Conclusion. What Went Wrong

AuthorC. Ian Kyer
What Went Wrong
M   Jarvis bond transaction seems anomal-
ous. First and foremost is the lack of a formal written
agreement. The Jarvis proposal and covering letter where
the key f‌inancial terms were set out in a postscript stand in stark con-
trast to today’s very detailed agreements. Also of note is the lack of a
formal bidding process for the work. Then there is the appointment of
the inexperienced A.H. Pepall as an agent of the Ontario government
at a time when he had a referral arrangement with Jarvis & Company.
Finally, there is the government’s lack of due diligence in setting the
agreed-upon prices. But the times were dif‌ferent. The government
was very inexperienced, and, most importantly, none of these anom-
alies were crimes.
To understand what went wrong, we need to look at each stage of
the proceedings against Smith and Jarvis in turn.
The Investigation
The investigation got of‌f to a bad and very political start. It is accepted
practice for politicians to make allegations of incompetence, poor
judgment, and even corruption against a sitting government as part
of an election campaign. There was nothing surprising in Howard
Ferguson and his Conservatives having done so in 1923. Once elected,

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT