May 27, 1914 (12th Parliament, 3rd Session)


Adam Carr Bell


That is just the very
point that we have been arguing all morning and a part of last evening. What the right hon. gentleman has said is the very opposite of the argument presented by the Solicitor General who is contending that it makes no difference what the capitalization of the subsidiary or allied companies may be because all their stock, whether it be $68,000,000, or $81,000,000, or whether it be another $400,000,000, becomes merged into, and becomes the property of, the Canadian Northern Railway Company, the capital stock of which is reduced down to $100,000,000. My right hon. friend now says that the Canadian Northern railway may have to advance money to one of the subsidiary companies and that therefore they ought to have a right to take stock as security. What reason can there be for that if the Canadian Northern owns the whole thing and if the Canadian Northern stock is limited to $100,000,000 as the Solicitor General says it is? The Solicitor General says that under no contingency is it possible that the stock on which they can demand dividends can exceed $100,000,000.

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