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Tke story of the Pacific Scandal. 
 
 In tlw Huioa ul M\ tbe tauDliy wu 
 Mtoocded by th« propowkl ambodiad in 
 Um terma of anion oOared by tb* Ouin- 
 dkn QoTornment to Uritiih OolnmWn, 
 that the Dc' inion ihontd guknutM to 
 eoamenoe x.ihin two jean, and oom- 
 pUte within ten yean, a railroad whioh, 
 in oonneotion with the exiating Oaoadian 
 Unaa, ahould itratch from the Atlantie to 
 the Faeifio. The road for aertain wonld 
 ba *,600 mUaa, and might be 3,700 mUaa 
 U Uiigth. It might, aoeording to otrenm- 
 ■Uaaaa, ooat ONB HUNDRED, ONK 
 HUNDRED AND FIFTY, or TWO 
 HUNDRED MILLIONS of dollan. Sir 
 Hugh Allan, in fact, did ultimately pro- 
 poaa to borrow for the oompletinn of the 
 ■ohame a capital of OKE UCNDRED 
 AND EIGHTY MILLIONS. No plana 
 for ita oonatruction were before the 
 OoTemment. NoaurTeyahadbeonmade; 
 no eatimate of the coat hul been 
 aabmltted. The preliminarioa neoea- 
 aary before oommenoing an undertaking 
 to which the national faith waa 
 tbua pledged, were not even iboie whioh 
 would be adopted before agreeing tn erect 
 a lighthouie or build a bridge. Vot the 
 onterpriae, in prop irtiou to the wealth and 
 numbers of the people, would bo unpre- 
 cedented in ill magnitude, anl tax the 
 national roaourcea to the ntmoat. 
 
 British Columbia's Demand. 
 
 What made the bargain all the more 
 extraordinary waa, that the Britiah Co- 
 lumbiana did not iuaiit upon nor even 
 aak Canada to commit heraelf to any auch 
 engagement. What the/ demanded waa 
 aa folio wa:— 
 
 <• Inaamaoh aa ne real mica can ntaiat 
 " between the ooloiiy and QMfMa withost 
 " Iha ipeedy •atoblUhment andlMumtaa- 
 "tioo aorou the Rooky Uonlaina, by 
 " aoaoh road and railway, the DommioD 
 " ahall, within tlu«e yeara from the data of 
 " aaion, oonatmot and open for ftrafiBo ittoh 
 " coach road from some point on the Una of 
 " Oia main trnuk road of thia c >iany to 
 " Kort Garry, uf umilu- oharaoter to thd 
 "aaidmain truuk road; and ahall farther 
 " engage to uie all meant in her power t<i 
 "complete auoh railway oommanioatioa at 
 " the earUpat practicable date, and that inr. 
 " ffeya to determine the proper line fur auch 
 " railway ahall be at once commenced; and 
 ** that a IB in of not lesa than one million dal- 
 . "lara ahall be expended in erery year from 
 " and after three yeara from the date of 
 " anion in actually ounitnutin^ the initial 
 *' aectiooaof eaoh rail <ray fruin the aea-bt>an1 
 " of British Coluinbi?, to connect with the 
 " catlwaf system of Canadik*' 
 
 What Canada Granted. 
 
 Inatead of this moderate proposal, that 
 Canada " hiiould vat ku, the mbaxh ly 
 " RRR powkr'* to complete auch railway 
 eomm'itiicaiion, the (J iremmeiit uf Can- 
 ada olfered and insisted on Parliament as- 
 aentiiig to the following: — 
 
 "The Oovernuiont of the Diminlon under. 
 " take to sec t re the cc .tienoeinent simtij. 
 *' taaeousl>, within two years from the date 
 *'cf union, of the construction of a railway 
 *'from the I'aoitio towards the Ktoky Mi>nn- 
 " tains, an 1 from auch point as may be 
 "aettleleaUof the Rioay Moantaina to 
 ** wards the Ta.'itiu, to coonect the aeaboard 
 "of British Oolun^iia with the niiway 
 " ayttem of Canada; and, further, to secure 
 "the oomplt'ti-m of such railway within ten 
 "years from the date of the inion." 
 
 The propiaition waa moat unpalatable 
 to the H >ute of Commnni. An araead- 
 meat, moved by Mr. Mackenzie, " That 
 " Canada ahall not be pledged to 'do more 
 " than proceed with the neooaaary siir- 
 " reys, and, after therouta ia determined, 
 "toprowcute the wirk at aa early a 
 "period aa the state of the finances will 
 "jaatify," was defeated on a party divi- 
 ■ion by, Yvaa 0:1, Nays 08. But thia did 
 ■at by, any means fairly repreeent the 
 feelini;Vf the House. At a later atage, 
 Mr. R.>sa, member for Dandaa, and a 
 anpportor of the Q iT"romuut. moved an 
 amendment, "Tliat in the opini-m of the 
 " House the further oonsideratim of the 
 "HUeation ba i>i>jtponiKl /or the prcsait 
 " tf-vtiott of 7\irf|.iru'>nf, in ordor thai 
 " greatuT aud more careful c msideration 
 "maybogivon to a q'lestion of such 
 \i"nitu4.' «ii>\ imi' 'riaiici'l itlu! pfV 
 
 HiiiArtiHiiiiaMiMli 
 
 m STOET OF THE 
 
 Being* a Synopsis of the Facte 
 
 build the road, to reeeive theas vaat anb- 
 aidiea, and £o OMrafe thi nod for aUcem- 
 ing time. It fioallT gave powan to the 
 Government tn ORANr A CHARTER 
 HAVING THE SAME EPFBOT AS 
 AN ACT OF PARLIAMENT, amalga- 
 mating any existing incorporated compan- 
 iea, ijcorporatiDg a new compa j, oa at- 
 
 TRRINO TH« Act or PaRLIaHKUT INCOE- 
 
 poRaTiHQ amr ixistiico ooiipany. All 
 opp<«ition to theae monatroua encroach- 
 monta on the funetiona of Parliament waa 
 in vain. The Britiah Columbia resolu- 
 tions had committed the Houie to the 
 project and to a limitation of time. In 
 short, 8ir John A. aMacdonald had fairly 
 caught the Uouae ia a trap, and resist- 
 ance waa met with the reaponae that the 
 powen must be uranted or faith could not 
 be kept with Britiah Columbia. 
 
 Fijlse Pretences. 
 
 But the jealousy of Parliament was not 
 entirely allayed by thia argument. 
 Ilesurt must be had to fraud and misre- 
 presentation. Tne clause giving Qovor 
 ment power to supersede the office ami 
 authority of Parliament, by issuing a 
 charter equivalent in ita effect to a Stat- 
 ute paaaed by the Honae of Comraona, 
 Senate, and Crown combined, waa eape- 
 oially obnoxiout. Sir George E. Oartier, 
 howerar, explained tUat tha olauae 
 waa deaigned to prevent a oombiaa- 
 tion of the great oompantea who were 
 competing for the oontract, ^which 
 m'ght place the Ojvemment at the mercy 
 of a powerful monopoly. In hia very firat 
 speech, when introducing the Canadian 
 Pacific Railway Bill on tha 27th April, 
 1872, Sir George E. Oartier aaid: — 
 "Aaoth(. contingency preaeuted itaelf to 
 " tha Oovernmeut on considering the 
 " aohpme. Several Oi>mpaniea might ba 
 " incorporated diirins thi* proaeat iieeaion 
 " of Parliament', affi it miykt happen that 
 " theM cofHfMirtiej might amaU/amale and 
 **(Unawi any term-; con-p/picnf'y (Ae Oi/V- 
 '' emment had contidered by teA<s( means 
 " tiich a stale of things could be met, 
 "and they pro, MMed there should be a 
 " clanae in the Bill authorizing the G.>v- 
 " emment, in case they could not agree 
 " with a company for the oonatruction of 
 '' the whole line, or with a company 
 " formed of aeveral eompanies amalga- 
 " m ted, (o rfrntK the offer of capitaliet* to 
 " imild the raiiway, ani give thtma charter 
 " under an Order in Council. " 
 
 Go the same oooafiosi Rir George Oartier 
 said U w» a maUer of rtjoirm^ to the (foe- 
 ernment tha' there were » wral competing 
 bo'iiet e'uienvoar'my to obtain incorporation 
 tor that ;iiir;>oM. Again, en the 8th o( May, 
 dnring the diHcassion of the resolnticna, Sir 
 George B Oartier remarked, in nearly aimilar 
 terms: — " It had been found, he waa glad to 
 " say, that there were several companiss 
 " seeking incorporation for that purpoae 
 " The policy of ths Government wonld be to 
 " allow all thaae Companies to obtain Aetsof 
 " luoorporation, whether for a portion or the 
 " wholeof therailway,reaerringtothemwlvea 
 " power, however, to deal with Uiem after 
 
 •wards. 
 
 *' ff the Government couU attree *e''th any of 
 "the propo-tetl (ompanieA thry would do no 
 " At the sams time, they must understand 
 " that tha Qomsmment would not be forced 
 " into a large price." 
 
 On tha gth nf Uay, in reply to Mr. Holtnn, 
 8ir John A. Maodonald said: — " The hou. 
 ** gentlemen opposite were oommlngKng the 
 " remarka of his colleague with what hf 
 " (Sir John) had said, aa to there being ^> 
 '• oommunioationa to tha Oovemment exosr 
 " one letter to himself from I Sir 
 " Hugh Allan, which he had treat- 
 *' od as i^nani ofBoia*. He hal stated 
 ** that he considered it very gratifving to 
 " have an offer from agenttemaaof each llluk 
 " atandiiig, hnt he understood he would make 
 "a more ofhoial offer to the Govemmi^n's 
 *' and, therefore, he wool I not bring it d' wa 
 " without his consent It woe knoim, hnu . 
 " tree, thai th/^rt were variout parties di.j,ir- 
 '* OHM o^carryin.f out the great w .rlc, and it lew 
 " a t'tur^e of aaliifartiftn to know that tht 
 " i^/n'Vm -n enncerniit tpere qflh^ lil,the^t ..Inn t 
 "1(1/ ti'i't i ^fl-'.-i r^_ Tln-y hil, h i-.Mvvr, :\:) 
 
 iMiiiMiiiMMHHiiBM 
 
 Into Ui« bankiag-hoBM ot Jm Cook* k Oo.. I 
 ia Kow York •itr.to tho «fw^t of tho OftoaiU 
 Paaiflc RaOmy OonipMjr, «poB its orKaaiat* 
 tiott, to be asM for the ooaitraotioK m aaid ' 
 rail way. and for tack othar parpoiaa ai tha' 
 Dirooton of aaid Oompaaj, haraaftar | 
 to ba alaotwd, ahall detamiaa. Aad 
 it ia alia amod that on tha organi- | 
 satioo ot tatd Rallirar Oompaay, aaoh 
 a By-L«w ahall ha adootad aa will probihit ' 
 any further Mieuiziant on the stook, bejrond ' 
 the teu per oanfc paid at before ipeoifled, on- ' 
 lou ordered bv a vote of at least nine-taathi ' 
 of all the oatitaodiog itock of the Company ' 
 at eome regular or special iharaholdera' meet- ! 
 »ng- I 
 
 "And it is farther agreed by tha partiei 
 hereto that they ahall assootate themselves 
 together as the Canada Ltnd Improvemont ! 
 Company, whiohit is proptiad shall be here* : 
 after lojarporated by the pArliameat of Oaa- , 
 ada, for the parpsse of o^ustraotiag the ^ 
 taid rAtlwar aad for the pircha«e and aale : 
 of lands fcod f»r other need'Hl objects; and | 
 that thtiir interest in the aail L»ud 
 and Improrement Gompsny ehaU ba 
 in the lime pmpr>rti ms ai thotr eereral 
 snbioriptioni to the ratlvay stojk aforusaid 
 bear to tha wh>1e ten milUimtot dollars sub- 
 scribed. Anl it ts agreed that the cmtraots 
 for building auy or all of the varioas eeotiiins 
 of the said Canada PaoiSo lUtlvay, when 
 let, ahall bs let to the said Cantda Land and 
 Improrement Company at fair prioaa;and 6he 
 Canada Land ana Improvement Company 
 Uiall op irate aad be alio ved the naa of the aaid 
 rail way, daring the period of ite eonatraotion, 
 witboat oharifa thorafor, azoept the azpenaa 
 el kaepioit m aaaa in gixKl order and ro* 
 pair, at their own ooat, daring aaoh as* aad 
 eoateol o( aaid railway. 
 
 " It ia also agraed that the fint working 
 oapital of the aaid Canada Land and Im- 
 proTement Company ahall be tho aforaeaid 
 one million dollars to be p%id in on the Rail- 
 way Stock before-named, leia any amoanta 
 prenaa*ty ezpeoded by order of the B>ard 
 of Directors, and ahsll also o'>ntist of anok , 
 earns or profits aa ihall thereafter be ra- 1 
 oeived by it, from time to time, from aaid 
 Railiray Company, for oonatrautlon and for 
 work done In exoou of the ooit of ruoh 
 work, or ao much theroof ae may be neces- 
 eary for the sacoaaefol proseontiua of aaid 
 Wtrk." 
 
 Tail wai followed, on Uaroh 28, I87t, by 
 a *' supplementary agreement" ia the folloir> 
 lag trrou: — 
 
 ** Wheroai it apptmrt Ik^U tkf Canoiliah 
 QQ9ermme%\ prtfer tn give a gcQim sum q^i 
 monejf ant a groM amount w^ lamd far the t 
 conatTHctiom of the Canad* Pacific HaHwm^ 
 and the branch thereof from Port Garry to 
 Pembina or Si Vinoent or the International i 
 boundary line in that vicinity; now, there* 
 fore, the andersigner'. agree to ao alter their 
 oontract or agreeoMDi of Deoember 2.1rd, 
 1871, aa to agree to take thirty-fir* miUions 
 of doUan ($35,000,000) in money (gold) and I 
 fifty millions of acrea of land in amoant, to 
 be Heleoted ai proposed, and the monev to be 
 paid pro r.iU per mile as oonatmcted, each ' 
 mile to ba counted ae the one twentT-fiTe 
 hnndredth part oi the whole line to be built, 
 aad the land at the rate of twenty thoaaaad 
 acre* for every mile of nulway bnilt; and in 
 oaae, in the jadgmant of our aaaooiata. Sir 
 Uugh Allan, it ihonld b* deemed expedient 
 L by him to inbmit to the aooeptanoe ofthirty- 
 three mtllioni of dollara in gold (|33,000,000) 
 and fifty mitU<iU (50,000,000) acres of land 
 as compenaatian for the oonstmction of aaid 
 road, be is heieby authoriied to do eo: and 
 in oaae a farther redaotion in prioe is looad 
 to be indiipenaabl* in order to aeonre tile 
 oontraot for the oonstniotion ot the eaid 
 Canada Pacific RaUiray, thea J. Gregory 
 Smith, Sir Hugh Ailan, G. W. MoUoIleo, 
 Geo. W. Cass, and Wm. B. Ogden are here- 
 by oonstitated a Committee, with aathority 
 in them, or a majori^ of them, to labmit to 
 auch further rednctioD in the money prioe to 
 be paid in thvir diaoretion to any earn not 
 below thirtv miUioni of doUara ($30,000,000) 
 as thev ahul think neoeaaary or adviaaUet 
 \nd the said Committee, or a miirwitr of 
 them, ahall have poirer to make eaoh aaseaa- 
 roenta, from time to time, for the Mineral 
 purpoaea of the Comptoy, not ezoeadinff in 
 all one and one half por cent, of the amoanta 
 agreed to be snbporibefl by us to the atook of 
 the Canada PaciHc Railway CompaDy,aa they 
 shall deem etp«dient The aaid aaaeasments 
 are to be ooniidered aa part ef the one mil- 
 lion dollars agrred to be paid on the stock 
 contracted fe|) be siib^crilmd by as in the 
 agrecmont of D ;cem*>er 2:1^1, IHll, and to 
 h ' sabi-i't ti> thi' n^mo crmditimi* nf payment 
 atiil rcfiitvlH' ^ wai t int<T.«t ,t s'-f tncrt'in 
 
 "Mr. UoUallen waidesiroBi of ae^inring 
 tho inferior membera ot the aovemmei«t,aBa 
 aatered into engagamanti of whioh 1 did not 
 approve, ai I thought it only a waste of pow- 
 der and shot. On a oalm review of the iltaa' 
 tioB, I satiafted myaalt that the whole deoi- 
 aion of the question mast altimately be in the 
 hands of one min, and thst mtn waa Sir 
 George E Cartter, tSe leader and chief of 
 the French party. Thia party has held the 
 bUanoe of poirer betireen the other factious. 
 It hts lastainel and kept in oflioe an I ezist- 
 enoe tho entire Goveroinent for the last five 
 
 {reara. Itcoaalitsof 4^ men who have fol- 
 owed Cartier, and voted in a loUd phalanx 
 for all hia mcMnroJi, The Givemmant ma- 
 jarity in Parliaiaeat being gonerally leis than 
 43, it tolloars thU the deieutioa of one hilf or 
 two-thirds w^ald a^ any tim? put the Gov- 
 efnrnont out of ofh -e. It wai therefore evi* 
 dtjut that Nime mdsni miit b) adopted to 
 bring the inlljea^se of this compact body of 
 memSen to bo&r in our tavjur, and as [ iooa 
 made ap my m<nd what wai the best coarse 
 to parius, I did o3fe lose a miment in foUoir- 
 
 iOK it UD. 
 
 "A raUrosd from Mmtreal to Ottawa, 
 through the French country north of the 
 Ot^wa River, has long beec desired by the 
 French inhabitants, but Cartier, who is the 
 salaried solicit )r of the Grand Trunk Rail- 
 road, to whioh this would be an opposition, 
 has alwaya intarpoaed diffijulties, and by his 
 influence prevented it being buitt. The aame 
 reaaoa made him deeiroas of giving ths oon* 
 traot for the Canadian Paeifio into the handa 
 of partiea oonneoted with the Grand Trank 
 Railroad, and to thia and ha fanned the flame 
 of oppoaition to aa. B^t I law in this Frenq^ 
 railroad achame, and in Aa near appromck of 
 the general etattitiu, when Cartier as well 
 aa othcra had to go to their oonstitneata for 
 re-eleotiim, a aore meaui ot attaining my 
 object, eepeoially ae I purposed to carry it 
 throoflh to the iermiuLs of the Pacitio. The i 
 ptani Ipropiae are in thouuelvea the best 
 ur the interests of the Dominion, and ia 
 argiag them on the public I am really doing > 
 a most patrioUe action. But even in that ' 
 view, means must be use I to influenoe the , 
 uublio, and ( employed sevtiral young French . 
 law>en to write it up for their own news- j 
 papera. I aubscrib^ a oootroUing influenee 
 in the stock, and prooeeded to auDsidixe the 
 newspapers khumselves, bothedttors and pro- , 
 prietor'i. I went to the coantry through 
 which the road would pass, and called on 
 many of the inhabitant!. I vtaited the 
 priests and made friends ui them, and I tax- 
 ploj ad agnnta to go fmon^t the principal 
 people awl talk it an. 
 
 "I then began ta held public meetings, and 
 attended them myiel', making frequent 
 ipeechee in French to t\ .bo, ahowing them 
 where their true interests lay. The eehema 
 at once became popular, and I formed a 
 oommitteeto iatlaeuce the membera of the 
 Legislature. 
 
 **Thi» wrceedrH no uwtl (hat in a ghnrl time 
 I tuni £7 out q/* tke 4.5 on tcAnn / eoaUl rdy; 
 and the electors of the ward in this oiry 
 which Cartier himself repreeentaViotified him 
 that unleas the contract for the Pacific Rail- 
 road was given in the intereita of Lower 
 Canada he need not present himself for re- 
 election. He did not believe this, bat when 
 he oame here and met hia oonstitaente he 
 found to hii aurpriae that^eir determination 
 was anohangeable." i 
 
 John A. Temporjing, I 
 
 In order to aeeara the good will of both 
 parties, at aB events natil the eleotioaa were 
 over, Eir John A. ICf odonald ten.poriied and 
 tried to effaot aa aasalgaoatioo. He layi in 
 his evidenoe:— { 
 
 "Soaoonasthe aosaion was orer, when 
 " Parliament waa prerogaed, the •overa- 
 *'meat addreaaed itself to the task of at- 
 " tempting to prooure tha amalgamation 9t 
 " tha two Companiea." I 
 
 Thia, be it reoaamherad, wm the Iflaiatar 
 who had jait induced Parliament to give him 
 moat anoonititntional powers, on the ground 
 tiiat amalgamatiott might prevent oompeti* 
 tion. Sir John goee on to lay : — 
 
 *' After talking the mttter over with Mr. 
 Macpheraon and other gentlemen in Toronto, 
 I wrote to Montreal and I ask«l Sir Qnah 
 Allan to come up t«i Toronto; and Mr. Ab- 
 bott, a member of Parliament, and who had 
 t«ken grrat interest in the Csnada PaoiHo 
 Railway, also to onmo to Toronto and disonse 
 kk« m«tu.r wH. Mr M»0!ih«n»cm. Bir »unh 
 
 " About tha aad of July, I thiak it waa aa ^ 
 the 39th of July, Sir Hugh AUaa oaUed npon | 
 me at my oflioa, and asked me to aoeompaay < 
 him en the following day, at eleven o'olook, ■ 
 to Sir George Cartier'e hoaea He aaid that 
 he had aa appointment with him at that 
 hoar. Tu the best of my recollection, Sir 
 Huffh is mistaken in saying that I had been 
 with him at previooa interviews with Sir 
 George Oartier. I do not think that I wsa 
 with him, except on the occasion of which I 
 have just apokea, namely, the appointed 
 meeting of the 30th July. Sir Hugh called 
 upon me, and wo went to Sir George's rooma, 
 and Bsw him there. Sir George and Sir 
 Hugh kid quite a lengthy discussion, which 
 a.ipetred to me to flow to some extent from 
 previous interviews about the position of 
 thcM ompanies, about their amafgamstion, 
 about the proipccti of the amalgamated com- 
 p»y in conaeotion with the railway; in fast, 
 on the whole snbjeot; and they came to agree 
 in certain views about the matter, which 
 were stated by Sir George and Sir Hugh 
 plainly eoongb. The bavii of their conver> 
 sation was the telegram which Sir John A. 
 Macdonald had sent Sit George on the 26th 
 July. In the interest! of Sir George Car- 
 tiers election, as well ae for other .*easoni. 
 Sir Hugh appeared deairoaa uf having aome- 
 thing more definite lettled than was oon* 
 tained in Sir John's telegram. The result 
 was that they appeared to agree npoa certain 
 
 fioints in which Sir George was disposed to 
 avour Sir Hegh'a views. Sir Hugh then 
 said to Sir George—' Now, if you can pot 
 these p>iute in writing tor me as you state 
 them, I think they will aatisfy our friends ' 
 Bir George wae eztrenuly busy, and w.a not 
 a verv ready penman at any time, and he 
 aaid, 'Mr. AbDo«« haa heard our oonveraa- 
 tion; let him put down what he nnderetande 
 haa passed between na. Mid oome back thia 
 afteruoon, aad we srill i^oea it np.* We then 
 roee to leave, and were leaving the room 
 when Jir George addressed Sir Hugh on the 
 subject of money in the manner which Sit 
 Hugh has desoribed. He sud, in an off 
 hand kind of way, ' Are yon not going to 
 holp us with oar electioniT' Sir Hugh eaid 
 he would, or words to that elTeot, and said 
 * How much do yoa want*' or * Hoar much 
 do you require?' or something like that. I 
 aiderstood Sir George to aay that there 
 w >b11 be a oonaiderable aam required, as 
 there was ao muoh opposition cm varioaa 
 groands Sir Hugh aaid, as far as I oan re- 
 collect, * W«ll, writ* down what von want.' 
 Sir George aaid^ rnrj rapidly, ' Von know 
 you won't looe ik alL Our party will make 
 up the greater part of what yon give, bat we 
 want It new.' or aomething like thai My 
 memory ia very imperfect aa to the ezr^t 
 phrases used, aa I never endeavoured to ra- 
 collect them aotil lately, whan tha ir^tter 
 became the aabi«ot of oonvereati^d. Sir 
 George then aaid, ' Very well; orina back 
 thia afternoon. Let Mr. Abbott write a note 
 reauestiog yon to advance thia money, uid 
 telling you ihnX I will ae* that you are re- 
 paid, and oome back this afternoon at such 
 an hour, and we will close the whole matter 
 as.* We left upon that; I went to my 
 office, ikctohed a letter about the railway 
 affair, either by dictation or other livise, I 
 don't remember now, ojrreoted it, and had 
 it copied. 
 
 *' Q.— I wonld call your att«ntioa to thee* 
 two letters now. 
 
 " A. — I iketohed thoae two letter*. 
 
 " Q —You aaw them, 1 inppoee? 
 
 *'A.-Iakatehed thsm; I draw them. I 
 aketoked thoe* two lett*ra roaghly, know- 
 ing, I tkoaghK vbat to aay with regard to 
 the flrat— the railway affair— bat knowing 
 very Kttle aboat tha other. Sir Hugh oaUed 
 npoa ma, and I took thee* two leHer* I had 
 ■k*toh*d t* Sir Oaorge Oartier'a offio*. with 
 Btr Hagh Allan. Tha fint letter, r*f*rring 
 to th* railway, Bir Oaorge waa aatiaflad with 
 as to the first two pagoe of H, bat not with 
 the third. The letter waa writtmi npon 
 ^r*e Isave* H* wai aatiafiad v^th th* first 
 two leave*, bat tiie oonolniion of the letter 
 did not axaetly pleaao hiai. He aaid. 
 ' Leave that off, aad I will diototo ti too 
 what oonolasion to put to it.' Ha then dio- 
 toked tha foar or five llaee whioh oonstitate 
 th* last sentono* of th-^ l*tt*r as published, 
 aigned it, and handed it to Sir Hugh Allan. 
 Tbe other letter, with respect to the money, 
 he did not approve of, and atruck hia pen 
 through the moet of it, I think, if not the 
 whole of it, wroto a few worde upon the 
 draft, and rcqaested me to writo it over for 
 him, which I dil, either from his dicUtion or 
 from the draft so altered by him These are 
 tha two luitera which Sir HuKh has pro 
 
 [tn 'nil ttHn nt irTitnn I tlii>1 t.tiKt my rmKil 
 
 par, it was not 
 Your telegram t 
 aoreemeaC whit 
 approve of. H* 
 on Satarday afti 
 his health wiU 1 
 (Signed) 
 
 Theae tolegra 
 firm story of the 
 ment between i 
 drawa. The let 
 wu one from Sit 
 M.-ijdonald, to a 
 ferooce in his ei 
 farthcoming bef( 
 the letter ab( 
 drawn is proved 
 
 still in Allan's 
 value it that he i 
 to allow him to i 
 
 cortified copy. 
 two lettors, if an 
 too clearly as tab 
 of the lame ton 
 Sir George nsea 
 PA:^Y." "Any 
 COMPANY iba 
 one— "The Gove 
 of theamalgamat 
 he says in the e 
 Fxnr," th* oonto 
 a^ PaoiAo," is 
 auspice*. With *' 
 rangement waa m 
 andto "YOUR C 
 or, if amalgamatii 
 PAHY" alone, n\ 
 
 The Prooj 
 
 Sir Hujh Allan' 
 tonor delivered a 
 that the p^ousnl 
 promise to give t 
 and the ssme bai 
 W. MsMiUen on 
 he aays:^ 
 
 •'M< 
 
 *'DtaB Mb. 1 
 hoping frem day 
 whioh I could 001 
 arrived at reepe 
 negotiation, bat i 
 always intarvena 
 elections, howevi 
 my French frieni 
 help till I pronoc 
 length brought tl 
 think the game I 
 hkely to be attoi 
 
 " Yestorday w 
 by whioh the G 
 form a Company 
 ing to my wishes 
 make me Preeii 
 friends will get a 
 that the oontraot 
 be given to thia 
 Act of ParliameD 
 fully excluded in 
 it to the Norther 
 oan get over that 
 
 "This poaitioD 
 out large paymet 
 ready psid over 
 least $100,000 m' 
 soon know what 
 
 f[otng to do, Tb 
 ettor. 
 
 (Signed) 
 And to Generi 
 he wroto as foUo 
 "Ma" 
 *'0. W. Oasf 
 
 "Dear Su. 
 giving you a deti 
 date of the even! 
 neotion with the 
 I have not had a 
 reix-ipt by you ol 
 It reaihed you ir 
 1 asked yuu, ho 
 And I now prooei 
 
 •••■ of tli« neqn 
 
1 
 
 IE PAGini! SCiNDU : 
 
 of the Facts of the whole Case. 
 
 Jalj, I think It wu om ^ 
 lagh AlUa <MU«d npoo { 
 iked me to Mtompftay 
 i*y, »k flloroD o'clock, 
 
 hoaM. He Mud tlut 
 at with kim kt thftt 
 >f my reooUeotion, Sir 
 aying that I k»d keen 
 I interneiri with 8ir 
 
 not think that I wm 
 le oooMion of whiok I 
 imely, the appointed 
 ruly. Sir Qof^h called 
 I to Sir ae'}rge'e roonu, 
 
 Sir Qeorfie and Sir 
 [thy diiooauon, which 
 w to Bome extent from 
 ftboat the position of 
 i their amalgamation, 
 the amalgamated com- 
 ;h the railway; in fast, 
 and they came to agree 
 at the matter, whioh 
 George and Sir Hugh 
 ba^ia of their conve^• 
 a which Sir John A. 
 r Qeorge on the 20 bh 
 ta of Sir Qeorge Oar- 
 as for other .-easona, 
 liroaa of haring some- 
 lettled than wag oon* 
 telegram. The reinlt 
 1 to agree npoa oertain 
 leorge wai diipoaed to 
 ewe. Sir Hagh then 
 
 Now, if yoQ can pat 
 
 ftur me ai yon itato 
 •atitfy oar frianda ' 
 lely bniy. and Wi^ not 
 at anytime, and he 
 a heard onr converta- 
 what be anderatandi 
 I, and oome back thii 
 i^oae it np.' We then 
 re leaving the room 
 aaed Sir Hagh on the 
 iie manner whioh Sit 
 
 He Biid, in an off 
 kn yon not going to 
 ionaf Sir Hagh aaid 
 ' that eflTact. and eaid 
 irant?' or ' Bow much 
 tmething tike that. I 
 I to Bay that there 
 ble anra reqaired, as 
 oppoation on rariona 
 d, aa far at I can re- 
 own what roa want' 
 rapidly, * Von know 
 
 Onr party will make 
 rhat yon gtve, bat we 
 ithing like thai My 
 rfeot aa to the •xrai 
 ar eodeaToared to r*- 
 Bly, when the ir^ttor 
 »f oonTeraati''4. Sir 
 iiy well; o^ine bank 
 ', Abbott write a note 
 noe thia money, and 
 , aee that yon are re- 
 hi> afternoon at Booh 
 ose the whole matter 
 )hat; I went to my 
 ir aboat the railiray 
 tion or other triae, I 
 jrreoted it, and had 
 
 nr attention to theae 
 
 le two lettera. 
 , 1 Bnppoae? 
 m; I drew them. I 
 ttera ronghly, know* 
 o aay with regard to 
 affair— bat knowing 
 er. Sir HnghonUed 
 m two leUera I kad 
 Owtier'a offloe. with 
 firat letter, referring 
 ge waa aatiaSed with 
 M of it, bnt not with 
 ' waa written npoo 
 atiaAed v^th the drst 
 ttolnaion of the letter 
 le kin. He anid. 
 : wlU diotate ti yon 
 to it.' He than dio- 
 inea whioh oonatitnte 
 t letter aa piblished, 
 i to Sir Hugh Allan. 
 Mpeot to the money, 
 ani Btrnok hia pen 
 
 BI think, if not the 
 ew wordB npon the 
 t to write it orer for 
 f ram hi* dictation or 
 , by him Theae are 
 Sir Ho^h hu pro- 
 
 r tKi.l thuk my rHiMiI 
 
 la 
 
 p*r, it WM not intandtd h Mwthia| ofBoiaL 
 Vonr tdagiMi to Sir Q«a. ii tnc buu ol on 
 AarMBeol whioh X kftT* ao dmbt yoa wtU 
 ipproT* oL H« poriKMea to ge oat of tow> 
 on SttardaT af tamosa, and I aa panaadad 
 kii htaltli will bo baatittMl tharabjr. 
 
 (Sigaad) "flUQH ALLAN." 
 
 TliMe toloflrami, bowoTor, ara not ooa* 
 6rm>tor7 of toa lUtemant that tba agreo- 
 meot botwoon Allan and Cartior wai with- 
 drawn. The letter withdrawn, it ia eiear, 
 wu one from Sir Hugh Allan to Sir John A. 
 M.iidonald, ta whioh the latter made no re- 
 ference in hii OTidence. and which waa not 
 farthoominx before tho Oomrnluion. That 
 tho letter abore given waa not with- 
 drawn ii prorel by the fact tliat it waa and 
 ia itill in Allan'a bandi, and ao mnoh did he 
 Talao it that he reqnoited the CommiMlonera 
 to allow him to retain the original »nd put in 
 a certified copy. The oonneotion betweet: the 
 two letten, if any one doabtel it, ia on!/ 
 too clearly utabliahed by the employment 
 of the tame terms in both. In both oaaea 
 Sir Qeorge niea the phraae "YOUR COSi- 
 PAN\r." "Any amount whioh yon or YOUR 
 COMPANY ahall adranoa;" he lay* in 
 one— "The OoTemor ia Oonncil will approre 
 oftheamalgamationof YODR OOUPANT" 
 he uyi in the ether, and by "todb oov- 
 rAur," the nontext ahawa ia meant the "Oan- 
 aSa PaotAo," iaoerporated nnder Allan'a 
 anapicee. With "YOUR COMPANY" thear- 
 ranj{ement waa made to ftnanoe the eleot*':^?. 
 aodto "YOUR OUUPANY" amalgamated, 
 or, if amalgamation failed, to "YOUR COM- 
 PANY" aloae, Bhiall the charter be given 
 
 The Proof of Their Guilt. 
 
 Sir Ha jh Allan's letten and ipeeohea writ 
 tenor delivered at the time, olonch the proof 
 that the ptyjient of the money and the 
 promise to give the charter ware part of one 
 and the same bargain. Writing to Mr. O 
 W. MaMiUenontheeth of Augnit, 1872, 
 he wya:— 
 
 " MoHTRUL, Angnat 6, 1871 
 
 "DaiE Mk, MoUhllbii,— I have bean 
 hoping from day to day that soma oonelnaion 
 whioh I could oommnnioata to yon woald be 
 arrived at reapeoting the Paoifie Railraad 
 negotiation, but aome obetaole tc oaoae delay 
 alwayi intervened. The ne«r approach of the 
 eleotiona, however, and the etand taken by 
 my French f rienda— that they wonld lend no 
 help till I prononnoedmyaelf aatitfled— haaat 
 lengthbronght the matter to aorisia, and I 
 thiuli the game I have been playing ia now 
 likely to be attended with aucoeia. 
 
 " Yetterday we entered into an agreement 
 by whioh the Government boand itaelt to 
 form a Company of Oanadiane only, aooord- 
 ing to my wiihea. That thia Company will 
 make me Preaideut, and that 1 and my 
 friends will get a majority of the atock, and 
 that the contract for building the toad will 
 be given to thia Company in terma of the 
 Act of Parliament. Amenoans ara to be care- 
 fully exoluded in the tear that they will sell 
 it to the Northern PaclSo. Bat I fancy we 
 can get over that some way or other. 
 
 This poaition has not bean attained with 
 
 ont large payments of money. 1 have al 
 ready paid over r^OO.OOO, and I will have al 
 least 1100,000 more ti pay. I asnst now 
 
 soon know what oar New Yoak trianda are 
 
 f;oing to do. They did not anawnr my last 
 etter. 
 
 "Yo«ahnIy, 
 
 (Signed) "HUOH ALLAN." 
 
 And to General Oaia, on tha 7th Angnat, 
 he wrote aa toUowa t— 
 
 "Ma— 
 
 '0. W. Canr -> 
 
 \ 7tk Angnat, 1872. 
 
 "DiAR Si~ ''te to yon on 1st July, 
 
 giving you a detailed aooount np till that 
 date of the events and my movements in oon- 
 neotion with the Oans'iian Paoiflo Rsilroad. 
 I have not had any acknnwledginent of the 
 receipt by you of that letter, but I presume 
 It resihoil you in due course. The questions 
 [ asked you, however, rvmain nnaoswered, 
 and 1 now prooeed to inft>rm yau of the pro- 
 U....I nf ttin npjintiaU»il niiioe thn data of my 
 
 mlatakeabia a oanfeasion, in fao^ aa tha log* 
 liah langnaga eoald formnlata. We have, ia 
 addition to thia, tba Uioiater'i awn oral ad- 
 ■aiaaions. 
 
 The Chief Culprit's Confession. 
 
 Sir John A. Maodonald laya in hia evi- 
 denee : — 
 
 " Aa I have already mentioned, when Sir 
 (leorge Cartier went to Mjntreal from Otta- 
 wa, aud I went to Tor mto, [ asked him to 
 endeavour to get whtt pecuniary help be 
 ooald from onr rioh frk-oila in Montreal; and 
 when I was In Kiog^tin at the time of my 
 own election, I got a letter from Sir Hugh 
 /llan stating that he wonM contribute $.'.^, 
 000 to tho eiuotion finul, 11^ nuetl the ex- 
 preeaion that he woul 1 o mtnbute 125,000 to 
 nelp the frienda of ttie Admiui.tration in 
 their electiona 1 may aay here that 1 oon- 
 aidered myaelf a tru >tee to that fund, and 
 oertaiuly did not apply any of that m iuoj to 
 my own election. 
 
 " Q.— Hare yon got that letter|t 
 
 " A. — No, I destroyed it 
 
 "It was aimply infirming me that he 
 would oontribute te that extent. 
 
 " I paid the expeaaes of my own election; 
 and, in fact, I did jot rceeive anv f unila from 
 Sir Hugh Allan until after my own eleotian 
 wa« over. 1 waa at Toronto the moot of tl.e 
 period daring whi.:*^ the <>lau^■.ona were being 
 neld, going oaoojaiiooally tr, one place or 
 another to oommanieate with my fnenda I 
 got peonniary aaoiataace vhera 1 oonld, * 
 ^ * * Sir High AUaj waa then la New- 
 foundland, aa 1 anddrstood, and 1 wrote 
 twice peraenally tr. Mr Abbott, wha waa 
 acting ia Montreal for him, and twice re 
 c;!~^. caatributioas to the extent of llC.OOO 
 <sach. 
 
 "Q.— Were these aanu both from Mr. Ab- 
 bott! 
 
 " A. — I am not sure, bat I think ao. 
 
 "Q —That wat in addition to tha t2i,00), 
 makmg ia aU $45,000 t 
 
 "A. -Yea 
 
 " As to the contribution of 12.5.000, it was 
 aent to ma without my having previously 
 asked far it. 1 had do oommnnioation with 
 Sir Hugh Allan, and neveraaked him tor any 
 anm whatarer, at the time that 1 received the 
 125,000, 6» » / kan vo inubl Sir Otorgt <ukrd 
 turn tt mhtrlbf, and I got the intimation 
 from Sir Hugh Allan that he had snhacrlbed 
 that amoan* Th- al\tr two tunu of $10,000 
 eaek u».t« ffmm atmj requMt. I woU t* Si*- 
 Ottrgt earlier in lHontreal, vM rnpeat to 
 UuK aldUkmaladMrMt, tkil at im hai iwck 
 a hard fyM, ht m'Ut e'Uhsr borrom or beg 
 fund* for nu, and I kavt no douH thai ke 
 anknifor them I wu not aware, nntQ 1 aaw 
 the commnnication in the newspapers, that 
 ha had written Mr. Abbott to endeavour to 
 get it for me if he could." 
 
 Langeuin's Little Game. 
 
 Mr. Langavin's haul was $.32,600. Be talla 
 iii story as follows : — 
 
 The only time I had a oonversation on elec- 
 tion matters with Mr. Abbott was, I believe, 
 aome time during the eeaaion of 1372, when 
 he, having oooasion to come to my depart- 
 ment, to see me ab<mt some matter connected 
 with a public work in his oounty, 1 spoke to 
 him, aa being one of my best puUtioal frienda 
 from my own Provinoe, on the prospects of 
 the elaotoral oonteit that waa to Uke plaoe 
 during tha summer. 1 told him that the laat 
 eontest had been a severe one for me, in ao 
 far aa my email parse was eoncerned, and 
 that, of ooarae, my posittoa being more pro- 
 mineot now thaa it waa then, I waa afraid 
 that the clais-a or calls upon me wonld £ 
 atill greatar, and on that he remarked that it 
 would not be fair that the burden shonld all 
 fall aa my shouMen, but that oertainly I 
 ahoald be helped by my frienda That is the 
 only ooaveraatioa I evai had with Mr. Ab- 
 bott on that aubjeot and, of eonrae, it is one 
 of those oonversati'ms [ oould have had with 
 any other political friend anpportiag me in 
 Parliament or snpoorting me ont of Parlia- 
 ment^ and I may aild that Mr. Abbott never 
 apoke to me about the Paciio Railway, or the 
 Bills that wtre before the House, and he 
 never naked my support of any of the mea- 
 sures that were then before the Hoose, or 
 asked whether I would support or oppose 
 them. In oooaequ>'noe of the oonversation I 
 had with Sir Oenr,iC Cartier, aa I stated jnat 
 now, during the eloetions of IS7'- I reooivod 
 from Sir (Itor^-e Carlier, by the haiiila of Sir 
 llu.'li A\l«", »l.\0Al, I.- (-.ir ll..rtlil ..1,>U 
 
 Sir Oaorga raqaeetad no to aend a farther 
 amonattoSir John A. Maodonald of $10, 
 000, and $10,000 to Mr. Langevia, and 
 $30,000 to tha Central Committee of Keo. 
 tiana, and the three snins laat mentiaoed in 
 the memorandum appended to the letter 
 were then addsd M it by Sir George, I ae- 
 oordingly remitted $10,000 to Sir John Mao- 
 donald; $30,000 to the Central (lomauttee, 
 and left $10,000 with Mr. Abbott for Mr. 
 Lange/in, to be paid npon getting from that 
 gentleman a reoeipt for it. In Sir George 
 Gartier'a letter of the 30th July, namely, the 
 one to which I have secondly alluilod, Uiere 
 ia an nodertaking on the part of Sir George 
 that my advance, wonld bo paid bark to me. 
 1 did not see well from what aource this mo. 
 ney oould be repaid, but Sir Qeorge held ont 
 aomo hnpo that hia political frienda wonld 
 oontribute to make it up. Beyond this there 
 was nothing that 1 can recall aa to the man- 
 ni-i nt payment. On leaving Sir lleorse, I 
 .SAID ro MR. ABBOT r THAT I SAW NO 
 I'lKSSlUILlTY OP MY HKVKR BEIK 
 RKPAll) THESB CONTIIIHIJTIONS. 
 NEIVHKR THAN NOR O.V ANV OTHER 
 O !C\<IO.V HAD I AVY COUIIESPON- 
 DENi!E WITH SIR OKOROK AsrOTHE 
 REPAYMENT OP THESE 8UM.i. 
 
 "I left Montreal for Newfoundland I 
 think early in August, aud only returned at 
 the end uf the month; and except by infre- 
 quent telegrams I had no oommmunioatiou 
 with Montreal during that time. Among 
 those telegrams 1 had two from Ur. Abbott, 
 informing me that Sir George wanted $20,000 
 more for the General Committee, and $10,- 
 000 lor Sir John. I anthoriaed Ur. Abbott 
 to piy over theee sums, and plaaed the mo- 
 ney at hia diapoaal. 
 
 " I think I also received telegrama Ircni 
 Mr. Abbott telling me that Mr. Langevin 
 wonld aign no reoeipt, and aaking my author- 
 ity to haad him tha money withont any re- 
 oeipt 
 
 " Thia last telegram did not reach me in 
 time to be aoted upon, and 1 have ainoe 
 learned from Mr. Aobott that Ur. Langevin 
 gave no reoeijat 
 
 " I heard of Sir George'a di^feat while in 
 Nora Sootia on my way back. In this way 
 on my ratnra I found that the limihi of pay- 
 ments whioh I had first agreed to had been 
 exceeded, and with snMequent advanoea 
 they finally stood aa foUowa :— 
 
 " To Sir Oeoige ". Cartiar'a Com- 
 mittee $85,000 
 
 "To Hon. Sir .loan A. Maodosiald 
 towards elactioa axpeosea in Oataria 46,000 
 
 " To Hoa. H. L. Langavia to- 
 warda elaotoral expeaaes m Qaebao 32,000 
 
 $162,600 
 
 " I also paid, for the aaaiatanoa of other 
 frienda ot my own in oonneotioa with the 
 elections, between $16,000 and $17,000." 
 
 The following were aome of tha eommnni- 
 oationa whioh passed, in Allan's abaence, be- 
 tsreen Maodonald and Cartier and Abbott: — 
 
 On the 24th of August Sir Oeorga E. Car- 
 tier wiitea thus to Mr. Abbott :— 
 
 "In the abaenoe of Sir Hugh Allaa, I shall 
 be obliged by your supplying the Central 
 Comoiittea with a further sum of twenty 
 thousand dollars, upon the same oonditions 
 as the amount written by me at the foot of 
 my letter to Sir Hugh Allan of the 30th 
 ultimo, 
 
 "QioiMi E. OaanEB. 
 
 " P S.— Please also aend Sir John A. Mao- 
 donald ten thonsaad doUaia mora on tha 
 sava tonne." 
 
 Tha Central Committee, in a nunaer l,oa 
 moat methodical and bnsiaeaa-like^ rttum a 
 formal reaaipi aa followi; — 
 
 "Received from Sir Hugh Allaa, by the 
 heads af Mr. Abbott, twenty thonsaad dot- 
 Ian for general election pnrpoaea, to be ar- 
 ranged hereafter, according to the terms of 
 theletter of Sir George K Cartier, of the 
 date 3eth of July, and uacoordaaoe with the 
 request contained in hia letter of the 24th 
 instant. 
 
 "MoNTRxai., 2rith August, 1872. 
 (Signed) "J. U Biavdrt. 
 
 VlaifRV RTA^BNrJI. 
 
 "L BaroUKNAT. "P. 8. MuErnv." 
 
 Mr. Starnee was the custodian of the oele 
 brated "sealed packet;" Mr. Boaudry was 
 
 one ot tho thirtoon Pacific '■ ilirnctirA ;" Mr. 
 
 that an anijairy maat still be granted. 
 Aoeoidingly, an the Ith af April Sir John 
 A, Maodonald himaelf moved : — 
 
 "That a Select Committee of five mem. 
 hers, of whom the mover ahall not be one, 
 be appointed to inquire into oertain allega- 
 tions and matters connected with the char, 
 ter granted to the Canadian Pacific Railway 
 Company, with power to senil for peiaons, 
 papers, aod records, and ait alter the proro- 
 gation of Parliament" 
 
 The Committee were ehosen by a poll of 
 the House, and oonsiated of Measra. I'jtlward 
 Blske and A. A. Dorion (Oppooition), and 
 Messrs. Hillyard Cameron, Jaa. McDonald, 
 and Blaocbet (Ministerialist). 
 
 A Scandal Within a Scandal. 
 
 It has since transpired that Mr. Hillyard 
 Cameron, who waa cboaen Chairman 
 of the Committee, waa actually, at the 
 time, nnder heavy peonniary obligations 
 to Sir Hugh Allan fov a diacount 
 obtained for him while the PaciHo Charter 
 negotiations were pending by Sir John A. 
 Maodonald. In Sir John A. Maodonald'a evi- 
 dence this faot ia depoaed to aa followa : — 
 
 The oirenmstance waa aimply thia :— Mr. 
 Cameron told me— we are very great friends 
 
 that he waa very hardap, and that he 
 wanted aome money and waa anxious to get 
 a discount, ami he asked me if Ivould drop a 
 line to Sir IIxmK Allan aekiny kim to y<^ kie 
 note disfoi^nieA by the Uert-kanUi Bank. I 
 vrote down a»kin^ Sir Hugk t* tue kit in- 
 Jlftence to get m ditemtnt/or Mr. Cnmeron for 
 $5,000, on./ kt ijot that disrount. That ia all 
 I know about it That was in January, be- 
 fore thia Inveatigatioa Committee, aa it la 
 called, waa thought of. Parliament did not 
 meet until March. Mr. Hantington did not 
 make hia oharge against the Government re- 
 speotug tha Pacific Railway until April, and 
 suoh an idea as the oharge being made or the 
 Committee being atmck, had oertainly not 
 occurred on the 23rd January, 187.1." 
 
 The note waa renewed m/ler Mr. 
 Cameroa kad aeoepted the Ohair- 
 manahip ol the Committee. 
 
 The Oaths Bill 
 
 During tha diaenaaioa ariaiog ont of the ap- 
 pointment of the Committee, it waa suggested 
 by Hon. Mr. Dorioa that power ahonid be 
 given them by BU to take the evidence nn- 
 der oath. The propoaal met Ike uaaa>iiiou< 
 apprtfal I' the: Uoute. The fact that, in 1808, 
 a aimilar Bill had sjilvea precisely the same 
 powera to the Seaate, and that the Legiala- 
 ture ot Ontario kad ainoe passed an Act 
 withont dispute or question conferring on its 
 Committees the same privileges, prevented 
 a [suspicion --n^ssing the minds of members 
 that any obstacle to the mewure now pro- 
 posed oonld poasibly be raised. Sir Jno. A. 
 Maodonald alone suggeated a diffioulty. He 
 held that, in the terma of the Confederation 
 Act, the Parliament of Canada had not au- 
 thority to pass the measora. His views wore 
 eontrovertod by Mr. Hillyard Oameroa— who, 
 at the iustanee of the Committee, introduced 
 the Bill —aud by other leading lawyers. Sir 
 Jno. A. Mtodonald, therefore, yielded his 
 objeetioB for the moment, aod the 
 CammoBS paased the BiU with the 
 haste Beaded la a Batter of grave 
 orgeaoy. 
 
 The Conspiracy of Delay. 
 
 In the Senate it lingered. Mr. 
 Campbell, the Government leader, at first 
 profeoaed that it waa none of his 
 huaineaa, but at length he moved iti^aecond 
 reading. The Bill had been intmdaced into 
 the Oommonii on the 18th of April, waa 
 printed, diatributed amongst membere, ami 
 pawed thrau,ih all its stages aud sent up to 
 the Senate on the2lat Butit waa the 2!)tb, 
 or eii/kt ifjy* (^leriimr'h,hoton the Senate in- 
 formed the I<ower Chamber that " their 
 U moura had a){ree i to the I' 'L ' Nothing 
 now wu nee lei lilt tho 11 iy» Aiaop.t. But 
 
 not be reolsted, ami t le d.>ouiueuts in ques- 
 tion, telling the whole story ef Allau'a die 
 g K-eful intrigues, wore impounded a«)oorr' 
 uigly. When ultimately pulilishiil, tl' 
 Okoteof Sir John A. MacdonaM's alarm c 
 the produotto'-. of onplos in the lloui.e was 
 ouly toe obnoue. i:o a'ternai-ua aaa 
 te a<lmit ta tha C<immiaaiaB Uiml tke.e 
 a-ry doeumentt Ao-f tte^n phlred m 
 hu, kaitdi bj Mr (1. W. Me Mullen 
 BKKDRE A/! Aik/ fmlly given Allan tke eon- 
 trill tf tke Pne\/ic < horler. It waa so clearly 
 evident that the action of the ( 'einmittee 
 might In greatly impeded, if not thwartetl 
 altogether, shonld tha House not be in aea- 
 sion when the inv^iugalion waa prooreding, 
 that oa tha 10th of May Mr. Loriea moved 
 as followa : — 
 
 " That inaamuoh aa the Committee will 
 have no power either to enfoeoe the attend- 
 anue of witneaacs, or to compel thom when 
 in attendance to give testimony, without the 
 action of the House, it la essential to tho pro- 
 per Dondttot of the investigation that it should 
 be proieonted under cironmstanrcs that will 
 admit of the prompt oioruise of the authority 
 of the House, and that it is therefore neoes. 
 sary the Uouae should ait on the day te whioh 
 the C'l'mmittee haa leave to adjimm." 
 
 By I'lA yeaa to 101 nays thia waa alao lost 
 Ultimately the Ilonso, on the S3rd of May, 
 adjourned to the I3tli of August, then to 
 receive the report of the Oommittoe. 
 
 The Disallowance Trick. 
 
 On the 2uil of July the Committee met at 
 Moutroal, A great crowd had aasemMcd In 
 the Court tlouae to watch tlie prooewliugs. 
 Ouce more Sir Francis llincks was called to 
 the itand. But not to testify. The Chair- 
 man instead anuouaocd that the Oaths to 
 Witneaaes BJI had been disallowed, nudor the 
 advice of the Imperial l^w OlUcors. Meesra. 
 Dorion and Blake argued fiat as the taking 
 of evidence on oath waa no part of their origi- 
 nal instmctiona, but only a proviaioa pr«. 
 snmably ooAtiugent npon the Oatha Bill be- 
 ing valid, they should proceed withoat the 
 oath. Bat tha three Miniaterial partiaaaa 
 ware not a* be expected to baffle thna tha 
 deep-laid plot of their chief, and aarrled a 
 motion to report the state of alTaira to tha 
 HoBsa at its neeting again on tha 13th o( 
 Angnat 
 
 That the disallowance of the Oaths Bill waa 
 deliberately devised cannot be doabted. 
 The nsnal practice ia for the afatutea 
 paased during the aeasion to be printed, 
 bound, and sent home officially certified, per- 
 haps three or four months after the Houaa 
 haa risen; and all Acta. nnlaes specially reeerv- 
 ed, hare the full force of law if not diaallaw- 
 ed within two years. So that, but for Sir 
 Jno. A. Masdonald'a action, tha Oatha Bill 
 woLld have been in full operation, and any 
 one iXHnmitting perjury wonld have been 
 liable to anlTer all the penalties. But assam- 
 ing that the donbta expreaaad by Sir John 
 A. Maodonald were well founded, but 
 that he hail desired to have all donbta 
 romored or legislation obtaiaed to anpply tha 
 defect in tha Confederation Act which waa 
 alleged to prevent tha House of Commona 
 passing such a Bill ! We have seen that It 
 was introduced on the 18th of April, aud 
 there waa nothing to prevent it aa every one 
 waa agreed with regard to ita ox- 
 pedieaoy, from becoming law on the 20th 
 or, aa that day was Sunday, tha 
 2lat Had it then been mailed to England, 
 there wonld have been time before the Houaa 
 rose on tho '-'Ird of May to receive the opin- 
 ion Cit the l.iw Oinoers of the C< -.wn, and if 
 that ware unfavourable to the Bill, to paaa an 
 addraaa asking for the Imiierial Irgia- 
 lation needed to remedy the dufect in tne 
 Britiah North America Act But Parliament 
 waa allowed to separate, and it waa so con- 
 trived, as wo have acen, that nothing ahould 
 be known of the disallowanoe uuUi the Com- 
 mittee had met, and its majority were ready 
 to put the fiiiiahing stroke to the work ot 
 baflling the course of justice. 
 
 Disclosures. 
 
 The pnblioation of Sir Hugh Allan'a letten, 
 of Mr. McMul'sn'sstatament, and ef the tele- 
 grams, drafts, and other doeamenta whioh 
 had passed between the Ministers and Sir 
 Hugh or Mr. Abbott, followed. The moat 
 sceptical oould not now fail to be convinced; 
 the Indignation of the country waa fairly 
 aroassd; and this feeling waa intensified bythe 
 annonnoeiiient that the lnoriminate<l Minis- 
 tors would a'lviae Lord DufTerin to prorogue 
 Parliam-mt on the I3lb of August, withont 
 allowing it to discuss tho situatiou, and issue 
 a lloyal Cooiuiiasion to sopi--wIe the oaist- 
 ing Parliamentary l 'nmmittoe. 
 
 Parliamuit Turned Out of 
 
" m»guitu<lo inil iiniiorlancislothB people 
 " oi tha Djiniuioii." ThU wu dufwtad 
 hj the niirruv niaj<irity of tan 
 ratM, the numbm biiing, Yett 
 76, Stj* 85. And thU rcialt wu 
 only gained by an uinrance privateW 
 oonrejredto Hiiiitterial membera, and al- 
 tarwardi embudied in a furmal reiolution, 
 that the lubiidy granted ' ' »)u»M iujI tn- 
 ** treOH Iht p-t*etU rate of taxatutn" 
 
 Secret Motiues, 
 
 The reokleai and lavUh agreement en- 
 tered into, UNAiiKiD, by the QuTeniment 
 of Canada waa at the time inexplicable, 
 but future eronta aerred to aoWe the 
 myitery. In 1807 the Hon. Wm. McDoa- 
 gijl, then a member of Sir John A. Mao- 
 dooald'a Oorernment, publicly boaitad 
 lliat tha Intero'jlonial Railiray— leaa than 
 MO milei In length— would gire the Min- 
 btry "A TEN YEARS' LEASE OF 
 POWER;" and the only poaaible inter- 
 pretation of the oonduot of tho lame Ad- 
 alnlatration in furoing doim the thioata 
 of their own Buppartera a btrgain no one 
 had aaked them te make, waa to be found 
 in a renewed determination to repeat 
 with the Canadian Paoifio, and on a more 
 gigaatio ioale, the experiment partially 
 mooeaaful in tha caaa of the Intercolonial. 
 
 Sir Johu A. Hacdonald had only been 
 able to hold ofBoe in 1867 by .'lUe oriaa 
 and by the diaruptlon of the Liberal party 
 eaoaad by tha aacauion of anma of their lead- 
 en to the ranka of the enemy. The riola- 
 tions of the Ounatitution in the ciue of 
 Nora Scotia; tha grots bungling, amount- 
 ing M nearly as pouible to treason, ;j the 
 aoquiaition of tha North-west Territories; 
 the triflinj with grave public interests in 
 themttterof the "National policy;" a 
 aeries of outrages on the Indeper jonce of 
 Parliament; the enormous incr< ae In the 
 expenditure, and a growing -..eroeption of 
 the character of the jugi^le in which the 
 '67 Coalition had originated, all throtten- 
 ed daoger to the Oovommont, when, in 
 1872, an appeal should have to bo made 
 to the country. At that time, too, the 
 Premier waa at Washington, aecretlj be- 
 traying the interestaof Canada to a foreign 
 ■atioa, and well know what a (torm of 
 iadignstion his conduct would esoita when 
 that transaction ahould MB^j^U^t, 
 The local elections in OauK^Bf/ffKlif 
 m a roTorsal, to a great extaMTWtheTote 
 •( 1867, and tha " Patent OamUnatiDn," 
 aa imitation of the CoalitiOB at Ottawa, 
 vaa already doomed. Ontario threatened 
 a hostile and independent majority in the 
 House of Commons, in placn of a sorrM'j 
 minority; Quebec was fast disentan)!iiu; 
 herself from Cartiar's domination, aild the 
 Maritime Prorinces were hold by too \m- 
 certain a tennra to be relied upon. Tlius 
 it was that, watching his opportunity, S.r 
 John A. Macdouald, in the specious form 
 of terms of union with British Columhi,i, 
 obtained possession of the huge bribe villi 
 which he wi» to procure for himself or 
 liis pirty, it ffiifht be, a ton, or twenty, 
 or thirty years' leaie of power. 
 
 But it waa u-JOOdsary ti his purpose that 
 his c )ntrol over tUo railway, with all ita 
 advantages and accessories, should be 
 abeoluto. IIo, and he aloiio, must hive 
 the outiro disposal of its fat contracts auJ 
 the enormous patronage such an enter- 
 prise involved. The pledge to build the 
 ntilway within a limited time, rasli'y 
 agreed to by ]*Lirliameut, gave him tlto 
 {ilaualble excuse f>)r iiisiatlng on heiiiir 
 vostod withtho moat extriiordluarypiiwt>M, 
 osteusihly for the fullilinont of the terma 
 in the time and maimer iigreed upon. 
 
 1 1 The Usurpation Act 
 
 Thia measure, introduced in the .lessi.ju 
 of ld72 to give c.'Tect to the terms of uiiiMn 
 eo far as tho rAllway w.i.'i c moerno'l, w.ti 
 of a ''hurvi*'?'' nntiiriilleled in the hiatory 
 of reaponslble novemnient. It haiul- 
 ed over everything to the hands of the 
 Governor in Council— in other words, the 
 Prime Minister. It empowered him tu 
 raise a loin of 30,i)0(),(XK) of dollars .\s a 
 money subsidy fur the road. It auth r- 
 txed him ti^ appropriate one hundred im!- 
 lions of ar:rea of the public lands, alloiti-ii^ 
 one moiety to the coiistruoting c im- 
 pauy, and retaining the other moloty 
 to be dispoaed of in such a 
 manner as might be aj^eed 
 upon beiween the Oovernment anl the 
 Company. It enabled him to give to 
 arhomioever he pleased the contract to 
 
 " uij; aiut iiiftnfttrf. Thry had, however, ap 
 " plied for AcM of looorporatioD ioHtead of 
 " to the Qoreniment, and tfaei* applioatiens 
 *' wouM, of ooarse, go to the U til way Oom- 
 "mUtea," Again, on the 2laA of May, 1872 
 Bir Qeorga E. Oartier, ones more alluding to 
 the aama topic, said:— "There were now va* 
 ** riouB oompaoiae aeekiiig iooorpnratioo. 
 " Th^ policy of Iht Qjw.rvnu^ wmtd hf t^ 
 ** favour th* incorporation of all IhoM Com- 
 " panics, with a view to facilitate aa much aa 
 ** p laaible, not only tha building of the Paoi* 
 ** no Bailway, but the neoeaaary branchea." 
 Oa tb« 2ath of May Sir George waa 
 even more precise in hia reaaona for 
 inaertiog the olause ander debate. On that 
 oooaaion he urged that its object waa *' to 
 " prfvettt tlie Qocrnmenl being placed at the 
 ** mercy of anyone company or anwtgama- 
 " lion of ciAnpania, which, atthowjh they 
 " miijht appear to be hoetite in their ohjecltt 
 " wouit l>e rtalty working to ace mtptiak the 
 " same entt. The olatiae had lieen adopted 
 " after oarafol deliberation, and it waa upon 
 " it that the Ooveramont hoped to make a 
 " good and economical arrangemeni" That 
 every allnaion made by the Miniater in 
 charge of the BUI, apaakmg for and in the 
 
 Sreacnce of hia oolleagnea, to thia mnoh de- 
 atad nneatinn, and the laegnage of the 
 Prime Mioiater bimaalf, all ooarayed or were 
 intended to convey the impreaaion that they 
 desired above all tniaga to protect the conntry 
 against monopoly and to enooaraga aompe* 
 tition. And ao they indnced the Honae to 
 agree to the claeae which enabled them to 
 oarry out their design of ignoring oompeti. 
 tien altogether, and oreating a monopoly for 
 themaelvee. In one word, thia olanae was 
 tha maiatpring of the maehioary they had 
 aet in motion in 1871, and need afterwards 
 with nch thamelaai immorality in 1872. 
 
 The Americana Appear on The 
 Scene. 
 
 For th^ grand act of csrraptton they had 
 long been preparing. The terms of anion 
 with Britiah Colambia ware agreed to in the 
 early part of 1S71. In July of that year, 
 certain American gentlemen, who were also 
 promotera of or iatareeted in the Northern 
 Paoifio Uailway, a rival line, viaited Ottawa, 
 and made propoaala toaohing the conatniction 
 of the raciSe Railway. They aaw Sir Frau 
 oia Hlnoks and Sir John A, Macdonald. No 
 definite onooaragement waa given to tl 3m at 
 the time, but they left, in the handa of the 
 Mini^tera, a liat of capitaliatt in the United 
 States willing to oo-operate in thia 
 scheme. Amongst them were General Osas, 
 Mr. Scott, of Philadelphia, Mr. 0. A. Smith, 
 and Mr. O. W. MoMnllen, of Chicago. 
 These gentlemen propoaed to open eommanl. 
 cationa with Sir Hagh Allan, but were dieeovT' 
 ftj.-^f by Sir Francie H \neke from Uikmg thai 
 'a/ep. Sir Franoia, howei er, immediately qflcT' 
 vards evmmunicated hinuetfwUh SirlfughAh 
 Ian, and gave Sir Hagh the namea of the 
 Americana above referred to. He alee went 
 to New Terk, and andaavoared to indace cer- 
 tain of the parties reaident there to join in 
 the enterpriae. Sir Bnxh Allan entered into 
 oorre«pcQ(leaco uii.a the Aoiericaut, and 
 viaited Ottawa with them in October, 1871, 
 where they had an interview with the fall 
 Cabinet, but without any result It waa 
 then evident, however, that Sir Georce E. 
 Oartier looked with diafavoar on Sir Hugh 
 Allan'a ioUuence in the mattei^ owing to Sir 
 I Hugh being the promoter of other railwaya 
 j in competition with the Grand Trunk, 
 ! of which line Sir George E. Car' ' r 
 ' waa aolicttor. Thia has to be borne In min 1 
 } in connection with whit occurred afte ■• 
 I wards. The issne of the negotiations bi- 
 tweeo Sir Hugh Allan and hia American con- 
 I feileratea waa an agreement in wr- ing on the 
 23rd of December, 18T1, of whic'.. the follow- 
 ing ia an extract : — 
 
 " Nkw York. Deo. aSrd, IS71. 
 
 "The nnderaignei hereby agree to ataociate 
 themaelvea together for the following pnr- 
 posea, to wit; 
 
 "/'irj*^ —To form tho Canada Paoitic Rail- 
 way Company, under a charter anbatantially 
 as agreed npon, and subject to such moditiea- 
 tion or chacgea aa ahall be hereaf cer mntitally 
 assented to; whi'^h charter ia to be procured 
 by Meaara, Sir Hugh Allan, Charles M. 
 Smith, and George W. Mc\lullen from the 
 Parliament of Canada, at its approaching 
 aession. 'Vij. _ ;vi„^ 
 
 ".iVfo*?— Under and by anthority of said 
 charter, the nuderaianed pmpoae to conatruot 
 the aaid railway. For theae^iurpoaoe, we, 
 the nnderaitrned, each for hlmnclf, and not 
 for the others, agree to aubacribe, in aH, the 
 aam of ten millions of dollara to the capital 
 stock of the aald Canada Pacific Railway 
 Compauy. 
 
 " And auch other* at they may associate 
 with them ahall aaLicrlba tive millions five 
 hundred thoaaand dollara (t.'>,500,000), and 
 Sir Hugh Allan, Charles M. Smith, and 
 George W. MoMoUen, and snob othera at 
 they may aaaociatj with them, ahall enh- 
 Acribe foar millions five handred thoaaand 
 dollara (|«..'ia J,000|. Anil it ia further agreed 
 that the above namod patties who ahall aub. 
 acribe for lire mllliona five hundred thousand 
 dollara of aald e,,ook, ahall pay in the aum of 
 ten per oentum on the whole ten milltona of 
 dolUr* of atoak to be subscribed as aforeuid. 
 
 . Bubl >;t ti' the ,* hiitu conilltl'ina "f pi4yiiicut 
 
 and relundlog with intareat at are therein 
 set forth, 
 
 " And ws hereby authorise the said Com- 
 mittee to take auch c thcr action for aa aa 
 they may deem neotaaary in the preio'ees 
 oontiatent with the general terma of the ooa- 
 traot of Daiembar 2.1, 1871, and aa moaitled 
 hereby. 
 
 " New York, March 23th, 1872. 
 
 " (Signed) Jay Cooke A Co., J. Oregnry 
 Suith, B. P. Cheney for seU and W. J, 
 Fargo, R D. Rioe, Thot. H OanfleM, A U. 
 Bamey, O W. Caaa, Daniel HcLar<'>\, by J. 
 W. Ellia, Fredenok BiUingt, Wm. Windowa, 
 H. R Ptyion, F. B. Cauda, J. Oanda, 
 Samuel Witkison, W. B. Ogden, Walter 
 Hinokuitii, Hnih Allan, Charlca Mather 
 Smith, George W. MoMulten." 
 
 It will be notioad, in anawor to the pretence 
 of the Government that they were ignorant 
 of Allan'a negotiationa, that the precise 
 terms as to the land and money snbsidy em- 
 bodied in the Pacific Railway Act are those 
 named in the above document, which had 
 clearly resnltad from aotoal negotiations be- 
 tween the parties above named and the Oo- 
 vemment of Canada. 
 
 The Competitors 
 
 In the seaaionof 1872 two oompaniea applied 
 tor Acta of Inaorporatioa—the "Inter- 
 Ojeanio,", promoted by Senator Maophertoo, 
 tha " Canada Padfio," by Sir Hn{^ Allan 
 ■.id hia Araerioaa alliea. Tha lanea of 
 foreignen were^ however, omitted 'rem the 
 Canada Pacific Bni, and both th-.t Bill and 
 the "Inter Ooeanio" Bill were ostensibly pro- 
 moted by Canadians »t ttanding and capital 
 from varions parts of tha Domiaion. Sir 
 George E. Cartiar's speeches, before qaoted, 
 were designsd to convey the irapreesion that 
 the Govemment favoured oompetition, and 
 desired only to guard against the amalgama- 
 tion of theae two great organizations, which 
 might result in a too poweifal manopoly. 
 No obttruotion wai therefore oflered to 
 either of the Bills. However, Sir Hugh 
 Allan revived from hit American frienda the 
 um of $10,000, which he represented to be 
 neoeaaary for engineering hia tchome 
 through the Legislatare. The aotnal ex 
 peotRt were not more than from two to three 
 handred dollars. 
 
 The Plotters at Work 
 
 ImmediaUlj kfter the Oorernment 0*na- 
 dUn PAoifid RftUwAy Bill with itaextraordi- 
 Uftry powera wm puied, and Psrliament 
 had dupenedf Sir John A. Maodonald 
 began to torn ita proviaioua to aaeoant. 
 The MiaistrTf*|^eirpoeikiont6 be eztrealj 
 oritftoaL ifwaof the lait ioaporUnoe that 
 no miinnderataa Jing ahoold oeoar betweea 
 the Oorernment and Ur. Uaopheraoa, an 
 old, tried, and wealthy rapporter. It waa 
 alio important to coaoiUate Sir Hngh Allan, 
 who had been eagerly preanng for the eon< 
 tract, and who waa already enduigenng tho 
 aafety of Sir Oeorge B. Oartier'a aoat in Mon- 
 treal, by aaanmiog toward* Sir Oeorge an at* 
 fcibade of hottility. In Sir John A. Mao 
 donald'a erideace before the Commiasion he 
 ■aya, on thia point : — 
 
 " I had regretted to find that there had 
 been a sort of coolneia between Sir Hagh Al* 
 laa and Sir George Cirtier, and not only be- 
 tween Sir George Cartior and Sir Hagh Al- 
 lan but bctwoen Sir George and hia Lower 
 Oanaiian friendi. Tboy had g^it the idea 
 that Sir (ieorge waa not ao friendly as he 
 onght to have been to tbe Nortl- i Coloniza- 
 tion Koad, in which a large nur .jr of Lower 
 ('.iuadiana took great intereet, especially the 
 Montrealcra, and of which Sir Hugh Allan 
 waa Preeideot, and that, in fact, they had got 
 the improuina that hir George CAttier was 
 throwing cold water on all thoso onterprises 
 which Sir liugli Allan had entered upon; and 
 thia of coane, unleaa it waa removed, woald 
 be fatal to Sir George Oartier, and in Lower 
 Canada would lose his Parliamentary support, 
 land, of coarse, lose the (.ijvernment Parlia- 
 mentary support. The idea had been indus* 
 trionsly spread abroad that Sir George, aa 
 being the solicitor or counsel of the Grand 
 TrnnK Railway Company, was not anxioua 
 to promote any railway enterpriae that might 
 bo a riral competitor of that railway. This 
 waa so mnohtuo case, that a good doalof feel- 
 iD({ had been created respecting Sir George 
 (.'artier's euppoaod coarse of action, and that 
 a depntatioL had come to Ottawa to 
 press upin him, ao far aa they oonld, the ne* 
 oessity of tAking an active interest in the 
 Northern Cilonization Road and other rail- 
 waya, eztendin>r tho Northern Color#.ation 
 west, inclnding the Paoiflc Rft'!~«y, and that 
 the Montreal mterest, as represented by Sir 
 Hugh Allan, ahonld not be ignored." 
 
 Sir Hugh Operating on Oartier 
 
 Sir Hugh Allan, in the oorreapondenoe he 
 pnt in aa part of hia awom teatimoiy, ia 
 more expUoit as to hia relatione with Gar- 
 tier. Writing on Joly lat, 1872, to General 
 Omi^ he Mya :— 
 
 iviiiw.iy, al^>> 
 
 ' t . 'r>iriinli» an I di- 
 
 •fci«r .w.tli !Ur M^oubwHML Hir Hub 
 Allan wrote me that it waa trapaastble for 
 him to oome up, bat that Mr Abbott midht. 
 Mr. Abbott did oone up, and aaw Mr. Mso- 
 pheraon, and you will nad in the erldenoe 
 given by Mr. Maophsraon a memorandnm of 
 the suMtanoe of the oonferenoe between 
 these two gentUmeo. Tnak memorandnm I 
 beliere to be anbatantially eorreot from the 
 information that I hvl from both of tha 
 gentlemen who attended it. 
 
 " I left T'ironto to g^) to Kiogaton to at* 
 tend to my own eleotion. impressed with the 
 idea that there were no insuperabU difflj*!- 
 tiea in the way of atnalgamation. 
 
 IR^ llllll I IIUIU HIU 
 
 t!io t\t I lLtti:r<i v.liu:h Sir Ilunh h»i pr^i 
 diiiMMl thi« niiimlnif I rind thkt my r<*u<»i- 
 
 leotion ditfers a Uctle, but vtt materially, 
 from that of Sir Hugh I think that the 
 terma of the first letter, referring to the r\ll- 
 wa^, wore agreed to, but that it waa not 
 wntten or elgned at tbe first interriew; that 
 ta, we were leering, and, after the terms had 
 been agreed to, Sir Oeorge apoke to him 
 abont the money in the manner in which Sir 
 Hagh Allan has Indtoated, and that in the 
 
 ! afternoon the two lettera were aigned." 
 The following are the two lekteri referred 
 to by Ur. Abbotti— 
 
 I *'PriraU and OonfidentiaL 
 
 '* They had approaahed very nearly eaoh 
 other. There were only two pointe of differ- | 
 enoe. Tbe one waa the qnestion of the Preei- 
 denoy, and the other waa the number of Di- 
 rwjtora. 
 
 *' As reganls the Pretidenoy, Mr. Mao- 
 pherson always hrld to the samep^ition; 
 that he did n >t l<»ik forward to it himself, he 
 did not press his own claim for it in any way, 
 bnt he thought that Sir Uu^k Allan, from 
 his baring nnf^inaUy made thu arrangement | 
 with the Americans, if he wereplaoedin the 
 position of Prtuident, from hii acknowledged 
 wealth and influence, wonld have too mnoh 
 power on the B «rd, and that herniates-, 
 eroise that ^wer ia faroar of bringing in ^ 
 American oapitaL" 
 
 Mr. Maephereon, in hia eridenoe, aays:^ I 
 **The only matter at all personal to Sir 
 Hngh Allan and mvself waa tbe queation of 
 the Preaidency. Mr. AbbiU irished that I 
 wonld eoneent te the offi'W buing filled by 
 Sir Hugh Allan. I told him I wonld net aa- | 
 eent to it ia adranoe, but I eet apno elaim to 
 the office myaelt I thought it thonld be left | 
 to th ■) free ehoioe of the Directors if amalga- 
 mation should take plaoe." * 
 
 The Ministers had taken care^ too, that no ' 
 inconvenient prorlaiona of the election law 
 ehonld thwart their designs, and had reatated 
 atrenuonsly and snsoesafally propoaala to 
 hold the eleotiona in one day, and to tranafer 
 to the judgea the duty of trying eleotion pe- 
 titions— two of the miet eflfeotaal prerent- 
 ativea againat electoral oorruption. | 
 
 The Crisis Approaching. \ 
 
 Mattors ware now appriaahing a orisia. ' 
 Tae writd had been iaauid on the l>'>th, and 
 tho first etec'^ioQ t^ok plaos on the 2Uh of 
 July. Sir Juhn .V Maidonald thai deaoribea 
 the aituatiun :~ , 
 
 " When Sir George Cartler and I parted 
 in Ottawa, he t j go to Montreal and I te go 
 to ToroQto, of course, as lewling membere of 
 the Government, we were anxioaa for the 
 euooeaa of our Parliamentary anpportera at 
 the electiona, and I aaid to Sir Oeerge that ' 
 the aevereat oonteet wonld ba in Ontario, ' 
 where we might expect to reoeire all the ew- 
 poaitlon t^at the Ontario Oorernment eemld 
 gire to aa and to onr frienda, at the pella. / 
 Maiff tu him yen mwi trg <md rai»f mtchfurndt 
 »»you can to hrlp iw, tw are going to i^nm thf 
 ehi^f battle there, I mentioned the namea of 
 a tew friends to whom he might apply, and 
 tS'ir !{\tQh Al'an among the rf»t^ awl that, he 
 was inlereMfd in all tho^e entfrpri*es vhieh 
 thf Ootvmmfnt had hfe.x fortoardina. When, ! 
 therefore, I ascertained that Sir vie'trge had 
 pnt it all right with his friendd, I th^n com- 
 munitMed to my frirnds in Atoiitrfal, 9ir 
 Qt'orgf and Mr. Ahbott, Mating that I hoped 
 they uouUl not forget our neceAsUieJt; that they 
 would set to ra K tome /uH'U ( in Quebec )/or us 
 in Ontario. 
 
 John A Approaclies Allan. 
 
 The means by which a complete .•econcilia- 
 tion was ultimately efTucte*! between Sir 
 George E Cartier and Sir Hugh Allan waa a 
 telegram sent by Sir John A. Maodonald to 
 Cartier on Jnly 'Jiith, IbT'i, in the following 
 terms: — 
 
 "Have seen Macpherson. He has no per* 
 Bonal ambition, but cannot, iujastioe to On- 
 tario, concede any preference to Qaet>ec in 
 the matter of the Presidency, or in any other 
 particular. He says the quoition about the 
 Presidency ahould be left to the Board 
 I Un'ter thene rire.umitanrfM, / authorize you to 
 ' i^ixure Allan that the induence of the Qwrn- 
 1 TO. ( will he ejrerrited to eecure him the pontion 
 ' of t rejtiflent. The other terma to be aa 
 I agreed on between Uacpberaon and Abbott. 
 Tlie whole, nmfter to be hejU quiet until after 
 'the, tUc'Uc. Then the two gentlemen to 
 moot the Privy Council at Ottawa and scttl 
 tho terms of a proviaioDat agreement. Tht* 
 ' i* the only practical Bolation of the diffionl- 
 ' ty, and should ba accepted at onoe by Al- 
 ' Ian,'' 
 
 I The Final Bargain, 
 
 I Ou the 29^h of July Sir Hagh 4||lan re- 
 
 I oeired a message from Oartier asking him 
 
 I (Allan) to call on tbe following day. Sir 
 
 I Hugh accordingly went, aooompanied by Mr. 
 
 • Abbott, hia confidential adriser and aoUoi- 
 
 r, and alao a member of Parliament. Mr. 
 
 bbott, In his awom eridenoe before the 
 
 Oommiaaion, tellsthe atory ol thia memorable 
 
 Interriew :— 
 
 *'MoirrKi\L,30th Jnly, 1872. 
 
 **DiAR Sir Huqu,— The frienda of the 
 Oorernment will expect to be aasiated with 
 funds ia the pendmg eleotiona; and any 
 amoant which you, or your Company^ ahall 
 ad rauoe for that purpose, shall be reoouped 
 to yon. 
 
 "Amemorandamof immediate requirement* 
 ia below 
 
 "Tery truly yonra, 
 (Signed) "GBO. B. OARTIRR. 
 
 *' Sir Hugh Allao. 
 
 '* wow WAMTXD. 
 
 "Sir Jihn A. Maodonald |2fi,000 
 
 " Hon Mr. Langerin 1.^000 
 
 "SirG. E SO.OOO 
 
 "Sir J. A (aid'lj 10.000 
 
 " Hon. Mr. Uagerin (add'l) 10,000 
 
 "SlrO BO 30,000 
 
 "MoKTRBAL, 80th July, 1872. 
 
 " DiAR Sir Hooh,— t eoclooe von oepiee 
 of teUgrama from Sir Juhn A. Maodonald, 
 and with roferenoo to their oonteota 1 would 
 aay that in my opinion the Goremor in 
 CottBcil will approre of the amalgamation of 
 your Company with the Inter-Ooeanic Com- 
 pany, under the name of tbe Canadian Pa 
 oiHc Railway Company, the Provincial lioard 
 of the amalgiunated Company to be compoaed 
 of aeventeen meml>ers, of whom foar ahall 
 be named from the t*rovinoa of Quebec by 
 the Canada Paoitio Railway Company, four 
 from the Province of Oatarij by the Inter- 
 Oceanic Railway Company, and the remain- 
 der by the Government; thu amalgamated 
 Company t<> have the p<iwers specititd in the 
 tenth section of the Act incorporating the 
 Canada Pacific Company, and the agreement 
 of anulgamalion to be executed bt^twt;en the 
 Cumpaniee within two months from thia date 
 The Canada Paoitic (Company mi^ht take the 
 initiative in pnicnrtng the amalgamation, 
 and if the 1nt<er -Cue ante Company should not 
 execute ao agreement of amalgamation upon 
 anoh terms and within such limited time, I 
 think the oontemulated arrangements shsdid 
 be made with the Canada Paoifio Company 
 nnder ita eharter. 
 
 "Upon'the subieription and payment on ao- 
 oount of etook being made,aa reqnired by the 
 Act of last aeaaioa respecting the Canadian'' 
 Paoifio Railway, I have no doubt but that 
 the Goremor In Ooanoil will agree with tbe 
 Compaay for ^e oonatrut^tion and working 
 of tiae danadian Pacific Railway with such 
 branohee aa shall be agreed upon, and will 
 grant to the Company all such subeidiee and 
 asi.utanoe as tbey are empowered to do by 
 the Govemment Act I believe all the ad- 
 rantagea which the Oorernment Act em 
 powera tho Govemment to confer apnn any 
 Company will be required to enable the 
 works ^plated to be snooessfully car- 
 
 ried th: ,u^. , and I am convinced that they 
 will be accorded to the Company to be formed 
 by atnalgamation or to the Canada Pacific 
 Cfompany, aa the c.oae may be. 
 
 "1 wonld add that, aa 1 approve of the 
 meaiurea to which I have refoared in thia 
 letter, I ahall nae my beat endearoara to 
 have them carried into eQnol 
 
 "Tery truly youra, 
 (Signed! "GEO. E. CARTIER." 
 Sir John A. Mawlonald haa alleged that 
 on receiving intelhgence of these tranaao- 
 biona, he at once telegraphed repudiating the 
 letter referring to the railway, and even 
 ' offered, if neoeaaary, tu leave his own elec- 
 tion to go to Montreal and settle matters. 
 He put in aa evident;e the two following 
 ' telegrams, received from Oartier and Allan re* 
 I epeotively :— 
 
 I "KiNfWTOK, 31st July, 1S72. 
 
 I "(By Telegraph from Montreal) 
 
 1 "To Sir Joii^ A. M.u:i)o»ald : 
 
 " Have seen Sir ILt^h. He withdraws let 
 > ter written lou since yon mrke objection to it, 
 and relies for basis of arrangement on your 
 telegram to me of which I gave him copy. 
 
 " Matters go on well here. Hope they are 
 aame with you. Dt>a't think it is neoeaaary 
 for you to oome down here Saturday. I want 
 to be out of town on Sunday, bnt wilt remain 
 here if yon apeoially dt>«ire to aee me. An* 
 awer. 
 
 (Signed) "0. B. OARTIER." 
 
 "Ki:<tJ.sroN, July 31, 1372. 
 "(By Telagraph from Montreal.) 
 "Tn Sir Jourf A- MXcooicaLo: 
 
 "I hare Men Sir Geo. Oartimr ko>day. Tom 
 m\y retara my lexier or regard il u waste pa- 
 
 _..|| 1 lldW ((fK^Ood 
 Ki-w** nf tliM negittia 
 letter. 
 
 'The policy I ad 
 oessfuL The stron 
 oecdwl in ubtainiog 
 oontrol the eleotio 
 Government realise 
 were unwilling to 
 tbey opaned neiroti 
 
 "It is nnneoeasai 
 phaiea through wh 
 suit il that we yesi 
 ment b/ which,nn 
 OONOhlOSa, th 
 psny, of which ( ai 
 my viewj, to give c 
 J irity of the stock, 
 s^ formed the conti 
 the terms of the A 
 are |;{<).(»0U,00U in 
 aeres of land, with 
 privileges which oa 
 Aot,and they a^rea 
 power to encourage 
 doting the whole 
 The final contract i 
 sit weeks from tkii 
 
 "Oar opponents 
 the stock, and thi 
 jealoa^y and dialik 
 defeat, and on that 
 is ob igf^d to stlpuli 
 appear as a shareho 
 farmer ory of aelUo 
 ern PaeiHij, and eat 
 enoe. The. nkares t 
 American friend^ t 
 in my name/or sow 
 
 "We ahall i^t$( 
 of the whole capita 
 
 "I again ask yon 
 to take the redaoed 
 same proportiona a 
 previonaly. 
 
 "Aa ismv duty, 
 ( re plenty deairons 
 on toe amounts wil 
 deposited in the ha 
 security, but will l 
 aooQ as the work ii 
 ;>/fHrt« incurred in hj 
 point hitve been vcy 
 paid away about $2 
 put] at leifU S^KOOO 
 this month. I don't 
 tivi^h it, but / hope 
 
 " Of course this i 
 
 the snb'iJribera of t 
 
 you elect tn go on 
 
 will visit New Yorl 
 
 miath to anttle the 
 
 reply aa early aa co 
 
 " I am, yo 
 
 (Signed) 
 
 On the ninth if 
 
 addreuing the ele 
 
 after allndi 
 
 , and tke li 
 
 n the arrangementa 
 
 " Your repreaei 
 
 Cartier, coincides u 
 
 and in the basis el 
 
 baa agree! toreom 
 
 the Ministry on tt 
 
 ti on, they have bee 
 
 • • • / think rw 
 
 ting the contract pre 
 
 d.1 'the Got*e'ttm'nt 
 
 [ nason to be na 'i^fied 
 
 ' done, and I believ* 
 
 prored by all.' 
 
 And finally, on ti 
 
 wrote as follows :— 
 
 "Mos 
 
 '"Drar Mr. M 
 tUi time to have a 
 an what our friend 
 d0, but to-day I hai 
 Cau atating that h 
 for Chicago, ther 
 and the two are 
 Tbey say no meetln 
 y^fvember, which n 
 
 *U hope in ten cti 
 tract signed, and 
 after to go to Engis 
 build the lino. I h 
 gold which 1 want 
 still to p*y #13,500, 
 thing off. 
 
 "I will go to Nei 
 tract is suned, aa 
 would he glad to m< 
 
 (flig'ied) 
 '■a. W. McMvm.E: 
 "553 WaahingI 
 Sir Hagh had cle 
 own experience thi 
 pressed to hia corn 
 Piibraary : — "/ t}u 
 blind in the matter c 
 already puui $S,.'iOi 
 and cannot get one.' 
 
 Wo have thus 
 baarlng upon the 
 with the most ohai 
 tory of the whole pi 
 
 20;97H 
 
'fir Ilu^h h»i pru 
 rind th»t my rau«»l- 
 
 luk vil niktariBlly, 
 I khiok thftt the 
 Qrerring to the Mil- 
 it thftt it WM Dok 
 int tntenritfiTi thkt 
 after tha ftarmi hftd 
 9rg« Bpoke to him 
 Dftoner In wbioh Sir 
 »d, Aod thftt in the 
 wtntAgntd." 
 iwo letttri ref«md 
 
 ,30tb July, 1872. 
 
 The friendi of the 
 to be Mtiatfl'l with 
 Bleotioni; and any 
 ur Contpany, ihall 
 ■halt be reoonpcd 
 
 ledlate reqairemeaU 
 
 ). B, OARTIER, 
 
 tdl) 
 
 $25,000 
 
 ..., 15,000 
 
 so.ooo 
 
 10.000 
 
 .... 10,000 
 .... 30.000 
 
 ,ii<! I UN* jtr.icood to uifiirtn y«Mi nf the pru- 
 ,^i^Ma nf tl>«* neiiotiatiou liitoa the (Ute of my 
 lat'^r 
 
 SOthJuly, 1872. 
 
 t enoloM von oopiea 
 ^uho A. Maodoaald. 
 iir oonteDka 1 woald 
 a tha QorarBor in 
 [he ama1gamati<» of 
 iDterOueanio Com- 
 f the Oaaadian Pa 
 he ProTincial Board 
 Mny to be compoted 
 if whom foar ahalt 
 vino4 of Q'lebeo by 
 ray Company, four 
 Qtari<) by the Inter' 
 ly, and the remain 
 :; Ihti amalff&mated 
 vert apecitiia in the 
 ct incorporating the 
 , and the agreemeut 
 :ecuted bi-tArLen the 
 onthi from this date 
 )any mi^ht tJtke the 
 the am it^am ition, 
 Jompiny ihould not 
 amalgamaticm npfm 
 loh limited time, I 
 rrangements ihsdld 
 da Pafii6o Company 
 
 and payment on ao- 
 a,aa reqaijrwd by tha 
 rting the Canadian' 
 no donbt but that 
 will agree with the 
 intion and working 
 Railway with >nch 
 ■aed npoa, and will 
 
 Ruch eabeidiea and 
 tnpowered to do by 
 
 belioTe all the ad- 
 iTernment Act em 
 to confer np-in any 
 lired to enable the 
 be tncoesafnlly car- 
 invinced that they 
 mpany to be formed 
 he Canada Paoifio 
 ay be. 
 
 1 approre of the 
 refeLTed in Uiie 
 8t endeaToan to 
 flnot 
 
 E. CAUTIER." 
 kid hM aUeged that 
 of thete tr ansae - 
 hevl repudiating the 
 railiray, and even 
 ieava hii ovn elec- 
 1 settle matters. 
 
 the two following 
 lartier and Allan re* 
 
 3lBt July, IS72. 
 )m Montrojd. ) 
 
 SALD : 
 
 Tie withdraws let 
 irke objection to it, 
 raogement onyoar 
 [ gave him copy. 
 
 ra. Hope they are 
 .ink it is necessary 
 Saturday. I want 
 [ay, bat will remain 
 ■e to see me. An- 
 
 E. CARTIER." 
 
 JdlySl, 1S72. 
 m Montraftl. ) 
 
 Jartiw t«>day. Yo« 
 gard it ai waita pa- 
 
 "The policy I adopted has been qulta ana- 
 oessfuL Tha itrong French ioflabuoa I sue- 
 oeeilud in ubtainiog, hat prored sufB lient to 
 oontrol the eleationi; and as soon ai tha 
 Uovernment realiiad this fact, whieh thry 
 %i're anwilling to admit and slow to saa, 
 tbey opuned nafrotiations with rae. 
 
 "It ii anna<iessary to detail tha van^os 
 phates through which it passed, bat the ra- 
 
 suit is that we yeiterday signed an agree* 
 nwnfcby whioh.on CERTAIN MONKTAKY 
 00ND11IOS3, they agree to furm the Com- 
 ptny, of which I am to be PreAident, to suit 
 my viewi, to give me and my friends a ma- 
 J Hity of the tUtak, and to give the Company 
 %■> fnrmo 1 the contract to build the road, on 
 the tormi of the Act of Parliament, which 
 are ItO.OOO.OOU in cash, and 60 milliuns 
 atrea of Un<l, with all other advantages and 
 privileges which can ht given to ca under the 
 A<jt,and they a^ree to do everything tn th'^ir 
 power to cnuourage and assist the Ciimpany 
 (lutiog tha whole period of oonstraotion, 
 The tinat oontrsot is to be executed within 
 •ic weeki fr.)m this data— probablv lojner. 
 
 "Oaropponentiare to gat the minority of 
 thaitook, and they regard as with grt\\ 
 jcaloa^y and dislike in onBsa>)uenoa of thtir 
 d«f<*at, and on that aooonnt the Qorernment 
 is ob ignd to stipulate that no foreigner is to 
 appear at a shareholder, so as to avoid the 
 farmer cry of eelUog oarsalves to tha Korth- 
 ero Paeilc, and snoenmbing to ftiraign influ- 
 anoa. Tft^. iikarea takm hy you and irtr other 
 Anvriean /rKmi4t^ wUt tkerffore kavf t0 atcmi 
 JA my name for «>«< ihn*. 
 
 •* We shall t^t $6,000,000 of tha stoek oat 
 of the whole oapital of $10,000,000. 
 
 " I agftin ask yoa if the p«rtias are willing 
 to take the redaoad amnant of stock in tha 
 same proportions as tha amonnts signed for 
 prerionnly. 
 
 "As ismv dnty, I offer it to yon.hutthera 
 r ra plenty dealrons to gat it. Ten jrar cant, 
 on tne amoants will have to be pud op and 
 deposited in tha hands of the Gjvemment as 
 aeinirity, but will be retnraed, I think, as 
 soon aa the work is fully began Th* ^x- 
 prmfji ineurrfid in bringing thf mifUr to Mm 
 p.iinf have hrrn tvy grrtU. 1 have already 
 p\\ii awnr/ ahout $Z}0,0(>0, niul will fuiff to 
 /m.v at Irnit $'>(),0l}0 mnr^ hr/orf thf rn-l nf 
 thi^ inojUh. I don't hiow that ev^n that wiU 
 Hui<h it, but I hove no. 
 
 " Of oourse this will aU have to come from 
 the auVijribera of the $i>,000,000 stock. I! 
 you elect t«> go on with the aahsoription, i 
 wiU visit Nuw York about the end of this 
 month to settle the details with you. PleM« 
 reply as early as oonveniant 
 
 " I am, yours faithfully, 
 (Signed) "HUGH ALLAN." 
 
 On tha ninth •>( Angaat, Sir Hugh Allan 
 addressing tha elector* of Montreal, spoke 
 ^H, attar allnding to tha Oovamment 
 and the intarast of Lower Canada 
 n tha anrangeosonts:— 
 
 " Yoar representative, Sir Osorga E. 
 Cartier, coincides witk mf on all these points, 
 and in the basis af arrangements which ha 
 has agreoi to recimmmd tn bin confrtrfu in 
 the uinistry on the PaciHo Railroad ^nca- 
 lion, they have been oarafuUy kept in view. 
 • * • / ih'mk no tvn* nhouid 'z' lo^f %n gt't- 
 titi'j th^ rontr'iJ^t prfpar^d and m-jnfd a* mon 
 U.1 'tM Oorr'nm'Hi can mftet. / k'Xi'^ rvrry 
 j rtwon to V m'iMfjipd tpith whnt Sir Of vrgp hnA 
 ■ don^t and I believe the rcsalt will bo ap- 
 proved by »ll ' 
 
 And finally, on the 14th of Septe mlwr, he 
 wfcte as follows :— 
 
 "MoxTKE.iL, IG Sept., 1S72. 
 
 *"1>B.4R Mk. McMri.i.Bir,— 1 wanted at 
 t^ time to have a meeting in New York to 
 an what our frionda t<hera wt:re disposed to 
 do. but to-day I have a letter from (General 
 Cass stating that he is leaving New York 
 for Chicago, there to join Mr. Ogden, 
 and the two are going to Puget Sound. 
 They say no meeting can be iield till 15tb 
 y^vember, which will not do at all. 
 
 **'! hope in ten days or so to nave tbe con* 
 tract aigned, and would like immediately 
 after to go to Kogland to raiae tbe money to 
 build the lino. I have disbursed ^.Td.OOO in 
 gold which I want to ^t repaid. I have 
 atiil to pv $1.3,500, which will close every- 
 thing off. 
 
 "I will ^0 to New York aa soon as the con- 
 tract is signed, say about 7th October, and 
 would be gUd to meet you there at that time. 
 "Yours truly, 
 (Sig-ied) "HUaU ALLAN. 
 *a. W. M(Mim.«H, Erf-i,, 
 
 "553 Washington 8t , Chic%g3, Ills." 
 
 Sir Hugh had clearly b3en realising in hia 
 own experience th>i expectation he had ex- 
 pressed to his correspondenta on the 28th of 
 Pabruary : — "/ ih'mk you will hnty to go it 
 hlind in thf matter of ca-ih payiwiM-i, I have 
 'ttready paiii $S,'tOi), and hnve notavou^'htr 
 and cannot ij^t on**." 
 
 W» have thua docamentary avidanoa 
 bearing upon tha face of it, and detailing 
 witk the most charming frankness, the his- 
 tory of the whole prooaaiingi at plain and an- 
 
 from Sir ileor^n Car'.iar, liy tlie Imixia o( Sir 
 llu^h Allan, llft.OOO, h«(Htr l(ii|(h) ikiiiiK 
 
 that ha was in»trautad by Sir (Uoroe Cartier 
 to remit ma that aum for tbe election fund of 
 my region. Some time afterwards I received 
 n note from Sir Hugh Allan atsting that, on 
 my giving a receipt to Mr. Abb>t^ he (Ur. 
 Abb >tt) wa« initraote4l t'j deliver roe, also by 
 direction of Sir George Cartier, $10,000 addi- 
 tional for the same object, Aa I was aboat 
 leaving Ottawa for Qiiebeo, during tha aleo- 
 tiona, and underatanding that Sir Hugh Allan 
 had gnna to Newfonndland, I telegraphed 
 Mr. Abbott at Montreal to be kind enough to 
 meet me on board of tha Quebec boat at 
 Montreal, which he did. I told him there 
 that I bad received * note from Sir Hugh 
 Allan, aa I atated just now; that I had asked 
 no money fro n Sir Bogh; that the aam of 
 $19,000 that he had aent ma before came 
 from Sir Oeorga Cartier; that I had ander- 
 Btood from Sir Oaorge Cartier that any sum 
 of money that he would aend to ma would be 
 a portion of the anbaoriptiim of his wealthy 
 friends in Montrnkl; an I that, therefoia, I 
 could not for a moment think of giving a ra- 
 ouipt, or of receiving any loonoy on any oon- 
 ditiim whatever, and that if thia sum of $10,- 
 000 ivas not on the sams footing a« the $15,* 
 
 000 first sent I oould not reoeiva it. More- 
 over, if there had been any mianndantanding 
 about tha first snm, and it that first son was 
 not a pura gift on the part of anbsorlbers to 
 the fund, I wonld go down to (^aebea, and 
 wonld n turn that amount immediately. Mr. 
 Abbitt told ma that there muat be soma mis- 
 underatanding, that he wis nre that thera 
 mast be no intantion of putting any condition 
 or exacting any raonipt about thia money. Bo 
 w partad. Mr. Abbott sent ma aftarwarda 
 tha $10,000 without any oonditioo, wd, I 
 beliera, stated that his explanation to me was 
 tha proper ona. Some tima aftarwarda Sir 
 Q*orge Cartier, whom I had saan m pamaat 
 in Montreal, and who had asked ma in what 
 position I foand myself about tha eleotlonsin 
 my region, was informed by ma that beaidae 
 my own election and what I had contributed 
 personally to others. I was abort to the 
 amonnt of $7,500 or $7.t>0U. He told me he 
 thought his Kleotion Committee wonld have 
 to provide for that additioniU anm; and some 
 time afterward I received it with a note from 
 Sir Hugh Allao, stating that Hir George Car- 
 tier bvl instructed him to hand me that 
 amonnt. 1 never had any oonmunication on 
 this sabjaot with Sir Hugh AlUn beyond 
 what I have just stated. 
 
 Abbott's Improved Narratiue. 
 
 Mr. Abbott, however, puts the mttter a 
 little mora cletrly, and showa that the pay* 
 ment of a sum of $25,000 to Mr. Langevln 
 wu tbe distinct reaaU of a negotiation during 
 tha session of 1872 
 
 "Itia(^aita trne that I hsd a eonvarsa- 
 tion early m the Suasion with Mr. Langarln. Ha 
 mentioned ta me that at tha prerious general 
 alactioni he had been obliged to expand a 
 ^ ery oonaidarabla sam of money, not verr 
 large in ito^f, bfiMarga oomparatively, and 
 ha said ha did not t^uk it fau that tha bur- 
 den ai those aloottoit should rest e&tirely on 
 hiss. Ha said ha tlioaght he on^ht to hare a 
 share af any funds soDsoribed i*i Montreal 
 for election purposes to assist In Quebec, 
 which he had not h&d in prcriona elections, 
 and that they couM not expect much of a 
 anbacription from li'aeboo to ht^lp tbe Gov- 
 ernment. I agreed with him in thinking 
 I that it was UDUir that he should bear the 
 ' burden of the QaelKic elections, and I told 
 him that in so far as I could have any Inf. 
 
 1 enca in the matter, 1 wonld try that he should 
 I have a portion of any fund that should be 
 ' got up in Monti eal for general election pnr* 
 \ poses. Talking over matters, U eanui out in 
 I conrff motion thnl pr)habhj the tlectiom would 
 
 fOnt if% the Dintrl'l of Quchrc, irre/tptdi'^e of 
 I hijt oiTji, a sum o/ ■S:'i,000 or $.lO,i)00 1 told 
 him that oAfar «■* / coidl inffii^nr^ thf mattn: 
 I iroulJendeijrour to get something tike thnt 
 amount allotted fo th^ DiMrict of Queher, 
 That is what took place betwoftn Mr, Laoge- 
 ! via and myself. 1 did not at that timo make 
 , any allusion to tlie position of the Canada 
 ^ Pactfio and its charter. I know Mr. Lange- 
 viu was a atront; Lower Canadian, and I 
 J thought that Am /'ri''iul8 rrrre all in fatnur of 
 I arranging the Ptwiiir matter in such a way 
 that there thouhlhe ,firect communication with 
 the iteahoard at Qu'hec and Montreal, and I 
 auumed that in any matter in which ha 
 conld support the views of the Lower Cana- 
 . dians he would dn bo, and we did not wish 
 . auy thing more. I never said anything more; 
 I I never reported that I had made any ar- 
 rangement with Mr. Langeviu— though, no 
 douot, I did mention it to Sir Hugh Allan, 
 that if we got up a fund Mr. Langerin should 
 have a part of it to tlie jxtcnt of $25,000." 
 
 Allan's Inuestments. 
 
 Air George E. Cartier'a death deprived the 
 i country of tha avidonca ha would have been 
 I at)le to give, but we learn from Sir Hugh 
 ' Allan the amount of tha sum ho paid to the 
 three Ministers. Referring to the letter 
 I written to him by Sir Oeorga E. Cartier, on 
 I the 30th July, 187-*, he said:— 
 
 " As tha letter now appeara, the memo* 
 randam is for $110,000, but at the time it 
 was written the three first items amounting 
 to $G0,000 only were mentioned. Sir Gaorga^ 
 faoweror, aaid they oould talk of that aftar- 
 warda. AcQordingly I paid over tha three 
 first smma of money indioatad. Afterwarda 
 
 • Ml I'. 
 
 wm 
 
 iUti 
 
 mm. 
 
 > t-.ri 
 
 Ju.lg* 
 
 ib« rvi 
 
 Mr. 
 uvluo* 
 
 ono ..f tliu tliir 
 
 of Manitoba. 
 
 Hut Sir John A. Maodoaald wai not to be 
 out-done b f his ooUeague. Oa tlia fttth of 
 Attgaat ha telegraphed from Turoute te Mr. 
 Abbott, aa f jUows : - 
 
 " Immadiate— pfivata. 
 
 " I must have another tan thoassnd— will 
 be tha last tima of calling. Do not tail ma, 
 answer to<day, 
 
 " JuHM A MaffDOKALU." 
 
 The $10,000 sent at Sir George E. Cartier's 
 instigation had not, it seams, farulfhed over 
 two day's supplies at that oritioal moment. 
 Mr. Abbott promptly responded:— 
 
 "MOMTRKAL, Aug. 20, 1872. 
 "Sir John A, Macdonald, Toronto: — 
 "Draw on me for ten thousand. 
 
 "J. J. 0. AiiBjTr." 
 And Sir John .V. Maodoaald obtained his 
 910,000 by draft on the Merchants' Baak, of 
 which Sir Hugh Allan is Preaidaat, and here 
 is a eopy of it:— 
 
 " ToBOVTA, 26th Augbst. 1872. 
 
 '* At sight pay to my order, at tSie Mer- 
 ahaata' Bank, the sam af ten thousaoi dol- 
 lars (or raloe reoetTed, 
 
 " Jom A. Maodovald." 
 " Bndoraad;— 
 
 " Pay to the order ai tha Metxhants' Bank 
 of Canada. 
 
 " Joav A. Macvovalo." 
 
 The Impeachment, 
 
 Shortly after the meeting of Parliament 
 in March,*187S, the fact of a corrupt ander 
 standing haring been arrived at hetwaan Sir 
 John A. Maodoaald and Sir Hugh Allan, 
 came to the knowledge of the Hon. L. S. 
 nHntington, the memlnr for Shefford. On 
 the 2nd of April Mr. Huntington moved the 
 following resolutions : — 
 
 " That he, the said Lacina Seth Hunting- 
 ton, is credibly informed and believes that 
 he can estabhsh by satisfactory evidence, 
 that in anticipation of the legislation of last 
 Session, as to the Pacific llvlw.\y, an agree- 
 ment was made between Sir Hugh Allan, 
 acting for himself and oertain other Cana- 
 dian promoters, and G. W. MoUullen, act- 
 iug for oertain United States capitalists, 
 wLereby the latter agreed to furniah all the 
 funds necessary for the oonstraotion of the 
 oontomplated railway, and to give the former 
 a oertoin per oentage of interest, in oonsider' 
 ation of their interest and position, the 
 scheme agreed upon bein^ ostensibly that jf 
 a Canadian Company with Sir Hugh Allan 
 as its bead— 
 
 " That the Goremmeat were aware that 
 theae na^tiatioas were pendiag between the 
 aaid parties— 
 
 " That snbsaqnently, an rniderstandlng 
 was oome to between the GoTemment, Sir 
 Hugh Allan, and Mr, Abbott, one of tha 
 mombara of the honourable Houae of CTom- 
 mons of Canada, that Sir Hugh Allan and 
 his friends should advance a large sum of 
 money for the punmse of aiding the elections 
 of Miniators and their aupportora at th'o ensa- 
 iDfi[ general elections, and that he and his 
 fnends should receive the contract for the 
 construction of the railway— 
 
 II .1 -l,vl , II. Il„. II l|.' «. 
 
 now V.3I Duol.l lt'.ik th. Riy.l A.«onk. Hut 
 I4[ua Vtaur* wiw tlul.y, lur Ui. KhmUcboj diit 
 Dot O'ime down till tho .Ird of U.j to giro 
 the moMura hi. tanutioo. A irhole fortai|{ht 
 h.d boon wutoil in doing wh*t, at tho out- 
 lido, oosld have boon Mooiapli.heil in furtj* 
 eight hoar*. 
 
 The Oathi lo VTitnoim Bill waa now law. 
 On Moadaj, the ith of April, at tho earlieit 
 moment. In fact, after tho Bill ha4 boon 
 Anally diipoeod o(, the Oommitte~ met 
 AU tbe neoeutrypreparationihad been made: 
 not a aolitary objeotian had boon attarod 
 againit the Committoo proooodiag. The 
 witneaaeo ha'l boon inmmoned, and tho 
 Ilonti of Gommoni bad lont a formal applioa. 
 tiiin to tho Senate to aik the attendaaci 
 oertain of ita membera>to be examined, B..t 
 a deep laid parpoH to render tho action of 
 tho Cjmmoni nogatory waa manifeeted. On 
 the Can' '.ittoo aiaembliog, Sir Franoia 
 Hinoki w .. oalled to tho stand. Sir John 
 A. Uaodwnatd at onoo roeo, and, addreaaing 
 tho Committoo, pleaded for aa adjoamment 
 of the whole proceodinga to th* looond of 
 Jnly, when Sir Hugh Allan, Hen. Mr. Ab- 
 bott, and Sir Ooorge K. Cartier, then in Eng- 
 land, would haTO returned home and be able 
 to giro tkoir leotimoor* Thia wonld hare 
 the efTeat o( poitponing th* aaqniry until 
 after the riling of ParUamont, and when, 
 therefore, tkointorreatioa or aothority •< the 
 Honio ooaM not be larekod iboold oooaaion 
 arise for it, BMide*, th*** gentlemen had 
 b«on long tn England, and ample timo bad 
 alr-ady *bip*od for tkom to retam 
 had thej or th* Ooremment de- 
 aired it. It waa abanrd to snp. 
 poie, aa tha remit proT*d,that thalr elTarta 
 to raise capital conld bo soooeaafnl, when the 
 rery charter of tbe Company they were seek- 
 ing to Hnanco waa alleged, on th* floor of 
 Parliament, to ha»3 boon obtained by fraud 
 and cormpUon. A month had already elspied 
 since it was known they woald bo want- 
 ed by the Oommitteo, The Committee noald 
 have prooeeiled with the twenty or thirty 
 other witnesses on the list pending; their re- 
 turn. Argument, howoror, was useli»9; the 
 whole thing was cut and dried beforehand; 
 for no sooner had Sir John A. Uacdonald 
 oonoluded, than up jumped Ur. James Mc- 
 Donald, one of tho Miniiterial majority, fA 
 moved a reiolution in the exact terms bii 
 political leader, the aoonied Minister, had 
 anggeated. 
 
 The minority appealed t* the House. 
 Mr. Dorian morud, (oeonded by Mr. Uol- 
 ton;— 
 
 " That, linee the appointment af the Com- 
 mitto., whoa th. ttuanimoaa fwilma ei the 
 Honse was that the enquiry iho«ld be aoti^e- 
 ly proiocated daring tke preaeat ssaiion, no 
 tning had ooonrred t* jnitify tke proposed 
 adjoamment of the Committee to the 2ad ot 
 July ; but, on the contrary, the interest of 
 the coantry imperatirely (lomanded that the 
 enquiry ahoald be proaeonted witkoat further 
 t'Uy. 
 
 The barefaced attempti of the incriminated 
 Minister to baffle inreatigation were now 
 too transparent to be donbted. But the 
 Hoaso once more gare a blind vote in obedi- 
 ence to his behests. Mr. Huntington had to 
 bear from the Premier one of the most vul- 
 "That accordingly Sir Hugh Allan did i ^j brutal personal attacks recorded even 
 
 adrance a large sum of money for the pur- " „, t t a ». 3 u. u „ 1 
 pose mention^, and at the wUoiUUon and ' "■ Sir John A. Macdonald s shameless career, 
 under tbe pressing instance of Miniaters— I Mr, Dorian's motion waa defeated by: Yeas, 
 
 " That part of the moneys expended hy "'"i ^ayi, 107. 
 Sir Hugh Allan in connection with the ob- | A C^nrHinn Fnionrlo 
 
 taining of tho Act of Incorporation and! " OCarUIHg CpiiOUe. 
 
 Charter, were paid to him by the United 
 
 , At this juncture Mr. Huntington became 
 States capitaliito under the agreement with j p„„^„4 „f „„pie, „f the correspondence l.o- 
 
 twuen Sir Hugh Allan and his Northern Pa- 
 
 him — 
 
 " That a Committee of seven members be 
 appointed to inquire into all the circum- 
 stances connected with the negotiationa for 
 the oonatruction of the PaciSc Railway, with 
 the legislation of last session on the subject, 
 and with the granting the charter to Sir j 
 Hugh Allan and others, with power to send i 
 for persons, papers, and recorda, and with iu- 
 strnctiona to report in full the evidence 
 token before the proceedings of the said 
 Committee." 
 
 Sir John A, Macdonald received thia seri- 
 ous indictment in silence. He hoped by 
 these tactics to be able to crush the efTort to 
 bring bim to juatice at the outset. Uis fol- 
 lowers had been privatoly appealed to to 
 voto down the motion aa one implying want 
 of coafideace, whereas, being for enquiry 
 only, it followed, that,not on tha motion, but 
 on the remit of the enquiry miggested by 
 the motion^ most the ooniideace or 
 want of confidence of the House depend, 
 Ha ancoeeded for ] tha moment, however, 
 and by a Toto of 107 nays to 7G yeas wu 
 aostained in his opposition to an inveitiga* 
 tion. Immediately after the roto waa taken, 
 however, some members who had been in- 
 daoed to lapport the Premier to far, laaiitad 
 
 citio confederatos. He was also made cogni 
 zant of the fact that the originals wcro de- 
 posited in a sealed packet in the cnBt<>ly of 
 the Hon. Henry Stames, a banker of Mon- 
 treal Mr. Huntington thereupon moved, on 
 the loth of May, that tho Committee ahould 
 be directed to reassemble forthwith to aum- 
 mon Mr. Stames before them, and impound 
 the papers. To show ita importance Mr. 
 Huntington proposed to road some portiona 
 of tho correapondenco. Sir John A. Mac- 
 donald at once exhibited the most abject 
 terror at the prospect of tho eyes of his delu- 
 ded followers being thus rudely openod. He 
 assumed an altogether altered tone towards 
 Mr. Huntington, and addresaod hiui 
 in language as oompUmentary as 
 , his former style had been abusive, 
 Meantime a alip of paper had been handed to 
 Mr. Speaker Cookburn, and that aupple 
 functionary ventured on the extraordinary 
 ruling that a member making a motion, 
 should ntit, when It related to a matter 
 already referred to a Committee, read the 
 evidenoe on which his motion was founded. 
 Howarer, Mr. Hantingtoa's motion conld 
 
 Pat/tain •//; iunwil Oal oj 
 Doors. 
 
 Whether it was, or was n->t, intended when 
 the ll.)mea<lj»arned in May that it shonld 
 sit for the d' 4patch of any bi<-;.,oss that 
 might come before it on tha I'l.h of August, 
 had, when that day arrived, uv.-o:na a matter 
 of se.'oudary importance. An enipiiry.found* 
 ed on a charge of grave ollijial mtlfeasanoe, 
 ha!, from noforeaeen oauNes, brokon down, 
 and the lutation wa«, whether the reapnnai- 
 bility of dealing with the emergency should 
 be left to the M-iuse of Commons, whioh was 
 alri'Sily aeisid of the mntter. or whether it 
 ahouU be left to tho aootised Ministers them- 
 selves. The prorogation of Parliament wonld 
 destroy the Parliamtmtarvrr.iiuiry altogether. 
 And thia oorUinly waa never contemplated 
 nor illumined when the lliuse ad- 
 jimruo.l. The plea thkt Ministerial sup- 
 porters wore nut present, was pUuaible 
 but iumlHiiank If the di4allowAune of tha 
 OAtha liiU were not a trit:k to destroy tha 
 en<iuiry, it waa tho duty of Minlitera, whao 
 that event ooourred, to adviae their aupport* 
 era to be In attendance. Rut even in their 
 abeeuce it was not neoeasary to resort to pro- 
 rogation. Anadjournm^at, to which the Op- 
 position woald have randily assented, wontd 
 have avoided the violent dastrnotion of tke 
 Committee, and still admitted of a full Hooaa 
 aesemhliug a month later. I^ord DufTariade* 
 aired to aaoura this resulf, and oiTered to ba 
 the mediam of negotiations between the Got- 
 emmeut aod the Opposition leadera. Bfa 
 Exoellenoy'a own aooount of hia efferto (a aa 
 follows:— 
 
 "I wu 80 anxioua, nevertheless, to find 
 some way of avoiding a oourse which I fore* 
 saw would be denounced, however unjustly, 
 ai an uudae exercise of the Queen's Preroga- 
 tive, that I thought it desirable to make a 
 anggestion in this aenso to Sir John Macdon- 
 ald, ofTiiring at tho same time to bocome the 
 ohaunul of oommuniuation by whtuh an on- 
 derstaoding between him and hia opponento 
 might be arrived at. Nir Juhn'a reply waa 
 very much in the aen^e I ha<l anticipated. 
 He tDHisted upiin the iiijustico of hii Govern- 
 mont iiein? givon over, )>ound hand and foot, 
 to the tender mercies of their opponenU in 
 tho absence of hia aupporters, whom he had 
 dismiaaed to their hnmoa with my aanotion, 
 and with the acr|oieacence of Parliament, 
 He called my attention to the fact that tha 
 Oppoaition organs, far from hinting at any 
 oomprnmiae. wore Insisting on the fact thata 
 quorum of Parliament oould do anything that 
 Parliament itaolf oould do, and wore evinc- 
 ing by ^anmistakabte signs that they would 
 show no quarter: — that ooth Meurs. Rlake 
 and Oorioj^iad aadearoured U. persuade tho 
 Ou»^«iia«Me omit«nt theinadU'ts with an- 
 sworn evidenoe, and that if Prrliameat met 
 for bnaineaa the^ would be ia a pisitien to 
 pau an in^traction to the Committee to that 
 effect, — that no man would be willing to risk 
 his life, still less hia honour, in the bands o( 
 witnesses released from the conjeeint^noes of 
 perjnry, — and tinally, that he wtubt not feei 
 himAflf s '/'• in en't-ring into nuij arrangftnentA 
 (li'pendnit upon the. bona ji*l''Jt of thone, ufUfi 
 whom I had nuggcufetl he (thouUi treat." 
 
 It is to be regretted the Governor-Qeneral 
 did not indignantly aoout the auggoation that 
 men, pcraooally known to himself to bo ut- 
 terly incapable of any other than the moat 
 straightforward conduct, could not bo trusted 
 to keep good faith. If it were conceivable 
 that, after agreeing to an adjournment with- 
 out discussion, Mr, Mackenzie and hia 
 friends would have endeavoured to take any 
 advanta^'cof tho Ministers, there waa stdl 
 prorogation to fall back upon, which wonld 
 { have res Ml ul them in a moment. Rut the 
 remonstrances from all parts of the country, 
 and that of niootysix members of the House 
 of Commons, wore alike unavailing. His Kx- 
 collenoy prorogued Parliament the same af- 
 ternoon, Mr. Mackenzie protesting tn in- 
 dignant terms at tho outra^,e committed oa 
 the rights and privileges of the House. 
 
 The Royal Commission. 
 
 From'th^ Daify Oh'te of January i, 
 Ontbo'folIowingdaylaUoyarCommiitsionwaa 
 iaaued to Iiidgoa I^:iy, Polett^^, and (jowan, 
 dirooting thorn to make the eu'iairy, Mr. 
 lluntiugt Ml, when calle 1 upon to attend, de- 
 clined in litting and dignified language to 
 recognize a tribunal that waa iteelf an Inault 
 to the dignity of the house of which ho was 
 a memlier. No prosecutor, therefore, ap- 
 peared. The orosa-oxamiiiation of one another 
 by the accused invested the procAedicgs with 
 thecharactor of a burleaque; and the truth, so 
 far as it was ascertained, was extorted, not 
 by any rffort of tho Commissianora, but sim- 
 ply by reason of thedisclosuroa already mvle, 
 which rendered tjonooalment and prevari- 
 cation more dangerous than an asaumed ap- 
 pearance of oandour.