Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1873-09-06
Proceedings Of the Royal Commission 20
Examine Into the Pacific Rail-
way Bribery and Corr
rBPtiOn Case.
A Sc lad OF KhOW-EOthing Witnesses
The Government Party Making
a StrOng Case.
HOu Election Pands We're Raised-The
Government and the Efforts st
AmalgamatiOn Of two
Roads.

Stearns was called and sworn. He said
be was prepared TO produce documents
pissed IN his hands by Sirs
Hugh Allan shd MsMillsni. they
were in the same G5aditi51i as
when given him. He objected
I to their being opened before Sir Hugh
Allan's consent was obtained. ABBOTT
here rose and read a letter from Sir
High Allsn soHssntius TO the packages
Being oiieHed, on condition That the let
ters should not be published unless they
contained evidence which could be le-
Salls Used in the ease
In reply to Judge Day, Stearns said
there was an eleeCiOn-fund. With refer
enee TO Cartier's election, Stearns said
that Cartier refused to use any railroad
nroiect SO further his election. The funds
were raised bt Subscription; Sir Hugh
being Of large means, subscribed lber-
ally. The witness had no knowledge of
money coming from other sources. He
heard no mention OF poker In connection
with the election fund. He received, as
treasurer Of the election committee,
about seven thousand dollars in sub
scriptions. The impOunder's letters
were opened. No. 3 was directed to
| Stearns.
Sir F. Hincks was next called, and
being sworn gave detailed statement
Of what he knew about the Pacific rail-
road negotiations prior to the legislation
upon the subject. The first conversation
be had with CyriIle Graham in 1871,
Graham said Ames would gives up the
western end Of the Union, Pacific, pro-
vided the Canadians would give up the
eastern end, allowing it TO be built
through American territory. From
other conversations, there was arrange
ments which might be made with the
American capitalists. He referred to
the visits of Mcmillan and others to
Ottowa, where they produced the names
Of American capitalists on every inter-
view. They were informed that
the government could not make
arrangements, but were willing to hear
all they mad to say on the subject. Sir
John said the government would listen
TO any proposition from Sir Hugh, but
was not prepared to accept any. Their
government finally decided on a scheme
which was submitted to parliament
without consultation with outside par
ties, because of the unanimous decision
of the government that Americans must
be excluded from any part in the con-
struction of the Pacific road. In reply
to the judge, Sir Francis stated that no
understanding, directly or indirectly,
was come to between the govern
ment and Sir Hugh and any of his
friends whereby the latter were to re-
ceive q charter on condition of arraDg-
ing large sums of money to aid in the
Dominion elections; he knew of no ar
rangements between any MEM
bers of the government and Sir
Hugh to that effect; knew
Sir Hugh had contributed to the election
funds; didn't know it till long after the
election was over, and didn't know
how much he subscribed; did not be-
lieve money was offered any member
of the government in connection with
the Pacific railroad, and never received
any money or promises Of any kind
from Allan or any one else in cOnnec-
ton with the Pacific railroad; what Nc
MILAN stated respecting such loans were
pure fsbrications, started to close the elee-
ton; the only policy the government had
Was two Canadian companies; was not
the intention Of the government to issue
any charter until all attempts at such
would be brought about.
DeFalsille, secretary of the Northern
railroad, testified that he
had no knowledge of any negotiations
between Allan and the Americans
furnishing money. This
the proceedings for to-day.
SECOND DAY.
TORONTO, September 5.-In the sec
ond days proceedings of the royal COM
the first witness called was
Victor Hudson. He knew nothing of
between Sir Hugh Allan
and the Americans. Was 8 member Of
Cartier's election committee, and knew
that large sums of money were sub
scribed By friends toward elections. Had
heard Sir Hugh Allan was a subscriber,
but did not know to what amount.
The court adjourned for an hour, TO
allow Beatty's letters, which were
produced yesterday by Sir Fracis
Hincks, TO be taken down, and
appended to his evidence. The first
letter points out TO Sir Francis the
of constructing Pacific rail-
road mainly by the instrumentality Of
American capitalists, and such Canadi-
an influence and capital as could be sub
sidized. Sir Francis, in his reply, shows
that Beatty and the American COM
pany which be represented were under
a misapprehension respecting the rail-
road and the policy Of the Canadian
government. If American capital
ists entered the company an
equal number of Canadian capitalists
must also be interested. 1t was neither
the intention or place Of the Canadian
government to name any parties in con-
nection with the proposed work. The
first thing for the government to con-
slider was, the amount of money and
land grants they would give TO aid the
road. Before policy was decided upon,
DO proposition could be entertained.
Beatty's second letter is similar to the
first, only that he annouRces himself as
the representative of American gentle
men desirous of engaging in the enter
prise, and urging upon Sir Francis the
necessity Of improving the time. Sir
Francis replied in a letter, intimating
that Beatty did not know what
he was talking about, and that he
fKerstman) and Others had, by iDjadi-
cious proceedings, injured great under
taking.
Nothing of importance was done
at the evening session. There are
no more witnesses on hand, but some are
expected tomorrow Sir Francis Hincks
slightly amended one of his answers, in
this manner: at was never proposed by
any one 10 give the charter, and the
government never contemplated giving
ii to any one until the failure of the
efforts to annalgamate the two Canadian
cOnlDauies y