Alberta and Great Waterways Railway scandal

The Alberta and Great Waterways Railway Scandal was a political scandal in Alberta, Canada in 1910, which forced the resignation of the Liberal provincial government of Alexander Cameron Rutherford. Rutherford and his government were accused of giving loan guarantees to private interests for the construction of the Alberta and Great Waterways (A&GW) Railway that substantially exceeded the actual cost of construction, and which paid interest considerably above the market rate. They were also accused of exercising insufficient oversight over the railway's operations.

The scandal split the Liberal Party: Rutherford's Minister of Public Works, William Henry Cushing, resigned from his government and publicly attacked its railway policy, and a large portion of the Liberal caucus voted to defeat the government in the Legislative Assembly of Alberta. Although the government survived all of these votes, and Rutherford largely placated the legislature by appointing a royal commission to investigate the affair, pressure from Lieutenant-Governor George Bulyea forced Rutherford's resignation and his replacement by Arthur Sifton.

The royal commission reported months after Rutherford had already resigned. The majority did not find Rutherford or his cabinet guilty of any wrongdoing, but criticized them for poor judgment, both in relation to the loan guarantees and in relation to the exemptions the A&GW received from provincial legislation; a minority report was more sympathetic, and declared the allegations against them "disproved". James Cornwall, a Liberal backbencher who supported Rutherford, fared somewhat worse: his personal financial involvement in the railway gave rise to "suspicious circumstances", but he too was not proven guilty of any wrongdoing.

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