They do. If I wanted to borrow a large sum of money from this company, the company having been incorporated and in existence and receiving deposits of money, I could not borrow that money unless I was a shareholder; but I could become a shareholder, with the consent of the directors, by paying one dollar or taking one $1 share. I say that is no protection at all. This legislation is quite right, if it is carried out in the spirit and the meaning of this Act, but I say that this Act gives an opening for the worst kind of wild cat companies that it is possible to conceive. I understand from the promoter of the Bill that it is intended for the establishment of banks in certain Mr. KING
localities in the province of Quebec, and that it will be a most useful Bill in the districts where it is desired; what I object to, is the possibility of applying this Bill to Ontario and to mining companies and to promoters who would take advantage of such an Act. I say it opens the door to the wildest kind of companies, something which should be most carefully guarded against.
If I remember rightly, the Finance Minister last year was very much exercised about that power, and thought it might be got over by strictly limiting the capitalization in each case, to whatever might be the requirements of the locality, and then from time to time the capital might be increased with the consent of the Minister of Finance, if it was shown that it was going to meet the requirements of the localities where the organizations were brought into effect and required; but without some such restriction as that, this Bill gives the wild-catt promoters and the man who wants to swindle the public, the opportunity of doing it, as no other Bill on the statute-book of Canada does. It would enable any seven people in any locality in Ontario to devise a scheme for the defrauding of the public and to carry it out successfully.
Subtopic: CO-OPERATIVE CREDIT SOCIETIES.