New Brunswick Bribery Scandal
During the 1926 election, Gould's opponent accused him of having bribed the Premier of the Canadian province of New Brunswick in 1918 in order to secure concessions for the Saint John Valley and Quebec Railway, of which Gould was the major investor. Gould did not deny that a bribe of $100,000 was paid, but he claimed this was done by his associates without his knowledge, and that an additional $50,000 asked for by the Premier was refused, leading to the collapse of the railway. Gould claimed that bribery was standard practice in New Brunswick for American companies, and he was more a victim than perpetrator in this instance. The bribery charges led to a resolution by Democratic Senator Thomas J. Walsh of Montana that would have prevented Gould from being seated in the Senate, but this was defeated and Gould was sworn in. A Senate sub-committee was formed to investigate the charge, however, and Gould was exonerated.
Read more about this topic: Arthur R. Gould
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