The Story of Newfoundland

by Earl of Frederick Edwin Smith Birkenhead

It may easily be imagined that to the ordinary voter the Conservative personnel proved somewhat disquieting. Success at the polls would have enabled Mr Reid to say, with Louis XIV.—"L'Etat, c'est moi." Amid extraordinary excitement the election was fought in the autumn of 1900 on the sole issue of the Reid contract, and resulted in a sweeping victory for the Liberal party, supporting Mr Bond in his policy as to Mr Reid's monopolies.

The Reid Contract has been dealt with at this length at a sacrifice of proportion which the writer believes to be apparent rather than real. Newfoundland is newly emerged from infancy. The story of its childhood is relatively uneventful, but the political experiments of its adolescence must be of absorbing interest to all students of politics.

In 1901 an Act was passed giving sanction to a new agreement with Mr Reid in regard to the railways, and incorporating the Reid Newfoundland Company. Under the agreement the sum of one million dollars was to be paid to him in consideration of the surrender by him of the right to own the railway at the end of 1938; and 850,000 dollars instead of 2½ million acres of land to which he had become entitled as a bonus for undertaking to operate the railway until 1938. He still had, however, claims in respect of certain rolling-stock and equipment that had been provided under earlier contracts; and also claims arising through the surrender of the telegraphs. All these were submitted to arbitration, resulting in awards to Mr Reid of 894,000 dollars and 1½ million dollars respectively. However, under the new arrangement, Mr Reid ceased to be the virtual owner of the railway system; and became merely a contractor for its operation. The Reid Newfoundland Company, by agreement with Mr Reid, and with a capital of 25 million dollars, came into possession of over 2½ million acres of land, with timber, mineral, and other rights thereon, and took over all existing contracts for working the railway, and mail and steamboat services of the colony, including St. John's Dry Dock and the St. John's tramways, as well as powers for electric lighting in the capital. The new Company commenced operations on September 1st, 1901.

With the beginning of the twentieth century was inaugurated an epoch of political as well as economic progress in the history of the island. The numerous and widespread activities of the new enterprise gave a great impetus to the colony: it ensured the efficient working of the railway, and gave employment at a good wage to an army of working men in the various branches, and also in connection with the flotilla of steamers that were run. Other spheres of activity were gradually opened up, e.g. the establishment of a sawmill to furnish the timber necessary for the various needs of the scheme, the opening of a granite quarry to supply material for bridge building and paving the streets of the capital, the development of a slate area and oil boring, coal mining, the construction of a hotel in St. John's, etc. The expansion of the undertaking increased from year to year, and included such projects as the establishment of flour mills, pulp and paper mills, etc. Next to the Government itself, the Reid Company became the largest paymaster in the island.[52]

Other factors contributing to the material advancement of the country were the development of the iron mines at Belle Island, and the production of pulp and paper by the "Anglo-Newfoundland Development Company," the initiators and controllers of which were Messrs Harmsworth, the well-known newspaper proprietors. This company was followed soon afterwards by the Albert Reed Company of London.

A few of the main events in the recent history of the colony may now be referred to; these, taking us down to the Great War, will suitably conclude the present chapter. First may be mentioned a curious development in the political arena. In 1902 the Ministerial candidates suffered a complete defeat in a by-election; and this result was attributed to two causes—in the first place, deficient fishing returns, and secondly, popular dissatisfaction at the monetary gains secured by Mr Reid. The contest of 1904 was further complicated by the formation of a number of factions in the ranks of the Opposition. The latter eventually joined their forces under five leaders, and, including all elements hostile to the party in power, took the field against the Bond-Morris Government. But the sympathies of the people were alienated from such an unusual combination, composed as it was of antithetical constituents, and when it was in addition rumoured that their aim was to effect a union with Canada, they suffered a severe reverse at the elections. Only Mr Morine was returned for his constituency; and he had no more than five followers in the Assembly. In these circumstances it was thought that Sir Robert Bond's administration was ensured a long term of office. But in July 1907 Sir Edward Morris, then Minister of Justice, resigned through a disagreement with the Premier on a question of the amount of wages to be paid to the employees in the Public Works. The Opposition under Mr Morison (succeeding Mr Morine, who had shortly before left Newfoundland for Canada) co-operated with leading supporters of Sir Edward Morris and invited him to become the leader of a united party. He accepted the offer, and issued a manifesto in March 1908, indicating his policy. The number of his adherents increased, as a result of his efforts in the Assembly. In the following November the quadrennial general election took place, which was vigorously—indeed bitterly—contested; and the result was a tie, eighteen supporters having been returned for Sir Robert Bond, and eighteen for the Opposition—a unique occurrence apparently in the history of self-governing colonies. The success of Sir Edward Morris was regarded as remarkable, in view of several disadvantages from which he suffered in the eyes of large sections of the population, e.g. his being a Roman Catholic (every Premier during the preceding half century had been a Protestant), his alleged sympathy with Mr Reid, and his alleged support of union with Canada. The Governor, Sir William MacGregor, having been requested by Sir Robert Bond to summon the Legislature, was then required by him, on the very eve of the session, to dissolve it, without giving it an opportunity to meet. The Governor refusing to do this, Sir Robert Bond, conformably to usage, resigned along with his cabinet. Sir Edward Morris was accordingly called upon to form a ministry; but at the meeting of the Assembly the attempt to elect a Speaker failed, owing to the opposition of the Bond party. The Governor next endeavoured to obtain a coalition Ministry, but failed, and a dissolution was granted (April, 1909). At the election in May the Morris administration was returned with a substantial majority—the new ministry for the first time in the history of the island consisting entirely of natural-born Newfoundlanders. The course adopted by the Governor, who had been charged by followers of Sir Robert Bond with partisanship and unconstitutional conduct, was thus vindicated by the election, and also approved by the Imperial authorities. In a despatch from the Colonial Office, November 14th, Lord Crewe observed:

"... It will be learned from my previous despatches and telegrams that your action throughout the difficult political situation, which was created in the colony by the indecisive result of the last general election, has met with my approval, but I desire to place publicly on record my high appreciation of the manner in which you have handled a situation practically unprecedented in the history of responsible Government in the Dominions. I may add that I consider your decision to grant a dissolution to Sir Edward Morris—which has, I observe, been adversely criticized in a section of the Newfoundland press—to have been fully in accordance with the principles of responsible Government."

In 1913 the growing prosperity of the fish trade was still further increased by the passing of the new United States tariff law, which admitted fish to the United States free of duty. Further, the opening of the Panama Canal made possible the establishment of new markets.

Now we come to the next momentous event in the history of modern Newfoundland, as it is in that of the modern world generally—namely, the outbreak of the Great War in August 1914. The colony, like all the other British dominions and possessions, was fully alive to the justice of the British cause, and, like the others, was resolved as a faithful and dutiful daughter to contribute to the military, naval, and material resources of the Mother Country. This manifestation of colonial association and unity was a remarkable feature throughout the war, and will ever be memorable as a token of the undying bonds that unite the scattered constituents of the British Empire, and of the common feelings and ideals that inspire the various sections of the British family. Despite doubt and solicitude as to the effect on trade, especially on the fish markets, on which Newfoundland is so much dependent, the colony devoted itself wholeheartedly to the prosecution of the war.

In September 1914 a special war session of the Legislature was held, and several measures were passed, making provision for the raising of a volunteer force of 1,000 men, for increasing the number of Naval Reserve from 600 to 1,000 men, and for raising a loan (which was subsequently furnished by the Imperial Government) for equipping and maintaining the projected contingents. It may be pointed out here that about the end of the nineteenth century the colony, desiring to participate in the obligations—and indeed privileges—of Imperial defence, took steps to establish a Royal Naval Reserve. From 1900 a number of men volunteered as reservists, and entered for six months' training on one of the vessels of the North American and West Indian squadron. In 1902 a training ship, H.M.S. Calypso, was stationed in St. John's harbour, where the 600 men—the number proposed—might duly complete their training. Before the war the Naval Reserve establishment amounted to 580. There were besides local Boys' Brigades, but no military force whatever.