June 6, 1947

PC

John Thomas Hackett

Progressive Conservative

Mr. HACKETT:

I did not understand

the parliamentary assistant to say that. When is the earliest moment the bonds can be called?

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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LIB

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

Liberal

Mr. MAYHEW:

The United States ones are October 1, 1949. But this is not a case where, if this bill goes through, the department will rush out immediately and dispose of those bonds.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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PC

John Thomas Hackett

Progressive Conservative

Mr. HACKETT:

Could they not be called before 1949?

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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LIB

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

Liberal

Mr. MAYHEW:

No, they cannot be called before 1949.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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PC

Douglas Scott Harkness

Progressive Conservative

Mr. HARKNESS:

If they cannot be called before 1949, why should we authorize this $200,000,000 now? By 1949 it may perchance happen that United States exchange will be very much in our favour. Conditions may be entirely different. I completely fail to see why in 1947, and not even the latter part of 1947, we should be voting money to call bonds in 1949. It is absolutely certain that parliament will meet at least twice in the interim, and certainly we should not be called upon to vote this money now for a purpose we do not know. We do not know what the position will be in 1949.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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CCF

Alexander Malcolm Nicholson

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

Mr. NICHOLSON:

I wish to make it clear that I am not opposing this legislation,, but my hon. friends to my right have a good deal of difficulty getting the information they want and, while I do not wish to raise a point of order, I would ask, should not this legislation be piloted through this house by a member of the cabinet?

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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LIB

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

Liberal

Mr. MAYHEW:

I do not know what information the hon. member wants that he has not been able to get.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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CCF

Alexander Malcolm Nicholson

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

Mr. NICHOLSON:

My hon. friends to the right are not making much progress in getting the information they want and, before we pass this legislation, we should have either the Minister of Finance or the Minister of Trans-

Canadian National Railways

port on hand to supply the information. Could we not report progress and resume the discussion later?

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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LIB

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

Liberal

Mr. MAYHEW:

The Minister of Justice is in the house, and I am sure that he would be able to answer more clearly than I have been able to do, and I shall be glad to have him do so.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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LIB

James Lorimer Ilsley (Minister of Justice and Attorney General of Canada)

Liberal

Mr. ILSLEY:

I am not carrying the legislation. I am not familiar with the bill at all, but I have been listening to the discussion and it seems to me that every question has been answered. There may be one or two questions outstanding.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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PC

Arthur Leroy Smith

Progressive Conservative

Mr. SMITH (Calgary West):

Is there not some provision in the Railway Act that when parliament gives authority to do certain things, issue bonds or borrow money, it must be done within a certain time? My recollection is hazy, but it strikes me that there is something in the Canadian National Railway Act or somewhere with respect to the time of sale of these securities.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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LIB

James Lorimer Ilsley (Minister of Justice and Attorney General of Canada)

Liberal

Mr. ILSLEY:

I have no recollection on the matter at all; I am not in a position to answer the question.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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LIB

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

Liberal

Mr. MAYHEW:

This is the same kind of bill which has been going through each time since 1929. It is four years since the last one went through. Practically everything is identical in this bill to the last one that went through. It will give the department a better chance to know what they are to do or to plan a little ahead of what they are to do than to wait and have to come back to the house each time. This is not something that goes through the estimates every year as ordinary amounts do. It is a matter of financing as one would finance his own business. He looks ahead to see when he can best sell his bonds or buy them. This is exactly the same thing. The Department of Finance wants to be in a position to negotiate the securities.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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PC

Arthur Leroy Smith

Progressive Conservative

Mr. SMITH (Calgary West):

Will you sell the whole of them now?

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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PC

Douglas Scott Harkness

Progressive Conservative

Mr. HARKNESS:

May I have an answer to this question? Apart from the general statement which the parliamentary assistant has just made as to why it is necessary for us to vote this money now when the railway will not need half of it until 1949, frankly I completely fail to see why we should vote S200 million which cannot be used until 1949 In fact it seems to me a little ridiculous.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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LIB

Leslie Alexander Mutch

Liberal

Mr. MUTCH:

Are we voting any money at all in this bill?

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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PC

Douglas Scott Harkness

Progressive Conservative

Mr. HARKNESS:

Yes.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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LIB

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

Liberal

Mr. MAYHEW:

The sum of $20 million will be required on February 1, 1948, and S25 million on February 15, 1948.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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PC

John Thomas Hackett

Progressive Conservative

Mr. HACKETT:

Is that New York?

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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LIB

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

Liberal

Mr. MAYHEW:

No; Canada.

Topic:   CANADIAN NATIONAL RAILWAYS
Subtopic:   PROVISION FOR REFUNDING OF FINANCIAL OBLIGATIONS
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June 6, 1947