August 4, 1904

LIB

Charles Henry Parmelee

Liberal

Mr. PARMELEE.

Will the Bill to be founded on this resolution make any provision for reasonable notice ? These arrangements have been made and I fear that if you take the right or exercise the right to cancel these licenses out of hand it would throw the trade into a great state of confusion and cause great injury and harm not only to the manufacturers but to the wholesalers and to the people who handle this tobacco all over the country.

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LIB

Louis-Philippe Brodeur (Minister of Inland Revenue)

Liberal

Mr. BRODEUR.

I suppose that before we put the law into effect it wodld be only fair to draw the attention of the interested parties, that is to say the Empire Tobacco Company and the American Tobacco Company to the fact that a law has been passed providing that their licenses would be cancelled if they continue to use exclusive contracts, and I would be very glad to give them an opportunity of cancelling these exclusive contracts.

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CON

George Taylor (Chief Opposition Whip; Whip of the Conservative Party (1867-1942))

Conservative (1867-1942)

Mr. TAYLOR.

I think the resolution ought to be changed to read as follows;-

Any licenses authorized by this Act for the manufacture of tobacco or cigars or cigarettes shall be cancelled.

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LIB

Louis-Philippe Brodeur (Minister of Inland Revenue)

Liberal

Mr. BRODEUR.

I do not think it would be fair to make that restriction. My hon. friend, the leader of the opposition, expressed very strongly his conviction this morning that legislation of this nature should be as general as possible. Under the circumstances we cannot go so far as to make a general law applicable to all trades, but I think the law should be as general as possible so far as the licensees are concerned. The information I have is that there is no other combine amongst the licensees but if it should be found that other licensees were doing the same thing, we should have power to deal with them.

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CON

George Taylor (Chief Opposition Whip; Whip of the Conservative Party (1867-1942))

Conservative (1867-1942)

Mr. TAYLOR.

It will be time enough to deal with them when they arrive. What other goods which are manufactured have to take licenses from the department ?

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LIB

Louis-Philippe Brodeur (Minister of Inland Revenue)

Liberal

Mr. BRODEUR.

The most important are spirits, vinegar, tobacco, cigars, malt, brewer's acetic acid.

'Mr. MONK. Is it the intention of the minister, as soon as this Bill becomes law, to enforce it ?

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LIB
CON

Frederick Debartzch Monk

Conservative (1867-1942)

Mr. MONK.

Is there going to be any further inquiry ? At the time the grievance was exposed to the government the answer of the government to the deputation was that they would ascertain the facts by means of a commission of inquiry and then would act. That was two years ago. If this becomes law, will the minister act at once, or will there be a further inquiry ? Is there any special procedure contemplated by the minister, or will he act iproprio motu.

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LIB

Louis-Philippe Brodeur (Minister of Inland Revenue)

Liberal

Mr. BRODEUR.

I shall have to find out whether those exclusive contracts are still in existence. The investigation took place a year ago and these contracts were then existent. I am convinced they are existing still, and if so I shall be called on to cancel them.

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CON

Frederick Debartzch Monk

Conservative (1867-1942)

Mr. MONK.

It would not take the minister more than a week at the outside to find out in an official and exhaustive manner that these contracts still continue. I suppose we can then expect the action of the government within a month at least, giving it the utmost extension possible.

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LIB

Louis-Philippe Brodeur (Minister of Inland Revenue)

Liberal

Mr. BRODEUR.

-I shall give this matter my immediate consideration. I will do my utmost to carry out the wishes of parliament. [DOT]

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CON

Joseph-Édouard-Émile Léonard

Conservative (1867-1942)

Mr. J. E. E. LEONARD.

(Translation.) Mr. Chairman, before this resolution is reported, I would like to offer a few remarks. It seems to me that the hon. Minister of Inland Revenue must know by this time wluit is the position of the American Tobacco Company trust. Judging from all the reticencies used by the hon. minister for not saying in what delay he is going to apply that law, I understand his only aim is to win the elections two months hence.

Together with the hon. member for Jac-ques-Cartier, and as representing a country which is deeply interested in tobacco growing, I would like the minister to state positively that this law shall come into force as soon as passed by this parliament, and I hope the hon. minister will have no objection to tell us that he is determined to put it into force immediately, especially as against the American Tobacco Company.

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LIB

Louis-Philippe Brodeur (Minister of Inland Revenue)

Liberal

Mr. BRODEUR.

(Translation.) My hon. friend knows perfectly well that we cannot proceed immediately with the cancelling of the licenses without having positive evidence of their being extant. If he has taken the trouble of reading the law-and I suppose he has-he will notice that the minister has the right to cancel the licenses when such and such things shall exist; but we must first be satisfied that the state Mr. BRODEUR.

of things complained of is actually existent.

My hon. friend from Jaeques-Cartier says : 'We have Judge MaeTavish's report.' Tnat is true, but the judge made his investigation two years ago. Suppose the contracts he denounced did not exist to-day, we would be in a very bad position indeed if we undertook to cancel the licenses without first making ourselves sure that they are still in force, and the government might be called to pay heavy damages. Therefore, the most rudimental prudence makes it a duty to inquire if those contracts are still in existence. My conviction is that they are, but I must have the reports from my officials, and if they are, I shall take immediate action. My hon. friend may rest assured that the desire of parliament will be complied with, and that it will not take the minister a long time to apply the law.

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CON

Frederick Debartzch Monk

Conservative (1867-1942)

Mr. MONK.

(Translation.) The effect of this equivocal statement, by the hon. minister is to put me in the greatest anxiety. At the end of this session, when the Prime Minister stated that all the legislation the government were to introduce this year was before the House, I called the attention of the hon. Minister of Inland Revenue to the fact that the tobacco question had been forgotten, and that I was going to submit it myself to the House. The following day my hon. friend gave notice of his resolution. We rely upon him. Hon. members on this side of the House have given their adhesion to my hon. friend's Bill. We give him full discretion as regards its execution. We had the right of asking parliament to decide that point, and not leave it with Lie executive to suppress that monopoly ; but under the circumstances, we accept the Bill submitted to our consideration. I think it ouly fair that the government should state under what delay they are going to apply that law, because such means of information are absolute and most effective. They could know within a couple of days as to whether the state of things pointed out by Judge MacTavish is still existing or not. It is our right to have a clear statement from the government on that point.

If my hon. friend knows, as we all know, and as we are all persuaded in mind, that nothing has been changed in the state of things stated by Judge MacTavish, why should the hon. minister hesitate in telling us that within thirty days after the passing of that law the remedy involved in it shall be .applied ? That would be twenty-five days more than is necessary for gathering sure evidence as to the existence of the abuse in question. Under these circurii-stanctes, it seems to me that since we confide in the government, they should tell us when they are going to take action.

My hon. friend has not been absolutely candid in this matter, and that is why I

am a little like St. Thomas and I have some misgivings. It is not that I wish to have any proof of the evil, for it is well known to me, but what I want is to have something tangible as regards the remedy the hon. minister intends to apply to that evil. Now', it seems to me that this desire is quite reasonable.

When we on this side of the House have raised that question, we have been accused of varying on the question of protection. That question is not involved in this matter. The question involved is that of abolishing the monopoly ; the question at stake is that of finding new markets for our Canadian tobacco. These two questions are the most important of all. Should you even raise the duty two hundred per cent, we would not be any better as long as we have that monopoly, which is proved to have existed for more than two years past. Therefore, I think the hon. minister should let us know when he intends to use that law.

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LIB

Charles Fitzpatrick (Minister of Justice and Attorney General of Canada)

Liberal

Mr. FITZPATRICK.

(Translation.) I would ask my hon. friend (Mr. Monk) to observe that the proof of the fact that the government realize all the importance of this question is that they had it immediately submitted to the House, although the end of the session is drawing near. So fully did they realize the importance of the matter that they made an exception in introducing this law7, when they had stated their intention of introducing no other new legislation at this session, as reminded by the hon. gentleman. Since the government have given such evidence of their good faith, my hon. friend and the House may be sure that this law w7ill be used in order to protect that industry and the tobacco growers against the effects of that monopoly. Therefore, there can be no doubt as to whether the government will execute this law intended to put an end to the monopoly now existing.

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?

Mr. MONIC@

(Translation.) I take note of this explicit statement made by my hon. friend the Minister of Justice. At the same time I would ask the hon. Minister of Inland Revenue (Mr. Brodeur), who will be charged to execute this law, to tell us within what delay he intends to use it ?

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LIB

Louis-Philippe Brodeur (Minister of Inland Revenue)

Liberal

Mr. BRODEUR.

(Translation.) My hon. friend must bear in mind that if there is any evidence as regards the existence of that monopoly it is in the hands of parties opposed to this government, or at least to the law now under discussion. It must not be believed that the proof of those contracts being existent will be furnished to us by the American Tobacco Company. We shall have to get it otherwise. I may say to the hon. gentleman that immediately after the session, that is after this law is sanctioned, my officers will be instructed to make the necessary investigations, in order

to gather evidence as to the existence of those contracts, and as soon as that evidence is handed to me, the cancelling of the licenses will be immediately ordered. That evidence might perhaps be gathered within fifteen days ; it may be also that three weeks or one month are required ; but in addition to this, we must be given sufficient time to take an intelligent decision. My hon. friend may rest assured that the government will make all possible haste, in order to have this law executed, and will take action with all expedition.

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CON

Frederick Debartzch Monk

Conservative (1867-1942)

Mr. MONK.

(Translation.) This statement made by my hon. friend is more satisfactory than the one he made a moment ago. I presume he understands, as we all do, that the government are not going to leave this law unexecuted until some third party comes iu, but that his own department will take action without the interference of third parties.

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LIB

Louis-Philippe Brodeur (Minister of Inland Revenue)

Liberal

Mr. BRODEUR.

(Translation.) Certainly, the department will take immediate action.

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CON

George Taylor (Chief Opposition Whip; Whip of the Conservative Party (1867-1942))

Conservative (1867-1942)

Mr. TAYDOR moved :

That the resolution be amended by striking out the word ' may ' and inserting * for the manufacture of tobacco, cigars and cigarettes shall.'

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August 4, 1904