Hon. C. D. HOWE (Minister of Transport) :

Mr. Speaker, I desire to lay on the table the annual report of the Canadian National Railways for the year ended December 31, 1937; the annual report of the Canadian National (West Indies) Steamships, Limited, for the year ended December 31, 1937; the report to parliament of George A. Touche and Company, auditors of the accounts of the Canadian National Railway system, for the year ended December 31, 1937, and the annual report of the Canadian National Securities Trust for the year ended December 31, 1937.

These annual reports, together with the railway estimates, will be referred to the standing committee on railways and shipping. With the unanimous consent of the house, Mr. Speaker, I now move:

That the resolution passed by the house on February 11, 1938, referring the following

estimates to the committee of supply, be rescinded, and that the said estimates be now referred to the standing committee on railways and shipping:

Vote 427-Maritime Freight Rates Act, Canadian National Railways Eastern lines, 20 per cent reduction in tolls, $2,278,000.

Vote 428-Maritime Freight Rates Act, railways other than Canadian National Railways, 20 per cent reduction in tolls, $860,000.

Vote 437

Prince Edward Island car ferry and terminals, capital construction and improvements, $35,000.

Vote 438-Canadian National (West Indies)

' Steamships, Limited, capital advances, $24,000.

Right Hon. R. B. BENNETT (Leader of the Opposition):

Mr. Speaker, I think on

reflection the minister will be inclined to withdraw his motion in so far as it affects

C.NR.-Employees

at least two of the votes he mentions. As to the first two, we have passed a statute by which a twenty per cent reduction in tolls is to be made in respect of the government road as well as other railways, and that obligation we cannot lessen or increase unless by statutory authority. It is merely a matter of computation. I should think therefore that votes 427 and 428 would not be referred to the special committee, because they represent a commitment that we cannot avoid. The item with respect to the car ferry is really a part of the accounts of the Canadian National and was so dealt with until the representatives of the island and all parties were insistent that there should be separate accounts of the island ferry. Inasmuch as the item of $35,000 which covers capital expenditures would be in the ordinary course money that has to be found by the country-perhaps more, perhaps less, depending on circumstances-I think that properly should be referred to the committee, and the same applies to vote 438. I am inclined to think the Department of Justice would advise the minister that the first two items are such that the committee cannot exercise any authority over them.

Mr. HOWE:

With reference to the two

statutory items, it has been the custom to refer them to the special committee. There has frequently been a good deal of interest on the part of the committee in how the accounts are made up. We have on occasion called Mr. Campbell, of the railway board, whose particular function it is to make up these accounts, to explain them to the committee, and I believe that under the circumstances the committee will be interested in examining those two items.

Mr. E. J. WERMENLINGER (Verdun):

May I ask the Minister of Transport (Mr. Howe) a question? If, according to to-day's news, three hundred and fifty employees of the Canadian National Railways are to be laid off at Pointe St. Charles shops, St. Ann's constituency, on Thursday of this week, is this not a contradiction of the explanation given to the house last week?

Order.

Mr. WERMENLINGER:

It was supposed that there was to be an agreement between the

heads of the unions and the transport board. There is to be a general convention of railway employees-

Order.

Mr. WERMENLINGER:

-in Vancouver.

Mr. SPEAKER:

Order. I must inform

the hon. member that he cannot make a speech, but must confine himself to putting his question.

Mr. WERMENLINGER:

I ask the Minister of Transport to give us an explanation why three hundred and fifty men of the Canadian National Railways shops are being laid off on Thursday of this week.

Hon. C. D. HOWE (Minister of Transport):

The reason for the reduction in shop forces is, of course, the lack of work to keep the number of shop men now employed at work. The management of the railway and the heads of the unions are coming to my office tomorrow to discuss procedure. Pending that discussion, I can add nothing to what I have said before.