May 23, 1918 (13th Parliament, 1st Session)

UNION

Alexander Kenneth Maclean (Minister Without Portfolio)

Unionist

Mr. A. K. MACLEAN:

Yes. This company eventually produced a great quantity of zinc which was purchased by Great Britain and Russia. When Russia withdrew from the war, that market was, of course, closed to the Consolidated Mining and Smelting Company which, at the beginning, always anticipated it would have this market. Great Britain was also expected to be a continuing purchaser of the product of this company. For -some reasons, largely financial, Great 'Britain is- obliged to purchase zinc in the United States. Now the smelter company is in the position that it made an investment of $2,500,000 to manufacture this high-grade zinc expecting that it would always have a customer, but now it finds itself without a market and it will have no market unless it can reduce the cost of production of electrolytic zinc to the cost of production of ordinary zinc, that is about seven cents per pound. In 1916, an Act was passed by which it was agreed to pay this company a bounty of two cents per pound whenever the price fell below the standard London price, but 'that bounty wasi not to be paid until after the war. The purport of -this Bill is to [DOT]allow the payment of thiei bounty at once if earned under the conditions stated in the Bill. IThe amount is limited to $400,000. My hon. friend from Victoria (Sir Sam Hughes) was, I think, a member of the original Shell Committee that induced the company to go into the business.

Topic:   THE ZINC BOUNTIES ACT, 1916.
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