April 7, 1904 (9th Parliament, 4th Session)


Fletcher Bath Wade



section, not to exceed $30,000 per mile. The limit is removed from the latter. That is, if the mountain section costs more than $40,000 per mile then the government is obliged to guarantee more than that amount. I think that this is reasonable ; I think it is fair that the government should guarantee the full three-quarters of the cost, and _ it was scarcely necessary that any discrimination should be made in this connection. The next clause provides that the government may implement the amount of their guarantee to offset the uncertainty of the money market at the time the bonds are placed upon. it. That is to say if when the bonds are placed on the market when they are worth only 90 cents on the dollar, the government undertakes to guarantee bonds to a sufficient amount to produce three-fourths of the cost of the road. That I submit is reasonable and fair.
There is a further concession here which should not cause very much trouble to any of us, that is the provision that the government will not take action in the way of foreclosing or taking possession of the road unless and until the company is in default in the payment of their interest, which is not provided for, for the period of five years. In other words we give the company just that much further time to get fully and completely upon their feet and to get their business into working order. I uo not think that is unreasonable. We must remember that this company has not only to build its line of railway from Moncton to the Pacific ocean, before it can commence to do anything like a reasonable amount of business, but that it must also reach out with branches hither and yon, must complete its steamboat service and do very many other things. I do not think tne time we are allowing them in which to get fully under headway is unreasonable, and when we withhold our hands for five years after this interest becomes due it is a reasonable provision. Closely connected with this company and with its future success as the government and people of Canada are, it would not be wise on the part of the government to exact any conditions which would have the effect of injuring the company or to refuse to give any concessions which would have the effect of benefiting them. Let them give every assistance to the company that they reasonably can without loss or injury to the country ; in doing that they will strengthen the hands of the company and in strengthening the hands of the company they will enable them to go forward and accomplish a greater amount of good for the Dominion of Canada, and make it more certain that the company will carry out their obligations. The hon. member for South Lanark (Mr. Haggart) took very strong exception to the seventh paragraph of this agreement. The hon. leader of the opposition (Mr. R. L. Borden) did not refer to it in his address.

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