March 1, 1912

CON
LIB

William Pugsley

Liberal

Mr. PUGSLEY.

Then the difference between that and the proposition of the late government is that we were not guaranteeing bonds for the bridges, but we were to give a substantial cash bonus, supposed to be one-third the estimated cost of the bridges. Then the provincial government were to provide an equal amount. I understand now that instead of giving ia cash subsidy this government agrees to guarantee the bonds.

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Subtopic:   FOREIGN.
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CON
LIB

John Howard Sinclair

Liberal

Mr. SINCLAIR.

I asked the minister whether the terms would be available to the government of Nova Scotia. Do I understand it .is a question of the probable revenue of the road; that is, that that is the only question that will have to be considered ?

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CON

Francis Cochrane (Minister of Railways and Canals)

Conservative (1867-1942)

Mr. COCHRANE.

In that respect, yes. I know we are taking desperate chances at 40 and 60 per cent. I do not know that there is going to be anything in it for the Intercolonial railway. '

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LIB
CON

Francis Cochrane (Minister of Railways and Canals)

Conservative (1867-1942)

Mr. COCHRANE.

Of the gross earnings. It makes a great deal of difference where that road will run, and whether it is possible to make both ends meet on the forty and sixty per cent basis. For the Intercolonial as a whole, it takes about ninety-five per cent of the revenue to meet running expenses. I would not like to commit myself to any definite proposition, but I would be glad to discuss any proposition the provincial government may have to make. I would rather encourage the building of roads- in that way than to see the federal government undertaking the whole responsibility of an enterprise to develop the natural resources of a province. I think that

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LIB

William Pugsley

Liberal

Mr. PUGSLEY.

the federal government should build what you might call trunk lines; but these branch lines in a province constructed .solely for the purpose cf developing natural resources, I would aid in the same manner as we are aiding the St. John Valley road.

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LIB

William Pugsley

Liberal

Mr. PUGSLEY.

The way we looked at the matter was this, that in all probability for a few years both governments might sustain some loss. We consider that the federal government would lose some money in operating on the 40 per [DOT]cent basis, but also the provincial government would incur some loss because until the earnings reached $2,500 per mile, the 40 per cent would not pay the interest and therefore for three or four years there might be a loss on the part of both governments. But I felt, and I think the late Minister of Railways and Canals felt, that when the earnings reached $2,500 or $3,000 per mile it would pay on a 40 per cent basis. The Canadian Pacific railway lease the Tobique Valley railway, they operate on a 40 per cent basis, and I am told that the results have been quite satisfactory.

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CON

Francis Cochrane (Minister of Railways and Canals)

Conservative (1867-1942)

Mr. COCHRANE.

Have they to provide anything for betterments ?

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Subtopic:   FOREIGN.
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LIB

William Pugsley

Liberal

Mr. PUGSLEY.

I do not know, but it is not unusual that we have companies operating on that basis.

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LIB

Daniel Duncan McKenzie

Liberal

Mr. McXENZIE.

When the minister comes before the committee again I desire and would like him to tell me as well as he can the particular purpose to which this vote in the estimates for the Sydney mines diversion will be devoted.

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Subtopic:   FOREIGN.
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CON

Francis Cochrane (Minister of Railways and Canals)

Conservative (1867-1942)

Mr. COCHRANE.

I will give all the details.

Some resolutions reported.

Mr. COCHRANE moved the adjournment of the House.

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LIB
CON

Francis Cochrane (Minister of Railways and Canals)

Conservative (1867-1942)

Mr. COCHRANE.

I understand that the Boundary Bill will be discussed on Monday, and then estimates.

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Motion agreed to. and House adjourned at 12.40 a.m., Saturday.



Monday, March 4, 1912.


March 1, 1912