alberta scandal alberta great waterways railway scandal political scandal alberta canada forced resignation liberal provincial government government accused giving loan guarantees private interests construction alberta great waterways railway substantially exceeded actual cost construction paid interest considerably market rate accused exercising insufficient oversight railway operations scandal split minister public works resigned government publicly attacked railway policy large portion liberal caucus voted defeat government alberta government survived votes largely legislature appointing royal commission investigate affair pressure lieutenant governor forced resignation replacement royal commission reported months resigned majority find cabinet guilty wrongdoing criticized poor judgment relation loan guarantees relation received provincial legislation minority report sympathetic declared allegations liberal supported fared somewhat worse personal financial involvement railway gave rise suspicious circumstances proven guilty wrongdoing provoking resignation scandal opened took years heal eventually divisions frustrated railway policy legal defeats ultimately adopted similar policy eventually built private interests money raised provincial loan guarantees liberals went elected background alberta years province optimistic ones way optimism manifested desire railroads public media politicians called rapid development new lines expansion existing ones set framework allowed anybody enter railroad business firms opposition conservatives called government direct entry industry government instead opted regime loan guarantees bonds pay year thirty year term guaranteed rate mile railway constructed legislature right increase exchange railways subject minimum rate line construction required build miles miles end established companies guarantees offered new companies company advantage alberta great waterways railway founded kansas_city company proposed build line north easterly point near west end point near guarantees called generous established companies mile miles terminal bonds paid better interest longer term years established companies bonds sale money placed bank account controlled government paid railway line constructed scandal government elected provincial election winning legislature seats new legislature met february initially sign controversy relation railway president months earlier announced line completed end ahead schedule bonds went sale london november issue following month contract ties awarded progressing planned beginning new legislative session liberal asked government series questions company guarantees minister railways premier responded questions writing began minister public works resigned cabinet conservative leader questioned rumours initially refused announcement day confirmed premier read letter resignation legislature letter gave reasons resigning disagreement government railway policy claimed developed involvement consent disagreed claim expressed regret resignation resolution february gave notice resolution rights build line directly asserted government guaranteed necessary line miles barely thirds guaranteed sufficient day alleged deputy attorney general government files bennett viewed attorney general cross strongly disputed allegation debate resolution began february public gallery opened debate explained cabinet original intention mile maximum guarantee promised easily built portions line claimed taken ill time understanding place responsibility railways department new railways department headed recounted discomfort refusal consult public works engineers actual costs constructing line relief assurance consulted claimed followed pledge seeing completed agreement government decided resign disputed version events noted relevant cabinet meetings cited report government engineer line constructed mile followed alleging privately committed government figure early november government engineer appointed accused government failing verify paid capital committing million government loan guarantees closed repeating demand government company rights build line cross government questioning sincerity quoting march speech minister public works defended government railway policy bennett attacks cross reminded legislature money paid tracks actually constructed february liberal member ally proposed amendment resolution striking proposals statement contract agreement entered government alberta judgment confidence house day amendment amendment moved liberal liberal proposed agreement lines proposed president clarke letter letter suggested offer government construction equipment assets guarantee construction amendment considered friendly government clear independent attacked government receiving par value bonds sold percent par voiced support argument pro government amendment apparent reasons support government province law making power contracts opposition government came head march conservative leader bennett spoke bennett renowned province finest hour speech earned praised physical endurance called high water mark parliamentary debate alberta bennett government handling file accusing failing properly oversee company activities claimed approached directly great financial interests intent preventing participation debate argued sale price bonds government received meant clarke associates realized profit government expense closed accusation cross sent telephone company wanted install automatic telephone system calgary agreeing reverse opposition deal exchange contribution cross campaign fund charges denied cross related affair designed damage credibility government facto house leader eve vote amendment government adopted similar tactics agriculture minister accused motivated bitterness having denied admitted applied position denied accusation requested cornwall assistance lobbying amendment came vote evening march victory government amendment passed votes addition legislature conservatives amendment opposed legislature thirty seven liberals including legislature lone socialist representative voted government cabinet confusion march cross suddenly resigned resignation quickly followed woods deputy day minister portfolio voted government motion considerable doubts government railway policy rumours circulated agriculture minister marshall minister resigned proved false marshall comment situation press legislature cross forthcoming said told asked enter cabinet accepted leading cross conclude light public conflict circumstances remain member alberta government woods deputy minister sit legislature denied resignation political motivation said received employment offer carrying times current salary public statements usual line cross acknowledging invited rejoin cabinet claimed premier offered cross resignation terms entry denied accepted offer conflict premier entry unanimously opposed fellow liberals directly accused cross having fabricated claim told agreed enter cabinet held silence march told legislature accepted said vacant cabinet post ministry public works previously held hoped fill soon meantime intended continue governing eventually acknowledged resignation march cross remained cabinet legislature following passage motion government took offensive march gave notice resolution strike provincial railway board membership deputy public works minister provincial railway engineer board power discharge government responsibility alberta railway act stocks publicly resolution announced march government supporter attempted disclose legislature ruled order speaker allegation quickly printed instead expected named attorney general event formed government accused approaching government supporters extra legislative careers offering immunity prosecution liquor license violations exchange support day riley moved motion confidence government defeated margin seventeen hitherto loyal liberals switched support rebels favourably ill member rumoured recovering illness soon way expected support government fact die taking seat government encouraged motion strike commission supervise construction corresponded closely proposal appoint royal commission gave notice resolution strike royal commission composed judges provincial supreme court march final attempt rebels defeat government failed votes resolution strike royal commission passed legislature unanimously day alberta great waterways railway scandal time legislature hands aftermath commission inquiry commission met march commissioners justices joined counsel insurgents including bennett cross cornwall accused involvement personal benefit scandal evidence heard reported great detail alberta press initial interest public long details grew tedious public engaged greatest surprise emerge commission inquiry come witnesses testify president clarke moved united_states return scheduled testimony disappearance prove government guilt eyes press prove clarke question left answer members government simple clarke worked role alberta lieutenant governor invited form province government premier fully enjoyed confidence preferred candidates including federal member parliament proved unwilling choice saw initial doubts began search potential successors obvious choice felt little enthusiasm political opinion supported including federal minister interior proprietor bulletin continued prefer found liberals favoured accept oliver possibility interest leaving ottawa suggested province chief justice liberal judge remote political offered office premier desirable interest question answered legislature entered house announced accepted resignation asked form government accepted arrangement nearly fallen apart moment loyal cross indicated accept cross remained attorney general refused appeared time resign considering matter overnight decided morning position force premier hand proved unnecessary stepped commission report commission reported legislature november findings split reports majority report justices scott harvey minority report justice majority report traced origins scandal number including federally incorporated chartered construct railway fort legal work incorporation law firm cornwall close friend personal solicitor october cornwall sold arc charter syndicate sixth share syndicate syndicate construction railway found cost mile thousand dollars mile decided undertake venture loan guarantee mile alberta government end syndicate members visited alberta cornwall introduced members cabinet negotiations syndicate government continued years time new construction estimates prepared syndicate placed cost railway eighteen thousand dollars mile february cornwall entered agreement syndicate receive stock resulting railway company secure necessary loan guarantees later changed beginning clarke appeared scene eventually acquired syndicate interest railway including purchase cornwall interest agreed shortly clarke met members cabinet calgary asserted present meeting insisted formal guarantee meeting clarke left confident receive necessary loan guarantee proceeded construction plans obtained new cost estimates railroad mile clarke engineer advised built half november cabinet led cross agreed mile guarantee majority report critical cross setting bonds interest rate percent percent stated reason proposed railroad likely difficult expensive build crossing hundreds miles wilderness response report pointed provincial guarantee mile took difficulty account need higher interest rate lure investors majority report took dim view province railway legislation built charter unlike province railways required directors resident alberta exempt requirement railway companies commence business capital paid held figure requirement met unusual manner clarke brought personal account issue company allowing meet capital requirements commence operations company authorized payment clarke account expenses incurred behalf company payment clear majority declined find cross guilty wrongdoing poor judgment findings hardly room doubt personal interest reasonable drawn circumstances related view positive denial said opinion commissioners evidence warrant finding personal interest cross findings regards cornwall similar expectation constituted suspicious circumstances point definite conclusion denied received benefit interested way enterprise held evidence establish contrary justice minority report sympathetic men declared perfectly satisfied despite contrary aware details negotiations acknowledging instances wisdom course doubtful accepted cross explanations actions labelled accusations felt similarly cornwall concluding time position advocate construction free interest long term effects selected premier effort restore party unity cabinet reflected ministers addition like judge scandal cabinet minister identified strongly railway policy voted rebels leader cabinet included members factions inspired strong opinions overly divisive late new government introduced legislation charter proceeds sale bonds held province introducing bill commitment funds confiscated northern including cornwall cross suspected premier plans money include construction northern railway opposed bill basis clarke surfaced deny charge obligations conservative leader bennett opposed stated respect private property clarke clarke bound respect province gave right charter know united_states think allow province property process law government won vote legislation signed law government immediately wrote drawing bond money royal dominion union banks funds deposited refused payment government sued provincial supreme court ruled favour subsequently requested federal government use power legislation appealed supreme court decision british council time canada highest court appeal federal government declined act council found provincial legislature authority money raised investors outside province objective liberal divisions succession partially successful increasingly distant party sought election election independent liberal opposed government fact offered campaign conservatives province agree run candidate riding conservatives declined offer defeated campaign conservatives election leader resigned seat protest exclusion new administration defeated ensuing election candidate possible supporters cross taken similar brought cabinet election liberals enjoyed period relatively free party strife conscription crisis split party
Alberta and Great Waterways Railway scandal