Beauharnois scandal
Encyclopedia
The Beauharnois scandal was a Canadian
political scandal
around 1930. The Beauharnois Light, Heat and Power Company had given $700,000 to the ruling Liberal Party of Canada
in the run-up to the 1930 federal election
in exchange for the right to change the flow of the St. Lawrence River through building an hydroelectric power station
.
The scandal "tainted" the reputation of Prime Minister William Lyon Mackenzie King
, although it was not discovered until the year after he had lost the election. Later commentators have suggested it was the "most famous" example of political bribery
in the decade.
and shipping.
Two Liberal senators, W. L. McDougald
and Haydon
, both received contributions from the power company's president, R. O. Sweezey. The donations were split between the Liberals' federal and Quebec provincial parties, and were allegedly to secure the right to divert the Beauharnois 30 kilometres west of Montreal to generate hydroelectricity
. In addition, it was later revealed that King had taken an all-expenses-paid holiday to Bermuda
paid for by Beauharnois.
In addition to giving the Liberals the $700,000, Beauharnois made a similar offer to the Conservative party, but it was believed that R. B. Bennett
had forbidden the party to accept the pay-off.
The scandal demonstrated the "emptiness and vacuity of the existing legislation" governing election campaign donations. No major changes occurred in the laws surrounding financing until three decades later, although the National Liberal Federation was created in 1932 to provide distance between party leadership and campaign fundraising.
Macleans magazine suggested that the scandal showed that both Canadian political parties had "become pensioners of selfish interests".
Montreal Light, Heat & Power
bought Beauharnois Light, Heat & Power in 1933 and continued the hydroelectric development initiated by Sweezey's. The first 16 units of the Beauharnois Hydroelectric Power Station
were installed and commissioned between 1932 and 1941.
In Quebec, the scandal fueled the cause of politicians — such as T.-D. Bouchard
and Philippe Hamel
— demanding the end of the so-called "electricity trust". Although the scandal did not topple the provincial government of Louis-Alexandre Taschereau
, who was reelected for a third term in the Quebec general election of 1931
, economic historian Albert Faucher wrote that it focused the public's attention on "the issue of electricity", which led a decade later to the nationalization
of MLH & P and the establishment of Hydro-Québec
.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
political scandal
Scandal
A scandal is a widely publicized allegation or set of allegations that damages the reputation of an institution, individual or creed...
around 1930. The Beauharnois Light, Heat and Power Company had given $700,000 to the ruling Liberal Party of Canada
Liberal Party of Canada
The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative...
in the run-up to the 1930 federal election
Canadian federal election, 1930
The Canadian federal election of 1930 was held on July 28, 1930 to elect members of the Canadian House of Commons of the 17th Parliament of Canada...
in exchange for the right to change the flow of the St. Lawrence River through building an hydroelectric power station
Beauharnois Hydroelectric Power Station
The Beauharnois Hydroelectric Power Station is a run-of-the-river hydroelectric power station along the Saint Lawrence Seaway on the Saint Lawrence River, in Quebec, Canada. The station was built in three phases, and comprises 38 turbines, capable of generating up to of electrical power...
.
The scandal "tainted" the reputation of Prime Minister William Lyon Mackenzie King
William Lyon Mackenzie King
William Lyon Mackenzie King, PC, OM, CMG was the dominant Canadian political leader from the 1920s through the 1940s. He served as the tenth Prime Minister of Canada from December 29, 1921 to June 28, 1926; from September 25, 1926 to August 7, 1930; and from October 23, 1935 to November 15, 1948...
, although it was not discovered until the year after he had lost the election. Later commentators have suggested it was the "most famous" example of political bribery
Bribery
Bribery, a form of corruption, is an act implying money or gift giving that alters the behavior of the recipient. Bribery constitutes a crime and is defined by Black's Law Dictionary as the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or...
in the decade.
The money
The initial proposal to divert the river had met with opposition from rival hydroelectric companies, as well as shipping-related companies concerned about the impact on navigationNavigation
Navigation is the process of monitoring and controlling the movement of a craft or vehicle from one place to another. It is also the term of art used for the specialized knowledge used by navigators to perform navigation tasks...
and shipping.
Two Liberal senators, W. L. McDougald
Wilfrid Laurier McDougald
Wilfrid Laurier McDougald was a Canadian senator.Born in Alexandria, Ontario, he was educated at McGill University and Queen's University and practiced medicine in Montreal...
and Haydon
Andrew Haydon (senator)
Andrew Haydon was a Canadian lawyer and senator.Born in Pakenham, Ontario, the son of James Haydon and Eleanor Sadler, he received a Master of Arts degree in 1893 and a Bachelor of Law degree in 1895 from Queen's University. He graduated from Osgoode Hall Law School in 1897 and was soon after...
, both received contributions from the power company's president, R. O. Sweezey. The donations were split between the Liberals' federal and Quebec provincial parties, and were allegedly to secure the right to divert the Beauharnois 30 kilometres west of Montreal to generate hydroelectricity
Hydroelectricity
Hydroelectricity is the term referring to electricity generated by hydropower; the production of electrical power through the use of the gravitational force of falling or flowing water. It is the most widely used form of renewable energy...
. In addition, it was later revealed that King had taken an all-expenses-paid holiday to Bermuda
Bermuda
Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...
paid for by Beauharnois.
In addition to giving the Liberals the $700,000, Beauharnois made a similar offer to the Conservative party, but it was believed that R. B. Bennett
R. B. Bennett
Richard Bedford Bennett, 1st Viscount Bennett, PC, KC was a Canadian lawyer, businessman, politician, and philanthropist. He served as the 11th Prime Minister of Canada from August 7, 1930, to October 23, 1935, during the worst of the Great Depression years...
had forbidden the party to accept the pay-off.
Fallout
Discovered in 1931, two years after the event, the scandal occurred during one of the brief periods in the inter-war years while King was not Prime Minister; he noted that it cast his party into "the valley of humiliation", and suggested he might resign from politics over the affair. However he ran, and was elected, in the 1935 election and held onto the country's leadership for the next 13 years. Haydon, on the other hand, was dismissed from his position as campaign treasurer, and McDougald was forced to resign from the Senate.The scandal demonstrated the "emptiness and vacuity of the existing legislation" governing election campaign donations. No major changes occurred in the laws surrounding financing until three decades later, although the National Liberal Federation was created in 1932 to provide distance between party leadership and campaign fundraising.
Macleans magazine suggested that the scandal showed that both Canadian political parties had "become pensioners of selfish interests".
Montreal Light, Heat & Power
Montreal Light, Heat & Power
The Montreal Light, Heat and Power Company was a utility company operating the electric and gas distribution monopoly in the area of Montreal, Quebec, Canada until its nationalization by the government of Quebec in 1944, under a law creating the Quebec Hydroelectric Commission, also known as...
bought Beauharnois Light, Heat & Power in 1933 and continued the hydroelectric development initiated by Sweezey's. The first 16 units of the Beauharnois Hydroelectric Power Station
Beauharnois Hydroelectric Power Station
The Beauharnois Hydroelectric Power Station is a run-of-the-river hydroelectric power station along the Saint Lawrence Seaway on the Saint Lawrence River, in Quebec, Canada. The station was built in three phases, and comprises 38 turbines, capable of generating up to of electrical power...
were installed and commissioned between 1932 and 1941.
In Quebec, the scandal fueled the cause of politicians — such as T.-D. Bouchard
Télesphore-Damien Bouchard
Télesphore-Damien Bouchard was a politician in Quebec, Canada.Born in Saint-Hyacinthe, Quebec, he was the mayor of the municipality from 1917 to 1930 and from 1932 to 1944 and president of the Federation of Canadian Municipalities in 1918...
and Philippe Hamel
Philippe Hamel
Philippe Hamel was a nationalist and progressive politician in Quebec, Canada.-Member of the legislature:Hamel entered politics to achieve the nationalization of all privately-owned electric companies...
— demanding the end of the so-called "electricity trust". Although the scandal did not topple the provincial government of Louis-Alexandre Taschereau
Louis-Alexandre Taschereau
Louis-Alexandre Taschereau was a the 14th Premier of the Canadian province of Quebec from 1920 to 1936. He was elected four times, the first in 1900, in the riding of Montmorency. He was also a member of the Parti libéral du Québec...
, who was reelected for a third term in the Quebec general election of 1931
Quebec general election, 1931
The Quebec general election of 1931 was held on August 24, 1931 to elect members of the Legislative Assembly of the Province of Quebec, Canada. The incumbent Quebec Liberal Party, led by Louis-Alexandre Taschereau, was re-elected, defeating the Quebec Conservative Party, led by Camillien Houde.It...
, economic historian Albert Faucher wrote that it focused the public's attention on "the issue of electricity", which led a decade later to the nationalization
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...
of MLH & P and the establishment of Hydro-Québec
Hydro-Québec
Hydro-Québec is a government-owned public utility established in 1944 by the Government of Quebec. Based in Montreal, the company is in charge of the generation, transmission and distribution of electricity across Quebec....
.
See also
- Montreal Light, Heat & PowerMontreal Light, Heat & PowerThe Montreal Light, Heat and Power Company was a utility company operating the electric and gas distribution monopoly in the area of Montreal, Quebec, Canada until its nationalization by the government of Quebec in 1944, under a law creating the Quebec Hydroelectric Commission, also known as...
- Beauharnois Hydroelectric Power StationBeauharnois Hydroelectric Power StationThe Beauharnois Hydroelectric Power Station is a run-of-the-river hydroelectric power station along the Saint Lawrence Seaway on the Saint Lawrence River, in Quebec, Canada. The station was built in three phases, and comprises 38 turbines, capable of generating up to of electrical power...
- History of electricity in Quebec