which we have had to meet on every platform in my province and in the Conservative press because of our support of the Hudson Bay railway project, I will take good care to publish and circula/te the remarks of my hon. friend to-day.
I noticed that the minister made a public statement some time ago to the effect that the Crowsnest rates would be extended to Churchill. I wonder if the minister could give us some definite assurance on that point.
My hon. friend is misinformed as to the statement attributed to me. I have no recollection of making any statement that the Crowsnest pass rates would apply to the Hudson Bay line because there was no occasion for making such a statement and the matter never has been given consideration. However, I may tell my hon. ;riend that it will receive very serious consideration and personally I have no doubt that those rates will apply.
Perhaps my hon. friend has in mind the statement I made during my tenure of office as Minister of Railways, which was to the effect that by virtue of judgments given by the Board of Railway Commissioners in other cases there was no doubt at all that the Crowsnest. pass rates would apply, in my opinion. As the minister of railways has said, until the tariffs of rates are filed by the railway company with the Board of Rail-TMr. Bennett.]
way Commissioners and are approved, this matter cannot be said technically to have been decided upon. However, because of the nature of the judgments given by the railway board in rate cases of a similar character, there is no doubt that the Crowsnest pass rates for grain will apply.
like to direct the attention of the minister to a matter which I consider to be worthy of consideration. That portion of the Canadian National Railways, formerly the old National Transcontinental, running from the eastern boundary of Manitoba into the province of Quebec, is not subject to municipal and school taxation. The remainder of the Canadian National system pays full taxes, and I do not see why this other portion of the road should not be in the same position, especially with respect to the pioneer communities in northern Ontario. The towns of Sioux Lookout, Long-lac and Nakina are more particularly affected by this situation. I submit that it is unfair for the employees of the railway who live in these communities to have to pay municipal and school taxes which should be paid by the railway company. The employees of the railway in other communities receive the benefit of taxation paid by the company, and these people should be put in a like position. The town of Sioux Lookout, an important divisional point, offers a concrete illustration. The assessments in that community, outside of railway property, amount to something like $900,000, while the assessment on the railway property amounts to a little over $430,000. It will be seen that over one-third of the assessed value of the community belongs to the railway, and yet no taxation is paid. That condition should be remedied. This is a community of some 1,750 people comprising perhaps 500 families, and each family is forced to pay at least $50 to S60 more per year because the railway is not taxed. The assessments in Nakina in 1924 amounted to $96,000, while for this year they should amount to $120,000. Nearly one-half of the taxes paid in that community should be paid by the railway company. These same facts would apply to the towns of Hudson, Allanwater and Armstrong, but let us consider the case of Long-lac. In this community a certain portion of the railway property is taxed while another portion is not. This is a very anomalous situation. It is estimated by these communities, and particularly by Sioux Lookout that the railway owes them over $200,000 in back taxes. That is a considerable burden upon the people of that community. This government has had
nine years in which to consider this matter and has had ample time to remedy this situation. I submit to the minister that these taxes should be paid and that the arrears for the past nine or ten years should be adjusted. In lieu of that, compensatory allowances should be made to these communities until such time as the matter has been adjusted satisfactorily.