Pacific Company, and perform such other services for the Pacific Company as are agreed upon, and the Grand Trunk Company may receive and take as the consideration, in whole or in part, to be given to it under the terms of any such agreement, shares of the capital stock of the Pacific Company for such amount and upon such terms and conditions as are agreed upon.
When these two companies have agreed as to the number of shares that are to be given to the Grand Trunk Company in consideration of its guarantee, will not the shares so given be the property of the Grand Trunk Railway Company ; and if they be sold upon the market will not the money received from them belong to the Grand Trunk Railway, and go into the treasury of the Grand Trunk Railway Company ? If the treasurer of the Grand Trunk Railway should afterwards use that money for the purposes of the Grand Trunk Pacific it would be a misappropriation of the Grand Trunk Railway funds. It is merely arguing in a circle to say, that the stock is sold to enable the Grand Trunk Pacific to do anything that is within the functions of the Grand Trunk Pacific. The Grand Trunk Pacific loses all control over and interest in the stock the moment it gives that stock to the Grand Trunk Railway, and it becomes absolutely the property of the Grand Trunk Railway Company.
Amendment (Mr. Northrup) negatived.
Mr. BENNEttT. There was a good deal of discussion the other evening as to the remuneration which should be paid by the Grand Trunk Pacific Company for the use of any part of the government section, before the completed road was finally handed over by the government. It is a peculiar feature of this contract, that the power of leasing any portion of the road is conferred on the three commissioners-we are told lately that there are to be four commissioners-and that that power is not to be vested in the government itself. We have it on the authority of Sir Rivers-Wilson and of Mr. Hays, that the section of the road from Winnipeg to North Bay will be a most remunerative section, that it will pay from the very outset, that it will connect with the old Grand Trunk Railway system ; and as this 900 miles is likely td be built first, it will no doubt be at once leased to the Grand Trunk Pacific. It seems to me that the government should not be absolved from all responsibility in the! granting of a lease of this magnitude. The commissioners may be worthy men, but nevertheless it is the government which is responsible to the people, and these leases should be confirmed by Orders in Council. When we consider that under the provisions of this Bill, the commissioners are not allowed to let contracts exceeding (510,000 without the consent of the government, it is an extraordinary thing that this 900 miles Mr. BARKER.
of road, costing over $27,000,000 should be handed over to the commissioners to do what ever they please with it, without the government being responsible. I therefore beg to move :
That section X of the Bill be amended by adding thereto the following subsection :
Provided always, that no lease shall be concluded by the commissioners under section 3 of the supplementary agreement until such lease has been sanctioned and approved by the Governor in Council ; and a copy of every such lease shall be forthwith deposited with the Secretary of State for Canada.