April 6, 1927

CON

Richard Bedford Bennett

Conservative (1867-1942)

Mr. BENNETT:

That is true.

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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LIB

Kenneth Alexander Blatchford

Liberal

Mr. BLATCHFORD:

In the case of the

Alberta Pacific Company the record shows that only $24,500 was paid up, and that they made millions during the war while Canada was fighting for her life.

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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CON

Richard Bedford Bennett

Conservative (1867-1942)

Mr. BENNETT:

But your company never

functioned.

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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LIB

John Frederick Johnston (Deputy Speaker and Chair of Committees of the Whole of the House of Commons)

Liberal

The CHAIRMAN:

This discussion, which

has gone on for some considerable time, is irrelevant to the particular matter before the committee, and I must ask hon. gentlemen to confine themselves more strictly to the question under consideration.

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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CON

John Arthur Clark

Conservative (1867-1942)

Mr. CLARK:

I should like to ask the

minister whether or not the claim of the company of which my hon. friend for East Edmonton is president will be paid out of this vote?

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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LIB

Pierre-Joseph-Arthur Cardin (Minister of Marine and Fisheries)

Liberal

Mr. CARDIN:

I stated, when we discussed the resolution upon which the bill is based, that this amount was provided for in the $4,000,000. The observation was made that it might have been taken out of the revenue of the harbour commission instead of making it a capital payment. I quite admit that the payment might have been made through the revenue account but, as I said, if this course had been followed parliament would not have been given the opportunity of passing judgment upon it, and we would have been deprived of the views which have been expressed by hon. gentlemen opposite. The fact that we come here and mention this very amount shows that we are quite ready to place all the facts before the House. We were not afraid of throwing complete light upon this transaction, and the position in which the harbour commission finds itself. It is all very well for the hon. member for West Calgary to say that there is no company. I would hesitate to pass judgment as to the effect of the federal law in the case of companies, but according to the laws of my own province, the fact that the whole capital amount has not been subscribed, or that the required percentage of capital has not been paid, does not mean that the company is not legally organized; the directors become personally responsible for the indebtedness of the company. I believe the situation is the same under the federal Companies Act. Under that law the company is obliged to have a certain amount of capital paid up before it starts to do business. If that is not done the directors become responsible personally, but the company exists just the same. I submit that this company was capable of entering into a lease with the Vancouver harbour commission. In cases of losses the creditors of the company would have had their recourse against the directors personally because they started to do business before a ce'rtain percentage of capital stock had been paid up.

Vancouver Harbour Commission

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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CON

Hugh Guthrie (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. GUTHRIE:

Would the minister inform me1-I do not know very much about the case-if litigation actually took place? Was an action entered in the court to recover the amount?

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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LIB

Pierre-Joseph-Arthur Cardin (Minister of Marine and Fisheries)

Liberal

Mr. CARDIN:

I will be very frank in

saying that I have no personal information that an action had been entered in the courts. The hon. member from East Edmonton said that action had been taken for $250,000, and it was following those proceedings that the harbour commissioners consulted their counsel. They received from counsel the opinion that it would be advisable for the commission to try and make a settlement of the claim.

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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CON

John Arthur Clark

Conservative (1867-1942)

Mr. CLARK:

I do not wish to interrupt

in any way but I wonder if the minister could read the opinion given by Mr. E. P. Davis.

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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LIB

Pierre-Joseph-Arthur Cardin (Minister of Marine and Fisheries)

Liberal

Mr. CARDIN :

It is a very long document, but the substance of it is what I have stated. Counsel advised settlement. The first advice was given by the firm of Farris, Farris, Stultz and Sloan, and after having the advice of these counsel the harbour commissioners went to the office of a private counsel, Mr. E. P. Davis.

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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CON

John Arthur Clark

Conservative (1867-1942)

Mr. CLARK:

That is the one I want. I should like to have the gist of his advice.

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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LIB

Pierre-Joseph-Arthur Cardin (Minister of Marine and Fisheries)

Liberal

Mr. CARDIN:

Mr. E. P. Davis advised that it would be proper to make a settlement of that case. He did not say that the harbour commission had no case; but he expressed some doubt as to the position of the commission, and in view of that he advised that a settlement should be made.

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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CON

John Arthur Clark

Conservative (1867-1942)

Mr. CLARK:

May I have an opportunity of perusing that opinion?

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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LIB

Pierre-Joseph-Arthur Cardin (Minister of Marine and Fisheries)

Liberal

Mr. CARDIN:

I will hand it to my hon.

friend.

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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CON

Hugh Guthrie (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. GUTHRIE:

I understood from the discussion that in some way or another the Justice department had been consulted?

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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LIB

Pierre-Joseph-Arthur Cardin (Minister of Marine and Fisheries)

Liberal

Mr. CARDIN:

Yes.

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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CON

Hugh Guthrie (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. GUTHRIE:

Have they given an

opinion on that matter and, if so, what is it?

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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LIB

Pierre-Joseph-Arthur Cardin (Minister of Marine and Fisheries)

Liberal

Mr. CARDIN:

They have given an opinion along the same lines. They advise a settlement.

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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CON

Hugh Guthrie (Leader of the Official Opposition)

Conservative (1867-1942)

Mr. GUTHRIE:

Was any amount mentioned?

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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LIB

Pierre-Joseph-Arthur Cardin (Minister of Marine and Fisheries)

Liberal

Mr. CARDIN:

The Department of Justice say that they are not in a position to fix an amount. They give advice only on the question of a settlement.

Topic:   VANCOUVER HARBOUR COMMISSION LOAN OF $4,000,000 FOR TERMINAL FACILITIES
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April 6, 1927