May 20, 1914 (12th Parliament, 3rd Session)


Arthur Meighen (Solicitor General of Canada)

Conservative (1867-1942)


The hon. member for
Welland made the same proposal in the course of the discussion of the motion to go into committee. But the Government did not consider that there was any object to be served in forcing under the mortgage the $60,000,000 of stock held by Mackenzie, Mann & 'Company. If the hon. mepaber will follow me, I think he will agree that there can be no possible object in this even from his own point of view. I have already argued that we have taken security on all the assets of the company, that we have fixed our mortgages on everything that the company possesses and much that they do not possess; and the hon. member has been free to admit that we have taken a mortgage on all their assets that we could get. That being the case, our mortgage, the hon. gentleman will agree, is ahead of the stock. Now, if our mortgage is illusory or insufficient, the stock would be no good, for our mortgage is ahead of the stock. If that mortgage is not illusory and insufficient, then what is the good of a mortgage on the stock? So, he will see that no purpose is to be served from that point of view. But he has a second viewpoint and contends that this mortgage should be taken if only for the purpose of preventing the parties realizing on the stock and getting the stock into the hands of the public. There is a lot that might be done in the way of tying people up hand and foot. But I do not see what object is to be served by that. This stock is already affected by the provisions of the mortgage bond, by these resolutions and the Bill to be founded upon them. The facts are being heralded all over Canada and all over the world by this debate, and any man purchasing this stock purchases it with as complete notice a3 was ever given. No right will accrue to the purchasers that does not accrue to the present holders. They cannot come to Parliament and say they have a higher status than Mackenzie and Mann. Therefore, if we adopted the hon. gentleman s suggestion we should be preventing these men from realizing on what is left of meir property without any object.

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