Baie des Chaleurs Scandal

In 1890-91, when only about 100 km of the 320 km Baie des Chaleurs Railway had been built, serious questions arose about relations between the contractors and the sponsoring governments. The railway had received subsidies from both the federal government and the Québec Liberal government, and on 4 August 1891 the Conservatives launched a Senate inquiry. It turned out that the Québec government had been bribed with its own railway subsidy, the money probably having been used to pay off election expenses. A royal commission was established by the province, and the dismissal of Honoré Mercier's government followed on 16 December 1891.