IMAGE EVALUATION TEST TARGET (MT-3) 1.0 |50 m IM llll|^ 2.2 I.I 1 1 1.25 1.4 — ~ 1 m III 2.0 1.8 !.6 6" - % % e: ^/ / ^0 a. #■ . c] ^ O w ///. Photographic Sdences orporation C ^ V '% 23 WEST MAIN STREET WEBSTER, N.Y. 14560 (716) 872-4503 m % €^7^ V MP^ signi^ie "A SUIVRE". le symbole V signifie "F:N". Les cartes, planches, tableaux, etc., peuvent Stre film6s d des taux de reduction diffdrents. Lorsque le document est trop grand pour etre reproduit en un seul cliche, il est film6 d partir de Tangle sup6rieur gauche, de gauche & droite, et de haut en bas, en prenant le nombre d'images ndcessaire. Les diagrammes suivants illustrent ia m^thode. 1 2 3 1 2 3 4 5 6 :■ >,;'''«> TJELTa ELECTION CAMPAIGN -A. S TJ D^ 3S4E .A. li TT or ' J&M. THE PUBLIC RECORDS OF THE PAST FITE YEARS, roE THE USE OF THE PEOPLLi THE "BALLY MAIW PElJifT, CORNER^ Kim AN1>*AV «fK«K^'&. 187 8., ^^mmmmm (i ,>.;i ^"H THE NEEBING HOTEL COST THE COUNTRY $5,029. x/ '■'j-*. rv m^^i: " I l^' ,s.-;«,j.i.;-. ">■ ', l> 1 1 i 1 ^ ***"?. '■'i* THE ELECTION CAMPAIGN. s TJ i^ lyc -^ li 0» THE PUBLIC RECORDS OF THE PAST FIVE YEARS, FOB THE USE OF THE PEOPLE, / ^ ^ K XBK "DAILY MATL" PRINT, CORNER KINO AND BAY STSSSSSL 187 8. WvvS '^;)iA'iiL'.:) ZDrnm mt ■/) ■■■■.I A », 8 i^ ^'!^ ^ T ''1 '- * I is'i'' V* ^^ j; j-Kj {i'h J 4 ..(PlSf g H ,,««, 11'^^ i^4 ^ *' ^i ii .i Z' ,. V ^''< /. 'i :,M T •^-i'^oa'i :; I ^^ ^^RT .^^ .«*y^ t!*'- ..^ ti Mmmn y/jT fj? ' ft i it C •; f; • » • m um ■ ■ — Paqes. Public Expendithrb 9—17 Extravagance and Cobruption ., 18 — 36 Pledqes and Principles 37 — 50 Stem. Rails 51—60 "On The Make" 61—67 Ths Issue Before The Country 68—78 TLe above Articles, republished from the columns of THE MAII^ •re little more than a Summary of the Pablio Reoorda of the pasi five j«an. \ loraHo, July lit, 187a ry : r -,...-^ • r '.y'i f } ■ L« (i ■. '*•="' 'V'sj ini;;i ., ,,! : ; - ' ! (■,)M^i„v Sj; J.. I •/ I THE DAILY MAIL, n PUBLISHED AT ^^ KING "StriEET, TORONTO, ONT., BY CHRISTOPHER W. BUNTING. '*' ' ' '■ .G U'lf' -'i -■ \j .:.t. The Mail was established in the year 1872 as the organ of the ( 'onstTvative Party of Canada, and starting thus, immediately took a fiMnt rank among Canadian newspapers. Since that date it has .siiioly and steadily worked its way onward, and gained circulation and iiitliience which render it second to no other newspaper in the Dominion. The Increase in Circulation during the past seven months has been unprecedented. It is published every morning (Sundays excepted). SX7BHCEIPT10IT PRICE, - - - $6.00 PES AITNTJ]!. til TO A^DVERTISERS. .dvortisements are Inserted in both Morning and. Evening Editions for the One Charge. The rate for transient advertisements is ten cents per line, non- pareil measure, for each insertion. Special contract rates will be made known on application. . -- i - ? ; - - SPECIAL ADVERTISEMENTS. Each insertion of Condensed advertisements on the first page, when not e.x^ceediug twenty words. Twenty- FIVE Cents, and One-and-a-half Ckni' for each word over twenty. The advertisements referred to are as follows : ■ f,- :■,',*. • Properties to Rent, Strayed and Stolen, Hotel Register, t.r. ^: J'- * Business Chances. t \ddres8 ail letters to-— ,jfiC' .:. ri- :.T v-Ai" THE MAIL, Toronto, Ont Farms for Sale, Horses and Cattle, -r Money, ,/j' Specific Articles, 1 \\fijjjr,r >-,5'.*. .; • "'tWF ■fT- 8. THE WEEKLY MAIL PRICE $i.50 PER YEAR, POSTAGE PREPAID. Notwithstanding the hard times, and the goneral falling off in tho _ >' T T T circulation 01 Weekly NewspaperSj the v^* k Circulation of the Weekly Mail has Increased 35 per cent. Within the last six months. This extraordinary success is no doubt due to the great improvements made in THE WEEKL Y MA I L during the present year, which have made i-^' - - . The Great Family Paper of Canada. EACH NUMBER CONTAINS: NEWS from all quarters of the Globe. EDITORIALS on Current Topics, STORIES, Carefully Selected. AGRICULTURAL INTELLI- GENCE, and HOUSEHOLD RECEIPTS, &. HEALTH IN THE HOUt»- HOLD. MARKET REPORTS. NEWS PARAGRAPHS. ARTICLES ON FARM TOPICS EDUCATIONAL NOTES. ILLUSTRATIONS. MISCELLANEOUS READING, LADIES' CHIT CHAT. ETC., ETC. TO ^.D"V"EIE,TTSE!E.S. The regular rate for advertising is fifteen cents per line, nonpareil measure, each insertion. Contract rates made known on application. We make a speciality of advertising Farms for Sale; Farms WanteH ; Livestock; Auction Sales of Farm Stoc' and Implements; Agricultural Shows ; and ^ ,, , Teachers Wanted. Advertisements of these classes are inserted in the Weekly Mail, 2C words for 50 cents each insertion ; each additional word, 2 cenia. ,! , j. { ""'"^'.m\Ki\ ,AViA% THE MAIL, Toronto, Ont. i V i((i: •: !■;■ ■■> ■,;-'•■;■■■; - ^-'.i'-Ui, ... ii ,J.' ,,,,-■ i j; /^ , ? .. ■ u;' !■ &tiiJ,:\)«» THE PUBLIC EXPENDITURE. .Ki i - . , ftiji • . ^ No one acquainted with the politics of tile country since 1867, or even since 1872, need be told that Economy was one of the first principles of the Reform party when it was in Opposition. In the convention." both of the Reformers of Onta-io and the Rouges of Quebec, Economy held almost tht, first plaee ; and it was owing in no small degree to the persistent declaration in behalf of Econor ly of the leading men and journals of the Party as a whole that it ai-hieved such signal suc- cess in the general election of 1872, and after the resignation of the old Govern- ment, in the contest of January, 1874. It is not to be denied that under the old Government tbere was a large, even a vast increase in the public expenditure. The figures are as follows, mde Public Account!, for tlie years named : 1867-8 .$13,486,000 1868-9 14,038,000 1869-70 14,34,^.50 ) 1870-1 15,623,000 1871-2 17,589,500 1872-3 19,174,600 This was an increase in five years of nearly $6,000,000, or $1,000,000 a year. It must be borne in mind, however, that the work of establishing the Union, of making the British North America Act of 1867 an actual and material Con- federation of the Provinces, was one in- volving enormous co.st its well as on- ormous labour. Yet withal, this in- B oreased expenditure was largely within the revenue. Just as a farmer can afford to improve his estate when his income is buoyant and ever-growing, so the old Government was able out of their splendid revenues, not only to deal liberally with the ordinary demands of expenditure, but to put aside every year a comfortable surplus of revenue over expenditure, which they applied to Capital Account and like purposes. The following table explairis this more fully : Ejpenditure. Revenue. 1867-8 $13, 486,000 $13,687,900 1868-9 14,038,000 14,379,000 1869-70 14.345,500 15,612,000 1870-1 15,623,000 19,.335,600 1871-2 17,589,500 20,714,800 1872-3 19, 174,600 20,813,500 , ,_ 194,250.600 $104,442,800 Sui-nlmes. 1867-8 $ 201.900 1868-9 341,000 1869-70 1.166,500 1870-1 3,712.600 IS71-2 3,125,300 1872-3 1,638.900 V^ , . $10,l86,-200 Thus while the expenditure in these five 1 years was increased by $6,000,000, the , abundant revenue not only met the in- j crease, but left a surplus of nearly §10,- I 200,000. . On the 5th November, 1873, four months after the close of the fiscal year I 1872-3, Sir John M Mcdonald and his colleagues resigned and the present 10 Government took office. Now, though th« Mackenzie Administration thus ruled for eight months and the Mac- DONAiD Administration for only four months of tlie fiscal year 1873-4, it would be manifestly unfair to hold the former responsible for the whole outlay that year, inasmuch as when Mr. Mac- KBNZI8 came in the public expenditure was being conducted on the basis of Mr. Tilley's estimates for that year. Mr. Tillet's estimates of the expeniiture for 1873-4. i.e., the amount the old Gov- ernment proposed to spend, was $22,- 483,000, made up as follows : First Estimates |20,941,000 Supplementary do 1,542,000 $22,483,000 He arnounced that the supplementary »ura of ^4,542,000 was required to .leet the charges arising from the assumption by the Dominion of the Provincial debts, the e.xpenses connected with the admis- sion of Prince Edward Island into the Union, and the increases to the salaries of tlie Civil servants. Prince Edward Island had just been adopted into the Confederation. Beginning in 18G7 with the four Provinces of Ontario, Quebec, New Brunswick and Nova Scotia, the Macdonalu Government becured Manitoba and the great North- Wes^ in 1870, Britic.h Clumbit. in 1871 and Prince Edward Island in 1872. They had united all the British posses- sions in North America, Newfoundlar.d excepted. But not without a large out- lay. It is one thing to annex or incor- porate a Province on paper ; quite another to exocuto the instrument of incorporation. Mv. Tilley estimated the revenue for 1873-4 at 521,855,000, showing an apparent deficiency of $028,- 000. But upon this point he said in his Budget speech : *' The surplus next year " (1873-4) he estimated at $1)13,000 ; " but the supplementary estimates and '* propobiUons before the House would " reqtiiro $1,542,000, which wduld leave " a deficiency of about $028,000. But " owing to the sorpIuB in the preaen^i " year no deficiency would arise. " He had, as he believed, provided for every- thing, and when he left office with his colleagues, the account of revenue and expenditure was, as he and they be- lieved, straight. The Expenditure under the Mackki - ziE Government has been as follows : 1873-4 $23,316,000 1874-5 23,713,000 1875-(> 24,488,000 1876-7 23.519,000 The estimated expenditure (i. e., the amount Mr. Mackenzie proposes to spend) in the current year ending the 30th June next, is $24,227,000, made up as follows ; Original estimate '. '.!.:'. . . .$23,379,000 Supplementary chargeable to Consol dated Fund, brought down 4th May, 1878 848,000 ' • $24,227,000 It is evident, then, that instead of cut- ting down the expenditure, Mr. Mac- kenzie has increased it. He has, in fact, violated his pledge in a two-fold degree — firat, in not having been more economical than his predecessor ; secondly, in having been more extrava- gant. Between the sum Mr. Tilley proposed to spend in 1873-4 and the amount Mr. Cautwright asks foi the current year, there is a difference of neju-ly $1,750,000. It is contended on behalf of Mr. Mackenzie and his col- leagues that they have found it im- possible to cut down because of the large increase made by the old Goverrment in 1873-4. But if that be accepted, if they could not cut down Mr. Tillev's figures, what excuse is that for the in- crease of ,^1,750,000? And, again, if that be accepted, and thejr cvjuld not cut down Mr. Tiluey's figiires, then the conclusion is unavoidable that when they led the coimtry to believe that Economy was not only possible but practicable, and even sure, under their administra- tion of affairs, Mr. Mackxnzik and his 11 848,000 aBsociates acted either in ignorance or bad faith. The pledges of public men should be sacredly observed ; and in this case there were reasons even as cogent as a regard for their honour that pressed on the Reform leaders the necessity for Economy. Shortly after they took of- fice the revenues which had been so abundant under their predecessors began to wane. The following table, showing the revenue as well as the ex- penditure, explains this succinctly : Expemiiturc. Revenue. 1873-4 $23,316,000 $24,205,000 1874-5 23,713,000 24,648,700 1875-6 24,488,400 22,587,r);.~'^ 1876-7 23,519,000 22,059.000 $95,0.36,400 .$93,500,300 The estimated expenditure for the cur- rent year is $24,227,000, and the estimated revenue $23,500,000. But on the 10th Februj"— 'ost, the latter estimate was over $600,000 short, so that a deficit of close on $1,500,000 is almost inevitable. We have, therefore, these three pic- tures : (1.) Annual surpluses 1867-8 to 1872-3 $10, 186,200 (2.) Surplus, 18/3-4. $889,000 i, ,. vv, 1874-5. 935,700 $1,824,700 (3.) Deficit, 1875-6,$1, 900,800 1876-7. 1,460,000 Probable do, 1877-8. 1,500,000 $4,860,800 From these striking pictures Mr. Mac- kenzie must have gathered that, apart from his own pledges to the country, the national credit demanded Economy. He knew he had exhausted taxation, for the three millions he levied in 1874 had not averted deficits. Nothing remained but the luost stringent Economy. That would have been at once the fulfilment of his promise to the people, and the salvation of the public credit from the blow which he knew chronic deficits would inflict upon it. He has failed, huwevur, to respond. There has been a large increase in every branch of the purely controllable ex- penditure. When a merchant finds every other legitimate means of making both ends meet f .lil liirn, he considers it his duty to cut down his running ex- penses. An honest statesman would do likewise. But Mr. Mackenzik appears to lack not only the honesty that should have impelled him, even 11' had there been no dehcits, to cut down the running exponses of the country, but the honesty that would have impelled even an unpledged man to that courae,^ Take these running expenses from ba- ginnin;^ to end : thirst, a large increase has taken place in the cost of the Ottawa Departments. When he was leader of the Opposition, Mr. Mackenzie always bewailed the extravagan^i) under this head, which he ascribed to thn "immoral coalition." In the fall of 1870 ke took special pains to put this view before the country. In a speech delivered at London on the 25th October of that year, and reported in the Globe the day following he said : " When the (lovemment was first form- ed in 1867-8, the ofiices were filled with a great army of employds, but notwith- standing the entire expenses of Civil Gov- ernment, including the Governor-Generals salary and those of the Lieut. -Governors were $594,445.82. What was it now ? The very same items now reached $661,- 675.82— an increase of nearly $70,000 ir two years, m consequence, as he firmly be- lieved, of the naturally bad system of Gov- ernment that existed under a coalition." At St. Catharines, on the 15th of No- vember of the sarue year {Globe of the 16th) he said : " Why, the Ministry were packing the public buildinjja from attic to cellar — two or three in every room — till one could hardly find his way through them. The last time he was at Ottawa he found four men at the door waiting for the little man's behests inside." These are but samples of his utter- aactiJi un this subject taken at random fj'Oiu hiB Opposition speechee. The Rougos were also strong on Ilconomy in Civil Government. Their platform of 1872 contained fhese three articles : 3. Reduction of the number of Minis- terfonnance of the public stjrvice. Now here ai"e the pi-egnant tigures : H72-3 $;r)0,900 H73-4 SM3,700 1S74-5 i)0!t.3U0 H75-6 842,000 1576-7 812,200 i^econdly, there has been a vast in- ■creaae in the expenditure on Imniigia- t:.on. In the prosporous years when business was good and employment plentiful, a liberal a))pr(>priation under this head w as highly desirable ; but in 1874, when the prtsent Government fjund a panic in the country and witnessed the c(jmplete pros- tration of industry they ought to have made no special effort to en- tourage immigrants. However, they look an opposite view. JTr. Edward Jenkins was appointed Agent-General j in February 1874 ; handsome quarters ! were provided for hira and an increased ' staff ; a number of now travelling agents j were appointed, and no expense spared | to bring Bi-itish laboiu' to an already glutted market. In 1875 Mr. Jbukins' aervices were dispensed with and Mr. DoRE and subsequently Hon. William Annanu, of Nova Scotia, succeeded hiiu ; but up to the close of the last fiscal year, no attempt has been made to cut down the enormous rutlay on -the immigration establishmenc and machin- ery in Europe, though it has long been apparent that the C'i,nadian labour mar- ket is more thai! »'ell supplied by those already in the country. The expendi- ture under Immigration has been as fol- lows : 1872-3. $277,400 1873-4 ;)18,60O 1874-5 .S02,800 1875-6 385,900 1S76-7 354,000 Of this total of $354,000 for 187G-7, the sum of $144,000 for special expenditure in Keewatin in connection with the sni;ill-pox quarantine there, and for Icijlandic and Mennonite loans and re- funds, must be deducted in order to bring the expenditure of that year to the ordinary level of that of 1872-3. This will make the total for 1876-7 1210,000. So likewise the sum of $96,- 000 for Mennonite loans and transport must be deducted from the aj^parent ex- pouditure in 1875-6, leaving the ordinary expenditiu-e that year $289,900. The number of immigrants by the St. Luw- ronce route has been as follows : 1872-3 3(;,!(07 1873-4 23,t5'J4 1874-5 16,038 1875-6 10.901 1876-7 7,743 The per capita cost of each immigrant is therefore as follows : Per Capita f Dimujranta. Cost. Goa. 1872-3. . 36.907 ?;277,400 $1 51 1873-4. ., 23,894 318,600 13 33 1S74-5. . . 1G.038 302,800 18 90 1875-6. .. 10,901 289,900 26 50 187fr-7. . . 7,743 209,000 27 00 The immigrants who enter tiae country by the St. Lawrence route are th'j only immigrants who can be justly claimed by any Government as the result or fruit of Dominion expenditure. Last year, indeed, there were two Dominion agents in the States engaged in the work of repatriating French Canadians ot whom thoy say they secured 83G, »ide Minister of Agriculture's report for 1877. But ftside from this, the whole appropriation is spent in behalf of European immi- grants ; and the persons who cross the lines from the States and settle here or pas* through here to the Western States como 13 (UW oti,yor 23,69+ 16,038 10.901 $7 51 u as 18 90 2« 60 27 00 of their own accord, and certainly not | because of the money spent or tlie etforts made by Dominion aj^ents in Europe. Moreover, if the immigrants from the States are to be claimed, then to n;ake our population account an honest one, we should also keep official returns of the annual Canadian hegira to the States. Of late years the majority, i.e. the Min- isterialists, on the Immigration Commit- tee of the Commons have taken to claim- ing these arrivals from the States as, equally with the St. Lawrence route immigrants^ the fruit of the appropria- tion, their object being to reduce the per capita cost of the European immigrant, which has increased so largely under the present Administration. Thirdly, there has been an enormous increase in the cost of tlie outside De- partments, that is, the Customs and Excise Departments. In the former this increase is most marked : Revpjiue GoUecffid. 1872 3 $13,053,900 1873^ 14,410,600 1874-5 15,387,000 1875 6 12,841,300 1876-7 12,556,800 Cost of Collecting. $568,000 658,300 682,700 721,000 721,600 Tlie cost of collecting each $100 of Customs revenue has therefore been as follows: ■..'^^^.r: ;.,,; ,756 67,680 67,956 BeaHharaoU. 22,986 27,280 27,654 CJornwall.... 26,414 21,883 21,317 Williamsburg 14,947 15,428 11,823 Chambly.... 24,600 30,439 .30,867 Ottawa and Rideau-... r0,375 51,707 48,482 Carillon and GreuviUe.. 19,748 22,523 29,945 $344,413 $388,164 $385,287 1875-6. 1876-7. Welland ?!145,619 $116,274 Lachine 72, 1 19 62,829 Beauhamois 32,772 30,080 Cornwall 20,687 21,025 Williamsburg «0.284 18,592 Chambly 26,219 22,851 Otta wa and Rideau. ... 42,948 42,280 Carillon and Grenville.. 23,735 22,633 $384, 3S3 $337,164 The charges on Government railways and telegraphs have bsen as follows ; 1872-3 ::I,063.882 1873-4 ],>i77,169 1874-5 1,621,654 J875-6 1,. '-.30. 403 1876-? !,>J23,321 Adding these together, the totals are as follows for the principal canals and the f&vlways and telegraphs : •; -.r; ? 1872-3 $1,408,295 1873-4 2,265,333 1874-5 2,006,941 1875-6 1,920,786 1A16-7 2,269,485 It will be observed that as between 1873-4 and 1876-7, there is a decrease in WoUand canal charges of $,55,000, the works begun there in 1874-5 rendering a large staff on the old works unnecessary. But that aside there has been no tangible decrease. Now lot us make a total of these run- ning oipenses. It is often contended on behalf of the Government that the Mao- DOifALD Ministry made so large an increase to the public staff prior to their resignation in November, 1873, that their successors have found it im- possible to reduco the running ex- pttwes. Put iu logical form tliia gl(« is — A W9B so outrageously extrava- gant that B, who pledged himsc^lf to cut down A's extravagance, found the task impossible after a live years' effort. But assi'ming that the Macdonald Ministry was responsible for all the in- creases in 1873-4. Assuming that they made all the new appointments, even Jenfin.s', (luring their four msnths' tenure that year, and that in their eight months* tenure the M.^ckenzie Ministry disappointed their followers and abso' lutely refused to give an office or an in- crease to anybody. Assuming all this, let us compare the running expenses of 1873-4 with those of last year : 1S73-4. 1876-7. Civil Government.. $ 88.3,700 .$ 812,200 Immigration 318.ti00 210,CK)0 Customs Salaries. . . 668,300 721,600 Excise Salaries 201,1200 211,00) Administration of .Tuatico 459,000 .565,600 Pe nsions 56, 400 1 1 2, 500 Superannuatio n Fund 64.400 KH.SOO Public Works 2, 265, 300 2, 260, 500 "; V V $4,906,900 $4,998,200 This showp an increase of §^90,000. Now let the reader remember what haa been yielded in the Government's favour in this table : (1.) That the Macdonald Government made .-vll the appointment! of 1873-4 and that the present Govern- ment made none ; and (2.) the sum of $144, 0(X) has been struck out of the Im- migration total of 1876-7 because it is claimed to be special Icelandic and Mennonite expenditure. Yielding all that, and it is giving the Government their whole case, the fact remains that the gentlemen .vho took office to cut down the expenditure have increased the running expenses of the country $90,000 at a period of extreme depression and in an era of chronic deficits. Not only tha+ — thoy have spent this much more in doing less work, for there is a wide difference in the Immigration and Rt venue Collection returns of the two yeiUTB : I 15 I 1873-4. 1876-7. Immigrants &•- cured 23,894 7,743 OuBtoifiB Revenue oollocted $14,410,600 $12,556,800 Excise Revenue ooileeted $3,639,000 $3,869,700 In the above even the impossible has been yielded in the Government's favour. It is impossible, for instance, tliat gen- tlemen who had been out of office twenty years and who were beset on every side by clamourous friends should have made no appointments in the first eight months of their tenure. It is reasonable to sup- pose that they were as much responsible for the increases that year as their pre- decessors, and fair, therefore, to go back to the last full year of the latter for the purp se of comparing the running ex- l>enses : 1872-3. . . .. ^. 1876-7. Civil Govern- ment $750,900 ^812,200 Immi{?ration 277,400 210,000 Customs salaries. 568,000 721,6(iO Excise salaries.. 171,700 211,000 Administrat'n of Justice 399,000 505,000 Pensions 49,200 112,500 Superannuation Fund 53,000 104,800 PubUo Works... 1,408,300 2,2^3 500 Jri»-» i -s« •••; $3,677,500 $4,9':3,'^00 Or an increase of $1,320,000. Accord- ing to the Reform leaders the fi'^ures of 1872-3, nay of each year of the old Gov- ernment's management, were grossly ex- travagant, the extravagance being due in the main, as Mi-. Mackenzie? ex- pressed it, " to the naturally bad sys- " tern of government that existed un- " der a Coalition." Yet the fact is patent that after governing the country for five years, with a majority at their csommand that would probably have sup- ported them in measures of economy as cheerfully as it defended their extrava- gance, the Reform party is allowing the running expenses to exceed those of the last full year of tlie Coalition by f 1, 320,000, or exactly 33 cents per head of the population. Is this wbat the Re- formen of Canada erpeoted of their leaden ? The capital expenditure since 1872-3 has been as follows : 1872-8. 18784. 1874-6 MlgcellaneouB Pub Works $ 658.000 $1,526,800 92.731,600 Pacific Kail- way 561,800 810,200 1,646,200 Intercolonial Railway... 4,827,200 8,417,700 2,045,500 North-west.. 63,200 Nil. Nil. Debts allowed Provinces.. 13,859,000 4,927,00» Nil. ' ■ ' 119,864,200 110,181,700 t6,923,200 1875-6. 1876-7. Miscellaneous Public Works $2,803,600 $4,590,200 Pacific Railway.... 3,334,1)00 l,t)91,000 Intercolonial Raihvy 999,000 1,318,400 North- West Nil. Nd. Debts allowed Pro- • vince Nil. Nil. ' 1^... . $7,142,200 $7,599,600 The national debt, according to Senator Macpherson's computation, which has not been challenged, has in- creased in this way : 1872-3 $129,743,400 1873-4 141,1(53,500 lS7i.»^ 151,06.3,400 l-l„ o 161,205,0 Interest in 1875-6 6,753,200 Interest in 1876-7 7, 132,400 Total increase in the interest on the debt since 1872-3, $1,583,000. Deducting what are known as the " assets " — they are not realizable — Mr. ; Caktwright brings out the debt table as follows : 1867 $ 75,729,000 1808 i 75,757.000 1869. 75,859,300 1870 78, 209, 700 1871 77,706.500 1872 82, 187,(»00 1873 99,848,500 1874. . . . . , ., 108,32,5,000 1875. . . .?:: ■ 116,008,400 1876 124,551,600 1877 Hj .^>j«- . . 133,000,000 1*' I In behalf of th» Government it is often urged that a large increase iii tho national debt occurred under the old Administration. True, the Reform Party condemned the increase under the old Government. The theory of a de- fence of this kind — and it is a favourite one with the Ministerialists in the House and country — is that they are justified by chat which they condemned in others. Between 18G7 and 1873, the debt increased |;24,000,000 ; between 1873 and last year, f 33,000, 000. As Mr. Mackenzie and his friends con- demned their predecessors for increas- ingthe debt 624,000,000 in six years, their defence uf the increase of .^33,000,000 in their own four years is n laine one even on their own peculiar theory of justification. The largest increase under the old Government tork place in 1872-3, when the debt rose nearly $18,000,000, But of this increase nearly $14,0(X),000— as will be seen by reference to the Capital Account table above — consisted of the debts of Ontario and Quebec, and otiier Provinces which, by Mr. Tilley'.s Act of May, 1873, the Dominion assumed. By the li2tli and 118th sections of the British North America Act ;i siipidated amount of debt, viz., ^(32,500,000, was assumed by the Dominion, and the ex- cess ot debt over that amount, viz., $10,500,000, devolved on Ontario and Quebec, the forraer becoming responsi- ble for five-ninths, or $5,833,000, the interest of which at 5 per cent. , viz. , $291,000, became an annual charjje on the revenues of Ontario, and was paid from 1868 until the Tillbt Act placed tlie whole $10,nW,0(X) on theDimiiiiion. Debts of other Provinces to the amount of nearly $3,500,000 were assumed at the same time. This accounts for the enormous increase in the debt in 1873. But as a matter of fact it is not an in- crease at all, being merely a transfer of the debts from the Provinces to the Do- minion. As to the other increases be- tween 1873 and 1867, this is what Mr. Caktwrioht told the London financier* in his circular of the 19th October, 1876, when he was negotiating a loan there : " The whole of the debt has been inonr- red for legitimate objects of public utility. * * * The indirect advan- tage from these public works has already been found in the remarkable rapidity with which the commerce and the material pros- perity of the Dominion have been devel- oped ; while a substantial increase in the direct returns may fairly be expected from the improvements now in progress and to follow the steady progress of popa- lation and trade. • • • • The revenue has shown a continuous sur- phis during each year since Confederation, in 1S67, although it has in the interval been charged with much heavy expenditure of an exc rt\-i ,i^.jf.. 'i ;H'" *' ,'*''**' '' '* 11 r M. t»i !i HS' tp ' , . 'ft v)jM»f ft ;j i^ Jn "'.f'^'S •*->* ,.'iii\> /*■!)- jff- >" . ■ I *■ .4% i»I*£i ;i? ;i *. -..-'."f vT >-» MS'' 18 ,, ■ tl 1.-. trjr-tia?!* ! EXTKAVAGANCE AND CORRUPTION J fit" l^llh'. -«rd ¥".' f / (rfiif* iiffi' l! Whbn a party has been out of office a quarter of a century, it is only in the nature of things that its supporters should be hungry for the spoils. It is possible that when Mr. Mackenzie took office, it was his determination to guard the Treasury closely and keep faithful watch over the public expenditure. Events show, however, that he was soon overpowered by his rapacious followers. Some of these had spent lavishly of their means in maintaining hia cause. Others, deserters from the Conservative side, wanted pay for their treachery. All were eager to get at the loot ; and if the Premier ever reckoned on keeping them at arm's length, he sadly over- rated his own moral strength, and un- derrated the tremendous influences with which they bore him down early in the day. THE SURVEY PAYMENT TO MR. FOSTER. Among those who had served the Re- form Pa,rby by betraying Sir John Mac- DONALD was ex-Senator A. B. Foster. His services had been of the dark-lan- tern order, resembling in moral degree those rendered by McMui-len of Chica- go, and NoRRLS, Mr. Abbott's confiden- tial clerk. Mr. Mackenzie had scarcely warmed hia chair in the Public Works Department, when Mr. Foster appear- ed for hia reward. He was a railroad man, a railroad contractor and specula- tor in railways. The Premier, who had the magnificent water-stretches scheme in his head at this time, determined to give Mr. Foster a contract for building the Georgian Bay branch of the Pacific railway. According to hia Opposition jiriiiciples, the letting of a contract of this kind required the consent of Par- iament ; but it was there and then given to Mr. Fcster, the urgency of the ciise, as the Premier afterward pleaded, and the necessity for the early construc- tion of the branch rendering it incon- venient to wait for the assent of the House. A few months prior to this, Mr. Mackenzie was railing at the old Government for coniemplating the let- ting of a contract before the route had been surveyed by the Government engineers. Yet he gave Mr. Foster this contract, although the line had neither been fixed nor surveyed. Mr. Foster was to begin construction on the Ist June, 1875, and have the work com- pleted by the 1st January, 1877. The contract also provided that Mr. Fostkr should be paid $10,000 a mile, and 20,- 000 acres of land per mile, and, in addi- tion, that he should be paid interest on the sum of $7,500 per mile for a period of twenty-five years after the comple- tion of the road. The contract also provided that in the event of the contractor failing in his agreement to complete the work by the time specified, the Govemor-in-Council should be at liberty to take it out of his hands and complete it at his expense. It also provided as follows : -5f H " llie Governor-in-Counoil in the event o( his annulling this contract (for failure oa the part of the contractor) may direct the MiuiHter tu proceed to re-let the same or uiy part thereof or employ additional workmen, tools and materials as the case may be, and complete the works at the ex- pense of the contractor who shall be liable for all extra expenditure which may be in- curred thereby, and tht contractor sliall forfeit all riijhl to the per cetUage re- tained and to all money which may be due 07i the works or aecuritiei* depusited. " To bind this, Mr. Fostbk deposited the sum of §!S5,000 in the Ontario Bank as security. He began the 8i'"/ey of the loiite and proceeded in a desultory lashion until early in 1875, when, befoi-e he had struck a blow at construction, tie abandoned the work and the contract. It was then Mr. Mackenzie's duty to confiscate Mr. Foster's securities or pro- ceed with the work at Mr. Fosteu's ex- pense, as by the contract provided. But Mr. Mackenzie did not do his duty, nor fulfil the law. He not only handed Mr. Fosteb his securities back, but i)roceeded to entertain his claims for indemnity and paid haying the contractor for failing in his agreement. The only defence put forward on be- half of the Premier is that the $41,000 was paid on the certificate of Mr. »Sand- FORD Fleming, the chief Engineer. It is not contended that Mr. Mackenzie did not violate his old-time principles in letting the contract without the con- seat of Parliament. Nor that he did not disregard wantonly the terms of the contract itself providing for the forfeit- ure of the contractor's claims and secu- rities in case of failure. These (jues- tions are bogged, and a wretched pie* advanced that Mr. Fluuno certitiod that ¥41,000 worth of surveying had been done. But this ia a false plea. This ia what passed on this branch of the subject before the Committee : ,n " Dr. Tupper— The order-in-Council re- quires the engineer to certify before pay- ments are made. Do you hold yourself re- sponsible for the payment of this $41,000 ? " Mr. Fleming — No, not at all ; I nevei- certified for the payment." So that the Premier not only let the contract without Parliament's approval, and not only broke the law and the con- tract in entertaining the claims of the conti actor after he had failed even to begin the work of construction, but paid hun for work of which he had no know- lodge. As a last excuse Mr. Mackenzie puts forward the following letter from Mr. Flkaiino : " 1 have made every enqmry int.© the subject, and feel assured that in the event of the Georgian Bay 'contract being pro- ceeded with, the expenditure incurred will generally be available in the prosecution of the work." ..n,--,.:^; ..n ■■ n-./J .r! ^t«>w0<) n year. But to men in Mr. Fostbb'h position it Ir a triflu ' 't-nd he wanted more. Ho waa given the contract for the Caiiada Cen- tral ^tennion, ruimins? from the village of Douglas to Burnt fjake, the eastern terminus of the Georgian Uny branch. The Minister of Public Works was au- thorized to make i>aynient8 on account of " rails delivered at any point of the *' line to be Cfmstructed t(^ the ex- " tent of 75 per cent, of the " value thereof," provided only the contractor was making such progress as would show that the contract would be completed by the lat Januaiy, 1877. Mr. FcsTEK, before abandoning this con- tract also, had dumped 1,900 tons of rails, not " at any point of the line," an the contract demanded, but at Renfrew, ten miles distant from the line. For these rads Mr. Mackenzik paid Mr. Foster $08,000, after he had abandoned the work and broken his agreement to complete the road by the Ist Jamiary 1877. When the matter came before the House, Mr. Mackenzie defended himself by laying the responsibility on Mr. Flemino. -ffaiwarnf, 1877, p. 343: "Mr. Haggart -On what was this money paid ? On rails ? " Mr. Mackenzie — I have iuat mention- ed what it was paid on. I was stating that the order-in-Council provided for the pay- ment of 75 per cent, of the value of the rails, as they were delivered at any point on the road. " Mr. Haggait — But no rails have been delivered at any point. " Mr. Mackenzie —The hon. gentleman ■ays no rails have been delivered at any point on the road. I can only say, in re- ply, that the certificates of the engineer declaring that thoy were delivered are in the Public Works Department. I never made an examination to see whether the rails were delivered or not, but I am bound under the law to make payments upon re- ceiving such certificate that they have been delivered,' and these certificates were of ooorse presented. " And again, page 344 : "'*'^"' ^" ' '/ " Mr. Mackenzie— I can only state, in reply to the hon. gentleman (Mr. Hag- gart), that the certificates of the engineer will be produced. I was not aware that they were called in question. I do not know that I ever saw them. The certifi- cates came in the usual way, and were paid in the usual way by the officers of the Departnipnt. I have no reason to believe that Mr. Fleming, who is a very careful officer, would give false certificate*." Here the rcspo. ibility was thrown directly on Mr. Flemuno. Now, if 76 per cent, of the value of 1,900 tons of rails was 1^8,000, their full estimated value must have been ^5,000, or over $44.50 per ton. But these were not steel, but iron rails of a very poor quality. Mr. Miihsen, the Inspector, testified as follows before the Committo : "Mr. Kirkpatrick— What was the quality of the iron t A. It was not exactly the best of iron. I have seen better. " Mr. Kirkpatrick — Have you ever seen worse ? A. I don't think I have. " Q. What is the character of the rails ■ A. The section is gooa, but I consider the quality poor. i^ it. !i i' .. v?^'i>.>t',' "Q. Did they break ? A. They broke sometimes. One was broken by dropping it. Some were broken by the excessive heat. I could not say exactly whether it was a correct description of them to say that they were a thin crust of iron and an inside of rubbish and slab. The rails are not much used, only one train a day running on them. They are not all worn out yet. The value of the rails was, he chonght, from $30 to $31 a ton at Montreal. He did not know what the freight from Montreal was. arTj.r-j)if ;A(>:fii The freight to Renfrew from Montreal would be $2 a ton at the outside ; but suppose, freight included, they were worth $30 a ton as they stood in the pile, the value of the 1,906 tons would be $08,010, yet the Premier, on Mr. FusMnm'H certificate as he told Parlia- ment, paid Mr. Foster 868,000 as being ki 76 per cent, of their value. It turned out, however, that Mr. Fohtbb h:id bor- rowed 2Si7 tona of the jiile, whic to this day have never been rotumed. True, he gave security for the borrowed rails, depositing with Mr. Mackenzib bonds of the South-Eastem railway to the face value of £6,000 Htji^. Without con- sidering the question of Mr. Ma»!kknzie'h right to lend public property, suffice it that these bonds were utterly worthless. The South Eastern railway was a wild- cat scheme, and its bonds never had a value. The Premier was asked about this in Oomniittee : "Dr. Tapper — Would you be surprised to learn that these bonds cannot l>e add for anything ? " Mr. Mackenzie — I have no reason to be Kurpria'^d or pleased, for I know nothing .-iboat them." - nm i ■■■_.. The sum and substance of the whole transaction was that the country paid $C8,000 fur 75 per cent, of the value of 1,906 tons t»f rotten rails worth at the outside when now §68,600, and held worthless b uds in the place of 227 tons of them. For all of which, said IMr. Maocbnzib, Mr. Fleming was respon- sible. But assuredly Mr. Fleming was not responsible for the Premier entertain- iiify Mr. Fo8tek'.s clanns after he had abandoned the work, nor for lending Mr. FosTEE the 227 tons, no: cor ac- o.ipting the worthless security. Nor, as Mr. Fleming told the Committee, was ho responsible for the valuation of the rails claim. He was iisked if he certi- fied the payment of the $68,000, and his ansvrer vv.-i-s : "No. My authorities for this payment were partly tha order-in-Council and partly verbal lu-slruciio7is from the MiaLittr of Pithlic Work^i, to whom Mr. Poster made application for paymeutfor tiie rails." As a matter of fact Mr. Fleming, as he told the Committee, d".d not know what quantity of rails Mr. Fostek had de- posited, nor where, though he hod heard that ho had deposited some. He wrote a note at whose reipiest the evidence does not show — stating that Mr. Fostbr had depooited a quantity ')f rails (num- ber of Urns not given) al(mg the Canada Central Extension. Mr. Mackenzie wrote on the back af this note : " This " may be paid in accordance witli the " order-in-Co' ncil, 4th November, 1874. " See journal, 1876, page 219.— A. M." And Mr. Fostek, who had abandoned his contract, who was entitled to no- thing, pocketed the $68,000, while the taxpayer secured 1906—227 " 1679 tons of old iron rails and £6,000 worth of worthless bonds. Just how this sum of $68,000 was arrived at, or who and on what basis it was figured out, the evi- dence does not discluso. This closed Mr. Foster's account. He had secured $109,000, and evi- dently considered that he had been pretty well paid for his services, for be retired forever from the Public Ac- counts. * :: yi)„" MR. J. D. EDGAR. So long as the Reform Partj conti-ols either the Dominion or the Ontario Treasury, the taxpayer may look for tliis patriot's name in the Public Ac- counts and be sure to find it. Every new defeat at the pulls only gives him a new claim. It wo'dd be money in the national pocket if Reformers and Con- servatives woidd agree to return lum to Parliament by acclimation for life. In January, 1874, he was defeated in Monck. He showed the fresh, gaping wound to his leadei-a at Ottawa and was at once despatched on Government ser- vice and at the country's expense to the Pacific slope. His bill will be found in the Public Accounts ff '• 1874 part 2, p. ir)5 and Public Accounis for 1875 part 2, p. 178 :— " • - 1S74 — J. D Edgar, account of ex- penses to British Columbia $5,000 1875— J. 1). Edjfar, expenses as dalegate to Brinish Columbia 1,000 $6,000 '■.I?- ;f i;. il iH it;! jiil •i2 I Other than that he gorged his poetic soul on the grandeur of the Yoaeniite, ^ and then let it loose in a neries oi let- . tevs to the Globe, there is no record of what he did for his $60 a day. .« -- ,; MR. DAVID MOORE. Mr. MoouE, at one time u Conserva- tive., joined the Reform party, and ren- dered signal service to Mr. Blake in South Bruce in 1867. He is a farmer and a good line, but when the Reform leaders gained office he suddenly tiu-ned contractor. He wanted his reward. In January, 1874, tenders m ere called for works in connection with Goderich harbour, and Mr. Moobe, armed with this little note from Mr. Blake, pro- ceeded to Ottawa : " ToKONTO, Jan. 2nd, 1874. " My Dka.r Mackenzie, — David Moore, of Walkerton, asks me to inform ycu that ho is about to tender for the Goderich works, and I do so accordingly. I told my friend Moore that an iotroduction was unneces- sary, as you would Jet the work fairly with- out respect of persons. „, -fii h, 1 " EDWARD BLAKE." The four lowest tenders for the work were: Tolton $182,630 NeiW. 200,375 Ellis 21-2, 1.5.-) Moore 212,540 Mr. MooKE got the contract from Mr. Mackenzie. When the m?,tter was brought up in tlie House Mr. Macken- zie explained that the cntract was not given to Tolton because hia tender was so low that it would have involved him in ruin, and further that nothing was known of him as a contractor. But Tolton s tender wa« 20 per cent, higher than the price for which similar work had been done in the same har- bour with profit to tlie contractor and to the satisfaction of th^ Government. Further he had agre'^d to sub-let the 'dredging portion of the work to that treminent contractor, the late Mr. John Brown of Thorold, at a profit on his ten- der of $12,000, and he had good reason to beUeve that h*» would have cleared at least a like sum on the re- mainder of the work. Ab to Tolton's obscurity as a contr -tor, he waa well known to the Government as the con- tractor who, a few months prior to the Goderich tenders being submitted, had completed the works in Meaford har- bour to the satisfaction of the Public Works Department. His sureties, Sheriff Sutton and Mr. Henky Tolton, were well known in Bruce as men of means and repute. He had received the highest possible commendation from the baak with which he does business, and the bank manager's letter had been comnmnicated to the Department. Lastly, Mr. David Stirton, then one of the Reform members for Wellington, sent a telegram to the Premier on the 4 th January, 1874, as follows : " To Hon. 4 lex. Mackeime, Minister oj Public W^rks, Ottawa: " I understand that John Tolton, of Walkerton, has tendered for the Goderich harbour works. Mr. Tolton, is a thorough, Ijractical, honest, and reliable man, finan- cially able and accustomed to the construc- tion of public works. The securities named are reliable, sound men. " D. STIRTON." : Yet in the face of this evidence as to Tolton'.s ability to fulfil his obligations and his experience Jis a contractor, the Premier gT,ve the contract to "My friend, " MooiiE," who in all his life before had never contracted for a public work. MooKE uhus got his reward. Ho was a poor m;\n before he got that letter from Mr. BiiAKE ; he is to-day the owner < ' a handsome property in Bruce for which it iii said he paid §50,000. ADAM OLIVER AND HIS FRIENDS As hungry a Refonner as any that hailed the advent of the Party to power was Mr. Adam Oliver, of Ingersoll. An ignorant and boorish man, Mr. Oliver fJte on hig ten- had good ould have >n the re- Toiton's wa8 well the Con- or U) the itted, had aford liar- e Public sureties, TOLTON, mer of ieived the from the neas, and ad been artment. in one of llington, ■ on the nister oj Dlton, of Gouerioh horough, n, finan- Jonstruc- ecurities rON." ce as to igations tor, the friend, jre Jiad work. was a ir from er < ' a hicli it BNDS ' that power 1. An UVEU t is nevertheless gnfted with much shrewd- ness, while his whole life has been one big job. Mr. Joseph Davidson, one of his partners, is also an accomplished schemer, and the remwning member of the firm, Mr. P. J. Brown, is the law adviser for the concern. These three men Iiad acquired a considerable quan- tity of land in the Lake Superior region. In 1872-3 they secured lot No. 6 in the Township of Neebing, 136 acres in ex- tent, for $5 an acre, ov a total of nearly f 700, and later they secured a small por- tion of tlie adjoining tract which came to be known as the Town Plot. Intrin- sically, the.^e lands were valueless. The speculation limged altogether on the selection of the Supeiior terminus of the Pacific railway by the Government. If Prince Arthur's Landing were selected, Oliveu & Co.'s money would be lost ; if by any means the Government could be induced to ignoro the Land- ing and choose the Kaminibtiquia, a stream flowing through their purchase, the fortunes of the gentlemen from Ingersoll would be made. Mr. Oliver was at that time a member of the Local Legislature. Mr. Bkown, the law man of the firm, had figured prominently before the P'oton Com- mittee (if the Legislature, having been the person who secured Lewis, the valuator, and despatched him to Mr. McKellar who sent him up to that bulldozed Township. The speculators, it will be seen, had claims upon the party. In the fall of 1874 Mr. Mackenzie had to all intents and purposes given the Landing the go-by, and Mr. Mur- doch, one of his engineers, was then engaged .i captains doing business for him mivintairi that the Kaministiqnia is the better harbour, while sailors with qnito as uuich ex- perience and leas self-interest at stake stand up for the Landing. Possibly, then, Mr. Mackenzie preferred the Kaministiquia becauso he honestly be- lieved it wac the bettor water terminus of the two. Whetlier he did or not, however, does not concern cr ti.fi ^ct the subsequent events with which wc have to deal. FROM •' THE VERY BBPT AUTHORITY."' While Mr. Murdo(!H was examining the Kaministiquia, Mr. Davidson, of the firm, suddenly began to buy up the lots in the Town Plot, giving big fignrds foi them. This was in November, 1874. On being asked by a Mr. Clakk, from whom he bought five lots, what induced him to pay such an exorbitant price for land that was virtually worthless, he answered that he knew what he was doing ; that Mr. Mackenzie had told him the terminus was to be [ilaced at the Town Plot. He also produced a map wliich he ccld Cijlbk he had got from Ottawa, on which was marked what he said was the proposed Govern- ment reserve. Here is Clark'h evidence on this point as given in the blue book containing the report of the Senate Committee, 1878, p. 57 : Did Mr. Davidsou give any reason for purchasing then, after the sale? Yes ; he said he knew the terminus was to be there. It was not generally known whether it was to be there or at Prince Arthur's Landing. But he said the terminus was going to be there? Yes, "F "^"'^^.'^fi ' Did ho tell you how he knew it was go- ing to be there ? Yes. What did he say ? He said that he got his information irom Mr. Mackenzie. Information that the terminus was to be there ? Yes. Did he say at what place Mr. Mackenzie told him ? I remarked I thought it was not likely Mr. Mackenzie would write to him about the terminus ; and he said Mr. :S4 I f* 'i I I Mackenzie wa> in Toronto and had told him that. To satisfy myself- because I rather doubted it — I made enq liries, and found Mr. Mackenzie was in Toronto ftt the time. Thai was at what time ? The l*- Uer part of November, 1874. Did Mr. Davidson shew you any map that he had of the rail'.iay reserve there ? He did ; he came ii> and showed me a map. It was coloured the same as the plan exhibit "A." rid he say where he got this map. He said he got it from Ottawa. Was any person present when he showed you this map ? Yes, Who was it ? Mr. Savigny, of Toronto, a surveyor. THB MYSTERIOUS FA*) .SIMILE MAP. After this conrersation Davidson and Clark went to Mr. Savigny's office, which was in the same building and on the siime floor as Clark's. Savhiny also owned lots in the district. Clark left Davidson in Saviony's office, and here is SAVKiNY.s account of what then passed between him and DA\^DS0N — tdent p. 68 : ,'■ . j-<.: ;.■■ You knev," of John Clark selling his land to Da'adson .' Yes. Did it excite any surprise in your mind thct Oliver, Davidson & Co. should be giv- iug $9j a lot 'or wliat you paid only $4 or $5 ? I certainly thought it was a very large price. Do you know bow much <-hey gave John (.'lark for his lots ? Merely by hearsay ; I do not think they paid the same prices for all. I think they ranged from .$(30 to $100. I (1(1 not know the prices exactly that were paid. How did you know that Davidson had bought John Clark's lots ? From Davidson and Clark, both. ,.-^ . , ,,,^ ,,,j ^^ ,.,, ^,,. Did you make any remark or enquiry of I'avidson about those lands having this high value ? Of course ; I certainly dia, I \sas aware at the "^ime that a good deal of talk had been going about the terminus of the I'ailway. I never dreamr i for a moment that the terminus would be located at tb«^ lo'vn plot at Fort William T was always under the impression that it would lie at Prince Arthur's Landing ; therefore, 1 con- sidered it was very absurd that he should give such a high price >vithout knowing where the terminus should be. When did this conversation with Mr. Davidson occur? At the close of the sale in the end of November or the beginning of December, 1874. Did he ma'-o any reply to you ? Yes ; he said he was not such a fool as to buy land without knowing the value of it, and what he was going to do with it, ' ',. *"„';. Did he give you any explanation of it ? He said it was going to be the terminus of the railway. Did he say he thought it was going tc be the terminus, or he knew it was going to be the terminus ? He said he knew it from the very best authority. ' "' ' 'V " ' " Did he tell you what that authority was? He showed me a m'^j)— a tracing. Of what ? A tracing of a map of the town plot, showing the amount of land re- quired by the Government for the terminus of the railway. Was it the plan of the whole town plot of Fort William ? No ; a part of the town plot. Was the plan exhibited to you a rough slietch that anyone might mak.j, or was it a regular plan made by a professional draughtsman ? To my mind, it was a trac- ing from a finished surveyor's plan, such as I was in the habit of getting from the Crown Lands Department — a regular trac- ing from the plan. . t tr j A.nd you say the lots required for the railway terminus were marked on that plan ? The block of land re^iuired for the railway terminus was marked on the plan, and coloured a " lake " or pink colour. Did you ask Mr. Davidpon where he got the plan ? Yes ; of course I did. I thought it very curious that he should have it. How did he explain that he came in jiosaession of it ? Ho said he got it irom the very best authority ; that it was per- fectly authentic. ■ .'trttt;"*^^ ' Did he show it to you m being a thing that evei- body could see, or was it I r 'piT!,* 25 would I>e at efore, 1 con- ; he should >ut knowing 1 with Mr. of the sale beginning of on ? Yes ; i as to buy e of it, and ition of it ? ;erminus of joing tc be *s going to ew it from authority tracing, lap of the f land re- 5 terminus ole town art of the a rough Dr was ii )fes8ional ia a trac- lau, such from the lar trac- [ for the on that I for the u plan, our. '*• Siere he did. I ■ should ame in it irom 'a« per- i thing nras it confidential T No ; he Mid it waa confi- dential. At page 69 Savigny tells bow he made a tracing of Davidson's tracing on a map in his office. He is asked about this : — When did yoa do t^t; on the aame day '—Yes. , , ,-, ,, . , ,,„ ,».,.,„,,r k, /, . ;: • With Mr. Davidson's permission ? — I do not know that I asked his permission ; but he did pet object to it. I had a plan of the town plot, and I merely marked the outlines with a pencil on it. Was the drawing of the reserve that yc made on your plan, taken from Mr. David- son's plan, or was it merely from your re- collection of Mr. Davidson's plan ? — Mine was a copy of the plan in the Department — not properly a map — a plan which I re- ferred to whenever I had any business in that locality, and I copied the reservation from Mr. Davidson's plan into my own. Did you do it directly from Mr. David- son's plan, or did you do it from your recol- lection of it ? — From the plan. At page 72 the Committee press him still further on this point, and elicit the significant fact that Davidson's tracing corresponded exactly with the reserve afterwards announced by Mr. Mac- kknzib: '''■'^'•'^' ' •"'■>■/">• MH-v' You had a map, showing the town plot, hanging upon the wall of your office ? Yes. And upon that map you ma-'ked, in pen- cil, the reserve from the plan shown to you by Mr. Davidson ? Precisely, Did Mr. Clark tell you that he had learn- ed that information from Mr. Davidson, or did you communicate it to him first ? He told me first that Mr. Davidson had shown the plan to him in confidence. I was rather surprised when he told me that Mr. Davidson had a plxm of it in his pocket. Said I, " Did he show it to you ?" he said "Yes ;" I said, " He has shown i!; to me ako." Was Mr. Clark present during the con- versation with Mr. Davidson about this matt«r ? He might have been present sometimes. Mr. Davidson used to comn daily into our office. There was a good deal of ejccitMnent at the time about the c terminus, and they used to come daily into onr office to talk it over. , Were you present when Mr. Davidson showed the plan to jlr. Clark ? No ; I was not. ' . ' ' How did he satisfy you that the land marked on the plan as being reserved, waa really authentic ? He told me that he had it from the very best authority. Have you had it verified since ; that the , land he had marked on his map was actu- , ally the reserve that was afterwards taken t ■ Yes. They corresponded exactly. WHO WAS "the vehy kest acthority?" Now it is a singular fact, and one '' strongly confinnative of th j theory that Oliver & Co. received advance informa- tion as to the intended reserve, either ' from Mr. Mackenzie himself, as David- son told Clark, or from " the very " >>e8t authority," as he told Savkjny, that while Davidson was thus walking about Fort William buying up the Town Plot with this mysterious map in his pocket, Mr. Murdoch's report condemn- ing the Town Plot and recommending the McKellar farm as the si^e, was then lying in the Department at Ottawa,, nor was it until the 23r(l January, 1875, that this report was set aside and the selection of the Town Plot officially made public. In his evidence before the Senate Committee in 1877 Mr. ^ Sandpord Flbming swore the Town Plot was not oflicially v hoson imtil then ; and he said the Government,, i.e., Mr. Mac- . KENZIE himself, self cted it : Was the terminus of the Pacific railway . located at Kamini»tiqi,ia by your advice t > A. It was fixed in a cousultation with me , (on the '23rd January, 1875) and I made no ' objection to it. . ,'.'', W/u) selected tlie terminus point ? Who located it f A. The Oovemment selected it. But who located t— it particular point ? A. The Government selected the terminus i of the Pacific railway on Iiake Superior. Who soleoted the particular piece of ground ? A. I did ; I recommended thai, |, particular pieie shown on the plan befor>j;9 § M the Committoe, colonred reu, aa land re- quired for the Pacific railway. < I The Towa Plot was surveyed and laid down on the map, the Govemmant Jixed vpon the Town Plot aa the terminus, and Mr, Fleming recommended a certain portion of the town should be taken for the ter- minuf; ? A. Quite so. Could any land have been obtained further down which would have suited the purpose of the railway as well as Fort "William ? A. I do not doubt it at all. From whom, then, did Davidson in November, 1874, get his information and the fac-simile of the Government's map of the terminus reserve which the Government, in the person of the Min- ister of Public Works, selected in 1875. Not from Murdoch, who had reported against the Town Plot and in favour of the McKbllab farm. Not from Mr. FLSMiNa, who knew nothing of the Kaministiquia, and who did not recom- mend nor select it. From whom then \ It must indeed have been " from the " very best authority. " A BLt NDEE OR A CRIME ? The selection nf the Town Plot was a blunder, even supposing it was not a crime perpetrated in the interest of the ravenous speculators. Murdoch, as has been said, recommendetl the Mc- Kellar farm, which even as late as 1875 was offered at $75 an acre. Mup.- doch's report to the Government was dated the 8th September, 1874, about two months before Davidson began to buy up the Town Ploc. His reasons for prsferring this site will be found at lengtli in his evidence before the Senate Committee, pp. 49-56, and are thus summed up, with the other evidence on i,ne subject, by the Committee, p. 3-4 : " If, notwithstanding this, the Govern- ment decided that the Kaministiquia af- forded ilic beat site for the terminus of the Canadian Pacific railway, your Committee submit that the best point on the bank of the ri"er has not been selected, whether either the cost or the coBvenienca of the teiminal grounds be considered. The height of the banks was considered by the engineer in charge of the surveys, Mr. Mur- doch, a serious objection to the present aite ; and he, in his report to the Govom- mei^t, suggested that a place further down the river towards its mouth should bo selected for the terminus, to obtain lower levels and longer navigation in the fall of the year. No notice, however, appears to have been taken of his recommendatioc. Your Committee is of opinion that had the suggestion of the local engineer been acted upon, a better terminus would have been obtained below the town plot, and at a much smaller cost. The line of railway could have been made to terminate on the river bank at the McKellar farm without increasing its length or passing through the town plot, while *he river navigation would have been shortened : and the locality named possesses all the requisites for an important railway terminus. The obtaining of the necessary land would also have been greatly facilitated, as only one or two lot- owners would have had to be dealt with, whereas, at the town plot there were fifty- fire, the arranging with whom occupied two valuators aad a solicitor for months {.t a large expense to the country. Thi evidence did not disclose any reason which, in the opinion of your Committee, can be accepted as satisfactory, for deflecting the railway in order to make it enter the town plot of Fort William at the western limit, tiud ti en to pass through all the front lott: to the eastern limit. From the McKellar farm towards the mouth of the river, the bank is of a convenient height for docks, and the land is favourable for terminial grounds ; the river flows in s straight course to the lake, making the nt. . igation safe and easy, whereas between the point named and that adopted for the terminus, there is a sharp elbow in -he river which necessarily increases the awkwardness of navigating it. The dis- tance from Murillo station — the first station west of Fort WiUiam— is as nearly as possible the same to the river at the McKellar farm, as to the tenninus at the tovra plot. For these reasons, your Com- mittee is of opinion, that the terminus was not judiciously cho«en." i-f-y- ■■■—■ r n THE speculators' HARVEST. Having thuu secured the terminus at the Town Plot adjoining their Neebing township lots, having thus been enabled to buy up many of the lots there through information and even the posses- sion of confidential maps obtained from " the very best authority;" having thus sowed, Oliver and his fellow conspira- tors bogan to reap. In acquiring land for railway purposes, arbitration is al- ways resorted to. ITie owner is tendered a fair and reasonable price, and if he objects the matter is submitted to arbi- trators. But in this case the Reform Govenmient ignored that wholesome system, and employed two valuators, Mr, Wilson, surveyor, of Mount Forest, and Mr. Robert Peid, stationer, of London, with Mr. P. J. Brown, of Oliver, Davidson & Co. , as their legal adviser ! Of what followed the Senate Committee report says : " In 1876 when the valuators visited the town plot for the first time oflftcially, the film of Messrs. Oliver, Davidson K-- Co. and their connectious were the prir.cip.^1 owners of the lots which were takon for the railway terminus. Notwithstanding this fact, the Government appointed a member of that firm, Mr. P. J. Brown, a lawyer, to act with the valuators. His duty, it has been stated, was to advise upon titles, but his instructions did not restrict him to that special duty. The evidence of the valuators shows that he did advise them, and that hi: !kdvice when given was, perhaps, not unnaturally, in favour of the lot owners, and against the Government. He gave it as his opinion that the Railway Act oi 1868 did not apply to the Canadian Pacific railway. So far did he go in advising adversely to the Govern- ment, that the Prime Minister testified before your Committee that, when his at- tention was called to the subject, he ' was very much surprised, ' and that he ' wrote a somewhat angry letter to Mr. Brown.' It hM been clearly proved that Mr. Brown was an interested party, and your Committee submit that he, there- fore, ought not to have been employed in any capaoHy in association with the valuators. " The Act of 1868, above referred to, provides with reference to arbitrations for land required for railway purposes, as follows : " The arbitrators, in deciding on such value or compensation, are authorized and required to take into nonaideration the in- creased value that would be given to any lands or grounds through or over which tha railway will pass, by reason of the passa^ge of the railway through or over the same, or by reason of the construction of the railway, and to set off the increased value that will attach to the said lands or grounda against the inconvenience, loss or damage that might be suffered or sustained by rea- son of the company taking possession of \jT using the said lands or grounds as afore- said." The Senate report then goes on tc say : " In the opinion of your Committee the prices paid for land taken for the railway in the town plot of Fort William and in the adioining lot. No. 6 of the township of Neebing, were exceedingly and unaccount- ably extravagant. The to m plot was a tviwn only on paper whei. ?t was selected fOi" the railway terminus. Previous to th it, the regular price at which ^the On- tario Government sold half-acre lots was four dollars, and, but for the railway, these lots would be of but little more value to- day than they were then. For the land taken from Oliver, Davidson k Co., and others, the Government paid at the rate of $600 to $600 per acre. In 1872 or 1873, Oliver, Dividson & Co. purchased lot six in the township of, Neebing, adjoining the town plot, containing 136 acres, for about five dollars per acre. Your Committee submit that tne enhanced value of this pro- perty was due to the placing of the ter- minus where it is. Yet for eight acres of it the Government, advised by the valua- tors, paid about five hundred dollars per acre, being about four thnusond dollars for eight acres, or over three thousand more for the viight acres than Oliver, Davidson & Co. paid for the entire lot of one hundred emd thirty-six acres. " lrS^ ... 28 I THE NEEBINa HOTEL. But Oliveb, Davidson, & Co. were not content with securing $60,000 of public money for their 110 acres of waste and intriuc'cally worthless land ; they wanted more. In the fall of 1872 they had erected a saw-mill on what is known as Island No. 1 in the Kaministi- quia, and in 1875 found ^'lemselves the possessors of a vast quantity of slabs, culls, and poor lumber for which there was no ready market in that region. Accordingly early in 1875 they conceived the scheme of throwing these slabs and -rolls into the similitude of an hotel, erecting the structure on land which they knew the Government would re- qxiire for railway purposes, and selling hotel and land at a big profit. To give : tone to this minor conspiracy, a com- j pany was formed to build the hotel, un- ! der the style and title of the Neebing l Hotel Co. , but in reality the firm of ' Oliver, DavidoON, & Co., was the '] conipaay. Mr. Davidson engaged J. | D. HsNDBKSON, a builder in a small way in Toronto, to go up and build the hotel ; and on his arrival at Fort William, Henderson learned to his astonishment that he was Vice- President of the Company, and held $2,000 of stock in the concern. He wouldn't have believed this had it not been recorded in Oliver, Davit jn & Oo. 's prospectus, for he had not sub- scribed nor promised to subscribe a cent, nor had he been asked to become Vice-President. Henderson found Olia'er in charge at Fort V/Illiam, and on asking him for the plans and specifi- cations, Oliver said he had none, but taking up a board or shingle sketched a rough outline, and txjld Henderson to improve on that and make any altera- tions he liked, but to "make it large *' enough." (Senate Committe report, 1878, page 109.) Henderson went to work and out up the lifcructure, which Oliver, Davidson & Co. sold to the Oovernment in 1876. He kept an ac- count of some of the material used, and on comparing it with Olivbr, Davidson & Co. 's bill to the Govern- ment, found a striking discrepancy. From his evidence, pp. 109-112, we com- pile the following table, showing the ex- tent and variety of this discrepancy r -> Boons ITEMS. Used in Charged to Structure. Oooernment. Doors 10 44 Cost of each door., $1.50 $2.75 Pairs of sashea .... 1 - 43 Cost of sashes. . . . 60c. $1.50 Tins ot paint. .... Nil 16 Glass— panel 48 I'-i: > 223 Glass — boxes Nil 23 Lumber— feet 45,000 or 50,000 65,752 Estimate of cost. . . $3,000 $5,029 In estimating the actual cost of the structure at $3,000, Henderson (p. 113) said this " would be a big price for it." The valuators accepted Oliver David- son & Co.'s bills without examining them, and when before the Committee, Mr. Wilson admitted the following discrepancies. Senate Report, 1878, p. 1-8 : -' '. - . ,;.: ■-■ , ■ Used in Charged to i,, : .,;, Stri^rture. Oovernment, tiiine — ^barrels. . ..2 rod s, ISft.x 16ft. plastered 10 Boiled oil— gals. . . Nil. r? :.;i;26' • Turpentine— gals. . Nil - •- -v 10- <« Glass 4 windows $92.52 Shmgles 80ft.x24ft. shingled 46,000 Flooring- feet.... 1,920 15,872 Saah fasteners.., ;„j,i(,v .JfU 4 doz. Tin r* ," , , .n ■ ^ *®®*- Locks .' ■" lo, 81 Knobs.... 10' 81 Mr. Wilson also discovered whUet being examined by the Committee that' the lots on which the structure was built had been charged to the Government twice over. There were two lots for which the Government paid $250 each on buying the reserve, and on selling this alleged hotel, Mr. P. J. Brown,.; the Dominion agent and law adviser to the valuators, charged his principal, the Government, $500 for their own land ! How the valuators acted in this matter'-' is clearly shown by their own eAddence. ' ' Mr. Wilson's evidence p. 9 : 1; Did it occur to you that it woaid b«> rial used, Olivbr, I Govem- icrepancy. , we cora- ig the ei- pancy : ^:irf^ik •.' Charged to iouernment. 44 $2.75 ■■ 43 ; $1.50 ' 16 223 23 65,752 $6,029 10 10 B92.52 1 t advisable to have got an affidavit from Mr. Oliver, or from Mr. Flannagan, his book- keeper, as to the quantity of material that was furnished for that building? Mr. Oliver assured me that that was the very least that they would accept for the build- ing. Did you not think it would have been important to have had that verified ? I <;hink so. These accounts include a large quantity of material that was not, and could not have been used in the ]>uilding — did you, as valuator, take any steps to see that these articles not used should be secured to the government, or what would become of them ? We took no steps to secure it, not knowing that the Government would accept the building at those prices. ESTIMATES OF COST. Mr. Rkid, the other valuator, tells a similar story. He gave a verbal de- scription of the hotel, with some of the measurements, &c. , to Mr. Dcrand, an experienced builder in London, who estimated its cost at $2,600. Mr. Francis Law, manager of tne Law Building and Manufacturing Company, of Meaford, who examined the struc- ture, hurriedly it is fair to say, esti- mated its cost at $3,044, p. 149 : Material $1,860 Labour 900 Contingencies 284 $3,044 Mr. Thos. D. Tayloe, civil engineer, who examined the building and took careful measurements of it, made an esti- mate as follows, p. 134 : 7,200 feet of flooring at $18 per M .§129 60 42,427 feet of "all kinds" at $10. 424 27 28 squares shingles at $3 84 00 280 squares plastering at 15c., one coat 42 00 14 doors at $3 42 00 13 windows with glass at $2.75. . 33 75 16 windows without glass at $1.50 , 24 00 $781 62 For labour 600 00 Total.. . /vm'i.^>V $1,381 62 But this estimate does not include hard- ware, nails, hinges, locks, etc. Includ- ing these, Mr. Taylor's estimate would not exceed $1,500. AN ILLEGAL CLALM. But the gross overcharging of which Oliver, Davidson & Co. , or rather Mr. Brown, the Dominion agent, was guilty, is not by any means the ugliest feature in this transaction. Clearly if Oliver, Davidson & Co. erected this structure on lots which they knew to be in the Government reserve, they were guilty of an attempt to extort money under false pretences, and their claim was vitiated and bogus. For if they knew the land would be required for railway purposes, they knew also it could not be used for hotel purposes. The evidence that they were well aware that they were building on land in the Govern- ment reserve is very strong. Hendeb- son's examination, p. 113 : Had you any reason to believe or had you heard before the building was com- menced, that the land would be required by the Government for railway purposes? After I was started. I was working on the cellar about the time when Mr. Mid- dletoUj the engineer up there, came along and told me it seemed to be foolish to be building a hotel there when the land was reserved for railway purposes. Was he one of the railway engineers? Yes; he was stationary engineer at the town plot ? Was he next to Mr. Hazlewood ? Yes. Did you report that to Mr. Oliver ? I reported thatto Mr. Oliver. Did Mr. Oliver seem to be aware of that before ? He did not seem to be aware of it before ''. Was he surprised ; what did he say? He said if it was a Government reserve the Government would have to pay a fancy price for the building. Did he tell you to go on with it ? Yea ; he told me to go on with it. And again at p. 116 : From the time that yon got notice from the engineer that the lots would be re- 1 "90 quired by the Government, did you feel that you were really going on with that hotel for the Neebing Hotel Company, or simply for the purpose of making up a bill against the Government ? As soon as I commenced to build I was bothered with . people coming along telling me that the building would never be a hotel, and I lost all interest in the affair afte e that. Several parties told me that the ground was re- served for railway purposes at that time. Was this before you had made much progress with the building ? Yes ; first when I had started excavating the cellar. Moreover, while this hotel was not con- ceived until June, 1876. it is on record that Mr. Davidson as early as Novem- ber, 1874, knew exactly what land the Government would require, and even had a facsimile of the Govenunent plan in his possession. • Even the valuators clearly saw the impropriety of paying Ouver, Davidson & Co.'s claim under such circumstances, and +}lAV ty^o/Ia a ar*c»/*^«»l *irtr\^*»+ +-^ 4-U^ Government on the subject, as follows : In the claim of the Neebing Hotel Company, we are not prepared to recognize the erection of this hotel, commenced in July, 1875, about six months after the reservation of the property had been made. They threw the responsibility on the Government, warning the Public Works Depai-tment that Oliver, Davidson & Co. had no legal claim, and ui^ing the Minister to demand Olivkk ife Co. 's affi- davit as to the value of the hotel (Mr. Rbid's evidence, p. 47). But the Gov- ernment, without securing the affidavit, and ignoring the opinion of the valuators as to the illegality of the claim, paid Oliver, Davidson & Co. 's bills at sight, $5,029. THE BILL IN FULL. The bill paid ^y the country for the lots and the hotel will be found in the Public Accomits for 1877, part 2, p. 234 : Bank of Montreal — Payments to sundry persons for land pur- chased at Fort William 169,389 31 ji. Eeid, services and expenaee, ,.,^ land purchases. . . .«» .f^,* , ....^■. 1,599 50 Hugh WiUon, services and ex- penses, land purchases 4,337 32 P. J. Brown, services and ex- penses, land purchases 1,824 38 Simdry persons, advertising ... . 1,557 75 r*;-; $68,708 26 SUMMARY OF THE FACTS. „ From what has gone before, these facts are patent : (1.) That in November, 1874, Oliver, Davidson •& Co. were aware that Mr. Mackenzie intended to select the Town Plot the site for the terminus, although his selection was not made oflB- cially until January, 1875 ; and that with this information in their possession they bought up lots adjoining their own property which they afterward sold to the Government at an enormous profit. (2.) That Mr. Davidson declared that he obtained this advance information from Mr. Mackenzie ; and at the same time exhibited a tracing p'lowing the proved to be an exact facsimile of the map or plan subsequently issued by the Public Works Department. (3.) That in selecting the site, Mr. Mackenzie ignored the report of his engineer recommendiag the McKellar farm property, and chose Oliver, Davidson & Co.'s property in the face of his engineer's grave objections to it. (4.) That while the McKellar farm was oflered at $75 an acre, Oliver, Davidson & Co were permitted to charge $500 an acre for lands intrinsi- cally, and but for the railway, werth- less. (5. ) That Mr. Mackenzie ignored the arbitration system in acquiring these lands, and appointed two valuators and a solicitor and adviser in the person of Mr. P. J. Brown, of the firm of Oliver, Davidson & Co. , the vendors. (6.) That by the advice and at the instigation of this interested agent, the Act of 1868 providing that the fictitious values lent to property by the proposed construction of a public work through or 81 4,337 32 1,824 38 1,557 75 168,708 2« 'TH. these facta 4, OtIVEK, that Mr. the Town terminus, made offi- and that possession their own ■d sold to us profit, ilared that iformation : the same owing the ile of the led by the site, Mr. )ort of his [cKellar Oliver, 1 the face US to it. I.AR farm Oliver, litted to intrinsi- /, werth- orcd the ng these tors and erson of firm of '■endors. at the snt, the ictitious roposed •oughor near it, shall not be recognized as in- trinsic values, was wholly ignored by the valuators, and the fictitious values recognized and accepted. (7.) That Oliver, Davidson & Co. were allowed for an alleged hotel which they erected on land well knowing that the same was required for railway pur- poses ; that the Public Works Depart- ment set aside the report of the valuA- tors that this claim was illegal, and paid Oliver, Davidson & Co. 's bills, which were largely bogus, without requirmg, aa recommended by the valuators, an af- fidavit of verification, and without com- paring or checking them in any way. (8.) That by these corrupt, illegal, and fraudulent proceedings the country was compelled to pay nearly $70,000 for the terminus site, whereas the McKellar farm site, superior from an engineering point of view, could have been secured for little more than one-tenth of that sum. THE defence. The defence set up in behalf of the Government by Senators Scott, Simpson, and Haythorne, the minority on the Senate Committee, is as follows, Senate Proceedings, 1878, p. 461 : Ist. That the selection of the Kaministi- quia River as the western harbour of the Canada Pacific Kailway on Lake Superior was most judicious ; inasmuch as the said river affords ample space for wharfage, where vessels may He in deep water, pro- tected from all winds, and discharge or load alongside the rails. 2nd. That access to said river in its pres- ent state is neither difficult nor dangerous for ordinary lake steam vessels, drawing ten feet, or even more, and that it may be rendered both easy and safe for vessels (drawing 13 feet, by the expenditure of a comparatively small sum in dredging. 3rd. That the dredgingoperations already efiected on the bar have proved .successful, and demonstrate beyond doubt the practic- abihty of obtaining 13 feet of water there, with a channel 6G feet wide, by the expen- diture of tl8,060, and that any additional width of channel which may be deemed necessary may be obtained by a proportion- ate outlay. On this and other points con- nected therewith, your Committee may be allowed to refer to the valuable evidence of Colonel Kingsford, who was specially em- ployed to report on the capabilities respec- tively of the Kaministiquia and Prince Arthur's Landing. 4ih. That, in vipw of 11 is prospective in- crease in the size and draft of vessels navi- gating the lakes, the Kaministiquia may, without difficulty, be adapted to such in- crease, its bed being composed of alluvial deposits easily removed by dredging. 5th. That several master mariners and engineers of large experience have given in evidence their opinions, and agree as to the unrivalled capabilities of the Kaministi- quia, and its special adaptation for the pur- poses contemplated. Captain James B. Symes gave his er - perience as to the periods when he hud wa- tered or left the river and harbour of laun- der Bay, and confirmed it by extracts from his ships' log books extending over nine years, from 1869 to 1877 inclusive. •, . 6th. That an ample area for station grounds, conveniently situated on the river's bank, has been seciireu on favour- able terms, and that in the opinion of your Committee the valuators appointed by Gov- ernment performed the difficult duty of treating with the owners of a number of town plots for the pui chase thereof, with discretion, firmness and integi'ity. 7th. That the rival port at Prince Arthur's Landing, though it undoubtedly possesses many advantages for ordinary traffic, is not so well adapted for a harbour and terminus as the River Kaministiquia and grounds adjacent ; and in this opinion your Committee consider they are fully sus- tained by the valuable and independent testimony of Colonel Kingsford. This is also the line of defence adopted by the Ministerial press and by Minis- terial stump speakers. It is merely, as will be seen, a defence of the Govern- ment's coiirse in preferring the Kamin- istiquia to the Landing. No defence of 82 f ;!• that is necessary, beoanse no comipt or illegal aot or motive is charged in that connection. The charges begin where this defence leaves off, viz. , at the selec- tion by the Premier of the particular site on the Kaministiquia and the acts of his Department and its dealings with OuvEK, Davidson & Co. then and thereafter. To break the force of thf contention that Mr. Mackenzie ought not to have appointed Mr. Brown, of Oliver, Da- vidson & Co., the adviser of the valua- tors, it is contended that the Premier was unaware of Mr. Brown's connection with the firm. To that the answer ii. that he ought to have known it. Every- body else knew it • it was notorious. Indeed, in February, 1875, only four months before he appointed Mr. Brown, the Premier on behalf of his Sovereign Lady signed articles of agreement for the construction of the Canadian Pacific Telegraph line from Lake Superior to Red River between "Adam Oliver, of " the Town of Ingersoll, County of Ox- " ford, Province of Ontario, lumber " merchant ; Joseph Davidson, of the " City of Toronto, County of York, " Province of Ontario, lumberer ; and " Peter Johnson Brown, of the said " Tovna of Ingersoll, Esq., carrying on " together the business of contractors, *' as partners under the name, style and ■ •* firm of ' Oliver, Davidson & Com- "'PANT,' of the first part, and her " Majesty Queen Victoria, represented " herein by the Minister of Public " Works of the Dominion of Canada, of " the second part," etc. It is also maintained in defence of the Government that the whole case is a frivolous one, that the overcharges were small, the fraud insignificant, the ille- gality slight, and the loss to the country paltry. But this is not a satisfactory justification or defence. In the first place $70,000 is not an insignificant sum as the times go to a country that has to borrow monejr to pay the interest on its debts ; and secondly, the Minister who permits his friends to fob $70,000 or $7,000 or $7 of public money is, on prin- ciple, as unfit for his position as though he made over to himself the entire con- te|xtB of the Treasury. THE FORT FEA.NOES LOCK. Mb, Hugh Sutherland, of Orillia, once ran on the Reform ticket in North Simcoe and was defeated, though it is said he spent a considerable amount in ' ' putting down bribery and corruption " with lots of money." Hence his claim on the Party. At the time Mr. Mackenzie was en- amoured of the " magnificent water- " stretches " scheme, he conceived the idea of building a lock at Fort Frances. His object no doubt was to make Rainy Lake, Rainy River and the Lake of the Woods a connected section of these water-stretches, his policy then being to run the Pacific railway along the line of the Dawson route, and attach it to a waterway at Sturgeon Falls If that policy had been pursued, the lock at Fort Frances would have given anuninter- rup'-ed waterway from Sturgeon Falls to tl'.e North-West Angle of the Lake of the Woods, a distance of 177 miles. But instead of running the railway along the Dawson or Southern route, and utilizing the waterstretches, Mr. Mac- kenzie changed his mind and chose a northern route which lies 100 miles north of Fort Frances. Nevertheless having once begun the work at Fort Frances, the Premier has persevered in it, though his own engineers have told him, not perhaps in so many words, that it is a costly and ii])surd blunder. Ml-. Mackenzie gave the work to Mr. Sutherland without survey or estimate or Parliamentary authority, and ordered it to be done, not by contract, but by the day's work system, Mr. Sutherland, as Government Superintendent, employing day labourers. This was contrary to all law and practice. If the lock was & ■.Ai i I S3 part of the Pacific Railway undertaking, ) it ought, by the Pacitic Railway Act, to have been done by contract. If it was not a jiart of the Pacific Railway , then the Premier ought to have obtained Parlia- mentary authority for the expenditure upon it, and let it out to contract. It is part of the Pacific Railway, or it is an ordinary public work ; in either caae Parliamentary authority was ignored, and the contract system, enforced by the Pacific R^iilway Act and the Public Works Act, set aside. The work was begun in June, 1875, and Mr. Sitthekland, in his e\ndence before the Senate Committee, 187H, p. 21, estimates its total cost at $250,000. In No"5 ember, 1875, when Mr. Macken- zie had determined on taking the Pacific Railway by the northern route, he seems to have realized the uselessness of proceeding further with the lock, and (Senate Committee, Suth- erland's evidence, p. 27-28) telegraphed Sutherland to close the work. The telegram read : "Close all canal works " at Fort Frances ; suspend all pro- " ceedings." At that time $73,940 had been spent on the work. In April, 1876, however, the Piiblic Works Department (Return to House of Commons, 1877, No. 88) instructed Mr. Sutherland to resume the work. What induced Mr. Maokenzis to change his mind, to order the resumption of a work which he had closed when by changing the route of the railway, he had rendered it useless, we do not know. It is possible that he felt that his reputation as a " practical" head of the Public Works Department would suflFer if lie abandoned a work in which $74,000 liad been sunk. The maintenance of his reputation, there- fore, involves an additional loss of «17G,000. ■VIDENOB OF THE GOVERNMENT ENGINEERS. That the work is useless, the evidence evan of the Government engiiaeers clearly proves. Here is an extract from the •videnoo of Mr. Marcus Smith, C.E., the second in command to Mr. SANDroRD Fleming, page 1-2 : "ut have you understood that tho Fort Frances lock was being constructed for the purpose of being used in connection with the railway ? I understood so from the re- ports, and I have a map showing why the lock was commenced. It is a map of the Dawson route, from Mr. Dawson's plan. I now produce a tracing of it, which I found in the oflBce. All that T know is from read- ing the reports. This plan shows the line of railway as originally intended, as well as the present located lino. Tlie dotted line shows the route originally intended, and it was in connection with that line that the Fort Frances lock was commenced. If that line had been carried out, this canal would have been of immense im- portance, but since the change of the line northward, it has lost its importance in connection with the Pacific railway. When I say "lost," I mean it has greatly diminished or lost its chief im- portance 80 far aa the Pacific railway is con- cerned. Will it be of any importance in conneo- tion with the Pacific railway? It may possibly, and will probably be made of some importance. I can better explain it on the general plan of the Canadian Pacific railway, published under the direction of Mr. Fleming. Explain how the lock can be of any im- portance in connection with therailway. The plan now produced, is a plan that was printed two years ago— in 1876, It wa» made by Mr. Fleming, or under his in- structions. It shows the course of the line from Lake Superior to the Pacific coast. The black portion shows the sec- tions of the lino under contract. There is a gap marked in red between English river and Keewatin (Rat Portage. ) That gap is about one hundred and eighty-five miles in length between the two portions that are under contract. The difficulty in nut- ting that under contract is its inacceasi- bility, as you can only get at it from each end. From Fort Frances you can reach ui arm of Rainy Lake on the north side, which is navigable to a certain point that connects with a stream, and a chain of I M ■mftll Iskea, which form a good oanoe roui^ to the very centre of that portion of tha line which is not yet put under contract. That route could be mode available to a certain extent, when that sectioii is put under contract, for the contractors to get in iupplies. There are eight or nine port- ages in it, and it can simply bf considered as a canoe route. It ia the oi.ly meana of access, as the country is very rough and rocky, and it would coat a ^,Teat deal to build a common road through it. Provid- ed this section were put under contract, supplies could be got in from Fort Frances by canoes over this route. The Manitou Lake route I think they call it. Inasmuch as this is only a canoe route, what necessity is there for building a lock for steamboats at Fort Frances ? The two are incompatible, certainly, as regards their capabilities for traflfic. I presume, if the canal had not been commenced and con- •iderably advanced before the line was changed, the lock would not have been built. Is it not a fact that for the purpose of getting in provi- ons the lock at Fort Frances would only cause an additional portage? Yes. • ' '" ■• • Will it nut take as long a time to pass a canoe through the lock as to make the por- tage ? I think not ; it is rather a rough portage, if not long. It takes more time to tranship goods than to get a vessel through a lock. 1 ask you whether you consider it is 'i! Gnomical and expedient to build this one irge lock at Fort Frances simply to con- nect with a canoe route ? I would not re- com.mend a lock to be built simply for that purpose. For the purpose of commerce will this lock be of any use whi*tever in connection with the Pacific Railway ? Not in connec- tion with the railway. Ia the meantime, during the construction of the railway, it may be of some use. Allowing the Manitou route to be as good as you describe it, the Fort Frances portage unimproved would have added little or nothing to the difficulty of getting up there ? It would not have been very great. It is a very limited means of get- ting in supplies, simply by canoea. And you are restricted to canoes there, •re you not ? Yes. The evidence jf other Government en- gineers corroborates this, the fact being established that the 8250,000 is being sunk in a lock 100 miles south of the Pacific railway lino ; and that the only use ihe work can be put to during the construction of the railway is that of affording lockage for canoes, the con- tents of which would otherwise have to be carried over the portage a distance of 2,015 yards. THE DEFENCE. No defcaco is offered in behalf of the Premier for tliis waste of a quarter of a million. It is sometimes said that the work was a mistake, and that mistakes will happen, &c. ; but why did he perse- vere in his blunder, and add $170,000 to its cost after he discovered his mistake, and stopped the work in November, 1875? As an excuse for his not consulting Parliament before undertaking the work, it is maintained that the lock was part of the Pacific railway scheme, and not a special work, and the fact that the money spent on it was taken from the Pacific railway appropriation is quoted in proof. Granted. Then under those circum- stances Mr. Mackenzie violated the Pacific Railway Act of 1874 in having the work done by day labour under the direction of his officer, Mr. Sutherland, instead of by contract. There is no escape, be it part of the Pacific railway scheme or a special work requiring Par- liamentary authority. .i.^f",'^ <■■■■%!'■» ;^^;v>'.K». THE FORT PELLY WORKS. :'; . In 1875 the Government determined to erect barracks, etc., at Fort Pelly, their intention apparently being to make that spot the capital of the North-West Territories. They rushed into the ex- penditure without much consideration. i I u ana of get- )e8. 'I noes there, mment en- fact being is being ith of the the only during the is that of the con- 88 have to distance of half of the uarter of a id that the at mistakes id he perse- 8176,000 to is mistake, November, ) consulting igthe work, was part of and not a t the money the Pacific 3d in proof, se circum- olated the in having under the rXHERLAND, liere is no ific railway uiring Par- 3RES. ietermined 'ort Pelly, ng to make forth-West ito the ei- Bideration. i /i». The following tums were apcnt on this work : 1875. Publi« Acoou.jt«, part 2 p. 230 |28,S» 1876 Public AocounU, part 2, p. 269 33,966 -.. -.^ ■ ..,.,....., ;. -■ • 168,286 Early in 1876 they d«termi»ed to aban- don the barrack* at Fort Pelly and place barracks anl capital at Battleford. where the following sums have been spent : ■■ '■'-'' >- ' ■'••■ ■'■■I'v - ^ Barracks — 1876. Public Accounts, part 2, p. 259 9 S.OOO Public Buildings — 1877. Public Accounts, part 2, p. 246 26,430 Mounted Police Buildings — 1877. Public Accounts, part 2, p. 246 29,982 #63,412 It is worthy of note that Mr. Hugh Sttthirland was also the Government Superintendent at these works ; indeed Mr. SuTHEKLAND Superintends every- thing outside the jurisdiction of Mr. Thomas Niion between the Fort Frances lock, meridian 04, and Battleford, meri- dian 112. The $63,000 sunk at Fort Pelly 18 a dead loss, unless, which is not likely, somebody can be persuaded to take the empty buildings oflF Mr. Suth- erland's hands. .«.^,^; , ♦ THE INOONISH HARBOUR JOB. In May, 1873, the Macdonalb Gov- ernment let the contract for dredging and building a breakwater in Ingonish harbour to Mr. T. W. Mackenzib for th» sum of ^78,280. The work was to be completed by the 3l8t December, 1874. The contractor was to make good any losses which might be incurred by storms or other causes up to its full and final completion. If any addition was made to the work, the contrector was to be paid for it ; if any diminution, the amount was to be deducted. The Min- ister of Public Works was to accept the work on the oertiiicafye of the Engineer that it was fuUy completed. In April, , 1874, a few months after the change of Government, the job was transferred to John Romm and Jamkr McKay, Rom I being a brother of the then Minister of Militia. The work consisted of a break- I water 700 feet long, and the dredging of I a channel 200 feet in width and 15 feet, deep. The pa[)ers brought downto Parlia- ment in answer to orders of the House of the 16th February and the 19tli March, 1877, show that the new contractors — who assumed all the oon- ,'itii>nB accepted by the old contractor — did pretty much what they liked. They made no attempt to complete the con- tract by the time named, and got all sorts of modifications without a single doUai-'s reduction of the tender prio^, but rather a considerable increase of it. In the end of 1875 and the beginning of 1876 it was reported that storms had carried away portions of the work, and the local Engineer, Mr. Perley, was authorized to reduce ti\e longth of the breakwater to 600 feet, and put a tri- angular crib at the end of it at an ad- ditional cost of $2,000. Mr. Baillarge, another engineer, reported that the dredging was much behind, and that the contractors should not be relieved in any respect of their liability to the De- partment in the matter of enlai-gement of the channel. The grand result was that instead of a 700 feet break./ater, a breakwater only 565 feet long was built, and the channel instead of being 200x15 feet was only 60 x 12 feet. Yet, not only was the full price for the old con- tract, viz. , $73,280, paid, but Mr. Ross was allowed $3,643 for extras, and $1,- 975 was paid to the Government Clerk of Works, for services for which Mr. Boss was responsible inasmuch as they were rendered subsequent to the date by which he had undertaken to have the work completed. Why was such favouritism shown to Mr. Ross ? ImprimiH, he was the brother of the Minister of Militia. Secondly, he had a claim on the Party as the defeated candidate in Victoria, N. S. A vacancy having occurred in Victoria County in consequence of Mr. Teemaine's appointment to the Bench, Mr. Ross was wanted to run ir the Gov- ernment interest. Mr. Vau, manipula- ted the matter. On Ist Repf ember, 1876, Mr. Ross telegraphed to the Min- ister of Public Works that he desired to be lelieved of his interest in the con- tract, which Ms partner would complete. "Accept," he says, "if you think it " necessary to do bo." These words are surely evidence enough of the extent to which this contractor had placed himself in *he hands o2 the Government. He was their's to um as they pleased. On the 28th September he was relived, and immediately after he became a candidate and was beaten by Mr. Chas. Campbku.. Meanwhile, it appears the Public WorkB Department allowed the requested with- drawal of Mr. Ross to hang fire. If he had been elected the world would never have known but that it had been accept- ed. Defeated, however, Mr. Ross noti- fied the Government on the 16th Octo- ber that he was prepared to go on with his ccintract. And he was allowed to go on with it ; and, as has been already stated, not only drew the full $78,208, but $5,618 in addition. And thus another Party claimant was appeased at th-j country's expanse. W., f. 'Si' f < '- , Ji •' •• > " , . H •>. ■ ,{( i,; ... «'■ ., i .ft? 'iv? »ti>!»!fi ad? .'*H Y^.f' i4f%^ ■■" ' 'lU. ^ \ ■ • - '1, St, i- ' r M J', hi ^s- St'. -'r-i,'«t!<'r i.tl ,»'••« tttVt 1, , ^^j 7 Mal> »'lf ffc*; ani* r.' <1, ■** "jjs^^if, ■>.^= 37 ate I.L. rkfl th- he ver ipt- oti- ;to- ith , go Eidy 108, WAS '^^EUwVO'' ''';' ., ( ; 4,. f "m. ■* .iV n^^i. ' t; •imn I, iV ..tfilMliSf^vi-i ■ i-MiH. Vr'i;'; ."■■ v«' ■t;'; BROKEN PLEDGES AND VIOUTED PRINCIPLES. ■Hi- -•;;,:. .iifii;;;,. »■;* « * • » I In a speech delivered at St. Catharines in the fall of 1870, Mr! Mackenzie, then loader of the Opposition, said : " He " would never accept office upon any " consideration if in doin^; so he had to " abandon the least of the principles he " now professed. The man who taught " one thing in Opposition and an- * * other when he was in power, was a *' demagogue in whom thu people could " have no confidence whatever. ' THE COALITION PRINCIPLE At the great Reform convention held in Toronto in the summer of 1867, the Party aeclared itself emphatically iigainst d'alitions. At that time, it will be remembered, Confederation had jusi been accomplished on paper. A new era had dawned. The old Party differ- ences which had harassed Upper and Lower Canada from 1841 to 1866 had been healed, and three Reformers. Messrs. HOWX VND,MACDOUGALLandFER- quson-Blaik — two of whom had entered the Coalition Cabinet of 1864 with Mr. fiBORGB Bkown for the avowed purpose of bringing about tlie Union —hail de- termined to see that great work through, and so they continued to act with Sir John Macdonald and the Conservative Party. Mr. Brown, however, de- nounced them as traitors. Ho himself, influenc 1 by personal piqae, had de- gHirted the Coalition even before the T^riti::li North America A< t liad been uoiumitted to paper, and theneafter he considered it his duty to persecute his colleagues who were faithful to their trust, and endeavour to destroy the Ministry to which thcj remained true. THE PAETY DOOTBINE. The promulgation of the anti- Coalition doctrine was aimed at them. It read as follows : " That Coalitions of opposing poUtical panies for ordinary administrative pur- poses inevitably result in the abandonment of principle by one or both parties to the compact, the lowering of public morality, lavish public expenditure, and widespread corruption : And while this Convention is thoroughly satished that the Reform party has acted in the best interests of the country by sustaining the Govcument until the Confederation measure was secured — it deems it an imperative duty to declare that the temporary alliance be- tween the Retorm and the Conservative parties should now cease, and that uo Government will be satisfactory to the people of Upper Canada which is formed and maintained by a Coalition of public men holding opposite political principles." It was in vain that Messrs. .Macdooqall and HowLANU, on the one hand, and Sir John Maodonald and Sir Gbokob Cabtiek on the other, declared that the old jjarty lines had been effaced by the establishment of the new regitne, and that they were united in their policy of giving practical effect to the Union Act. In Local a£birs, Mr. Sandfield Mao- donald, Mr. RiOHABDB. ai)d Mr. E. B. Wood, three old Refom era, were united B9B 88 with Mesaro. Cameron and Car- ling, two Conservatives, and the five agreed in a policy for developing the re- sources of the new Province. B it Mr. Brown and his followers mai.itained that because these men had differed in their political principles under the old system of government, there could be no real or boiid fide agreement between them under the new. Mr. Blake put this strongly at the Reform banquet in To- ronto on the 7th December, 1870 : ' On what ground did these men appeal to the country and conduct the Govern- ment of the Province ? Oh ! that they were good friends ; that all party differences had been settled. What a mockery upon an intelligent people is that statement ! Is it because one question, however momentous, is settled, that the principles which under- he the current of public opinion, and which are continually to be brought into action, die with the settled question ? The ques- tion is settled, but the principles are eter- nal and survive. " On the 3rd March, 1871, in a speech at Ilamilton, Mr. Mackenzie laid down with singular clearness liis views on the general question : "There are only two ways of carrying on a Government ; one is by having a Grovem- ment composed of men who are entirely in harmony on all leading subjects, or by a coalition of diflFerent parties who are deter- mined to carry on the administration of affairs in any way they can manage, the only possible way being to bribe a certain number of constituencies. * * * To procure good Government, it is necessary that a Premier should strictly select his colleagues from the party whose principles he intends to carry out. To bring into the Cabinet the member of an opposing party is Coalition." i.: , SCOTT. not necessary to i •■ " MR. R, W Having thus — it is quote their utterances at greater length — set their faces against Coalitions, and led the country to believe that they would form a pure Party Government, the Reform leaders were soon called on to form a Government in the Province of Ontario. On the 21st December, 1871 — nine months after Mr. Macken- zie's Hamilton speech, and a year after Mr. Blake delivered the speech from which a quotation has just been made — these two gentlemen succeeded Mr.' Sandfield Macdonai,!), and they took into their Cabinet Mr. R. W. Scott, a life-long Tory ! He was a Tory up to the very last, and if Mr. Blake's theory is correct, ' * principles are eternal and " survive." During the elections in 1867 the Globe (17th August, 1867) thus referred to Mr Scott : " We hope that, under the new Consti- tion our General and Local Governments may be able to get along without the log- rolling and traffichii 7 in ■ s which dis- graced the country u :.■■ i .id system. We trust that the Scotts * * * are gone, and we hope in a few years to see a better generation of politicians grow up." On the 19th of the same month the Globe further said : " Messrs. Richard Scott and H. J. Friel were nominated for the Local Legislature, and the contest between them will be close. Both are Roman Cathohcs ; the fonr.er (R. W. Scott) is John A. 's nominee !" From 1867 until 1871 Mr. Scott gave 221 votes in the Ontario Legislature and 208 of them were given againr tho Reform Party. In the sessiot ? r«.i" cember, 1871, when Sandfiftj 1 > DONALD fell, he was the Tory Speal ' «/ the Assembly, and stepped from the chu; ,. into Mr. Blake's Cabinet. Nay, after he took office he wrote to Sir John Madonald, for was he not " John A's " nominee <" telling him of the step he had taken, and assuring him of his con- tinued loyalty ! i 'U'-^fi!'; "»«•■> i •.tu.ii • THE DOMINION COALITH ' , , On the 5th November, 187? ;'"'ir John Macdonald resigned, and ti.. ^^eform leaders were called in to form a new Government. Their violation in 1871 of the anti-Coalition principle had in a measurelaccuBtomed them to its abuse, 39 he Mid they calmly chose half a doren I Tories for seats in their Cabinet, viz. : Mr. Scott, ,-■• Mr. Captwbioht, '"'' • Mr. Coffin, Mr. RosB, Mr. Burpee, Mr. A. J. Smith. Mr. Scott's record has been dealt with. Mr. Cartwrioht had opposed the Reform party all his life. During the campaign of 1872, only a year be- fore he was made Finance Minister, he was blacklettered in the campaign articles of the Globe as having been guilty of the following enormities : 1. Mr. Cart Wright voted to " reward foul murder " in th« North-West. 2. Mr. Cartwright, on the 18th Decem- ber, 1867, voted " for the adoption of a route for the Intercolonial railway, which he knew to be inimical to the interests of the Dominion." 3. Mr. Cartwright, on the 11th Decem- ber, 1867, helped by his vote to ' ' subvert fiP the Parhamentary safeguards respecting the control of money." 4. Mr. Cartwright, on the 5th May, 1868 " frustrated economy," having helped to vote down Mv. Holton's motion for the reorganization of tha Civil Service. 5. Mr. Cartwright, on the 19th May, 1868, voted down Mr. Blake's motion for the better securing of the Independence of Parliament. 6. Mr. Cartwright, on the 15th May, 1869, " delivered the Treasury into the hands of the most unprincipled of men, " by helping to vote down Mr. Mackenzie's motion respecting the Fortification Grant, as follows : — " That no sums shall be expended on such works until a separate estimate lor each work to be constructed shall be sub- mitted to Parliament, and that the amount to*be expended in each year shall be voted from time to time." 7. Mr. Cartwright on the 16th of June 1867, voted for the "violation of the Con- stitution" in the matter of the Nova Scotia subsidy. 8. Mr. Cartwright, on the 17th June, 1869, voted for the '* corruption of mem- bers of the House," having helped to vote down Mr. Holton's motion respecting the payment to Col. Gray for codifying the laws. ■',*■- 9. Mr. Cartwright, on the 19th June, 1869, voted for the " Chantry Island job." 10. Mr. Cartwright, on the 10th May, 1870, voted for the Manitoba Act, thereby becoming a party to " one of the most in- iquitous and blundering of measures." 11. Mr. Cartwright, on the 28th Febru- ' ory, 1871, voted against the abolition of Dual Kepresentation. 12. Lastly, Mr. Cartwright on the Ist June, 1872, voted for the " abdication by Parliament of its constitutional right to control the public expenditure on the Paci- fic railway," having helped to vote down a motion by Mr. E. B. Wood respecting the money asked by the Goverrment for the construction of the Pacific railway, as fol- lows :— ■\„,- ■...:,.:,'■., . f :.,4 .;.-,..... *r "That the $30,000,000 and 60,000,000 acres of land beonly disposed of by specific annual votes of Parliament from time to time as shall seem to Parliament right and proper, so that Parliament shall not be di- vested of its most important constitutional function, viz., control over the public ex- penditure of the coimtry." ;.|.r dpY" . Mr. Coffin also voted from 1867 to 1873 against the Reform party and on behalf of "Tory principles." So did Mr. Ross. In 1873 he even voted against Mr. Huntington's famous reso- lutions, and Mr. Burpee did likewise. In the general election of 1872 Mr. Smith thus opened his address to the electors of Westmoreland : " Gentlemen, five years ago you sent ifle to the Parliament of our country with all my prepossessions in favour of the Reform party. Having carefully watched both sides, I have been giving my support to the Liberal-Conservative party, and I tell you as an honest man, that if you choose me aa your representative again it must be on the understanding that / am still to support that party. " 4 »(! Here, then, were six gentlemen yr.xo almost uo to tae last moment had >p- posed those Reform principles which " are eternal and survive," and yet they were taken into a Cabinet of R«}- fomiers who denounced coalitions aa immoral and corrupt. If it be said, " O, yes, but they agreed with their Re- -form colleagues," d 1 not HOWLAND, MAOUouaALL, and Fbrouson-Blair, and Sandfibld Maodonah), E. B. Wood, and Stephen Richards agree with their Conservative colleagues ( If the eternal principles survived in one case, they survived in the other ; and if Reformers bj ~ «'."i» Tories formed an icmaoral alliai tersely the same is true of Torie^ ^ ♦-ing Reformers. :,'V,V A BLACK SHEBP. ' In his speech of the 7th December, 1870, Mr. Blake taunted Mr. Sand- FiELi: Macdonald with having joined a Party that had once upon a time during the pre-Confedoration heartburnings de- notmcfid him as unworthy of public c6n- lidence, Ac. : " But he has formed an alliance with the men who denounced him as unworthy o public confidence and alinoat of private associations in days gone by. " Has Mr. Macdonald forgetten the stories circulated about him by his present friends ? The tales with reference to Mr. Poupore and Mr. De Belief euille ? Doea he not remember that they charged him with attempting to buy the support of Mr. Har- wood by tendering an office in the militia to his relative Mr. DeBellefeuille ? Does he forget the charge made by Sir .John Macdonald that he got the support oi Mr. Poupore by buying his property ? I would like to know how Mr. Macdouald, the sin- uer of 18(j4, is the saint of to-day. None of these charges have been retracted, and are yet hanging ovdr his head. So much with reference to tlie aatecedents of the Administration. I ask now what you oould expect from such a union, what progeny from such an unnatural allianoe ?" In 1875 M. Cattchon became a mem- bor of th" i'> most hebil^'ss of God's crea- "is • .' .ii *i. ♦ • TEE NUMBER OF CABINET MIN- ISTERS. For years after Confederation the Re- form leaders declared that thirteen Min- iaters were too many. They advocated economy in those days, and led the peo- ple to believe that they could and would cond\ict the affairs of the Dominion with less than thirteen Cabinet officers. At London, on the 24th October, 1870, Mr. Mageenzib said : ' ' While the finances of the Province were formerly administered by one Minister, we have now four. One, who i° supreme, is Hincks ; the other, Tilley, is Minister of Customs ; Morris, is Minister of Inland Revenue, and another gentleman is Re- ceiver-General. Now, what I contend for is, that there is no necessity for this ampli- fication of the Cabinet. There is no neees- aity for a Cabiuet of thirteen ! The United States has a population of forty millions, a vast territory and vast concerns to manage — still they get along with seven Ministers, and one Secretat-y of the Treasury conducts all the financial affairs." Mr. Blake weh strongly opposed to Ministers holding ofiioe without port- folios. In the House of Conmions, 27th of November, 1867, he said : " It is necessary to prevent, by stringent enactments, the possibility on the part of the Crown of tilling the House with more than the necessary number of executive officers. It is wrong to argue that because a member of the Executive does not re- ceive a direct salary from the Crown, there- fore he can be added to the Executive Council with impunity. If that argument were correct, any number of such officers might be created, and the whole House controlled by placemen who nominally are -^ aervants of the Crown !" Yet when these ivio gentlemen suc- ceeded Sir John MACDONAtn in 1873, their Cabinet was composed not of thirteen but of fourteen Ministers, Mr. Blake himself being " added to the " Executive Council with impunity " and without a portfolio. It is contend- ed — this is Mr. Blake's arguineut — that there are now seven Provinces where there were only five, and that the work of governing the country is heavier now than then. 3ut in Mr. Mackenzik's words, if seven Ministers can govern thirty-six States and four territories with a population to-day of 45,000,000 souls, why should it take thirteen Ministers to govern seven States and the North- WbsL Territory with a population of 4,000,000 people ? If the argument was sound then, it is sound now. DOMINION AND PROVINCIAL RELATIONS. In Opposition, the Reform leaders maintained that politically the Dominion and Local Governments ought to be per- fectly neutral, neither helping nor hindering each other. In announcing the policy of the Blake-Scott Govern- ment of 1871, Mr. Blake said : " The position of the Reform party in regard to the Federal Government is, that they argue against alliance as well as against hostility. Their position is this : — That the Local Governments should be per* fectly independent of the central Govern t ment, and should neither be entangled by alliance nor embarrassed by hostility. The independence of each of the Provinces is nee ssary for the working of tne Federal system." And addressing the Legislature on the 23rd December, 1871, two days after the formation of his Cabinet, he said, as re- ported by the Globe : ■■. ■ '■ The first point upon which i desire to state the policy of this Administration it with reference to whnt riay be called the extreme relations of the Province. My friends and myself have, for the past four years, complained that the late Administra- tion was formed upon the principle and the understanding that it and the Govemmer.* of the Dominion should work together — .t) i»iM t(*«trt»«->t )oimi uasJiJi {44 1 ;,.}, play into one another's hancLi — that they Bhould be allies. There exists, we think, a well-founded belief, at any rate a wide- spread belief, that that was the arrange- ment, and that it has been carried out. My friends and myself thought, and my Administration now thinks that such an arrangement is injurious to tie well-being of Confederation, calculated < o create diffi- culties which might be avc ided, and that there bhould exist no other attitude on the part of the Provincial Government towards the Government of the Dominion than one of neutrality, that each ( iovernment should be absolutely independent in the manage- ment of its own affairs. We believe that the Government of the Province ought not to assume a position of either alliance or hostility towards the Government of the Dominion." , Mr. Mackenzie, a member of the Government, thus addressed the electors of West Middlesex : " One strong point which he had urged against the late Government was that it was the creature of the Dominion Govern- ment. The WW Government proposed that no matter what Covernment was in power at Ottawa, the Government of Ontario would be free from all outside influence and power." . . , , . Previous to this, he brought the sub- ject up in the Dominion House : " It has lieen frequently asserted that there is a close connection between this (Sir John's) Government and the Govern- ment of the Local Legislatures. It is de- sirable tliat there should be no connection whatever between the Central and Local Governments, and I feel it to be my duty to bring this principle before the House." The "connection" complained of was the alleged alliance of the two Governments or rather of the two Premiers in their pc''-,ical ramblings through the country, liio Olobe was constantly complaining of this in this style ':"."^,"'^ ,, V,,^^.. . . •' We are now in a position to declare that the two Macdonalds have arrived at an understanding in reference to the coming Campaign. They are to hunt in couples and mutually to seek each other's well* being and success." Having established themselves at Ot- tawa as well as Toronto, these gentle- men proceeded with singular equanimity to do that which they had thus con- denmed in " the ^/Iacdonalds." Her* is a letter addressed by Hon. D. A. Macdonald, while Postmaster-General in Mr. Mackenzie's Cabinet, to Mr. MowAT, the Premier of Ontario, on the eve of the Local elections of January 1875 : .J . " Ottawa, Ont., Nov. 2l8t, 1874. " My Dear Mowat,— If you can possi- bly manage it don't issue a writ for Glen- garry to replace poor Craig. It would be very troublesome, indeed, for an election to take place now, and another in a few weeks. • • « ♦ j would like to hear from you as to the readjustment of the constituencies of Ontario, whether any changes are to be made in the Eastern sec- tion. I hope they will be left as they are. I am satisfied that you can depend upon the Eastern section supporting you to a man. We are all doing the very best we can do for you. ',;■'/ ',."'» " Yours truly, ,| " D. A. MACDONALD." Mr. Mowat did as requested, for Mr. A. J. Grant, who replaced " poor "Ckaio" as Local member for Glen- garry, wrote as follows to Mr. Mac- donald : •' VfiLLiAMSTOWN, Dec. 8th, 1874. „, " Hon. D. A. Macdonald. " Dear Sir, — * * * I am happy to state that the Government have decided not to interfere with Glengariy or Corn- wall in their redistribution bill at present. Now, sir, I wish to state to you that the people o! Charlotteburgh appreciate your assistance in getting organized, and in making a move towards making our objec- tion to the change known to the Govern- ment, as I believe the mepsure would have been brought before the House before we would have known the intention of the Government, had you not interfered. " Yours, with respect, •• A. J. GRANT.* m ■\U But why argue further ( Have not the Pominion and Local Ministers ' ' hunted " in couples" every picnic season ? Already Mr. Hardy, on behalf of the Ontario Government, has been out this season with Messrs. Mackenzie, Cart- WBiOHT, and Lauribr. If " hunting in *' couples" was wrong in " the Mac- " DONALDS," how Can it be defended in their successors 1 '" ' ' ■ ■> ■fni^.tuiiimtt ♦ i*w PURITY IW ELECTIONS. In his Lambton speech — Globe, 25th November, 1873 — Mr. Mai, COOK. ' Mr. H. H. Cook, M. P. for North ' Bimcoe, a very earnest Liberal and sound 'Reformer, t'jstified as follows at his elec- '-' tion trial in 1874 : " In the spring of 1871 I canvassed the constituency for one month or six weeks ; in 1872 I canvassed the constituency for a , similar length of time. Speaking from ', memory, the expenses of my canvass in ■ 1871 would reach about $10,000; it might amount to $13,000, for I do not charge my , mind with $2,000 or $3,000 in election mat- ters. I have been examining my accounts for election expenses in 1872, and making a rough estimate I place them at $13,000 to $15,000 ; they certainly did not exceed the latter sum. That amount I paid myself ; I do not know anything about sums paid by my friends. In 1874 the expenditures Mrere much smaller, because I thought I t would have the sympathy of the people in ■i consequence of my expenditures in 1872, and that my opponent would have to carry the Pacific Scandal on his back. " Yet this gentleman, who thus frankly admits liaving spent at least $25,000 in two contests, is not disowned by the Party of Purity, but again chosen their candidate in North Simcoe. WALKER. Major Walkek, the Reform candi- date in London in 1874, also fell a vic- tim to the law. Mr. Justice Gwynitb, in giving judgment, said : " We can as readily believe it is possible for the respondent to have been immersed in the lake and to have been taken out dry as that the acts of bribery which the evi- dence discloses to have been committed on his behalf, almost under his eyes, in his daily path, with means of corruption pro- ceeding from his own headquarters, and from the hands of his confidential agent, could have been committed otherwise than with his knowledge and consent. * ♦ • It tS my opinion that the pre-arrangementa or undertaking, tacit or express, between the parties was that the respondent should be kept in ignorance of the particular separate and distinct acts of bribery com- mitted, while he was aware, as he could not but be, upon rational principles, that corruption and wickedness upon a most ex- tensive scale were practised around him on his behalf and in his sole interest. " So far as could be ascertained at the trial, this gentleman spent $26,000 in bribery ; yet he has not only not b-"c>n dis- owned by the Party of Purity but he is their candidate in the contest now pend- ing. The Reform leaders have humble follower in John Madiver, one of Major Walker's supporters, who in the 1874 election invited a friend to come to London and vote the Reform ticket in this strain : ' ' Come on John, " be sure and come. So come along^ " John, and put down bribery and cor- " ruption ; we've lots of money." M a leal if rewarding corruption. Dr. Hagarty, another of Major Walker's supporters, was reported by the Judges for corrupt practices. He admitted that he spent $500 or $600 in bribery and treating, yet he was not drummed out of the Party but appointed medical superir tendent of the North-West, with a salary of $2,200 a year. Mr. Fraser, the trea- surer of Mr. Kbrr's bribery fund in ■ t'J V , _l)l-tT Northumberland in 1874, admitted that lie had used money for corrupt purposes, and he was not punished by his Reform friends, but appointed assistant deputy Receiver-General in the Toronto office with a salary of $3,000 a year. ,, ., CAMERON AND OTHBBS. In South Huron in 1874, Mr. M. C. Cameron admitted to the Court that he ■pent from $10,000 to $14,000 in bribery by agents. The Superior Court to which the case was carried said : " There are strong grounds for thinking that the respondent, Malcohn Colin Cam- eron, was guilty of personal bribery. Had the judge who tried the case found the re- spondent guilty of personal bribery, we would have sustained the judgment. As it is, we will sustain his ruling." .1 . „ ■ Mr. NoRRis was unseated for bribery, and it was ascertained at the trial that he entered his corrupt expenditure in his ledgers as " missionary expenses." In his dying hours poor old Malcolm Cameron, elected for South Ontario in 1874, addressed a circular to his Party b^ging them to recoup him for the money he had spent in buying up the Ottawa Times in the Party's interest ; foi' $6,000 he had spent in contesting Russell, the said $0,000 " having had a " good effect in subsequently securing "that constituency to the Reformers ; " and for " the time and money " spent in carrying South Ontario. Hon. W. Ross, Mr. Mackenzie's first Minister of Militia, went down to Victoria, N. S. , for re-election in Decem- ber, 1873, and while denouncing the ■ Conservatives for their corruption, established a bribery fund of his own or as he put it " I placed with my Com- . : ** mittee a certain amount of money to *' relieve honedt, worthy men." THE ROLL. ...I. i.i.. .v> .. J*r ^rf committed personally or by agents in the 1874 election : Shibley, Jodoin, Mackay, Mc(}reKor, Chisholm, ^i.,,,; Irving, Norrifl, Devlin, Coupal, »'' /• Biggar, . .-. Murray, Aylmer, Wilkes, Prevost, Higginbotham, To sum up this branch of the purity i H^estion, the following Reformers were unseated for bribery and corruption Gushing, Tremblay, Macdonald (Oomwint» McNab, Wood, Cameron (S. Huron), Walker, Mackenzie (Montreal)^, Stuart, :'^'') 'm "There was, for instance, their neigh- bour, Mr. Walsh, getting his salary of $4,000 as a Railway Coram saioner ; Mr. McLennan at $3,000 ; Mr. John Hamilton Gray — vulgarly called ' Colonel ' Gray — he being one of the militia colonels — who had got his daily wages doled out to him on tlie pretence of do'ug something that they called ' making uniform laws. ' " At London, eleven days afterward, he said : *' It was n6t right that legal gentlemen should be employed by the Government while they sat in Parliament, and were supposed to represent independent con- stituencies. The Reform party wanted to put it out of the power of any Government to wield an influence of this kind." M". Blake was equally pronounced on this subject. In the Local Legislature he denounced Mr. Sandfield Mac- donald for buying blankets for the asylums from the firm with which Mr. Barber, the member for Hal- ton, was connected, holding that it was a violation c^ the spirit of the Independence of Parliament Act. In his Lambton speech, in November, 1873, a few days after hia elevation to i; i power, Mr. Mackknzib reiterated these doctrines, and pledged himself to them " During the last election, it ^/ill be re membered, I held two principles chiefly be fore the electors. No doubt, in the dis ousflion, my language touched iipon other topics ; but they were chiefly illustrative of what I consider the basis of our repre- aentative system of Government. The flrst of these principles was that Parlia- ment should be made thoroughly inde- pendent of all undue inHuence in their Legislative actions, and especially in- dependent of the influence of the Ex- ecutive. • ♦ • J accused the late Administration of having exercised all their energy, during the whole term of tlioir office, to prostitute the power of the (jrown in order to enable them to tamper witli the liberty of action of members of Parliament." ,,.A^-.:„ ,ii, .n ii- aris! This was a clear and distinct statement of doctrine. But what followed it / In 1875-76, Mr. A noun, Speaker of the House of Commons, received from Mr. Mackenzie's Government printing con- tracts which, having no job printing office of his own, he farmed out to Chubb & Co. of St. John, N. B., pocketing a comfortable niai-gin as "middleman." Here are Mr. Speaker's bills : 1875— St. John £'reeman, print- ing, &c ?7,196 31 t* ■■ — -- »• ••'t!ivi;..!«i,|^. -A A 18,126 31 1876 — St. John Freeman, print- ing, &c $8,984 70 " " " 538 00 «• '• " 680 24 I' ■"(::i-';0iy't . " " 61 iO $10,263 94 Total $18,390 25 .i : . The Halifax Citizen Printing Company, in which Mr. Jones, member for Hali- fax, and Mr. Vail, mtinber for Digby, were largely interested, also received printing contracts from the Government. Their bills were as follows : it i< 471 00 .U.1 It ; May 5tb, 1876. "John G. Sippell, C.E.,^ ^v ;7r? j " Montreal. "Sir, — I am directed to autho.ize you to purchase, until further orders, from Messrs. Frothingham & Workman, of Mont- real, such iron as may be required in con- nection with tho canals under your charge. (Signed) «'F. BRAUN, "Secretary." Now wh' directed " Mr. Braun to ATrite this lotter / The result of this wholesale violation of his Independence of Parliament principle was that the Premier was compelled in order to save Mr. Speaker and some of his best sup- porters from the pains of the law, to bring in a bill relieving them of the pen- alty. The stern upholder of the purity and integrity of the Commons had to whitewash the First Commoner and a dozen followers ! PARI.TAMENTARY CONTROL ■r v;„i, OVER CONTRACTS. Parliamentary control over the Execu- tive expenditure and over Government contracts was a leading principle of the Reform leaders when in Opposition. On the 6th July, 1872 {vide Globe report of the 7th), Mr. Mackenzie in addressing a meeting at Montreal said : -*' *® " The policy of the Liberal party is to make Parliamentary Government supreme ; to place the Cabinet directly under the control of Parliament ; to take trom them all power to use any portion of the people's money without a direct vote for each ser- vice. • • • • 1 might point out as an instanoe of the course the Liberal party will pnnue, that in Ontario when the Re- form Government oame into power, thoy repealed a portion of the act granting aid to railways, so that all grants had to re- oeive the sanction of the House before a farthing could be paid." At a meeting in Peel two months afterward, 6^^066 21st September, 1872, the Premier said : — " What had been the great issue during the election ? It was the same as during the Ontario election of 1871. It was sim- ply to decide whether the thirteen Minis- ters at Ottawa were to usurp Legialative as well as Admimstrativo authority — were practically to become a political oligi r^hy at the head of our system of (loverunient. They assumed to have the right to have the money not only voted to them as a Government, but voted to them in such a way as to give them the disposal of it according to their own views. " Now turn to Mr. Mackenzie in office. Hansard 29th March, 1875, reports as follows : .,:A„.^, „ Mr. Mackenzie " moved the second read- ing of the bill to provide for the construc- tion ^/! a line of railway from Esquiinalt to Nanaimo, in British Columbia." He said that the bill as prepared did not re(iuire that the contracts should be submitted to Parliament. ' ■«*'« ""»" -■'■'■ This contract involved expenditure amounting to upward of ^2,000,000. Mr. Irving — I hope this bill will not be taken as a precedent to justify a departure from what has always been understood to be a part of the general policy of the Gov- ernment, namely, to submit every contract for large works for the sanction of Parlia- ment. Mr. Mackenzie— That is not the general policy of the Government. Mr. Irving — The law does not require it, but it was understood to be the general policy of the present Government when they criticised the late Government for not following it in connection with the Pacific railway. Mr. Mackenzie — The hon. gentleman is mistaken. 50 •i- •5;,. .-.M>riT' ] Mills, Lornb Macdougaxl, and other Government supporters fled the House as tha division bell rang. Mr. Mackenzie also invested two and a half millions in jteel rails, years be- fore they were required by the public service, without acquainting Parliament of his intention or asking its approval. Yet in 1871, when the Ontario Leejisla- lature had voted $1,500,000 for railway purposes, Messrs. Mackenzie and Blake demanded to know \;here and how every dollar of -it was to be spent. In December, IJTl, Mr. Blake moved : ' ' We feel bound to take the earliest op- portunity of informing your Excellency that we regret that the course taken by the Legislative Assembly last session, under the guidance of your present ministers, in reference to the large powers given to the Executive as to the disposition of the Bail- way Aot Fund, and to state that in our opinion the propo'ial of the Government to grant aid to any railway should be sub- mitted to the approval or rejection of the Legislative Assembly, so as not to leave so large a sum as $1,500,000 at the disposal of the Executive — without a vote of this House, appropriating the same to particu- lar works. " And Mr. Mackenzie moved in amend- ment : " And we in'orm your Excellency that we have no confidence in a ministry which is attempting to carry out, iu reference to the control of the E,aid fund an usurpa- tion fraught with danger to public liberty and constitutional Government. " '/ '.hU Yet, this bold champion of the rights of the people's representatives to control every dollar of the public expenditure, pledged the counti to an outlay of fij500,000, without even acquauiting 'hem of the fact, or submitting the con- trasts, or asking the consent of Parliw- meni, until tLa bnrgain had been com* pleted, and the honour of the Crown pledged to his brother's firm for tha rails ! r „'.r- :l*;«Uf THE STEEL RAIL TRANSACTION. No subject, has been more discussed fiince Mr. Mackenzie came into office than his unfortunate purcliase of steel rails. A simple record of the facts in this case is all that is necessary to show, first, that the purchase was a most un- wise one ; next, that it was without the authority of Parliament ; and, last, that it was open to the grave suspicion of having been prompted by a spirit of nepotism. THE ADVERTISEMENT. It will be remembered that Mr. Mac- kenzie's first proposal in relation to the Pacific rail way was to utilize the water stretches. All the railway, therefore, to be built by him was about 45 miles from Lake Superior to Shebandowan, and about 100 miles from the North- West Angle to Fort Garry, and the Pembina branch of about 70 miles, making alto- gether a little over 200 miles of railway, which he had the immediate intention of building. In the fall of 1874, he adver- tised for tenders for some rr'Is, and the first suspicious circumstance connected with the matter was the manner in which these advertisements were insert- ed. It will be admitted that it was a matter of the greatest possible import- ance that the fullest publicity should be given to any invitation for tenders of this description. The manufac+urers of steel rails were in England. Their agents in ihifl country must of necessity communi- cate with them ; and unless, therefore, there was tinie for that communicaticjn, the trade at large umst necessarily be put to a very groat disadvantage. And yet ! i = i.-i J- we and that the advertisement was dated on the 29th of September, that its first appearance was in the Montreal Herald of the 2nd of October, and that it asked for tenders delivered in Ottawa on the 8th of October, so that there were only six days during which mer- chants coidd arrange to send in their tenders. No business man will say that that was long enough. The return brought down to Parliament states that the advertisement was inserted in the following newspapers : Herald, Witness, Natimial, Bien Public, Trade Review, Mercury, J-^urnal de Quebec, VEvcne- ment, New York Herald, Scotsman, Coal and Iron liecord, Globe, and Nation. Now, as a matter of fact, the advertisement did not appear in the To- ronto Globe at all. Mr. White, in a speech delivered at Winchester Springs, offered to contribute $100 to any charity Mr. Mackenzie might name, if the first advertisement could be shown to hava been published in the Globe. The Trade Hevlew had actually ..eased to ha pub- lished. The Hcotsman, Coal and Iron Record and Nation were all weekly papers, and the time allowed made it impossible that the advertisem-jiit, even if inserted in them, could have been of any use. The only papers, in fact, in which the advertisement appears to have been printed were the Herald and Witness of Montreal. The appearance of the advertisement caubed some interest aniong the merchants of Montreal, and we have the testimony of Mr. Thomas Workman and of Mr. Darlino that they repiesented to Mr. Mackenzib 52 :i' that the time waa altogether too short, and upon their representations it was extended. In his speech in Parliament in the session of 1875, Mr. Mackenzie cited both these gentlemen as having adTia(>d the purchase of these steel rails, Bpon the ground that the market was in ft favourable condition ; and yet they both subsequently declared the first they had ever heard of the matter was when they saw the advertisement in the Muntreal Herald, and protested against the sliort- ness of time allowed to persons to tender. That is the first serious inaccuracj' on the part of Mr. Mackenzie in his defence of this purchase. At their instance the time was extended, and, in the Herald of the 5th of October, the postponement notice appeared, giving up to the 16th of November to send in tenders. Even that postponement notice did not ap- pear in the Globe until the 13th of Octo- ber, five days after the tenders wei'e re- quired to be in Ottawa, according to the first advertisement. So much for the maimer in which tenders were invited for these steel rails. " ' <■'"-'' •' ■■■ .^y ;,V- •' •i./r. HivVr' THE TENDERS. Next, as to the contracts. Mr. Mac- kenzie has claimed that the lowest ten- der was in every instance accepted. The tenders which actually were accepted were as follows : Guest & Co. , $54 ; Ebbw Vale Company, $53.63 ; West Oumberliuid Company, $53.53 ; and Mersey Steel and Iron Company, $54.26. This last Company was represented by Coopek, Fairman & Co. , of Montreal, whose names have been unpleasantly associated with this transaction. It will be seen that their tender was 26 cents a ton higher than the highest of thv others, and 73 cents a ton higlier than the lowest. Each of these tenders was for five thousand tons, excepting that of Cooper, Fairman & Co., which was for from five to ten thou- aand tons. And yet the highest tender was awarded the contract for twenty thousand, while of the others, the Ebbw Vale Company got only five thou* sand tons. Guest & Co. ten thousand, and the West Cumberland Co. , repre- sented by Cox & Green, five thousand, the latter at their own earnest soUcita* tion being subsequently awarded an ad- ditional contract for five thousand tona more. The tenders were all in accord- ance with the advertisement for rails to- be delivered at Montreal : but +here was- another tender, of which no notice what- ever was taken, from Messrs. Doyen «fc Ramsden, of Antwerp, whose tender was sent in through McMurray, Fuller & Co. , of Toronto. That tender was as follows : — Brussels, 29th October, 1874. Gentlemen. — In accordance with your favour of inst., we beg to offer, subject to your acceptation for 25th prox. , one, two or three parcels of 5,000 tons each of Bes- semer steel rails of the finest quality at£10 stg. per English ton f. o. b. Antwerp, net cash against B-L in London. These rails can be of any section you like, provided they are not under 30 Ibt;. per lineal yard. These rails would be of our own make, as we are establishing works for them, would be cut in length to order, branded B. Delivery during period of navigation next year. Yours truly, (Signed), DOYEN & RAMSDEN, No notice was taken of this offer by the Department, upon the ground, as stated by Mr. Mackenzie, that it was not in accordance with the advertise- ment ; but, if the object had been to secure rails at the lowest price, there is no doubt that this was the best tender of Jhe lot. Antwerp was an exceedingly favourable point from which to obtain freights. There are large imports of grain and petroleum at that port, and usually there is a superabundant supplji of tonnage there, both sail and steamer, so much BO that it is quite common for vessels to proceed to Wales, or the coal ports on the northern coast of England,, in search of coal or iron freights. By ■ UX^K. •Mile--' ..^ ;TS*^if *«f j f|?:f ;i-i;;i ■ 'if 63 Bteam, rates ranged from twelve to twenty shillings a ton in 1874 and 1875, and it is not too much, therefore, to say that freights could have been obtain- ed at fifteen shillings from Antwerp to Quebec or Montreal during that aeason. It will be seen that the offer made was for fifteen thousand tons, and that the price laid down in Montreal would be £10 15s. Od. Had the fifteen thousand tons gone to the Antwerp firm, instead of to Cooper, Fairman & Co., which would still have left them five thousand tons, there would have been a saving of at least $27,000. Mr. Mac- kenzie, in some of his speeches, has at- tempted to show that he made an offer to induce the agents of the West Cum- berland Company to take the contract for the whole quantity. In a speech delivered by him at Whitby he said : " One firm tendered for 5,000 at ^4 ; " ao'ither firm tendered for 5,000 at " $5o.24. This firm was the lowest, re- " presented by Cox & Green, if I re- " collect aright. I pressed them ' ■ take ''the whole -'fO,000 we then de< ,drd to " onkr, but they declitied ' tab' viwre '^ titan they tendered for, id Cox & " Green have published a 'tttr over " their own signatures stating that *hf " were jiressed to take the whole con- " tract at the figure they named, tliat *' being the lowest." As a matter of fact Messrs. Cox & Green never wrote any such letter. On the contrary, the letter they did write is in direct opposition to this statement of Mr. Mackenzie. Dur- ing the controversey which occurred wliile the Montreal election was going on between Messrs. White and Work- man, Cox & Green wrote a letter to the Herald explaining their connection with the matter, and in that letter they said : ** We prepared a tender for 10,000 tons " steel rails, at £11 stg. per ton, de- *' livered here, and without coming any " further into contact with the Pepart- " mcnt, were informed by telegram that ' ' our tender was accepted. " They wer* mistaken aa to the ten thousand, because in the first instance they only received • contract for five thousand, and the cor- respondence which appears in the return brought down to Parliament shows that they had some difficulty in getting tho contract for another five thousand* That correspoudonce is as follows : "13 AND 15 Hospital Street, "^ .K«.i.. "Montreal, Dec, 18th, 1874, "Dear Sir, — We are to-day in receipt of a cable communication from West Cum- berland Iron and Steel Company (Limited), informing us that taking into consideratioa the favourable terms of payment, they are prepared to increase the quantity of steel rails which they are contracting to deliver from (5,000) five thousand tons, as the quantity now stands, to (10,000) ten thou- sand tons. We would remind you that our price is the lowest of any, viz : (£1 1 Oau Od.) eleven pounds sterling per ton de- livered in Montreal. We would now, therefore, respectfully request that you would bring the proposition to the notice of ths Minister of Public Works, calling liis particular attention to the very low price of the rails. "Soliciting the f ivour 'if areply, .;(; ,, . „( "We are, i>< ,i .-r, ..^>,., " Your obedient servants, (Signed.) "COX fr GREEN. Bi'iAUN, i.iq., Secretary, , "Public W I irki^ department, '^Ottawa F. '4 " Montreal Telegraph Co., "OiTAWA, Dec. 2l8t, 1874. ' "By Tekijraph from Montreal, to T, Trudeau, PubUr Works. r: , , ' '■ "See our ' , 18th December, to Mr. Braun, ofi , five thousand tons more rails, if wanted ; reply quick, as a railroad is in treaty. n (Signed,) " COX & GREEN.'* - And the following day came this answer from the Secretary : ''^ - - "Ottawa, 22nd Dec, 1874. " Telegram to Cox d: Oreen, Montrenl: "No further steel rails wanted. Thankg» (Signed,) "F. BRAUN, "Secretary.** "';• II warn 54 It is not pretended by Mr. Macken- zie that he made any effort whatever to get the other parties, Gubst & Co. , or the Ebbw Vale Company, to accept a larger quantity than they tendered for, so that we have here th( lowest tender of all absolutely ignored at a loss to the country of «27,000. We have the tliree next lowest awarded siiaply the smallest quantity for which they had tendered, and we have the highest of those that received any contracts awarded as much as all the others put together. No one will pretend to say that a record of that kind justified Mr. Mackenzie's state- ment that the lowest tender was in every instance accepted. c? (..■!•,!.;. i<" It will be seen that the tender from Antwerp was rejected upon the ground that it was not in accordance with the advertisement ; and yet, after all these tenders were opened, and all these con- tracts were awarded — when the whole transaction, in fact, in relation co the advertising for tenders had been closed — a private arrangement was made be- tween Mr. Mackenzie and Cooper, Faikman & Co., for additional quantities delivered f.o.b. at Liverpool. It has been the boast of Mr. Mackenzie — it was his boast especially in relation to this si eel rail purchase — that in evei y case t inders were invited ; but the facts show that in this, as in other statements made in relation to it, he was wrong. The following corresponde" oe will ex- plain this latest transaction : " Montreal, 13th January, 1875. '* Dear Sir,— In reply to telegram of the 7th inst., we beg to advise you that we have purchased on account of Dominion Government 5,000 tons Bessemer steel rails at £10 ]0s Od. f. o. b. Iiiverpool, cash, against bills of lading. •' ! y, in^i" "We have also contracted freights '^a Vancouver ports, viz., Esquimault, Ct -vi- chun Bay, and Nanaimo, »t £2 5b. )d. sterling per ton. ,;v,,v^.v, .f "The Government assuming the reapon- aibili^ of freight, ko., wliich is to say, to I pay shippers, makers not asauming delivery to Vancouver ports, m,.,,^,,^. ,pst^. ,„iate " Should you require the track bolts for this lot, we can arrange for them and in- clude. We are advised that steel rails are now held at £11 0. Od. We would be glad to be favoured with the address of your bankers in England, to whom we suppos*'^ the bills of lading will require to be pre* *^ sented. Kindly confirn the contract ■• ' soon as possible, to enable us to cable reply, the necessary documents to follow. •• " Yours faithfully, .? "(Signed) "COOPER, FAIRMAN & CO., v " Hon. a. Mackenzie, Ottawa." " Ottawa, 21st January, 1875." " Gentlemen, — In reply to your several communications on behalf of Messrs. Nay- lor, Benson & Co. , I am to state that the Government accepts their offer to supply 5,000 tons of steel rails at £10 lOs. ster- ling per ton f. o. b. at Liverpool, and allows £2 per ton for freights to the Van- couver ports. " The Agent-General of the Dominion, E. Jenkins, Esq., will see to the insur- ance. "Messrs, Morton, Rose & Co. are the financial agents of the Government in T Lon- don. " I have, &c., , ,,-,,\- ' "F. BRAUN, " Secretary." " Messrs. Cooper, Fairman & Co., / "Montreal." < .,, fft;:f,;,f^ i<„,: That waa a purchasa of rails without any tender whatever being asked for. It was a purchase of rails on terms which had been expressly rejected in the case of tho Antwerp tender, and it was a purchase at ten shillings a ton higher than rails were offered for, at the very time of Mr. Mackenzie's purchase. Wliat would have been the effect of an honest submission to public competition for this new quantity may be inferred from that fact ; and what would haye been gained by the acceptance of deliv- ery in England instead of Montreal,. ll 65 may ta inferred from the following cor- respondence, which we find in the return brought down : " Philadelphia, October 23, 1874. *• Dear Sir, — In making tenders for ' Steel Rails,' you require deliveries to be made at Montreal. " I write to ascertain if tenders would be received for rails to be delivered at Liverpool, and all matters of freight and insurance would then be in your hands. This course would bring out greater com- petition in way of bids, thus reducing prices. "Yours, truly, (Signed) " PHILIP S. JUSTICE." " P. Braun, Esq., Secretary, .;^ _ , " Public Works Department, "Ottawa, Canada.'' '* Ottaava, 27th October, 1874. •'Sir, — In reply to the enquiry made in your communication of the 23rd inst. , as to whether the Department would accept tenders for steel rails delivered at Liver- pool, E'lgland, &c., I beg to inform you that no such tenders would be accepted. In addition to the place mentioned in the specification for delivery, the Department would have no objection to tenders for de- livery on Georgian Bay, Lake Huron, or Duluth and Thunder Bay, Lake Superior. " I have, &c., (Signed,) " E. BRAUxN, '.-».,. " Secretary. " Philips. Justice, Esq., "No. 14, North Fifth street, ":, "Philadelphia, Pa., U.S." There is no doubt of the truth of Mr. Ju.stice's statement, that permitting rails to be delivered f. o. b. at Liverpool, would ha\e greatly increased the competition, and would liave had the effect of correspond- ingly decreasing the price of those rails ; but it is evident that it would not have suited the special object of Mr. Macken- zie. The public, however, will natu- rally ask what right Mr. Mackenzie had, in the first instance, to reject the tender from Antwerp, by which 827,000 would have been saved, on the groimd that lie would only accept rails delivered' in Montreal, to refuse the offer of Mr. Philip S. Justice to increase the com- petition by accepting tenders for rail» delivered at Liverpool ; and afterwards, by private arrangement, to enter into contracts with Cooper, Fairman & Co., and get the other rails so delivered at Liverpool at ten shillings a ton higher than offered by the Antwerp firm, and by the Wost Cumberland Company as- well. COOPER, fairman AND CO. Peojjle will naturally inquire, who were this firm of Cooper, Fairman & Co. to whom these special favours were granted 1 What was there in their business which should have secured for them ^./xivileges absolutely refused to other firms i The answer is one which certainly cannot be accepted as credi- . table to Mr. Mackenzie. His own brother was a partner in the firm, and to that fact is to be attributed all these special favours. As doubts have been expressed upon this point, it is as well to give here the official notice of partner- ship : ^; "[No. 59.] ^ • ■■ " Province of Quebec, i ^ ji''.\.jbtev tiin •■• " District of Montreal. I " We, the undersigned, do hereby certify that we have entered into co-partnership, under the style or firm of " Cooper, Fair- man & Company," as merchants, which firm consists of James Cooper, of the city of Montreal, and Frederick Fairman, air present residing at Waterloo, in the said Province, as general partners, and CHARLES MACKENZIE, of SARNIA, in the Pro- ince of Outarfo, as a special partner, the said CrIARLES MAC|\E>fZIFi having contributed FIFI'EEN THOUSAND DOLLARS to the capital stock of the said partnership. Which said co-partnership commenced on the : ■ I ^m FIRST 0AY OP JANUARY INSTANT (1873.) and ternunates the FIRST DAY OF JANUARY, 1878» tla. 'TAf '.>*:. ^'.SJjk.ici'jfl iCk' '6.*w .1/,..- 56 ]l.A',.U„ ■o*-'W ■•.tdJai. Dated this aecoud day of January, one thousand eight hundred and seventy- three. (Signed), JAMES COOPER, F. FAIRMAN, CHARLES MACKENZIE. Signed in the presence of •I > ( gned), JOHN C. GRIFFIN, N.P. Filed and registered this seventh day of January, one thousand eight hundred and seventy -three. (Signed), --> . 4 -•irj'* ■ nii . ■ ■ HUBERT, PAPINEAU, & HONEY. j. -J.- ■ ; ,1 ; ,.-',T H'\; P. S C. ^^ MB. CHARLES MACKENZIE. .but it lia.s been pretended that Mr. Charles Mackenzie had retired from the tiriu before these transactions took place. Mr. Mackenzie in his speech in North York, said : " A firm in Mont- " real, in which my brother was at one " time a sleeping partner, were agents ' ' of the firms in England who were *' tendering ; but before they became *' agents at all in this matter ray " brother withdrew from the firm rather * ' than have the sliglitest doubt cast upon " his integrity in this matter." Now, as a matter of fact, and as proved by the record, Mr. Charles Mackenzie did not retire from the firm until after all these transactions <^^ook place. Thero has been some attempt to mystify this matter by pretending that the notice of dissolution was not inserted at the time the dissolution took place. There is no doubt upon that point, for the notice of dissolution states the time at which the partnership ceased, and that time wr.s after all these contracts had been entered into. Here is the official record which settles that question : .",.,, ,, " Province of Quebec, District of Montreal. r- "We, James Cooper and Frederick Fairniiin, bc)th of the City of Montreal, Hardware Merchants and Importers, here- by certify that we have carried on and intend to carry on business as such at the said City of Montreal, in partnership under the name or firm of Cooper, Fair- man & Company, and that the said co- partnership has subsisted since the fourth day of May last, and tliai we, the said James Cooper, and Frederick Fairman, are and have been since the said day the only members of the said partnership. Witnesa our hands at Montreal this twentieth day ^ of July, one thousand, eight hundred and seventy-five, . . ,^ (Signed), " JAMES COOPER," " ' "^ "F. FAIRMAN. Fyled and registered this twenty- fourth day of August, one thousand eight hundred and seventy-five. " HUBERT, PAPINEAU & HONEY, "P.S.C." We have thus the fact beyond contro- versy, that Mr. Charles Mackenzie was a partner in the fiirm of Coopee, Fairman & Co. , when these extraor- dinary favours were granted to the finn by Mr Mackenzie ; that he did not retire until after all the contracts had been made ; and it is a fact which nobody has ventured to deny that he received on his retirement promissory notes pay- able at the Exchange Bank for the $15,- 000 which he had put into the firm. It required the proceeds of these transac- tions to enable Cooper, Fairman & Co. to pay these notes, so that the fact is beyond controversy that the result of all these transactions was to enable Mr. Charles Mackenzie to withdraw his capital intact from the firm, in which, but for that fact, it would probably hava been irretrievably lost. 4j., V? ■■'■■-.. .-. THE loss to the COUNTRY. What the country has lost by the mere purchase of these rails has been estimat- ed at not much less than 'two millions of dollars. The statement prepared by Mr. Macpherson on the subject of the loss from this ateel rail purchase is as follows, and no man is better qualified to give a statement upon the subject than that honourable gentleman : ■ 0< qu bu po 67 his ich, ava lere mt- of by I the as ied tect * " The Profit afld Loss Account of the Ck)vernment Steel Rails speoul.vtion may be taken to stand about as follows : — Cash paid in England for steel y. ' rails and fastenings |2, 933,900 The same quantity could have been purchased, deliverable this epiing in Canada for 1,800,000 t\\' Loss on first cost $1,138,900 Interest to 30th June, 1877, on ascertained payments 271,365 To this must be added the cost of 4,000 tons laid upon the Truro and Pictou railway, a line that would not have been steeled had not the rails been on hand 235,120 (The Government has taken au- thority to transfer this rail- ■ way to Nova Scotia as a gift ' '-' ' ' to a private company.) t' '!" Ascertained loss to the end of current fiscal year, 30th June, 1877. I • • r'*"**'' $1,645,385 h'* i'U, fs Interest is running on at the rate of about $13,500 per month, and is increasing — I estimate the further loss by interest before the rails are used at $ 419,169 It may be assumed that the country's loss by this unfortunate transaction, before the interest acount can be fairly closed, will not be less than Two Millions of Dollars ! Thv rails have been distributed as fol- lows : — 5,000 tons to Vancouver Island, where they are not required. 11,000 tons to Nova Scotia, 4,000 tons of which are to bd given away to a private company. And the remainder are at various places from Kingston to Manitoba. " j% THE CA£BYINO OONTRAOTB. We have dealt thus only with the question of the purchase of these rails, but there remains the question of trans- portation. In April, 1876, Mr. Mao- KKKZrB advertised for tenders to trans- port rails from Montreal to Fort Wil- liam or Duluth, and the following ten- ders were sent in : Ist. E. Samuel, Montreal. . .$6 00 per ton." 2ad. C. Edward, Kingston . . 6 26 . . "' 3id. C. E. Jacques & Co., ' Montreal 6 30 4th. Charles Stephenson, Montreal 6 50 5th. Cox & Green, Montreal. 6 6Q 6th. Holcombe & Stewart, Kingston 3 74 7th. J. H. Beatty & Co., Thorold 7 0© 8th. W. H. Perry, Bufifalo . . 7 00 ..I '..lie* One would have imagined that, in aoi cordance with the general principle Me A Maokbnzie has laid down, Mr. Sam-' uel's tender would at once have been accepted. He offered as surety Messrs." D. BuTTBKs & Co., of Montreal, and certainly no better surety could be offer- ed ; and yet, upon the ground that Mr. " Samuel was not a steainboat owner,,, his tender was rejected. All the other tenders were alco rejected, and an ai-- rangement was made with Cooper, Fair- man & Co., who are not steamlwat owners, and never have been steaniboat owners, for the transport of these rails. The pretence was that in the November previous, Cooper, Fairman & Co. , in one of the tenders which they sent in, had offered to deliver the rails at Duluth and French river at ^. 60 per ton extra, exclusive of any harbour or wharfage dues. When Mr. Maukenzib got in his tenders as stated abo\ e, in answer to his advertisement, he apjjears to have entei ed into correspondence with Cooper, Fairman & Co. , and they then proposed, on behalf of " The Merchants' " Lake and Steamship Line," to convey the rails at $6. 20 per ton, including all the charges mentioned in the advertiae- ment. That offer was accepted. It will be seen that it was twenty cents a ton higher than Mr. Samubl'.s offer. Not a very large amount, not a very serious matter, being only a thousand il dollars, but even a thousand dnllars, to an ecouomiciil gentleman like Mr. IVTao- KRXKTS, otight to have been worthy of consideration. The most extraonlinary fact, however, is that Mr. Mackk?»zib, when he determined to refuse these ten- ders, should have accepted Cooper, Fairman & Co.'.s offer of the previous November, and should have ignored other offers which he h.^d at the same time. Here, for instance, was an offer : "Ottawa, Ont., Nov. 14th, 1874. " Dear Sir,— Should the Government prefer to have these rails delivered at the following points :— Duluth, Fort William and Georgian Bay instead of Montreal, we can deliver them at Dulath or Georgian Bay at $4 per ton additional, and at Port William at $4.75 additional, comlitional aa to the delivery at points named, that there be a sufficient depth of water for vessels to go thereto, and that the consignees are to unload. Not knowing if it is the inten* tion of the Government to insure the vari- ous cargoes on the lakes, we have not in- cluded the lake insurance on the inland freights, $4 and $4.7), which would be about 16 cents per ton. " Your obedient servants, "(Signed), " PERKINS, LIVINGSTON, POST* CO., "Agents of Guest Co." " The Minister of Public VVorks."'^" ' This offer was from the agents of GuBST & Co. to deliver these rails at the points named for an additional sum of $4 per ton at Duluth or Georgian Bay, or $4.73 per ton for delivery at Fort William. That is, in round figures, at least a dcdlar less than Cooper, Fair- man & Co. offered, and would have re- sulted in a saving of five thousand dollars. Then again in the tender of T. V. A.tt-13, of New York, were the words " with the option of delivery " at Duluth or Georgian Bay at $5.00 " per ton additional." That is sixty cents a ton less than Cooper, Fairm.vn & Co. , of a saving of three thousand dollars. All these offers were rejected, and a private arrangement made with OooPER, Fairmak & Co., ignoring th» tenders sent in, at a loss to the coun%ry of between five and six thousand dol- lars. The proceedings which occurred in Parliament in relation to the seat of Mr. NoRRia, the momber for Lincoln, throw lorae additional light upon this transaction. It turned out from the papers brought down at that thne that the Company in whose behalf Cooper^ Fairmax & Co., pretended to ravko an offer in April, 1875, was actually not in existence at the time, but that a com- bination w;i3 made in such a way as to confer an important favour upon a mem- ber of Parliament who was a supporter of the Government — a favour which subsequently caused him the loss of his seat, in consequence of its being a vio- lation of the Independence of Parlia- ment Act. 1 .t.MWtj.M-t" -J t*, •■ - . ;.! J- '■'-' COOPER, PAIRMAN & 00. , AGAIN. Then there was another transporta- tion arrangement. Messrs. Cooper, Fairmaw & Co. , who, as we have said are not shipowners, were entrusted with arranging for the transport of rails to British Columbia, where it turns out that they were not wanted in conse- quence of the policy of Mr. Mackenzib in abandoning the Vancouver Isljind railway. No tenders were invited for* this British Columbia transport ; but the Government had r formal offer on the subject, as will bu seen by the fol- io wi'.g letter 5tEJJuJ& Hii&tf y.iy, that you may want some rails at British Columbia. Will you con- sider a proposition from us to ship one lot direct there, or for an a'ivr.fs'i #>i.;' ;c,!.' f^iiPU».'>i,»?i,t n.-d-J *d>- j'i 'h'*:Xi Q-i down during the last session of Parlia- ment. That return had relation to the number of niilos actually laid, down to January 1878 ; and according to the re^ turn, on contract No. 13 were 32^ miles laid, on N(j. 14 there were 6 niileu, and on No. 25, 8^ miles, making in all 47 miles, ret|uiring less than one-ter.''h the entire quantity of rails purchased, . id this three years after the contracts were made for those rails. It is true that some ten or eleven thousand tons have been used on the Intercolonial railway, but they were used in vio- lation of the law, because the pre- tence was that these rails were pur- chased under the general authority of the Pacific Railway Act. It is true that, in order to get rid of them, the Pictou Branch was laid anew with steel rails, before being handed (jver aa a free gift to a private company ; but that, certainly, could not have been in the contemplation of Mr. Maukbnzie at the time he purclxaaed them. We have got, therefore, as a result of this transaction, the fact of a purchase of a far larger quantity of steel rails than can possibly be required, in a falling market, and at a loss to the country of nearly two mil- lion dollars, simply that Mr. Chaulbs Mackenzie might be enabled to draw out of the firm of Cooper, Fairman & Oo. the capital which he had put into it, and thus escape the loss which the com- mercial record of the last three years shows must have been inevitable but for these traosactioua. >i»* H■>^^ f; ..v.,-w;{V •S^'P E/ij ^'fe^i :(!# '!in(>'« w i.av i i / 4311 H78/t #' >|i ■'♦.li (7 rtb'/ii f- 1^ '. * > •I wo b-HUllilMHIl 91* ll<»ria U <»»l«'Wi .f, k . .A k . .(;* . THE "ON THE MAKE" POLICY. WITH .i»i>i 'ic. v!i.»u --^-^ -yy t^ti It) ■• . .' -EXAMPLES. " iiH I yia^ .. » ;.• Whilb the country has been suffering from hard times and national deficits, »nd groaning under three millions of new taxes levied on the necessaries of life, the particular friends of the Gov- ernment have been •* on the make." With them it has been a case of " let " us help ourselves, and the devil take " the taxpayer." SENATOR SIMPSON. Senator Simpson, of Bowmanville, President of the Ontario Bank, was one of the uprights of the Party of Purity in its Opposition days. In that dark hour in 1872 when, with victory all but assur- ed, the Party bribers found that they had exhausted their funds in " aiding "our city candidates" and ■' helping " the out counties," the Bowmanville Senator was appealed to by Mr. Brown in terms that leave no doubt an t.> the familiarity of both gentlemen with the ways and means of effect- ing a " grand stand," and mak- ing a " big rmsh" on polling day. During the general elections in January, 1874, Mr. Simpson was asked by Mr. Cartwright — Finance Minister in the Cabinet which had just gained office by shouting corruption at its opponents— to use his bank's influence in the Gov- flrnment's behalf in consideration of re- ceiving a large share of the Govern- ment deposits. He did so. He coerced and intimidated the customers of the Ontario Bank— for how else could the lit, i1 ..}>,• ilttV' fA^'"' : f 1. . f£ U .«1 l..(.'>;.!.' y.w influence of his bank ledgers have been used ? — and, according to agreement, re- ceived the lion's share of the dej)osit8 the Finance Minister had at his disposal. This was using the people's money to procure the intimidation of the larg<> class of farmers and merchants having dealings with a prominent banking cor- poration. The facts were set out by Senator Simpson himself and other wit- nesses in the case of the Qcben y. Wilkinson, tried before Mr. Justice GwTNNB at Cobourg on the 25th and 26th of October, 1877. On the 17th January, 1S74, Mr. Simp- son, as President of the Bank, sent the following circular to its customers : , . BowHANViLLK, Jan. 17, 1874. , Esq. : -.i;;-! hvjii.i.. Drar Sir, — AJthoagb I am not ditpdHtiA to oppose Mr. Gibbs on personal grounds in the approaching elections, still as one who has laboured long and hard to pro- mote the interest of Canada, I now ask my friends to swppo'-'^^ men who will support the present Govemivient, for the following reasons : " 1. For the country's good, and to show to England that the Canadians will not sus- tain or tolerate men who will barter our rights and stain our character for base and sordid motives. * " 2. Because many of the men fbttaltt|| the present Government are my p(>rsonal and esteemed friends " 3. Because if thi- present Government is sustained, I will he able through them to get juatio« for our party in a««dful tip- poiutmenta and otherwiM. " 4. Bucaase if they are initained our bank and other Ontario banka (> Jid through them the uountry) will have the uae of the Qovurnment aurplua until required." May I Mk yoo to give my old friend, Mr. Cameron, your candid and hearty aup- portl I am, youTB truly, J. SIMPSON. In that oontest, Hon. T. N. Qibb.s, Vice-President of the Ontario Bank, was opposed by Hon. MAu;oi,ivi 0am- KKOM, of Ottawa, the former being the Opposition and the latter the Govern- ment candidate. What induced Mr. Simpson to come out thus openly and solicit the help of his customers to de- feat the vice-president of their own bank and elect a stranger and a non- resident 1 And how did he become possessed uf the information that if the Mackenzie Government were sustained " our bank and other Ontario banks" and, excellent purist ! " through them " the country " would " have the use of " the Government surplus until requir- " ed ?" Mr. Simpson himself answered these queries in answer to Mr. D' Alton McCARTHY'a cross-examination : THE OABTWRtdHT-SIMPSON BARQAIN. 0. Had you had an 'interview with the Finance Minister before that circular was written ? A. I had an interview on the 8th December, 1873. t, ^.^^si)! jfii u»>«i'> Q. Are you in the habit o' issuing un- truthful circulars to influence the electors ; or do you try to k«ep within the bounds of truth ? A. I am not conscious of issumg au untruthful circular. Q. In this you say : - "i"'^* " Because if the Government is sustain- ed, I will be able through them to get jus- tice for our party in needful appointments and otherwise. ^..,;,g^i;j lijo xuaiife lj4fe«:'«' " Because if they are sustahied our Bank and other Ontario banks (throughout the country) will have the use of the Govern- ment sur[>lus until required." ^ . Yoa had aome warrant for jaying tbiki, of courae '! A. 1 believed we would have jus- tice done as. Q. You see what you say here. If you hail not believed it you would not have aaid so ? A. I had reaaon for saying what I said. Q. That if the Qovemment were austain- ed yon would have the Government de- posits ? A. More equally divided. Q. From whom did you get that ? A. From a nnmber of gentlemen. I went to Mr. Cartwright, and he swore Q. Never inmd what he swore. Swear for yourself and not for Mr. Cartwright ? A. Well, I Bwear I was told by Mr. Cart- wright. Q. By whom ? A. By Mr. Cartwnght. Q. What did he tell you ♦ A. He told me that if the Government was sustained the banka would get a fair quota of the sur- plus, if they were sustained. Q. What did he say ? A. He said -t they were sustained the Ontario banka would have a fair proportion. t:f\nsX »d ** Q. Weit he had pledged himself to Mr. Gibbs. Q. But lie did not require to pledge him- self ; he was a supporter of Mr. Gibba al- ready? A. You km ly; all about it. Q. No, I do not ; that is why I ask you T A, Well, what do you want ? Q. I want you to say whether you did or did not know that he was a supporter of Mr. Gibbs? ,A.,J Ijad >9.en tpld th^t hftf could be got to support some other man ....,-1 «i* than Mr. Gibba ; and perhaps if I had not heard that I would not have g'iKC there. Q. Then you V7ent there for the purpose of jyfetting him tu support some other man ? A. Certainly I did. To his f oHuaHiP — I went for the pur- pose of influencing him to do so and to ^et him tu nifluence others. Mr. McCarthy continued — Q. You did succeed in getting Dr. Mc- Gill ? A. I did. Q. Then you did not know ths* l>r. Mc- Gill wah the other way -.ntil y u got there ? A. I had heard that Dr. McGill was what some people would call " on the fence." , Q. And jou got him to get off the fence ; ud to come down on your side t A. 1 think that is what it means. ■ Q. I suppose he is a wealthy man * A. He is reputed to bo wealthy. Q. I believe he succeeded Mr. Gibbs on the Board of Directors of the Ontario Bank ? A. He is a director. Q. B".t hb was not a director at that time ? A. I think not. Q. And he became a director four or five raonths after ? A. I don't know when he became a direotor- Q. But you put Mr. Gibbs off and put him on ? A. Probably. Q. Probably ? Certainly ? A. Well, certainly. » '' Q. I suppose you have proxies under your control ? A. I have no picixies. Q. But you have a controlling mtluence, »nd the directors you propose are elected ? A. Unfortunately I have not. Q. You stayed at Mr. Glen'a house ? A. Yes. Q. He had also been a supporter of Mr. Gibbs up to that time ? A. No. Q. Did not he support Mr. Gibbs in 1872 ? /.I think he did. Q. And when he came up to be elected after being made a Minister ? A. I do not know. Q How did you know ho would not sup- port him this time ? A. I know that be- (iause he told me before the general election that he would siij>port Mr. Gibbs no longer. Q. Then Mr. Glen had gone farther than Jh. MoQill ; ha waa not on the fence ; he came down before yoa got there t ^. f take it that he was not on the fence, or^ ould not have gone to his hooao. ^. Q. You don't go to the houses of men who are on the fence T A. No. Q. You don't care for that kind of men t A. I don't like them. .> . >- Q. Mr. Glen is President of the Joseph HallWorka? A. Yes. Q. Are you on the Board ? A. I am not. Q. Were you at that time ? A. I have not been at a ii^eeting of the Board. Q. I don't ask that. Were you on th» Board ? A^iswer me directly. A. I am not on the Board, and I was not, because at every meeting they elected me and I re- fused to act. Q. Are they customera at your bank t A. They are. Q. Pretty largely ? A. Pretty largely, Q. And wore they in 1874 in pecuniar]^ difficulties * A. Not then. , Q. Whiu ? A. Some time after. Q. Did they go into liquidation after? wards ? A. Some time afterwards. Q. What do you mean hy .^.iine tim«t A. A number of months. ..^ Q. Within a year ? A. Within a year. Q. Then their estate could not have been very prosperous in IHJi if they had to go^ into bankruptcy tii ;f, year ? A. They ha' Q. On what night T A . The night yon ftre speaking of Q. The night yon did not go to bed ? A. Oh, I did not go to bed till very late any night. Q. Where was this ? A. At Glen's house. Q. How many were present 1 A. Some- times there would be fifteen or sixteen. Q. Then you had a committee meeting ? A. It was not a committee meeting ; it was just a gathering. Q. Was there any chairman ? A. No. •Q. It did not require such an officer? A. No. Q. But they came in and passed out ? A. Yes, they passed in and out. Q. What was the influence you brought to bear upon them ? Are you an eloquent man ? A. No. Q. You are not eloquent ; then what in- fluence did you bring to bear ? A. It was not money, any way. Q. Well, what was it ? A. Oh, a sort of mesmerism. (Laughter.) , ." .'■ '( •• ': Simpson's reward. .1 '., The effect of his official circular and his own personal exertions was that Mr. GiBBS, the Vice-President of the bank, was defeated in South Ontario, and Gov- ernment triumphs were secured also in North Ontario and Eaat and West Dur- ham. Ar. Simpson acted up to his part of the agreement, and Mr. Caktwright, on behalf the Government, fulfilled his, aa the following figures show : — DepoHtu in DevnsitK in Baii/cn in On'ario. Ontar^^J Bank 187^^ -31st Dec. $797,000 1180,500 1874- -3i)th June 801.000 39().8()0 1S74- -31st Dec. 1,024,000 507,400 1875- -.30th June 821,0(10 411,000 1875- -.3 let Deo. 981.000 428.000 1876- -30tlt June 738,000 8'.»5,(K)0 1876- -3l8t Dec. 518,000 209,500 Mr. Simpson's bank's share Oi the Gov- ernment deposits would be in a Ifegiti- mate division, about 20 per cent, of the whole. It was 22 per cent, on tlie Slat December, 1873, but in coni^ lianoe with the agreement it rose tc» 48 per ctMit. on the .30th June, 1874, amd touched nearly 50 per cent, cm the Slst Decem- ber, slightly exceeding 50 per cent, on the 30th June, 1875, and reached nearly 54 per cent, on the 30th .Tune, 187'>, when the discussion of the scaiidal in the press and in Parliament led the Finance Minister to reduce theamountgradiially. On the average 70 per cent, of the de- posits in Mr. Sijipson's bank after the 31st December, 1873, were deposits on wjiich he paid no interest, i.«., Govern- ment money (for which wo p.iy 5 jvnd li per cent, in EngLmd), of which he had the free use. Ho has made a heap of m<^ney at our expense ; but then it is not every man who can control four con- stituencies in the interest of Purity and Reform. r-tnti- i; * &*■"•• ,■■«»>, ' ' CABlkET MEMBERS. . f The following members iif the Admni- istration have taken olHce Satiri/. Hon. D. Christie $4,000 Hon. A. A. Dorion H.OOrt Hon. D. A Macilonald 10.000 Hon. Luc. LctcUier 10,000 Hon. D. Laird 7,000 Hon. J. E. Cauchon 8,000 Hon. T. E. Fournier 7,000 Hoe. W. Ross 3.000 The ' Ontario Bank has a capital of $3,000,000. The other banks in Ontario huve a capital of $!lu,0r)0,0fX). So that i! $25,000 These gentlemen took office to reform the evil statutes passed by the Ma<;don^ ALD Government, to reform the Civil Service, to reform the number of Cabi- net Ministers, to reform the salaries paid under the head of Civil Government, to reduce the expenditure in every branch and to refori the country and the con- stitution generally ; but they left their work undone not to say untouched, and abandoned the people in their dire ex- tremity to "make a piece" for them- selves. i M. DE ST. JUST. , M. DB St. JufiT, the chief political agent of the Mackenzie Government in the Province of Quebec, is very much " on the make." He has $10,000 a year liiraself, and he has succeeded in obtaining valuable positions in the Do- minion service for nearly all his rela- tions. Here is the record for 1877 f ■ ' ■ Salary, Name. Position.'" ~^ Bonus, dkc. M. de St. Just, Lieutenant-Gov- ernor of Quebec $10,000 E. Tetu, Department of Agricul- ture 1,675 J. M. Tetu, Secretary of State De- partment 466 David Tetu, Lighthouse — Anti- coati 1,088 Ernest Tetu, Customs Collector — ^ Gaape 925 Emile Tetu, Clerk Canada Pacific Railway 1,100 Jean Tetu, Emigration Agent — Manitoba 2,300 Nazaire Tetu, State Department.. 1,175 Vital Tetu, Trinity House — Que- bec 345 J. Casgrain, Sessional Writer .... 375 II Casgrain, Department of Agri- culture 1,175 Louis C. A. Casgrain, P. O. De- jjartment 450 Dr. F. H. Larue, Analyst— Adult. of Food 1,215 Capt. N. Lavoie, Commander " Le l^aiiadien" l,84Ji E. Martineau, Department of Ag- 1 iculture 653 lieut -Col. Panet, Militia Depart- ment 3,200 ,; ,, $27,990 . A. O. B. BANNATYNE, M.P. Mr. Bannatyne, M.P., was returned for Provencher on the 3l8t March, 1875. He ran at the general election in 1874, but was beaten. His case has al- ready been referred to under the head of Independence of Parliament, but he is in every way entitled to figure in the " on the make" chapter. Hero are his bills for supplies sold to the Govern- ment since the 1st July, 1875, four months after his return to Parliament, as given in the Public Accounts : p. 122. . . .$ 2,563 1875-76. Mounted Police, par^ 2, Do. "part 2, p. 1^3..., , Do.=^ '^ ^" part 2, p. U3':^. ] ' Dominion Forces m Manitoba, part 2, p. 170 88 Manitoba Lands, part 2, p. 189. ... 34 Pacific Railway Survey, part 2, p. 217 7,966 .^ -f*,t ..,,.• :.fi (v»il rii tv!i 3ini hi 1110,705 Add to this his bills in 1876-7 as givon in detail in the Independence of Parlia- ment chapter, and it will be found that this sound Reformer has, while a mem- ber of the House of Commons, dra\vn no less than $35,000 from the public treasury. PIERRE A. TREMBLAT. ^ -> M. PiKKKB Tremblay, the J. D. Edgar of the sister Province, is willing to run for Parliament in the Party's in- terest whenever asked. In return for these services he feels that he is en- titled to " make" something for him- self and relatives. Here they are as given in the Public Accounts and Marine and Fisheries reports for 1877 : Pierre A. Tremblay $840 Davila Treniblay 763 J. A. Gagne, avocat 690 Hilaire Tremblay 376 Thomas Tremblay .S22 Louis Guay i621 William Tremblay 298 John Guay 143 Sixteen Tromblays in the Marine and Fisheries Department, aggre- gating 665 .,.,?t<.i THE ISSUE BEFORE TPIE COUNTRY. /i<. ij.Tt :!■: It has been shown in the foregoing chapters by evidence taken from the public records that the men now in power are unworthy of a renewal of the ccinfidence of the people. They have violated the pledges on which they ob- tained the confidence of the country. They have been extravagant where they promised to be economical. They have perpetrated jobs where thoy inculcated honesty. They have conducted public affair- more particularly those relating to the public expenditure, more in the interest of selfish partisans than of the taxpayer. Surpluses have given place to deficits ; and the deficits threaten to be chronic, although three millions of extra taxes have been imposed. Their management of the great public works has been unfortunate because of their incompe*^^enoe. Fifteen millions has been spent on the Pacific railway of which at least three and a half millions — the steel rails, the Foster payment, the Kaministiquia fraud and the \iseless Fort Frances canal — have been absorbed in doubtful purposes ; while the hope of raU communication with the Pacific coast is yet very far from even prospective realization. An era of bad times has destroyed aany and crippled all our industries ; and beyond doubt the rejectif)n of this r.nhappy Cabinet, and the return of those men "ho built up Confederation in the first ■ix years of its history. wouM result in an industrial and commercii^ quicken- ing. The merchant or the niannfao- tursr has no confidenc; m the present Administ-rafcion ; thev fiave wmfidence jf (• '■■■ . J .1- tl«'i ■ in those who from 1867 to 1873 con- ducted public affairs in a manner that ensured general prosperity. Basing its claims upon this negative policy, upon what Mr. Mackexzib and his colleagues have failed to do, and on that alone the Opposition ought to receive the confi- dence of the electors. But they rest their case on a positive and distinct policy. There is a question at issue between the two parties, apart from the failure of one to govern the country as prudently and successfully as the other did, to which the intelligence of tb* people is directed. THE QUESTION ABROAD. When the nations of the earth are exactly equal in armaments and in their ambitions, and agreed in their general policy, we may look for the cessation of war K' d the coming of the millennium. So when the nations are equal in point of natural resources, of industrial ability, of the power of production and the power of consumption, wa may expect the laying asi le of hostile tj.riffs and the establishment of a universal Free Trade Zollverein. But so lor.g as jne nation is weaker than another, s o long will hostile armaments and tariffji exist ; for self- preservation is a fundamental law of human nature. Five-and-twenty years ago, Englani, having by three centuries of the most careful Protection, de- velop^u her r««our30.i until she feared no oompetitoi . it aside her tariffs and bbotl )ara is a terrible witness against this onij-sided system. The volume of trade has fallen, accord- ing to Mr. Caktwkiqht, from $218,000,- 000 to ^168,000,000. The liabilities of the bankruptcies from 1874 to the end of March last amounted to nearly vlOO.- 000,000. We have reached the period of dire distress when deficits in the revenue have become chronic and we can no longer pay the Sinking Fund of the National Dr-bt except by further borrowing from the capitalists of Lombard street, to whom we already stand indebted to the extent of $40 ahead. In two years the revenue has come short of the expendi- ture — which Mr. Cabtwright says can- not be cut down — to the amount of f3,- 400,000, and a third big deficit is im- minent. Chronic deficits like these cannot fail to impair our credit, even with a Minister of Finance capable of exhibiting the '* silver side of the •' shield" only. Meanwhile the surplus products of the American loom, mine, and workshop are pouring into the coun- try to the despair of the Canadian manu- facturer and mechanic, while our pro- ducts, the products of the four millions, are debarred by the high tarirt" tlie mar- ket of the five and forty millions. *' ■ '• ' ■ THE ISSUE. '• '■ ' ' '' ' When this crisis first dawned, Sir JouN Ma(M)Onalo, against whose love for Canada even Mr. Bkown hes never uttered a slander, rose in Pai-liaiuent and said : " Let us protect ourselves. " Let us, the weak nation, put on a '• tariff armour against the strong neigh- " bour that tlireatens to destroy us. In " that way, by building up our native *' industries, we shall restore to our '* people the essential home market, ' ' afford them t chance of compct-* " ing with the Americans, give employ- " ment to our mechanics, and " hope to our farmers, and by thus " helping along a return of general " prosperity, restore also the splendid "surplus of Revenue over '' p'luli- " ture which marked our histoiy from " 1867 to 1873." It was ask od of him, " Why did you not insist upon a Protec- '* tive tariff when you were in power ? " His answer was : " First, because from " 1854 to 1866 we had reciprocity j "secondly, because from 1866 until the "time I left the country in Mr. " Mackenzie's hands, the circumstances " resulting from the war in the United " States rendered their keen competition ' with us impossible." His policy, as set out in 1875, 1876, 1877, and 1878, is well expressed in his motion of last session : — "That this House is of opinion that the welfare of Canada requires the adop- tioQ of a National Policy, which, by a judicious readjustment of the Tariff, will benefit and foster the Agricultural, the Mining, the Manufacturing and other interests of the Dominio' ; that such a policy will retain iu Canada thousands of our fellow-countrymen, now obliged to expatriate themselves in search of the em- ployment denied them at home ; will restore prosperity to our struggling indus- tries, now so sadly depressed ; will pre- vent Canada from being made a sacrifice market ; will encourage and develop an active inter-provincial trade, and moving (as it ought to do) in the direction of a reciprocity of Tariffs with our neighbours, so far as the varied interests of Can.uia may demand, will greatly tend to procure for tliis country, eventuallj', a reciprocity of trade." The answer of Mr. Mackenzie and his colleagues was that they saw no way of restoring prosperity, and that they were Free Traders. They gave this answer in 1876, and Sir A. T. Galt, no mean authority, wrote to Mr. Mills, a memr'^ her of the Cabinet : " The real question ff " at?ii*9Tro i^ Whether the present tariff " is the beat possible for the present cir- ** cumstances of Canada. Yon (the pre- " sent Government) by your inaction " assume the atKrmative, and must con- " sec^uently be held to the position that " when unexampled commercial sutfer- " ing exists in the country, you can, as ** a Government, do nothing whatever " to relieve it. You allege that the " causes are beyond your control, and " that nature must supply the remedy. * ' I take the contrary position, and af- " firm that the present tariff is eminent- ' ' ly artificial, and therefore open at all ** times to beneficial changes, and that " in a period of severe distress the duty ' ' of the Government is to try the effect " of changes. It has a most gloomy and " depress n J influence upon the mind of " the country for the Parliament to as- " sume the attitude of admitted incapa- " city to afford relief." They gave the same answer in 1878. Mr. CARTwrKiOHT, in his Budget speech of the 22nd Febru- ary, 1878, proclaimed the Free Trade doctrine, and upheld the one-sided tariff system throughout. This then is the issue — Protection against the forty-five millions who shut us out of their markets while they are allowed to enter curb almost at will, or One-sided Free Trade which bars us out of their markets and opens our gates to them ? One-sided Free Trade, simply because England with her colossal wealth can temporarily stand it at;ain8t weaker neighbours, or Protection to our own people, founded on their experience of battling in vain against a rich and ag- gressive neighbour with a high tariff < Experience or Theory } That is the siiaple issue. THE ONE-SIDED TAEIFP. 11(1 The following table shows the differ- ence between the Canadian and Ameri- can tariff's, the excess of the latter oyer the former being what Canadians have to pay as an extra pretninni fur using the United Btatts market ;— Duty. Wheat Free Rye aud barley. Free Indian uurn and oats Fiee Wheat flour .... Free Rye flour and cornineal Free Oatmeal Free Potatoes 10 ^ct. Live animals. ..10 t^ ct. Coal Free Salt Free Wool. ....... ..Free Pig iron Free Bar iron 5 |^ ct. Plate and boiler iron 5 J? ct. . V.'. (i>.rtij" ■■■ -PI AnierloMi Duty. 20o per bush, 15c per bush, lOc per baslu 20 per cent. *'*' ■ 10 per cent. ic per lb. '^* 15c per bush. 20 per cent. 75c per ton. r In packages 1 2c per 100 lbs ; iu bulk 8c per lUO lbs. 25 to 50 per cent. ' 97 per ton. 35 to 75 per cent. " ^ and $30 per ton. $14 por ton. 825 per ton 20 per cent. jiil? IXitt 20 per cent. $40 per too. 120 per ton. -Oj iJer bush. Ic per lb. auil 20 ^ cent, ad val. Iron rails Free Steel rails Free Bricks Free Trees, plants and shrubs. . . 10 ^ ct Flax, dressed . . Free Flax, undressed. Free Flax seed. ..... Free Starch..,,;.,,,.i,.2cl?lb, The foHowihg articles, all of which in our tariff come under the general fi-- n\is of 17^ per cent. , are by the Amoricau tariff, chained with the rates undermen- tioned : — II. Wood Screws. .'.'...... . 56 to 00 percent' Saws 40 to .")0 " " Cars and Locomotives.. .35 •' Cotton yarn 40 to 60 " ' Spool thread 4l to 81 " Silk cloth. . :;.;',';■. 50 to go Machinery .35 Stov-a and iron castings, 30 Woollen cloth.' 66 to 70 Flannels and blankets . . 85 Ready-made clothing ... 35 to 60 Carpets;'.: .v;r;';.^'".^i;y. so to si Alpaca godd= . . ; . ,'. . ,*. 85 Heavy cottons, ..■."..". .. 40 Fuier cottons 50 to 70 << .r '-if-- ^ Linen cloths ^0 to 40 p«r cent. Rubber and leather goods, fur goods, glass .,^,.,.uv. bottles and lamp chim- ,,.^^; i^^^ ,VJ 'i^.^ neys, clocks, furniture, ;' ..„,,■,.. carriages, envelopes, ,^'i • ^, writing paper, »"«oni.,.,'^» .,, , |; , paper, felt hats of wool, 'j(,j,;, ■,,,(,[ (runs, rifles, pistols, *• umbrellas, and para- sol^ 36 •• If Canada had the American tariff and the Americana had ours, matters would be about equal, allowing for their greater wealth, «fec., but with the tariff as well as the weal*^h, population, producing power and resources in their favour, the arrangement must strike the dullest mind as being essentially one-sided. THB FARMERS. 'l This is so apparent, the injustice of the system is so keenly resented in the manufacturing centres of the country, that the members of the Government have practically given up preaching one- sided Free Trade to the manufacturer and mechanic, and are devoting them- selves to the farmer. But the Grangers who have studied the question on its merits, and withovt regard to the con- tentions of the rival politicians, are, as a rule, convinced of its absurdity and unfairness. The Grangers' petition to Parliament in 1876 set out : i; ,. \.i *' That whereas agriculture is a promi- nent interest of this Dominion, and the prosperity of all classes largely depends upon the success of the farmer, it is desir- able to enact such laws as shall insure that success. " As practical farmers we cannon but view with regret our markets filled with American produce free of duty, while Can- adian produce heavily taxed when sent to the United States markets. " Your petitioners respectfully pray for such . protection as will secure the home market for the home producer ; or, that the same rate of duty be levied on all agri- cultural products coming into the Domin- ion from foreign countries that is imposed by said foreign oonntrfM npon ov pio> duce. ' Mr. Hiu., Master of the Dominion Grange at that time, testihed in answer to tlio O^xoir Committee \i, ^i) mtmne. '■ " Do you thiuk the farmers of Canada would be benefitted were the Canadian Government to impose upon the United States farm produce entering Canada (or consumption a duty corresponding to the duty levied by the United States Govern- ment upon Canadian farm produce exported into that country T" The following letter was sent by Hon. M. JoLY, the " Liberal " Premier of Quebec, and himself a practical farmer to that Committee : i (i>t'i,,<.<.Is QgEBKC, March 24th, 1876. 0. T. Orton, M. P., Ohairman AgrH Com. My Drar Doctor, — I only received to- day a printed form of questions from your Committee, in the labours of which I take a deep interest, and hasten to send you my answers. I am afraid they are rather lengthy, but I must acknowledge th.t I feel some satisfaction in bemg allowed to give my views on the subject, however little weight they may carry. It is a sort of a protest against the ac- cusation of inconsistency which has been brought against me during this Session in the House of Commons and in the Press, for having given up the main plank of the platform of our Parti National. We claim- ed, above all things, a National Commer- cial Policy. My friends have been twitted with having given it up, and I was brought in as the leader of the Parti National, but I have not given it up. If I remember correctly, you helped me in 1873 to obtain the exemption of duty for the beet-root sugar manufacture, and I hope you will approve my views on the subject. I remain, my dear Doctor, ,, ,^ . ,.5,, Yours sincerely, Tf^?. hVr£ W H ^ JOLY,^'-* M. Jolt's replies to the Committee's questions were as Tollows : ,^^^ Q. Is it in the interest o| the DominioB fl X 73 (M. thftt we Rhonld oontinae to admit American produce free, while Canadian produce ex- ported over the border has so heavy a tax levied on it T A. No. it is against the interest of Cana- da. I humbly think we should not adm'> 74 ■U^i tt Q. TT iv'« ytM foaiiil grinditig in bond •onveuient and prauticable and fair to all parties oonoemed, and wo aid you recom- meiid it in eaae of the imiKwition of a duty on foreign whMt T ' X."No.' '''*■'■••' ■'''•*' -' " ,'•" " Q. As an ad valorem duty of 20 per cent imposed in the United States on flour against the fixed specific duty of 20 per cent per bushel on wheat, generally oper- ates as a discriminatory tariff against ttie Canadian miller, would the establishment of discriminatory duties by the Parliament of Canada, in your opinion, be advisable ? A. Yes. Q. Do you think the admission of Ameri- can horned cattle, horses ami sheep into Canadian markets at a 10 per cent duty, while the United States impose a 20 per cent duty ■ similar aaimu.l8 sent from Canada, acts lously on Canadian fai mers ? And v\ ould you recommend a similar duty to ihat imposed by the United States T A. Yes Q. Can the Canadian farmer raise pro- fitably all the grain required to fatten his stock, or will it pay him better to buy In- dian corn? A. With a good system of farining we ought to produce enough to fatten our cat- tle. Q. What articles produced on the farm require a home market for their sale ? A. All bulky articles. Q. What changes, if any, are required in legislation to make agriculture a more desirable and profitable occupation for the people ? A. Give up all abstratct notions and study the real interest of the fanner and manufacturer ; they ought to go together. The experience of the fanners of Can- ada, as given in these and many other narratives, of which space forbids the publication, is that of the manufac- turers, viz. , that the one-sided system is not a fair shake. The farmers and manufaoturess of England are beginning to make the same discovery. Already a ionnidable movement in favour of re- ciprofial tariflh hai grown np thnre, ami tho press, thoti^^h inUjasolj Freo Trado, admits that tht< movement is liku>y to flourish. Sheffield finds Americ in axes and cutiery in England, while she is un- able to enter tho United States, and so tm in almosi every branch ni trade, even to calicos and oottons. Fnnce and Belgium are also vigorous and succesd- fnl competitors. The experience of Germany is also against Iho one-sided system. The Imperial speech from the throne at the opening of the German Parliament, on the 30th October, 1876, was thus summarised in the cable de- spatches, published in the Canadian papers the day after : " The Impurial " speech mentions the general depres- " siou of trade and industry in Ger- " many and throughout the world, and ' ' states that the object of the Govem- " ment's commercial policy will be the " protection of German industry from ' ' the prejitdicial effects of one sided cns- " toms regulations in other countries. " This object will be kept speci- " ally in view in the impending nego- " tiations for the renewal of commer- " cial treaties." In April last Bismarck resolved to dismiss certain of the Fed- eral Ministers who, alihough their Free Trade experience was by no means a hapi)y one, yet clung to the theory with a fanaticism worthy of certain Canadian statesmen. The London Standard thus summarised his reasons in his own words : "I have given Free Trade a ' ' fair trial, and it does not seem to have " benefitted the country, commercially, " industrially, or financially. I am " overwhelmed with .lamentations re- " specting the decline of trade and the " decay of manufaoturing enterprise, " and with assurances — from people for " whose judgment in such maitten I en- " tertain the highes* respeat — that par- " tial and moderate Protection will rem- " edy these evils. Therefore I aUo pro- " pose to give Protection a chance of " ameliorating the conditions of the .J 75 " mannfruTtiiring and operative clauea, " and of lightening the load which the " budget unquestionably lays upon the " shoulderH of the nation. As certain " of the Ministers with whom 1 have " hitherto worked on my former plat- " form will not range themselves by my " side on my new platform, I must rid '* mysfclf of them, and get others in " their place, who will carry oiit my " resolves." VHO PATS THE DUTY ? In hope of bothering the farmer in his study of the one-sided system, the ultra Free Traders in the Cabinbt and its press niainiain (although it is pretty certain they don't beli^^e it) thai the American consumer pa^s the difference between the two ^^vi^li. But tliis is American aiithority oa that snbjoct. On the 23rd July, 1808, the Collector of Customs at Oswego wrote to the Treasury Depart- ment : — "The efiect of the abrogation of tiie Re- ciprocity Treaty, in in . opinion, has been the addition of several millions of dollars to the United States revenue at the expense of our Canadian friendp. * * * As it now is, the import aut> is paid by fte Canadian producer or manufacturer, and not by the American conaunicr Any re- duction in the rate of duties on impor- tations from Canada would benefit them just as much, and would not lower the market value here. " ij'C *: The CoUectiir at Buffalo writes, under date of Dec. 18, 18(J8 :> " The termination of the Treaty of Reci- procity between the United States and the Canadian Provinces, and the subsequent imposition of duties under the tariff enact- ments oil articles of importation, has been a source of large revenue to the United States Goveinment, the burden of which has been borne by the foreign producer or manufacturer ; and any abatement or re- duction of duties would, of course, redound to the advantage of such producer or man- ufacturer, and would not tend to reduce the value of the articles imported into this market." Under d«te of December 28th, 1866, the United States Cons id at Olifton wrote to the Treasury Department : V " The amount of exi'orts, with the ex- ception of lumber, to the United States, can have little effect upon the markets of the latter country, and the result is chat the duty paid on such exports ia borne wholly by the producers, who, in receiving the l>ene(it8 of the markets of the country, ar« thereby compelled to bear a portion of the bi- Ml of contributing to the aupj^rfe of its .^dtitutiona." ^. "In this way," says an American writer on the trade question, " the peo- " pie of th'" Dominion annually con- *' tribute out of their own pockets from ' ' eight to ten millions of dollars to- ' ' wards defraying onr national ex- "penses." The other day the Toronto Globe, not in its editorial columns or tariff notes, for that wotdd have been heresy, but in its honc«tor commercial report proved this of the wool trade ; and every farmer who lives or trades on the frontier or who ha.s any ac both HJdea are discussed with singular < clenrness and ability. The Chicaf; . .» Jmimal of Commerce eloquently says : - " The history of all the past shows that . " all the strong .^nd great, thrifty and . " influential, progressive and successful * ' ' nations have been precisely those . < " which have always carefully and jeal- > " ously guarded their own interests, and < " perseveringly promoted and eiicour- » ■m. * ; ..s.^i iKJ r ; ,4;- h^ Joi'^afe^. t ^>*- I <«T A^' 7f ^ " A^eJ, and shielded their eitliwns in ftll ] *• their iudiutrial eiiterprista. Evory I Quverument owes this tu its people — to its luauufaoturera no less than to its | fariuen — to the man who biiilda a j factory as to the man who Imilila a bam. He who sows u hold and ho who converts raw materials into finished products oii - 1.: w .r-ii' I riii'i. •-. ■i;(».'-: > '(■•■•«,! /I .M<;i il,\. < ^^'^J»-l■^t^(«M( » •■ v I •«:li 111 O ■|i)<'t 'liJ * I ,.(-! .>r,-, 1 . .. I ! :i ,/.iwf|'.i|.,ii'' > '»:,i>l7UiM i..ii ■-n;i ■:>.)'>, liiif -ri/'" I / ■. i.:t ■' ',' .(Mi 3 .-jii,! JHO »}l'0'<'^".ra iJi 1<...'.ii'»( '!»)lj'i». i'.d ^•'' )),i-»ri ■>». 7;. ! ' til ',. ■ J.I i>*.i<" l-J tiii.jv fi'iW'oV'i ^,ti •>( iin (.,-».i.. Mfii .'■• ; iii: .'t: .' 'i'-....-. ••' ..ill ■ r»»,i; miff /f.'ji.ij i .^ilu'^oo '»f/,.i tv '.i..;i*i-' ..(.i ■, -. ■{ 1 III. ■ . 31 i' ■ . ,!'t ...'.» ... '.■'til- '■'■•i j;->i ,i|>»(v) ,1 ,...-,1 I!.',* V ..,. •in;. • ■ (;, in/: •' ■ * , ■^'•'>A I.I I { u,;;/ I':-.! ,/ (vj ts- ; ' I'M.'.'.r'. 'yt'. t '1.1 ■^' (J! Of I •il'Ii- 0*1 ; !<■ di.' . ■ ,'. .•' .- , i!i;;i '.vjii J itijut , *..j ■■ i""i»' 'f <•' i n '. T li... !li *. ■■jj:!' ;' Jl :' ■<. . 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I ,.i<^ J JvCitr'.Vf 'j; :1 'Hi ff j .«' i>f(!f',i!'i <•/? ^' -i . ir ' ' v.^.i J;,,'!** -**■_,. »Ji '^^ ..^it«t 'iti! ..•:;.. i-v i'i'"' !s»-;.in 'n ,i«iT<' vt^afi^S'i'! -^^ifi vit7v.ii:?Ji>|at*»,f;.j;t'.'liiii >•. • Iq ■••u. si? if>.j4w (we-; :iii> ,*">>j1:' . '•W (11 ..'iT'i-Kj'i'i'j ■.111 I .sldif ».'»Mi; . . : > !nAj8y_K ilit'>*»?«:j l.fn) ■'.;»'•■ '"' ■ T . ■ =Tfrjf*r**^.'jn''-.--M)t -Bf;'* «t ■ W*''"' ■ '^ ■"■"' '■' * r:il "jtiy'^Hiu:! ju. , :■-; .■ • 'M'tmm 78 WORDS FROM AN OLD REFOBMp. / The following is an extract from the address of Mr. Hay, the National Policy Candidate in Centre Toronto. Mr. Bay is the largest furniture manufacturer in Can- ada, and -svas for forty years identified with the Reform Party. His words carry weight : — In years past, as most of you are aware, I was associated with the Reform party in thio Province. I bupported that party because I believed that in carrying out the profeaaions then made its leaders would E remote the welfare of the country. I ave left it because I have found those leaders unfaithful to their professions in every important respect — especially in Li.eir extravagant and waateful manage- ment of ■^'^3 public funds — ani be- cause I am well satialied that the com- mercial policy to which they are now pledged will, it persisted in, prove ruinous to our best interests and destroy the future of Canada. I have adopted the principles of, and join- ed hands with, the Opposition, because I am at one with its leaders on the vital question of a national policy, and because the experience of the last five years has con- vinced me that, under their rule, we may ex- pect far wiser statesmanship and a greater prosperity than we can hope for, f'-om the men now in power. So long as the present unfair and one-nided tariff relations with the United States subsist, no Canadian industries can titmrish, exposed as they are to ruinous competition whenever it may suit the Americans to make our country a slaughter nvarket ; whilt we, through their prohibitory tariff, are denied th« opportunity of even legitimate trade with hem. Nobusine* man, be he fanner, manufacturer, or other employer of labour, can flourish while the country is distressed. And when the employer suffers, the men whom he em- ploys, and the community iu which they live saflfer also. I nder our present system I am well assured that our con- dition cannot improve, and that the country must become poorer and every industry more unprofitable, and that, a fi-i'ther contraction of business must take place, accompanied by a coDMequePt reduction in the numbeor of those employed and the wages they receive. Our present ruleiB are either unable or unwilling to take any action to remedy this disastrous state of thir'];s, and at the same time are increasing enormously our annual expenditure, so that we shall have to face a deficit this year equal at least to those of the two previous. Five years more of a like management of our affairs will bankrupt oar national cnedit, and most seriously prejudice the position of the people individually. These convictions are not singular with me, but are held by many who have heretofore acted with the Reform party, and who join with me in thinking that the welfare of the coun- try is more to be desired than the promotion of party interests. Under these circumstances, then, I may surely feeJ encouraged lu seeking to promote so far as I may, such an alteration in our commercial [loiicy as shall secure the ex- tension and prosperity of our Canadian in- dustries of every kind, agriculturaL mining and manufacturing, rather than their con- traction and decay 1 am also strongly in iavonr of a most thorough system of retrenchment and economy in the public expenditure. Unless this is done we can in no wipa remedy the evil caused by the extravagant course pur- sued during the last four vears The pre- sent Government, althnugh pledged co economy and retrenchment, has largely increas^ji! the cost of every branch A th« public service and added enormously to th* national debt, and this too in the face (d a waning revenue amd a general 4ia- tress. 1 shall, therefore, if eleirttKl, en- deavour tr bring atx^ut a substantial redno* tiou in the coKt ';i f^oveming me countrj , wb'ch at present I hold to be wholly out (f pritjioiti'in to our means, feeling assured that uud*«r a pru