NARRATIVES OF SASKATOON

1882-1912

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immediate steps were taken to install an electric light plant, water works and sewer. At the time the City had quite an attractive financial ar- rangement with the Union Bank which, in return for our transferning our account from the Bank of Hamilton to them, advanced money at the same rate of interest as the bonds were bearing, 5 per cent. The result was that the Council were probably not so anxious to sell the bonds as they other- wise would have been if they had not got the accommodation at the bank. They carried along their work, borrowing money from the bank on the strength of their bonds. At the termination of 1906 Mr. Clinkskill dropped out and I was again elected mayor for 1907. It was a time of general strin- gency and Saskatoon bonds could not be sold except at a tremendous sacri- fice. They were offered at 82c or 83c but we could not find any market (1). In May the manager of the Bank sent a messenger to my office with the information that I was not to issue any more cheques. At the time we had Second Avenue opened up for sewer and water from 19th Street up past the present Hudson's Bay Co.'s store. We had all the pipes laid. We also had a pumping station and electrical station down where the water plant is now. The building was up, but had no roof on it and the machinery was piled around outside. Everything was upset owing to weather conditions and now we had no credit and no money. The bank issued these instruc- tions with the result that Dr. Willoughby and myself went to Winnipeg and we interviewed the General Manager of the Union Bank, Mr. Shaw, and I complained to Mr. Shaw about it being unfair to take our account and then cut it off and asked what we could do. I told him we had all those un- completed works and if we could get the electrical plant going we would have sufficient money coming in from the revenue of it to probably pay our staff. Mr. Shaw said, "Well, Mr. Wilson, you will just have to close down for we cannot give you any more money. I said we could not close down and would give our account to some other bank. I thought we would not have any trouble to get another bank so Dr. Willoughby and myself made a tour of some of the bank managers in Winnipeg and they all told us to go back home and see our local banks. We laid our proposition before the managers at home and nearly every one of them said they thought we could get the accommodation. First we wanted $125,000.00 to pay off the Union Bank. We started out for that and then to get another $125,000.00 until such time as we could market the 31250,000.00 of bonds. The managers had to submit the proposition to Head Offices and every one was refused. The Bank of Hamilton was the first bank we did business with during my term, it was the first bank in the City, and they also refused. In 1906 the account was taken from the Bank of Hamilton, as I have said, and I did not blame them for refusing. However, after the Union and every bank in the City had refused the City account, I went in to Mr. Munson, then manager, and said, "You wire Mr. Turnbull, General Manager of the Bank of Hamil- ton, and tell him this is a personal matter and I want $40,000.00 for Saska- toon." The wire came back "You can loan $30,000.00 to Saskatoon on Wil- son's personal covenant" and I got the money. In about three weeks Mr. Turnbull came west and I met him and said: "We are very grateful for what you have done but we want 310,000.00' more and the rate of interest reduced 1 per cent.," and he granted it. During that time I was making settlements by note with the suppliers of machinery, etc., which had been bought on time. The Allis Chalmers Bullock Company supplied the elec- tric machinery we owed them $11,OOO.00 or $12,000.00 and settled their ac- counts by note. The first three months they accepted same and during the second three months they hestitated to renew hut finally accepted the notes. By this time we had the electric plant running. In September, 1907, the Lieutenant Governor of Saskatchewan, Mr. Forget, opened the first electric light plant. The following June the Allis Chalmers Company refused the third time (1) The main reason so, far as my recollection goes, why we could not sell our bonds, was the general financial depression on in 19077 and 1908. Then, too, they were instalment debintures, that is, principal and interest were all amortised, and were on that account not desired by the investor. Page 91

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