July 8, 1940




William Lyon Mackenzie King (Prime Minister; Secretary of State for External Affairs; President of the Privy Council)


Right Hon. W. L. MACKENZIE KING (Prime Minister):

Mr. Speaker, the house is expecting from me to-day a statement with

respect to matters pertaining to the cabinet. I have thought that the occasion would be opportune to review the war organization of the government as a whole, inasmuch as it is impossible, in considering matters of advice to the ministry, to separate from its relation to the cabinet itself, which has to do with the for-i mulation of policy and seeing to its due execution, that part of the administration which has to do with executive and advisory work. I hope, therefore, that the house will bear with me if the statement which I have to make is somewhat lengthy. It is lengthy for the reason that I have sought to include in it the names of outstanding persons who have been appointed to the public service in connection with Canada's war effort. I thought it desirable that hon. members should see not only how comprehensive is the list but also how representative in character it is of all shades of political and other opinion and of the business interests in the country.

On different occasions, the leader of the opposition (Mr. Hanson) has drawn attention to ways and means of increasing the effectiveness of Canada's war effort.

This is an aim which is shared by all hon. members of parliament. By none will constructive suggestions calculated to contribute to its fulfilment be welcomed more cordially than by my colleagues and myself.

The particular ways and means to this end which, at one time or another, were suggested by the leader of the opposition have been the enlisting of the services of "the best men":-

(a) In executive and administrative posts,

particularly in those branches of government which have to do with the prosecution of Canada's war effort; .

(b) In an advisory capacity, where not possible to have their services enlisted either in whole or in part in executive or administrative posts;

(c) In the government itself;

By "the best men" is meant, I think I may assume, persons whose services or advice are available, and who, all circumstances considered, appear best suited for the positions it is necessary or desirable to fill.

It has also been urged by the leader of the opposition that the work of the cabinet should be so arranged as to free as largely as possible from other duties Ministers of the crown who preside over those departments of government which are primarily concerned with war activities, in order that the time and attention of these ministers may be given as exclusively as possible to a consideration of war policies and their effective prosecution.

War Organization-Mr. Mackenzie King

A review of what, in fact, has actually been accomplished will make clear that it is precisely along these lines that from the very outset the government has been proceeding. We have not sought to do everything at once, thereby involving unwarrantable expenditure, and having, as the war has progressed, to undo much that should never have been done; or, what is worst of all, by premature action, creating problems and situations more difficult of solution than those we have been called upon to meet. Rather have we sought to anticipate, as far in advance as was possible, the problems which were certain or likely to arise in the progress of the war, and to prepare in advance, as far as possible, for the meeting of each new situation as it might arise, taking, when the right moment came, the additional measures required to deal effectively with it. These additional measures to meet new situations as they have arisen, have involved bringing continuously into the service of the state and to the aid of the ministry, in an executive, administrative or advisory capacity, available persons of outstanding ability and experience. It is along these lines that we shall continue to seek to meet each new situation as it is born of the exigencies and demands of the war.

In speaking on these matters, the leader of the opposition called attention to the following statement which I made in the course of the general elections held at the beginning of this year:

With the war and its problems growing in intensity and magnitude, I shall seek, if we are returned to power, to bring to the aid of the ministry, in an advisory capacity, a still larger number of men of outstanding ability and experience whose services in one way or another might be made available to the state, and add strength to the administration of our policies. How best their services might be consolidated and used whether (a) in an immediate association with the war cabinet, or (b) with a member of the cabinet, intimately associated with its war activities, is something that I would like to consider with my colleagues before the next parliament reassembles.

It will be noticed that this undertaking had relation to a course of procedure which had already been adopted, and with which the public were wholly familiar. It was, for example, everywhere known that in organizing the war supply board, the government had been fortunate in securing as the chairman of that organization, Mr. Wallace Campbell, president of the Ford Motor Company of Canada, who not only was called on occasion into conference with the war committee of the cabinet, but who, in addition to performing the duties of chief executive officer of the war supply board, served throughout in an advisory capacity to the minister responsible for its administration. Mr. Campbell, at the time of his appointment as chairman of the board, was selected as "the best man" available at that particular time for that particular post. The selection was made regardless altogether of party political affiliations.

How extensively, since its return to office, the government has carried out the pledge given by myself in the course of the elections, will be apparent from the appointments, since made, of men of outstanding ability and experience to executive and administrative posts immediately connected with Canada's war effort. Of every person so appointed, it may be said that directly or indirectly he has acted not less in an advisory capacity to the minister of the department concerned, than as an executive or person in a key position performing some important function in the prosecution of Canada's war effort. By advisory opinion thus obtained from exceptionally well informed and highly specialized sources, the ministry itself has been continuously guided in the shaping, development and execution of its war policies.

How effectively the administration has been strengthened by enlisting the services of the particular persons appointed will be apparent from their names, from their previous associations, and from their known qualifications for the executive and key positions now held by them in the departments concerned with war activities.

Appointments have been made by the assignment to tasks, for which they possess special qualifications, of officials from the permanent civil service, and by recruitment from financial, industrial, professional, technical and other fields of activity, of outstanding persons who, because of their training, associations and experience, were regarded as likely to be most familiar with the nature of the new administrative problems which had to be met.

Let me now briefly review the appointments made since the commencement of the war. The list does not purport to include all appointments made, but it is, I believe, sufficiently representative to make clear the government's determination to bring into the service of the state in an executive, administrative or advisory capacity regardless altogether of party political affiliations, the best available men to assist the ministry in the effective prosecution of the war effort of our country.


War Organization-Mr. Mackenzie King

Department of National Defence

I shall speak first of appointments to the Department of National Defence. They have been so arranged as to indicate opposite the name of the appointee, the position presently held by him in the department, and as well

his business or professional affiliation at the time of appointment. The list speaks for itself. It discloses at a glance the importance and variety of the several positions. In most cases, the appropriateness of the appointment will be wholly apparent.


Lt.-Col. Henri DesRosiers Lt.-Col. K. S. Maclachlan

Present position in department

Acting Deputy Minister (Militia Service).

Acting Deputy Minister (Naval Service).

Lt.-Col. Goodwin Gibson Real estate advisor.

Major Basil Campbell Assistant to real estate


Arthur MacNamara Chairman, dependents' allowance board.Col. A. A. Magee Executive assistant to Minister of National Defence.Capt. H. A. Dyde Special assistant to Minister

of National Defence.

Lt.-Col. Geo. Currie Executive assistant to Minister of National Defence.

Business or professional affiliation at time of appointment.

Vice-president, Imperial Tobacco Co. of Canada,

Ltd., Montreal.

President and general manager Fraser Companies, Ltd., Montreal, Edmundston, N.B.; President and general manager, Restigouche Co., Ltd., Campbellton, N.B.

Senior partner in firm of Gibson Bros. Real Estate Brokers, Toronto.

President, Campbell & Shepherd, Limited, Construction Engineers, Toronto.

Deputy Minister of Public Works and Labour, Manitoba government.

President. Barclay's Bank (Canada) and director of several financial institutions.

Dyde & Becker, Barristers, Edmonton.

Partner in Macdonald, Currie and Company, Chartered Accountants, Montreal.

Auxiliary Services

Early in October, 1939, a directorate of auxiliary services was set up in the Department of National Defence to coordinate and facilitate the work of the various agencies promoting the welfare of the men in the service.

Brigadier W. W. Foster, president of the Canadian Legion, was called upon to serve as director. The work of the auxiliary services has increased with the growth of our armed forces and more and more representatives of the voluntary organizations have come to work in active cooperation with service officials in the conduct of this work.

Besides the organization at headquarters in Canada and in each of the military districts an overseas organization has been established at Canadian military headquarters which includes representatives of the four principal voluntary organizations: The Canadian

Legion, Y.M.C.A., Salvation Army and Knights of Columbus. Each of these bodies also has representatives working with the first division. The government has undertaken to provide the pay and expenses of a portion of these overseas workers.

Department of National Defence for Air

It will be recalled that very shortly after the general elections a third acting deputy minister was appointed to the Department of National Defence. This appointment had relation particularly to the air forces and the development of the British commonwealth air training plan. The government was fortunate in securing for this most important post the services of Mr. James S. Duncan, vice-president and general manager of Massey Harris Limited, Toronto, one of the best known and ablest industrial executives in Canada. Mr. Duncan's appointment was made on April the 11th.

On May the 22nd, parliament authorized the establishment of a separate Ministry of National Defence for Air and, on the day following, the Hon. C. G. Power was sworn in as minister of the new department.

Since that date, the administrative staff of the Department of National Defence for Air has been further strengthened by the following appointments:

War Organization-Mr. Mackenzie King


Terence Sheard ..

J. L. Apedaile....

S. D. Armour.... J. W. G. Clark...

I. N. Smith

W. J. Macdonald

G. M. Black

H. G. Norman....

H. G. Colebrook.,

Present position in Department

Executive assistant to the deputy minister.

Inspector of accounts, civil flying schools.

Contracts officer, civil flying schools.

Director of public relations.

Assistant director of public relations.

Head of statistical and records branch.

Assistant to head of statistical and records branch.

Special assistant to deputy minister.

Executive assistant in charge of engineering and supply.

Business, professional or other affiliation at time of -appointment.

Assistant General Manager of the National Trust Company, Toronto.

Partner of Cole, Apedaile & Company, Chartered Accountants, Montreal.

Banker, Georgeville, Que.

Director of Cockfield, Brown Company, Advertising Agency, Toronto.

Assistant General Manager and Secretary-Treasurer, Ottawa Journal.

Senior Partner Millar, MacDonald & Co., Chartered Accountants, Winnipeg.

*Comptroller. Western Breweries Co., Winnipeg.

Partner of Price, Waterhouse & Co., Chartered Accountants, Montreal.

Director and general merchandising manager of Robert Simpson Co., Toronto.

I shall refer a little later on to the genesis and evolution of the Department of Munitions and Supply from a purchasing board, associated before the war, with the Department of Finance and later, at the commencement of the war, as a war supply board under-the supervision of the Minister of Transport,-to the present full-fledged Department of-Munitions and Supply. For the moment, it is sufficient for me to recall that the department itself was duly established on April the 9th, at which date the existing organization of the war supply board was absorbed into the new Department of Munitions and Supply. In no branch of the public service has need for rapid expansion and the enlistment of services of able executives and persons possessed of special knowledge been greater than in that concerned with the production of munitions and other war supplies. The services of a large proportion of those at present in these positions have been enlisted since the new department took over the work of the war supply-board. i

The administrative staff of the Department of Munitions and Supply is, like other departments, presided over by a deputy minister. There is, as well, an executive committee of seven members. This committee might be compared to a small cabinet concerned exclusively with war supply. It meets from day to day; considers and decides upon matters of policy with respect to production of munitions and other war supplies as well as upon the best methods of carrying out policies already determined.

The department is divided into a purchasing branch, a construction branch and a number of production branches for aircraft, shipbuilding, munitions and gauges and chemicals and explosives.

For the mobilization of supplies of raw. materials controllers of metals, timber, oil and steel have been appointed. These controllers act not only individually but collectively constitute a war industries control board within the department.

On the administrative side the deputy minister is assisted by the comptroller and secretary and the officials of his branch.

A branch of the department is also being-organized for economic research and planning-required in order to maintain a constant and uninterrupted development of ever-increasing quantities of the materials of war.

The department has a labour liaison officer and liaison officers in New York and London,

Beyond the department itself, several nonprofit making private organizations, fully owned by the government, have been set up to carry on special phases of the work. Speaking in the house on June the 14th, the Minister of Munitions and Supply explained the purpose of these companies as follows:

It has been found utterly impossible to assemble in Ottawa a sufficient staff to handle all the multiplicity of undertakings that the department has in hand at the present time. The act provides that certain government owned and controlled companies shall be established


War Organization-Mr. Mackenzie King

and headed by business men chosen by the government who will be able to carry on certain operations as companies rather than as part of a departmental staff.

Each of these companies is being or will be administered by a board of directors, chosen from outstanding business men and industrialists.

At the present time within the Department of Munitions and Supply there are, besides those who are connected with these government owned companies, some 65 persons serving in key positions or as departmental heads, of which number ten are outstanding permanent civil servants.

A list of departmental heads and key men in the Department of Munitions and Supply was placed on Hansard by the minister, on June the 20th. The names of the persons whose services have been classified in relation to their present position and prewar occupation are as follows:

Department of Munitions and Supply

Present position in Business or professional affilia-

Name department tions at time of appointmentG. K. Sheils Deputy Minister. Asst. General Manager, General

Steel Wares Ltd., Toronto.

W. C. Woodward Chairman, Executive Comm. President, Woodward Stores

Ltd., Vancouver, B.C.

R. P. Bell Member, Exec. C. Director, Pickfords Black, Limited, Halifax and other Companies.Henry Borden, K.C Member, Exec. C. Barrister, Toronto.W. A. Harrison Member, Exec. C. Managing Director, Estabrooks

Ltd., Saint John, N.B.

R. A. C. Henry Member, Exec. C. General Manager, Beauharnois

Power Corp., Montreal.

G. W. Scott Member, Exec. C. Chartered Accountant, Montreal.E. P. Taylor Member, Exec. C. President, Canadian Breweries

Ltd., Honey Dew, Ltd.: Orange Crush Ltd., Toronto.

A. J. Martin Acting Secretary. President, General Skycraft

Ltd., Montreal.

L. R. Thomson Secretary and Comptroller. Consulting Engineer, Montreal.A. S. Tindale Ass't Sec'y. and Comptroller. Chartered Accountant, Toronto.J. P. Pettigrew Exec. Assistant to Deputy General Manager, WindsorMinister. Fisher Ltd., Montreal.W. D. Low Exec. Assistant to Deputy Purchasing Agent, C.N.R.,Minister. Montreal.J. deN. Kennedy Legal Department. Barrister, Solicitor, Toronto.J. B. Carswell New York Liaison Officer. President, Burlington Steel Co.,


C. A. Banks London Liaison Officer. Managing Director, Bulolo Gold

Dredging Ltd.

H. B. Chase Labour Liaison. Canadian Vice-President Brotherhood of Locomotive Engineers.W. F. Drysdale Director of Production, Vice-President, Montreal Loco-Munitions and Gauges. motive Works.W. S. Lecky Assistant-Munitions. Manager, Holman's Machines,


Dr. C. A. Robb Assistant-Gauges. Professor Mechanical Engineering, University of Alberta.J. R. Donald Director of Production, J. R. Donald Co., Montreal.

Chemicals and Explosives.

A. F. McCall Assistant. Director, Drummond McCall &

Co. Ltd., Montreal.

Dr. J. H. Ross Assistant. Director, Forest Products

Laboratory, Montreal.

W. J. Sanderson Director of Production, Air- President, Fleet Aircraft Ltd.,

craft. Fort Erie, Ont.

W. S. Goodeve Asst.-Executive. Motor and Coach Co. Ltd.J. T. Asquith Asst.-England. Export Sales Manager, British

Machine Tool Co.

J. C. Ruse Asst.-Raw Materials. Contractor, Diamond Drilling

and Exploration.

War Organization-Mr. Mackenzie King

Department of Munitions and Supply-Concluded

Present position in Business or professional affilia-

Name department tions at time of appointmentA. K. Tylee, O.B.E Asst.-Building. Ex-Air Commodore, R.C.A.F.D. Stairs Director of Construction, Chief Engineer, Montreal Con-Defence projects. struction Co. Ltd.E. P. Murphy Assistant. Construction Engineer, Department of Transport.L. C. Jacobs Assistant. Engineer, Montreal Power Corporation of Canada.D. B. Carswell Director of Shipbuilding. Marine Superintendent, Department of Transport.G. Ogilvie Director of Plant Survey and Department of National Defence.


A. T. J. Watts Assistant. Department of National Defence.J. P. D. Malkin Director of Purchases. Director of W. H. Malkin &

Co., B.C. Packers and other companies, Vancouver, B.C.

J. Eaton General Purchasing Agent. Asst, to General Purchasing

Agent, C.P.R.

L. L. Price Asst. General Purchasing Purchasing Agent, C.N.R.,

Agent. Montreal.

D. P. Buckley Aircraft Section. Department of National Defence.T. A. McCormick Barrack Stores Section. Purchasing Agent, Canada

Creosoting Co.

W. J. Atkinson Fuel, Paints Section. Purchasing Agent, C.N.R.,


C. P. Morrison Machinery, Tools. Radio Department, C.N.R.E. S. Hoare Naval Stores. Department of National Defence.G. A. Briggs Clothing. Department of National Defence.W. E. Wilford Food. Commissary Purchasing Agent,

C.N.R., Toronto.

C. B. Doheney Mechanical Transport. Purchasing Agent, C.N.R.,


C. E. W. Morehead Building Supplies. Purchasing Agent, C.N.R.A. P. Labelle Medical. Wholesale Drug Supplies.F. E. Wood Cost Investigation. National Steel Car Corp., Cost


W. C. McEachern Personnel. Post Office Department.B. S. Liberty Transport Controller. C.N.R.W. Lauchlan Treasury Liaison Officer. Chief Treasury Office, Department of Finance.R. Thomson Publicity. Public Relations Counsel,


H. G. Caldwell Statistics. Professor Queen's University.D. G. Mackenzie Assistant R.A.C. Henry. Consultant Economist.W. J. Neville Files, Mail and Messenger Canadian Pacific Railway,Service. Montreal.J. A. Marsh Contract Investigator. M.P. and General Purchasing

Agent, Canadian Porcelain Co., Hamilton.

A. R. Gilchrist Overseas Accounting. North End Motors Ltd.,

. Office Manager.

A. Davis Technical Consultant, leather. President, Davis Leather Co.,


F. C. Mechin Petroleum. General Manager, Imperial Oil

Refineries Ltd., Montreal.

C. W. Sherman Steel. President, Dominion Foundries

Ltd., Hamilton.

H. D. Scully Controller-Steel. Commissioner of Customs.G. C. Bateman Controller-Metals. President, Canadian Institute

of Mining and Metallurgical Engineering Institute, Toronto.

H. R. McMillan Controller-Timber. President, H. R. McMillan

Export Co., Vancouver.

Geo. R. Cottrelle Controller-Oil. Director, Canadian Bank of


S. W. Fairweather Economic Adviser. Director Bureau of Economics.


War Organization-Mr. Mackenzie King

The government owned and controlled non-profit making private organizations set up to carry on special phases of the work of production of munitions and other war supplies are the following:

Operating Companies of the Department of Munitions and Supply The Citadel Merchandising Company Limited:

This company is concerned with ensuring the supply of machine tools and other equipment essential to war industry.

The officers are:

President Thomas Arnold Chairman, Manitoba Steel

Foundries Ltd.

Vice-President L. J. Belnap President, Consolidated Paper

Corp. Ltd.

Director J. D. Johnson President, Canada Cement Co.


Director C. E. Gravel Director, Bell Telephone Co. of


Director F. K. Morrow Director, Ogilvie Flour Mills

Co. Ltd.

The Federal Aircraft Limited:

This company has been organized to coordinate the output of all parts and to expedite the production of the Anson Training Aircraft.

The officers are:

President R. P. Bell Director, Pickfords Black, Ltd.,

Halifax and other companies.

Gen, Manager R. J. Moffett Chief Aeronautical Engineer of

Canadian Vickers.

Treasurer F. L. Jeckel Montreal Manager of Hardy

and Badden, Chartered Accountants.

Director Sidney Dawes President of the Atlas Construction Co., Montreal.Director Blair Gordon President, Dominion Textile


Director Russell Smith Canadian Industries Ltd.Director Allan Aitken Price Bros. & Co. Director of

National Life Assurance Co. and other companies.

Another company has been organized of which, as yet, no public announcement has been made, which will be known as The Allied Supplies Limited. This company will be concerned with administration of the munitions and explosives programme undertaken on behalf of the British government and of any joint British-Canadian developments which may be assigned to do it.

The officers will be:

Chairman Hon. C. A. Dunning An ex-Minister of Finance in

the federal government.

President Harold Crabtree Howard Smith Paper Co., Montreal (President Canadian Manufacturers' Association).Directors: W. D. Black President, Otis Fensom Elevator Co., Hamilton (an expresident of Canadian Manufacturers' Association).Beaudry Leman President and Managing Director of Banque Canadienne Nationale (Past President of Canadian Bankers' Association) .J. Y. Murdock President of Noranda Mines,

Ltd., and other companies.

D. R. Turnbull Managing Director of Acadia

Sugar Refinery Co. Ltd., Halifax.

R. H. McMaster President of Steel Co. of Canada, Montreal.

E. A. Wilson President and General Manager

of Ingersoll Machine and Tool Co. Ltd., and Vice-President and Gen. Manager Morrow Screw & Nail Co., Ingersoll.

War Organization-Mr. Mackenzie King

It will be observed that the lists of persons I have quoted contain the names of many whose names, from one source or another, have been mentioned as those of individuals whose presence in the cabinet might be expected to add to the effectiveness of Canada's war effort. I submit that in the positions in which the services of the persons cited have been enlisted their opportunity to be of service to the state and effectively to aid the ministry (all circumstances considered) is relatively greater than it might be expected to be were they members of the ministry itself.

Department of Finance The appointments I have mentioned thus far have been in the departments immediately concerned with military defence. In the administration of the departments and agen-t cies concerned with matters of economic defence and internal security, the government has likewise enlisted the services of equally representative groups of outstanding and specially qualified persons.

For instance: In the Department of Finance, the executive staff has been strengthened by the appointment of Professor W. A. Mackintosh, head of the Department of Political and Economic Science of Queen's university, as special assistant to the minister. But much more than in the work of the department itself, the services and counsel of business and professional men have been sought in connection with the organization and direction of campaigns for nationally offered war loans and the sale of war savings certificates, and in the vital and highly specialized work of the foreign exchange control board.

War Loan and War Savings Campaigns To direct the campaign for the first publicly offered war loan, a national war loan commitn tee was set up under the chairmanship of the Minister of Finance. Serving on it were five former ministers of finance:

Sir Thomas White,

Sir Henry Drayton,

Honourable C. A. Dunning,

Right Honourable R. B. Bennett, and Honourable E. N. Rhodes.

In addition were the provincial treasurers of all nine provinces. In order to give the committee as broadly representative a character as possible some 225 prominent people in all the provinces of Canada were added to the membership.

To direct the more purely technical aspect of the campaign, a national subscription committee of men connected with the securities business was set up under the chairmanship of Honourable C. A. Dunning.

In the campaign for the sale of war savings certificates the government has similarly availed itself of the services of prominent business and professional men.

A national war savings committee was set up of which Mr. W. H. Somerville, general manager of the Mutual Life Assurance Company of Canada, and Mr. de Gaspe Beaubien, a consulting engineer of Montreal, and a director of several industrial companies, were appointed as joint chairmen. Provincial chairmen were selected as follows:

British Columbia-Christopher Spencer, Vancouver.

Alberta-John Burns, Calgary.

Saskatchewan-W. G. Yule, Regina.

Manitoba-E. J. Tarr, K.C., Winnipeg.

Ontario-R. V. LeSueur, Toronto.

Quebec-Napoleon Charest. Montreal. _

New Brunswick-George E. Barbour, Saint John.

Nova Scotia-W. K. McKean, Halifax.

Prince Edward Island-Edmund T. Higgs, Charlottetown.

Foreign Exchange Control Board

Early in September, a foreign exchange control board was set up consisting of senior members of the public service and officers of the Bank of Canada. The purpose of the board has been that of setting up a complete system of exchange control, thus to conserve our financial resources and supplies of foreign exchange, and to prevent the dissipation of our capital into speculative or other unessential uses abroad. Working in close association with the Bank of Canada, the board has achieved its purposes with complete efficiency. Its task has been growing ever greater and more complex. To assist the nucleus of officials from the Bank of Canada, the board has secured the services of an ever increasing number of highly trained men from the fields of business and finance. I may make brief mention of some of these.

In addition to 20 employees of the Bank of Canada whose services have been lent to the board on a full time basis, the chartered banks have provided the services of 20 officials including Mr. F. R. MacLean of the Dominion bank, Mr. G. Catherwood of the Royal bank, and Mr. E.. C. Winrow of the bank of Montreal. Some 30 chartered accountants have been lent to the board by their employers on a full time basis, and an additional 15 to do investigational part time work in the commercial section in the summer months.

Five experienced securities dealers assist in the work of the securities section. Apart from the head of the general section, eight other lawyers are engaged in its work.


War Organization-Mr. Mackenzie King

The following is a representative list of the executives who have come to assist in the direction of the work of the board:

Name Present position on board Former positionC. K. Highmoor Chief of foreign exchange Assistant superintendent, Forseetion. eign dept, of Canadian Bank

of Commerce.

A. McD. McBain Public relations officer. Manager of Foreign Relations

Dept., Bank of Nova Scotia.

M. W. Mackenzie Chief of commercial section. Partner in McDonald, Currie,

etc., Chartered Accountants,


D. R. A. Walker Chief of securities section. Associated with Wood, Gundy

and Co. Ltd., Investment

Dealers, Toronto.

W. D. Matthews Chief of general section. Barrister, with Wills, Bickle

and Gayley, Toronto.

A. M. Campbell Advisor on matters affecting Associate Actuary, Sun Life

insurance. Assurance Co.

Douglas Dewar Head of Vancouver office. A Canadian who was formerly

senior partner in Peat, Marwick and Mitcbel, Chartered Accountants, New York.

Andre Gerv-ais Chief of commercial section, Chartered Accountant, with

Montreal branch. Roland Levesque et Cie.,


War-time Prices and Trade Board

Upon the outbreak of war, immediate concern was shown by the government to prevent the disastrous rise in prices which so seriously dislocated the Canadian economy in the last war. On September 3rd, the government established the war-time prices and trade board, and invested it with extensive powers

to prevent hoarding, profiteering and undue rise in prices of necessities. The board itself is composed entirely of outstanding permanent officials under the chairmanship of Mr. Hector McKinnon, who is also chairman of the tariff board.

The complete list of the officials and administrators appointed from outside the public service is as follows:

K. W. Taylor .. Secretary. Professor of economics, Mc-Master University.Hubert Kemp .. Economic adviser. Professor of economics, University of Toronto.J. M. MacDonald .. Economic adviser. Head of Department of Commerce, University of Manitoba.H. D. Anger .. Solicitor of board. Barrister, of firm Elliott, Hume, McKague, and Anger, Toronto.David C. Dick .. Wool administrator. Manufacturer: President, Cobourg Dying Co. Ltd., Cobourg, Ontario.Harry Brown [DOT]. Technical adviser to Administrator. Wool Retired textile expert, formerly Superintendent of the Rosamond Woollen Mills, Almonte, Out.W. P. Walker .. Economic adviser to Administrator. Wool Comptroller of York Knitting Co., Toronto.S. R. Nohle .. Sugar Administrator. Assistant General Manager, Royal Bank of Canada, Montreal, Que.H. J. Hobbins .. Technical adviser to Administrator. Sugar Sugar broker.Maurice Samson .. Hides and Leather . istrator. Admin- Chartered accountant, of the firm of Samson, Knight & Company, 70 St. Peter St., Quebec, P.Q.J. McGregor Stewart, K.C... .. Coal Administrator. Barrister, of the firm of Stewart, Smith, McICeen & Rogers, Halifax, N.S.

War Organization-Mr. Mackenzie King

Department of Agriculture An agricultural supplies board has been set up within the Department of Agriculture to help meet the extraordinary problems for our agricultural economy created by the war.

Other wartime bodies within the department are the bacon board, which was set up to implement and direct Canadian fulfilment of the important bacon agreement with the United Kingdom, and a dairy products board which was created to supervise the whole question of the production and marketing of dairy products. There is also an advisory committee to the bacon board but this, unlike the two just mentioned, possesses no executive powers. _

To assist these boards in the conduct of their duties, the government has enlisted the services

of specially qualified persons from outside the permanent service. The Department of Agri-i culture has obtained the full-time services of Professor S. R. N. Hodgins of Macdonald College, Montreal, as secretary of the agricultural supplies board, of Mr. D. J. Perry, transportation officer of Canada Packers, Montreal, as transportation specialist for the bacon board, of Mr. C. J. Servais, packing house accountant of Toronto as accountant of the bacon board and of Mr. W. E. Bosnell, the plant superintendent of Canada Packers, Toronto, as technical adviser.

The part-time services of the following persons have also been enlisted by the department :


Hon. J. G. Taggart S. W. Todd

L. C. McOuat

Adrien Morin ....

John Freeman_____

J. F. Desmarais...

Present position in department

Chairman, bacon board... Member, bacon board....

Member, bacon board Member, bacon board

Member, dairy board

Member, dairy board

Former position

Minister of Agriculture, Saskatchewan.

Industrial and Development Council, Canadian Meat Packers.

General agriculture agent, C.P.R.

Chief, Live Stock Branch, Department of Agriculture, Quebec.

President of Lovell & Christmas (Canada) Ltd., exporters of dairy products, Montreal.

President of Co-operatives fe-derees, Quebec, Montreal.

Department of the Secretary of State

Several of the war-time boards and agencies under the department of the Secretary of State are administered by a well known person from outside the government service. Dr. H. M. Tory, retired former president of the National Research Council has been serving as director of the technical section of the voluntary service registration bureau. The services of Brigadier General E. deB. Panet, chief of the department of investigation of the Canadian Pacific Railway have been secured as director of internment operations.

To organize the public information office the government first secured the services of Mr. Walter S. Thompson, director of public relations for the Canadian National Railways. Upon Mr. Thompson's retirement, because of the impairment of his health, he was succeeded by Mr. G. H. Lash as director, and Mr. Claude Melancon, as associate director, both of whom had been associated with Mr. Thompson in the Canadian National Railways.

Mr. W. Gordon Gunn, barrister, Winnipeg, is serving as the administrator of the War Charities Act. Mr. T. W. Laidlaw, the dean of Manitoba Law School, and Mr. Y. C. MacDonald, dean of the Dalhousie Law School, are both giving their services during their summer absence from their schools in connection with special work under the custodian of enemy property.

Departments of Trade and Commerce and Transport

In the Department of Trade and Commerce Mr. A. W. L. MacCallum has been appointed director of shipping, serving as executive officer of the Canadian shipping board. Mr. MacCallum formerly was manager of the Shipping Federation of Canada, Inc., of Montreal.

A similar outstanding appointment has been made in the Department of Transport of Mr,

T. C. Lockwood as transport controller. The transport controller has supervision over the whole question of priority of movement with


War Organization-Mr. Mackenzie King

regard to war needs. Mr. Lockwood was formerly general freight traffic manager of the Cunard White Star Line, Montreal.

I have referred thus far to enlisting in the government service, in executive and adminis-j trative positions, the best available persons from the business and professional world. I come now to the suggested means of increas-i ing the effectiveness! of Canada's war effort by enlisting the services of the best available persons in an advisory capacity where not possible to have their services enlisted either in whole or in part in executive or administra-* five posts.

In considering specific problems the government has not hesitated to seek the advice and cooperation of existing organizations and bodies known to be conversant with phases of the work concerned. In addition, a number of advisory boards and committees have been specially organized to aid ministers and war agencies by advice based upon practical experience. In each of these advisory bodies am effort has been made to secure as represent tative a group as possible of duly qualified persons. I may mention, briefly, a few of these-some specially created to meet the war situation, others organized bodies already established.

As an example of the advice and cooperation of existing Canadian bodies sought in connection with the solution of specific problems arising out of war-time administration, I might mention the conferences between officials of the dominion government, representatives of the various provincial governments, and the officers of qualified voluntary organizations, with respect to the questions of the immigration of refugees and the movement of evacuated children to Canada from the United Kingdom and elsewhere. Special mention should be made in this connection of

the helpful cooperation of the officers of the Canadian Welfare Committee and of the Canadian National Committee on Refugees.

In the work done so far by officials of the Department of Pensions and National Health upon air raid precautions, the collaboration of the provincial authorities in the coastal provinces has been obtained and, as well, the full cooperation and advice of the St. John Ambulance Brigade and Association. The department, in its health activities related to the war effort, has also secured the cooperation of all public health forces of the dominion, acting through the Dominion Council on Health. This council is made up of the chief health officers of all the provinces.

Department of Labour

The government has recognized from the outset the importance of meriting and obtaining the whole-hearted cooperation of labour in the development of Canada's war effort. It has recently given concrete expression to this recognition by the declaration of certain principles for the regulation of labour conditions now embodied in an order in council.

Recently there has been created a national labour supply council. The purpose of this council is to bring to the minister of the department advice from qualified representatives of labour and of industry upon all matters touching the supply of labour for war industries.

The chairman of the National Labour Supply Council is Mr. A. J. Hills, chief of personnel of the Canadian National Railways. The secretary is Mr. Humphrey Mitchell, a former member of this House of Commons and for some time past a permanent official of the Department of Labour. The council itself is composed of five representatives of labour and five of industrial employers, with an alternate for each.

The membership is as follows:

Representatives of labour:


E. J. Tallon, Ottawa, secretary-treasurer of the Trades and Labour Congress of Canada.

J. W. Bruce, General organizer for Canada for the United Association of Journeymen, Plumbers, Gas Fitters and Steamfitters Helpers.

James Somerville, Canadian general vicepresident International Association of Machinists.

A. R. Mosher, Ottawa, president of the AllCanadian Congress of Labour.

Alfred Charpentier, Montreal, president of the Confederation of Catholic Workers of Canada.


A. D'Aoust, Canadian vice-president of the International Brotherhood of Paper Makers.

Fred Molineaux, Canadian general organizer, International Brotherhood of Painters, Decorators and Paper Hangers of America.

Tom Moore, Ottawa, president of the Trades and Labour Congress of Canada.

C. R. Millard, director of the Steel Workers Organizing Committee.

Maurice Doran, Montreal, vice-president of the Confederation.

IMr, Mackenzie King.]

War Organization-Mr. Mackenzie King

Representatives of employers:

Mining industry

Representative Alternate

J. H. Stovel, incoming president Ontario N. A. Bryce, past president, Ontario Mining Mining Association and general manager, Association, president, Macassa Mines, Kirk-Dome Mines Ltd., South Porcupine. land Lake, Ontario.

Canadian Chamber of Commerce

Allan M. Mitchell, Robert Mitchell Co. Ltd., D. P. Cruickshank, president, Steel Equipment Montreal, Quebec. Company, Ottawa, Ontario.

Canadian Manufacturers' Association

W. C. Coulter, past president, C.M.A.; presi- W. H. McIntyre, vice-president, Ottawa Car dent Coulter Copper & Brass Co., Toronto, & Aircraft Co., Ottawa, Ont.


C. N. Moisan, president, Standard Paper Box Louis Armstrong, Consolidated Paper Corpora-Co., Montreal, Quebec. tion, Montreal, Quebec.

Canadian Construction Association

J. M. Pigott, Pigott Construction Co., Hamil- Albert Descliamps, general contractor, Mont-ton, Ontario. real, Quebec.

Associated with the work of the Department of Transport are two advisory boards set up to recommend as to compensation for owners of vessels which have been requisitioned; one board for the Pacific coast and one for the Great Lakes, St. Lawrence River and Atlantic coast.

Chairman for the Pacific coast region is Honourable Justice Dennis Murphy of the Supreme Court of British Columbia.

Chairman for the Great Lakes, St. Lawrence River and Atlantic coast region is Honourable Justice M. B. Archibald of the Supreme Court of Nova Scotia.

Department of Agriculture

In the Department of Agriculture an advisory committee to the bacon board has been set up to bring to the operations of the board the benefit of the advice of a group of men representative of producers and of the packing industry. This advisory committee is without a chairman of its own and holds its meetings in conjunction with those of the bacon board itself.

Its members are:

W. J. Reid-Formerly associated with the P.E.I. Department of Agriculture.

H. Wilson-Well-known hog producer in western Ontario.

John Harrold-Hog producer of Alberta.

Joseph Bisson-Connected with the cooperative marketing of livestock in the province of Quebec.

K. N. M. Morrison-General manager of First Co-operative Packers of Ontario, Limited.

F. H. Downing-Manager of Canadian Livestock Co-operative (Western) Limited.

John Burns-President of Burns Packing Company of Calgary.

J. H. Tapley-General manager of Swift & Company, Toronto.

Department of Fisheries

Two committees have been formed to be associated with the Department of Fisheries in an advisory capacity.

A war-time fisheries advisory board has been appointed to consider the whole question of the marketing of Canadian fish. Its personnel has been chosen to give representation to men with practical experience in both our Atlantic and Pacific fisheries.

Chairman: J. J. Cowie-Official of the department. ,

A. H. Brittain-Past president of Canadian Fisheries Association, Montreal.

Louis T. Blais-President, Louis T. Blais, Ltd., and president, St. Lawrence Sea Products Company, Quebec. _

H. G. Connor-President, Maritime National Fish Limited. Halifax, N.S.

W. H. Smith-President, Lunenburg Sea Products, Lunenburg, N.S.

T. R. Clouston-General Sea Foods Ltd., Halifax.

A. Neil McLean-President, Connors Bros. Limited, Black's Harbor, N.B.

Col. J. W. Nicholls-Canadian Fish and Cold Storage Company, Prince Rupert, B.C.

A. L. Hager-President, Canadian Fishing Company, Limited, Vancouver.

Major Hugh A. Green-Coastal Fisheries, Ltd., Montreal, and director of fish supplies for Canadian army during the first Great War.

W. George Akins-Publicity agent, Toronto.

F. W. Wallace-Editor of Canadian Fisherman, and supervisor of fish division of the Canada Food Board during the first Great War.

Advisory Committee to the Lobster Controller

The dissolution of markets has necessitated the appointment of a controller who will have supervision over the entire field of production and marketing of canned lobster. In the initial stages, Dr. D. B. Finn, deputy minister of the Department of Fisheries, is serving as


War Organization-Mr. Mackenzie King

controller; but to assist him an advisory committee of men immediately concerned with this problem has been appointed. The committee, chosen to give representation both to the fishermen and to the lobster canning industry, consists of Messrs.:

G. S. Lee of Halifax.

Bert Mclnerney of Halifax.

W. H. Tidmarch of Charlottetown.

Emile Paturel of Shediac.

War-time Cooperation with the Provinces

I should not like to conclude this portion of the review of the services given in an advisory and practical manner by existing organizations, associations and individuals without making special mention of what might be spoken of as war-time cooperation extended on the part of the provinces of Canada.

I have already indicated wherein the federal government received the closest cooperation from the provincial governments in the first national war loan campaign. As mentioned, the provincial treasurers of all the provinces served on the national war loan committee.

Also, as just mentioned, the closest cooperation has been received from the welfare departments of the provincial governments in working out arrangements for the reception in Canada of refugees and evacuated children, and as mentioned, the Department of Pensions and National Health is cooperating with the provinces in the provision of air raid precautions.

The Department of Munitions and Supply is receiving valuable assistance and cooperation from provincial departments of natural resources, mines, lands and forests, etc., in the task of mobilizing our resources of raw materials to meet war-time needs.

As in peace time, close cooperation is maintained between the federal departments and the provincial authorities in the departments of agriculture and fisheries.

In the field of health and welfare, war-time conditions have made more essential than ever the closest cooperation between federal and provincial authorities.

In peace time, the primary responsibility for public order and the administration of justice rests with the provinces. It has been recognized, however, that in time of war, a share of this responsibility must necessarily be assumed by the federal government. This has not relieved the provinces of their constitutional function but it has served to emphasize the need for the closest cooperation between the provincial police and law enforcement agencies, on the one hand, and the Royal Canadian Mounted Police and the Department of Justice on the other.

In these and other ways, the federal administration has been materially aided by the governments of the several provinces in the successful prosecution of Canada's war effort.

I come now to means of increasing the efficiency of the cabinet, other than those of enlisting the services of the best available persons in executive and administrative positions or in an advisory relationship to individual ministers. In other words, I come to the cabinet itself, and here I wish to speak first of the plan of war organization within the cabinet and later of cabinet responsibility and personnel.

Canada's war effort has been, from the first, and will continue to be organized and directed by the cabinet. From the outset, the work of the cabinet has been so organized as to permit of immediate and effective direction of the various activities, and at the same time to ensure their complete coordination. For the most effective conduct of that effort, the cabinet itself has been organized into appropriate committees, each charged with responsibilities in specific spheres of activity.



Cabinet Committees and Related Agencies Prior to the war, there had been established a committee of the cabinet especially appointed to consider matters of defence. When the war broke out, and it became necessary to view the problems of war in relation one to the other, and as a whole, in order the better to coordinate the work of the government, to prevent duplication of effort, and to promote efficiency, special committees of the cabinet were formed in relation to the several problems of major concern. As a supervisory body in a position to view the war effort as a whole, an emergency council was appointed with an immediate relationship to the work of the several governmental committees. At the outset, this emergency council was composed of senior members of the cabinet. Amongst other duties, it took over those of the defence committee established prior to the war. As occasion has since required, its personnel has been altered or increased to include the ministers whose departments are especially concerned with the war effort. In an early reorganization, its name was changed. It has since been designated and is now known as the war committee of the cabinet. The ministers at present composing the war committee are the following: The Prime Minister, the Leader of the Government in the Senate, the Minister of



Cabinet Committees Related Agencies* War Organization-Mr. Mackenzie King Mines and Resources, the Minister of Justice, the Minister of Finance, the Minister of National Defence, the Minister of National Defence for Air, the Minister of Munitions and Supply. The war committee of the cabinet gives continuous consideration to, and recommends decisions by the cabinet upon, major questions of war policy and defence. Related to the war committee are special committees especially charged with the consideration and supervision of specific problems. They are composed of the ministers primarily concerned with related phases of war effort. The committee also assist in the coordination of activities in which more than one department is involved. Of these special committees, six are concerned with problems related to Economic Defence: War Finance and Supply, Food Production and Marketing, Wheat, Fuel and Power, Shipping and Transportation, Price Control and Labour. In addition there are special committees which deal also with matters of: Internal security ; Legislation; Public information; Demobilization and reestablishment. Related directly to the work of the cabinet committees are the activities of the boards and agencies to which I have already referred. Certain statutory bodies already existing prior to the war, and as a result of the war charged with special responsibility, have also been related directly to the functions of the special cabinet committees which I have just described. In order to further the effective coordination of the economic and financial policy in war time, to facilitate the work of the cabinet committees in the consideration of specific problems, and to assist in avoiding duplication of effort by departments and agencies, an advisory committee on economic policy, composed of members of the public service, has been established. This committee acts in an advisory capacity to the cabinet itself. I have in my hand a diagram which discloses at a glance the relationship to the cabinet of the war time and statutory bodies and boards to which I have referred. It also designates, by the departments over which they preside, the ministerial personnel of the several committees. With the permission of the house. I will ask that the diagram be inserted in Hansard. May I at the same time suggest that it may possibly suit the convenience of hon. members who may wish to glance at this review if Hansard were permitted to print the headings of the various subdivisions of the review itself, f There is, thus, at the present time, an extensive and complete organization as between the different departments of the government whereby the duties and burdens of ministers are widely distributed and shared. Also, through the war committee of the cabinet, the most immediate and special attention is given to the general problems of the war. ' I have shown how, under the war organization of the cabinet, the burdens and duties of individual ministers have been lightened by the sharing of duties between ministers themselves and by the consideration and coordination of war activities by inter-related committees representative of different phases of war effort. It has been urged, as already mentioned, that the efficiency of the government might further be enhanced by the work of the cabinet being so arranged, and responsibilities of ministers so divided, as to free as largely as possible from other duties and responsibilities, the ministers of the crown who are concerned with those departments of government which have primarily to do with war activities, in order that their time and attention may be given as exclusively as possible to the consideration and effective execution of war policies. As a corollary, it has also been urged that matters pertaining to war policy and the direction of the war effort should, as largely as possible, be entrusted to a war committee of the cabinet, the members of which would be free to give most, if not the whole of their time, to matters pertaining to the war, leaving to other members of the government, the administration of the departments concerned with matters of state which, in time of peace, are of great importance, but which, in time of war, are relatively less important. From what I have already said with respect to the war committee of the cabinet, it will be seen that it has been precisely along these lines that the government has been proceeding. The need for the expansion of administrative personnel was more urgent at the outbreak of war than the need for the expansion of the cabinet. The need, however, of creating new ministries to meet wartime demands and of assigning to their administration, ministers whose time could be exclusively devoted to the supervision and encouragement of their affairs has become only too obvious. Existing ministries have accordingly been enlarged. New ministries have been established, and yet further ministries concerned exclusively with wartime activities are about to be created. To offset this expansion of wartime services, the activities of peacetime services have been materially curtailed. Their administration has been placed as completely as possible under f See diagram following page 1397. 1398 COMMONS War Organization-Mr. Mackenzie King members of the government other than those primarily concerned with war activities. Where circumstances warrant it, a single minister has been given the responsibility of administering the affairs of more than one department. Department of National Defence The natural place of beginning the expansion of war services was with the Department of National Defence. The Department of National Defence was the nucleus of the war administration. Until July, 1939, the department was entrusted not only with the organization of the defence forces but also with the problem of supply. The progressive increases in our defence expenditures from 1936 made it necessary to develop additional machinery for coping with the problem of supply. As a result the defence purchasing board was set up on July 14, 1939. When war came, we had already provided the beginnings of an organization to meet the supply problem. The actual outbreak made necessary immediate administrative expansion in four directions. The fighting forces had to be increased in numbers, they had to be provided with vast quantities of war supplies and the necessary funds had to be obtained to finance this expansion. Finally provision had to be made for internal security and economic stability on the home front. The mobilization and recruitment of the fighting forces threw added burdens on the administrative staff of the Department of National Defence. Two acting deputy ministers, both veterans, and both prominent industrialists with wide administrative experience were immediately added to the staff. One was entrusted with the militia services, the other with the naval and air services. Department of Munitions and Supply At the outbreak of war, the work of the defence purchasing board was transferred to a war supply board. At the special session of parliament, the government took steps to provide for a Department of Munitions and Supply under a separate minister of the crown. That department has since come into being and grown to vast proportions. It has been under a minister who, until to-day, had also been administering the affairs of the Department of Transport. The maintenance for a time of the association between the two departments made possible a needed rearrangement of some of their activities and the effecting of economies which would not otherwise have been possible. The former Minister of Transport who also for some time past has been the Minister {Mr. Mackenzie King.] of Munitions and Supply will hereafter give his entire time to the work of the latter department. There has been transferred to the Department of Munitions and Supply, as being closely related to war activities, the branches of the Department of Transport concerned with the Trans-Canada Airways, civil aviation, and national radio broadcasting. The new Department of Munitions and Supply is the first new ministry which has been created since the outbreak of war. Department of National Defence for Air. The second new ministry is well known. It is the Department of National Defence for Air. Before the separate department was created, the Department of National Defence had been strengthened by the addition of an Acting Deputy Minister for Air to relieve the burden of the two Acting Deputy Ministers already mentioned. The magnitude and importance of the con>-monwealth air training plan is well known. The development of this plan, in addition to the developments which were immediately related to our own air forces, made necessary the creation of a separate portfolio for Air. The wisdom of the course followed in creating the new Ministry of National Defence for Air has, I think, been fully demonstrated. Department of National Defence for Naval Services With the changed conditions in Europe, the increased importance of the navy, not only in the defence of our own coasts and harbours, but in cooperation with the naval forces of the United Kingdom and other parts of the British empire has become generally appreciated. As is now pretty generally known, the port of Halifax has, since the beginning of war, become a naval base second only in importance to the most important bases in the British Isles. In these circumstances, the government has deemed it advisable to add to the existing defence departments that of a separate Department of National Defence for Naval Services. A bill to establish the new ministry will be introduced immediately. What therefore, was originally a single Department of National Defence will hereafter be three departments, each presided over by a separate minister of the crown, all however, cooperating in closest relationship with each other. Department of National War Services. I informed the house some days ago that the government had decided to establish a Department of National War Services. I indicated at that time that the purposes of the new department would include the coordination War Organization-Mr. Mackenzie King of the activities of voluntary war organizations and services, but what was even more important, that it would be entrusted with the duty of mobilizing and guiding the activities of thousands of our citizens who are seeking practical and useful outlets for their enthusiasm and patriotism, and who are already banded together in patriotic organizations, veterans organizations, women's organizations, and a host of other groups who are eager to serve. The minister charged with the responsibility for the new department will be expected immediately to establish a nationwide organization for voluntary service to be assisted by local committees in all parts of the country. With developments in Europe, problems such as those of refugees, evacuated children, interned aliens and interned enemy prisoners have assumed proportions which require for their solution more and more in the way of cooperative effort on the part of Canada. Problems of internal security have arisen which have demanded increased governmental action and voluntary cooperation. The government has required additional powers for the mobilization of human and material resources. These powers in turn necessitate a nationwide registration which will permit of the most effective use being made of individual personal services and material resources. The functions of the new department are not limited to the coordination and development of voluntary services. The direction and supervision of the national registration will be among the duties of the new ministry. In this connection, I should like to repeat that the government intends to make the fullest use, through the new department, of the register of women already prepared by the national committee for the voluntary registration of Canadian women. I might add that a good- part of the preliminary work of organization in connection with the national registration has already been completed by a special inter-departmental committee, under the chairmanship of the Dominion Statistician, which committee was established immediately after the announcement of the government's intention to undertake the registration of manpower. The powers of the new department will also include the co-ordination of existing governmental information and publicity services connected with the war, in order to insure that Canadians generally may be more completely informed of all aspects of our war effort, with a view to enlisting the maximum understanding and support of the great cause in which we are engaged. Speaking generally, the new department will have the function, as I have already said, of helping Canadians to help Canada in the effective prosecution of the national effort. The all but complete cessation of new public works, other than those necessitated by the war, has led to a marked decrease of the work of the Department of Public Works. With the transfer to the Department of Munitions and Supply of those branches of the Department of Transport concerned with airways, civil aviation, and radio broadcasting, the services of the Department of Transport will be also considerably reduced. It is proposed, therefore, to entrust to one minister instead of two, the administration of the Department of Public Works and the administration of the Department of Transport. It will be observed that the undertaking to bring to the aid of the ministry a still larger number of men of outstanding ability and experience was not an undertaking specifically with reference to the cabinet, though it did not exclude changes or enlargement of the ministry itself. It is perhaps not sufficiently realized that the functions of cabinet ministers, though very responsible, are necessarily limited. They must determine policy, make final decisions and accept responsibility, each individually for his own department, and all collectively for the administration generally. The actual work of administration i§, however. carried on by the officials in the public service. I have already shown that in making the extensive additions to the administrative service which have been required by wartime needs, the government has adopted the single criterion of ability. No political, partisan or personal considerations have diverted us from getting the most suitable man available for the particular job required to be done. The filling of cabinet posts is a more complicated task that the filling of administrative posts. Ability to direct the work of the government departments concerned is, of ' course, an important requisite. It is, however, far from being the only one. A cabinet minister must also be prepared to assume his full share of responsibility for all acts of government, and for explaining the policies of the government to parliament and to the country. He must, of course, be a member of parliament. If he is not in parliament when he is called to the cabinet he must find a constituency and be elected in it. Above all he -must have a capacity to work in immediate association with other ministers in the cabinet in the formulation of policy. Nothing would 1400 COMMONS War Organization-Mr. Mackenzie King paralyze government more quickly than divided counsels or dissension within the ministry. That does not mean that narrow party considerations or, as some impatient critics are too eager to suggest, the dictates of "party politics" or of personal whim, govern the choice of ministers, particularly in war time. But it does mean that different qualities are required for effective work as a cabinet minister from those required in an administrative or executive post. It is a common experience to find that a business man is willing to make very great personal sacrifice in order to serve his country in an administrative capacity, but is exceedingly reluctant to enter the cabinet because a ministerial post involves election to parliament, public speaking and other activities for which he feels he has neither aptitude nor training. Furthermore, the acceptance of a cabinet post involves a more complete severance of business and professional ties than is necessary in undertaking temporary administrative or advisory appointments. There is no business of any magnitude or importance in this country to which the war has not brought particular problems of its own. Highly placed executives may be spared by such concerns either in an executive or advisory capacity, for whole or part-time, without the risks attendant upon a complete severance of business relations such as would be involved in their entering the ministry. If I ever had any doubt on this score, it has been removed by some of the steps I have recently taken in seeking to increase confidence in the disinterested motives of the ministry by bringing into the cabinet one or more persons whose inclusion would, I felt, have demonstrated the readiness of the government to meet, if that were possible, the wishes of members of political parties to have the basis of representation in the cabinet widened by the inclusion in the cabinet of persons known to command their confidence. It is an open secret that I have directly and indirectly offered to take into the ministry outstanding persons, none of whom are at present in public life, but whose presence in the ministry would, I believe, have made wholly apparent the readiness of my colleagues and myself to associate with ourselves in the work of the ministry persons whose appointment could in no sense be regarded as made from any party political motive, but only on the ground of the outstanding qualities the persons appointed were known to possess. Were I at liberty to give their names, I am sure that honourable members in all parts of the house would consider them among persons highly qualified to inspire confidence in the non-partisan character of the government's war effort. I have found that those I approached felt that such special services as they could render could be given more effectively, either in administrative posts or in an advisory capacity or by their continuing to occupy an eminent and independent position in the community. The prevalence of this attitude was not the least of the reasons which led me to abandon the attempt to add to the cabinet from outside the ranks of those without previous experience of public life. It is sometimes forgotten that the intimacy and prominence of the associations enjoyed with large enterprises are not infrequently a barrier rather than a passport to membership in a cabinet. The same consideration does not so generally apply where the services to be rendered are not concerned with the determining of policy but with its execution. I have come to the conclusion that, for the present at least, the most effective use can be made of the services of men without previous experience of public life by bringing them into association with the ministry in an administrative or advisory capacity rather than by their inclusion in the ministry itself. Advisory Committee to the Cabinet Considered From like motives, I have also given consideration to the appointment of an advisory committee to the war committee of the cabinet which would include a limited number of persons chosen because of their prominence in representative fields of activity. To this proposal there are a number of objections, which, everything considered, appear to me to rob such a step of the advantages it might at first sight appear to possess. In the first place, no matter what the political affiliations of members of such an advisory committee might be, the mere fact that they had been appointed by the government and had not sought or obtained any mark of public confidence from any section of the electorate, would tend to lessen their representative capacity in the eyes of the public. They themselves might naturally feel that their power was not equal to the responsibility which they might be held to be assuming. Indeed, the objection on this score has been raised on the part of more than one with whom I have discussed the proposal. The need for such a committee is itself more apparent than real, once it is realized that it is always possible for the government to obtain the benefit of the advice of those War Organization-Mr. Mackenzie King best qualified to counsel in particular matters, apart altogether from any membership in an advisory body. Business men and professional men of wide experience and high standing can always be consulted and are in fact continually being consulted by the government whether they are members of an administrative branch of government or not. Associate Members of War Committee Realizing the importance of increasing public confidence through bringing to the aid of the ministry all points of view and opinions, I have considered yet another means by which this end might possibly be attained. I have thought of inviting leading members of the opposition to become associate members of the war committee of the cabinet, to share its deliberations and to assist in the formation of its proposals to the cabinet. Regardless of what course may be adopted, the government itself must, in the last analysis, take the responsibility for whatever is done or left undone. That responsibility cannot be escaped or evaded. It is difficult even to share it. It would not be my idea, in case members of the opposition became associate members of the war committee of the cabinet, for the government by that means to seek in any way to evade full and final responsibility for Canada's war effort. But the presence in an advisory and associate capacity of members of the opposition would have a number of advantages. While their addition to the war cabinet would leave unimpaired the requirements of responsible government, it would mean that the government's policies were being shaped and made effective not only under the open gaze of members of the opposition, but with the assistance of their counsel, experience and advice. It would mean that in all major matters of defence, internal security, international cooperation, the leading members of the opposition, chosen to act in association with members of the war cabinet, would be fully informed. At the present time, one of the great-difficulties of government lies in the fact that many matters of which the government has knowledge, many steps which the government takes, many actions which the government plans, are, in the very nature of things, highly confidential, and must remain so for varying periods of time. This obstacle would, in part at least, be overcome by the proposed associate membership of opposition leaders in the war committee of the cabinet, where, to its members, their experience, advice and point of view would certainly be of value. I believe that such a step would be of real assistance to the government in the discharge of its great responsibilities. I am therefore prepared to invite the leader of the opposition (Mr. Hanson), and the hon. member for Yale (Mr. Stirling), who shares his desk, and was a former Minister of National Defence, to become associate members of the war committee of the cabinet. Were the invitation accepted, it would be my wish that they should be present at all meetings of the war committee and take part in all its proceedings. I am prepared, also, if this invitation is accepted by my hon. friends opposite, and if it is agreeable to other political groups in the house, to consider the extension of the invitation also to their leaders. If the house and the gentlemen whom I have invited look upon the proposal with favour, it would mean that the country would have the benefit of their wisdom, advice and experience, the government would retain the responsibility for the direction of Canada's war effort, with which it has been charged. It would also be understood that members of the various opposition groups in this house would continue to be free to criticize the administration as they think fit, and to vote and act with complete independence. Conferences with the Opposition If the hon. gentlemen opposite should feel that they were unable to accept the invitation I have just extended, believing that thereby they would be accepting a share of responsibility without being accorded an equivalent share of power, I am prepared to make yet another proposal, the acceptance of which, I should hope, would not occasion the slightest embarrassment and which I feel would be essentially helpful at this time. As I have already said, much of the action of the government and even more of the information on which its actions are based must, for military reasons, remain secret. This consideration hampers the government in the discussion of its policies and action in parliament and before the people. We recognize that it is an even more serious embarrassment to those in opposition in war time. Their lack of knowledge makes effective criticism difficult; it has also a tendency to breed misgivings which need not exist if the facts could be made available. I believe that this situation could be remedied at least in part while parliament is in session by regular weekly conferences between the war committee and the members of the opposition and by similar conferences held at intervals when parliament is not in session. At such conferences the government will be prepared to disclose, in confidence, full and detailed information both as to its actions

1402 COMMONS War Organization Mr. Mackenzie King and the considerations on which those actions are based. The effectiveness of the opposition, far from being impaired, will be greatly increased by the knowledge gained by their leaders by such conferences. Members of the opposition, as regards their rights of criticism, will have, as they have now, only the limits imposed by their personal sense of responsibility as citizens and members of parliament. From the standpoint of the public interest conferences of this kind would certainly have the merit of increasing confidence in Canada's war effort and thereby help to prevent the development of uneasiness which provides such a fertile ground for subtle enemy propaganda aimed at destroying the unity of that effort. Let me now conclude with a word in reference to cabinet reconstruction. The acceptance, on Friday last, by Colonel J. L. Ralston of the portfolio of national defence was followed by Colonel Ralston's resignation as Minister of Finance. I am pleased to announce that the Hon. J. L. Ilsley, who, until to-day, was filling the office of Minister of National Revenue, has been appointed as Colonel Ralston's successor as Minister of Finance. As hon. members are well aware, Mr. Ilsley, during recent years, whenever occasion required, has been the acting Minister of Finance. During the period of the illness of the former Minister of Finance, the Hon. Charles Dunning, and during Mr. Dunning's absence abroad, Mr. Ilsley ably presided over the affairs of the finance department. He is wholly familiar with its several activities; his ability as administrator in the years that he has been a member of the present cabinet has gained for him an enviable reputation in all parts of Canada. It is not a surprise, therefore, that public opinion generally, as reflected through the medium of the press, seemed to take it for granted, when it became known that Colonel Ralston had agreed to leave the Department of Finance for that of national defence, that Mr. Ilsley would be the logical successor. Mr. Ilsley was sworn to his new office at noon to-day. In order that he may give his undivided attention, at this time of war, to the work of the Department of Finance, Mr. Ilsley has resigned as Minister of National Revenue. Hon. members are aware that, in addition to his duties as Minister of Transport, the Hon. C. D. Howe has, since April 9, been at the head of the new Department of Munitions and Supply. Mr. Howe has to-day given up the portfolio of the Minister of Transport in order that, from now on, he may devote his entire time to the work of the Department of Munitions and Supply. [Mr. Mackenzie King.) I have referred to the contraction in the work of the Department of Public Works occasioned by the government's policy to restrict as largely as possible, during the period of the war, the construction of public works. I have also referred to the transfer of certain services from the Department of Transport to the Department of Munitions and Supply. .As the services of each of these departments has been somewhat curtailed, it has been felt that the administration of both departments could be entrusted to the one minister. Accordingly Hon. P. J. A. Cardin, who is Minister of Public Works, has to-day been appointed Minister of Transport. I am pleased to be able to announce that my colleague the Hon. J. G. Gardiner, the present Minister of Agriculture, has agreed, once the act creating the new Department of National War Services has been passed, to undertake the organization of that new and important department of government. I need not say anything of Mr. Gardiner's special qualifications for such a task. His long experience in public life, his exceptional organizing ablities, his power as administrator so effectively disclosed in the years of his premiership of the province of Saskatchewan, and as a federal minister, are all guarantees that the purpose of the new department will be promoted with zeal, energy and skill, and the department made one of the most effective instruments in a nation-wide furtherance of the war effort of our country. Mr. Gardiner will become, when he assumes the office of Minister of National War Services, a member of the war committee of the cabinet. That his undivided energies and time may be given to the work of the new department, he will shortly vacate his present position as Minister of Agriculture. I am particularly pleased to be able to announce that I have obtained from the Premier of Nova Scotia, the Hon. Angus Macdonald, the promise of his willingness to resign the premiership of the province of Nova Scotia, a position which he has held with such honour and distinction alike to his native province and to himself, and to accept, immediately upon the establishment of the new department, the portfolio of Minister of National Defence for Naval Services. In thus responding to my request to assist my colleagues and myself in the prosecution of Canada's war effort, Mr. Macdonald is giving to our country another example of devotion to public duty, and of a willingness to serve, which in the public mind are already associated with his name. In addition to bringing to his new post his proven administrative ability, Mr. Macdonald has had an experience of military affairs gained as an officer in the last War Organization-Mr. Mackenzie King war. Such experience as will come with him to the council table will serve to strengthen not only his own, but all branches of the defence services. It will be recalled that when Mr. Power accepted the portfolio of Minister of National Defence for Air, in order that he might give his entire time to the work of the Department of Defence, he resigned the position of Postmaster General, the affairs of which department have since been administered, as acting minister, by Mr. Usley. It is felt that the vacancy created in the office of Postmaster General by Mr. Power's resignation should now be filled. I need not say to honourable members of the house and particularly to those who are numbered among my own supporters, that I have had few more difficult tasks than that of deciding to which of their number I should entrust the administration of the Post Office Department, and the administration of the Department of National Revenue. The resignation, at the time of his appointment to the Senate, of the Hon. W. D. Euler as Minister of Trade and Commerce-a portfolio subsequently filled by the appointment to that position of the Hon. J. A. MacKinnon, as a Minister from Alberta-and the tragic death of the Hon. Norman Rogers, have deprived the province of Ontario of half of its representation in the government. It would, I am sure, be generally expected that, in the filling of existing vacancies, this representation of Ontario in the federal cabinet should be restored. At all events, my colleagues and I have so viewed the matter. That, however, has been the least of the difficulties. A much more perplexing problem has been that of making a choice from among the many honourable members from the province of Ontario who possess qualifications and claims for cabinet recognition. I have felt that, at this time of war, the citizens of Canada generally and in particular those of the province of Ontario would, other things being equal, welcome the appointment of members of this house who had seen active service in the last war, and who, on these as well as on other grounds, might be expected to bring valuable experience to the ministry in this most critical of all times. Recommendations have accordingly been made to His Excellency the Governor General to-day, which his excellency has been pleased to approve, of the appointment of Colonel William Pate Muloek, of the city of Toronto, member for York North, as Postmaster General, and Colonel Colin Gibson, of the city of Hamilton, member for Hamilton West, as Minister of National Revenue. I have given the house in considerable detail particulars of the manner in which the administrative functions of government have been extended and improved by attaching to the public service a large number of outstanding Canadians from all fields of industrial, financial and other endeavour. Each and every one has been chosen because it was considered that he was best able to advance the war effort of this country by specialized knowledge, and service based upon specialized education and experience. I have offered to gentlemen opposite, in the only manner I have felt consistent with responsible government, an opportunity to share in our deliberations. By that invitation I have asked them also to give to the government the benefit of their wisdom and their experience. I have not asked them to share in our ultimate responsibilities because that would not be fair either to them or to the electors of this country. I hope that my honourable friends will find themselves able to accept one or other of the proposals I have made. Whatever may be their decision I believe that I can at least make this claim on behalf of my colleagues and myself. We have not flinched from our primary and ultimate responsibility. We have not trimmed our sails to the breezes of popular favour or disfavour. While we have recognized our responsibility for policy, we have sought to obtain the best advice available in the country to assist us in its formation and pronouncement. I leave this recital of facts with confidence to this house and the people of Canada. It tells its own story. It is the brief record of a government which, at a time of great peril in the affairs of the world, has done everything in its power to meet its responsibilities, to strengthen its administration, to mobilize the brain-power and resources of this country-in short, to do its plain duty, fully, honourably and fearlessly.


Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Hon. R. B. HANSON (Leader of the Opposition):

We have listened this afternoon with the very closest attention to the extraordinary efforts of the Prime Minister (Mr. Mackenzie Kingl to bolster up in the minds of the people of Canada the shattered fortunes of his government. There are one or two personal matters to which I should like to allude at the very beginning. Towards the end of his speech the Prime Minister advocated the inclusion of certain gentlemen, myself and my colleague the hon. member for Yale (Mr. Stirling), who sits to my left, and possibly the leaders of other parties in this house, in a consultative capacity, as I understood it, in a war committee of the cabinet.



War Organization-Mr. Hanson (York-Sunbury)


William Lyon Mackenzie King (Prime Minister; Secretary of State for External Affairs; President of the Privy Council)



Associate members.


Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

Associate members. I may say to the house and the countiy that a week ago on Friday the Prime Minister, in the course of a private conversation, made some such suggestion to me. At that time I was just about to leave for my home and the matter was not more than touched upon. I had time only, with his permission, to intimate the subject matter of the proposal to my colleague, and there the matter has rested ever since, because I have been waiting for the Prime Minister to clarify the position if he wished to proceed with it. But until this afternoon I had heard nothing from him. I am just a little bit surprised that without any notice to me or to my colleague, the Prime Minister has publicly referred to the matter, which I consider to be of very great importance. I can only say to him at this time that such an offer as he suggested a week ago Friday, and more specifically stated, if I gathered aright what he said, this afternoon, is not one that I at least would lightly refuse at this critical time in Canada's history. Neither is it one that I think I ought to accept without the gravest reflection, because ever since I came to Ottawa to attend this session of parliament I have been seized with the gravity of the situation in Canada as affecting our war effort, particularly our effort to aid our mother country and to aid in the defence of Canada. I have never refused on any occasion, so far as I can recall, to cooperate with the government in the furtherance of their war effort, and I do not intend to begin now.

The house and the country will of course not expect me to deal at any considerable length with all the topics that the Prime Minister has referred to this afternoon. As I intimated at the opening, his statement strikes me as a valiant attempt on his part to stem the tide of adverse public opinion in the country against his government. Let there be no mistake about it; the fortunes of this government are badly shattered. Public opinion at the moment is running strongly against this government, and I suggest to the Prime Minister that public opinion in Canada has been looking for something far more than he has offered this afternoon. The statement he made, comprising upwards of 40 pages, was filled up with a recital of the various boards and administrative committees that the government has set up since the war opened, or at least since active participation in the war began. Hundreds of names have been put upon the record. They are the names of devoted Canadian citizens, many of them known to me personally, many of them well

qualified to assist the government in this war effort. These men are acting and will act in an effort to aid this government to carry out Canada's duty in the premises as we know them. There is no doubt about their desire to assist, and with respect to many of them there is no doubt about their ability to do so. But that is not what the country has been looking for. I venture to assert that two-thirds of the Prime Minister's speech is just padding and nothing more. The only thing he omitted was to name the messengers and stenographers and office boys-and the new Minister of Agriculture.

However, let that be as it may. The Prime Minister did at the latter part of his speech refer to another important matter, and I am going to deal with it in a moment. But on the way let me tell the Prime Minister and the house what my reaction is to his statement. It is suggested by the English translation of a phrase from Horace's Ars Poetica: "The mountains are in labour, and a ridiculous mouse has been bom."

That is my first reaction to the general scheme of things that the Prime Minister has suggested. As he has said, it is no secret that for weeks, at least since the middle of Juno, the Prime Minister has been endeavouring to bring into his cabinet men of national calibre and of the Conservative faith. I have known of these efforts, and I say to him and to the country that never at any time, by word or deed or letter or anything else, have I tried to put any obstacle in the way of his bringing these men in. So far as I can recall I communicated directly with only one of them, and he was not a Conservative. I merely asked him if he was going in, and he intimated that he had been invited but that he was not going in, and he gave his reasons. Some of these men are men of national prominence; some are not so prominent. But they would not go in because the Prime Minister made it impossible for them to go in.


Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

The Prime Minister made it impossible. When? On the evening of Thursday, June 20 last, when I was referring to the question of national service, the strengthening of the cabinet and the establishing of a national government. The Prime Minister made a speech in reply which I think upon mature reflection he will regret the rest of his life. It is comparable in my opinion to the "five-cent" speech which he made just prior to the 1930 election, and which had such a damaging effect upon his fortunes when he went to the country that year. The statement which the Prime Minister made on the occasion to which I

War Organization-Mr. Hanson (York-Sunbury)

refer meant only one thing, namely that despite the fact that Canada is at war, despite the emergency now confronting this country, the Prime Minister is still thinking in terms of party power, his own personal position and the stability of his personal leadership.

On that occasion to my utter surprise the right hon. gentleman laid down two conditions which he said would govern future cabinet reorganization and leadership-and I may interject that to-day he has shown himself true to that statement. He said, referring to myself:

I hope he will not ask me as the leader of the administration to accept as a colleague any of those in the front benches before me who have said that they thought I was quite unqualified to be the leader of a government at the present time.

Of course that was said in a moment of personal pique. The second declaration of principle was this-and I want to direct particular attention to it, because it is a statement of a new principle in constitutional government in Canada. He said:

When I take into the administration additional gentlemen in order to strengthen it, one of the first qualifications which I shall require of them, as of anyone else, is loyalty to myself-


Some hon. MEMBERS:

Hear, hear.


Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

All right; hon. gentlemen may applaud that statement of principle, but I suggest to them that that is not the true principle upon which the safety of the state should be based at this time.


William Lyon Mackenzie King (Prime Minister; Secretary of State for External Affairs; President of the Privy Council)



Does my hon. friend suggest that a prime minister should take into his cabinet someone who is known to be personally disloyal to him?


Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

If the

Prime Minister will just possess himself in patience and hear my argument I am sure in his heart he will agree with it.

-and not a disposition to stab the leader of the party in his breast when he is trying to serve his country to the best of his ability at a time of war.

That is a statement which I think the Prime Minister will regret-


Some hon. MEMBERS:

No, never.


Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):


which his biographer, when the time comes to write that monumental work, will have a great deal of difficulty in explaining. In my humble opinion in making that statement the Prime Minister immediately made any union government, any government including members of other parties or any national government, impossible under him.


July 8, 1940