The Portland daily press., 1873-10-03
The Canadian Scandal.

British Columbia was induced to join the
Dominion ConEederacy upon an express prom
ise of railroad fom Canada to the Pacific
within ten years. The measure was de-
nounced by the Opposition party in Canada
with unmeasurcd bitterness. The road, they
said, would well nigh bankrupt the country,
would pass for long distance nor,h of Lake
Superior, and through barren, God-iorsaken
region its traffic would never pay running
expenses. But the government had by COM
pact bound the country to its construction;
and the Dominion Legislature in connection
with the English government, afterwards
made provision therefor, promising to the
party that sh juld execute the work, $780,
100000 in gold, and 100000 acres
of land. The question then presented was,
What parties or company shall build the road
on these terms? There were naturally, and
geographically, two interests-the one of the
Province of Ontario, The other of the Prov
ince OF Quebec. Of the former, Toronto
would be the headquarters and base; of the
latter, Montreal. The interest of Ontario
aud Toronto was led by Senator Mcpherson
of Toronto, while that OF Quebec and Mon
treal found leader in Sir Hugh Allan.
McPhersons scheme would turn the volume
of traffic towards Toronto and New York,
while Sir Hugh's would attract it to Mon
treal. Here was an irrepressible conflict.
Both parties were anxious for, and determin-
ed to obtain, the contract, and both. procured
acts of incorporation under which they could
execute it. Senator McPherson's Company
was entitled the Inter Oceanic;' Sir Hugh
Allan's was called the Canada Pacific"
The struggle was earnest, not to say bit
ter; but the government labored dill
gently to bring the two interests together,
and effect an amalgamation Of the compa-
mes. Its Efforts, persistent aud conspicuously
sincere, were unavailng Sir Hugh and his
party expressed willingness to unite and
work with the Ontario interest," but Senator
Mcpherson would not listen to any terms of
union which would not exclude Sir Hugh
from the Presidency of the new company.
He felred, he said, American capital and in
huence, if Sir Hugh @as in the ascendant;
but it is apparent that his real fear was that
Montreal rather than Toronto. would re-
c"ive the larger benefit from the road.
M ,antime Jealousy of American connection
with the enterprise was promoted by McPhef-
son and his friends, and che popular feeling
was so strongly aroused on the subject that it
became necessary to provide by the strongest
precautions against it. Finding it impracti-
cable to effect an inauguration of the rival
companies, the Ministry took advantage of an
aact of Parliament passed in contemplation O
che possible contingency, add created new
company by royal charter, naming therein
ahirteen p directors of which number were
Sir Hugh Allan and four Others from the
Province OF Quebec. five gentlemen from On
= ario, two or three of whom were directors
vim the Mcpherson Company and others from
1.-THE lower Provinces, and gave them the con-
etract. 1t is scarcely apparent to an outsider
how the government of Sir John Mcdonald
could have done differently. Montreal was
9the chief commercial city Of the Dominion /;
lit was the rort of arrival and departure OF
her ocean-going ships; it was nearer the bust
ness and political centres of the Dominion
than Toronto; Sir Hugh Allan was the rich
& est man in Canada, (having. as was said in
the testimony before the Commission, an in
come Of 100000 a yea J and by his wealth
land connections in England and Scotland
9could influence more capital abroad than any
Other man in Canada 1t was clearly impos-
-,sible to throw him overheard and leave Mon
-itreal out in the cold. 1t was not necessary
for Sir Hugh to pay money to obtain the po-
,tSsition he did in the company. No administra-
-otion would for could have deprived him of it
This was reasonably certain from the begin
ming. He knew it and everybody knew it.
{, The new company was organized, Sir Hugh
nwas elected Pre- sident, and the contract with
lit was made. There was no question about the
price to be paid, for that was all settled by
- Parliament, and it was what would have been
epaid to the amalgamated company, if Mr.
:. Mcpherson had been willing to come into it.
but before this time the Opposition had
changed ground and become railroad men,
81 and seeing an opportunity as they thought
n'to make capital against the government
by denouncing its action in reference to the
charter and contract, took sides with
Mcpherson. and his party. Before the final
action of the Government excluding Amer
lean capital Sir Hugh had entered into
preliminary arrangements with certain
Americans which he was compelled at last to
-ngive up. One of these men, who seems 10
have been scoundrel of fabulous proportions,
having obtained dnring his relations with
9TAlan possession OF certain papers, letters.
- kilograms &C., sold them to the leaders of the
opposition. These ,cuments proved very
clearly that large sums of money had been
contributed by Allan Tor use OF the ministerial
candidates TO the Dominion Parliament in
the general election Of 1872.
Upon the meeting of the Parliament, Mr.
Huntington, prominent member of the op
II position, made specific charges against the
: Government, and named the witnesses by
" whom they would be sustained, and asked fol
committee of investigation. The Govern
. ment party not being quite disposed to place
the inquiry in the hands Of its enemies,
voted down Mr.. Huntington's motion, but
Immediately introduced a resolution which
was passed calling for an investigation to be
made by committee Of five members two
OF whom were amorg the ablest of the oppo-
timony of witnesses before this commission
should be taken undel oath. Thereupon,
Lord Dnferin, the Governor General, upon
his own motion as he stated in his explana,
ton, transmitted the resolution to the Home
Government by which the provision for TAX
ing te tmony under cath was disallowed as
unconst utional. Determined that the evil
dence in the case should be under oath, the
Government constituted Royal Commission
consisting OF three judges who should take
the testimony of witnesses and report it, with
such observations as they should see fit to
make, to the Parliament, for its information
anu consideration, and which with such
DINER facts as might be supplemented would
form basis for its action. This proceeding
was furiously denounced by the opposition
MI. Huntington refused to appear before
the commission, and McMullen his chief
witness kept himself oat of the reach
Of subpoena. The commission COM