February 11, 1927 (16th Parliament, 1st Session)

LIB

Charles Avery Dunning (Minister of Railways and Canals)

Liberal

Mr. DUNNING:

Absolutely binding; it is
a signed assent. Now there must always be some machinery for clearing up matters of this kind, otherwise business could not be conducted. That is recognized in our Exchequer Court Act and in the Railway Act, whereby provisions are made generally to deal with the liquidation of bonds of railway companies. The Railway Act provides that the Exchequer Court may give permission to bind what my hon. friend refers to as a minority in case seventy-five per cent of the whole consent. And in view of the fact that in this case we had already in hand a ninety-two per cent approval we thought it unnecessary to involve the legal machinery of the Exchequer court which, as I have said, is authorized under our existing laws to bind the others in the event of seventy-five per cent consenting. That is the best answer I can give my hon. friend. If there were not some means of cleaning up the tag ends no bond issue could ever be dealt with because there is always a proportion of bonds which simply cannot be located. Bonds vanish, they go out of existence, they are burnt up in fires or they go down with ships. As a matter of fact I am of opinion that with such a large percentage agreeing we may say that practically all the existing bondholders have given their consent.

Grand Trunk Pacific Ry. Co.

Topic:   SUBSTITUTION OF CANADIAN NATIONAL FOR GRAND TRUNK PACIFIC SECURITIES
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