Sir HENRY DRAYTON:
My hon. friend is quite right; I suppose it is covered by some assets. But there is certainly not enough of assets to cover it appreciably. And in any case, is it any more represented by a physical asset than would be the case either with a harbour or with a dry dock? Is there any more reason for showing honestly in our books the cost of our canals and the like? What difference is there, seeing that the railways are ours? We have in connection with them either assets or liabilities and if we are to be honest about it we should show the exact state of affairs. I submit therefore that my hon. friend's calculation as to debt is entirely wrong. There is just one modification which the situation may suggest, and it certainly is
not apparent to us. The railways say that they advanced their capital $118,000,000, but I can hardly understand how that could take place unless they have some cash on hand; and to the extent that they have cash on hand I quite agree that that amount might be deducted.