The Emmett index. [volume] (Emmett, Idaho) 1893-1925, 1901-03-22
WHAT A FALL WAS THERE.
Industrial Maanate of Newfoundland
Has Been Repudiated.

mas 6eeu acquainted.
The Car Of Newfoundland has been
deposed. After an uninterrupted and
almost despotic sway in business af-
fairs lasting fer many years, Robert
Gillespie Reid, Industrial magnate Of
the province, failed to receive an in
dorsement at the recent election, and .
now finds himself in a novel position.
Reds life has been a romance with 4
few parallels He was born poor boy +
in Coupar-Augus, Scotland, and by his (
own efforts and foresight has acquired
wealth that makes him probably the
richest man In the world to-day. It was
through no ordinary course Of building
up business that his vast riches were
amassed. He practically bought the
islands Of Newfoundland on risky spec
ulatiOns; he risked time after time
when there seemed no hope of gain, but
he always came out with another small
fortune to put in his pocket. Reid went
to Australia In 1865. Very little is
known of his life there, but when he
came to America in 1871 and settled in
Newfoundland he soon became promi-
nent in the affairs of the colony. Five
or six years ago he was given a con-
tract for the construction Of railroad
across the island. The ministry be-
came financially embarrassed, and by
shrewd deal Reid persuaded them
that they could only lose money by
operating the road, so it was turned
over to him. This deal netted him a
grant of 5000 acres for each mile Of
the 63O-mile road. Afterward he Sc
cured another $500 acres Of land for
each mile of track and the right to oper-
ate the road for fifty years.
This was all done at a cost Of $1,000,
600 to Mr.. Reid. The road is now said
to be worth S10,OO0,0OO. In much the
same way he acquired the Government
drydock at st. Johns for S325.O and
the telegraph lines around the coast for
S125,OOO. The dock was being operated
by the Government at an annual loss
Of 12,4OO The telegraph line cost
them a loss of $4,000 yearly.
Mr. Reid then agreed to build at a
cost Of $1.OOO,0OO eight steamers of the
latest pattern. For that he received
mail subsidies by steamers and trains
of S177,OOO. He undertook to build at
his own cost great hotels in st. Johns
AID other terminal points and at what
ever points would attract tourists to
the interior. He has also acquired the
electric street railways in st. Johns.
the charter of which gives him the use
of extensive water works in the sub
urbs and the right to generate electricity
for lighting and mechanical purposes.
: This contract is worth cool $1,O0O,OOO.
This immense property Mr.. Reid
. wished to capitalize as a limited liabil-
ity company at $25,OOO,OOO. The recent
election, however, puts his political
enemies into power, and they are de
cidedly opposed to his schemes. So far
as the capital is concerned, the com
pany could undoubtedly have been
, started with no difficulty. Premier
Bond, however, has now announced
the terms on which the new Govern
> ment will allow Mr.. Reid to convert his
, private holdings into company.
Mr.. Reid must give the telegraph
lines back to the colony; he mus
! amend his land grants so that NJ
: settlers are dispossessed of home
steads, and he must give guarantees as
. to the amount Of mortgage money h'
win spend in labor and the develop
ment of the colony.
Mr.. Bond is not so definite in his
: plans as to the railway. He hopes
however, TO come to a satisfactor,
!, ownership of the lines, Mr. Reid con
4 tinuing his right to operate them 70
:, fifty years. The Premier is not slow t.
hint at legislative action should Mr.
Reid prove obstreperous. But in spit
OF this reverse. Mr.. Reds fortune mus
continue to increase. His lands ar
full of valuable mineral deposits, an,
are we'll covered with lumber areas.