New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1862-03-11
A CHAPTER OF RAILWAY HISTORY.

The extraordinary Chapter OF Railway his
tory which We published in our columns yester-
day throws much light upon the exPedients
adopted in a colonial community for maintain
ing loyalty toward tho imperial authorities and
submission to the constituted local powers. II
would appear that only small part OF TIE
price which England pays for the luxury oil
maintaining a Colonial Empire on this CONT
nent is represented in the disbursements OF tue
Secretary Of State, or in the naval and mill
tary estimates, az these appear IN the faria-
meDtarv Blue Books. The story OF railway
fnanciering in tho British American PROVINCES
especially in the Canadas-shOws that, within
@ period Of seven years, out OF an expenditure
approaching to $40, 100000 Of English money
in the neghboring colony, more than S2o'OVo''
600 has been used for purposes oil direct OF
indirect bribery; and that governing majority
has been maintained through several successive
Parlialnents, by moneyed agencies on scale oi
slmo.t incredible magnitude. But that tae
statements which We report may be confirmed,
in all essential particulars, by official docu-
meats. and By evidence fully Trustworthy, II
would be almost impossible to believe that, III
community of t"0 and a half millions Of
peope. there could have been either the same
opportunity afforded for pldndef, or the saue
extensive and elabo ale machinery oei in mo-
ton for It's absorption.
Tie leading points Of the story appear TO be
these: a bargain was made III 1913 between
an ex.Minister OF the Colony. Mr.. Hlnchs-
now promoted to the GoyerGor'L!p OF Gniana--
and an English firm OF contracting capitalists,
under which the main railroad OF tbs country
WAS to be built the Influence OF the hrm being
given to float the stock and boHds OF the Com
paoy in the English market. The suspicious
attaching TO the negotiations attending TINS con-
tract on account Of the payment ct lns'allmen1s
ON half million of stock in the name OF the
Canadian Minister and the Chief Engineer of
the enterprise, were largely aggravated by TIE
subsequent operations OF the contracting firm
nud their agents within the Province. hrlr IN
nuence in the English money market appears
10 have been oyerestimated, and the prospectus
OF the Company had to be issued under q
difectorsbip composed mainly OF the officials of the
Province IN order to win even m0ment's atten.
ton although The enterprise, as placed before the
Cunadan Parliament, purporied 10 be that OF
IN ordinary chartered company, recelg,ng
temporary public loan. But even the official
character thus given 10 the arrangement on the
London Stock Exchange was insufficient 10
make the shares and bonds Of all iayorltes with
the English capitalists. They wanted, in add
ton. the Endorsement of the London agents Of
the Province, Messrs. Barings and Giynn; ard
this Endorsement, il seems, was procured under
threas OF withdrawal of the agency from
that eminent iirm-an agency computed at the
tine 10 be- worth between $500 600 and $500
GEO n year. This part of tie transaction, as
narrated elsewhere, will be found to be the
most sinruar in the whole story; and we
commend to the rejection of public or private
borrowers the courage and shrewiHess, no, to
say TIE scrupulousness-0f the Colonial dele
gate in bringing the English capitalists 10 his
terms.
In this WAY, tle enterprise came to be prac-
ideally "a Government concern, primarily Tor
the reason, no doubt, that induced TIE In
siish contractors and Mr.. iIncbs to strike THEN
mutually accommodating bargain, viz: that i
would pay better: but. also, in part Tor the
reason tuat Messrs. Barings a Glynn, having
been forced against their judgment into a
wretched speculation. threw Oh the Colonial
Minister'S q responsibility in the conduct of TIE
4 financial operations of the enterprise which has
/ gradually grown, until the public funds Of thc
Government Bank in Canada and the Rail.
way funds under the order of the London
agents of the Province in England, have be.
come mixed up in inestrcable confusion, 81
that at this moment it is impossible to say
clearly where the liability of the local Govern
mcnt begins and ends. An that is certain 10
that individual members OF tho existing Minis
try are compromised officially and personally
III the business; some from the opening Of INC
transactions; others by being gradually drawn
in by the early operators. And 1t is the
know ledge that half the leading public men OF
the Province are so compromised and have
shared TO such an enormous extent IN The
plumber. that embodeus the English managers
to make new demands, year by year, on The
Canadian Parliament and the mnded tax
payers.
i, will not aggrayato the troubles OF the
wretched shareholders and bondhollers in En-
gland to Say that the concern is thoroughly snc