The leverage was that I
was not prepared to negotiate on the new work unless I could get a sale for my own equipment. The sale was put through at the highest prices for scrap material that have prevailed in this country for many a decade. A great deal of the material was sold as scrap because in effect it was scrap. I believe the prices received were good prices for the assets of which we had to dispose. Let me give an indication of what we might have expected had we tried to sell this equipment piecemeal. I might mention that there were some pieces of equipment belonging to the Montreal harbour commission that had not been used for a number of years. Some of these pieces were in a workable condition, but others were no better than scrap. Some months before we started these negotiations we sent a letter to contractors and dealers in Canada whom we thought might be interested and we received an offer of S500 for six scows. That was the only offer received in connection with the equipment which subsequently brought 82,250.000 at the sale. At the sale we received from the General Dredging Contractors Limited $2,000 each for three scows and $3,000 each for the other three. If anyone suggests
Supply-Transport-St. Lawrence Dredging
that we could have done better by advertising this equipment unit by unit, I refer to him the experience we had in trying to sell the Montreal harbour equipment. I suggest this was a fair indication that such a disposal was not possible.
Subtopic: DEPARTMENT OF EXTERNAL AFFAIRS
Sub-subtopic: DEPARTMENT OF TRANSPORT