May 24, 1930

FAIR WAGES AND EIGHT HOUR DAY


Hon. PETER HEENAN (Minister of Labour) moved the second reading of and concurrence in amendment made by the Senate to Bill No. 49, respecting fair wages and an eight hour day for labour employed on public works of the Dominion of Canada.


?

Some hon. MEMBERS:

Explain.

Topic:   FAIR WAGES AND EIGHT HOUR DAY
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LIB

Peter Heenan (Minister of Labour)

Liberal

Mr. HEENAN:

Hon. members will recall

that on the motion for third reading of the bill the leader of the opposition offered an amendment to the last section. The old section stated that all regulations made under this act should have the same force and effect as if they had been included therein from the date of their publication in the Canada Gazette. The amendment made by the Senate is that they will have this force and effect fifteen days after they have been published.

Topic:   FAIR WAGES AND EIGHT HOUR DAY
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Motion agreed to, amendment read the second time and concurred in. CANADIAN NATIONAL RAILWAYS loan or 820,042,038.84 to refund obligations


OF CANADIAN NORTHERN AND MINNESOTA AND MANITOBA RAILWAY COMPANIES


Hon. T. A. CRERAR (Minister of Railways and Canals) moved that the house go into committee on Bill No. 130, respecting the Canadian National Railways, and to provide for the refunding of certain maturing financial obligations. Motion agreed to and the house went into committee, Mr. Johnston in the chair. On section 1-short title.


LIB

Thomas Alexander Crerar (Minister of Railways and Canals)

Liberal

Mr. CRERAR:

Perhaps for the information of the house I may say that this bill was referred to the special committee on Canadian National railway estimates and considered and reported without amendment by that committee. For the information of hon. members who may not have been in the house when the bill was previously considered, I may say that it provides for the refunding of cer-

C.N.R.-Retiring Loan

tain maturing obligations of the old Canadian Northern Railway which, of course, were inherited by the Canadian National Railways. Most of these obligations mature on June 30 of this year, with one or two maturing on October 30, and they amount to some $20,042,000. The provisions of the bill regarding the necessary financing to retire these obligations are the ordinary provisions in bills of this kind.

Topic:   OF CANADIAN NORTHERN AND MINNESOTA AND MANITOBA RAILWAY COMPANIES
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CON

Richard Burpee Hanson

Conservative (1867-1942)

Mr. HANSON:

Does this bill refer only

to the maturing obligations of the Canadian Northern Railway?

Topic:   OF CANADIAN NORTHERN AND MINNESOTA AND MANITOBA RAILWAY COMPANIES
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LIB

Thomas Alexander Crerar (Minister of Railways and Canals)

Liberal

Mr. CRERAR:

Yes; they were all subsidiary companies of the Canadian Northern in Manitoba.

Topic:   OF CANADIAN NORTHERN AND MINNESOTA AND MANITOBA RAILWAY COMPANIES
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Section agreed to. Sections 2 to 8 inclusive agreed to. Schedule agreed to. Bill reported, read the third time and passed.


CANADIAN NATIONAL RAILWAYS

LOAN OF $8,609,000 TO RETIRE CENTRAL VERMONT REFUNDING MORTGAGE BONDS


Hon. T. A. CRERAR (Minister of Railways and Canals) moved that the house go into committee on Bill No. 131, respecting the Canadian National railways, and to provide for certain financing in connection with certain lines of railway located principally in the state of Vermont. Motion agreed to and the house went into committee, Mr. Johnston in the chair. On section 1-Short title.


CON

Richard Burpee Hanson

Conservative (1867-1942)

Mr. HANSON:

This bill refers to the refinancing of the Central Vermont which is a subsidiary of the Canadian National Railways. As this railway is located wholly in the United States, I think it is due to the house and to the country that the Minister of Railways and Canals (Mr. Crerar) should state the situation with relation to it and tell us how much of the public moneys of Canada is invested in it. I think the house should be given some of the imformtaion presented to the special committee. Those of us who were members of that committee understand the matter, but full information should be upon Hansard regarding this matter.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   LOAN OF $8,609,000 TO RETIRE CENTRAL VERMONT REFUNDING MORTGAGE BONDS
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LIB

Thomas Alexander Crerar (Minister of Railways and Canals)

Liberal

Mr. CRERAR:

The object of the bill was discussed by myself very fully when it was in the resolution stage, but I will be glad to give the committee the information asked for by the hon. member. The Central Ver-

mont railway was under the control, by stock ownership, of the old Grand Trunk Railway of Canada, the majority of the stock having been secured, as my memory serves me, well over thirty years ago. That relationship continued until the Grand Trunk was taken over and incorporated in the Canadian National system. In 1920 the Grand Trunk had to provide for certain maturing obligations amounting to $12,000,000, which was done by guarantee of the Grand Trunk, given by its board of directors, as to principal and interest of the bonds of the Central Vermont. In 1920 *there were disastrous floods in the state of Vermont and the Central Vermont railway, along with other railways in that state, suffered very heavy losses. Steps were taken by the Canadian National Railways, who were then operating the Central Vermont, to have it put into the hands of a receiver, and the railway remained in that condition until January of the present year when the receivership was discharged. When the road went into receivership it was necessary, under the terms of the mortgage securing the bonds which had been guaranteed by the Grand Trunk Railway in 1920, for the Canadian National Railways to take up those bonds, which were then outstanding tio the amount of $8,609,000. This matter was provided for through temporary financing, and the object of this bill is to guarantee the bonds of the Canadian National Railways and thus clear up the matter. In January of this year the road was purchased from the receiver by the Canadian National Railways for $22,000,000, and in addition to that there were outstanding $5,000,000 of receiver's certificates. As far as my information goes, that is the story of the adventure of the old Grand Trunk in the Central Vermont railway. Bonds of the Central Vermont railway will be issued and deposited with the Minister of Finance and will remain under his control and direction.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   LOAN OF $8,609,000 TO RETIRE CENTRAL VERMONT REFUNDING MORTGAGE BONDS
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CON

Richard Burpee Hanson

Conservative (1867-1942)

Mr. HANSON:

The explanation given by the minister is very good as far as it goes, but the point I wanted to have elucidated and placed upon record is the actual amount of money this country has in the Central Vermont railway, which amount I think runs up to about $39,000,000.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   LOAN OF $8,609,000 TO RETIRE CENTRAL VERMONT REFUNDING MORTGAGE BONDS
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LIB

Thomas Alexander Crerar (Minister of Railways and Canals)

Liberal

Mr. CRERAR:

The total advances to the Central Vermont railway through the old Grand Trunk railway system amounted to about $38,800,000; that was the total outstanding when the road went into receivership in 1927, and included the guaranteed bonds of 1920 amounting to $12,000,000, to which I referred a moment ago. When the road was taken over from the receiver, it was

Special War Revenue Act

taken over at a valuation of $22,000,000 plus the $5,000,000 advanced on receiver'* certificates.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   LOAN OF $8,609,000 TO RETIRE CENTRAL VERMONT REFUNDING MORTGAGE BONDS
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CON

Richard Burpee Hanson

Conservative (1867-1942)

Mr. HANSON:

In addition to the

$39,000,000, there were $5,000,000 of receiver's certificates which were purchased, as I understand, by the Canadian National Railways, so that the total investment in the road would amount to something like $43,000,000. The $5,000,000 covered rehabilitation of the road due to the floods to which the minister has referred.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   LOAN OF $8,609,000 TO RETIRE CENTRAL VERMONT REFUNDING MORTGAGE BONDS
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LIB

Thomas Alexander Crerar (Minister of Railways and Canals)

Liberal

Mr. CRERAR:

The $5,000,000 is included in the $38,800,000.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   LOAN OF $8,609,000 TO RETIRE CENTRAL VERMONT REFUNDING MORTGAGE BONDS
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May 24, 1930