Mr. PREFONTAINE.

The rules will be the same for everybody. The board of examiners is composed of officials of the department. Sometimes they take an outsider to aid in the examination. I do not flunk that the question of patronage has ever arisen.

tern of allowing pilots to be engaged by the year by steamship companies. It lias become a very serious question as to what regulations we will adopt in order to distribute the work more equally. That question will be taken up by the shipping federation and the department within a few days, and I think we will come to some arrangement that will be satisfactory.

Mr. FOSTER.

Will this rule of distribution in the Quebec portion belong to the pilots or the department ?

Mr. PREFONTAINE.

It will come under the department, and the distribution of the work as well as the money will be subject t" some regulations. It is not likely, however, that the department will reverse the present condition of affairs without due examination of all the circumstances.

Mr. FOSTER.

Always keeping in view that the pilots are made for the shipping service and not the service for the pilots.

Mr. PREFONTAINE.

Of course. As regards the regulations governing apprentices, these will come under the Department of Marine and Fisheries. The moment that tins pilotage business comes under the Department of Marine, the minister will have to see that proper regulations for the admission of apprentices are made, and also for their yearly examination. We find that in the district oif Montreal, unless a complaint was made, a pilot would not be called on every year to pass an examination as to his eye-sight and hearing. We have established a rule, with the consent of the pilots, that they should pass an examination every season and get a certificate as to their eyesight and hearing to show that these have not failed so much as to prevent their attending to their duties. We have also stipulated what kind of examination they shall be subjected to.

Mr. FOSTER.

What happened the vessel in Montreal harbour the other day which went ashore ?

On section 2,

Mr. FOSTER.

Who regulates the distribution of those pilots ? I notice that ever and anon difficulties arise. Some Shipov ners, not being able otherwise to get the' pilots they want, employ them by the year. Also, who regulates the coming in of apprentices and the terms under which they can come in ? Also, whether there is an arrangement for the pooling of the earnings V

Mr. PREFONTAINE.

In the district o Quebec the earnings are pooled and dividec a. the end of the season under the authori Plots' corporation. In the d.is tuct ot Montreal there is no pooling. Then is a very serious question at present amom the Montreal pilots arising out of the sys Mr. FOSTER

Mr. PREFONTAINE.

I have given instructions for an investigation. Her going ashore must be due to gross carelessness or something wrong with her machinery.

Mr. FOSTER.

It could not be that a new sand-bar had been created ?

Mr. PREFONTAINE.

No.

Mr. OSLER.

Have the laws and regulations of the pilots' association to be approved by the minister ?

Mr. PREFONTAINE.

They have fo be submitted to the Governor General in Council.

Bill reported, read the third time and passed.

Mr. EMMERSON.

I have from time to time, during the past three or four months, forwarned the House regarding the probable outcome of the year's operation of the intercolonial Railway. In my detailed statement of some months ago, I rather predicted a large deficit. The information available up to this moment has confirmed my worst fears with respect to that deficit. This has been an extraordinary year for us in several respects. The snowfall in tfie maritime provinces last winter was beyond all precedent in the history of those provinces. For nearly two months traffic was practically suspended, except at certain intervals. These conditions not only immensely reduced tfie revenues of the road, but entailed an unparalleled outlay. We have been obliged to burn the candle at both ends. While traffic was paralyzed, suspended, the expenditure has been going on. Detention wages alone is an item of sejrious moment. Trains were sent out and men were under pay; but owing to the conditions, these trains were prevented from earning, though the expenditure went on. I cannot at this moment more than estimate the probable shortage of revenue as compared with working expenses for the current year, but the amount will no doubt be between a million and a half and two millions of dollars. Until full and detailed information is had, I think it would be improper to do more than give a general outline of the facts which have led to this result. While I am prepared to say that this is an alarming condition, I am also in a position to say that during the fiscal year there have been no undue appointments, no creations of office; but that normal conditions have prevailed in that respect But with respect to wages, we have made one very important change-we have been obliged to pay very much higher wages than have prevailed heretofore on the Intercolonial.

Coming to such details as I can give, I may say that, in the first place, the operation of the Prince Edward Island Railway for the nine months ending 31st March last was unusually expensive. The revenue fell off to the extent of $11,957 and the working expenses increased by $65,289 as compared with the preceding year. This result was largely due to the snow blockade. For example, the cost of handling snow in the year 1903-4 was $11,715; but the cost under the same head for the current year was $32,175. A further increase is explained by the addition to the wages. The men are paid, in many instances fifty per cent more than they have been paid hitherto. Still, we have not exceeded the wages that are paid by the other railways

of Canada. The Intercolonial, within the last year, has simply been levelled up to the standard of the wages paid by other railways in this country. I do not think we are paying exorbitant wages-I am satisfied that we are not; we are simply paying a fair wage to the men of the Intercolonial as compared with the wage paid elsewhere, I do not feel that I should apologize for the fact that we have increased these wages. We have an army of men on the Intercolonial who are worthy of recognition. They are a splendid force of railway men and are entitled to what was granted: to them. Perhaps it was delayed too long. But it is certainly unfortunate that this increase in wages serves to make the deficit of the past year one that is not pleasing for the people, or for me as Minister of Railways to contemplate. The increase in wages, in addition to that which we paid during the preceding year is somewhere about $750,000-that is to say that the Intercolonial to-day is paying practically the same number of men about $750,000 more than formerly, to say nothing of any additional men. Now, I know as a matter of fact that the work that is being carried on, particularly in the mechanical department, gives very much better results than before Take, for instance, in the repair of cars. We have increased the number of men, about 20 per cent, but we are realizing in work an increase of nearly 100 per cent. This is due to the fact that our system has been so much improved. Last year we were turning out in the repairs of passenger cars about 10 to 18 a month; this year we are turning out 29 or 30 a month. In the repairs of locomotives, with an increase of say 20 per cent in the number of men, we are turning out 66 per cent more engines.

Mr. BARKER.

That is in the number of engines, not the quantity of work ? The hon. minister (Mr. Emmerson) must remember that nearly all his cars and locomotives are now new.

Mr. EMMERSON.

The amount of work has been greatly increased. By the re-organization of the shops and the system of change-hands and so on, they are accomplishing very much greater results than they hitherto accomplished. There was an increase in the wages account of $3,588, and $8,985 for additional ties on the Prince Edward Island road. The added cost of repairs, fuel and station expenses made up the remainder. It is, however, on the main line of the Intercolonial that the chief loss has occurred. This loss does not directly arise from a falling off in the revenue. As compared with last year, the income has actually been greater to the extent of a few thousand dollars than last year. Had it not been for the extraordinary conditions bearing upon the operation of the road, the revenue would pro-

bably have shown a sufficient increase to largely reduce the deficit.

Mr. HAGGART.

Has the minister the receipts and expenditures for the couple of months in which he says that the loss occurred ?