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Lethbridge Herald Newspaper Archives

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Lethbridge Herald, The (Newspaper) - November 11, 1910, Lethbridge, Alberta .ii Friday; November11, from''Montreal to .Mr..- Hawes as fol- lows: Talk With Gushing Dear here today W. H. Cushing, our Minister of Public Works in Alberta. Had lunch way was constructed, and to be boughi back if required, at 25c on the dollar not later than 1st June, 1912. option was renewed from time to time, and upon the last renewal in Novem- ber, 190S, one-half of the was a. our "railway policy, .1 iuast that 1 (Other half extended to "found" him very amiable, and 1 feel "now, after today's talk -with him, that "our chances to do business out there "are good. He was the stumbling block "up to date. "i' have had three or four talks with The Report is inaccurate The report is inaccurate in many respects, Mr. Goddard refused at first to sign it until he co.uld check his figures. A day or twc later, how- ever, Dr. Waddell obtained Mr. God- dard's signature, on assuring him i; j Would not commit him, and that Mr. ed company which might be formed tor the construction of a raihvay over the same territory, for "Tlie stock or Athabasca Railway Company "him. winter, and on occasion (Which was to form pan'of the consid- certain that we can S him to Edmonton to work on. 'Dr Waddell also prepared an estimate for Mr. Clarke, which is dated. 3rd Octo- ber, 190S, in which ae estimates the cost of the road, at per mile. By a subsequent estimate furnished timejon 6th the price h. [specified. Meanwhile, in June, to of which is ter the option had been obtained. j-or equipment and for ballast, r. returned to Edmoctoa ir. Kay observed also that is viltl PrindPal> ?llr- w- included for rock work, and that the _ jerauon for ,0 R. Clarke, whom he introduced to NT. i rjreliminary report s into an agreement -whereby in the event of Ms. being able to' secure a sufficient guarantee of -bonds from either the Provincial or Dominion Government, he was io re- previous anywhere until-he reached For; Mr. Clarke, anc! whether be V.'audeJl, though the Premier states heard aU the details, tie did nothing I that the second point wa? not'determ. further, at any rate, enco.urage o< iieu'at the meeting of November 14th assist than to acquiesce in their forma- Mr. Cornwall's agreement with Mr. acceptance by the Government. There Clarke, that he would transfer his in- is no evidence .whatever to suggest terest in-the Athabasca Charter and that he received any benefit from the [syndicate-made in J.une, in pursuance of which in-July he executed 'the docu- ment'before referred to, and Bow en's letter to Mr. Minty on August in which he said that they would get what they wanted, all indicate a belief on their part, as early as July August, at least, that the desired assistance was -practically secured, does not follow that because the Min- contract or the sale of this bonds, eitli er direct or indirect, The same; may be said of Mr. Finlay, the fourth mem- ber of the cabinet, who took no active part whatever in the matter. At'oi before this meeting'lt was agreed that Mr. Clarke should have a company in- corporated by the Legislature to build the railway, that the province would guarantee its bonds to the of Public Works was not con- tent of mile for the line.jsultw understanding was and for terminals at Edmon- j reached" there 'was therefore jthing dishonest in the negotiations ton, such bonds.- to bear interest at the rate of 5 per cent per annum, and .to [but it is a sus- be for a period of 50 years. Mr, Cu'sh- pfcjon, that one or two ministers, with- ing states .-that, his understanding o what was decided on was that the 000 out the knowledge of another, would appear to' be "especially inter- was the maximum .limit, which, ested, should reach any sort of was subject to. .the further qualifies standing with the promoters of sn en- lion that it should not exceed 75 pc- Uprise the carrying cut of which in- through the introduction of Mr. Big- iaiCMurray. On the- 1st November Dr ar. 'Mr. Cornwall states that at this Waddell Wished Mr. Clarke witf OA 'eement time, on his first meeting and certain figures with respect to the firs' tance with Mr. Clarke, the latter stat- 40 ot- llie road out of Edmonton -of paid up stock in the quently executed has no such "looks to Mr. Cornwall and your friend ''to sec. that he is not placed in a of embarrassment; therefore "while he does not ask for details as "tn what you are doing, ho wishes Mr. "Cornwall -to be able to assure him time ,10. time what the progress "is. Mr, Cornwall states that he feels "that-he is in a position of responsibil- ity to Mr. Rutherford, and that he can "utilize his position towards .conveying "to Mr. Rutherford .such, information "as you may be able to give, and at tlie "same time be'able to advise you as "to "Air. Rutherford's personal views and "anxieties, so that you may !be able to "meet tliii'm as' "far as possible. Me "suggested that.he could communicate "with me from time to time, awl. that "I could pass on ilic information to you "and that in -like manner you could 'keep him informed through me." "Mr. Clarke's Friend'-' Mr.-Minty states That by the expres- sion, "your he meant Mr. Cross, the Attorney-General. There is doubt as to .the correctness the a liability on the part 'of stated in the first sentence the Provrnce .of savera! but Dr. Rutherford states that incorporated, though soiuo for the construction ofllnes partly through the mountains and foothills, only one was authorized to issue bonds to a greater extent than a ibile, and that one was one m which Mac- kenzie Mann were the incorpor- utors, one of whose lines- was: to run to the summit of tUe .Rockies, Avliich was given power, to issue bonds to the extent of per mile, but .only iu proportion to, the leugth of the rail- way constructed or under' contract. As already pointed out, the coat of the road had been represented to the Cab: met to be from a mile; but in the Act which only three months before the Premier taken "to introduce, promote and sub- mit for power is given to create a liability against, it 'of or at least one-third more than its supposed probable cost. The Legisla- ture prorogued on February 25th, the nexi dny after the passing .of this Act. and on the evening of the.-24th' the Premier introduced follow- ed by bills, to provide for guarantse- ing bontis cf the Canadian..NoLhera cation. A Famous Letter sreed that Clarke preliminary for a.con- ftae I2i500 cubic yar the whole yards per mile. foin jtrolling interest on the steamship en-jlt may be tnat estimate i terms: jterprise, in consideration, for which.-' i A letter was then, or had ai-jthe ready been, prepared by Mr. the Deputy Attorney-General, -was ther signed by the Premier and given Mr. Clarke. It 'was in the following thenby their- worcfs sr.d conduct. ead him to supposs that nothing had been determined. The only material f lhe 3rd Dr. WaddeU "Etlrabnton, Nov. 14. 190S. rnant tntpw and claims under "c "avi A" railway. A fev !at 25 cents; loose rock, cubic 500 iQ cuhlc yards at On 6th Novem- ratified Goddard ,ubmitted a repon -sion of t and himself, it is stated" that he is relied on to obtain from the Pro- a for In o'rder to develop "theJSIIc rs of the Government hac: au opinion other official 'documents, was that fur- nished by Mr. Clarke and his friends! Though'the Premier and thek Attorney- General, at least, had known sine? July that this application for assist- such lines to be constructed to the be inade as soon as sr.r- north of Edmonton, we will had been completed, they took no 'Introduce, promote and submit for to have a survey made or obtain tion at the next ensuing j ny reliable information as .to The; cost in his presence, or apparently .with his jto Dr. Waddell, in which he. estimated knowledge. Corn-wall had drawn cost of.the road 250 miles or more, and that in, the of his obtaining such. subsidy one year, which time may be .extended to two years by a raajDritv- in 'interest of'the syndicate, he Is to .receive. 5100.000 in fully paid shares and a mile. Tt is observed. ment of price, to certain ,-te does not the Legislature, legislation such a raihvay, and tney snares ia -the .Athaoasca Railway, of which the particulars as. well as the price are left blank. Mr, Cornwall ifor "incorporate you 'and your associates nothing to rely upon except such 'as a company to build and operate i i.e'ridence as 'might be submitted by suitable for the requiremen'ts {.Arsons who-were seeking an adyant. 'of the country, in accordance with almost absolute include all the items of cost, but it if terms of the accompanying drafv (Strangers.. The only evidence that the, almost exactly one-half-of tie states that he .did this as, an evidence of his good faith and his confidence in Clarke, but that ne never had any DraddeUof sOctober accord Uems .fc doeg include_ On. tllc. ['accompanyin to guarantee its bonds saw fit to submit was the fwo irdance terms orihe reports signed by Mr. Goddard Guarantee Act: The and Mr. Phillips, estimate- of 13th November Mr, Phillips made a "cost of the .Edmonton terminals; as !Dr-' Waddell, all .of which appear to why he should be referred to as Mr. Clarke's friend. Mr, Cornwall, while not denying the general effect] of 'the letter, qualifies .some of the j an'd'-Mr..'Minty admits he j may have gone further tlian the facts warranted. The letter -was written by a solicitor to-his-own client.on the same1 day that he Lad the interview with Mr. arid though there may be -inferences reported as state- ments, it is hard to understand how such a letter be without of the main line of .the Can- adian Northern, oi the Pacific orauch IVer- tc. the sa tie extent anu Uie 'inos t.rbe to the same standard.. One of the Can- adian Northern lir.-es fit's'ranteed MM a. from Morinvillc to Athabasca Land- ing, s Distance of 65 hii'ts if this Una built in a straight .line, and ths Great W--.Ci.ways similarly buiit in a straight line to the west.end of they would be only 12 u. J. if AL-UVI-iL. I a general basis-of fact similar to 15- apart at and is stated. The question then why should "there" be "any objection to about 30 miles'apart 'at Athabasca Landing. The character o'f the. coun- th'e Semfer through .which they would pass with Mr, Clarke or Mr. Mintv for therefore probably be much the information he desired? 'Why also isame- mdicates that line oi the A. G. as actually, part- should Mr. not be usedv ly constructed is even further West about, the agreement j (from Clarke, and he did :not give hin: report in' the form, of a letter to Dr. WaddeU, in which he e'stimater; the cost of the road, equipment and at o! S2S.OOO "mentioned in the draft Act and Mori shall not exceed "Tours truly. of the-company.- Had Given Up 11 Hope Cornwall states that at this Document until some time in the per for lias east of Lac-la-Biche, ifcW. R. Clarke. .JEsci., time, he-'had given up ail hope of 1909, had received a par per miie for one west of "Kansas.CiovMissouri, assistance from the Provincial ;of the promised be A. C. RUTHERFORD, Premier A. have besn prepared for this-purpose And and were misleading, unreliable, andjtlie Attorney General of-the in many, respects absolute-'y jbe a friend of a man who, u] _ The circumstances of Though there are drafts and, copies Government., and so-inforaed the paid m Pebru- obtainiag of this report do not ap. of Acts and mortgages on the-iile dicate, and he made no further effort tary, 1909, and Christraa; on IQe-Ille-- in'ttiat direction, but that he at once [in the same. proceeded to Ottawa, where he re-j wall's departure inained. several days, and had ah inter- were no writings tue report. coverins certain details cf ex- {details, so that iris impossible- the Premier of Canada, suctions or declaring, .the. rights of the and olher particulars. It I certain their exact know vhlcbrhe said resulted in nothing- but j parties or .the .taiderstanding which the information that an application Cornwall says existed that the remain- thould be made in the usual way, jderot" the should be -paid .when viich ivould he considered in due time, ti No further effort appears made Cornwall direc- tion, and it is .quite, clear that if..hopee of assistance from the Provincial eraineat fed been abandoned on the 23rd dar of soon- Slinir, the. solicitor in Winnipeg for the syndicate, writes JMr. Cornwall suggesting itis ascertaining the Gov- ernment's policy at that time, and on 6th. Mr. Cornwall replies, point- Ing out'that the Premier and Attorney- General are both in Europe, and will lot return before July, and that he is aware that the matter nas not "been discussed by the Cabinet-in-Council and goes on to say: "i had a talk the Premier the day he left for England, and he told me that he do, anything reasonable, and -would etretch a point, to help .us to get the wished it, The Calgary Meeting The 'occasion- of the 'meeting of Clarke an'd Cornwall in Calgary was an E3ihibltion "being held'there in 190S, far iv'hich. time tie members'oT the Cab- inet were alsoiic Calgary .'-and Clarke backing, as lie heartily in favor of our schemer and -woul'd like to see us make It stico., and he meant iL It 'no soft .talk, as I know. the man personally, and understand him, and there was no object in his giving me had an interview -with them there IVIr. Cross' room at the hotel, there was a discussion of his proposed furnished tte Oi iiie t- re re- and, indeed, what wj Government as a port of Goddard, has the figures raised in "several instances., indicating an even greater cost These showed the pr.ofaable cost of the.railway, includ- ing -equipment and ballasting, as or a. mile-, and Mr. Cross states was men- tioned by Dr. Waddell as, a .probable nearer to the Canadian Northern" i line. The money received from the of the bonds in both cases'" was points that in the route from east jwhat details were, settled; but Dr. icost? though there is'no doubt that Dr. of tac-la-Biclie to Fore' McMurray. j Rutherford states -that the questions while there is no surface indication of sidings and mileage -were not de- solid rock, loose rock or gravel may be jtermined until -abater time, struck in the cuts. For the route from AS. to the, this .seems .unlike- th.e west e.nd of Lac-la-Biche. both tcjly, because.the be found Fort McIHurraT an'd to Edmonton there is' no suggestion of rock anj-- ort McHurrsy. and cost of construction is estimated at abo.ut 20 per cent to 25 per cent less It is pointed 'out, however; that there are numerous muskegs north of Lac- project of building a railroad under jla-Biche, but that they can be easily the Athabasca Railway charter, and drained, the expense of. which is put his desire of assistance, if, after mak- at about ?500 a mile.' The report di- ing proper, surveys, he found the pro1 jrides the road into two divisions, one position was feasible. Assurance? i north of Lac-la-Biche and, the other were" given that he might hope for as-1 south. The estimate of cost, which sistance, and he was also told by. Dr. 'appears to include the same items as Rutheriord that he did not need Dominion charter, as a Provincial one would do quite as welL Mr. Cross the report of Mr. Goddard, the chief items not included being steel and fin- ancing, is for the north division east states that" ilr- Gushing was present I and west of Lac-la-Biche, S7T350 and at this meeting, and Dr. Rutherford states his belief, to be the same. Mr. Gushing, however, says he has no. re- collection of any such meeting, and th.e first recollection, he nas of Mr. Clarke or his. railway project is he was introduced to him by Dr. Ruth- soft words. We understand one an-jerford in Edmonton iu November fol other beyond that. Mr. Gushing is al- lowing. It is evident that ibe. assur- so m. favor of our road being built He Mr. Clarke- received were con- iowed, but, on the contrary, the twc is strong Provincial Ownership Quite satisfactory by.him, for negotiations which control man, and will want to get the thin edge of The wedge, no matter what kind of a dea.1 is made. I have who had "been tlie cate's solicitor, and had apparently al- worked" along these lines. I have cat- -ready become Mr. Clarke's solicitor ered to all their private and personal views ,on railroads, with, the one ob- ject of getting this road built I have endeavored by every means to get Them, interested in this road, and think I have succeeded that far. Now I think it's getting'to the stage when a mile respectively, including drainage, and for the south, division. a mile. JVIr. Phillips was not, obtainable for the purpose evidence, but inasmuch as this and Mr. Goddard's extended both of which, on their face contain the honest opinions writers, were not made known Governments by Dr. "Waddell on the file seems to have been prepared before the name of .the company had been decided which was, done at the. meeting in question, make, provision for. the sidings as- IE the Act as finally. .v b The .mileage, however, was, apparent- ly settled after the bill was 'presented the House, for in a printed copy on the file the provision for fixing- the mileage is inserted- in hand writing. the length being .placed at 400 mileg Cross Aware of it. Mr. Cross states that nothing was settled until this meeting, aoid it is quite clear that Mr. Gushing had not agreed to any definite terms of -assist- ance until this meeting; but it -seems equally clear that in a general way at least, prior to the meeting, then Waddell was of the opinion af that time" that the work could be done for a mile or less. The rate of interest on the bonds instead of his being referred to as t sho i'ld h straight line, and consequent- Province, to a few ago, was .unknown to -him, and e had become acquainted with ito be a only as the promoter of an enterprise !the name of lhe Provincial seeking benefit from' the Province... whose interests-it was Mr. Cross" duty to protect? 'No answer to these'ques- tions is forthcoming.' This letter pro- duced a reply from Mr. B. R. Clarke, to'the Company monthly as the work the certifi- cate of the Government engineer. A simiiar resolution and Bill were intro- duced in respect of the Alberta R. Clarke's brother, the right of Mr. Cornwall and Mr. rhe Guaranteeing of its .bonds .to Rutherford to be kept 'advised, and stating that everything'Vas' going sat- reports from i the'extent of per mile..includ- ing branches and sidings, and to the cost of the Edmonton terminals, but his brother: inor to exceed S400.000. the mileage to exceed 350 miles, the bonds to Mr. "W. R. "Clarke" havi'ne: made rangements satisfactory to himself for ibe on January 1st, 19o9, and jto .bear a-Psr. .cent.-. Tne the sale-of the'bonds." and; was fixed at 5-per 'cent. .The Premier "I the 1S09 session coming on shortly af- moneys received to be treated as stated nhat the rate -recently had been 4 per cent, but they decided on 5 per ceiit in this case because "it-was a pioneer had to gc on .the market in competition with roads that' were guaranteed to" rue through, prairie country, easy -country settled 'Now it is quite evident that" a so- called pioneer road going into an tin- sattleft country have poorer j prcspscts of making" a revenue from ter, he and Mr, Minty spent a good deal of time in Edmonton in connec- tion -with the legislation required give effect to the'arrangements al- ready made." A good deal of anxiety was sti-own on behalf of Mr. Clarke that the least possible publicity should be.given to the legislation effecting in- corporation, xv'hlch, being in. the form in the other cases, but at the option of the company they might be paid upon traffic.receipts than one going through settled country, but that would ap- I [the completion to [of every section of. ten miles of, rail- way line, and, on completion of all the lines and terminals, any balance in the bank was to be paid the company. All of the resolutions and bills passed through all the stages at tile evening session. On the" follow- ing day there was a morning session before the prorogation, which took pear to be a very poor reason for annual fixed eharee against, it onMuarter greater the Province. made of the Government's I intention to assist railway develop- in both the North and the South During the session a asain'st the latter. .There seems no doubt whatever that the pa tlsed.. The session 01 the Legislature opened on the "14th'-of .Tunuarv. and in the speech from the throne announce- place. m afternoon, and at that morning' session a Statute Law Am- endment Act received its second and' third readings. Changing Gushing for Rutherford This A-ct dealt with numerous Acts Railway Company which were being amended, and introduced, 'wliich, after having amongst others was an amendment to ;one through the regular Railway Act, substituting "the jbill to incorporate The Alberta and of was Clarke that he 'was to receive as 'Go. rate was justified for tin's purpose tling the necessary documents to pro- inasmuch as tee road beina case of nvc three 'of the Executive Council had no engi- with. reference to the option from the syndicate. Speaking of the charter he says: "Some of our friends have ad- vised us to throw ii away, and they would get us a new one.- If we usec it or not, we propose to pay-the syn-jhad in procuring the. summarized re-flinty sent Mr. "Woods a draft mort-jbut ihere seems equally dicate as we agreed. We are (port of llr. Phillips of I3th November we: will have a chance to do business jS'oiug to or .talk business with some one or COIIle what we want, but-it win! was the same as in the case of the Jin November a week or more for consideration, and that early {that the Province's guarantee wo.i the 1st January, and some body of men.71 The Premier had lwe must keep out of the field in the left for England about the 4th of May. jmeanume. do. not feel like show- Consequently the conversation witi our nands to Faulkner and the which Mr. Cornwall refers to, others, don't you .see- We can't talk Goddard report of 2nd October, name- by Sir. Woods and Mr. Minty ir oi.her, and the character of the under- was ;be quite as valuable in one case as the 4t, f 1 _ mo.'aers or the of othsrs large ly, to have something to work on ir- .settlement of tlie necessary documents i taking need not be considered. jto fix the liabilities This }_ T-I_ T, .t-u r i i ti leas if it were built without a cootrac-ing the principle of the guarantee was hand Dr. Rutherford and Mr Cross and yet we do not feel like taking up the option until have closed up ab- Almost immediately after the meeting in Calgary between Clarkf (tor. and the reference in his report of and the members of the cabinet, the nsf November resp former had gone Winnipeg and to a former ranged with Mr. Woodman, the civil cubic feet for gradi engineer of the syndicate, to have a this confidential estimate reconnaissance survey made over the thereabouts per mile. proposed route of the .railway, and ativember Mr. Clarke and Dr. Waddell iminals. This should be omitted, be- about the same time -lie engaged Dr. :raet the members of the cabinet col- i-cause I find that you will be able tc j On March 30th. .Mr. of shsreheldsrs (Clarke tdesrapiied i'rom New York to !snd directors. Of these exceptea Minty at V.'innipeg: "Friend-has information news more need you. soon." understood to Mr. Cross ,TlOn OH 'lift dJtV ell 'Vfl5? must have -taken place as early as that Mr. Cornwall did nothing furth-- er to promote the undertaking during the "nest few months escept to .urge its merits whenever he had an oppor- tunity to discuss it with the ministers. Mr. Clarke's "Scout" There consequently was no maien'a" change in the situation when, in the- beginning of 1SJOS, a Mr. Bowen, repre- senting Mr. W. R. Clarke, of Kansas City, and referred to by Dr. Waddell, ___ Mr. Clarke's chief engineer aad con {self and his family, to consult wjih.'of the railway by the guaran-tee o: i Murray the several terminals which j him from Winnipeg the following let- jafterv.'srds 'informed Dr. Rutherford "elsewdere. I am therefore nbt al all lidential friends, as Mr. Clarke's j Mr. Woodman employed Mr. bonds. With regard to this meeting-j you will put in will be in the nature ter: land Cross, am! stated his opiniorJ "certain that .Mr. Cross has started Novembe- I deny this, and say these matters were i A Significant Letter Waddell, an eminent engineer of Kan- lectively for the purpose of arranging Jmake a separate bond issue for the! Before he Jjad returned from bis responsibility, he agreed would be leaving Edmonton in the exclusion of the operation of these j "order to get away from election wor- 'provisicns of the Railway'Act from and that bis movements might sas City, and a personal friend of him- terms of assistance for the jEdmorjton terminals, and at Fort Me Hind Mr. Minty, his solicitor, wrote j the draft Act of this Company, either Honolulu, California, approached Mr. Cornwall with of 'Winnipeg, an engineer of some er.- 'and certain other meetings as side tracks, and these will be count- a view of acquiring the Athabasca char perience in this class of work, to make there is a conflict of testimony as tc ter. Mr. Cornwall referred him to the j the survey. Mr. Goddard. first, as the pan taken by Mr. Gushing, the syndicate, and sent him to Winnipeg. giving him a letter of introduction to Mr. Minty, dated May 5th, 1908. Mr. Bowen proceeded to Winnipeg, and there obtained an option, dated in yo.yr mileage. I find, as just indicated. -that 'W. R. Clarke, Esq., States Trust Company, City, Missouri. Bee. 12. "OS. the exclusions were unobjeetJoji-i "east yet." able.. Tiie railway act provides for} the organization of the Company when Met ir. New York concludinj June, 1908, from the .members of the syndicate for the purchase of all their rights .under the Athabasca Railway Co. charter, for the sum of in cash and full paid up stock in the Railway Co., to be transferred as as the -Xi-st 100 miles of the rail. This was eight dnys before the niat- therc seems no doubt that the infovm- over the- same territory, returned about the 1st of October from his survey, and furnished Dr. Waddcl' with certain information which he had acquired. Dr. Waddell then drafter a -preliminary report, dated Octobe: al negotiations and understandings had been discussed with the Minis- were conducted and reached by Mr. ter of Public Works, who. under the Cross, or Mr. Cross and Dr. Ruther- ford without Mr. Gushing, and that at whatever period he became acquainted a report, aatea Octobe: wnatever pcnoa tie -vet oa ot .tnese pomrs tne una- 'aencc, as he- docs in Mr. Conn :jnd. for Mr. Goddard to sign. jwith the character of the demands of arrangement was as indicated by Dr. your friend, but as a result Railway A-ct, was the Minister the oversight of Provincial Railways yet on both of .these points the be to commence business 33 says as 'as far as lie remembers "he had no ar- ilatter is anxious to know that matters as is subscribed and paid. -with Mr. Clarke, or any 'are proceeding satisfactorily. Natur- 'ally he has -taken you and yo.ur asso- 'ciates largely on trusr, placing cocfi-ipany to issue bomls to the extent of The Size of the Bono's jone for torn, to go east to meet him. The Act also authorizes the com- j KG did, however, as a fact, leave for docs in Mr. -Cornwall he per mile, including branches and sidings. Of tho other companies the csst about the date of the tele- (Continued on next page) ;