The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-04-23

The CANADIAN RAILROAD TRouBLE.-We
made allusion the other day to the fail
ure of the Grand Trunk Railway Of Canada.
Further information states that the company
has been unable to pay the interest on its
debeptures, amounting to triHe over Sl2, OO0,-
600; that It has fallen back ON the Province
which guarantees the payment of the interest,
and that the Provincial government, thus
driven to take measures for the preservation
Of its own credit, has proposed to raise money
by increasing the tariff an average of 25 per
cent We have received and published else
where the resolutions moved by Mr.. Inspector
General Csyley, in the Canadian House, with
this view.
The event will, it is to be hoped, prove 9
lesson to people not only in Canada, but in the
United States ALSO The British contractors,
who have now failed, went to Canada soma
few years ago, under the auspices of Mr.. Fran
els Hincks, now Governor General of the Lee
ward Islands. They were represented by him
to the Canadians as men Of inexhaustible
means; they were, he said, the real controllers
of the London market; they could, of them
selves, and with their own means alone, build
the railroad; their influence was equal to their
means; and it was happy thing for Cana
da that they had been induced to smile upon
its distant shores, and employ q por-
ton Of their idle means and super
fuous energy in developing its resources
This was what Mr.. Hlncks told the Canadians,
and they, unhappily for themselves, believed. A
contract was made with these Englishmen for
building the road. As they were SO rich and
so influential and 80 great in every way, while
the Province was poor and comparatively I'M
known, they got the best of the bargain. Mr..
Hincks proposed that the Province should pro-
vide halt the capital required, and guarantee
the bonds OF the road. In their simplicity the
Provincials agreed. The contract was signed,
the road begun, and everything promised we'll.
But after one or two minor sections Of road
had been bought at enormous prices, and few
miles built, all of a sudden the supplies Of
money from London ceased. The Canadians,
don capitalists without emotion and respect,
were surprised; but they said nothing; and
presently, when the Londoners said that they
were little short, owing to the war, and would
thank the Province to let them have couple
Of millions in advance, the money was voted
without question. Next year. same dilemma;
the two millions were gone, aud no money.
The Province, with the feelings of Jeames when
he lent money to the Earl Of Bareacres, rushed
forward again, said that the contractors
couldn't be expected to raise money while the
war lasted, and voted $780, 900 in lump
to help the contractors. This gone, back come
the Londoners, hungrier than ever. This
time, they say nothing about the war Consi-
dering that peace is re-established, they wisely
confne their revelations to q general state
nent that the "company's financial affairs are
embarrassed" and they ask the Province to
pay the interest on the bonds they guaranteed,
limiting not obscurely at the necessity Of
Province guarantee interest on the whole eX-
penditure. The government, somewhat ava
kened by this time, sees that there is nothing
for them, as endorsers, to do, but to pay up;
and therefore propose to add one million of
dollars in round figures to the burthen of the
people of Canada for the fiscal year 1861.
The ultimate question-as to what is to be
done with the contractors and the roads as
yet Kept back We can tell the Canadians
what would be done here. The State would
at once proceed to take the property as the
only return it can ever get for its advances.
1t would then discuss the shareholders, who
must be liable to some extent. Without any
particular knowledge of the transaction, it
men like Francis Hincks and the English con-
tractors were not such fools as to embark in
this enterprise, and really lose money in the
simple straightforward way they say they have
done. The whole affair needs thorough and
searching examination. If there has been any
fraud-and we are bound to say that if the
transaction had taken place in the Western
States we should consider it our duty to
point out the uncommonly suspicious charac
ter of the whole proceeding-the guilty par
ties should at once be held to account and JUS !
lice done. The government of Canada owes
TO the people not to allow them to be |
4Yindled, Neither high standing in London, |
nor elevated STATEN abroad, should ahield the |
authors Of the railway from the most thorough
trial.
CONE AT LAsT-THE RAINs-THE STREETS
CORPORATION EcoNoMY.-The general protract-
ed rains required to sweep from the woods
and the mountains Of the interior the heavy