That is a different thing. The Dominion Government will become the stockholder of the Canadian
Northern to the extent of 1100,000,000. That is, they will own and control its stock, and the other companies will run as companies, will contract liabilities within their corporate powers, and carry on the business for which they were constituted. If the Canadian Northern requires to finance, as it does for the purpose of meeting its obligations, whether of underlying interest or otherwise, it would ask the Dominion Government to put it in funds for the purpose. The Dominion Government would make an advance to the Canadian Northern Railway company, and the Canadian Northern Railway company would ruse that advance for the purpose of paying its liabilities, whether on interest account or otherwise. The true position is that the Dominion Government is not legally liable in respect of the liabilities of the Canadian Northern or its constituent companies, but Willi continue this system, os a going concern; it is the purpose of the Dominion Government to continue this system as a going concern, and from time to time to finance it.
interests of Canada require, the Dominion Government would from1 time to time finance the Oamadiiau Northern Railway company, in order to carry on the enterprise. That does not mean that the Canadian Northern Railway company, owned' by the Dominion Government, must at once commence extensions here, there, or the other place.
satisfactory. It is understood now, that, as a consequence of this transaction the financing-that is the carrying on of the Canadian Northern railway-will in fact be a charge upon the treasury of Canada ?
I would not put it that way. I will tell you why: because it is in the discretion of the Dominion Government to make advances, or to withhold advances, and to decide as to the amount of advances; in other words, we own the stock, and it is for the Dominion Government to determine to what extent it will finance the Canadian Northern Railway system. But it is the intention that the Canadian Northern Railway system [DOT]shall continue to be operated, in the interests of the people of Canada.
I should like to know from my hon. friend concerning the implementing legislation, which it is contemplated to bring down in a few days as was stated the other day by the hon. Minister of Railways and Canals, as regards the Quebec .and Saguenay railway, which has for its object to pay the same group of gentlemen who are interested in the Canadian Northern. I am informed the same group of financiers are the bondholders of the Quebec and Saguenay and the Quebec and Montmorency. I am told they are creditors to the amount of $3,000,000 worth of bonds, and that the contemplated legislation has for its object the payment of those bondholders.