Hon. J. A. ROBB (Minister of Finance) moved that the house go into committee at the next sitting to consider the following proposed resolution:
That the scheme of arrangement with holders of the five per cent income charge convertible debenture stock of the Canadian Northern Railway be ratified and confirmed, and that the governor in council be authorized to guarantee the principal and interest of the new securities to be issued in pursuance therewith not exceeding in aggregate face value such an amount as may by the governor in council be considered sufficient to raise $22,689,575.32; the proceeds to be deposited to the credit of the Minister of Finance in trust, to be released by the minister in such amounts as are required to carry out the provisions of the scheme.
He said: His Excellency the Governor
General, having been made acquainted with the subject matter of this resolution, recommends it to the favourable consideration of the house.
I might mention, Mr. Speaker, that this resolution is to provide for taking care of TMr. McIntosh.]
maturities in May. The purpose of the bill is to approve and give effect to the scheme of arrangement and compromise between the Canadian Northern Railway Company and the holders of its five per cent income charge convertible debenture stock. This stock is secured by trust deed dated May 6, 1910, supplemented by trust deed dated May 17, 1915. The trustees are the British Empire Trust Company, London, England, and the National Trust Company, Toronto. The due date is the 6th of May, 1930. The interest is payable at five per cent or such less rate, if any, as the net earnings of the railways concerned shall be sufficient to pay. The amount outstanding is $24,137,846.08, and 94 per cent of this amount is $22,689,575.32. The sale of securities shall be by competitive bids, but in view of the fact that time is the essence and will be very limited, provision is made for temporary financing.
If hon. gentlemen desire, we could take up this resolution now and give the bill its first reading, and then let it stand over until Thursday.