Machray Scandal‪.‬

On Wednesday, August 24, 1932, Winnipeg newspapers carried a brief story, stating that shortages had been discovered in the trust accounts of the University of Manitoba. The next day it was reported that Winnipeg lawyer John A. Machray, the man who had managed the institution's investments for 25 years, and the man who had been Chairman of the Board of Governors until the week before, had been charged with the theft of "moneys and valuable securities, the property of the University." (1) John Alexander Machray was a highly respected and trusted member of the Winnipeg establishment; the news that he was charged with theft was greeted with shock. Until the appearance of the news stories, no one, with the exception of a handful of people in the Government, the University, and Machray's law firm, had any idea there was a problem. Certainly, no one but Machray himself had any idea of the true size of the losses. As the days and weeks passed, as estimates of the amount lost mounted to a final total of $1,800,000, and as it became clear that Machray's financial ruin involved not only the University but the Anglican Church and many small investors as well, shock turned to outrage and panic.