New-York tribune., 1873-07-23
THE CANADIAN SCANDAL.
NEW DEVELOPMENTS RESPECTING THE
PACIFIC RAILWAY CHARTER.

SRNMENT INPlICATED-CoRRUPT USE OF MONEY
POSITION OF AMERICAN CAPITALISTS START
LING ExPosUREs.
lFRoM AN OCCASIONAL CORRESPONDENT OF TIE TRIBUNE.
TORONTO, July 10. - This Dominion has
achieved political scandal Of pretensions and
Ministers OF the Crown, members Of Parliament, baron
cts Knights and other representative all being In
voyed 1t naturally excites the lveest interest Yes
tsrday and to-day light has been thrown upon the
matter and popular feeling on the subject has reached
fever heat II is outcome Of the Canada Pacific Ra
road scheme and 1t would that all Pacific Rail-
reads are fated TO have scandal attached to them
During the last session of the Dominion Parliament
grave charges were preferred against the Government
which were to have been investigated by Parliament
AIRY Committee which has adjourned without doing any
thing This has aggravated the Opposition into publish
ing certain correspondence which the OF all the
excitement. But this is only the beginning OF the
end Of long story had better give you brief recap
ulation Of the whole affair
In 1871 British Columbia became a member OF the
Canadian Confederation and of the main eonduohs
upon which IL entered that confederation was that
railroad should be built within ten years whlch "ouu
bring the existing railroad system Of Canada into con
nectOn with the Pacific coast II is not my business at
present to speak OF the wisdom folly Of that project
but in 1872 the Dominion Parliament passed an ACT
which provided that the construction aud working OF
the road 10 be put into the hands OF an app oVeu
company, possessing subscribed capital OF Soo'VV'
representing ltu per Ctul VI lhO NAV'N 0'NN'N'
n company was TO be given 100000 acres o'
land along the route, well as subsidy OF SSocoOVo
peculiar feature OF this act and one when naturay
caused a great deal Of dissatisfaction In the country
that If the Government were not satisfied Win lne
ability OF any Company Incorporated IN the usua way
by Paramen carry out the scheme, It could grant
charter without any further sanction from Parliament
70 any set OF capitalists It might select This peculiar
feature the act II which opened the door ior all
the subsequent inrigues. Two companies were ncorpo
rated during the session OF 1872 for the purpose OF buu
ing the road namely, the Interoceanic Railway Com
pany at the head of which was Senator Macpherson
and the Canada Pacific Railway Company, presided
over by Sir Hugh Allan, of the Allan Line OF ocean
steamers. These companies failed TO satisfy the Gov
ernmen as individual companies, or TO amagamate as
they might have done but for existing 1ealouses Dut
question II IL were ever intended that the power OF the
Government to grant independent charter should be
kept in abeyance. In report Of committee OF the
Prvy Council dated Jan Is7s there is the following;
The Committee OF the Privy Council have had under
consideration The CORE pondenee ana reports ot 0o %
oceanic Railway Company ana OF the Cana1a a. fSSe 6
companies have not been willing to unite ana form one
company for the purpose OF constructing the racine
able To advise yOur EXcelency TO with either OF
the said companies separately for the construction ana
working Of the whole line Of railway described IN the
cap. II and they OF opinion, and submit 1t to your
Dominion aud will better insure the attainment Of the
purposes referred 70 that company
should be incorporated under powers conferred 10y
the fifteenth section Of the SAID act by charter lor that
purpose.
In the same report it was recommended that necO
atons be entered into for the purpose Of settling the
terms OF an agreement under the act with certain cap
italists OF whom Sir Hugh Allan was the leading spirit
This was followed early in March, by the pronunciation
of the charter, which was granted to Sir Hugh Auah
and his associates Mortal oense thereby given to
other of capitalists, who also were Dddng Tor the
eharer and they, making common cause with the Par
hamentary opposition brought on what are known
here as the Huntington Charges. This outline OF deVe
opens in connection with the scheme Is as IL appeared
70 the outside public but other and more remarkable
developments were all this while gong On behind
the scene, and these latter formed the ground
work Of the Huntington charges. To under
stand the nature OF these charges. 1t will be
necessary briefly describe the political situation 10
Is7273 In the early Summer OF 1872 the First F"fa
ment OF the Dominion Of Canada dissolved, and III
the Fall OF year the general elections fof the
House Of Commons took place. The Macdonald Ministry
was known to be in critical position, and 1t was ex-
trernely probematic If 1t would be sustained by the
following Parliament. The Ministerial party made
superuman exertions carry the elections, and money
was scattered among the constituencies to an unpre
cedented extent. Where the money came from no one
could tell, and Ministers were charged by their
opponents with using the public funds, the Secret
Service money and / know not what all 1t was
about this time that a whisper went abroad that
the Pacific Railroad charter had been soid for
money eaough TO enable Government to carry
the elections in their favor Sir John Macdonald the
Prime Minister was reelected for Kingston after very
close contest but his two aDest colleagues the late sn
George t. Cartier and Sir Francis Hncks were defeated
AT the polls the former IN the city OF Montreal and the
latter in an Ontario constituency Both were, however,
subsequently returned 10 Parliament, the one Tor
ManitOban and the other for British Columbian con-
sttueucy This serves 10 show the touchandgo nature
OF the late general elections. They resulted in small
working majority for the Government but Ontario, the
leading province, returned adverse majority. You
are 10 understand that the straits TO which the Govern
nent was reduced supposed 20 supply the motive for
the derectOns charged against IL. In April last, MI
Huntington member Of the House OF Commons moved
Tor a committee Of inquiry the ground that he had
been crediby Informed and believed he could establish
by satisfactory evidence
That in anticipation Of legislation OF last session
Hs 10 the Pacific Railway, agreement was made be-
Sir Hugh Allan, acting tor hmseH ana Certain @
other Canadian promoters, and G W. Mcmuien' AetHs
for certain United States capitalists, whO D the latter
agreed furnish all the funds necessary ior ne CON
etructiOn or the contemplated IllWhy anu 70 ,
former certain percentage Of interest in consideration
Of their influence and posiuon-the scheme aRfeC1 On
being OstensDly that OF Sahadlah OVnpeny @ nI.h
Sir Hugh Allan at it's head that the Coy
ernmout was aware that negotiations were pend pend
ing between these parties; that suDbequonuy
an understanding Vas % gone .r Mr. 4Ssot tSaf
br HuRh Allan ana his Hebds snOui1 autabov u
large sum OF money for the purpose OF aldng lne eC
TONS OF Ministers and their supporters at the next gen
eTal election, aud that he and his friends sh0uu receive
the for the construction Of the railway that
accordingly Sir Hugh Allan did advance large sum OF
for the purpose mentioned, and at the solicitation
and al the pressing instances OF Minister'S tbat part OF
with the obtaining the act OF Incorporation and Charter
was PAID to him by the said United States capitalists
under their agreement with him.
The Government treated this motion OF Mr. Hunting
Ton a Of want Of confidence, and by that means
succeeded In having it voted down But the scandal
occasiOned by IL great that subsequently Sir