A New Direction, 1906-18
Author | C. Ian Kyer |
Pages | 123-158 |
M C hapter N
A NEW DIRECTION,
I B president of Canada Permanent Mortgage Corporation,
issuedawarn ingtohissha reholdersthatwasverymuch inthesca llycon
servative tradition of William Gooderham and James Gooderham Worts.
Although it was an unrivalled period of expansion Beay noted that
“speculation, high prices, extravagant living and extended credits” were
prevalent. He advised that it was not a “time for the mariner at the helm of a
businessshiptothrowoutare efinhismain sailbutrathertodoublereefit
against storms that may be gathering.”
David Fasken did not share his mentor’s caution. Having mastered busi
nessmanagementhei ntendedtograspthe helmofthe lawrmand sailit
in anew direc tiona squ icklyas possible by applyingt hesa mepri nciples
and rigour. But this was a partnership and he needed his part ners’ consent.
So he began by asking them to commit the terms of their partnersh ip to
paper. David wanted the new agreement to give formal recognition to the
enormousc hanges that had occurred in the r msi nce to make it
cleart hatalthough Beaya ndBlackstock remained the rstna meson the
leerheadhewasinchargeNotonlywouldawrienagreementhavebeen
seen as unnecess ary just a few short years earlier, given the ties that knit the
partnerstogetherbutthe preciseterms ofthisdocumentwouldnever
have been acceptable to those partners.
At rst it seemed that David wouldprevail O n September he
convincedBeayChadwickRiddellHarper Armstrong AlexFaskenand
ナニネLawyersFamiliesandBusinesses
Hugh Rose to join him in signing a par tnership agreement that made them
copartnersforveyearsinthepracticeandprofessionofbarristerssolici
torsandnotariespublicunderthermnameofBeayBlackstockFasken
RiddellUnfortunatelyforDavidtobe bindingtheagr eementrequiredt he
signatures of all the par tners and two of them, Percy Galt and Ross Gooder
ham, refused to sign. They saw that David’s proposal would give him a
levelof control that evenBeay had never enjoyedThe elder Faskenwas
describedintheagr eementasthemanagerofthebusinessoft hermAs
such he could decide what line of work was to be undertaken by each part
ner, severely curtailing their i ndependence. They also saw that they were
todedicate themselves to the practice oflaw there were to beno more
socialbueriesor parttimepractitionerswhora notherbusines sesonthe
side. Partners were no longer to be free to come and go as they pleased. Each
would be entitled to one month’s holiday during the year. If absent beyond
thatthedelinquentpartnerwastopaytothermsuchamountforeachday
as the majority in interest of the par tners thought appropriate. Riddell was
permied to take two months without deduction on condition that if he
shallarg ueanycas ein Englandbefore thePrivy Councilduri ngthesaid
months he shall not claim any extra vacation on th at account.”
Several of the provisions seem to have been intended to ensure that t here
would not be another George Blackstock. The agreement stated that no part
ner was to be a candidate for or contest any municipal, parliamentary, or any
other public election and that the practice was to be carr ied on in the City of
Torontoandeachpartnerwasrequiredtoresidethere SomeonelikeBlack
stockwhohadpoliticalaspirationsandwhospentliletimeinTorontowas
no longer welcome. Ironically it was probably Fasken’s insistence on these
measures that brought Blackstock back to Toronto and his law practice. In
andweagainseehisnameascounselforthermi nseveralcases
that made their way to the Supreme Court of Canada. But his renewed dedi
cationtohis Torontolawpracticewasrelativelyshortlivedand byhe
had dropped from sight once again.
Even David Fasken himself was not to be entirely im mune from the
requirementsoutli nedint heagreementHe waspermiedto maintain his
arrangement with the Excelsior Life Insura nce Company and to receive “the
emoluments therefrom,” provided that if he looked after the business of that
company during the day he had to arrange for a proper retainer to be paid to
thelawrmtocompensateitforhistime
ANewDirectionナニノ
Beaywasshown asa partnerbuthisvalue wasin goodwillhis name
and contacts He would not be required to perform any actual solicitor
workbutwastousehisbestendeavourstoprocurebusinessfortherm
and to giveall of the i nuencehe could towards the promotion of the
interestsof thermHewas nothowevertointerfere with Davidsoper
ationofthermHecouldretainanyfeesfromactingasadirectorortrustee
and any amounts that he received from any other busine ss outside of the
rmwithwhichhemightbeconnectedhardlysurprisingwhenonenotes
that hed idnot receive any income from the rm His emolumentsand
“the use of a room at the north east end of the building without cha rge” were
all that he got.
In an aempt to placate Ross Gooderham the agreement also made
special provisions for him. On George Gooderham’s death, Ross had been
appointedexecutoroftheestateHewastobepermiedtoretainanycom
missions to which he was entitled as executor as well as any direc tor’s fees
payable to him for serving on any company’s board in connection with the
estateHewas howevernottoparticipatei nany feesreceivedby the rm
from his father’s estate.
Thenetprotsoft hepracticewereto bedividedamongthe partnersas
follows:
OfthersteachyearDavidFaskenandWilliamRenwickRid
dellwereto receiveeachAlexFaskenandall others
eitheror
Prots over were to be divided in varying percentages de
pending on the level ofprot achieved For exampleif the prots fell
betwee nandDav idFaskenan dRiddellwou ldeach
get percent but if the protswere over they received
only percent In this wayFasken andR iddellwouldbe compen
satedfort hebase businesst hatthey broughtto therm butthere was
some incentive to the younger partners to work hard and bring in new
business.
Thedra ftagreement createda rippleof discontentt hroughoutthe
rmManybegantoactivelyseekoutotheropportunitiesWithhisfatherno
longeractivein the rmand DavidFaskenin chargeBeayssonCharles
William, left. Young Robert McKay also left. These departures paled in com
parisonwiththelossthatoccurredonOctoberhoweverwhenRid
dell accepted an appointment to the bench.With NesbigoneandG eorge
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