June 10, 1903

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The MINISTER OF RAILWAYS AND CANALS.

They have not used their power to encumber it and they are using it now. We fall short there to the extent of $3,000 per mile in getting a security by a first mortgage in respect to this sixty odd miles.

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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LIB

William Ross

Liberal

Mr. ROSS (Ontario).

Does the security include rolling stock and equipment ?

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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?

The MINISTER OF RAILWAYS AND CANALS.

Yes. The mortgage will be given upon the property of the Canadian Northern Railway, will cover its whole line, its branches, its undertaking, and property of every kind and description without exception of any kind or nature whatsoever.

The position of the encumbrances now existing on the Canadian Northern Railway line, is, as I am advised, as follows : On

the main line from Port Arthur to the Rainy river there is a first charge of $20,000 per mile.

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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IND

William Findlay Maclean

Independent Conservative

Mr. MACLEAN.

Who owns that mortgage-the public ?

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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The MINISTER OF RAILWAYS AND CANALS.

I presume the public; yes. On all lines in Manitoba there is a first charge of $10,000 per mile. This first charge of $10,000 consists of two charges, one of $8,000 and one of $2,000, aggregating $10,000. That is the position as between Port Arthur and the Rainy river, and all the lines in Manitoba. The $20,000 per mile from Port Arthur to Rainy river is collaterally secured by a charge on the lines in Manitoba next after the $10,000 per mile above mentioned. So that in point of fact, our position as guarantor of these bonds, so far as the lines from Port Arthur to Rainy river and the lines in the Manitoba district as well are concerned, would be this : We would have before us encumbrances to the extent of $20,000, which we would have to

retire or answer for, with the single exception of the $10,000 mortgage on the sixty odd miles between Grandview and the western boundary of Manitoba.

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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John William Bell

Mr. BELL.

There is a first mortgage for $10,000, and a second collateral for $20,000. Would it not be correct to say that there is $30,000 of prior charges ?

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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The MINISTER OF RAILWAYS AND CANALS.

Undoubtedly the $20,000 which was given in respect to the Ontario lines and collaterally charged on the Manitoba lines would add $20,000 to the existing $10,000 charges; but, stating the matter broadly, there would not be obligations for1 $30,000 over the whole line.

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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John William Bell

Mr. BELL.

Oh, no; just on the Manitoba lines. |

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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IND

William Findlay Maclean

Independent Conservative

Mr. MACLEAN.

Might I ask the hon. minister what is the obligation of the road to the government of Manitoba on the Manitoba section at the present time ?

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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The MINISTER OF RAILWAYS AND CANALS.

The obligations of the company, whether to the government or the bondholders, are all included. I am not speaking with absolute confidence when I say that I think the bonds they have issued are held by the public and have the government guarantee.

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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IND

William Findlay Maclean

Independent Conservative

Mr. MACLEAN.

To what extent per mile ?

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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The MINISTER OF RAILWAYS AND CANALS.

$10,000 per mile. The first was for $8,000 and the next for $2,000, both guaranteed by the government. So that they stood subject to $10,000 per mile before this other arrangement was made.

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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IND

William Findlay Maclean

Independent Conservative

Mr. MACLEAN.

Could the minister tell us the total amount approximately guaranteed by the government of Manitoba on that road?

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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The MINISTER OF RAILWAYS AND CANALS.

It is not furnished to me here; but I take it that it is very easily ascertained, because if you add up the present obligations, the mortgage of $20,000 in the Ontario district and the $10,000 in the other district, you will have the total.

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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CON

Edward Frederick Clarke

Conservative (1867-1942)

Mr. CLARKE.

What information has the government obtained as to the cost of construction of this road ?

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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The MINISTER OF RAILWAYS AND CANALS.

Our information is that the road will cost to build and equip more than the $13,000.

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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IND

William Findlay Maclean

Independent Conservative

Mr. MACLEAN.

A standard railway ?

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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The MINISTER OF RAILWAYS AND CANALS.

Yes, a first class standard railway.

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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CON

Edward Frederick Clarke

Conservative (1867-1942)

Mr. CLARKE.

How much ?

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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The MINISTER OF RAILWAYS AND CANALS.

We have liad varying estimates from $1(5,000 to $17,000.

Topic:   QUESTIONS.
Subtopic:   CANADIAN NORTHERN RAILWAY-GUARANTEE OF SECURITIES.
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June 10, 1903