July 10, 1924

REPORTS OF COMMITTEES


MISCELLANEOUS PRIVATE BILLS Mr. H. B. McGIVERIN (Ottawa) presented the eighth report of the select standing committee on Miscellaneous Private Bills.


NATIONAL RAILWAYS AND SHIPPING


Mr. W. D. EULER (North Waterloo) presented the fifth and final report of the select standing committee on National Railways and Shipping, as follows: Your committee to which was referred for consideration and for report to the House, the estimates of the Canadian National Railways and the Canadian Merchant Marine, held fifteen meetings in the course of which it examined sundry witnesses including: Sir Henry Thornton, K.B.E., President and Chairman of the Board; Major Graham A. Bell, C.M.G., Deputy Minister of Railways and Canals; Gerard Ruel, K.C., Vice-President and General Counsel; W. D. Robb, Vice-President in charge of insurance, lands, express, telegraphs, colonization, development, and so forth; C. B. Brown, Chief Engineer, operation department; R. L. Fairbaim, Manager, passenger service bureau; T. H. Cooper, General Auditor, and R.A C. Henry, Director, bureau of economics. In connection with its consideration of the estimates, your committee made careful examination of the annual report, both of the Canadian Government Merchant Marine and Canadian National Railways. Our conclusions and recommendations with respect to the Merchant Marine have already been reported to the House. Considerable evidence was adduced in regard to the purchase by the management of the Canadian National Railways ot a property in Paris, from which it appears that the sum expended to April 30, 1924, amounts to about $2,600,000 in Canadian currency. If the property is retained, the remodelling of the building for office purposes is estimated to cost from $400,000 to $700,000 in addition, this amount depending upon the requirements of prospective tenants. The evidence indicates that the management is of the opinion that adequate quarters in Paris are desirable and that its action in acquiring the property was legal. From the evidence given before the committee, it appears that the price paid was not in excess of its value and that rental values in this section of Paris are increasing. The evidence further indicates that the management of the Canadian National Railways did not originally propose to make a large capital investment in Paris real estate; therefore, if it can be done advantageously and adequate quarters for the purposes of the Canadian National Railways retained, your committee is of the opinion that this property might be sold, so as to reduce capital investment. Your committee is of the opinion that the acquisition or sale of property for railway purposes, involving large sums of money, ought not to be possible except by authority of order in council previously obtained.Your committee reviewed, so far as time permitted, the operating statements of the company and, onthe evidence adduced, is of the opinion that thecustomary and necessary maintenance of the permanent way, structures and equipment has not been slighted, but that the general standard of the company's physical property has been improved. In regard to the transport of His Majesty's mails, the evidence submitted indicates that there is at present an unequal distribution of mail services between the different railways-in some instances resulting in inferior service to the public. Your committee feels that adequate mail service is of paramount importance in the public interest and should take preference over the interests of any railway. Your committee suggests that the government take steps to review the whole question as to the transport of mails throughout Canada in order that an equitable distribution may be effected. Item No. 137 of the estimates before the House provides for an amount of $56 000,000 to meet expenditures by the company for the coming year on the following accounts:- 1924-25 1923-24 (a) Interest on securities notes and other obligations ; also, rentals for lease of lines $18,745,639 58 $22,609,260 34 (b) Equipment principal payments, sinking fund-miscellaneous maturing or matured notes and other obligations secured or unsecured.. .. (c) Operating income deficit whenever incurred or ascertained (d) Construction and betterments, including coordination, acquisition of property and purchase of equipment.. $56,000,000 00 $74,550,000 00 5,867,633 33 1,467,138 48 29,919,588 61 8,507,699 33 10,400,000 00 33,033,040 33 From the evidence given your committee feels that the amounts asked for are necessary for the purposes of the company during the coming year and should be granted. Your committee suggests that in regard to all matters relating to immigration and colonization the Canadian Pacific and Canadian National Railways be invited to co-operate as closely as possible with each other and with the departments of the government concerned with such matters. Your committee desires to direct the attention of the government to the apparent unnecessary competition and duplication of services between important centres by the Canadian National and Canadian Pacific railways and to suggest that the railways be invited to consider the whole question with a view to the elimination whenever possible of unnecessary duplication and



National Railways and Shipping competition, so as to conserve the revenues and resources of both companies while still rendering adequate service to the public. Your committee is of the opinion that the capital sum upon which interest charges are now computed in making up the annual income statements of the Canadian National Railways is excessive and desires to suggest that the government give early consideration to the feasibility of reducing same. Your committee desires to direct attention to the following remarks of the president of the Canadian National Railways upon the completion of his examination by the committee: "It is, in my judgment, quite essential that there should be some vehicle of discussion and communication between the administration of the railway system and the representatives of the shareholders, who are the people of Canada, and those representatives are, of course, members of the Dominion Parliament. Now, all of the discussion we have had, from ray point of view, has been extremely illuminating, has been of great assistance, and I only hope that some method will be provided of enabling the administration to discuss with some suitable body of the House the various questions with respect to which there may be misunderstandings. I hope that something will be done to provide a vehicle of that sort. As far as the members of this committee are concerned, although presumably their duties and responsibilities will end with the report, and the adjournment of the House, still I should like very much to be in a position to discuss from time to time, not only this year, but in subsequent years if I am here, matters which affect the people of Canada, and their railway system, and discuss these matters with the accredited representatives of the people, who are necessarily members of the Dominion Parliament." Your committee desires to lay on the Table of the House a copy of the evidence and of certain statements requested of attending officials, which have been printed with the evidence. In doing so the committee desires to record its appreciation of the assistance and co-operation of such representatives of the Canadian National Railways and Shipping as appeared before it. Your committee wishes to point out that it did not commence to function until June 17th, and the review of the estimates and annual statement was necessarily limited. Your committee begs to recommend that its proceedings, together with the evidence taken, be printed as an appendix to the Journals of the House and that rule 74 be suspended in connection therewith. All of which is respectfully submitted. W. D. Euler, Chairman.


LIB

William Daum Euler

Liberal

Mr. EULER moved:

That in accordance with the recommendation contained in the fifth report of the select standing committee on National Railways and Shipping, the proceedings of that committee, together with the evidence taken, be printed as an appendix to the Journals of the House, and that rule 74 be suspended in connection therewith.

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Motion agreed to.


BANKING AND COMMERCE


Fifteenth and sixteenth reports of the select standing committee on Banking and Commerce-Mr. Vien.


BUSINESS OF THE HOUSE

MORNING AND SATURDAY SITTINGS


Hon. GEORGE P. GRAHAM (Minister of Railways and Canals): I beg to move: That on and after Saturday, the 12th day of July instant, until the end of the present session, the House shall meet at eleven o'clock in the morning of each day except Sundays, and that in addition to the usual intermission at six o'clock, p.m., there shall be also, an intermission every day from one to three o'clock, p.m., and that the various committees of the House be at liberty to sit during the sessions of the House, and that on Saturdays the procedure and order of business be the same as on Friday.


CON

William Alves Boys (Whip of the Conservative Party (1867-1942))

Conservative (1867-1942)

Mr. W. A. BOYS (South Simcoe):

Mr. Speaker, when the Prime Minister (Mr. Mackenzie King) made this motion yesterday I thought that possibly the importance of the day had been unintentionally overlooked, and that on this being brought to their attention the government would let us have this Saturday free. Many of us, without the slightest thought of the day being taken, have made engagements. We would like to keep them, and I think it is unfortunate that at such Short notice this should be selected as the first day on which to begin morning sittings. I would also remind the leader of the House (Mr Graham) that it is not usual to resort to morning and Saturday sittings until we are in sight of prorogation. Now we may or may not be in sight of it-I think every member knows what I have in mind -when I say that -and I would again suggest that morning sittings be deferred until Monday.

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?

Some hon. MEMBERS:

No.

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LIB

George Perry Graham (Minister of Railways and Canals)

Liberal

Mr. GRAHAM:

Of course, Mr. Speaker, we are in the hands of the House as to what ought to be done. I thought all the members were very anxious to get home,-

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PRO
LIB

George Perry Graham (Minister of Railways and Canals)

Liberal

Mr. GRAHAM:

- and we had arranged for a very short council meeting on Saturday in order that we might not be absent from the House. A\ e thought we were really voicing the sentiments of the vast majority of members that we should meet on Saturday.

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CON

William Alves Boys (Whip of the Conservative Party (1867-1942))

Conservative (1867-1942)

Mr. BOYS:

The Prime Minister stated

yesterday that the House would rise at six o'clock on Saturday, so the sitting would only be about five hours.

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LIB

George Perry Graham (Minister of Railways and Canals)

Liberal

Mr. GRAHAM:

There is no intentional slight on the day, for we worked hard on the First of July. I know parliament would excuse those members who have made Engagements, and we have tried to arrange the programme so as not to take up any business

Morning and Saturday Sittings

which would embarrass them on account of their absence from the House. But we are in the hands of the House; we will do whatever members say.

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?

Some hon. MEMBERS:

Carried.

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July 10, 1924