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Lethbridge Herald Newspaper Archives

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Lethbridge Herald, The (Newspaper) - November 11, 1910, Lethbridge, Alberta y, November IMP. THE LETHBRIDGE DAILY HERALD Pageli THE REPORTS OF THE MBERTA AND Majority of tlie Commission Severe in Criticism of Certain Features oitM Evidence Out Many .Circumstances to Aroiise Evidence Offered to Establish Wrong Doing by Any Member of the Government or tbe May Remain in Existence. MAJORITY REPORT Kdmonton, Nov. majority report of the "Alberta and. Great -Wat- Commission presented to the lieutenant-Governor by Justices Har- could probably give useful evidence, an application was made to the Courts of. tbe Province of .Manitoba, and an Or- der obtained, requiring tbeir attend- ance before your commissioners in 'vey and Scott reads as follows: Your commissioners there- and later engaged in .trading on the Athabasca soon after enter- ed'into a steamboat transportation en- terprise Athabasca to aad from Fort TilcMurray. The legajl work con- nected with the obtaining of the char- Lieutenant-Cover- Proceeded to Winnipeg and took ter was done by the firm .of Short, To Hi-s nor of Alberta in Council: Your Commissioners, appointed by your Commission issued on the 16th. day of March, 1910, to enquire "wheth- er any, and if any, -which officer or officers of the Government, or member or ..members -ol the Legislature- of the are interested, either directly or or through others, in the erection, in- corporation or organization of the Al- berta and Waterways Railway the evidence of some fifteen witnesses there, and thereafter proceeded to Tor- onto, and obtained similar manner the evidence of Alfred "Eaves, who was thought to be possessed of very important information, after hav ing failed to, procure his presence and evidence in Edmonton or Winnipeg.. indirectly by themselves Inquiries made in. Kansas City, the 1I1U J, J hnma. nf ATr- Olo-rt-Q M-f-i VilifVi-arl T, f home of Mr. Clarke, established the fact that the assistance of The local courts could not "be obtained to com Company, or in terin the making of or en- Pel'the attendance of -Mr..Clarke there out of a certain latul commissioners are at. present without the benefit' of nis evidence. contract between .the Government of the Province and the Alberta and Vour commissioners however have not Great' Waterways .Railway Company, thought Jt advisable to -defer making or the guaranteeing by the Province of any report .until 'the evidence of Mr. the securities.of the said Company, or Clarke" could be obtained, but rather sale thereof, or in the proceeds ol {considered -that result of the in- cr in the amount realized from the disposition or sale of the said securi- ties or otherwise howsoever in con- nection "with the said Company, and to report thereon for "the information of the Legislature, beg to submit the fol- lowing report: Immediately upon notification of our appointment, after, having selected Mr. qjairy as far as it had proceeded shoulc he reported, reserving for a later date any supplementary .report which may be necessary in the event of the evr compiling -their who arm- To His Honor The Lieutehant-Gover- nor. of; Alberta in Council: .have" to present Ithis as my report, in pursuance of. the j Commission-.recently, issued by Your Honor and directed to the Honorable with Dr. .who arriv- in Edmonton middle of October! .Immediately' upon .the return of the engineers, Miv Clarice entered upon the definite negotiations wilh the con- templated at his meeting witti? .the (Mr.'. Justice the Honorable. Mr. July, 'Mr., Mimy. 1; W jciarke's solicitor in Winnipeg, came I Justice- Harvey, and my sell'. 22nd of January, by whic'h'it'was for making EdjnoRton the proposed -that' 'thtf. syndicate agree tc ate report "arises, from the .Mr. ;Wdbds, :then Deputy L L-Vy 1 J frt j build' a railwafofUhe standard of the jtiKmgh f'in' my answers, to of Mr. _ i n i? inmiiT'V" a 1 opinion -that the a. sonable one. 2 Secv 20 provides; i two at -least of "the while holding office, be residents-; tfte Province. Sec. 210 provides ,fpr granting. of equal', facilities to Jail express.; 'y panies. chase of the; road by The saine tp; Government, then existing the Province under toe charter before mentioned and. the GoveKinfent'to assist, agree to of the company" to.be issued''after-the completion, oi the''road, for a priBtcipal amount jlation a to the cost of' the construction, bur not to- per mile, pay- able-.in 50 bearing interest at 4 per cent; '.provision being alss made for the issue of interim bonds during construction from time to time to aid in the construction, subject 'to the. same conditions; and limitations which were to'-bVjconvertibie into per- jmarient bonds after completion of con- jstruction. 'f Deny Seen It "There is no'evidence to indicate that jhas matfe a. quite, different impression date'Vof: aVmeeting The provision Wf- the upon -my uuind with ras'-ifd to, the mo- Ministers 'mubh which the' ictualed and the iaten- L occupied the minds of i Ministers 'much which.provides-for lives whicli actuated and the. iatten- drafted proval. of the'-tariff ii V of any 'iiest There "was a.7meet-j mputaudhs- were-cast during the j of-'the-'Rail there gress: 'inquiry. It therefore 'be- I 'Gushing anci" on jsion" "that: conies -necessary for me to express mr .oL of r" fniimx-Afi hv- idertaking -at any] time- at -its value views upon'.ihe 'more prominent cir-. the idertaking -at any: time-at-its then with...by my collea-- i .nces at Gushing itheir joint report, in which, for fiUs: -indicated, I find myself un- able to concur. says he tibn of being '_, informed1-' by .any .'other .colleagues -are of opinion that member.-of Goerhment or learn- ing from S6urce .up- to this substantial .the tae1 advantage to the..Company, stituted provision. .In substitution-for', the pcovisioni; this document presented, and lit. is.not; imppftant to find what is the Qr of this aid Mr. Cross '.both jtmth with ..regard to Mr. C.ushing's Leet'ing .tbaf negotiations "wete is.a deny, ever it, and the feyi- jknowledge 'of what took place at Detween'MrJ Clarke-and" the -during dence.''does not suggest .that it is .of the-Ministers in Calgary views of tee of the 'sjin of Ihe commit- j No one-seems to 'thing indication of the 190'S.' opin-ion it is of jthe'-g-reatest to do so. Crit- ineers.ori iicism'i's" made" of 'Mr. Rutherford ernment; as -ffis-recollec- even -the syndicate.- The syndicate -consist- character .of-ihe haye recollection ou-Uie gi'oiisd of theii' knowl- various things at various- -Winnipeg men. including.itweeE.-the.conMriit'fee .9fi.the CornvVall "sayr" M.L.A. Mr. Robson, and Mr. G. D. Minty, also __ evi- "dence- would apply, to matters, only ,in: cidentally and not directly., connected, with xhe inquin-, and would .not be likely to throw any new_ light on. the material facts to be was deemed advisable? not. to delay-for the purpose of obtaining his evidence. Bankers Wouldn't .Come An. invitation was sent to the Presi- dent and General Manager of the Royal residing at Montreal, to attend the sittings in Toronto and give evidence. This invitation was declin- ed, and as their attendance could not be enforced, their evidence was not obtained; but evidence was obtained in Edmonton, from the local manager of the -said Bank, regarding Mr. relations with the Bank bearing, on the subject-matter of the inquiry. During the sittings of the commis- of Winnipeg, the solicitor and one of jsion in Edmonton, after the .i-eturr the directors of the said company, who from Toronto, information was receiv- ed that Mr. Vivian Smith, a member of the firm of- Morgan Co., of London, England, the. supposed purchasers of was present with. him. both stated that all the books and documents of the Company would be submitted, amd that Mr, W. R. Clarke, the president of the __ company, wo.uld attend and give evi-1 day Or two. Though it was not known I oftbe If" ed-of-several a Mr.-Woodman, had had: experience in -the construc- t' railways in Western. Canada; a sohable. Mr. Faulkner recollects hav- ing stated to Mr. Gushing the -amount oi', the proposed guarantee as the bonds, would be in Ottawa-in 2 ing Qr financlng_, The Syiraicate >Ir. Davison, of London, England, who' was supposed to have financial in-, fluence there; and' a Mr. --Alfred Hawes, of Toronto, who was a member, of the London Stock Exchange, and' was .supposed to have financial inter- ests there. Mr. Cornwall -vvas the. only member of the syndicate who' lived' In Alberta or had any personal knowledge "of the character of the country to be traversed by' the proposed railway. From the information obtained from Mr. Cornwall and other sources, and his own experience as. an. engineer, Mr. Woodman prepared estimates of the cost-of the railway, .which he placed as far as Lac-la-Biche. approx- imately at a mile, exclusive'of legal and organizing expenses and special bridging, and not including equipment, which he placed at a mile. Beyond Lac-la-Biehe this es- timate was a mile more. The particulars of the estimate Western companies tc it includes for right-of-way and S650 for sidings, but nothing for fenc- 'heVpresunies that the syndicate's Views "'ofthe affairs., .-which' are .and -from Mr.- 'Cushing's supposed iWesds 'tnis; ;pfofjSJ: and-that; f the -lineT'.aiid- thai (nation ere'placed definitely before'-the cab-j ignorance, drawn' an'inference., "or Goadard was one-'of them. .They jitWas reasonable. 'I "think inet... and that- presumption'seems' rea-' 'at least a 'suspicion, of ,an undue fav- admit' that name' was'no't be- made ground for oring of this'Company on their -35 '-the "'-prompter.' "Mr [intention of Mr. CrossVpar't with'the intent, o! obtaining benefitsls-oclcs says that' they cot only Company unduly.: from .it, eveu_a suggestion cussed the physical .features >f'; the Mr. Woods also simli, vf r (UUoacVA Ciiy yjJLJ1 .Lcfl.l'Ul CO Lilu j wvtii U -Jfor 250 miles, at 4 per cent, jof suspicion-is maae against Mr. Cust but'also grades, and :that he i Act of Guarantee., of -.which; for 50 years, and that mighi be -sufficient. He states, however, that details were not discussed at the conference with the Cabinet. The ne- gotiations continued for some time: though apparently not very formally or-systematically. During the year 1907, Mr.. Hawes went to England tc see about financing the enterprise, and in "October, 1907, the members of the saw Mr. Cushing in Winni- peg, and on the 18th of the month they wrote Mr. Rutherford, pointing out that if the Government would guarantee the interest" on the bond_s of the company, Capt Cape, the resident director 'in Winnipeg, o." an English Financial Company, which I make none, and I think there ds no ground whatever to do so; but maximum percentage of grade; -a cir: if it be a- and in my opinion the ]cllmstance 'which evidence establishes that it is a fact Mr. C.ushing had a of all the important steps in the af- ifair. then it seems to me to be illogical iancl unreasonable that the same cir- cumstances should be made the ground of adverse inference or suspicion against Mr. Rutherford and Mr. Cross, evidence satisfies me thai Mr. Dr. Waddell disagreed ;iipoh the jderstand it, no special made. revised a draft gage submitted by .'In.-i.the., form in which he submitted, it- :there': are, as I have said, a number that the discussion such charac- ter as obviously assumed that negotia- tions were on f6oL, There is no indication that" any Of left the "persons present at these meetings I These documents presented all of whom' with" excep I to the meeting of the dence when required. [whether he had any personal Icnowl After the examination of witnesses i edge of -the transactions relating te for the purpose of ascertaining what documentary evidence was available, an adjournment was taken to enable Counsel to consider -the very large mass of documents which required to be inspected. On the resumption of the sittings on the 14th of April, Mr. Robsou and Mr. Jlinty, who had been in Edmonton on the preceding day, were absent, having the said sale, a telegram was sent him requesting his attendance to give evi- dence. A reply was received stating the' extent of over five million dollars, wo.nld recommend the financing of this road from Edmonton to Fort McMur- rax-i With the was submitted the Province's guarantee of its- bondsi ian estimate prepared by'Mr. .Wobd- for a nine it could finance the !maP- placing the cost at a mile. ing. Mr. Cross is positive that Mr. Cushing was there. Mr. Rutherford is sure of it. Mr. Cushing was in Cal- gary at the time, and though he states iliips, "were exaniin- e November, and then and tfiere 'explained by ?.lr. Woods. It does not seem to me to" be a matter of-surprise that the contemplated an'angem'ent as witnesses, were surprised, at r, if Mr. Cushing orMr. Stocks had no kind of intimation that negotia- tions were actually on'foot, would be Between Mr. Clarke and-the Govern- a sudden" visit bv the call- meBt was for the fir3t time.formally he has no -recollection of being pres, a sudden" visit by the engineers call !ing for some explanation by .way of introduction. "I'believe the fact "to be em, he. is not prepared to -say that he that at the eeuns m Ju was not present. Then it appears thaf, A aave said' l am satisfied Mr. Cush- Mr. Stocks. Mr. Cushing's deputy, ing -was was quite dis- itlnctly understood that Mr. Clarke had undertaking, and instructions were giv- en to a committee consisting of Mr.. Davison, Mr. Hawes. Mr. Faulkner and his inability to attend, as he was Cornwall L0 endeavor to obtain ing for New York on his return tc England on the following day. From gtiaranree. or if not. one for SI ,000 .for terminals, and for sid- ,_ f, 1..-I StaS tl0perCGnt wrote -to Mr, Cushing at Calgary on the 22nd .Tmie'sayiBK: "Mr. Rutherford states that he would nrefer having jto make a that i matter (referring to another mat- consequence of the .asicraaces the the Railway project) settled :and there -iv'en him W0'uld ac' st full Council, and that you ;T U111y atan OTt that on to start out at once in then should be sdded ro cover costs of or ga'nization. legal and contin- of all kinds, making a total information received 000 for 50 yearSf vRh interes[ at by -counsel for !per cent Qr per cent The the commission, through inquiries of the commirtee olher Mr. made by agents, it was not thought !Corawall proceeded ,ro Edmonto- that any useful p.urpose would be serv- jabout the enj Qf ]906( and intro- Cushing. conferring with Dr. Ruther- ford, telegraphed -that the Govern- ment would do nothing. It is apparent, however, that iheir efforts and hopes of assistance harl not ceased, for, on LUC jitcim-ii jjav- ;30th March, 190S. Mr. Cornwall stated thus Mr, Clarke had decided A copy of all the evidence -taken, ;jag stated lhat he tho_ught the assist. (Conrinued not to appear and give evidence, but i which extends to pages, is sub-! Of ter than jat the rie: I will not iikely be all together JFair week in Calgarj-.7' If Mr. i ling was present at the July me then lie iindoubtedlv until their retnm Mr' Clarke- would make and definitely discussed by th hers of the Cabinet on the one.', side and Mr. Clarke and his adviser's, on the other until after'this work of Mr. Woods had been completed. In none of these documents was mention made of the amount of the guarantee or tho maximum cost of the terminals. -On the Departmental files in evidence be- fore us are drafts of the Act of Incorporation, the Act of "Guar- antee and the Mortgage, and there-is than one copy of the latter" two questions were there and proposal to tii-3. 'lovei't for a guarantee of bonds: Ministers were ready to give a i hen and settled, as well, as-. LUV.7IA' C7 U-JJ.C: ondging might bring up .to in leading Mr. Clarke to ex-ilime the amount or any I AU -'Li, L This letter was not answered, but Mr. jpect that llpoa the retura Ws engi. joiher derails of the contemplated ar- of tnese ,o d the filling in of blanks in the draft. Acts and some other slight alterations neers from making a reconnaissance ij Government would be ready to en-1 this as I do, there is. in my :_f _ O.nt-prinr_ fftl. _c (opinion, no room tor any ,e. ne0otiauoLS v.nh hnn 101 as- .f CrQgs n lact> nad Irorn -com. Little if any consideration was given sur- rhe terms of Mortgage, which; jsislmg the which on nest page) nonly used forms, and there seems be no reason why at that stags sho.uld have been any special that he himself would be willing tc give evidence in Winnipeg. Mr. Rob- mltted herewith, as well as. the ex-; hibits, which number 255. son- stated that he withdrew entirely} In considering the evidence, it may from the proceedings. It was observed at the outset that the evi-i THE THR-FF COMMI 1J-1 liVli quently disclosed by the evidence that dence in support of the imputation Mr. Minty had met Mr. Clarke in St. that some officers of the Government and they had started together j or metr.ber of the Legislature received 'or Edmonton., that from Moose Jaw from or by reason of the con-j vest they had travelled on the same irnin with Mr, Robson and M- Me- Kenzic; that at Swift Current, before tract, or what followed, is wholly of i a circumstantial character, except as! to Mr. Cornwall, and it is necessary to reaching Alberta. Mr. Clarke having examine with some detail the circum- decidecl not to come to Edmonton ro .stances for the purpose of .ascertain- ffive evidence as before promised, left ling the conclusion they point to. and the train, and the other three came on thsir cogency in support of that con-{ to Edmonton without him. Mc- Keaxie appeared before the Commis- sion oc Mr. Cornwall's behalf at. the resumed sittings ur.ru a day or two elusion. It will bo most useful to do I this, in a general way, in accordance with their order in time. j It appears (hat. in the year 1905 Mr. after Mr. Cornwall's evidence had been j.las. K. Cornwall and certain others be- j came incorporated by Act of the Par- liament of Canada, under the name of "The Athabasca Railway with j sr.vn, aficr whicli time he did not lurcher attend. May Hsve a Second Report The Jurisdiction of your commis- sioners so compel the attendance of witnesses be-fore them being limitec to this Province, and appearing tha1 ii: adciiiior, to Mr. Minty there were teveral witnesses in Winnipeg who. power io construct a. railwday from j Edmonton to tbe Athabasca Rivet- at or near Fort McMurray, Mr. Cornwall was the only one of tiie In corporators who had any substantial interest ic uns cliarter, and at time decided to present his proposal in definite form-should even without i that lhe sum' communication with Mr. Cushins or (L a thon Set-cled' any other member of the' Government ilf Jsb he says hs (if we assume it to be so) instruct his ied as amount whic (if Ifleputy thai he might, in consultation ich was i with Mr. Clarke's solk-itor draft the; !Act of and the Aci of .Guarantee, and such oilier documents 'as be uro-ier in order to put the proposal of Mr Cl-irke into .definite form for consideration by Cabinet.. Ivlr. urcw ;ac Act of Tncorpor ation. As a rcsnU of vliscussipn -wirb i !ri0to be JUSTICE SCOTT' U CHIEF JUSTICE >iARVEY JUDGE BECK I he rate of per :J been insened by Mr. in the draft of the Gnarar.ieo Act. He saya had previously discussed this' rale jwith Mr. Cross, ox-pressing his own op- [inion !n favor of 1r. nnd That had of it. Mr. isays the doe.umerus he had prepared iwere explained by him to the Cabinet on that occasion, ar.cl ir is alraosl. im- Mr. Minty. a oertain special provision was insened. which has been'mtu-.h to 1har thfi rate mentioned.' Mr. RuiJierford and Cross say the rare was discussed. The Rutherford Letter ot criticized and wh'c.li lias been Taken as casting: suspicion upon Mr. Cross. This special provision is one which pre vents the application lo the Alberta- Xo 'serious critic-ism seems to Edmonton, November 14, .1SOS. "Dear order to develop -the nonh Of Edmonion to ti.e j..sci-Liou of this special provi- iCouimued on pa go. lij Cross but Air. Woods who, as a result wf Mr. .vliuty's argiiments, consented ;