November 29, 1945

LIB

Robert Wellington Mayhew (Parliamentary Assistant to the Minister of Finance)

Liberal

Mr. MAYHEW:

I made a brief statement on this matter when it was in the resolution stage. I do not knowr whether hon. members wish me. to repeat it or net. Any information they want can be given on second reading or when we are in committee of the whole.

Motion agreed to and bill read the second time.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION TO MEET CERTAIN EXPENDITURES AND GUARANTEE OF SECURITIES AND INDEBTEDNESS
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LIB

James Horace King (Speaker of the Senate)

Liberal

Mr. SPEAKER:

Mr. Mayhew moves that I do now leave the chair for the house to resolve itself into committee of the whoie on the said bill.

C.N.R.-Guarantee of Securities

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION TO MEET CERTAIN EXPENDITURES AND GUARANTEE OF SECURITIES AND INDEBTEDNESS
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CCF

William Irvine

Co-operative Commonwealth Federation (C.C.F.)

Mr. IRVINE:

What are we adopting?

We do not know' what it is about.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION TO MEET CERTAIN EXPENDITURES AND GUARANTEE OF SECURITIES AND INDEBTEDNESS
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LIB

James Horace King (Speaker of the Senate)

Liberal

Mr. SPEAKER:

Is it the pleasure of the house to adopt the motion?

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION TO MEET CERTAIN EXPENDITURES AND GUARANTEE OF SECURITIES AND INDEBTEDNESS
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?

Some hon. MEMBERS:

No.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION TO MEET CERTAIN EXPENDITURES AND GUARANTEE OF SECURITIES AND INDEBTEDNESS
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CCF

William Irvine

Co-operative Commonwealth Federation (C.C.F.)

Mr. IRVINE:

On division.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION TO MEET CERTAIN EXPENDITURES AND GUARANTEE OF SECURITIES AND INDEBTEDNESS
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Motion agreed to, bill read the second time, and the house went into committee thereon, Mr. Macdonald (Brantford City) in the chair. On section 1-Sfyort title.


PC

Gordon Knapman Fraser

Progressive Conservative

Mr. FRASER:

Will the minister tell us

what the net revenue was last year?

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION TO MEET CERTAIN EXPENDITURES AND GUARANTEE OF SECURITIES AND INDEBTEDNESS
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LIB

Robert Wellington Mayhew (Parliamentary Assistant to the Minister of Finance)

Liberal

Mr. MAYHEW:

The cash surplus was

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION TO MEET CERTAIN EXPENDITURES AND GUARANTEE OF SECURITIES AND INDEBTEDNESS
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PC

Gordon Knapman Fraser

Progressive Conservative

Mr. FRASER:

That is the net?

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION TO MEET CERTAIN EXPENDITURES AND GUARANTEE OF SECURITIES AND INDEBTEDNESS
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LIB

Robert Wellington Mayhew (Parliamentary Assistant to the Minister of Finance)

Liberal

Mr. MAYHEW:

That is the net cash surplus of the Canadian National Railwa3rs.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION TO MEET CERTAIN EXPENDITURES AND GUARANTEE OF SECURITIES AND INDEBTEDNESS
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PC

Alan Cockeram

Progressive Conservative

Mr. COCKERAM:

That is for the year ended March 31 ?

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION TO MEET CERTAIN EXPENDITURES AND GUARANTEE OF SECURITIES AND INDEBTEDNESS
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LIB

Robert Wellington Mayhew (Parliamentary Assistant to the Minister of Finance)

Liberal

Mr. MAYIIEW:

That is for the calendar year 1944. .

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION TO MEET CERTAIN EXPENDITURES AND GUARANTEE OF SECURITIES AND INDEBTEDNESS
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PC

Thomas Langton Church

Progressive Conservative

Mr. CHURCH:

Part of the bill relates to betterments of the system. What percentage of those betterments are related to the lines within Canada and how much of this expenditure, amounting to $15,000,000, is to be made in the United States on American affiliations? Although repairs are very badly needed in Canada, it would seem that a great deal of work is to be done on subsidiaries in the United States, where, of course, they have betterments which we in this country have not got at all.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION TO MEET CERTAIN EXPENDITURES AND GUARANTEE OF SECURITIES AND INDEBTEDNESS
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LIB

Lionel Chevrier (Minister of Transport)

Liberal

Mr. CHEVRIER:

The expenditures on

betterments for lines in the United States out of the $15,000,000 referred to by my hon. friend are as follows: Grand Trunk Western Railroad Company, $1,529,246; Central Vermont Railway, Incorporated, $203,045. The rest of the money is for betterments in Canada. [DOT]

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION TO MEET CERTAIN EXPENDITURES AND GUARANTEE OF SECURITIES AND INDEBTEDNESS
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Section agreed to. On section 2-Power to issue securities for capital expenditures. .


PC

Alan Cockeram

Progressive Conservative

Mr. COCKERAM:

I understood that during the war years both the C.N.R, and the C.P.R. have been allowed to place certain sums of money aside for betterments and for reestablishment of their systems. How much money is standing in the Canadian National treasury for that purpose? We are being asked here, as I understand, for an additional $15,000,000.

47696-168J

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION TO MEET CERTAIN EXPENDITURES AND GUARANTEE OF SECURITIES AND INDEBTEDNESS
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LIB

Robert Wellington Mayhew (Parliamentary Assistant to the Minister of Finance)

Liberal

Mr. MAYHEW:

The development maintenance fund in the Canadian National Railways is $34,000,000.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION TO MEET CERTAIN EXPENDITURES AND GUARANTEE OF SECURITIES AND INDEBTEDNESS
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PC

Alan Cockeram

Progressive Conservative

Mr. COCKERAM:

And an additional $15,000,000 is required on top of that?

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION TO MEET CERTAIN EXPENDITURES AND GUARANTEE OF SECURITIES AND INDEBTEDNESS
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LIB

Robert Wellington Mayhew (Parliamentary Assistant to the Minister of Finance)

Liberal

Mr. MAYHEW:

No; one is capital and the other is maintenance. I think there is a little confusion in the minds of some people. The net cash surpluses of the railway automatically go into the sinking fund of the railway, so that we actually are only giving them back a portion of what they have already paid to the government. What they have done is done out of depreciation. This amount does not increase the capital indebtedness of the Canadian National Railways. As a matter of fact there will still be a reduction of $1,977,000; their net debt will be less by that amount.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION TO MEET CERTAIN EXPENDITURES AND GUARANTEE OF SECURITIES AND INDEBTEDNESS
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November 29, 1945