August 16, 1917

CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

No, it is not.

Topic:   WESTERN COAL SUPPLY.
Subtopic:   'COMMONS
Permalink
LIB
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

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.

Topic:   WESTERN COAL SUPPLY.
Subtopic:   'COMMONS
Permalink
LIB
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

The stock being

fully paid up. If the stock were partially paid up, there would be a liability on the unpaid stock.

Topic:   WESTERN COAL SUPPLY.
Subtopic:   'COMMONS
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LIB

Frank Oliver

Liberal

Mr. OLIVER:

It is the policy of the

Government to finance the company as a consequence of having the ownership of the stock.

Topic:   WESTERN COAL SUPPLY.
Subtopic:   'COMMONS
Permalink
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

So far as the

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.

Topic:   WESTERN COAL SUPPLY.
Subtopic:   'COMMONS
Permalink
LIB
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

It means that it will be run having regard to the existing financial situation and the transportation needs of the people of Canada whom it serves.

Topic:   WESTERN COAL SUPPLY.
Subtopic:   'COMMONS
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LIB

Frank Oliver

Liberal

Mr. OLIVER:

I think that is entirely

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 ?

Topic:   WESTERN COAL SUPPLY.
Subtopic:   'COMMONS
Permalink
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

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.

Topic:   WESTERN COAL SUPPLY.
Subtopic:   'COMMONS
Permalink
LIB

George Perry Graham

Liberal

Mr. GRAHAM:

The Finance Minister,

as holder of the stock, will ask the Finance Minister of Canada if he will advance him some money to carry on the undertaking ?

Topic:   WESTERN COAL SUPPLY.
Subtopic:   'COMMONS
Permalink
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

He will ask the Government.

Topic:   WESTERN COAL SUPPLY.
Subtopic:   'COMMONS
Permalink
LIB

George Perry Graham

Liberal

Mr. GRAHAM:

It resolves itself into

one and the same thing, with the entity of the Canadian Northern remaining intact.

Topic:   WESTERN COAL SUPPLY.
Subtopic:   'COMMONS
Permalink
LIB

Rodolphe Lemieux

Liberal

Mr. LEMIEUX:

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.

Topic:   WESTERN COAL SUPPLY.
Subtopic:   'COMMONS
Permalink
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

I have no information as to the bondholders or where the bonds are held, nor have I had the legislation to which he refers before me. I have been engaged with other matters.

Topic:   WESTERN COAL SUPPLY.
Subtopic:   'COMMONS
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LIB

Edward Mortimer Macdonald

Liberal

Mr. MACDONALD:

Will the hon. minister endeavour to give to the House a statement as to the registered stockholders of the Canadian Northern?

Topic:   WESTERN COAL SUPPLY.
Subtopic:   'COMMONS
Permalink
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

I do not believe it would be possible to obtain it for tomorrow. I think we shall have to: do some cabling to get it.

Topic:   WESTERN COAL SUPPLY.
Subtopic:   'COMMONS
Permalink
LIB

Edward Mortimer Macdonald

Liberal

Mr. MACDONALD:

If five-sixths of the stock is held by one group of people, and one-sixth held by others, a telegram to Toronto would get it.

Topic:   WESTERN COAL SUPPLY.
Subtopic:   'COMMONS
Permalink
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

It would obtain the information as to the local register. I am not sure as to the other.

Topic:   WESTERN COAL SUPPLY.
Subtopic:   'COMMONS
Permalink

August 16, 1917