RECENT YEARS

“What, then, have you, who call yourselves practical men, and despise the dreamers of dreams—what have you to suggest? Do you really believe that things can always go on as they are going now? . . . Say whether you think it possible that great colonies like those of British North Ainerica and those of Australasia are likely to remain always content with their present anomalous condition? . , . What, then, do you expect ? Annexation to America in the one case; independence in the other; or perhaps independence in both, and in all? To that result, if it must come to that, the mind of England would have to reconcile itself, She has no imperial privilege to interfere with the destinies of the world.” —MoCaRrTHY's History of Our Own Times, Chapter LV,

Mr. Cockburn was without opposition reëlected Speaker of the House of Commons. Mr. Chauveau had a few days before resigned his place in the Quebec Cabinet, as well as his seat in the House of Commons, and had been appointed to the Speakership of the Senate—a position which had become vacant in consequence of Mr. Cauchon’s resignation some months before, as mentioned in the last chapter. The Address in Reply to the Speech from the Throne was adopted in both Houses without division, though the weakness of the Government in the Commons was demonstrated by certain preliminary divisions respecting disputed elections.

Much important business was transacted during the session, Prince Edward Island having signified a wish to enter the Union, and the terms of admission having been satisfactorily arranged, the necessary legislative action was now taken by the Dominion Parliament, An Address to Her Majesty was adopted, and a Bill passed providing for the admission of the Island as a Province of

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Recent Years. 52;

the Confederation. The Provincial debt was placed at $4,701,050, being $50 per head of the population (94,021), as shown by the census returns of 1871. Interest at five per cent. perarnum was to be from time to time allowed on the difference between that sum and the actual amount of the Provincial debt. An annual sum was also allowed by the Dominion for the extinction of the claims of the great landed proprietors of the colony under old grants. The annual subsidy was placed at $30,000, eighty cents being likewise allowed for each inhabitant.

In addition to numerous other matters of national importance, the financial relations between the Dominion and the Provinces formed the subject of careful deliberation during the session. The results were apparent in an Act passed under the auspices of Mr. Tilley, whereby a readjustment of the debt of the Dominion was effected, and whereby the subsidies granted to some of the Provinces were increased, But that which renders the first session of 1873 especially memorable in our annals is the fact that it gave birth to the Pacific Railway Scandal. The circumstances out of which this huge esclandre developed itself are by no means pleasant to dwell upon. It may be said indeed that the episode, take it for all in all, is the most deplorable that comes within the purview of the present narrative; and it shall be told with as much brevity as is consistent with a clear apprehension of the facts involved in it.

Two very wealthy companies had applied for and obtained charters of incorporation, and had both made strenuous exertions to obtain the contract for building the line of railway which was to give us direct communication from the Atlantic to the Pacific. At the head of one of these companies was Sir Hugh Allan, of Montreal. At the head of the other was the Hon. David Lewis Macpherson, of Toronto. There had been attempts at amalgamation, but the opposing interests could not be reconciled, and, the negotiations to that end having proved ineffectual, the Government had abstained

526 The Last Forty Years.

from giving the contract to either of the companies. A new company had accordingly been formed under the Presidency of Sir Hugh Allan. It had obtained a charter on the 5th of February, 1873—a month before the opening of the session. During the next few weeks vague whispers had got abroad that all was not as it should be with respect to the granting of this charter, but nothing was definitely known about the matter, and no suspicion was commonly entertained of anything worse than irregularity. The public mind, however, was soon to undergo a rude awakening. Mr. Huntington, member for Shefford, had become possessed of information convincing him that gross iniquity had been practised, and on the 2nd of April he rose in his place in the House of Commons and gave utterance to his convictions. He announced, in effect, that he believed he could prove to the satisfaction of a committee that there had been a corrupt sale of the charter by the Government to Sir Hugh Allan and his friends. The facts which he professed to be able to “establish by satisfactory evidence ” were indicated in a resolution then and there moved by him, and were as follows: “That in anticipation of the legislation of last session, as to the Pacific Railway, an agreement was made between Sir Hugh Allan, acting for hinself and certain other Canadian promoters, and G. W. MeMullen, acting for certain United States capitalists, whereby the latter agreed to furnish all the funds necessary for the construction of the contemplated railway, and to give the former à certain percentage of interest in consideration of their interest and position; the scheme agreed upon being ostensibly that of à Canadian company with Sir Hugh Allan at its head: That the Government were aware that negotiations were pending between these parties: That subsequently an understanding was come to between the Government and Sir Hugh Allan and Mr. Abbott, M P., that Sir Hugh and his friends should advance a large sum of money for the purpose of aiding the elections of Ministers and their supporters at

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Recent Years. 527

the ensuing general election, and that he and his friends should receive the contract for the construction of the railway: That accordingly Sir Hugh Allan did advance a large sum of money for the purpose mentioned, and at the solicitation, and under the pressing instance of Ministers That part of the moneys expended by Sir Hugh Allan in connection with the obtaining of the Act of Incorporation and charter were paid to him by the said United States capitalists under the agreement with him.” The resolution asked for the appointment of a Committee of Inquiry.

For a moment the House was literally stricken dumb by astonishment. The charges were of so monstrous a character that honourable members might well be excused if they declined to take them into serious consideration. But as soon as the first shock of surprise had subsided a division was called for, and the motion, which was treated as one of want of confidence in the Government, was rejected by a vote of 107 to 76.

A few hours more, and the country at large partook of the astonishment which the motion had produced in the House, The most contrary opinions were expressed as to the truth of the charges. By Ministerialists generally they were utterly discredited, and there were not a few supporters of the Opposition who refused to give credence to them. It was not surprising that this should be s0, for the offences charged were such as almost to carry with them their own refutation. But Sir John Macdonald well knew that this state of things could not last. The Opposition press came out with most imperative demands for investigation. Public opinion would not long be satisfied with reticence on his part. He had maintained silence in the House while the charges had been read, and his doing so had seemed quite consistent with the conduct of a high-minded man who disdained to defend himself against outrageous calumny. But he well knew that he was not strong enough to maintain such a stand in the face of an outspoken press

528 The Last Forty Years.

which would keep alive the flame of public excitement, and which could only be put to silence in one way. He made the best of the situation, and when the House met on the 3rd he gave notice that on the next Government day—which would be Tuesday, the 8th— he would himself move for the appointment of a committee. The motion was duly made on the specified date. A committee was accordingly appointed, consisting of three Ministerialists and two members of the Opposition ;* but if had no power to take evidence on oatñ, and the proceedings were delayed until a Bill conferring such power could be passed through Parliament. A Bill was passed without opposition, and assented to by the Governor-General on the 3rd of May; but as grave doubts were expressed as to its legality a certified copy was forwarded to England for approval. Meanwhile, as it was the law of the land, there was nothing to prevent the committee from acting upon it, and proceeding with the inquiry ; but the Premier made an appeal for further delay on the ground that Sir George Cartier, Sir Hugh Allan and Mr. Abbott, all of whom, as it was & ‘ed, were material witnesses, were absent in England. The Opposition members disapproved of the proposed delay, but were overborne by the Ministerialists. Mr. Huntington himself strenuously urged that the committee should proceed. He pointed out that his charges had been known to Sir George, Si Hugh and Mr. Abbott for a full month, and that those gentlemen had had ample time to return to Canada if so disposed, He charged the Premier with a manifest desire to delav and baffle the inquiry. Sir John replied that he was on the contrary anxious to promote it, but that as the Government was practically on its trial, it was only fair that the inquiry should not be prejudiced by undue haste in the absence of material witnesses. The result of the disvussion was that the ministerial majority

* The Ministerialiats were the Hon, J, G. Blanchet, the Hon. James Macdonald, of Pictou, and the Hon, John Hillyari Cameron, The Opposition members were the Hon. Edward Blake and the Hon. A. A. Dorion,

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Recent Years. 529

triumphed, and that the committee ädjourned to meet at Montreal on the 2nd of July. On the 23rd of May Parliament itself ad- Journed to the 13th of August, when it was to assemble for the purpose of receiving the committee’s report, but not, as was commonly understood, for the ordinary purposes of legislation.

On the 14th of June two additions were made to the Ministry, Thomas Nicholson Gibbs, member for South Ontario, becoming Secretary of State for the Provinces,* and Hugh Macdonald, member for Antigonish, taking the Presidency of the Privy Council. On the 1st of July there was a readjustment of some of the portfoiios, but no further additions were made to the membership of the Cabinet. On the same date Prince Edward Island entered Confederation. The Hon. William C. F. Robinson, who had for some years administered the affairs of that colony, was temporarily continued in office.

It is doubtful whether Mr. Huntington, at the time of moving his resolution on the 2nd of April, had any very precise knowledge as to the nature of the negotiations therein referred to. His information was probably such as to satisfy himself, but it could hardly have been sutliciently definite to fix the guilt of the transaction with absolute certainty. He doubtless hoped to obtain additional evidence by means of his committee, Long before the date to which he committ had adjourned he succeeded in obtaining a knowledge of facts whic went far to confirm his charges, and on the 2nd of July he attended at Montreal for the purpose of supporting the serious indictment which he had laid. The Chairman, however, announced tuat the Oaths Bill had been disallowed in England, and that therefore the committee had no power to take evidence on oath. As the tiree ministerial members declined to receive any unsworn testimony he inquiry fell through. The Chairman submitted a letter

* In place of Mr, Howe, who had been appointed Lieutenant-(tovernor of Nova Scotia on the 1st of May, and who had died on the 1st of June,

530 The Last Forty Years.

addressed to him by the Premier, offering to issue a Royal Commission to the members of the committee, conferring upon them the power of examining witnesses under oath, whereby they would be enabled to proceed with the investigation. The Opposition members declinec. to accede to this proposal, urging that the matter should not be withdrawn from the considerati n of Parliament, and that “the issue of a Royal Commission sy a Government to inquire into charges against itself would be an unheard-of proceeding, and would not aid but prejudice the inquiry by the House.” After some discussion the committee adjourned to the 13th of August, when it was to meet at Ottawa to receive further instructions from the House of Commons.

On the 4th of July an additional impetus was given to the public excitement on the subject by the publication in the Toronto Globe and the Montreal Herald of certain correspondence between Sir Hugh Allan and two American contractors. In this correspondence Sir Hugh Allan himself appeared in a most unfavourable light, and there were references to Sir George Cartier which stood in great need of explanation, but the other members of the Government were not compromised thereby, and the general tenor of the correspondence certainly did not justify the serious charges brought by Mr. Huntington against the Government as a whole. Sir Hugh Allan promptly came out with a sworn statement explanatorv of the transactions from first to last, It put the worst features of the correspondence in a much more favourable light for the Government, and the ministerial press began to attack Mr, Huntington furiously for having made such daranifying charges on such slight grounds. But the end had not been reached. On the 18th of July a narrative from the pen of Mr. G W. McMullen, one of the American contractors above referred to, appeared in the Toronto Globe and Montreal Herald, The writer was not a man whose mere ipse dixit would have been entitled to much weight, but his story

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Recent Years. 531

embodied copies of letters and telegrams from Sir John Macdonald and Sir George Cartier, the genuineness of which it seemed impossible to doubt, and which went far to prove corrupt dealing on the part of the two leading spirits in the Administration. It was apparent that some arrangement had been arrived at between Sir George Cartier and Sir Hugh Allan in July, 1872, and that in pursuance of that arrangement the latter had advanced very large sums for election purposes to Sir John, Sir George, and Mr. Langevin.

The Ministry positively reeled under this staggering blow. As for Sir George Cartier, he had died in England several months before, and was thus beyond the reach of earthly reproach, but as regarded the survivors, the country showed every disposition to hold them to a strict account. The Opposition press had never before had such a theme ready to their hands, and they did not fail to make the most of it, The 13th of August was looked forward to with eager expectation by everyone except the inculpated Ministers and their out-and-out supporters.

At last the fateful day arrived. ! : has already been mentioned, it had been commonly understood that Parliament was to meet merely to receive and act upon the report of the committee of investigation. But no distinct agreement to that effect had been arrived at, and even had the case been otherwise, such an agreement would not have been binding on the House, Moreover, such an agreement, if made, must have been based upon the supposition that the committee would meanwhile have completed the investigation, and that nothing would remain to be done but to receive and act upon their report, But, owing to cireumstances already explained, the committee had no report to present, and there was thus no business to be transacted. The Opposition, how-

ever, urged that there should be no delay in inquirmg into the MeMullen disclosures, and that Parliament should at once proceed with the investigation. They mustered in full force, whereas many

532 The Last Forty Years.

Ministerialists who represented remote constituencies were absent. Under these circumstances the Ministry naturally desired à prorogation, in order to give their supporters an opportunity of attending. But as matter of fact, many of the ministerial members were accessible, and their presence could easily have been obtained by the Government at very short notice. Others had refrained from attending because they had been informed that their presence was not desired. These facts were known to the Opposition, who peremptorily refused to assent to the proposal for à prorogation. Some of the more rabid even went so far as to insist that the Governor-General should be called upon to dismiss his Ministers without further ado.

At the time of the adjournment in May, his Excellency had had no intention of being present at the meeting on the 13th of August. When the MeMullen narrative saw the light he had been holiday-making in the Maritime Provinces; but upon reading the astounding disclosures in the public prints he had determined to be present in person at the meeting of Parliament, He returned to Ottawa just in time to hold a Cabinet Council before the hour fixed for assembling. He was assured by the Premier that all charges could be satisfactorily explained before a competent tribunal. The Premier strongly urged that the understanding as to the prorogation should be carried out, in order that the country might be fully represented in Parliament during the investigation. The Opposition, on the other hand, presented a memorial to his Excellency praying that there should be no prorogation until Parliament should have had an opportunity of determining upon the proper steps to be taken. His Excellency acted upon the advice of his Ministers, exacting however a condition that Parliament should be convened without delay. The prorogation took place amid a scene of tumult which was a faint retlex of that memorable episode in the English House of Commons with which every reader is familiar, Cries of “ Privilege! privilege !” resounded

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Recent Years. 533

on every side, and the Ministerialists marched off to the Senate Chamber, leaving the Opposition members in their places in the House of Commons. The latter at once proceeded to hold an indignation meeting, at which some strongly-worded resolutions were passed on the subject of the prorogation.

Lord Dutlerin was for some weeks assaïled with much rancour by the Reform press, and it was long before he succeeded in reëstablishing his reputation among the Opposition. For this hostility there was certainly no sufficient cause. His Excellency’s conduct throughout seems to have been dictated by a knowledge of and a respect for strict constitutional usage. Any seeming inconsistency on his part during this trying period is properly attributable, not to Lord Dufferin, but to his advisers.* The Premier had been in power, almost without interruption, for about eighteen years. The Government could command a majority of votes in the House of Commons, and might thus reasonably claim to possess the confidence of the country. It was consequently entitled to the confidence of Her Majesty's Representative. The charges were monstrous in themselves, and were to a large extent founded upon the unsupported testimony of a disappointed contractor whose character was by no means unimpeachable, Their truth was denied ++ the Premier, who hurled them back with all the scorn of ar honest man smarting under a sense of injustice, and declared that he could satisfactorily explain anything that seemed open to question, Under these circumstances, was it to be expected that his Excelleney would withdraw his confidence from his responsible advisers at the bidding of a minority of the House of Commons, and before the truth of the charges had been established by evidence? Those advisers urged a prorogation, In doing so they did not act wisely for their own interests, as was clearly proved

* For a review of this question, see Todd's Parliamentary Government in the British Covonies, p. 444 et seq. See also The Canadian Portrait Gallery, Vol, IIL., p. 8 et seg.

534 The Last Forty Years.

during the next elections ; but had Lord Dufferin declined to accept their advice his refusal would have been equivalent to a dismissal. All this seems clear enough now. It was perhaps not quite so apparent in August, 1873, and the Opposition were not in a generous mood.

The Opposition also blamed his Excellency for his prompt transmission of the Oaths Bill to England, and accused him of having done so for the purpose of playing into Sir John's hands by causing delay. That Lord Dufferin was justified in transmitting the Bill — nay, that he was bound to do so, when so advised by his Ministers —seems clear enough. But it is hard to avoid the conclusion that he was wrongly advised, if not grossly deceived, by those in whom he was justly entitled to repose confidence.

On the day after the prorogation a Royal Commission was issued by his Excellency under an Act passed in 1868. It authorized and enjoined the three Commissioners named therein* to investigate and report upon the charges made by Mr. Huntington, The Commissioners met at Ottawa on the 18th, and summoned that gentleman to appear before them. They aiso requested him by letter to furnish a list of his witnesses. He replied, declining to appear before the Commission, and assigning his reasons. He claimed that, as he had made his charges as a member of the House of Commons, and as that House had ever since been ready to iuvestigate them, and was still determined to do s0, it would be inconsistent with his duty as a member of Parliament to recognize an inferior tribunal. Other material witnesses followed Mr. Huntington’s example by declining to appear before the Cominission ; MeMullen himself being among the number, Thirty-six witnesses appeared and gave evidence. Among them were Sir John Macdonald, Sir Francis Hincks, Sir Hugh Allan, Mr. Langevin and Mr. J. J. C. Abbott. It was proved by Sir Hugh Allan that he had

*The Hon. Charles Dewey Day, the Hon, Antoine Polette, and James Robert Gowan.

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Recent Years. 539

contributed sums amounting in the agæregate to $350,000 in aïd of the fund required for the last elections ; that he had done this at the request of Sir John Macdonald and Sir George Cartier ; and that the fund was to be used in securing the return of candidates favourable to the Government. A letter written by Sir George Cartier to Sir Hugh Allan, while the elections were pending, was put in evidence, from which it appeared that an: funds advaneed by Sir Hugh were to be recouped to him; although Sir Hugh himself admitted that he “did not well see from what source” repayment was to come.* Sir John's own evidence showed that he had personally trafficked with Sir Hugh Allan, and that he had received money from him to be used for election purposes. No need to go over the humiliating story in minute detail. The fate of the Ministry was sealed, The committee reported the evidence, and the country anxiously awaited the meeting of Parliament, which was summoned for the 23rd of October.

The appointed time soon came round, and with it came a full attendance of members of Parliament at Ottawa. The Speech from the Throne was delivered before à crowded House. It announced that the Report of the Commissioners would be laid before Parliament, and that the Canadian Pacific Railway Company, having been unable to make the necessary financial arrangements, had surrendered their charter. The debate on the Address in Reply

#4 Had Sir Hugh Allan, in his personal capacity, advanced funds to carry his friends triumphant at the polls, his act would have gone unquestioned, But Sir Hugh was an applicant for a Government contract, and the Ministry had accepted money from him, and by the assistance of this money continued themselves in office, This laid them open to grave suspicion, and though the gravamen of Mr, Huntington's charge that the contract for the Pacific Railway was given to Sir Hugh Aîllan, with whom were associated certain American capitalists, in consideration of a large sum of money advanced to leading members of the Government to enable them to sustain themselves at the head of affairs, was not proved, publie condemnation was awakened, and the Ministry fell. The head and front of their offending was their acceptance of money from the hands of a man who was », Government contractor,”—Canada Under the Administration of the Eart of Duferin, by George Stewart, Jr., p. 236.

536 The Last Forty Years.

was opened on the 27th. It lasted a week, in the course of which there were frequent defections from the ministerial ranks. The most tremendous onslaught on the Government was made by Mr. Blake, who delivered a speech of remarkable power, many passages of which must have fallen upon the inculpated Ministers like strokes from a flail. Sir John made an eloquent and pathetic appeal, which displayed a marvellous fertility of resource, and which would certainly have redeemed his position had it not been absolutely irredeemable. But the eloquence of a Chatham, or even of a Demosthenes, would have been inefficacious to restore public trust in the statesman who, through a long succession of years, had enjoyed a larger share of public confidence than any man of his time. It was felt that he had abused his power, and that he should be deposed. Early in the debate Mr. Mackenzie, who was leader of the Opposition, moved a resolution of want of confidence, but the Government, seeing that they must inevitably be beaten, did not wait for the vote. On the morning of the 5th of November Sir John placed the ministerial resignation in the Governor’s hands. His Excellency

at once sent for Mr. Mackenzie and entrusted him with the formation of a new Administration. On the 7th the announcement was made that that gentleman had succeeded in his task. The names of the new Ministers were as follows :—

The Hon. Alexander Mackenzie (Premier), Minister of Publie Works. { “A, A. Dorion, Minister of Justice.

“°° Edward Blake, without portfolio.

6 “Albert J, Smith, Minister of Marine and Fisheries, “ “Luc Letellier de St, Just, Minister of Agriculture. ki “Richard J. Cartwright, Minister of Finance. « “ David Laird, Minister of the Interior.*

+ This Department was created by an Act passed during the first session of 1873, which abolished the Department of Secretary of State for the Provinces,

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Recent Years. 537

The Hon. David Christie, Secretary of State.

L “Isaac Burpee, Minister of Customs.

“ “ Donald A. Macdonald, Postmaster-General.

L “Thomas Coffin, Receiver-General.

Telesphore Fournier, Minister of Inland Revenue. à “William Ross, Minister of Militia and Defence. ” “Richard W. Scott, without portfolio.

Parliament was prorogued by his Excellency during the afternoon of the same day, and the members returned to their homes. The Liberal-Conservative Government had fallen, and had dragged down several reputations in their fall. A large number of important appointments* made by them on the very day of their resignation did not tend to place them in a more favourable light before the country, but the incoming Administration allowed the appointments to remain, with a few exceptions, undisturbed.

Mr. Blake did not escape the charge of inconsistency. Ever since his entry into public life he had contended that thirteen Ministers were too many ; yet he now made one of a Ministry of fourteen. He however merely joined his friends at their urgent request, and because it was considered that his name would materially strengthen the Government, It was not intended that he should permanently hold office, and he accepted neither portfolio nor salary, so that his inconsistency was rather apparent than real. Such trifling charges as this, moreover, were the worst that could be laid against the new Ministry, and they seemed unworthy of mention when compared with the serious derelictions from duty which had been brought home to the leading members of the late

* Two of the Ministers were themselves appointed to office at this time, Mr, Tilley succeeding the Hon. L. A. Wilmot as Lieutenant-Governor of New Brunswick, and Mr. (Hugh) Macdonald becoming a Judge of the Supreme Court of Nova Scotia. Conspicuous among the other appointments was that of Mr. John Crawford, member for West Toronto, who succeeded the Hon., W, P, Howland as Lieutenant-Governor of Ontario,