Mr. FOWLER.

I am sure that he did not, because knowing the great influence which the hon. gentleman would have bn his colleagues, knowing the great assistance he ha* been to the government and the tremendous strength he has brought to it, which the First Minister must realize, his influence would be so great that he would be able to impose his views upon his colleagues and if he had advocated with his heart and soul and strength the construction of these branch lines they would have adopted that policy.

Mr. LEFURGEY.

I think it strange when we hear so much from ministers and members on the other side about the acquisition of feeders for the Intercolonial Railway that they have said nothing about the Prince Edward Island Railway, which would be the most valuable feeder they could have for the Intercolonial Railway if a connecting link between the Intercolonial Railway and it were constructed. It seems there is either a concerted plan on the part of the government to overlook Prince Edward Island or else there is some ulterior motive in relation to the buying of these branch lines. We have had many promises of investigation and report. It seems strange that they should overlook the most profitable feeder the Intercolonial Railway could have.

Bill reported, read the third time and ' passed.

Mr. R. L. BORDEN.

Has the government come to a conclusion as to whether the present site and the works there will be utilized or will some other site be chosen? Have any inquiries been made on the subject ?

Mr. GRAHAM.

The position of the government is this. Leaving aside everything that has happened, this fact stares us in the face, the Quebec bridge is down and the Quebec bridge has to go up. It is the duty of the government to see that the plan is carried out as parliament has directed. This Bill provides for taking over the enterprise in accordance with the agreement. Different opinions are expressed as to using the present site. Some members say that the present material will do. I am not offering any opinion, but I say the first duty of the government is to select a board of engineers composed of two or three of the most prominent engineers in the world. To them will be entrusted the duty of seeing if any or all of the piers, if any or all of the material or design, is adequate for the construction of the bridge. To them will be entrusted the task of selecting a design for the construction of the Quebec bridge. My idea is to submit to them the question of site as well, and to take their advice largely as to the best place to build the bridge and the design to be followed. For, whatever has happened, it must be obvious to every person that no mistakes ought to be made in the future, but that the structure to be erected there should be a lasting one and a credit to Canada, because it will be the greatest of its kind in the world.

I' hope that estimates will be made not only for the present site but also for construction by way of the Island of Orleans. It may be remembered that the objection to the Island of Orleans scheme was that it might cost $1,500,000 or $2,000,000 more. But the cost of railway terminals is also to be considered. Estimates should be made so as to show the cost of both bridge and terminals by either route. It may be that the bridge by the Island of Orleans scheme will cost more, this will be more than made up in the saving on the terminals.

Mr. FOWLER.

Is the government to pay the bridge company anything for compensation ?

Mr. GRAHAM.

That is provided for in the agreement-the par value of the stoek with 5 per cent simple interest and the bonus of 10 per cent.

Mr. LEFURGEY.

Mr. FOWLER.

What is the amount of the stock ?

Mr. ROBITAILLE.

It will be $400,000.

Mr. GRAHAM.

Hon. gentlemen are inclined to guess at that. I have here the figures given me by the accountant :

Bar value of the capital stock (round figures, $263,000) to which is to be added a bonus of 10 peir cent and. 5 per cent simple interest from the date the stock was paid up (approximately) $353,000.

Mr. R. L. BORDEN.

The statute provides that the government may take over the work on paying the amount of the stock with simple interest at 5 per cent per annum, the interest to be reduced toy any amounts paid as dividend, and also a bonus of 10 per cent. But there is something more important, and it is this : the government, taking over the stock and the whole enterprise, must assume all the obligations of the company entered upon with the consent of the government and also the bonded indebtedness. What is the amount covered by this last obligation so far as the minister is aware ?

Mr. GRAHAM.

I have a statement here showing the liabilities up to July 1 :

Statement as to July 1, 1908, showing the liabilities for which the government will be responsible in connection with the taking over of the Quebec.Bridge and Railway Company; also a statement of the assets of the said company.

Liabilities.

Total amount olaimed by the Bank of Montreal as due by the bridge company, being the balance of principal advances on bond account together with interest on the same; also the amounts of [DOT]temporary loans and interest on the same from the date the last advance was made on bond account $3,976,796 23

Total indebtedness of the company to the federal government, being the amount advanced under au-tlMxrity of chapter 35 of the Acts

of 1907 2,000,000 00

Interest on above, from February 9 to June 30 (approximately).. .. 23,334 00

Customs duties due to the federal

government 133,027 00

Land expropriated from the Quebec Improvement Company, some 32 acres, for which the company would accept in final settlement. 14,000 00

Par value of the capital stock (round figures, $263,000) to which is to be added a bonus of 10 per cent and 5 per cent simple interest from the date the stock was paid up (approximately) 353,000 00

Total for which the government will he liable $6,500,157 23

Roughly speaking, this is about the amount of the bonds I think. The Phoenix

Bridge Company make a claim for material delivered, but of course that Is not allowed. I need not discuss it.

Mr. FOWLER.

How much is it?

Mr. GRAHAM.

I think it is $215,000 for material delivered which does not belong to us. These following amounts are given me

as assets if the bridge is to be constructed in the same place :

Assets.

Biers which the company claims may be utilized in reconstructing the bridge on new plans, and which cost about $1,125,000, but which the company claims could not be built

to-day for less than $2,000,000.. .. $2,000,000 A pproacihes, including Ohaudiiere bridge, which the company claim are worth 4,000,000

Large quantities of miamufiacturedj steel, delivered at the time of the accident, or stored up in the company's yards since then, and part of which the company claim could

be utilized in construction 1,000,000

Total assets $4,000,000

Mr. FOWLER.

It is a pity you had not built more piers; as the profit on them would have met all the loss on the bridge.

Mr. GRAHAM.

Yes, if we could have sold them, but unfortunately the market is confined to only those piers needed for the bridge. Those that are there could not be built for less than $2,000,000.

Mr. FOWLER.

I suppose the material spoken of there is under water.