Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1873-08-01

Letter from G. W. McMullen in the Montreal
Herald.l
To The Editor of the Montreal Herald:
SIR-So much has been of late said about
my connection with the Pacific railway ne
gotiations that think it better to lay a full
statement of my position before the public
visited Ottawa in March, 1871, on a Chi
cago delegation, and while there met Mr..
Waddington and Mr.. Kersteman, who were
agitating a Canadian Pacific railroad, and
who introduced the matter 10 my notice
After looking at the explorations of Mr.
Waddington | concluded 10 take the subject
before some friends. In few weeks Mr..
Waddington and Mr.. Kersteman visited
Chicago, and the result was that | pro-
posed to organize company to build the
road on terms approximating those which
rumor reported the government as willing
to recommend to Parliament. About six
weeks later we visited Ottawa, with an in
formal proposal for undertaking the work.
We met Sir John A. Macdonald, premier of
the Dominion, and Sir Francis Hincks, the
Dominion finance secretary, and it speedily
became apparent that Mr.. WaddingtOn had
been Oyer-sanguine in his idea that the for
nation of Il company would be entrusted to
his hands. After some conversation, which
intimated that the government would wish
to incorporate prominent Canadian names
in any company undertaking the work, we
left our address, with the understanding
that if occasion arose we were to hear.
Some weeks afterward Mr.. Smith of Chi
cago, my colleague, received a letter from
Sir Hugh Allan stating that Sir Francis
Hincks had requested him to communicate
with Us to effect union of interests in the
company that was about to be formed.
afterward found that Sir Francis Hincks
had visited New York early, and, at inter-
views with two prominent railway bankers,
had advised them TO cease negotiations
through MeSsrs. Smith and myself and open
them directly with Sir Hugh Allan. As
the gentlemen were both willing to change
existing arrangements, Sir Francis seems
to have given the address left with him 20
Sir Hugh Allan and his letter to US followed.
The result was an interview in Montreal,
at which preliminarIes were settled by
which Sir Hugh was to receive a large per-
sOnal interest in the stock and an amount
for distribution among persons whose acces-
sion would be desirable, and that the cash
installments should be advanced by Others
in interest. An interview was held by
myself with Sir John Mcdonald, the day
before we met Allan, at which he expressed
the approval of the government and re-
quested me to meet HIM at Ottawa. | ac-
cOrdingly went to Ottawa and explained
that Sir Hugh had entered into verbal ar
rantements. and that we had provided for
the accession of such Canadian gentlemen
a. would be of advantage. He seemed
pleased and promised to set an early day for
entering into preliminary arrangements
with the government for early presentation
to Parliament. Shortly afterward Sir Hugh
notified Mr.. Smith and myself to come, and
we three met the cabinet at Ottawa,
- - -
| features Of the scheme, there were present
Sir John Macdonald, Sir Francis IIincks,
Sir George Cartier, and Messrs Tilley, Tup-
per, Mitchell, Morris, Aikens and Chapais.
1t was at once apparent that they were not
| fully in accord among themselves in con-
sequence, as Sir +. Ilincks informed me, of
Grand Trunk jealousy. represented by Sir
| George Cartier The settlement of matters
had, therefore, to be postponed until the
return of Sir Hugh from England. the lst
| of December. Mr. Smith and proceeded
to New York. 1t was then that we learned
| of the visit of the finance minister, hereto
fore narrated After the return of Sir
/ Hugh. he telegraphed that the government
would be obliged to advertise for tenders,
| in order to avoid blame. 30 that an agree
ment would have 10 be postponed, but sug-
gesting that we have a meeting to execute
| the contract Mr.. Smith and myself ac-
cordingly left Chicago on December Is.
After closing all preliminaries with Allan
we went to New York, where the contract
was signed by all the parties. \ variety of
topics were discussed at interviews and by
/ corresponding during the winter. While
at first Sir Hugh had announced that no
money would be required, he soon pro-
/ fessed to discover that it would be necessary
| to provide some to aid in closing the ar
rangement.
He announced that the S. 500 of which
/ he speaks in one letter had been lent TO Sir
/ John Macdonald and Sir F. Hincks in sums
of $4,000 and S4, 500 respectively, with
/ good knowledge that it was not to he repaid.
/ lie also explained that the finance minister
was taking interest in the matter, and that
/ he had sounded him on his personal expec-
tations. He said Sir Francis had replied
| that at his time of life an absolute payment
would be preferable TO ultimate profits, and
| thought he should have $50, 200. and the
| position of secretary for his son at a salary
| Of - 600 Nv reply WIS that We would
| have to meet such demands; but that
| large amounts could not be disburs-
/ ed on uncertainties. As the session ap
| preached, however, Sir Hugh made appli-
| cation for money, and a supplementary con-
/ tract was entered into, by which the com
]
/ funds This contract also covered n change
| in terms to meet the views of government,
and empowered this committee to agree to
/ the acceptanceof of $50, 600, 600 and 5O.0OO,
900 acres of land, exactly the amount be
| told US they would recommend. A levy Of
/ $50 600 was made on the American parties,
/ April l, 1872. and the amount placed TO the
| credit of Sir Hugh lle drew $40 900.
| The only explanations he made OF the ex-
pendture were the payment of 81 900 to
La Minerve newspaper, and g 600 each to
three other French papers, whose names
cannot remember; $4,000 to Attorney
General Ouimet for aid at Ottawa, and an
indefinite loan of $4,000 to Sir +. Hincks.
attended during the session of lo72. AID
assisted in the passage of the Canada
Pacific Railroad charter, and at its close
paid the charges In addition to the pay
ments spoken of, Mr. Abbott was author
lied to promise Mr.. Langevin So, 900 to
| aid in the elections about Quebec, on con-
dition of his friendly assistance, and Mr..
| Abbott reported that he had done 50. Not
withstanding the repeated pledges received,
both Sir Hugh and myself had fears Of the
result in consequence of the position taken
bv Mr.. Mcpherson and his friends and the
animoSity of the Grand Trunk Railway. |
met Sir John Macdonald after the close of
the session, and he suggested that as Allan
had made so many enemies | should 90 to
Mr.. Mcpherson and try to bring about an
amalgamation, promising to write per-
sonal letter to Mr.. Mcpherson to aid in the
object. Sir Hugh and Mr. Abbott, how
ever. dissuaded me from doing so promised
to take the responsibility with Sir John Of
my failure to do as agreed. got a letter
from Allan which seemed quite discOurag-
ing. as he said Sir G.. +. Cartier told him
they never intended dealing with our COM
pany or Mr. Mcpherson, but would form a
new one under the control of the govern
ment. But Sir Hugh added tl.at the
elections were approaching, and his French
friends would make their power felt, and
Cartier must yield or stand a poor chance to
be elected. On August he wrote again,
stating that he had brought about what he
wished, as the government had been forced
to come to him, and he had secured an
agreement, but that he had to advance a
large amount of mOney-some 5000, 900
already and over 100000 more still to be
paid-and wanting to know what the New
York friends would do.
On the 10th of September he wrote stating
that he had learned of the absence OF several
of our friends from New York, and that
therefore a meeting could not be held until
November Is, which was very unsatisfac-
tory, as he was to have the contract signed
within ten days, and wanted to go to Eng
land to raise money. He stated his expendi-
ture to that date $3i3 900, gold, with Sl35,-
900 more to pay, and he urged speedy ar
rangements for refundlng this.
visited Montreal, shortly after, to ask
him for the guidance of our friends, who
were startled at the magnitude of the fig
ures, and who proposed to have some -ea-
soDable explanation of how the money had
been expended before they returned it. At
the interview which followed Sir Hugh re-
iterated the statement in his later letter.
He said Sir George had been 10th to realize
the fact he held the controlling French in
fuence, but that after while Sir George,
much against his will consented 10 Weld