The Portland daily press., 1893-09-25
lLLiN'S LOST MILLIONS
By the Failure Of the Manitoba 6
Northwestern Railway.
HOW A PRINCELY FORTUNE WAS
WRECKED.

English Holders of First Mortgage Bonds
Precipitated the Smash up--The Allans
Have Their Steamship Lines Remaining
How Sir Hugh Allan Made the Money
That His Son Lost.
By the failure of the Manitoba and
Northwestern railway, it is said here, the
bulk of the fortune left by the late Sir
Hugh Allan has been lost. The railroad,
which was pet scheme of Sir Hugh, is
in the hands of receivers, gand what can
be saved from the wreck, it is calculated,
will be very little.
The Allan family is known ON both
sides of the Atlantic by reason of its
connection with the Allan Steamship
company. Its members were regarded as
the wealthiest persons in Canada. The
blow, it is said, will affect many of their
rich friends
The crippled road is one of the most
important systems in the Northwest 1t
has never paid the Allans. H. Montague
Allan, the eldest son of Sir Hugh, recent
ly went to England to secure financial
assistance to save the property, but he
did not succeed. The English holders of
first mortgage bonds to the value of 540,-
900 pounds, which were defaulted on in
June last, caused receiver to be ap-
pointed for 160 miles of the road to which
the bonds apply.
When the financial difficulties of the
road first became apparent first mortgage
bonds were issued. Affairs were in such
a condition at one time that even the en-
loyes were not paid, and the road Mas
tied up until the receiver authorized the
payment of the men.
Allan Loss Four Millions.
According to the official list of share
100 by the failure of the road. The total
shares of the road amount to 11S, 468,
representing 1928, $50.
There is only So, ,100 600 to show for an
Indebtedness of $11, ZOO, ,0O0 OF course
the Allans lose the most of this enormous
sum, so that if some means are not found
of relieving them, practically all that
fortune will be the interest in the Allan
line of steamships
How He Made His Fortune.
Sir Hugh Allan made part of his for
tune in the Allan line, which he
founded, and which Isl said to be one of
the largest steamship companies in the
world The rest of his wealth was ac-
cumulated in the Hudson Bay Company
and in various railway speculations in
Canada.
When he died he left fortune various
ly estimated at from 5000, 900 to SO, OO0,-
600. The family mansion Ravenscraig,
was to be kept up for the family by the
terms of his will, but all the members
of the family have mansions of their
own. Their equipages were the most
stylish, their houses the most palatial in
Montreal, and when they entertained they
did it lavishly.
The recent death of Arthur Allan, Sir
Hugh's youngest son, caused $4,000, 600
more to be divided among the remainder
of the family, but has kept them in re-
tirement. Arthur Allan left the St.
James Club one Sunday night and went
to his rooms, several doors away. A
few minutes afterwards flames were seen
in his room, and he was carried out dead.
He was found in a chair with an electric
wire colled around his arm The inquest
never satisfactorily explained the cause
of his death.
Sir Hugh's ill-fated road runs from
Portage la Prairie, in the Province OF
Manitoba, in northwestern direction to
Yorkton, through the northern portion OF
Manitoba, which is said to be the most
fertile province of Canada. The road has
no competitors. Sir Hugh was always
believer in the western portion of Can
ada, and in fact was one of the first pro-
moters of the Canadian Pacific railway.
Bought Up the Road.
When, therefore, in 1884 the Manitoba
road was offered for sale Sir Hugh Allan,
who when he wanted anything wanted
all of it, snapped up the road, afterward
letting some associates in with him on
small scale. He had influence with
the Dominion government and secured
land grant of 6, 400 acres for every mile of
railway at the nominal charge of ten
cents per acre. The road when Sir Hugh
took it had only thirty-fve miles con-
structed. 1t has now 232 miles in work
ing order.
@Jackn Allan, one of the members of
the family, deserted his wife and chill
dreu some time ago and eloped with Mrs.
W. v. Hebden, wife Of the New York
manager of the Bank of Montreal.