there at that rate of interest, thereby saving to the City one-half per cent, or that sum. IGth. What has been the average rate of dis- count upon the City debentures for the last two yenrs? — The average rate of discount upon deben- ture? dispos'^d of by the Board of Works was 1 pet cent fo*- each year the debentures had to run thatiis 20 percent for 20 years, t!ie debentures as issued were paid over to Contractors for the Public Worka by t!)e city at par; I have not any knowledge of how they were sohl in the Market btjt believe it to be a fiimilir rate of discount to tha above. Th'^ deben- turcB issued for the ei''Ctioa of a School Flouse in the city were disposed hy the Trustees after having been adyertiscd at from eev-en-litlhs to one perces^ (54) U li J pernnnnm. The ]oan of XIOO»000 latceffectea Ihrouyh the Bank of Upper Canada was at par and considered to be ihe most favorable operation lor the city credit thtst could be effected in ihia cotmlry. 17tii. When did you first is.sue debentures lor the Nonheri. Railroad ?— On tlieSlst July, 1852. 18th. What did you do with Ihem?— Lodged iheni in the Batik of Upper Canada. 19(h. Before taking these debentures to the Bank had you previously been tn the habij r»f laking d'^bentures there' for parties to whom they belong- ed ?— I was not in the habit oflodging debentures III the Bank for patties to whom they beh)nj?ed tho!?0 entitled to receive city debentures generally were Contractors for Public Works who called for ihem at the offices, in this case the sum being a very large one and having leen particularly re» .quested both in writini! and verbally by the Con- tractors to lodge them in the B^nk) I could see uo objection to doing so. 20th. After these debentures were left by you at the Bank, could not the Mayor or any other party have made use of them with the consent of the Contractors fur the purpose of raising money there- on ?— Thai entirely depends upon the arrange- ments made by the Contractors with the Bank, if they were bona fide sold to the Bank or if the Bank had made a large advance upon ihem, such could Rot have been done ; if ibey were merely lodged (or safe keeping, the Contractors or any other party acting under their authority could do what they pleased with them. 21st. Would ihe leavingof ihe debenturesin the Bank be inconsistent with a previous arrana^'nienl to raise money upon the same through the agency of the Mayor 7 — The debentures were solely the property of the Contractors and ifihe-y were merely lodged in the J]ank there could he no inconsistency in ilteir pfirt in disposing t f th>fn through any agency lUey pleased to employ: llieie was no pre- C()aceried or any other kind of arrangement bt:- » .1 (55) i effecied t par and aii(»n lor cotmiry. es i'or ihe 852. -Lodged the Bank )f Saktng f belong- 'beniurea be)oni?ed generally sailed lor being a ilarly re- he Cou- ld see uo by you at ler party tt of the ey there- arrange- Bajik, if the Bank bentures '?— f think that the Finance Committee have made minutes approving of the i«sne of all those deben- tures except the se deben- ed to, and >t done in w of the eir issue, )r to issue the law of you have were ille- issue any to do S.O. the city e city re- did the 0,000 ?— ;t only on ^ 1853 at ? daily in o be paid ly has in sum is to [uence of not being at a pre- y stated, Dcr cent., i for the I purpose of paying debentures and city notes which are called in and which are daily being presented at the coiniter. Tlie greatest pari, if not the whole of this balance will be drawn out iive months irom this, date. I do not know that any banking institution would be willing to give interest on this fluctuating balance for so short a period. I am therefore of opinion that ail the city can be said to lose at present is one and a-half per cent on the £20,000 which could not be avoided ; it will be about 16s. 4d. ^ per day. 33rd. What rate will have to be levied upon the citizens to make up a sum sufficient to pay the int'^rest ypon the whole £lO0,O0O, and what will be required to make up the interest upon that sum that will be lost to the city 1 — To pay the interest on £100,000 will require an assessed rate ot 7d, in the pound ; to pay the loss of interest on lhe£2o,000 wiU require about tj of a penny in the pound. 34th. Have you read the section of the act of 7th October, which gives the Mayor power to issue debentures in such sums as the council shall direct ; have you read the 5th section? after read- ing this section will you state what you consider was your duty thereunder '^— I have read those clauses, in the 5th "section ; I wasdirected with the consent of the holders thereof to call in such de- bentures of the said city of Toronto as may have heretofore been issued under any bye-law of the common council of the said city, and taken in pay- ment of such stock, and to substitute therelor so much of the funds on account ot the debentures to be issued under the act as may be necessary for that purpose." 35th. Do you consider the £7000 as legally issued or exchanged ]— I am rather doubtful as to their strict legality, but there is no doubt as to the liability of the corporation lor this payment having received value therefor; I am not suffi- ciently learned in tiie law to give a legal opinion thereon ; the issue of £7000 has since been paid. I 1^ (58) ?■: 1 36th. Do you know who it was that rectived ihe discount of X'tO,000» said to have been rea- lised by some persons in the charge of ihe debeij- turos? — 1 do not. 37'h. After the City debentures lefi your hands could Mof the Mayor or ony other person with ihe consent of the contractors have used them to raise money thereon ?— See my answer to quesiicn No. 38th, If an arrangement had previously been made between the Mayor and the contracMra, that the illegal debentures should be deposited in the Bank in order to raise the money the contractors Offreed to lake, has any thing inconsistent with euch asreement taken place ? — I do not know of Bny such arrangement. 39th. Do you know what sum the contraciors did receive ? — No. 4()ih. Has the City ever as yet tnken stock or purchased stock from the Northern Railroad Com- pany?— The City has purchased 10,000 shares ia the stock of the Northern flailroad Company. 41st. Do you know who it was that first started the question of the illegality of such debentures 7— I do not. 49nd. Was such a question started before you made the first deposit thereof in the Bank ?— Yes, 43rd. Dnrinw the period that you have held the office of Chamberlain, did you ever before issue debentuies illegally, or were you ever before called upon to do so ?-««No. 44di. }( legal debentures could have been sold in New York at par at the time the illegal issue wa3 made, has that issue had the effect of depre- ciating iheCity credit if they were sold as stated at 20 percent, discount?—! am not aware that any of the City debentures were offered in the New York market. 1 know thit the contractors were so anx'oiJS to receive those deJ^entures, ihut they were •.vijling to assume ail the responsibility or informality attending their icssuej if they were sold been rea- he debetf our hands 1 with ihe m lo raise siicn No. usiy been !ir»r8, ihat ed in the Dntractors tent with know of }ntrac!or8 stock or 3ad Corn- shares ia lany. St started ilures?— 'fore you : ?— Yes. heM the ore issue )ie called )et'n sold !jsal issue of depre- stafed at that any the New ors were hut they .)iiity or vere sold (59) at par in New York insfead of 20 percent, dis- count in Toronto, the effect would raiher have been to have raised the City credit, as U}> lo thtit period the Didmary discount was 20 per cent. here. 45ih. If it is true that some person obtained the i'SO.OUO illegal debentures fur Ji::40,00a, when by issuing legal debentures you could have disposed of iheni at par, how do you make it appear that the credit oj the City has been enhanced by sueh a transaction ?~I am of opinion that the same parly who purchased the deheniures from the contractors was the same who treated with the City for the jt'lOO.OOO loan, the Corporation was bound to use i;50,000 of said loan to take up the £50, 000 bonds issued to the contractors, and if the Corporation after issuing £50,000 of new debentures, to replace those paid to liie contractors, had to treat with other capitalists for the remaining £50,000, I feel satisfied it would not have been done at par. 46th. Is it or not true that the City is now pay- ing 1'2 per ct-nt. on a portion of its debt, and if so, has it not been caused by the issue of the £100,000 debentures, ]|coupled with the refusal of the City creditors to take their dehts before due ?— See my answer to question No. 32, 47th. Before said £100,000 wert; issued, were said creditors ever consulted as to whether they would receive their pay or not ?-— See my answer lo question No, 24. 48th. Do you know that the Mayor on that oc- casion became obligated or agreed to furnish the contractors lor the Nor'hern Railroad, seven or any other number ot debenlureg if they should there- after be required ? — 1 do not, all 1 know is that M. C. Storey &, Co. wrote a note to me on the 27th September, to lodge all the debentures in the Bank of Upper Canada, excepting 10 of £250 each, amonntin^ to £2.500. 49ih. Can you inforn^the committer, what in* terest the Mayor had thai caused him to make this arrangement, and why ti was necessary that these if I f: Lit .' it 'i •,(' (60) deh^ntuff 9 BhmW he left in th« R.nk instead of brinff dflivered to then.mtra.tor?,,f it weredoubf- l*/I whcihtr xhey %vouM be requirfd or not ?--I do not know wlvit infcrosi ihe Mayor had, nor do I Kn«»w of nny such arraufiemenr. smb. What aaiount .>f d-bei»rur^8 hnvt- beea is. «ued to (he GuelpU HaihoHd, under what tho- rny, and what has hf en do.re with them, to whom w.rt^^ihey deUvered. and how ha« that road become passed 1st December. 1851 ;~-paid and delivered o the Secretary of the Company. The Corpora- tion are tii the same position as any other munici. pality, eniitled to pay tor their stock when call 1 ior* 5Ist. Were yoii ever made aware that the con- tractors of t^ie Northern Road had agreed to dig. pose «t the debeniwres of the City of Toronto to « v^nd. Had you any conversation, or did vou have any conversation with a professiorm} aenije- inan who came from New York to examute tha Ciebeniures and the legality thereof ?-.No. ."iAtd. Did you ofl^r the British America Insar- ance Company any of the dehemures for the claim of that Company on the City ?— -No. .-34th. Has the company reftised to receive thtf cash lhe,5e oebenttires produced ?-^Upon the first t^rllTr '^''S^^P^^y ^'^fnsed ; they havesince agieed to receive pay.rient, and I have paid the m^ r^^'^ <^^ the debentures hold by the com- l.ai(K]o{ debentures to the Coniraotora that vou 'Vvere not obeying the Act of the Province of 7,h .K ! '*'': 7 "^'i' ?' ^^^ '^^ ^^y^"- Jnrormed you ha «uch Aethad been parsed?-! was informed by Jhe Mayor ihat the Act had pa^^sed, bnt did not receive a c^^rtitied copy rf the Rjl!. sn p« to »>- niade acquainted with its provisions until aom« days after the eaid £7000 debentures were issued tnstrad of t nor do I Vi' bee a is» lat autho- » tii whom ad become ? Council delivered Co/pora- r rminici- len call I the con- ed to dig. onto fo t ?~No. ' did you *' senile* mine tho > 'a Insur- he claim the first ive since paid the he com- the last that yoa 2 of 7ih led yoti n formed did not iS to he il aorae issued, (61) and was not aware ihat their issue wasittconsisieni fviih ihesaid Act, 56ih. When did the Committee of Finnnce accept the oiler of Mr, Kidoui lo loan this £ i 00,000; was ihiit loan tukcu rt par. or did the city pay a di^'^couni therelor?~-Oa Ociober the J 1th, ihe auhject was brought under ihe notice of the com- rnitu-e* and the comnuitee decided to recommend it favourably to the Council. The loun waa taken ai par. i)7ih. Did you issue the debentures to the con- tractors lor the Nortlu-rn Road in one sum or »!* various sums, and ai what times ; and .state ihe amount at each iimf?-.The debeniurea were issued as loUows, J 852 : July Si, paid • • . 31, «* - - . «« - . . «• - - . •• . . . " - . . Aug. 3, " 31, Sept.30, Oct. 19, £10.000 5.000 10,000 13,000 5.000 7,000 £50,000 ^ 58th. Did you invariably deposit these debentures jn the Bank, and was the Mayor always a pnriy to the issue, by sigr.injj the debentures, and being aware that they would be left in the bank?— .'So liar as J can recollect, they were all deposited io the Bank. The iVlayor signed all debentures, and I believe was aware that they would be left in the Bank, I believe I asked him the question if he saw any objection to my doing so. 59ih. Do you know that the last issue of deben- tures referred to in your last answer took place f»n Ihe 20th October, and are you aware that these were left in the Hank ?-.The debeniurea were closed the 19ih of October, and deposited either oa that or the following d;iy, 60th. Did the Briilsh America liiBitranfp Cofi3= pany at any time purchase debentures ot' this city, and if so to what amount ?— On the 1st January, 1 Lib i\t u (62) 1844, the British America Insurance Company purchased debentures to the an:iouiit of £10,000. 6lBt. Have the debentures so purchased by the said company been since redeemed and taken up by the corporaiion ?— £7,G00 have been paid. The bahince» 1 understand, the Company will take tip within a few days. Alderman T, Hutchison exnmined. Isi. Have you obtained any knowledge that the contractors of the Ontario, SimcoeA^ Huron Rail- road received only £40,000 for the railroad stock they lianded over to the city, anr having red to ia (63) your answer to question No. 2?— I decline for the snme reaeoii jjivea to qufstion No, 5. 9ih. Have you b^i'n lfg;\lly ndvised by any per- son to wiicit queaiion you «huuld answer befure the committee?— I have not. lOih. For what reason do you s»ate In nnpiverto question No. 4 that the city is i-ntiiled to receive the discount at which the contractors sold the de- benturea?— Because I think that ihvre wu^ more paid for the stotk than il was *vorih. llth. U the eiock was at a nominal va!u'» above its real worth, how would that circumstanc*? secure to the cityihe difference, if any ?— Bt-cauac the city bought from thts coniracJors inaiead of from the direciors. I2th. Then you are of opinion thai the pui chase of the stock from the conirncJors instead «»f from the directors mad^ the difference in the vpJue of the stock itself?— -I am, so far 13 »h city cl-um to the difference is concerned. 13ih. How could the city have a claim to differ- ence, if any, to which it was no party I—The city boaghi th« stock from the contractors, and I be- lieve the city was so far a party as that its credit was used to raise the £40«00(). 14th. What reason have you for saying thfit the city credit was used to raise the £40,01)0, by which the debentures were purchased ?— If the Mayor used his influence as Mayor with the Bank, then the credit of the city was employed. 15th. Do you know thai he did so uae it ?— 1 have been told 60. IGth. Bv whom were you told so?— [ decline 8tatin!| for the same reason aa given to nuestion No. 5. 17th. If the city credit on illegal debentures either directly or indirectly, produced thefui^ds to purchase the laflroad stock, to whom, in your opinion, would the £10,000 belonsr f— I should ihinK thn ii belonged to the city, if negotiated by the Mayor. t (64) 1-J tij L 18ui. Was it not in lieu of the £25,000 grant, and £M:),()00 loan, that the £50.000 stock waa taken by llie city, and was not the City Council nec.sHiiry to the exchange ?— I think it was. lOih. Were yon a member oi' ibe Sinndin« Committee on Finanee and Assessment, and did you iipfirove of the exchange by which the £50,000 stock was to be taken from the contracttira ?— I was a member, and was present and approved ; but 1 thought that it was a purchase Ironi the company w-iih whom the original arrangement Wf'S made. . , 20ih. Could the exchange have been made with- out the consent of the directors?—! do not know. The Clerk vvas diiccletl to recjiK'st llio at- temlance ot William Cawtlira, Esq., Thomas G. Kidout, Es(j., and James Coltoi), Esq., on Tuesday next, at 3 o'clock. Adjourned till Tuesday, the 15tli instant, at 3 o'clock. ^3. Tuesday, 15th February, 185 The Committee met— Present, Aldevmoji Gooderbam, Bell, Denison, (iowan ; Councii- jors Ashiield, Green, iVIacdonald. Thomas G. Ridout, Cashier of Bank of Upper Canada, examined. 1st. Did >ou make a tender on behalf of any person or persons tor the purchase of £100,000 of the debentures of this city ? —Yes. 2nd. Did that purchase include the £50,000 issued to the Contractors of the Outario, Simcoe & Huron Railroad ? — The ii.ink in offerinji lor die £100,000, understood that the city should take back the £50,000 issued to the Contractors of the Ontario, Simcoe and Huron Rs^ilroad in part pay- ment of the pavnienl of the new loan of .£100, 000, and receive uabh for the balance. (G5) 100 grant, took wa8 y Council vas. SmndiDj? , and did R £50,000 ct«irs ? — I ipproved ; Ironi the angement lade vvith- not know. >[ llio at- Tlornas Esq., on astant, at ,ry, 1853. ildeviricji Co Line il- of Upper lalf of any 100.000 of £50,000 Simcoe & nil lor I he louid take tors of tliQ 1 part pay- £iUO,000, 3rd. Was the Mayor or any other member of the Coiineil, the party or parties who purchased the aaid deheatures ? — No ; they were not. 4ih. Hid the IVI^yor of the city any other con- nection with the purchase of the said debentures, than what properly beh)nj?ed to him in his otficial capacity as Mayor ? — No more thin that he was the person who introduced M. C. Story & Co. to the Bank, and said the debentures would be issued as fast as they could be got ready. 1 think this was in July last. 5th. Are you awards of the rate of discount at which the debentures of the city hive usually been eolfj, — and if so pleas'^ state it? — I think frorn 2Q to 25 per cent, discount. 6th. Dj you consi i'r the arranffeme.it made by the Mayor, in pursuance of your tender to take the £i00,000at par, was beneficial or otherwise to the city ? — I think it was very benefi^nal ; it !?ur- prbed me that such aa amount could be raised at par. 7th. Will you please to inform the committee whether the parly on who^e behalf you made the tender vvas the same that purchased the £50.000, the properly of the Ontario, Siincoe and Hurc-. Raiiroid Contraciors, — mJ if so, whether the profit realised on the £50,000 debentures was an inducement to the purchase of £100,000 at par? — It was parties in Kngland who transacted ihe busi- ness, and I d ) not know if they were tiie same. 8th. At what rate were the debentures for £50.000 purchased, tind by whom ? — 20 per cent, discount, by the Bank. Agents for other parlies. Otii. Wno was the party who purchased the de- bentures, and who realiZf^d the £10,000 \hereoti? — I decline to state who were the parlies. I do not know who realized the profits. 10th. Did the Bank realize anything beyond the ordinary charge for comnission on the £50 000 ? —The Bank got commission and other ordinary charges. E . \ M J ■ i -! (66) 11th. Wlio owned the debentures that were lu the I3ank before the issue under the ConsorHiatioii Act, that is to gay the £50.000 stock issue ; on whose behalf did the Bault advanee the £40,000 ; to whom was the £40,()0t^ oharijed ? — 'i'he Bank gave creiiit to M.C.Story ScCo lor ilie 80 percent, as the debentures were lodged in th'' Batik, and as the Bank advanced the money, bills were drawn on London for the amount. 12!h. By whom were the bills drawn on Lon- don ? — 1 decline io tell ; it was not the Mayor a: any rate. 13th. When were you instructed to oil^^r a loan of £100,000 to the city at par, and by whom ; you say in your letters yon have been authorized by a friend on behalf of parties in England ; who was the person you alluded to as your friend? — I de- cline to answer ; certainly no one in this city. 14th. To whom did you send the debentures you received from the Chamberlain, under the Consolidatioi Loan Act ? — To a banker in Lon- don. 15th. Was the Mayor one of the parties whom you declined to name, and to whom you referred in your reply to question No. 5? — No j he was nor. 16th. Was the £40,000 which you paid to the Contractors of the Ontario, Simcoe and Huron Railroad, charged by you against Mess^rt:. Master- man & Co. of London ? — No ; it was not. 17th. Did you advance the money (£40,000) in pursuance of a^previous arrangement entered into, between the Contractors of the Ontario, Simcoe and Huron Railroad and the party on whose be- half the Bank acted as agents? — I understood so. 18th. Can you tell this committee wiili whom the previous arrangements were made? — I cannot. You had better Ksk the contractors. William Cawthra, Esq., examined 1st. Have you at any time, either on your own account or on the part of oihcr3, purchased debeu" tures of this city? — Yes. » lat were lu usorHiatiou issue ; on £40,000 ; 'i'lie Bank iO percent, itik, and as i^ere drawn n on Lon- ! Mayor a: fr?r a loan vhoin ; you irized by a ; who was nd?—l de- is city, debentures under the er in Lon- nies whom ou referred J he was paid to the md Huron rti. Master- lot. ;40,000) in itered into, [o, Simcoe whose be- rstood so. villi whom — 1 cannot. your own aC'd deb en- (67) 2nd. What was the amount you purchased, and what what was the rite of discount in each case ? — I could not tell the amount. I think that the high- est rate of discoiint Vv'a:? as hii^h a:: 3l)s. per cent.; soi'ue i have bought at h per cenr , for a ^hort p^-rioj. 3rd. Had tlie contractors noi sohl the £50,000 debentures what would be the hi|J:he.st amount you wouhl i)e willing now to give for them ? — I thinl; I would have been willing to have given £44,00(1 or £455i'00, which is the itighest yum 1 would have been willing to give for ihem iiad they been offered to me. 4ih. If t^p Ontario, Simcoe &. Huron Railroad contractors sold the dehentures of the city havin*/ 20 years to run, at an averaii;e rale of (Jiscount of 1 per cent, per annum, or 20 per cent, on tlie full period, would you consider such sales below the ordinary mirket value? — Yes, I should, a'? 1 think the school liebeiitures were sold at a less discount. 5ih. Is Alderman John Bell your law agent ? — Yes, he is my solicitor. ()!h. Did Alderman John Bell, aa your solicitor, advise you to demand from the city 2 per cent- for rfceiving your money due you ui>'^'i the city secu- rities which you held ? — 1 cont»ider iiiis an impro- per question, and will not answer it. 7th. Did you state to any person he had so ad- vised you i — 1 dL^clioe to slate. 8th. Did you propos.- to renew your loan to the city at par, and to whom did you make that pro- posal? — I did. 1 ihii'U, to Alderman Thompson and to Councillor Ilom;)in. I meant on the same security. 9th. Were you solicited to take consolidated debenturea of this city i"or the {amount due to you, nnd by '.vhoin and whin were you so advised ? — I was recomnirnded to do so by Mr. Hincks, I think ia the iall <;f list year, and 1 uiidrr3;and that they were dcbt^niwres of this city guaranteed by the Government. The debentures Mr. Ilincks recom- mended Hie to take were not the ordinary deben- (68) tures of the city, and not the ratlroad debentures, certainly. 10th. Did Mr. Hinckg t»ll you at whose request ha made this recornm'^nd.nion?—.! cannot Pay, h.ut the Charnberlaiji teUs rne it was at l!»ft T'-queat of tlie Mayor, and that ht^ had written to the hi- epecior General on tiie subject, and I am inclined to think that Mr. Hincks made use of the Mayor's name, which goes to confirm the Chaiiiberlaia'a filaternent. Alderman Thoffipson, Chairman of Standing Committee on Finance and Assessment, exa- mined. l8t. Are you Chairman of the Standing Com- mittee on Finance and Assessment, and how long have you held that office? — I am Chairman of the Committee, anj have held this office during the past thirteen monihs. 2(id. Were the members of the Finance Coin- mittee'^consulted upon the subject of the issue of the £50,000 debentures to the contractors of the Ontario, Simco:^ and Huron RailroaJ ? — Tl." members of the Committee were regularly notified of the meetin2;3 ofthi.s Committee. Nothina: wag done without the presence of a quorum and the consent of a majority of the CommiM.ee. The proceedings of the Committee were reuularly en- tered upon the Minutes, wiiich were always read to the mpmb(?rs present before bring signed by me. 3rd. Did the contractors ur^ie upon the membera of the Comtnittt'e the immediate issue of ihw de- bentures, and was it at their instance and request they were so issued ? — A doubt havinsr been sug- gested by a member of the Council, I think tlie Hon. T, H. Cameron, of the rijjht of ihe Council under ' c Act specially passed to enable to city to fiid the Ontario, Simcoeand Huron Railroad Com- pany, by the issue of dei'eniures, to issue tbo^e debentures without three months' previoa? adver- tisement of the By-Law, acertrding to the re- quirements of the Municipal Corporations Act, 1 ebentures, se request )t Pay, }jut i« T'- quest to the Ju- n inclined e Maj'or*3 iiberlai n*a Standing icnt, exa- [Ini* Coni- hovv long nan of the luring the ncn Cnm- B issue of ors of Hie i:l ?— Tl.- ]y notified thin 2: was m and the lee. Tiitt niarlj' en- ways read ed by me. nit'iiih'^ra )f th« de- id i-f'qiiost boen sug- ihink file f! Council to any to oad CorH- !9ue tfio,-e )Lis adver- the re- ns Act, 1 (09) was authnrJeed by Minute of the Finance Coni- iiiittf'e of June 93rd, No. 52, to obtain the opinion of Mtssis. Mowai 6i. lla^urty upon the point. They agreed iu opinion ihai the Special Act waa so far overridden by the Generid Act, that not only was three months* advertisement required, but that the By-Law would be invalid without the provi* eiona of a Sinking Fund of live per cent, to redeem the debentures within twenty years. Pursuant to Minute of the Committer of June 25th, and ai the urgent request of the President of the Ontario, Siin- coe and hluron Railroad, I had an interview with the Directors ai their Ijoard-room, where I found one or more of the contractors, aiid a gentiemaii who was introduced to nie as their solieitor from Mew York. The Dirt'Ctors and Contractors begged me to urge upon the Finance Committee and the City Coni'.cil to consent to ihe immediate passage of a 13y»Law for the issue of debentures under the Special Act. in order to save the contractors from serious loss, v*hich they would be entill^'d to recover from the Rfiilroad Company. I stated plainly the legal difficulty that had arisen unex- pectedly, and my own opinion that as such ditli- culty was entirely owing to the contradictory wording of two Acts of Parliament, It was a mat- ter which the Parliament itself would speedily rectify ; that the City Council was not to blame, and would not be liktdy to consent to bear anv risk in consequence ; that if they f the Directors and ContraetoraJ were willing to bear the risk of any loss which might arise from the depreciation of the debenlutes, in consequence of their being is.sued under a By-Law passed under sueh circum- stances, i would represent tlieir wishes to the Finance Cornmiilee and the City Council. The Direct i'rs present stated that ihey were advised by OS (I thinks Joseph C. Morrison, Kfq., who, I be- lieve, was then present, that the P»y-Lcivv would be perfectly good if passed under the Special Act, One of the contractors and their solicitor stated •'Is i SxJ^f- «■ v^ (70) iheir perfect patisfaction wiih such a By-Law, and their readiners to assum*? the whole risk. The contractor furth^T stuecl that be believed the de- bentures to h« worih the fact? of them, and ho would take no less — and that he was entirely as- sured thfjt if the debeotures were ille passage of minute of jr. Beard, ) issue the ihey were Engineer, ^ary secu- ?d by the ihem, us tinpleif'd, cility was ee to the nily done, rn port a nee £50,000, what waa ve to the applied to he 28th of that date ommittee, was their )perly ne- ; price or nd voluu- upon tho ! received ut, Esq., he Corn- jrized the )n to that of 3 ]rna ^^benlurea falling »?U(» on the lat of January, 1P54, amounting to £30,000, as well as the fmall notes in circula- tion, and some other accruing liabilities of the same kinc' A draft ot an aciofParliament for thai purpose was prrpaied by the city folicitor pur- suant to minu'e oi the Finance Conunitlee of June 9ih, and was approved by the city rouncil and transmittf by the city cb^rk, to W, H. Bouhcu, Esq., M.F.P., with a rf quest to tnke charge of its passage through the legislature. On the 23rd of August, some proceedings took place in the city Council on the subject of which I beg leave to hand in the report extractt^d 'rom the Puiriot news- paper publi£he(' a day or two subspquently. •♦Certificate No. 5, fr< m the Engineers of the •* Ontario, Simcue and Huron Railroiul, certifying ♦* that M. C. Storey & Co., had under their con- •• tracts done work to the amount of £165,000." CITY DLBEMUKKS. »• The Mayor stated that when in Montreal he •• had had an interview with the Solicitor Gene- •* ral, and he was led to believe that theGoverti- ••ment would sanction any biL jcbmitted by this «« Council to Parliament for issuing £100,000 de- •* beniures to provide for the payment of the •* £50,000 to be taken in the Ontario, Simcte and •* Huron Railroad, aa well as lor »he sum of •' £50,000 itquired to pay ofithe outstanding city «♦ Dotes, and the debentures falling due within the •* next few years. He r^-commertded that imme* »• diate steps should be taken to piopose a petition •• and bill. Accordingly Alderman Thompson *• moved that die communication of the Engineers «• oi the Ontario, Simcoe and Huron Railroad, •• certifyingto the expendituieof £165,000, forihe «• Railroad be referred to the Finimce Committetf, • » with power to order a further issue of deben- •< lures in proportion thereto. *• Alderman Sheard opposed t • resolution, *• The resolution wad ihea put and carried by a •* majority of eeveo. I 1 liMf Lib /' I ••Alderman Thompson th^n moved, fiecondcd by *• AMerman Dempsey, (liai tlie Finance C<)tiimitt*ie •*b'3 autliofisvd to preparft a petition and drafi of •»bill to ha submitted lo Parliameul legalizing the •• issue of £100.00!) debentures, oae-h^lffor tiie *• p'ircnape of stock in the Ontario, Siincoe and ••Huron Railroad acrcording to agreenjeiit, and •• the other half lo forai a fund for conaolidaiiag •* che city debt. ** After a few remarks from His Worship the •« Mayor, in explanation of the subject of the re- ** solution, it was carried unanimously.** Mor« tlian one l«iier was received by the Cashier of the Bank of Upper Cfinada on ihe 8ubj<'Cl of thft Toronto Debentures, In reply to one received, aa I understood from the houae of Gtynn &. Co., of which the Fia*ince Com- mittee were verbally notified, aslvin» what commission and diacount ih^ corporation would allow, the c -inmitiee consented to a charge of one per cent, commission, but de- clined to make any arrangements recognising a discount. Thia wav* nor accepted as the com- mittee understo 1. 0!Hh^29rhof Sejilember, a letter was received by the committee from T. G. Ridout, Esq., strtting thn he was empowered by parties in London to oir-rT the city a loan of £100,000 currency, free of commissionship. on condition that the £50,000 debentures issut^d to the Ontario, Simcoe &. Huron Railroad contrac- tors should be taken in part payment thereof. This offer the committee, by minute of llth October (present [Messrs. J. G. Beard, Sneard, Bowes, and myselfj reeo!nm''nd^d to the Council for accpptancp. On th'? same dav, an offer re- cpjvf^d throngli Messrs. Cniwford «Si llagnriy, of £-2o.000, was de.'^Iined Til'" Mriyor, on his re- turn from Q,u<'hec, liad stated to the comtnittit'e that Mr. Hiiicks or Mr. Ross, on behalf of the EseeuiivQ Gavcrnmeai had refused to sanction a Hiii to legalize the £50,000 debentures already «! r i 1 idcd by nmitt**e drafi of irig (he for llie :oe and [It, and idaiiag hip ihe ihe re- by xha oa littf 1 reply J houae I Com- ; what )oration i to a >ut de- ising a e com* nber, a T. G. ^red hy loan of ■iliip. on sut:'d to ;outr3c« thereof, of llth Sneard, Council )ff;.'r re^- ^;iriy, of I his re- nifnittit'e of the letion s I already (75) issued'for the Ontario, Simcoeand Huron Railroad, unless accompanied by a sinkintj fuud, but had otFe ed 10 incorpoiaie the amount in the Bill already before ilie ilou.se, and at his (the Mayor*a) urgent entreaty, had consented to redeem tho sinking fund from 5 to 2 per cent, per annum, being a less annual charge upon the rote-payera of the city for Jhe w^ole ^100,000 than was pre- viously included in the Bill as approved by the Council for the £50,000 only. The Finance Committee, conceiving that the city finances were in every way benefiued by these arrange- ments, gladly assented. The offer made through the Cashier of the Bnnk of Upper Canada was considered and ap- proved of in full (Jouiicil on the same evening, and the arrangement closed. 5th. Has the management of the city finances during the incumbency of the present Mayor, tend- ed to enhance or depreciate the^ city credit ?— That the financial position of the city has immense- ly improved during the present Mayor's tenure of office 19 undeniable ; how far his Worship has contributed to its improvement, is, of course a mat- ter of opinion. For the last three years, the Fi- nance Committee had been unanimous in the deter- mination to redeem the city credit from the dis- graceful condition in which they found it. Deben- tures overdue, interest unprovided for, credit obtained at 25 or 30 per cent, sacrificed, — were matters of weekly occurrence. The bank would scarcely afford the Council the ordinary accommo- dation granted to merchfiuts. All ihis is changed. Doubtless the improved s^tiite of our provincial credit, aiH th** prudent reairaints imposed upon municiprilities have done rnncii tosvnrds this change hut in my opinion, the ciiy of Toronto owes a great part of its financial superiority over the other municipalities in Canada to his worship the present B4ayor. Fur obtaining a recognifion oi iha prin- ciple of a reduction of the sinking fund on muni- i!f Life ■ ^i i. I'ff ¥■ ' I ^f : .^t 'Mr n Ik (76) cipal bonffa from 5 to 2 per Cf nl , an inf sfimable nd- vanfflge, the w!iOu; i rovincp is his debtor. The city ot Toronto is solely indebied to him for pereevcr- insly drawing the aifeniion of London capitalists i« the iiitrii)sic value of our Municipal securities. To his personul interference, ns I believe, the city vas also indebted for larjze money acconimpdaflon from the Bank of tpner Canada, on many impor- tant occasions. I niiiiht mention numerous instan- ces where to my own knowledge, ihc Mayor has laboured for the establiFhmeni of our civic credit ; and if three years of efficient and zealous exertions for the financial prosperity of the city can be ap- preciated, then, in my opinion at least, no man is better entitled to claim honor in that behalf than the present Mayor of the city. 6. Did you submit Mr. Cawihra'sofTers torenew his loan to the council ?— It was not suhmitied to the council. I did to fhe finance committee. It was not a formal ofler, but a mere conversation unaccompanied by any conditions. I added that it was not considered as favourable ns the rffer for another loan which the Conimitiee had had under considetation for sf me months. 7. After the leiral opinions you received, did you, as Chairman of the StandinpCommitteeon Finance and Assessment continue to recommend the issue of the debentitres said to be illegal ? — 1 he bill au- Ihotizing the issue was passed after the opinions were given. In my iiulividual cnpneity, 1 made no recommendation on the euhjeci; as the organ of the Committee, I did. 8. Were the debentures Issued after the opinions were receive*^ ?— -Yes. 9. Do you know who got the amount of £10,000, or any part thereof, realiz.-d by the sale of the £50,000 debentures issued illegally? — I have stated already that I did not know anything, publicly or privately, of any discount having been received bv any one. The Clerk was directed to ask the attendance 'J'hcciiy ereever* ipitalisis the city nodation y impor- s instan* ayor has : credit ; 'xertions ) be ap« > man is laif ihan to renew mitted fo lee. It ^ersalion !d that it rffer for ad under did you, Finance he issue ! bill au» opinions made no 3rgan of opinions :io,ooo, ? of the i^e Ffated blicly or ?ived bv * indance (77) of J. IT. Hns^Rrty, C. E. Romain, James Bestty, J;imca Crowther, \Vm. Sladdqrs. li, 1853. ncn Uocd- in ; Couri- io, Siinroe I am. f Ihis citv, jf th** city )!' iLu saiil uticipated any other amount '?— I dkl not mention it to Mr, Mdler ; as of luv own knowlcdi^e, I may have repeated it lo Mr. Mijler as a matter of conrfsnou nanour, and 1 have no knov\!cdi',c oi'^iieh nuiilvr a.s a iliiector. 3id. In iaet d'j yi.-u know thai luc^Mayordid piivlicipate in any prolil on such sale or negotia- tion l — I do not, •Ith. .Do you know that a len^al gentleman came on iVom New Y<.)ik to p;a'chase or enquiie about Iheciiy (lobenlure.-j issued to the. conlraclors of the Ojitario.SiiPiCOO and Ilmoji Uailroad ; — 1 heard so. .Oui D > you know I but ilio.-ie d;:bentures were sokl or ai^ryed to be ssoki in Xew York at par i-~I do not know of my own knowh^d^e. I lieard so. 6th. Can you givt- any inloiij.-alion lo ihi.i com- mittee, tendiiii;- lo elucicl-Ue ih.j subject which the corniniltce wa.5 appuinledlo enqniru into I — I can- )iot. i\h!erman Pen 'son, seconded by Aid. Go wan, moves that the Ibliowiii'.: three questions be sub- milled !o liisWorship the .Mayor tiiroui^h the clerk, respeetnilly retjuestin^; tb.at he will answer the St' me either vei bally or in writing to this com- miuee. : — 1. Have you in any manner taken part by yoiu'- stdf or a^ent Tor aijy oilier person iii the negotia- tion or .-iale t,! ihe yJoO.OOO ot the City Debentures by tlit! Coutru^toia ol' the Noithern Kaiiroad, which ^; is said were .-iold at a discount of 20 per oent or thereaboutri i II so — stale how — in what manrer. 2. Have y< a directly o'- indlieclly received, or rro you in expectation of receivnii; directly or in- u.rectiy ai}v portion ol the prohts on the said iransac'ion mentioned in t'ie last .juastion, or any .sum of money for aiuing or asi^isting in the juo- motion of i'ne ^aid nego'i;ition or sale of the said jJebent u'e^ i If so— j; ate ihe auiount. The third (jUcsKon not lo be pul if the two pre- ceed ing are answered in the negative. II i ■ '^r '■ Hi (8-1.) 3, Did you assist in ibe promotion of the said i)C{,^ociation in yonr position or capacity as Mayor of I'oronto, or did you exercise the iniluenre of your civic position to aid you in promoting such liegociation, or did you act entirely ia your prrvate capacity as Mr. Bjvvcs, a merchant ol Toronto'? Wni. fShdden, Ksq., examined— 1st. Are you Secretary to the Directors of the Ontario, ^iimcoe and ihwon Ivuih'oad Union Com- pany 'I — 1 aiTj. .'2nd. Can you inform the committee whether the Directors of the stock to extent of XT)0,000 being taken from t!ie Conti actors in lieu of iho original loan of ./::3r),00(), and the i>rai)t oti;2j,(j()() i—l re- fer you to the vi itteu communication given by me as h-'ecretary lo the Doird of Directors, dated July oOlh, i^J-2f and any «;iiic'r conn!iunicali3. iith. Do you now n'co-ni/.e the city or jour company as huvin;*- complied v.'iiii the law in re- spect to takii'^- slock in ihe said *.'ompany >— I only con^idi.'r tlK.ciiy in the light of Iratisfeves. 7th, Dt) yon kno^A• i'ilher from the contractors or any oihcr jiv-r.-oii \vii.» it was that relamed the XlOjOUO from ihe c^jntra{.l:)is of tiie Onlaiio, Sim- coe and Muron ruilv»ay,«>r the sale on thectoO,UUwJ I do not know anytluni? at al' about it. ^h''-A:.,.: (S5) ':>{ the said • as Miiyor iiiluenre of otinii: siic'u r ill your ler chant ol :tors of the ^nioii Com- .vhether the 0,000 being iho orig'inal ^iven by nie dated July ilii. Doi'9 it iiK'.ke any diffcrj'nce wiiellicr the city siibciibod for stock as the •)ri<,rinal hohlers or as the assi;j:nees ot others, and if so he p!ea.?ed to s!ate the dilFemice ]~I luii not prepared to give my (^pinion as to vvhethei- it aiakes any di.Jerence in any shape or v/ay, tliis k a matter i did not ex- pect 10 be examined on. Mr. Thomp.voii McCicary, examined. 3,st. Have you be;'u ;•. coniractor for public works ordered to bo i:;ade by the city 1 — I have been. '2:\d, I»id you in that oapaeifv receive the de- benluro? of this city in pfyment' J— I did. 8;d. Have you any ohj-'ction to state nt what rate of discount y<,u disposed wf th<> .'-aid deben- tures? — With the <'Xcej!tion ofthe t.vo lirsl which %\-eie at a hi.u'her rate, th'^ whole were disrosc-d of It one ].er cent per aiunua for ihe time they had to run Hugh Miller, Esq., examined. Ut Vou stated in your eommunicatioji 3'esterday ;hat the debentures of the «'ity had been sold at par and some at a premium, and titat you had yourself purchased at par ; did you intend to convey hv jsuch answer the meanini^ that the debenlvres of th.is city were it the titne actually worth par, or ii"nof. what meanincj did you intend to convey ?— 1 1 rad(d in tlie articles at "that ])eriod to a linn'ted oxient : [ took it vA par because I could not irel it less; you'may undeisland v.-ltat yon like; I paid i-ar, I don't think thoy were vvoith par at llie lime, 'iKd. Wa'i it not in c-nsid 'ration oi the New >V.uk.'t iK'inic built in \h'i vicinity of your resi- denc«3 that you i^avo par for the d(d)entures, and was it not in fact in puisu.mco of such considera- tion, you had jnvvi'Misly bound yourself to tuke ^.''cu debentures i — Cetlainly. V 'I" i'>. UH\ (80) jMr. l^■>beIt DotWs, cxnmineil. l.st. Have you hccn a ooi.lractor for ccrtmi tmWic \vorks,'r.iul were you i>aia for thrir ].orr..M-- muiice hi Uh' u<^!K.'iitm<:;7 ol ta;y city ?— i liave, uikJ was so P liil about a v<'ar ;i*>i). 2}k!. Have you any ohj'.ctionlo inforru the coni- niiUoe, tht; u.^u.il raU.' of discount on the .'rU'(i by Mr. .yhl'M fiiiJ!i Bt'll in his pi icu "in ihf coun-.a th.u? be h;a! been inlonncfl the conlractnrs ol liic Oiiliuio. biuurof, uni U IhiMiebeii- tures of the <:itv ni N«.'W York al par, thai a h ;;>•' gfiitlt^man liatfcoiiih-cn here la intpuie afler tljt lu. lUid thnt in contit-queiu-e ot the niauuer in whifli they hud been i.-.>(;ea yonr iWbenturcs in a cUurjsy iiiai.juT, an-J that m consequence the eonlraelors sohl them at a (ha- foiuit ol 20 per cent. Had you or any of yonr firm uaxda ar. o .£;;> ments Ibr the sale of tht:;;e ih henunes «)r any poc- tiou of them at par in New York, or il not, a*^ whuc lale coiild you have dispobcd of tiien^ Inrre ? Did ever Majar L<;nn!a.s tell yon he !»ad i«d<,l or urran;^'ed to sell thove di-benturcs at par in New York"{ Are you aware that he told any other ]»ersen that yonr eoinpnoiy liud uc^reed to se'i the.-^o drdn.Mi- turos at par in N<".v \«.>r]. I The lavour ol yon.r answer t> the f.^i. ••;:••]; - questie!!S is re(p»e'.tevl lor the iidoinjation of tlie Cotnunltce at yonr earl 'est conveniei.ee. I aai^yir, kd » tfV. : certain ir ]»ori«.»r- liave, ati(i t the com- le . ^iijicoo, ll.i; lieheii- at a lejii'.l ji'lei' thtuj. • A! I whiili ID'J that ill at a dia- ir aijy |io«> )t, u* whiic uie ? nal ir»!'Tii!niit'*c in'-'t : Pivs-Mit— AM. Gi>o<1er- huiii, CiiJiirrn III ; AM 'VMvm Holl, I>t»!i!«r»n, Gow- aii ; (/ouijcillors, As!jii?Ui, G«ten, Maciloiiuld. K. C. li mJitock, I2?i|., examined. 1st. Ai'j you a director oftlK' Ontario, Simcoey and ilurotj Railroad IJui'>!i Conjouiv ] — I ain. 2!id. Did you inl'orta Mr lIuirhMiller tlr-xt in the " ne^^jociation s;il3 or (lisp'.-»s:i} of th-j delx-nlin'es is- .sM!t>d io tli!» eonlr.ui'ors of the On'ario. Sinjooe. ^v.d Huron raihv-iy. the May ir oflhiss city was •. party «)r that he jyirticipatud in any protits or advantage thereby I — I never saiil a '>\oril about it. 3i'd. In point of lael do yon kfiow who did ncjjo- ciatt? the said drbenlmes or who parlieipaleU in the prolit thereof I — No, TheCierk intbrmeflthe Conimilteo tint he had not r-'ejived 'I'ly reply iVotn the h'llers jnldressed in J. (i. liowes, Estj., the Mayor, or to M. Conrt- wrtiiht, K.->i[. Al ifraini Gowan submitted o'-rtain memoranda to form th-.* j^rotin 1-work of llie leport of this counuil whii'h were ileohned. Aidertnan Denison su'enitted the draft of a re- port to be aiIo,»;.ed l»y this comrnitter! which was udopttd, and whi'ii i»as bjen already giveu» Tu WUHiiiH' Cuukf/tiuii, il>q, J*ia, — 1 had tne honour in reply to your com- niu!!i<'a:ioiioi't!ie 17ih iu-tarit, to relWr y<»n to the City Ciiainberiain, the Chairm tn of the Finance, tUe*C«>ntract >rsi»f iHe Xurihern i\a!lroad, and the Carrhier ol'the lla I'c of IJpp«'r Canada lor irdor- inati'Ui on llje -uhj''et ol !h.' l)*d)entiuvs is.^nd to thf Xi'.l'.ieiM Jailr. ad (';!'i-» ioto'v. n)U('ii njore satisi ictoiv than anv I Juizhf irive. lint as the comriUitfe seesn «lesiious that I ?houhl answer the foHowini; (iueetion^. JNos. 1, 2. 3, I cdieerfuUy do so: [See the quei^tions in our report.] It li r.v- L'M m (SS) I mtrmhwed th«-» Co.it r.irtors to ihc Hnnk of TTpjuT CnrKuIa, atifl i«?nclorf'(l llifm J'.ny Ji,-sis«aii<*o in my power in the jip^ociiitiou of ilie ,£5(>,iM»0 .lebentuics. but refoivrd jio leiiiuiioiiitioii pieseiil or prospective flicrvfhr. Your obedient servant, John G. Hoavfs. -v^ -..y^v ^ (^Fi'oin the Puithh Cutuulittn,') Saturday, February 2i)l!i, lSo3. Li-rr ns now jimilyzo tho cvMtJnce wliicli li:is bui'ii i^iv'oii buf'uro ill.? Coiiiinilli'O np- 3")oitit(nl to enquire into tUo Usuq of llui City "i)(!bentmvs. That Coninilll(M} ilolibi^rulely a(lo[)tecl a report in wliluh it is J^tated, tiiat in tho absunce of aeleciLuito powers to tinther t]i(3 tiiids of justice they are unable to vometo anif f>aJh\faclon/ f.onrliislonf but that they are of opinion that tiie inteiesls of this City hjive not .suilered from the transjictiou in {juestioa so far (/•> llieij had hem able to dhcovcr. We will now refer to the cvidiMico and 8eo how far these cunclusitms are i^ustainabie therefrom. There is no ilispute that an au:ree- jueiit was come to ])etweeu the Contnictois of the Northern Railroad Company ami the Corporation, *hat tlie former wlio as assijr- nees of the Company hail become entlthal to tlw? prospective ativance from the city ot jl:-25.(H)0 as a [x\i\, and 35,000 as a 'loan should fore^ro this prospect for an immediate purchase by the city of 50,000 of the rail- way stock which the coiitraclors held, the consideration to be an issue of £50,000 city debentures. It is stated by Alderman Thompson, tlie Chairman of the Committ(;e of Fin'ance that, " the Contractors refused to take less than par for tliese debentures before they were issued," and that ** a h^gal gen- tleman from New York was hero about tliem witti a view to pm-chase them at par."— { f -•• ,4i»-^ -.***. >S-fc9„ ■-*- LiU ! »' ii ip j (90) When the time to ocinpleto llio puiclmise ciiino eoimj one rai^od u (n'.oMion ;is to llio i';'inuity of any ir^suo of city dcbunlim'S for tliis pnvposo and at tlii-s liuic, luit liiosi; ia tlie secret know that an Act (.'1' railiauicnt was al'outtobo obtaliuHl whicli would nul only nmiuvk) the ditlicully but would male- Hally enhance tlve value of those debeiituics ill the market. The public however were iy-norant of this c.xpeclalion, and with the knowJedu'e they then had, it is probable that tiie jL'5U,(J(;() city debentures would not .^ell at a Ini-her price than about X4J,(j(it) which Mr. Cawtlira said he woukl have given for th(;m. But if the public knew as much as those behind the curtain thet^ame (h-bentnres would be uvrilt 'par at lkast. Tiie jiublie, however, were JL>n()raiit of thi.s, and witli the " taint of illejiality" about them, the deben- tures were is.sued ibr tlje contractors wlio could not dispose of them in Toronto e\'cet't at II discount of 'iO per cent., althouiih if legal they were value at par in iNew York. Mr. ]\icCoid, the Chand»erlain, tells ii.sthat the Ilist issue ol" debentures took place on the 2Lst July, yet at thi^- date the agree- ment between the (dry and the company was not complete as will appear by the letter of the Secretary dated 'i.Stli July, which will be Icunti in evitience. Between that date and the 7tii October the sum of i;4:.l,()(J0 deben- tures had issued, not /o the conti actors but for them, and by son-io arranu-ement very umisunl in city transactions, insteati ofbeinj;- paid over to the contractors, Mi. McCord lodged them in the i]ank of U})per Canada for the benefit of some invisible purchaser lii u uich;tfee * lo llio lies iur liosi; ill liaiiionl u\d iiul niJile- eiituies ir were •ith the ijIo I hat not sell which veil for lueli as leiitnros juihlie, vilh the debfii- ns wlio I exeept ouiih if u iNew in, teii.'i ik ph.icc ? ogree- iiv was utter of will be ito and (leben- tois but nt very >f beiii-;;- Vic Cord Canada ichaser (91) " in parsuancc of a request of tlie contraotc.rs both vei bally and hi \ViIliii;^-to do so." 'J'ho ilrst issue, and apparently the Ih'st hxli^- ment lofik place ou the -ilst .Inly, but Mr. McCord inforrus us that it was " on the riTth Koptember the contractors wrote a note to him to lod'^e all the (h.'hentnres in tlio I^ank of Upper Canada except tini of £'Vii) each.'' \Ve have it also in evidence that on the 2*Hli kSepteniber, the veiy dny after INb.'ssrs. JStorey-.s letter of authority to ]otlL,'e all the debentures, l\lr. IVulout wrote to lh(J council a^ the agent ol some other nameless party who was evidently in tlie secret oihn-ini; to take at p;ir i;i(K),0(K) of city debentures e.v- pecled to be issued under tlie provisions of an act introduced m the Lei^islatiire on rJ'iud Septt>nd.!er, bnt this oiler was aecompanieil by the very peculiar condition that the city shouhl take as' part (jftne ll(H),00(), or iii other words as :>j mueli cash,the city tleben- tm-es to whicli the railway contractors were entitled as the price of tiie purchase of i;oU,()v'4« of their railway stock, although at this date it aj^pears by tlie return ol the Chamberlain oiily .f38,000 of these deben- tures had been issued or deposited in the Bank. On the 3')':h Se.pt. a iurther issue of JlTyjOl) deben.tu rus took place, making in all X' 13,000 placed at the contractors dispo- sal, antl it remaiiis to be yet shown what became of tiie re.-idue .£'7000. We h V^ 23 WEST MAIN STREET WEBSTER, NY. 14580 (716) 872-4503 ™5 I'ftf (iU in (92) but also over the city property in debentures to be issued under tlio ponding bill. Two questions now arise. Istly — ^AVho was the invisible purcliaser that found the funds to pay the stipulated price of 80 per cent, on the debentures issued for tlie con- tractors and ordered to be deposited in the Bank ? — and secondly, who was the propos- ed purchaser at par of the £100,000 city de- bentures to be issued Ufider the then pend- ing: act ? Upon the first point Mr. Jlidout says that the Hank gave the contractors cre- dit for 80 per coat., as the dobeiuure-', were lodged in the Bank, and as th.;y advanced the money — bills were drawn on" f.ondon lor the amount, but he declines to tf;U by whom these bills were drawn, and adds '" it wns not the Mayor at any rate." Mo tells us, however, that « the i 10,0[)0 was atlvaaced in pursuance of a preconcerted arransfeMnent between the contactorsr and the patty for whom the Uank acted as airout"— that such advanoe <* was not cliarged a'j:niu^t Master- man & Co. "—that " lie cou id Hot tell with whom the previous arranij^oRu^ut was made" and for information on tiiis point says, " you had better ask the contractors." The con- tractors are applied to, and " decline to an- swer the question." As to the second que^ition, wiio was the proposed purchaser of the £100,000 city de- bentures ? Was it tho same Darry who pin-- chased the £50,000? Mr. Kidout << says it was parties in Euiiiand who tiansaoted tlie bu:d- ness, and he did not know if they were tiie same." Now, that there was a certain amount of concert and pre-concert between (93) the^arty who proposed to purchase at par the Jt*l(K),OU() c'lty debentures about to be issued under tlie expected act, and* tlie party who cashed at riU ]>er cent, diseonnt the i:50,(U)0 city dcbenturciJ i.^.-^ued for the contractors is evident iioni the .slipuhitions! that tiiese latter should be taken in 5>art payment and at par also, and that this invisible puvtyliad so much inlluenee over or in the committee ot Finance that the X*1(K),(]()() debentures were not al- lowed to j^o into the public market for com- petition a.s livual. TiJe^•t) his stipulations were aceeded to, and the act liavin^r pusj^ed on 7tii Oftobcr, on i2Slh iVov. the purchase of the i;iOU,OUa debentures at par was com- pleted. J.(.rt ns now see how that .CI 00,000 was applied. 'I'lie act passcil on the 7lh Oct. Under the :ird fteolion of tliat act XiA)^mO theieol' \ya.s reqtnied to be applied in tlie rcileniption of certain note;^ ot Ihe city, and under the 4lh ?ecli< . of the act tinit huitd was to be de])osited in tiie Bank of Upp.er Cana- da for that purpo.-e. The lilih section de- clared that the reirnuning' £50,000 .should be applied in payment of ten t!ion.sand shares of the capital stock of tlie Ontario, Simcoe, and llnron l^.ailroad Union Company " lately pnrchased by the .said city of Toronto." Here then is adilitional evidence of an ac- tual pnicluise of these ten thon.^a nd .slrares of live punnds each, and tiiat pnicha.se was made either witii tlie UiwiU of tlie city or witii money «adYancetl on the crtdit of *the city. Kow i\lr. iVIcCord tells u.s that »* tlie monies of the city were not so u.sefl, nor had the city moneyJbr.iJiicL a pnrpose There- '""SPPI^ ^ss^msBOBm a I i tf ii (94) fore vre come to^healtcrn'^ive that fitf>me- body must !iave advanced suliloient for the jjurposw on the fiutli of the ehy making ^ood llio X'50y(iOO. Now wo liuvo il in evi- ueace that on the 7lh October, the day the act passed debouUires to tlio amount of i:43,*i- due^ aud that sum is uuquesliouably the pro- perty of the city, indepeudout of £'liOiji)oi the previous issue reserved by the direction ol the contiactors for somebody^ < 1 4 .■?«r.. liif ^ js»*W:' for the [Yiukiug ill evi- lay the omit of tractors appears reached in and ih with uses ill i day it to liave kraiion Hi " it to call Toronto led and to sub- eceivod issued for this flsory to h\g the r teini.^. ed was ?m that £3,000 ]w cou- )plif cue •hiise of ! a resi- tho pio- !,500 of jiectiou The Chainberlain states that on the lltlx October he was aware tliis act had parsed, ami oil the 2*2iid October he had an oifici.xl copy of it ia hisi poji.-stJsj.sioii, and oIFicial know- Jed^-tj of iu cuutezits. On the ISih October a by-iaw was passed ia Council autliorizliii^' the Mayor to issue £7,v)00 balance of tho jC50,- OiHK Such i!<.->iie accortliiigly took p^;ice, aud it U yet to bt? siiewii that liiese debeatui'ca also passed into the Bank as the others di«l, Nds.^', tijoui,^h the act only aiUhorizetl the Ciiamborlaia to pay out of tiie .£10D,00^ loan such dobentnres as may liave issued prior to the day that act passed, yet .£7/)0l) of debentures which were subsequently is- sueil to other parties,were iilei^-ally paid there- out, and tluiri we have a positive misappli- cation of the City property to the extent of thi$ .£7,000. By whom was it so misapplied— who held these debentures — who benelitted by the misapplication ? We have no evidence be- fore the committeo to enable us to answer in the atlirmative. Certainly none to fix it on either Mr. Cotton, Mr. Hincks or Mr. Bcr.ves. Neither is tliere any evidence to acquit them of a partioipition in it. Mr. Cotton knows who purchased the debentures issued for the contractors and veahzed th^» ,£10,000, but he dechnes to disclose it. Mr. Kidout also de- clines, whilst Aldernian Hutchinson J^ays, " I can prove to this committee that the Blayor has beneiitted by tlie transaction, and has'rocoivoJ or wdl receive a portion of the diirerence, and that there are other persons in this City who if np;)n oalh woiikl liave to state the whole transaction." The fact is 1 m I 1*; i' 1 i ^1 i that the commhtee had no power to coin pei their aiis\Vi3r to these rpiestions, ami we have as yet no legal evidence to shevv who j^ot the dilleronce from the amount which really reached the coiitractovs hands, to the £50,000 which was iss^ied on the 26th November, and which is called £10,000. The' report which was really adopted by • the committee left us where wo were— tlia report winch was improperly substituted, kept back a raaierial part of the conclusions arjived at, tiie one sided report of Al* derman Gowan so outrageously toistedoathe. public as the opinion oF the Council is cal- culated, and we hesitate not to say w^ls hi* * tended to mislead the public!; ou the whole transaction, whilst the letter of the iMayor in answer to the three questions is as yet the •siror est evidence against him. li.e citizens, however, will not be bai (led by quibbles, and they are resolved that the Court of Chaiicery shall vindicate the cha- racter of their City and their Chief Mao-is- trate if it can be done, and that they siiall know who ara the parties that netted the £10,00:) upon this strange and mysterious transaction. ^> tf ;o coin pel 1 \Te havG who i^ot ich really e i: 50,000 lovember, 1 opted by " vere — Iha ibslituted, inclusions It of Al*- sted oil lb e. i»il is cal- Y ■WtLS ill* the wbole I iVIayor h\ as yet the be bai tied d iiuit tbe 1 the cha- (jf Magis- they sh:ul netted the tnystsiious