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Lea diagrammaa suivants iilustrent la m«ithode. 1 2 3 1 2 3 4 5 6 tretiented by THE KAMINISTIQUIA AFFAIR The Parliamentary In- vestigation. REVIEW OF THE EVIDENCE. THE "JOB" EXPLODED WHY THE TERMINUS WAS SELECTED. THE NEEBING HOTEL Testimony Before the Senate Com- nnittee. ( From (he Ottawa Free Press, Jnhj/fth, 1878. ) Perhaps no single action of the present Reform GJovernment has given rise to more anil gi-eater misrepresentations than the selection of the Lake Superior terminus of tlie Canada Pacific Railway, anil certainly none has been more free from the very suspicion of favoritism or corruption in the opinion of unprejudiced and reflecting observers of public events. l''or two years, or more, the people of Canada have been treated to a surfeit of slanders, on the part of Conservative speakers and journals, in cotniection with what has been called the " Kaministiquia Land Job," which includes also that special delight of the Opposition, the iNTeebing Hotel. It is a healthy sign of a bettir state of affairs in Canadian matters of this form the chief upon an adminis- unfortunate it may be tliat our country contains a class of people who can consent to resort to such a necessity. It is the earnest desire of tlie writer of thef-e lima to speak without exa^'geration or umUu" party l.iias, but tho politics when kind necessarily ground of attack tration, however conviction cannot be overcome that tlji.s and other charges of a similar nature aie made with singular insincerity, and f« >• the smgie purpose of so injuring the char- acters of our present rulers, that they may be supplanted by their assailants. Ihe administration of Mr. Mackenzie and his colleagues has been remarkably free from either blunders or crimes ; after nearly five years of office, it speaks volumes for their capacity ..nd integ- rity, that their opponents can neither discover nor invent any greater or graver charges than this miserable Neebing Hotel affair, the Steel Rails purchase and others of a like character. It may not, perhaps, appear singular to those conver- sant with the history of the Conservative party during the last twenty years, that "\eir leaders prove themselves unscrupu- lous enough to resort to any ex- pedient in order to regain that place and power from which they A^ere so sum- marily hurled by an indignant and out- raged people a few years ago, but it is cause for extreme regret that the Senate of Canada could lend itself to the promul- gation of charges that escajje being mis- chievous, simply because they are so con- temptible. Well knowing how badly the 'Kaoiinistiquia Land Job'would fare in the popular branch of the legislature, the in- vestigation was carried on before a Com- mittee of the Senate, a large majority of whose members were bitter partisans prepared to go almost any length to serve the interests of their party. The report made by that Committee, together with all the evidence taken in connection with the matter- nave been published, and it is proposed to show froin these how groundless have been thechargea of wrongdoingin the .^election of Fort William as the Lake Suiierii.r terminus of the Pacific Railway. In considering the subject where questions or propositions actually pre- sent themselves, and it will be best, ay w. U as most convenient, to discuss each separately. (1.) Was the choice of the terminus a judicious one ? u (•' ) Was the Ciovernmeiit guided solely l.y cunHideratioiiB for the Ijublic iiiteroHt ill making the choice ? (3.) Having regard to all the ciicuiu- stances was the value paid leaaonable iind just ? ... Ill the diacussion of matters bearing (.11 these (questions nothing will be ac- vanced but what cannot be supported by evidence; indeed, it is intended to allow the evidence to speak for itself on every possible occasion. (1 ) Was the choice of the terminus a judicious one ? Originally there were three points contending for the honor and advantage of theterminus— Aepigon, Prince Arthur's Landing, and irotec- tion from all windH. \t presents a marked parallelism to tlio rivers whicli iiave led to tlie jommercial pre-eminence of Chicago and Milwaukee. No othir walern in thin riciniti/ extend the Htiui.t nnf'i haven to vensdn lo'ulin;/ and tlijirJmrijin;/. The winds passing with extreme violence over the bay create seas extremely heavy, which render the mooring of vessels at any exposed wharf impossible. * » » The width of the river is generally .ViO feet, and it is evident that M'e have here a harbor of rare capacity, equal to any of the requirements oi commerce which the enterprise calling it into being may create, giving efficient protection to shipping, with every convenience for wharf construction." Aud he added: " I think you have to guard against peiiodical storms on Lake .Superior, which some day will tell a very serious tale." Asked as to the relative cost of the cwo harbors, Mr. Kingsford said: " I hold that Prince Arthur's Landin|j should be 18 feet in depth. My estimate is $64.3,000 for a harljor of 18 feet and per- manent work. By making tlie river 17 feet deep, 100 feet wide, and 200 feet wide througli the ))ar, the cost of diclg- ing would be $81,700. To make it only 100 feet across the bar it would be >?(i4,- 000." In reply to another ((uestion thi; witness said: '* I consider the Kaminis- tiquia is- just the same as the harbor at Chicago or Milwaukee." Mr. Jolm ^lackellar, an old resident of the locality, testified that in the fail of 1877 the steamer Frances Saiith put out from the Landing for tlie river to seek shelter, the weather being too rougli to admit of her lying at the dock. lie also said : "I have seen tlie steamer Ontario, in 1874, come within a hundred yards of the dock, and leave it, and I have seen boats in 1S70 take up their anchors and run to Welcome Islands for shelter. That was before there was a dock at the Lauding. The bay is like any (itiicr c:.\|iiiiisonl' water, '.'lio wimls Miivv tliortj as vvuU as tlioy will on Lake Ontario or any other open bay." Q - Wiit< the iroronimcnl (fUuled HO^eh/ fii/ rnnmln-atiom for the pi'ihlic hitcri'x'sf i'n )iiid-iiito survey the line from tlie i\aministi<|uia River, or, more jjarticu- larly,from Thunder Bay. T do not know Miat it was from the Kaministiquia Kiver, westward. When we obtained informaticm regarding the work, in the .s|>.-iug we (thp-t is Mr. .Fleming, Mr. '! rudeau. my deputy and myself), had repeated consultations about it, and my own impressitm was that it would be better to bring the railway to Pointe le Meurons, that ijeing the head of the deep water navigation in the Kaminis- ti(piia River, so as to have the whole length of the river for haibor purposes, and save so many miles of railroad. Mr. -vlurdoch, I understand, had in the mean- time surveyed a portion of the river bank where it was ultimately located. Mr. Fleming, Mr. Trudeau (mydeinity) and inyself had frequent consultations about it. I knew nothi/ig technically myself. ^ liad been in the Kaministi- quia Rivt I, and knew generally what isortofa river it was, the formation of tlic banks, the deptl, of the water, and also the depth of water on the bar. I liad that general information ; and Mr. Fleming seemed to be quite clew, as well as Mr. Trudeau, that that was the best place to locate it. I coincided with that view, and it was selected by general ac(piiesc€nce of the heads of the Depart- ment ; the Chief Engineer ; I also under- stood the district engineer, my deputy and myself. Q— Vour own opinion, however, was tliat the cite should have been higher up than the point ultimately chosen ? — Yes, it was my impression, and Mr. Fleming and Mr. Mr .och both said the high banks aliove would make it ])ractically iinpo.ssiblc to get to any point high up on the river Ijank. <2 -It was then brougiil ('own to the nearest available jioint ? It was l>rought to where it is. \ do not renKsmber :.ll the reasons, as it was in general consul- tation of an oral ciiaraeter rather tlian written eonununications ; but .it was brought where it is wholly by the en- gineer and by me. Wliat more is noeded ? Surely no- thing ; a clearer case could not have been ma It may be ncccHWiry to say at tlie ouf • •set that, luvd MoKsrs. Uli\or, DavidHou A, (V). un interest in any of those lands, it IS oxtieniely j robahle nothing would ever have l)cen said ahout the value paid for tlieu). Mr. Oliver especially vi'as known as a prominent nicniber of the Rofomi party, and having a shrewd suspicion "^i )«ow similar matters were inanagepointment of the valuators:-! wrote to Mr. Panlec Cominissioner of Crown Lamls for Ontario, stating that we liad to obtain the services of a I'rovincial land surveyor to work out afr-jsh many of the boun- dariea in the townshiitH and in the town plot through which the railway was to run, and that it would bo necessary for us to get a petition from tlio residents under the Surveycu-s' Act to make sueli fresh definition of the boundary legal; and I wished at the same time to use such surveyor as valuator. Not knowing any suitable person myself, I said 1 would be glad if he would name some person to me who was acquainted with that coun- try, and hartion . tlirieot was to buy land as cheaply as possible at a uniform price, and not to allow an mcreased price in one placer ore than in another." To supj ose nnythinft else would be to argue that the vafuators were a pair of knaves and imbeciles. M:-. P. .1. Brown testified that the firm of Oliver, Davidson & Co. had invested "something over one hundred tliousand dollars in lands at Fort William." This witness gave the prices at which lots had been sold previous to the valuatitm, and al.so what had been allowed for them on the part of the (jlovernment. Lot 22, south of Frederick street, had been aohl tor ^250 in 1874, and the valuator al- lowed 1290. Lots 35 and 36, north of , but the owner refused to accept it i^nd threatened arbi- <-ration, md the whole amount was afier- wards refunded to him. In Mr. Brown's opinion, which was supported by that of Mr. Bethune, Q.C., Toronto, the case \\ould have gone against the (>ove>-nment if it had been left to arbitration, on the ground that the purchaser had bought it 111 good faith, and without notice of the same having been appropriated by the (Government. Mr. Brown furtlier testi- hed; — Q. Do you know anything of lot 26 on the .south side of Fredericka street ?— ^'es; that lot had been sold and subdivid- ed a dozen times during the winter of J 875, at Fort William. It has been mh divided ;nto seven parcels. Q. Do you know their names ?— There 1.S Driscoll of Kincardine, and Cameron of Kincardine. Q. Do you know what they paid ?~I liave a memorandum here, an abstract taken from the registry ofKce, which shows that on 5th of February, 1875, Ambrose Cyrette, who is the patentee from the Crown, sold twenty perches to Yumiiii;^' loi .ifiw. iiien .John Park divided that piece, and solil ten pen;he« to D. Cameron of Kincardine, who was .lohn I'aik.a nier-jhaiit at I'liiicc Artiiur's Luiidmi; for .*150. 'I'lien .)o!,u Park 1 -- — -»--....., v.i.ir fv'as lis partner in tliu businoss at Prince Arthur's Landing for $350 ; and Um perches to , John \V. Driscoll of Kincar- .hne, merchant, for .$.';<)(». On the same day the 5tli of February, 1875, Cyrette sold to Andrew Boulanger .35 perches for $200. Boulanger sold that to Tliomas Marks, of Prince Arthur's Landing, for the same money, and he was tlic owner when the reserve was taken. Then (Vrette soM 29i perches to ' )hn C. Hoskmgs, who keeps a hotel, I think, at Irince Arthur's Landing, for .'ii!jr»0. Hoskings sold tliat parcel to John Pork and John Park sold half of it to William Kamsav of 1 oronto for $3.30. Q. What is the sum total for that hjt •' —The sum total would be between $1 500 and $l,«UO. Q. What is the date of that sale t(. Kamsay ?— June 6th, 1876. The tirst sale was in February, I875. y. What sale occurred in February, 18/5 ?-From Cyrette to Park; Cyrette to Boulangar; and Cyrette to .fohn C. Hos- kings. Q. When was the sale to Boulani/er •' -In Felrua y. Can yr and state ' lots. Take paid, you sa in 1875?— t Q. What (U Hoskings ?— Th-vt he valuators list '•>wed for those instance, ho Sispurchaseil l;ors allow to me under the names of John Vark, .>)^., and William Rambojr, $190, or $160 for that, parcel. Q. That would be ten dt)llar8 more than they paid? What was Kamsay allowed ?-Ohe hundred dollars -that is for the part of the Hoskings purchase. Q. What did Ramsay's purchase cost hnn ?— Three hundred and thirty dollars. Q.— Did he lose that $230 ?— I suppose so. I had considerable correspondence with him, and he speaks very harshly of Mr. Park who conveyed it to him. Q. Take Cameron's case; he was al- lowed ^100. Wliat did that lot cost him?— Three hundred or three hundred and fifty dollars. It appears on the abstract. Q. Then he lost $250? --Yes; he told me he had paid $350, I think it was, Marks paid $200, and got $80. He h.st $120. Q. Did he make a row .aboutit? He did. Q. Did hi" appoal agaiiust tli« valua- tion ? If,, canio t.. i,„. Movoral ti.uea, l.«t I t.l.l liiiii I ooiil.. do iiotliiiig, UH the valuators inado that award. Pinally, he tmk the n.oncy, but it wa« several months aftt-rward < when he got it <■}. What did Nicholson pay "—I do not know what ho paid; ho got «40. to I nnce ArMiur'n Landing, as (H)n.pared witli itH preHcpt terminus at Fort Wil- • •un? -I wo.dd Hay if the station were to Itephiced, sa: whore the «iovernn.ent i^3.j.SUO, according to location; that was the huam of our valur.tion. ()f course tliere g. Iheaverag.. of the whole would bo li.ghor than tf.at ?--Vo., but it was ma. (, uj. by parties who had jiaid a L^roak deal more, and they would not take le.-s witliout going to arbitrati(.n. Wo ol..sed by givm ' $'2r> to r»0 extra in casoa -.vlinv they had paid m.Me for the lota. Q. What in the conclusion in y,„ir '"•nd? Would the Government have saved, or would you have been enabled to ol'tain a less price, if you ha.l gone to arbitration?- I «,„ positive we couhl not. In any case •> uer^ there was an attempt to get excessive prices, as there was in iine or two cases -for ii.stance, one lot that was s(dd and cut up they valued at nearly .$2.00() - it was rcisted. It was lot number 20. Scuith Fre.lericka Street- we valued it at S.S50. 1 1 was a laive lot. considered to be spfjcially valuable, md 1 am not .ure but what we went up to •HIH' va'ue for it. ^^ ^;>; V>^^ticiiltxv cMea, Air. Read gave the following evi.lence : There was Mr Robert Thompson, of J)aluth, we Had also to arrange w-th him, but he placed his case in the hands of a lawver there, to deal with me. He said he had been udercd $-400 for his lot-r27r) was the value we fixed upon it, but we finally closed with him for |.S(X). Q. Do you think bitter terms M-uuhl have been made if it had gone to ari.i- I tration ?-No; I think not Q. How do you know that ?— I do not know but 1 think not. Then there w -s Ars Newton in Duluth, whom M'e liad to deal with. Q. Did you arrange with her ?— Yes. $m "'"'''' *^''' ^"" ^'^'*' '^*"' •" Q. How hmg did slie hold lier lot '— She had held her lot for some years. Ihose parties would rather not sell- thev prefe-red to keep their lots. <^Ann ^n?""* '■'"/«''« ^ant for her lot ? - -WOO. hen there is a Mr. Charles . Bak^H- held lot No. 2, Water street, east. ' ,.,9- ^^'I'cre di.l he live ?-I„ Fort William. Q. Is he living on his land there •>— \ es; he i.or/.ht forty feet frontage of that from Ax. McLeod, ,vud paid $100 tor it. Q. Did you satisfy yourself that he ac- tually paid the money?- Yes; there is no doubt of that at all. He put up two buildings for a store and ))ake-Iiouse He I 1 t ♦ i t (i ^ t il F c fi P •i,., . I 9 I Wfts carrying on n littlo bakory at fclio turiu. H«' Idimocl CtOO, of course there was Honii' (Iniriugw to 'lis btisiiioHH, t iking ;iway Ivn lot ami hako-lioiiHo, hut wo finally elo'^od with hitn for $'M)0. [t in- «!lii(l()il tlio two hull lings he halput up for h.iKiii'{ pnritosen. 'Ihere is a Wm.Mc- (^arrou who bought from Cyrotti 'Ju feet of lot No. 1, WatMr street, tn 1874. He paid $W)0 U>v that lot and the building, Q. When \v\i\ the buihiijng upon it been erected? -It liad been up some years. Wo thought that ho had been imposed upon, and had paid too much money on the property. However, we closed with him for $r)50, for what he had paid SffiOO in !874. * Q. Had you any doubt on your own mind from cho evidencj y, .. took that he ha, I think wo got imr own valuation fixo.l upon. Q. Relat vely to the amounts paid to other parties, wore the figures given *hiim in eyeess of those given to (>iher parties, conaideriug the position of the lots?— iVo; thi'i/ wi-ii- not; tkni wore raf/wr ttruler. Q. Vou think yor. effected a better ar- rangement with ihom?- Yes; taking the two lots together— lot numlwr six and tha town plot -the town plot lots were pretty much the same. In fact one member of the firm. Mr Davidsou, testified tliat ho "got lesaf:-orn the Oovernmjnt for Mrs. Davidfjoa'a lots than anybofly else." In all this valuation, where so many different individuals were concerned, and so many different properties were con- sidered, it would probably bo ctrango if some isolated cases did not occur in whch some hostile and unscrupulous critic couhi not hang a suspicion. Honest and rea- aonabh people, however, will ailmit, from the foregoing, that the vrdiiators discharged the onerous duties e-,, ffjd to them with great carefulnes :„.i: - Q. And Dnscoll?— Driscoll j^ „ .HfiOo. y. What did he lose ?— Twa hundred and ninety dollars. Q. You have been Reeve of the Muni- cipality of 8huniah and own prop^.-ty at Prince Arthur's Linding,and are capable of answi .ng the question 1 am about to put to you. What would have been, in your judgment, the relative cost to the country if the railway had boen extended gencB aud fidelity. They had many things to consider of which we who stand in judgment over them have no know- ledge whatever; that they succeeded in a manner, upon which a most searching and prolonged investigation utterly failed to en^t the least discredit, speaks highly for the good judgment and integrity of themselves and tlie Minister who ap- pointed them. Vnd now we come to that Neebin" Hotel affair, perhaps tlie most oontempt- ible of all the slanders which a political party could stoop to use agaiuat another. It is so contemptible thac one's common ..rnse and dignity are offended by beini' obliged to discass it at ^ii. The whole affair involves a sum of only five <-hou3- and dollars, and if every charge, every claim made by the Opposition in connec- tion with it. be admitted, t!iG verdict of the frovernment's extravagance and cor- ruption would probably reach the enor- 10 I mouB Bum of three or four hundred dol- lars. Even Senator Aikins will not deny that the hotel was worth something, and in his most desperate moments he has not been known to accuse the (Government of a greater crime than the squandering of the sum mentioned. The circumstances are briefly stated thus: Befc ^ it became known that Fort William had been elected as the terminus a number of gen- tlemen formed a company to build an hotel at this place. The members of the company were Allan Oliver, Jos. David- son, Brown & Wells, J. J. Vickers, Geo. Faulkener, J. S. Mc- Hannay, A. Mitchell, J. Duck worth, W. D. Mackenzie, John Ritchie. Robert Hay (now the Conservative can- didate for Centre Toronto), Robert Henry, John McNab, S. J. Keith, and J. D. Henderson, nearly all of Toronto and of both shades tf pohtics. The un- dertaking vt'as a purely business one, but unfortunately the firm of Oliver, David son & Co. M as mixed up with it, and that, of course, is enough to stamp the whole affair as the basest of political conspiracies — in the eyes of your genuine Conservative. A builder, Mr. J. D. Henderson, mentioned as a stockholder, was assigned half the shares on the un- derstanding that he Mould put up the building. Work was begun early ii- 1875. and when the valuators visired Fort William the following year the hotel was well advanced towards ccmi pletion. The buildijg was rough in its construction, especially when compared with others in older and more civilized districts ; but from t' i evidence taken before the Committee, it would seem to have been of a tolerably substantial character, and ex- actly what would be expected in a "western town," just springing into ex- istence. It came within the limits of the Government reserve, however, and had lO be appropriated. In valuing it Messrs. Reid and Wilson took exact cost as nearly as could be ascertained, and with a reasonable allowance for damages, a sum of five thousand and twenty-nine dollars was allowed. It may have been excessive, but surely it is fair to assume that the valuators were in a better posi- tion to judge of the reasonableness of the amount than any of those Conserva- tive orators who have so much to say about it, and they were at least equally anxious to do thestrictest justice between the company and the Government. Apart from every other consideration, the pub- lic will be disposed to place im- plicit reliance on the judgment of the valuators, who had no possible interest of any kind to serve other than the simple carrying out of a fair and equitable bargain between the two parties. They were honorable men, and in discharging the the position to which they were appointed there 's not the slightest reason to believe that they had any desire to favor one party morr than another; indeed, the supposition is all the other way, and there was not a particle of evidence throughout the whole investigation to indicate anything to the contrary. The testimony of Henderson, Oliver, Davidson, Leys and other inter- ested parties may be entirely disregarded, although it may be stated that the first mentionedj in his examination, showed himself to be a person of very loose scruples, and his evidence was di'^tinctly contradicted in several important points by all the others. There is good reason to believe that nothing would ever h,ave been heard by the Neebing Hotel had not ii euden on disputed with Mr. Davidson over a payment of sixteen dollars, which the former claimed as due to bim. Two practical builders, Mr. Durrand of London, and Mr. Law of Meaford, made estimates of the cost, the former from measurements supplied him by Mr. Eeid, and the latter from mea- surements made fey himself. Mr. Durrand expressed it as his opinion that $2,500 would have been a reasonable al- lowance for the building as it came into the hands of the Goverr;ment. Mr. Law went more into detail, examined care- fully the whole structure f om cellar to roof, and declared on oath that the building was worth $3,000. Ihe amount allowed by the valuators was 13,450, the difference between that sum and $5,029, the to' i\ value being made up by the price of the land, unused material and damages or interest. But it must not be too hurriedly concluded that the sum of $460, the difference between the estimate made by the valuators and that made by Mr. Law, was in reality a gift to the Hotel Company, or that the tountry suffered to that extent* through che incapacity or worse, of the valuators. There is no reason to bel'eve that the ac- jounts of all work and material, which were supplied to them by the Managers of the Company, w« re other than correct, ud had the law experienced all the dia- ' T L •'} i 11 > r advantages of buildinc on thn> , or course; indeed, so far did thev carrv i