April 6, 1927

CON

John Arthur Clark

Conservative (1867-1942)

Mr. CLARK:

I am afraid I misunderstood;

I thought the hon. member was giving the facts to this House to justify us in voting for the second reading of this bill and for the payment of that claim.

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

Kenneth Alexander Blatchford

Liberal

Mr. BLATCHFORD:

No, I am not asking you to vote for it; use your own judgment.

I am simply laying the cards on the table.

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:

But the hon. member has

stated that he is the .president of this company, and that if a settlement is made his company will be reimbursed. Is that correct?

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

Kenneth Alexander Blatchford

Liberal

Mr. BLATCHFORD:

Naturally we expect to be paid for our trouble and for the money we spent.

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:

And he as a shareholder in

this company, will receive a portion of the proceeds.

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

Peter John Veniot (Postmaster General)

Liberal

Mr. VENIOT:

Is a cross-examination of

this kind quite proper, Mr. Chairman?

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 think it is very vital,

because I think this is violating all the rules of procedure. I think it is quite clear that the hon. member is deeply interested in that settlement and in the receipt of money coming from a vote of parliament.

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

Kenneth Alexander Blatchford

Liberal

Mr. BLATCHFORD:

I am simply explaining the case to the hon. member for West Calgary.

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:

He knows more about it than you do, apparently.

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

John Gordon Ross

Liberal

Mr. ROSS (Moose Jaw):

He does about

everything.

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:

No; the hon. member

for Moose Jaw (Mr. Ross) has mistaken himself for myself. I do not arrogate to myself the' knowledge of everything, as he

Vancouver Harbour Commission

does; I know something about a few things, which is different. The hon. gentleman who has just resumed his seat is quite right in drawing attention to the fact that I spoke of the capital as being $1,000,000. That is wrong; the alleged expenditure was what I meant. The capital was $250,000, of which $20,000 was paid up. Under the Companies Act it is required that 10 per cent, or in this case $25,000, be paid up before the company may exist, so this company had no right to function.

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

Kenneth Alexander Blatchford

Liberal

Mr. BLATCHFORD:

The company never functioned; we never operated under the lease. The company was incorporated and it is still incorporated and still in good legal standing.

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:

That is very delightful. The company never functioned; it had no legal existence since $20,000 was paid up while the law requires $25,000. Therefore it cannot maintain an action in a court of law.

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

Kenneth Alexander Blatchford

Liberal

Mr. BLATCHFORD:

We never handled

one dollar's worth of grain, because we never took over the plant.

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:

Nearly everyone except my hon. friend understands the facts. There never was a legal company.

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

Kenneth Alexander Blatchford

Liberal

Mr. BLATCHFORD:

Certainly there was.

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:

The royal commission

found that only $20,000 of the capital stock had been paid up, while the law requires that $25,000, in this case, be paid. Therefore there was no legal entity entitled to function and to enter into a lease, so any lease thereby secured would be void. The company never was a company; it never existed as such; it had no identity as such and could not maintain an action in a court of law. Therefore this Claim against the harbour commissioners is quite in accord' with the opinion generally held by the public. That is, a few gentlemen favourable to the administration of the day have been able to make the arrangement in question. The hon. gentleman has made perfectly clear that the company never had a legal existence. It does not exist in law, only $20,000 being paid up whereas the Companies Act says that 10 per cent must be paid up before a company can function as such. Therefore there has never been a company. It can maintain no action, no claim; and any money paid by the harbour commission to a company that has no existence should be recovered by those who paid it. That is the story.

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

Kenneth Alexander Blatchford

Liberal

Mr. BLATCHFORD:

The hon. gentleman is not correct. There was $40,000 subscribed

and the cheque was in the treasury. Only $20,000 was being used for the simple reason that everything was tied up and the company was unable to operate in view of the fact that the elevator was not completed.

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:

The royal commission reported that $20,000 was paid up.

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

Kenneth Alexander Blatchford

Liberal

Mr. BLATCHFORD:

I have the particulars right here.

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