The Railway Builders: A Chronicle of Overland HighwaysSkelton, Oscar D. (Oscar Douglas)
History
The Railway Builders: A Chronicle of Overland Highways
Skelton, Oscar D. (Oscar Douglas)
Pacific railroads; Railroads -- Canada -- History
This seductive offer was to prove the main cause of the financial
embarrassment of the Grand Trunk. It involved at the outset a dubious
connection between company and contractor, and also for two generations
an attempt to manage a great railway at a range of three thousand
miles. So fatal did it prove that in later years each party to it
endeavoured to throw the responsibility for the initiative on the
other, and enemies of Hincks declared that he, as well as Lord Elgin,
the governor-general, had been bribed to wreck the negotiations with
the British government {73} in order to take up with Brassey. Whether
or not Hincks was first to resume negotiations in London, it was the
contractors who had already taken the initiative in America, sending a
representative to Toronto, and taking part in the elections of 1851 in
Nova Scotia against Howe. It is clear also that the British government
was unwilling to consider anything but the unacceptable Major Robinson
line. Hincks was justified in looking elsewhere for capital, but he
was not justified in binding himself to one firm of contractors,
however eminent.
Hincks returned to Canada with a tentative contract in his pocket. To
Canada, too, came Henry Jackson, a partner in the Brassey firm for this
enterprise, and one of the most skilful and domineering of the railway
lobbyists in Canada's annals, rich in such methods. At once a battle
royal began in parliament. On August 7, 1852, the Montreal and
Kingston and the Kingston and Toronto charters were proclaimed in
force; apparently the supposition of the government was that the
English contractors would simply subscribe for the bulk of the stock in
these companies. But the Canadian promoters were not willing to give
up their rights so easily; a week after the {74} books were opened,
Galt, Holton, and Macpherson subscribed between them L596,500 and seven
of their associates took up the nominal balance of the capital of
L600,000 which was authorized. Hincks met this move by bringing down a
bill to incorporate a new company, the Grand Trunk Railway Company of
Canada, and the rights of the rival claimants came before parliament
for decision.
Public-domain text, read in full here on John Shaqi.
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