The Alberta and Great Waterways Railway Scandal was a political scandal in Alberta, Canada in 1910. It resulted in the resignation of the provincial government of Alexander Cameron Rutherford over allegations of conflict of interest in the government's involvement in the financing of the Alberta and Great Waterways Railway. The scandal was instigated by the resignation of Public Works Minister William Henry Cushing from Rutherford's cabinet over disagreement with the government's railway policy, and its agreement with the Alberta and Great Waterways Railway company in particular. The Legislative Assembly of Alberta soon heard revelations of government favouritism towards the company, which had received a government charter to build a railway in northern Alberta, and a failure to oversee its operations properly. These revelations brought a large portion of Rutherford's Liberal caucus into revolt against his government, and he narrowly survived a sequence of attempts to topple his government. After his cabinet suffered further resignations, Rutherford placated the legislature by establishing a royal commission to investigate the affair.
Though he had bought peace within the legislature, machinations to bring Rutherford down continued outside of it. George Bulyea, the Lieutenant-Governor of Alberta, had harboured doubts about Rutherford's suitability as Premier since appointing him, and began to search for a replacement. He eventually settled on Arthur Sifton, the province's chief judge, and secured the agreement of most factions of the caucus for Sifton's ascension. Reluctantly, Rutherford agreed to resign, and Sifton took office. Shortly thereafter, the royal commission reported. While Rutherford and his allies were formally cleared of wrongdoing, the commission's majority report was critical of their actions during the crisis and before it (a separate minority report offered a more sympathetic interpretation of events).
Sifton would have trouble of his own when he introduced legislation to undo many of the Rutherford government's actions in relation to the affair. The legislation, which provided for the confiscation from the Alberta & Great Waterways company of money raised by the sale of government-guaranteed bonds, was first opposed by many Rutherford loyalists in the legislature and then successfully challenged in court by the Royal Bank of Canada, which held much of the money on deposit. Though Sifton's government survived and would go on to win two provincial elections, the divisions in the Liberal party caused by the scandal would not fully heal for years.
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