FIELDING (Minister of Finance) moved that on Friday next the House do go into Committee of the Whole to consider the following proposed resolution:
Resolved, That it is expedient to authorize the Governor in Council to advance by way of loan to the Grand Trunk Pacific Railway
Company a sum not exceeding ten million dollars for the purpose of aiding the company in the completion of the construction of the prairie section of the western division of the National Transcontinental Railway, the sum so advanced to bear interest at the rate of four per centum per annum, payable half yearly, and to be repayable in ten years from the time the loan is made, or if advanced in instalments, then in ten years from the time the first of such instalments is so advanced; and to provide,
That such sum, whether advanced in one or several instalments, shall be advanced upon the pledge of an issue of bonds, bearing interest at the rate of four per centum per annum, payable half yearly, to be made by the company as collateral security for the payment of such sum and interest, the principal amount of the bonds received in pledge to equal the sum advanced, such bonds to be secured, subject to any prior lien or charge, by a mortgage, or deed of trust by way of mortgage, of the prairie section, and of the undertaking, equipment and property, tolls, rights and franchises of the company in respect of said section, and to be guaranteed as to the payment of the principal and interest thereof by the Grand Trunk Railway Company of Canada; the form and provisions of such mortgage and of the bonds to be secured thereby, and of the guaranty thereof by the Grand Trunk Railway Company, to be substantially as set forth in the schedule of the Act to be founded on these resolutions;
That His Majesty, in the event of default in the payment of half yearly interest, or in default in the payment of the principal sum advanced under the provisions of such enactment, in addition to and without prejudice to any right or remedy against the company in respect of such default, and in addition to and without prejudice to any right or remedy His Majesty may have as pledgee of the whole or any part of such bond issue, shall, for the purpose of remedy, be deemed to be the holder of such bonds and entitled to all rights and remedies available to bondholders arising according to the terms of such mortgage when default is made in payment of interest or principal of such bonds; and that default in payment of interest on, or principal of, any advances made under the provisions of such Act, shall be deemed to be default in payment of the interest on or principal of such bonds to the amount accrued thereon according to the tenor thereof.
That the Governor in Council may, in addition to the sums now remaining unborrowed and negotiable of the loans authorized by any Act of parliament heretofore passed, raise by way of loan, in accordance with and under the provisions of that portion of chapter 24 of the Revised Statutes of Canada, 1906, relating to the publio debt, and the raising of loans authorized by parliament, such sum or sums of money not exceeding ten million dollars, as may be required for making the advances contemplated by these resolutions.
He said: His Excellency the Governor
General, having been made acquainted with the subject matter of this resolution, recommends it to the consideration of the House.