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In 1894, Bond was charged with bribery and corruption.
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Newfoundland's two commercial banks failed in 1900.
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In 1895, Bond secured a long-term loan to prevent the bankruptcy
of the Newfoundland treasury.
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In 1897, Bond, as the new Liberal leader, became the Leader of the Opposition.
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He became Prime Minister of Newfoundland in March 1899.
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Bond Moves Past Bribery Charges, Becomes Prime Minister
From the files of The Gazette October 21, 1999.
This is the second of a four part series on the life and times of Sir Robert Bond, one of the most influential
politicians in Newfoundland history.
After four years of relative prosperity, Prime Minister William Whiteway called a general election for
Nov. 6, 1893. He and his party were returned with an overwhelming majority winning 23 of 36
seats. Robert Bond was re-elected by the voters of Trinity.
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Sir Robert Bond.
Sir Robert Bond in the uniform of the Imperial Privy Council. He was
appointed Imperial Privy Councillor in 1902.
Courtesy of the Centre for Newfoundland Studies Archives
(Coll - 237), Memorial University of Newfoundland, St. John's,
Newfoundland.
(39 KB).
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The Conservative Party did not accept its defeat lightly. On Jan. 6, 1894, it filed petitions in the
Supreme Court against 15 of the successful Liberal candidates charging them with bribery and
corruption under the Corrupt Practices Act. One of those charged was Bond. His case came before
the Supreme Court and on July 25 he was unseated as member for Trinity and barred from running
for the election to the House of Assembly again. So, too, was Whiteway who had resigned as prime
minister on April 11 when the governor refused to grant his request for a dissolution of the House.
The governor, Sir Terence O'Brien, invited Augustus Goodridge, the Conservative leader in the
House of Assembly, to form a new administration. He agreed even though the Conservatives had only
12 seats in the legislature to the Liberals' 22.
During the spring and summer of 1894 more of the Liberal members were found guilty under the
Act, unseated and disqualified from running again. However, other Liberals kept being elected in
their place in the by-elections which followed. Goodridge held on to power throughout the summer
and fall by keeping the House of Assembly prorogued. It was Nov. 12 before the last by-election
was held, and when it was over the Conservatives had made a net gain of one seat from the 1893
general election results.
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Robert Bond around the 1890s.
Courtesy of the Centre for Newfoundland Studies Archives
(Coll - 237), Memorial University of Newfoundland, St. John's,
Newfoundland.
(39 KB).
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It was another month before Goodridge resigned as Prime Minister. His decision was influenced
more by the failure of Newfoundland's two commercial banks two days earlier than by the standings
in the legislature. On Dec. 10, 1894, the Union and the Commercial banks did not open for business,
a result of a demand by certain depositors that notes issued by the banks be cashed. As much of the
banks' collateral was tied up in the truck system of commerce that operated in much of the
Newfoundland fishery, there was no ready cash to meet these demands. The collateral was in the fish
waiting to be sold to European markets. The run on the banks resulted in the bankruptcy of a
number of mercantile firms, the loss of people's savings and the permanent closure of both banks.
It was Goodridge's inability of procure a loan in Great Britain to stave off the imminent bankruptcy of
the colonial treasury, and with it the Newfoundland economy, that caused his resignation. On Dec.
13, Daniel Greene, the Liberal leader in the House of Assembly, was asked by the Governor to
become Prime Minister. He was able to secure a short-term loan to stabilize the situation, but it was
recognized by all concerned that his administration was only a caretaker until the necessary legislation
could be passed to allow Whiteway, Bond and others who had been disqualified to stand once again
for election to the House of Assembly. The Disabilities Removal Act was passed in early February
1895, Greene resigned a few days later and Whiteway was sworn in as Prime Minister for the third
time.
Whiteway re-appointed Bond as Colonial Secretary and in September he was returned
to the House of Assembly by acclamation as member for Twillingate. Jabez Thompson
had resigned his seat to allow Bond to run there; Bond would represent Twillingate
for the rest of his political career.
Bond spent the spring and summer of 1895 trying to find a way out of the precarious financial
situation precipitated by the bank crash. He went to Ottawa to talk to Canadian officials about
confederation between Newfoundland and Canada but that came to naught when Canada refused to
assume Newfoundland's public debt. Bond was able to secure a loan from a Montreal brokerage
house but he was forced to pledge his own property and credit as collateral. Several other attempts
to negotiate loans in Canadian and American markets failed, but he was eventually able to acquire a
long-term loan and a short-term debenture in London. In return Newfoundland had to agree to
several austerity measures including a reduction in public spending and attempting to pay off the
public debt.
The two years that followed were difficult times for the Whiteway administration. A poor fishery
resulted in less exports and a subsequent decline in government revenues, which made the cuts in
public spending demanded by the lending institutions all that more necessary and widespread. It was
in the midst of this economic downswing that Whiteway took the Liberal Party into a general
election. The Liberals lost to a rejuvenated Conservative Party under the leadership of James S.
Winter. Whiteway was personally defeated and when the House of Assembly opened Bond was
leader of the Liberal Party and Leader of the Opposition.
The legislative sessions of 1898 and 1899 were mainly concerned with what came to be known as
the Reid Contract. For the sum of $1,000,000, Robert G. Reid acquired a 50-year monopoly on the
operation of the Newfoundland railway (and ownership after 50 years), ownership of the St. John's
dry dock and telegraph system, the right to operate the coastal boat service with a government
subsidy, and 5,000,000 acres of crown land. Bond opposed the terms of the contract, but as Winter
had a majority of members in the House, it passed the legislature. Public opposition to the contract
became widespread but even a petition containing more than 22,000 names had no influence on the
actions of the government.
The railway contract may have contributed to its unpopularity, but the Conservative Party managed
to self-destruct on its own, without a general election. Prime Minister Winter had the personal
support of about half the caucus, while the rest were loyal to the Alfred B. Morine, the Minister of
Justice. Morine desperately wanted to be Prime Minister and had an agreement with Winter that
would see Winter resign as Prime Minister by the end of 1899, be appointed Chief Justice upon the
retirement of Sir Frederick Carter, and Morine would succeed as Prime Minister. Their deal
unravelled before it could be implemented, however, and in February 1900 enough of Morine's
supporters voted with the opposition in favour of a want of confidence motion in Winter's
administration to have the motion succeed. In March the Governor invited Bond to become Prime
Minister.
November, 2000.
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