June 14, 1920

L LIB

Georges Henri Boivin (Deputy Speaker and Chair of Committees of the Whole of the House of Commons)

Laurier Liberal

The CHAIRMAN:

Because it will be entirely out of order to enter into a general discussion concerning the harbour of St. John in connection with this Bill.

Topic:   QUESTIONS.
Subtopic:   PICTOU HARBOUR.
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L LIB

Rodolphe Lemieux

Laurier Liberal

Mr. LEMIEUX:

I am afraid of the prospect of any further dealings with harbour commissions in the Maritime Provinces. We were assured when the subject of the St. John harbour works was before the House that everything was above board. Now we find that gentlemen at St. John are selling harbour bonds,-and it is quite easy for them to get the money when the name of the Dominion appears as the guarantor of those bonds. We are taxed beyond the human limit, and the people of this country are quite willing to be so taxed, but only in a legitimate way, and they will not tolerate any such incursions on the Government Exchequer.

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Subtopic:   PICTOU HARBOUR.
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UNION

Charles Colquhoun Ballantyne (Minister of Marine and Fisheries; Minister of the Naval Service)

Unionist

Mr. BALLANTYNE:

It is true that a

year ago authority was given by Parliament for the taking over, under conditions clear-

ly specified in legislation introduced for that purpose, of the port of St. John and placing it under a commission. But effect could be given to that legislation only after the city of St. John held a referendum in which the majority of the people declared themselves in favour of nationalizing the port and placing it under a commission. Such a referendum has not yet been held; therefore the port has not. been nationalized-

Topic:   QUESTIONS.
Subtopic:   PICTOU HARBOUR.
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L LIB
UNION

Charles Colquhoun Ballantyne (Minister of Marine and Fisheries; Minister of the Naval Service)

Unionist

Mr. BALLANTYNE:

Just allow me to finish. The Government, accordingly, did not guarantee any of the debentures for the city of St. John, so far as my knowledge goes. They will do so only after a referendum is taken and the harbour passes under the jurisdiction of the Minister of Marine. At present the city of St. John do their own financing for the port; the Dominion Government do not guarantee any of their debentures.

Topic:   QUESTIONS.
Subtopic:   PICTOU HARBOUR.
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L LIB

Frank S. Cahill

Laurier Liberal

Mr. CAHILL:

When the resolution was before the committee I asked why special treatment was given in this particular case. For instance, I have a communication from residents of Fabre, on lake Timiskaming, who claim that their dock was damaged by the ice last winter and that they have been obliged to land their goods on the shore; yet they are paying wharfage dues. Why are these people treated differently from the people of Pictou? What is the policy of the Government in regard to wharves where dues are being paid but where the necessary accommodation is not being furnished? Will it be necessary for the minister to bring in a Bill for each one?

Topic:   QUESTIONS.
Subtopic:   PICTOU HARBOUR.
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UNION

Charles Colquhoun Ballantyne (Minister of Marine and Fisheries; Minister of the Naval Service)

Unionist

Mr. BALLANTYNE:

This procedure has been followed on more than one occasion. For instance, under my predecessor, Sir Douglas Hazen, the harbour of North Sydney was transferred from the Department of Marine to the Department of Public Works. I mention only this instance now, but I could cite many other similar cases. I would suggest that my hon. friend (Mr. Cahill) should write me in regard to the particular harbour that he speaks about. If the revenue there is not sufficient to keep the wharf in a satisfactory state of repair, it would be quite in order for me to bring the matter to the attention of this House, as has been done in the case of Pictou harbour.

Topic:   QUESTIONS.
Subtopic:   PICTOU HARBOUR.
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L LIB

William Duff

Laurier Liberal

Mr. DUFF:

If this Bill passes will the business of the port be conducted by the harbour master or by an engineer of the

Department of Public Works when repairs are necessary?

Topic:   QUESTIONS.
Subtopic:   PICTOU HARBOUR.
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UNION

Charles Colquhoun Ballantyne (Minister of Marine and Fisheries; Minister of the Naval Service)

Unionist

Mr. BALLANTYNE:

The business of the harbour will be conducted by the harbour master, who will be under the Public Works Department.

Topic:   QUESTIONS.
Subtopic:   PICTOU HARBOUR.
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L LIB

Daniel Duncan McKenzie

Laurier Liberal

Mr. McKENZIE:

I would like to know definitely from the minister what the policy of the Government will be after the authority which has hitherto been vested in harbour commissions has been done away with. How will the works that are now in existence be maintained? Under present conditions, whatever money these commissioners get is used for the building of wharves and breakwaters and their maintenance, as well as a little dredging. The minister mentioned the harbour of North Sydney. We have a few works in that harbour which were built by the commission. The breakwater near the north end of the harbour is so old that I cannot tell the minister whether it was 'built by the commission or not. I do know that while the commission were in existence they used to repair the breakwater and keep it in shape. During the last two years, since the commission went out of existence, the whole of the harbour and its works have been under the control of the Government, and I have been instructed by men interested in the conditions at North Sydney that this breakwater, which is a very useful structure, affording protection to the whole harbour and particularly to the coal and iron ore piers of the Nova Scotia Steel Company, is falling into decay or disrepair. Very little money will keep it in repair, but if it is broken up or destroyed by the action of the sea it will cost a great deal to put it in good condition. I bring this matter to the notice of the minister with a view to his seeing that this useful breakwater is not allowed to be brokqn up or destroyed.

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Subtopic:   PICTOU HARBOUR.
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Section agreed to. . On section 3-obligations assumed by His Majesty:


L LIB

William Duff

Laurier Liberal

Mr. DUFF:

The minister has said that there were no obligations or liabilities; yet this section provides:

Ail proceedings in any court either instituted by or against the said Commissioners may be proceeded with as if this Act had not passed.

That would seem to indicate that there are liabilities and obligations.

Topic:   QUESTIONS.
Subtopic:   PICTOU HARBOUR.
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UNION

Charles Colquhoun Ballantyne (Minister of Marine and Fisheries; Minister of the Naval Service)

Unionist

Mr. BALLANTYNE:

This is merely put in for legal purposes so that if any one should resurrect a claim that we do not know of at present, action shall lie against

His Majesty the King instead of against the harbour commissioners of Pictou.

Topic:   QUESTIONS.
Subtopic:   PICTOU HARBOUR.
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L LIB
UNION

Charles Colquhoun Ballantyne (Minister of Marine and Fisheries; Minister of the Naval Service)

Unionist

Mr. BALLANTYNE:

No.

. Mr. McKENZIE : I understood the minister to give his assent to what I suggested in regard to the harbour of North Sydney, though he did not say so; and that he is willing to look after these works and keep them in repair. The people of North Sydney, who will be watching Hansard in order to see what it has to say in regard to the matter, will not he able to obtain from Hansard what is in the mind of the minister. I should, therefore, like him to declare in a general way his policy as regards those works that are being taken over. I am sure the policy will be to maintain them, and that being the case, it will be more satisfactory to our people who are now at the mercy of the Government as regards the maintenance of those works, if the minister puts a declaration of his policy on Hansard.

Topic:   QUESTIONS.
Subtopic:   PICTOU HARBOUR.
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UNION

Charles Colquhoun Ballantyne (Minister of Marine and Fisheries; Minister of the Naval Service)

Unionist

Mr. BALLANTYNE:

The reason I did

not make a direct answer to my hon. friend is due to the fact that the port of North Sydney comes under the Public Works Department and not the Department of Marine. I see the Acting Minister of Public Works is not in his seat, but I shall be very glad to bring to his attention the representations made by my hon. friend in that regard.

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Subtopic:   PICTOU HARBOUR.
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Section agreed to. Bill reported, read the third time and passed.


INLAND REVENUE ACT AMENDMENT.


On motion of Hon. Martin Burrell (Minister of Customs and Inland Revenue), the House went into committee to consider the following proposed resolution, Mr. Boivin in the Chair: Resolved, That it is expedient to bring in a measure to amend the Inland Revenue Aot, chapter 51 of the Revised Statutes of 1906, and to provide:- 1. That the definition of " chemical still " in paragraph (g) of section 3 of the said Act be amended so as to include the provision that " chemical still " shall mean any distilling apparatus the measured content of which is less than fifty gallons; and that section 150 be amended by providing that a chemist or druggist using a chemical still, the measured content of which does not exceed three gallons, may be permitted to use the same upon registration as provided therein; 2. That the definition of " standard leaf tobacco " in paragraph (c) of section 8 be amended so as to include the provision that " standard leaf tobacco " as applied to any kind of tobacco means that which contains ten per cent or more of moisture; 3. That section 155 be amended to provide for abatements to be allowed in the computation of duty upon spirits, for shrinkage by evaporation while maturing, when stored in warehouse in wooden or in ventilated metal ; S[Oj.req uepooAV ui ao s^uer 4. That sction 171 be amended to provide that the Governor in Council may suspend, during such period or periods as he may deem necessary, the operation of subsection 4 of this section, which provides that no spirits subject to excise which have not been warehoused for at least two years shall be entered for consumption ; 5. That section 180, respecting distilling without license, be amended by increasing the penalty of not less than $100 for a first offence to a penalty of not less than $200; and that section 185, respecting the sale of spirits unlawfully manufactured, be amended by increasing the penalties for a first offence not exceeding $50, and not less than $10, and for each subsequent offence, a penalty of $100, to penalties respectively not exceeding $500 and not less than $200, and for each subsequent offence a penalty of $500 ; 6. That section 180, respecting distilling without lioense, be further amended by adding a subsection to provide that in every prosecution under this section, the certificate of analysis from a Departmental Analyst shall be accepted as evidence of the alcoholic content of the beer or wash suitable for the manufacture of spirits; 7. That subsection 1 of section 198 be amended to provide that the bond to be given by a brewer shall be in the sum of $2,000 instead of $1,000; 8. That section 252 be amended to provide that the excise duty on spirits used in any bonded factory in the production of vinegar, on every gallon of the strength of proof by Sykes' hydrometer, shall be 27 cents, and so in proportion for any greater or less strength and for any less quantity than a gallon; 9. That section 255 be amended that there may be a remission of duty on malt used in the manufacture of vinegar, or malt used in combination with cereals, in such proportion as is established by the Governor in Council; 10. That subsection 2 of section 266 of the said Act, as enacted by section 7 of chapter 34 of the statutes of 1908, be amended to provide that the words "Methyl Hydrate-Poison" in black letters not less than one-quarter inch in height be affixed by containers of methyl alcohol in medicinal preparations intended for external use; 11. That section 267 be amended to provide that the Governor in Council may from time to time make regulations respecting the sale of spirits to be used for any chemical or manufacturing purposes riot otherwise provided for; 12. That section 282 be amended by adding a subsection to provide that the Department may authorize the preparation of tobacco and cigars in packages of such size and the issue of stamps in such denominations to govern the same as may appear advisable, but as to the necessity or advisability of issuing such stamps, the department shall be the sole judge; 13. That section 316, as enacted by section 19 of chapter 34 of the statutes of 1908, be amended to provide that no less quantity than 5,000 cigars shall be entered for warehouse by one entry, and except for export no less quantity than 2,000 cigars shall be ex-warehoused by one entry; 14. That the 6aid Act be amended by adding 'thereto a section, 328B, to provide (1) that every person who desires to pack or cure Cana-lian Leaf Tobacco shall make application to the Collector of Inland Revenue for the division in which his premises are situated, for a license therefor; for which license the packer shall pay a sum of $50 and furnish a bond of a guarantee company, approved by the Department, for the sum of $1,000; and he shall keep such books and make such returns as shall be required by the Department; (2) that the Minister may make such regulations as he deems advisable respecting the sale of Canadian Leaf Tobacco by cultivators, packers and retail dealers and for the carrying out of the provisions of this proposed section; (3) that a packer, for the purpose of this section, is a person or firm, other than a cultivator and other than a retail merchant selling direct to a consumer, who prepares, packs or keeps Canadian Raw Leaf Tobacco for sale to a licensed packer, licensed manufacturer, licensed cultivator, retail merchant, or for export; and (4) that the penalty for violating any provision of this section or refusing or neglecting to comply with the requirements of the Act or any regulations made thereunder, shall be a fine of not less than fifty dollars and not exceeding two hundred dollars or to imprisonment for a term not exceeding two months or to both fine and imprisonment, and all Canadian Leaf Tobacco found in the possession of any person so violating this section shall be forfeited to His Majesty ; 15. That section 366 and 367 be repealed, and in lieu thereof it be enacted that acetic acid may only be sold under the name of acetic acid, and no manufacturer, vendor or other dealer in the same shall be permitted to sell or offer for sale acetic acid under the name or as a substitute for vinegar, and that the penalty for violation of this provision shall be not less than $200, and all acetic acid found on the premises wherein any such offence is committed shall be forfeited to the Crown, and shall be seized by any officer of Inland Revenue and dealt with accordingly. 16. That section 251, relating to the supply of wood naphtha, wood alcohol, or methylated or other denaturalized spirit to be used for manufacturing purposes in Canada, and Part X of the said Act, as enacted by chapter 34 of the statutes of 1968, respecting the manufacture of wood alcohol, be repealed, and that in lieu thereof a new Part X be enacted to provide:- (a) That "denatured alcohol" shall mean alcohol in suitable admixture with such de-naturants as to render it in the judgment of the Minister non-potable, and to prevent recovery of the ethyl alcohol; and "especially denatured alcohol" shall mean alcohol in suitable admixture with such special denaturants as have been approved by the Minister; (b) That denatured alcohol and specially denatured alcohol which is intended for use in the arts and industries, or for fuel, light or power, or for any mechanical purpose, may be manufactured in Canada, free from excise duty; (c) That except as provided by this Part no alcohol shall be manufactured, denatured or recovered in Canada except in distilleries thereto licensed; ' [DOT] (d) That denatured alcohol shall be sold, delivered and transported without restriction to dealers, manufacturers and other persons, but specially denatured alcohol shall only be sold or delivered under a departmental permit to dealers and manufacturers, to be used in the. arts and industries in cases where denatured alcohol would be unsuitable, and shall only be moved or transported under such conditions as the Minister may, by regulations, prescribe; (e) That no alcohol shall be manufactured or sold under the provisions of this Part for beverage purposes ; (f) That the recovery of alcohol after it has been used for industrial purposes, and its redistillation and purification shall only be done on the premises in which the alcohol was used or at a duly licensed distillery, and all alcohol recovered on the premises aforesaid must be used in the same manufacturing establishment in which it was originally used ; (g) That labels on vessels containing wood alcohol or denatured alcohol shall bear the words "Methyl-Hydrate-Poison" in black letters on white ground not less than one-fourth of an inch in height. (h) That as respects wood alcohol a license shall be required to carry on its manufacture, approved by the district inspector, and the manufacturer shall, jointly with a guarantee company approved by the Department, enter into a bond to His Majesty in the sum of $4,000, conditioned for the rendering of all accounts, inventories and returns required by law, for the payment of all penalties incurred by the licensee, and for faithful compliance with the requirements of the Act; and the person in whose favour a license is granted shall pay a license fee of one dollar upon receiving such license; (i) That any person who holds in possession, sells, exchanges or delivers any alcohol or specially denatured alcohol contrary to the provisions of this Part shall be liable upon summary conviction, to a penalty of not less than two hundred dollars and not exceeding five hundred dollars ; and all the provisions of Part II of the said Act respecting bonded manufacturers, licensee, and the obligations of persons holding them, the keeping of books of accounts and the making of returns, and all provisions respecting penalties, so far as applicable, shall apply to the manufacture of wood alcohol, the manufacture, denaturing, special denaturing and recovery of alcohol, and the persons licensed as herein provided.


UNION

Henry Herbert Stevens

Unionist

Mr. STEVENS:

I wish to 'bring to the

attention of the minister a matter I have already taken up with his- department and to ask that before the Bill is finally passed the request I am going to make be given consideration. Owing to the increased tax on alcohol, the cost to hospitals will be considerably increased. I am informed by the Vancouver General Hospital, for instance, and the same will be true in varying degree of all hospitals, I presume, that the increased tax will result in additional cost to that one hospital, which is a very large institution, of upwards of $3,000 per annum. As there are many hospitals, the cost will

be increased to them very, very materially in the aggregate. I would suggest to the minister that when the Bill is brought down it should contain a provision that spirits used exclusively in hospitals for medicinal purposes shall be exempt from taxation.

Topic:   QUESTIONS.
Subtopic:   INLAND REVENUE ACT AMENDMENT.
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June 14, 1920