The New York herald., 1873-09-16
IE GOVERNMENT SUSTAINED so FAR
Testimony Of Hon. w. Campbell,
Ex-Postmaster General.
THE KANUCKy DREAD OF AMERICANS.
No Possible Way for "the Yankees" to Share
in the Profits of the Canadian Pacific
Railroad Charter Per-
feet Instrument.

OTTAWA, Canada, Sept Is, 1873.
The Commission met at noon, Sir John Nc
Donald, the Hon. Messrs. Langevin, Campbell,
Tupper, Mitchell and Aikens present.
Mr.. Il. r Burhee, OF st. John, was the first wit
ness called. He deposed tnat he knew Sir Hugh
Allen and q. w. McMullen; became acquainted
with McMullen IN 1872; was appointed director OF
the chartered Pacific Company in 1872;
was told by McMullen that all agreement
existed between the Americans and Sir
Hugh Allen to build the Pacific Railroad;
the Americans were TO furnish the capital TO build
the road 1t is understood that McMullen repre-
sented large number Of American capitalists;
did not know the government favored these nego-
tiations with the Americans; believed they rather
opposed it.; was nominated director by members
OF the government from New Brunswick; was
asked to become director in the Inter Oceanic
Company; understood from Hon. Mitchell Tlley
and other members OF the government that the
railway would be built with British and Canadian
capital also understood the lnter-Oceanic and
Canada Pacific Company would be amagamated
as stated by The government, consequently did not
think 1t OF much consequence which company he
joined; was quite convinced the government were
opposed to the introduction OF the American ele-
ment; before becoming director had talked
over the terms OF the charter with
different persons; the company was to be entirely
Canadian; the stock was distributed with that
object; in that view 1t was given to thirteen di-
rectors, to be divided among the different Pro-
vinces; New Brunswick to have one-thir-
teenth;
AMERICANS WERE PROHIBITED;
no premium was allowed to be put on the stock;
the thirteen directors stood upon equal
footing; did not think . the terms given
by the government were very liberal;
in2the' former company thought there. was
some money to be made out OF this railway; in the
chartered company did not see much TO be made;
knew nothing or the alleged understanding be-
spent In New Brunswick furnished by the
ddates or their friends did not believe the money
came from the Upper Provinces; had seen some OF
the letters alleged by McMullen to have been writ
ten by Sir Hugh McMullen; told him he had ad-
vanced money to SIT Hugh to meet the expenses
o organizing the company In reply to Sir John
the witness said ne had been engaged in railway
enterprises fifteen years; Was interested in the
asked by sir,Hugh to become a director; believed
| Sir Hugh was opposed to mis- appointment; he
| one teenth and paid one-tenth; all the sub
scribers were Canadians; there was no transfer OF
stock without the consent OF the government;
THE FIRST STEP IN RAILWAY ENTERPRISES
was TO raise money for organ zaton and other ex-
II was Impossible lor Americans to set IN witness
gave list OF the names OF the subscribers for stock
IN New Brunswick.
testified that he had been member OF the
and Americans; not personally aware
that negotiations were going on between
| Sir Hugh and Americans; the government never
| encouraged such negotiations, but were entirely
I opposed to such q scheme, and decided the abso-
lutte exclusion Of American capitalists; after the
session OF 1872 it was the pronounced policy of
the government to build the road entirely
with British British. and Canadian capital, and to
| Canadian companies; read McMullens letter in
the Montreal Herald; Sir Hugh never received en-
m frntT fhn in hi An.o
| can negotiations; witness went to Toronto in Oc-
tober 1872 on behalf OF the government to try and
! panles; his attemps Jailed; some time aIterward
| Sir John went to Toronto to make
or lines Of railway might fall into Ameri,
| can hands; he (CampbelD showed McPncrson
that the government would SO guard the charter
| and give such guarantees that u would be impOs-
| sibe for Americans to secure any control OF the
| lands or railway; several OF the interoceanic di-
rectors were quite satisfied with their guarantees;
| MCPHERSON wanted 1t stipulated that Sir Hugh
should be absolutely excluded from the Presidency
held control over the company at every step OF
their proceedings;
| THE GUARANTEES WE'RE PERFECT
F., did not know whether Sir Hugh knew of these
efforts to amalgamate at that time; thought that,
during the session OF 1872, Sir Hugh was informed
that Americans must be excluded; after the failure
| OF the attempts at amalgamation the government
| decided to have \ new company formed under the
| in the Dominion and give each Province proper
| tlOuate influence IN the company; the desire
|
and railway experience; much time was given TO
the formation OF the charter; believed It's povis-
ions were as perfect as could be framed, having in
| view the interests OF the whole country the opin-
| ion OF railway men was that the charter was too
stringent and too harsh on the company; knew
been furnished by Sir Hugh to members
OF the government. Judge Day here read
his letter; knew nothing about 1t; was told by Sir
John In Kingston after his election that SIR Hugh
had had subscribed to the eections;, did not KNOW
| OiV va
Hugh; he lwitness) was IN a position TO know all
about the charters there never was an agreement
else by which the charter was to be given Tor any
consideration; cons the government never at any
such thing had never occurred; 1t was absolutely
In reply to Sir John Campbell, witness said no
| matter wnat company might be formed,
| THE TERMS II THE PRESENT CHARTER
would be insisted upon; an agreement mace De.
tween any individual member Of the government
and others would have been perfectly futile; Sir
George Cartier was always opposed to American
control; had Sir George Cartier made an agreement
| between the government and Sir Hugh or any one
else, by which the charter was to be
en 40 .or mue an %ase
must be submitted to the whole Cabinet; the
OBJECT Of the government wa was 10 ayoid the me, crea
| way, and to have company which would induce
the support OF the people In every section OF the
\ Dominion; Sir Hugh Allen was the acknowledged
representative OF quebec railway enterprises, and
| could not be excluded without his consent; be-
| SIR HUGH's INCOME WAS SIX HUNDRED THOUSAND
DOLLARS
| per year; he had taken interest in the Pacific
| Railway enterprise long before Mcpherson dld
| having desired to embark his wealth in t. his
| views were entitled to some consideration; Sir
Hugh was aware OF the governments intention
TO exclude Americans and agreed with their deci-
sion before going into consideration OF the de-
tails OF the charter; he (Sr Hugh tried modify
many features In the charter, but never once OBJ
| jected to the provision excluding Americans.
Before concluding bis evidence, Mr.. Campbell
wished to refer to q statement OF McMullen's,
referring to the renewal OF O certain note or bill,
| renewed in the Merchants Bank, made by Hillyard
| and Cameron, and that the renewal of the note
| was made at the instance OF the government after
| the Postmaster Generals visit to Montreal; he
| fCampbell was Postmaster General at the time
| the insinuaton IN McMulen's letter was false; he
| (Campbe!D never knew any thing about the note
| or Its renewal.
Hon r. Mitchell next deposed knew nothing
| OF Sir Hugh Aan's alleged agreement with Ameri
cans heard rumOrs such NEGOTIATIONS taking