1930-05-01

[Stage Direction]
(Questions answered orally are indicated by an asterisk.)

Mr. MANION:: 1.	How many immigrants were admitted into Canada during the calendar year 1929?
2.	Prom what countries did they come and the number from each country?
3.	How many Mennonites were admitted into Canada in 1929?


Mr. STEWART (Edmonton):: 
SOLDIER SETTLEMENT BOARD
Mr. SPENCER:: 1.	How much in the aggregate had been written off by the Soldier Settlement Board since January, 1921?
2.	In what years and in what amounts were, these deductions made?


Mr. STEWART (Edmonton):: l.To February 28, 1930.. .. 2.1926-1927	
1927-	1928	
1928-	1929	
1929-	1930 (to Feb. 28).. ..

3,456,261 61	$ 9,094,918.16
Estimated amount further land revaluation awards
1,200,000 00
Estimated total legislative reductions	
Further losses and anticipated losses:
Completed adjustment cases	
Incompleted cases	 [DOT][DOT]

Losses on current loans	
Total estimated reductions and losses
2,500,000	00	$16,500,000 OO

Amount written off by Finance dept, prior to March
31, 1928:	live stock reduction	
Amount transferred by Finance dept, from active assets to non-active assets


S 21,921,062 91 $24,000,000 OO
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Total
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For Department of Indian Affairs:
1.	$38,229.48.
2.	1925-26, $15,458.38; 1928-29, $22,771.10.

[Stage Direction]
Right Hon. W. L. MACKENZIE KING (Prime Minister) moved that the house go into committee to-morrow to consider the following proposed resolution:
That it is expedient to provide that there shall be a Department of Marine, presided over
by a minister of the crown; that the powers and duties of the minister be defined, and provision made for the appointment of a deputy minister and the employment of such other officers, clerks and employees as may be deemed necessary.
He said:	His Excellency the Governor
General, having been made acquainted with the subject matter of this resolution, recommends it to the favourable consideration of the house.
Motion agreed to.
The Budget-Mr. Dunning

[Stage Direction]
Right Hon. \V. L. MACKENZIE KING (Prime Minister) moved that the house go into committee to-morrow to consider the following proposed resolution:
That it is expedient to provide that there shall be a Department of Fisheries, presided over by a minister of the crown; that the powers and duties of the minister be defined, and provision made for the appointment of a deputy minister and the employment of such officers, clerks and employees as may be deemed necessary.
He said: His Excellency the Governor General, having been made acquainted with the subject matter of this resolution, recommends it to the favourable consideration of the house.
Motion agreed to.

[Stage Direction]
Right Hon. W. L. MACKENZIE KING (Prime Minister) moved that the house go into committee to-morrow, to consider the following proposed resolution:
That the Salaries Act be amended to provide that the Minister of Marine and the Minister of Fisheries shall each be paid a salary of $10,000 per annum.
He said:	His Excellency the Governor
General, having been made acquainted with the subject matter of this resolution, recommends it to the favourable consideration of the house.
Motion agreed to.
APPOINTMENT OF MR. GALIPEAULT On the orders of the day:
Mr. JEAN FRANCOIS POULIOT (Temis-couata):: Before the orders of the day are
called I wish to renew the strongest protest against the possible appointment of Mr. Gali-peault as a judge.



THE BUDGET


[Stage Direction]
Hon. CHARLES A. DUNNING (Minister of Finance) moved:
That Mr. Speaker do now leave the chair for the house to go into committee of ways and means.
He said:
Mr. Speaker, before touching on the Dominion's finances for the fiscal year just ended may I survey a few of the events which have indirectly influenced the balance sheet. As we all know, national revenues are dependent on the volume of business transacted.

During the year certain unusual factors made themselves felt, in particular, the delayed marketing of the grain crops and the great decline in prices of stocks in the latter months of the year. While these factors are important they cannot be considered as permanently prejudicial to our economic structure.
Looking back over the year, it is noted that substantial development occurred throughout Canada. Many undertakings of magnitude were completed; others made promising progress. Employment throughout industry in general was maintained at a high level, although irregular in some groups, particularly in those which are seasonal, dependent on crops or on a luxury buying demand.
There is, I think, some national significance in the fact that the railways last fall were not called upon to move harvesters to the prairies. It is true that the crop was much smaller than that of the year before, but in many a year when the volume was no larger men had to be brought from the east. It would appear that the increasing population of the prairies, coupled with the many labour and time-saving machines now available to cut, thresh and haul the crops, is bringing about the solution of a problem which has long engaged the attention of Canadians-that of seasonal supplies of labour during the harvest period. Western farmers are also advancing along cooperative lines designed to promote orderly marketing of crops. Too much importance cannot be attached to these efforts. Canada's grain producing power is tremendous. In marketing she must compete with the world. Cooperative effort in the direction of the most economical marketing methods should command the sympathetic support of all Canadians.
While nature, in no small way, influences the volume of produce grown, the same does not apply to the output of our factories. A short time ago a distinguished former Minister of Finance, Sir Thomas White, in addressing the shareholders of a corporation of which he is an officer, made the interesting comment that Canada now ranks seventh in world manufacture, and that the value of industrial production during 1929 was around
4,000	millions of dollars, an increase of about 200 million dollars since the close of 1928. He also stated that the statistics of value added by manufacture, per worker, show that the industrial efficiency of Canada is close to the level established in the United States, which is regarded as the highest in the world. Industrialists recognize that scientific research, coupled with ingenious mechanical inventions, has played an important part in bringing about this increase in per capita production, and

The Budget-Mr. Dunning
it is evident from the figures just quoted that Canadian industry is more than keeping abreast of world development in that respect During the past winter some good Canadians became anxious as to the purchasing demand within the Dominion. They were influenced by the falling off in exports due to the slow movement of field crops, and a hesitancy in buying, due to the stock exchange market depression. They recognized that while only a small proportion of our population were speculators in shares, the losses of these had a psychological effect on other groups, thus creating a buyer-market in place of one limited only by the producing capacity of Canadian industry. Might I submit that were the capacity of our productive emits greater than the normal non-speculative demand for our products there would be cause for alarm, but such is not the case. The development of our natural resources and industries based thereon has been accompanied by a steady widening of our markets. The outlet for our manufactured goods increases as their reputation grows and finds favour both at home and abroad. In the stock market crisis our credit agencies stood the test and were always in a position to meet the demands made upon them. These factors forecast the future strength of Canada. That Canadian business, giving the phrase the broad meaning, should be submitted to a double test simultaneously is regrettable, but the ^ result gives us greater confidence and faith in our country. We have marshalled our resources to meet the problems arising from delayed marketing of the grain crops and, at the same time, absorbed the shock resulting from tens of millions of dollars being suddenly withdrawn from the ordinary reservoirs of credit.
I now come to the presentation of the financial statement for the year. In doing so I claim no personal credit for the favourable statement I have the honour to present. The fiscal policy for the year was planned by one who has now passed from our midst, and whose absence I feel to-day most keenly. Mr. Robb was in command during the first seven months of the period, and the stamp of his personality is to be found throughout the balance sheet and, in particular, on the debt statement.
With the Scot's characteristic dread of debt he annually budgeted for debt reduction, and in the past seven years attained for Canada greater success, relatively, than has been achieved by any country which took part in
the great war from the outbreak of hostilities. Annually the debt has decreased and, in the year under review, a record which may stand as a monument to his memory was made when two loans, totalling S80,000,000, were redeemed out of accumulated revenue surpluses.
During the year the Board of Audit, on the instructions of the Treasury Board, made a survey of the operations of the Soldier Settlement Board. Their report was laid on the table of parliament on February 24, and it will be recalled that one of the board's recommendations was that a further sum of $10,000,000 of Soldier Settlement Board loans be transferred from active to non-active assets.
It is the opinion of the Board of Audit that this amount, together with the $14,000,000 which was transferred to non-active assets in 1927-28 should provide for all losses which might reasonably be anticipated. In accordance with this recommendation the transfer was made.

[Stage Direction]
Dealing first with the revenues, may I state that while the fiscal year ended on the 31st of March, the final accounting has not been completed. Consequently, minor changes may later be made in the figures now given.
Last session a number of what are generally known as " nuisance " taxes were abolished, and a substantial reduction was made in the sales tax. These reductions, it is estimated, have decreased our revenues by $20,835,000. There will also be a reduction in the net revenues from customs duties of over $7,600,000.
On the other hand, certain revenue sources show increases. The estimated revenues from the income tax are $9,700,000 in excess of the amount collected a year ago. The post office revenues are estimated at $2,700,000 above last year's; excise duties have increased by $1,295,000, and returns from investments $1,000,000. In all, $378,321,000 is the estimated revenue from taxation, while receipts from other sources are estimated at $61,985,000, thus making the estimated ordinary revenues for the fiscal year $440,306,000. To this should be added special receipts and credits of $7,016,000, making the estimated total of all revenues $447,322,000, as compared with actual revenues of $461,647,000 in the fiscal year 1928-29.
With the permission of the house I place on Hansard a comparative statement of the estimated revenues for the fiscal year 1929-30 and the actual revenues received during the previous fiscal year:
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The Budget-Mr. Dunning

[Stage Direction]
Ordinary Revenue
Taxation Revenue-
Customs Import Duties	
Excise Duties	
War Tax Revenues-
Excise Taxes (Sales, stamps, etc.)..
Income Tax	
Delayed Business Profits Tax...
Miscellaneous Taxes	
Total Revenue from Taxation-
Interest on Investments..
Post Office Revenue	
Dominion Lands and Parks. .
Canada Grain Act	
Miscellaneous Receipts...
Total Ordinary Revenue..
Special Receipts and Credits
German Reparation Payments-
Under Dawes Plan	
Sundry Credits including Canadian Wheat
Board Surplus	
Refunds and credits on account of Previous Years' Expenditure-Adjustment of War
Claims	
Capital Account	
Received from Imperial government in final settlement of outstanding claims and counter claims arising out of the war	
Estimated decrease..
Actual
187,206,332
63.684,954
83,007,283
59,422,323
455,232
2,144,904
395,921,028
12,227,562
30,611,964
4,070,339
2,992,541
9,640,440
455,463,874
4,025,165
Estimated
179,540,000
64.980.000
63,000,000
69.155.000 172,000
1,474,000
378,321,000
13.300.000
33.345.000
4.100.000
1.950.000
9.290.000
789,247 706,296
662,442
461,647,024
440,306,000
4,600,000
173,000
35,000
2,203,000
447,322,000
Increase
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1,295,046
9,732,677
11,027,723
1,072,438
2,733,036
29,661
14,862,858
574,835
173,000
1,501,704
17,112,397
Decrease
7,666,332
20,007,283
283,232 670,904
28,627,751
1,042,541
350,440
30,020,732
754,247
662,442
31,437,421
17,112,397
14,325,024

[Stage Direction]
For the last fiscal year the ordinary expenditures are estimated at $360,050,000 as compared with $350,952,924 actually spent in the previous fiscal year.
$25,342,000 is estimated for expenditures on capital account, all being paid out of the revenues for the year. The more important items are $10,000,000 for the new Welland ship canal, and $6,500,000 for the Hudson Bay railway and terminals. In connection with the St. Lawrence river ship channel, it is estimated that $2,700,000 were spent and, in addition, the construction of regulating and retaining dams in that river cost $400,000. Half a million dollars were spent in improving the harbours at the head of the great lakes, while $1,500,000 is the estimated expenditure on account of the construction of the lower lakes terminals. The other major items under capital
fMr. Dunning.]
account are $1,900,000 spent in constructing new public buildings in Ottawa-Before leaving this phase of our expenditures, may I be permitted to address a brief comment to those who study and compare the public accounts over periods of years. All governments make expenditures on capital account and frequently such undertakings are carried out by the use of borrowed capital. With that practice I find no fault, but may 1 emphasize the fact that in the past seven fiscal years it has been possible to carry out all capital expenditures of the Dominion without borrowing. The 132 millions of dollars thus spent have been provided out of the revenues collected in the usual way. In addition 74 millions have been paid out of revenue in the form of non-active loans to the railways and other publicly-controlled bodies without borrowing for the purpose.

The Budget-Mr. Dunning
Loans and advances of the character just referred to have been made during the year and, being non-revenue producing, are treated as expenditures. Under this head the largest item is §2,933,000 for the deficits of the Canadian National Railways. 81,629,000 was paid to the Canadian Government Merchant Marine, and $862,000 to the Canadian National
(West Indies) Steamships, Limited. The other advance under this head is the sum of $2,821,000 to the Quebec harbour commission.
For the information of hon. members, may I be permitted to place on Hansard a detailed comparison of the estimated expenditures for the last fiscal year with the actual expenditures for the fiscal year 1928-29.

[Stage Direction]
-	Actual 1928-29	Estimated 1929-30	Increase	Decrease. Ordinary Expenditure	$	$	S	$124,989,950	121,750,000	.3,239 9S941,487,323	40,350,000	1,137,32312,553,724	12,497,000	56,724Soldier and General Land Settlement Adminis	1,441,951	1,350,000	91,9518,825,960	9,780,000	954,040	12,876,760	13,300,000	423,240	33,483,058	35,400,000	1,916,942	18,024,061	20,400,000	2,375,939	7,201,566	9,400.000	2,198,434	17,003,254	18,100,000	1,096,746	3,683,256	4,950,000	1,266,744	2,812,900	3,350,000	537,100	1,974,118	2,120,000	145,882	4,986,962	5,380,000	393,038	4,476,131	5,180,000	703,869	1,600,000	1,600,000	Maritime Freight Rates Act:	Due to 20% Reduction in Freight Rates....	2,758,893	2,874,000	115,107	Deficit on Eastern Lines (C.N.R.)	4,418,645	4,527,000	108,355	832,687	1,560,000	727,313	2,189,960	380,000	1,809,96011)819)981	12,420,000	600,019	31,511)784	33,382,000	1,870,216	
Total Ordinary Expenditure		350,952,924	360,050,000	15,432,984	6,335,908
Special Expenditures				
Reparations-				
		6,700,000	6,700,000	
119,848	95,000	24,848Miscellaneous Charges to Consolidated Fund -	2,067,153	2,383,000	315,847	Capital Expenditure	13,680,064	10,249,000	3,431,0646,449,849	6,551,000	101,151	3,385,658	8,542,000	5,156,342	Loans and Advances Non-Active	758,000	1,629,000	871.000	862,000	862,000	2,888,000	2,821)000	67,0002,933,000	2,933,000	
380,301,496	402,815,000	32,372,324	9,858,820
			9,858,820	
			22,513,504	
It has been the practice during the past	penditures, by services, showing, by means of
several years also to place on Hansard a	percentages, their relationship to the whole
statement of the estimated revenues and ex- and, with the consent of the house, this will
The Budget-Mr. Dunning
[Stage Direction]
again be done. In doing so may I be permitted to emphasize the annual burden which still exists, and will continue for many years, on account of the great war. Over 39 per cent of the total expenditures is directly attributable to the war, while receipts from the war taxes represent about 30 per cent of the
revenues. The largest item of expenditure is the interest account which, it will be noted, decreased $3,239,950 during the year. War pensions amounting to thirty-nine millions represent almost 10 per cent of the total expenditure for the year. This statement will now be tabled:

[Stage Direction]
Amount
Percentage of Total Revenue
Ordinary Revenue
Special War Tax Revenue-
Excise Taxes (Sales, Stamps, etc.)...
Income Tax	
Delayed Business Profits Tax	
Miscellaneous Taxes	
Total Special War Tax Revenue
63,000,000 69,155,000 172,000 1,474,000
14-	08
15-	46 0-04 0-33
133,801,000
Customs Import Duties	
Excise Duties	
Total Revenue from Taxation
179,540,000	40-14
64,980,000	14-52
378,321,000
Interest on Investments	
Post Office Revenue	
Dominion Lands and Parks	
Canada Grain Act	
Miscellaneous Receipts	
Total Ordinary Revenue,
13.300.000
33.345.000
4.100.000
1.950.000
9.290.000
7-45
0-44
440,306,000
Special Receipts and Credits German Reparation Payments-
Under Dawes Plan	
Sundry Credits including Canadian Wheat Board Surplus	
Refunds and Credits on account of Previous Years' Expenditure-
Adjustment of War Claims	
Capital Account	
4,600,000	1-03
173,000	0-04
35,000
2,208,000
447,322,000
0-01
ESTIMATED EXPENDITURES For the Fiscal Year 1929-30 By services with percentages of total expenditures
Principal Expenditure attributable to the Great War
Interest on Public Debt (Increase over 1914)	
War Pensions	
Treatment and after care of Returned Soldiers (Pensions & National Health).
Soldier Land Settlement Administration	
Imperial War Graves Commission	
Battlefields Memorials	
Adjustment of War Claims	
Other Fixed and Public Debt Charges
Amount
s
108,857,000
39,000,000
8.757.000
1.350.000
574.000
170.000 95,000
158,803,000
Percentage of Total Expenditure
9-68
0-34
0-04
39-42
Interest on Public Debt (as of 1914)
Other Pensions	
Superannuation	
Subsidies to Provinces	
Expenses of Loan Flotations	
Premium, Discount and Exchange..
12.893.000
1.350.000
1.400.000
12.497.000 18,000 73,000
0-34
3-10
28,231,000
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The Budget-Mr. Dunning
ESTIMATED EXPENDITURES-Concluded
-	Amount	Percentage of total Expenditure
General Expenditure	s	
	1,020,000	0-25
	12,420,000	308
	2,200,000	0-55
	2,330,000	0-58
	2,677,000	0-66
	9,400,000	2-33
	2,750,000	0-68
	1,023,000	0-25
	20,400,000	506
	3,007,000	0-75
	18,100,000	4-49
	1,233,000	0-31
	1,121,000	0-28
	4,950,000	1-23
	3,350,000	0-83
	145,000	004
	2,120,000	0-53
	910,000	0-23
	1,116,000	0-28
	5,150,000	1-28
	605,000	0-15
	224,000	005
	1,466,000	0-36
	13,300,000	3-30
	35,400,000	8-79
	930,000	0-23
	2,523,000	0-63
	5,380,000	1-33
	5,180,000	1-29
	828,000	0-21
	210,000	005
	720,000	0-18
	2,365,000	0-59
Capital Expenditure-	10,249,000	2-54
	6,551,000	1-63
	8,542,000	212
		
	189,895,000	47-14
	376,929,000	93-57
Other Expenditures		
Maritime Freight Rates Act-Estimated amount required-	2,874,000	0-71
	4,527,000	1-13
	1,600,000	0-40
	1,560,000	0-39
	380,000	0 09
	6,700,000	1-66
	2,821,000	0-70
	1,629,000	0-41
	862,000 2,933,000	0-21
		0-73
		
	402,815,000	. 100
		
The revenue and expenditure statements may now be summarized. The ordinary and special receipts amount to $447,322,000. The total expenditures for all purposes amount to $402,815,000, thereby leaving an estimated surplus of revenues over all expenditures of $44,507,000.

[Stage Direction]
During the year two loans fell due and were retired by utilizing surplus revenues available after the expenditures of the Dominion had been met. The first loan to mature was the ten-year 5J per cent loan of 1919. It was for
The Budget-Mr. Dunning
[Stage Direction]
$60,000,000, and fell due in New York on the first of August. Previous to the date of maturity $5,400,000 of these bonds were purchased in the open market and, as a result, a saving of $146,000 in interest was effected. The balance of the loan was redeemed in cash at maturity.
On the 1st of February, 1930, the four-year four and a half per cent $20,000,000 loan issued in 1926 matured, and was paid off out of surplus revenues. The retirement of these two issues, aggregating $80,000,000, creates a new peak in debt retirement, and will result in the saving of $4,200,000 in interest charges this year.
The annual interest charges on outstanding bonds, debentures and treasury bills in the hands of the public now amount to $112,900,000. This is $20,500,000 less than the corresponding interest charges were at the commencement of the fiscal year 1922-23. The reduction has been brought about by savings of $5,100,000 through the refunding of loans at lower interest rates and $15,400,000 by the actual retirement of maturing loans.
Since the 1st of April, 1925, substantial reductions have been made in the outstanding public debt by the redemption of maturing loans, in whole or in part, out of surplus revenues. These retirements, together with the bonds and stock acquired as sinking funds, make a total of $257,800,000 of debt retired out of surplus revenues during the past five years.
For the information of honourable members I now place on Hansard a statement showing the debt retired each year.

[Stage Direction]
Fiscal
Year
1925-	26
1926-	27
1927-	28
1928-	29
1929-	30
Maturing Loans Retired $ 18,571,834 33,000,000 61,759,650 52,167,100 74,577,800
Bonds and Stocks acquired for Sinking Funds $ 3,584,841 3,313,141 3,418,686 3,462,312 4,011,575
Total
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Total during 5 years
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$17,790,555	$257,866,939
At the close of the fiscal year the unmatured funded debt was $2,250,837,336. Of this amount $56,090,000 are held as sinking funds, leaving $2,194,746,563 outstanding in the hands of the public.
The debt financing program of the present year will not be a serious problem. There is one maturing loan. It consists of 4 per cent treasury notes to the amount of $45,000,000, and falls due on December 1st. There is, of course, under consideration the much larger question of re-financing the 1933 and 1934 loans totalling $982,000,000, in order that the Dominion may secure the lowest possible interest charges and at the same time refinance without restricting the money credits necessary for the development of Canada. In
recent years it has been possible to redeem maturing loans out of surplus revenues, thus immediately relieving the Canadian taxpayer. It is obvious .that the large maturities of 1933 and 1934 cannot be met out of surplus revenues. Careful consideration is now being given to the best method of spreading maturity dates of refunding loans and also to the desirability of broadening the application of the sinking fund principle, so that when these major re-financing operations are undertaken the requirements of this decade, as well as the possible problems of the future, will be met in a sound and comprehensive manner.
With the permission of the house, I will now place on record a statement showing the unmatured funded debt held by the public.
[Stage Direction]
The Budget-Mr. Dunning
UNMATURED FUNDED DEBT HELD BY THE PUBLIC Maturing dates by years
Date of maturity	Name of loan	Rate	Where payable	Amount of loan	Amount maturing during year%	$ cts.	S cts.4	45,000,000 00New York.	1931 April 1	Pub. Service Loan 1916.	5	New York-	25,000,000 00	5	52,931,600 00	77 9Hi non no5|	73l32sl150 001Q33 TSTnv 1	5§	446,659,950 001Q24 Nnv 1	5|	511,910,650 00	3i	London	23,467,206 27	525 277 S5fi 27Loan 1915-35	5	'874!000 00New York.	1Q2fi "FVh 1	4 \	40,000,000 001Q37 TW.. 1	5§	236,299,8.50 00	5'	Canada and	90,166,900 00	New York.	326,466,750 001Q28 .Tnl v 1	3	8,071,230 16	3	18,250,000 00	3	10,950,000 00	July 1	C.P.R. Loan	3*	London	15,056,006 66	52,327,236 824$	75,000,000 005	147,001,100 004 \	50,000,000 004\	45,000,000 001Q47 Opt 1	2*	4,888,185 643*	137,058,841 00T .nan 1942-52	5	100,000,000 004	93,926,666 662,250,837,336 39
$ cts.
Payable in Canada	 1,637,254,300 00
Payable in Canada and New York	 136,040,900 00
Payable in New York	 165,874,000 00
Payable in London	 311,668,136 39
2,250,837,336 39
Less Bonds and Stocks of the above loans held as
Sinking Funds	 56,090,772 82
2,194,746,563 57

[Stage Direction]
A brief review will now be made of the financial commitments of the government in the past year in connection with the operations of the Canadian National Railways and Steamships, the several harbour commissions and the Canadian Farm Loan Board. These separately operated bodies receive assistance from the treasury, under the authority of parliament, either directly, in the form of cash loans, or indirectly, by way of the guarantee of securities. The practice, in past years, so far as the public accounts are concerned,
has been to treat cash loans which pay interest as active assets and those that are not interest-producing as non-active assets. The guaranteed securities, which are issued in respect of capital investments, are shown in the balance sheet as indirect liabilities. The same course has been followed this year.
Canadian National Railways
Under the extraordinary business conditions prevailing last fall, particularly with reference to the crop movement, earnings of railways were severely reduced. The accounts of the
[Stage Direction]
The Budget-Mr. Dunning
Canadian National Railways for 1929 show net earnings of $36,389,058 available to pay interest on securities in the hands of the public. Interest charges amounted to $45,258,920, the resulting deficit being $8,869,862. This result reflects not only the loss in revenues due to the causes mentioned, but also the increase in fixed charges resulting from the large necessary expenditures which have been undertaken in recent years on capital account for branch lines, terminals, rolling stock, and other additions and improvements.
Without going into greater detail, it will suffice to say that the government has paid the amount which officers of the company have certified as being the combined net cash deficit for the railway years 1928 and 1929, and which amounted to $2,932,652.91. The amount paid was greater than the actual difference between the system deficit of 1929 and the surplus of 1928, due to the fact that certain items which take their place in the accounts are eliminated when estimating cash requirements, the most important item being the 1929 surplus on the Grand Trunk Western which is now dealt with separately for financing.
The current financial requirements of the Canadian Government Merchant Marine Limited, amounting to $1,628,907.21, mainly for operating deficits, and of the Canadian National (West Indies) Steamships Limited of 8862,389.98, for operating deficits and interest, have also been paid in cash as loans (nonactive) to these corporations. In addition, $4,o26,645 has been paid as a charge on the consolidated revenue fund in respect of the eastern lines, Canadian National Railways, for deficits arising over and above the amount represented by the reductions in tolls under the Maritime Freight Rates Act. The amount, therefore, which the government paid in the past fiscal year as a direct charge on its revenues in respect of these transportation services, is $9,950,595.10, made up as follows: Canadian National Railway
Company	 $2,932,652	91
Canadian Government Merchant
Marine Limited	 1,628,907	21
Canadian National (West Indies)
Steamships	Limited	 862,389	98
Eastern Lines, Canadian National
Railways	 4,526,645	00
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Guaranteed Securities
The guarantee of the Dominion was given in 1929 to bond issues of the Canadian Na-

tional Railway Company, aggregating $120,000.000. There were two issues of $60,000,000 each, one dated July 1, 1929, and the other October 1, 1929, bearing interest at 5 per cent and maturing in forty years, subject to prior redemption. The issues were sold by tender to the highest bidder. The proceeds of these flotations were devoted, in part, to the payment of $40,000,000 of temporary bank loans outstanding at the end of 1928. The remainder has been or will be used for capital purposes as voted in the general railway budget or authorized under special acts relating to the acquisition of railways and construction of branch lines and terminals.
With the permission of the house, I shall place on Hansard a statement indicating the authority under which these borrowings were made and guaranteed, and the amount of securities issued in each case.

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Securities
Authority	issued
Railway Loan Appropriation,
1929-30	 $ 49,656,805 31
Branch Lines Construction,
Special Acts	 8,710,609	60
Toronto Terminals Railway
Act		232,516	03
Canadian National Montreal
Terminals Act	 7,300,000	00
Acquisition of Railways,
Special Acts, 1929:
Quebec, Montreal & Southern Railway	
6,198,645	41Inverness Railway	
387,415	34Kent Northern Railway. .	61,986	45Quebec Oriental Railway, and the Atlantic, Quebec & Western Railway.. ..	3,615,876	49Northern Alberta Railways.	3,409.254	97Repayment $40,000,000 Temporary Loan, 1928, issued under the Appropriation Acts of 1927 and 1928 and the Canadian Northern Income Charge Act, 1928 (refunding)	
40,426,890 40
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Reference should also be made to two other guaranteed issues which fall outside the 1929 railway fiscal year but within that of the government. An issue of $18,000,000 4| per cent Dominion guaranteed bonds of the Canadian National Railway Company matured on February 15, 1930, and was provided for by

The Budget-Mr. Dunning
the issue of a like amount of 5 per cent forty-year bonds, guaranteed under the Canadian National Refunding Act of 1929.
Under legislation passed in 1927, an expenditure not exceeding $10,000,000 was authorized in connection with the establishment by the Canadian National (West Indies) Steamships, Limited, of a mail, passenger and freight steamship service between Canada and the West Indies. The cost of five new ships and the expenses of converting vessels transferred from the merchant marine fleet were financed during construction by bankers' loans. As of March 1, 1930, an issue of five per cent twenty-five
year bonds amounting to $9,400,000 was made and guaranteed, this -being the amount necessary to provide for the capital cost of establishing the service. The temporary bank loans have been paid off. Both these issues were sold by tender to the highest bidder.

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During the fiscal year, the treasury has been called upon to finance capital expenditures of the several harbour commissions, amounting to $10,436,000. Details of the loans made to them are shown in the statement which I now place on record.

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Montreal Harbour Commission. Less matured loan repaid..
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Quebec Harbour Commission.. .. Three Rivers Harbour Commission Chicoutimi Harbour Commission.. Saint John Harbour Commission.. Halifax Harbour Commission.. .. Vancouver Harbour Commission..
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During the year, the Board of Audit, upon direction of the Treasury Board, made investigations into the financial affairs of the various harbour commissions. Reports have been received from the board and tabled in the house. Some recommendations are made, particularly with respect to provision for sinking funds and replacements, which will have the attention of the government and commissions concerned.

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The Canadian Farm Loan Act authorizes the government to provide an initial capital not exceeding $5,000,000 for the operations of the board, and also requires the Dominion to subscribe for capital stock to the extent of five per cent of the loans outstanding. Initial capital paid by the Dominion treasury to the board in 1929-30, the first year of the board's operations, amounted to $2,400,000, and subscriptions to capital stock to $59,023.
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The past fiscal year was marked by a decline of $244,000,000 in the value of our visible exports. In the trade between Canada and the countries of South America there were increases in both imports and exports. There
was a decrease in the unfavourable visible trade balance between Canada and the United States of $35,800,000 during the fiscal year. There was no material change in the trade with Africa, but both imports and exports decreased between Canada and the Asiatic countries. No appreciable increase is to be noted in the imports from either Great Britain or the European countries, but major decreases in transatlantic exports reduced the visible trade balance with that area. In all, the preliminary statistics for the last fiscal year show imports to the value of $1,248,200,000, of which 429 millions entered duty free. The exports were valued at $1,144,900,000, thus leaving an adverse balance in visible trade of $103,300,000.
Canada's largest volume of trade continues to be with the United States. During the year our total imports from that country decreased $20,500,000, as compared with the previous year, while Canada's total exports to the republic increased $15,300,000.
The decrease in exports to the United Kingdom and the European countries is apparently in grains. Total exports to the United Kingdom decreased 148 millions of dollars, but during the period our exports of grain to the United Kingdom decreased by 138 millions
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The Budget-Mr. Dunning
of dollars. The same influences have affected the sales to the continent of Europe. There was, in comparison with the previous year, a decrease of 80 million dollars in the value of our exports to the continent, but the decrease in value of exports of grains amounted to $81,000,000. In consequence, as there are still large quantities of grain available for marketing, it is reasonable to anticipate a gradual readjustment of our trade balance with the United Kingdom and Europe.
In comparing the imports from all countries, a large increase is to be found in the petroleum group, owing to imports of crude petroleum having increased 'by over $13,000,000. Another increase among specific groups was in electrical apparatus where imports expanded by over twelve million dollars. Principal import decreases in specific group sections include the automotive vehicle group which fell off by $28,000,000, and farm implement imports by $10,000,000.
On the export side three groups show material depreciation. Grains were down $243,000,000; flour exports decreased by $20,000,000, and dairy products by $8,000,000. On the other hand, among the increases in exports are: Farm implement exports, which increased by $2,500,000; exports of paper and its products were up $3,000,000; aluminum and its products $6,800,000; copper and its products increased by $11,000,000 and precious metals by nearly twenty-two millions.
A study of the records shows that when cereal crop items are separated, the past year maintained a steady level in volume of exports of goods. It also emphasizes the development in the mining industry, which is demonstrated by a study of the imports of certain classes of mining machinery, which were recently given favourable treatment by this house, and which increased to over $11,000,000 in the period under review.
During recent years the growth in production in agriculture, lumbering, mining and manufacturing, has been supplemented by a new activity which is usually termed tourist business. Various estimates are made as to the money spent by tourists in Canada. Some estimate that it was in excess of $300,000,000 last year. The exact amount does not concern us at the moment, the more important phase being the continued growth of this form of trade and its development to a higher standard. We have magnificent national parks and excellent transportation facilities.

No country in the world has better hotel service than Canada, and each year substantial additions are made. Attention has been directed recently to the sales opportunity represented by this tourist traffic. Is there any reason why trade in quality goods should not be increased? Many commodities can be purchased in Canada more cheaply than in the countries from which the tourists come. The provincial and the municipal authorities, the transportation companies, and the Dominion government may co-operate and bring tourists to the doors of Canadian shops; after that, success depends on the initiative of the retailer and the maker of the goods offered for sale. With this seasonal influx of eighteen million visitors, it should be our aim to develop an extensive market and thus enlarge the benefits of the tourist trade.

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Turning now to taxation matters, in connection first with income tax, it is proposed that the corporation rate of tax shall be paid in respect of undistributed income when such undistributed income is received by a corporation on the sale or winding up of another corporation.
It is also proposed that the corporate rate of taxation shall be imposed on family corporations in respect of the interest therein of non-resident shareholders and also that directors, officers and employees of a Canadian company who reside abroad shall be taxable in respect of the dividend and interest income received from the company.
A further amendment provides for exemption from income tax for bona fide cooperative companies and associations.
Government or other like annuities are to be exempt from income tax to the extent of five thousand dollars.
It is proposed also that an exemption of five hundred dollars each, the same as for dependent children, be granted for dependent parents, grandparents, brothers, sisters, sons and daughters, who are incapable of selfsupport, owing to mental or physical infirmity.
It is also proposed that donations to any church, university, college, school or hospital in Canada shall be treated as deductions from income up to a maximum of ten per cent of the net income of the taxpayer.
All these income tax amendments apply with respect to 1929 income.

The Budget-Mr. Dunning

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A readjustment of the scale of taxation on the sale and transfer of shares is proposed, which will have the effect of materially reducing taxation on shares of low value.
Some hon. MEMBERS:: Hear, hear.


Mr. STEVENS:: We told you you would
do it.


Mr. DUNNING:: 



SALES TAX

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A further major reduction is proposed in the sales tax by reducing it to one-half the present rate. It is estimated that this proposal effects a reduction in taxation of approximately twenty-two million dollars.
These reductions in taxation constitute a further step in the government's policy which has been steadily applied for some years past, of reducing the public debt and at the same time reducing the burden of taxation.

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Regarding trade agreements, I had hoped to be able to announce the definite completion of a trade agreement with Newfoundland, following negotiations which took place in Ottawa with the prime minister of that dominion.
Definite final word, however, has not yet been received from Newfoundland, but I hope before this session is concluded to be able to present the proposed agreement to parliament.
With respect to New Zealand, as already intimated to parliament, the government of Canada has proposed to the government of that dominion that a direct trade agreement be negotiated to supersede the present arrangement.
We hope to be able to arrange for meetings of representatives of both countries in the near future in order to endeavour to reach a mutually satisfactory agreement. In any event, the present arrangement will cease on October twelfth next. Following that date, Canada will extend her full British preference to New Zealand, pending the completion of a direct agreement.

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In connection with the customs tariff, an amendment is proposed relating to excise taxes in foreign countries and the valuation for special or dumping duty.
At present excise taxes are not added to cost in valuing goods for duty which come from Great Britain, and it is proposed to extend this provision to all countries, the produce of which enters Canada under the intermediate or any more favourable tariff.
During the past few years, the Canadian people have had every opportunity to be heard in connection with tariff matters through the establishment of the Tariff Advisory Board. The degree of confidence displayed has steadily grown, as is evidenced by the printed records of public hearings. Gradually in past budgets the effects of this system of public inquiiy have become apparent and the printed reports of the hearings have facilitated the work of the government and of this house.
This budget will extend further than ever before revision of the tariff structure based upon inquiries made by the board.

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Amendments in the wording, structure, and rates of the iron and steel schedules are the results of months of investigation by the Tariff Advisory Board, involving many public sittings and intensive technical research. This inquiry early revealed that many items were obsolete in wording; that many others were lacking in accurate and definite description; that the classification and structure of the schedule had not kept pace with modern developments in metallurgy, manufacturing and merchandising; and that the actual rates, in scores of cases, had lost the relationship, one to another, that once marked them.
Active and intelligent leadership in the prolonged inquiry now ended was given by the Tariff Advisory Board, both at the public hearings, which are now a matter of record, and the private research and investigation which had to go hand in hand with the hearing of evidence. Officers of the board and then experts have won the commendation of the industry for their efficiency and impartiality.
The labours of the Tariff Advisory Board could not have been successful, however, had it not received the active cooperation of all branches of the industry itself. Scores of manufacturers have given ungrudgingly their personal time and the services of their technical officers; importers and jabbers have placed at the disposal of the board their staffs, warehouses and books; laboratory and research experts have been detailed to assist
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the board's own investigators; and no fewer than two hundred different firms, associations and interests participated actively in the weeks of open hearings at which information was being placed on record for parliament and the public.
Various government departments-notably those of National Revenue, Mines and the Bureau of Statistics-rendered valuable assistance.
For the first time in the history of tariff making in Canada, there was publicly presented to the industry a suggested wording for classification purposes, some six thousand copies of which were distributed by the board before the demands of interested parties were „ satisfied. This classification was the subject of a final public hearing at which it was considered, item by item, and at which the board received definite suggestions regarding wording, arrangement and rates of duty.
The iron and steel schedule may be said to rank first in the tariff in length, intricacy and importance. Its relationship to our national life is illustrated by the fact that the industries concerned employ over one hundred and twenty thousand people in over eleven hundred plants with an aggregate annual payroll of about one hundred and seventy million dollars.
In revising the schedule the government has kept in mind first, the national necessity of maintaining an efficient and self reliant iron and steel industry supplying Canadian consumer demand at reasonable prices, and, second, the national desire to facilitate trade, in iron and steel products, with those countries which facilitate export trade from Canada,
These considerations have been kept in mind throughout the schedule but particularly in those sections which cover crude, primary and secondary forms, up to and including the products of the rolling mill. Within this range lie the products of Canada's great basic ferrous industries, as well as many others in the production of which Great Britain excels.
It is proposed to implement the recommendation of the Royal Commission on Maritime Claims with respect to Canadian coal used in the manufacture of iron or steel.
Realizing that Canada is now producing in huge quantities ingots, billets, blooms and slabs of steel, we have adjusted the duties thereon to facilitate the further development

of the native iron and steel industry. At the same time reductions in the British tariff rates are provided on special and heavy forms of iron and steel and on those primary products which Great Britain is equipped to produce. The internal economy of the industry is such that practically the entire incidence of the increases proposed in respect of the primary forms will be absorbed by subsequent processors of those forms, before or by the time they reach the stage of bars and rods, in the case of which, with one material exception, duties have not been raised, but in which, again, very considerable reductions have been made in the British preferential tariff rates.
In the case of structural steel, an effort has been made to adjust the tariff language and rates to the development in Canadian mills, where larger and more varied shapes are now being rolled than ever before; definite provision has been made for certain weights and shapes now rolled in Canada. On heavy structural sections, considerable reduction has been effected in the British preferential rate, thus affording British mills a greater chance for business in this Dominion.
Steel plates are now being rolled in the Dominion and the revised schedule takes cognizance of this fact. Inquiry before the Tariff Advisory Board revealed that the rates formerly effective were out of line with the highly processed character of the product. This inequity within the schedule has been rectified by increases in the intermediate and general tariffs, while opportunity to British mills to participate in the Canadian market, especially in those widths and weights of plates in which they excel, is given by the free listing of such plates under the British preferential tariff.
No changes are proposed as regards black sheets and but one increase, in the general tariff, is suggested on cold rolled steel.
Hot rolled strip is not made in Canada and adjustments in rates are proposed which should divert to Great Britain a large part of the Canadian trade in both light and heavy gauges of this material.
Most flat forms which are coated, dipped or similarly finished are grouped, in the revised schedule, wiith increased rates under the general tariff.
Reductions under all tariffs are proposed on fiat forms which are painted or coated with enamel. In this connection, it should be

The Budget-Mr. Dunning
pointed out that provision is made for a duty on sheets coated with tin (so-called "tinplate") on the same basis as applies to all other coated forms.
The existing provision of duty-free sheets for galvanizing is widened to cover sheets for dipping in any metal, but is so worded as to expire on December thirty-first next, after which all "dippers" of sheets will pay, on their raw materials, rates of duties apportioned to those applying on their finished products.
The rates on corrugated sheets are reduced under all tariffs, while sheets to be used as bases for enamelling, and also blue polished sheets are given lowered rates under the British preferential and intermediate tariffs.
Saw steel is a commodity which Great Britain is eminently fitted to produce. Opportunity is opened to her mills through the rates now proposed on untempered and tempered steels for saw-making, in both of which the spread in favour of British products is materially widened.
Skelp for pipe making is an import of huge proportions. It is not being rolled in Canada and heretofore has enjoyed low rates under all tariffs. In order to encourage Great Britain to supply the Canadian demand, skelp is made free under the British preferential tariff. Parliament is also asked to sanction a provision for higher rates which may be imposed should Canadian mills enter the skelp-making field. Should such higher rates become effective, they are such as to maintain a material spread in favour of skelp from Great Britain and involve the same rate as now applies under the British preference.
The schedule covering pipes and tubes has been reworded and reclassified, a prime object being simplification of the present items. Rates of duties are little altered; duties are imposed on butted tubing and increased on cast iron pipe except under the British preferential tariff.
The wire, spring and chain schedules are reworded and in the revision of rates extensions of the British preference are provided upon such commodities as: wire rope or cable, galvanized wire, covered wire, wire cloth, wire netting, springs for railway vehicles. Wire fencing of certain gauges is made free under the British preferential tariff, as is, also, silent and roller chain.
The machinery section has been reworded and reclassified in a radical manner as regards arrangement, and with certain alterations in 2419-1034
rates. Various generic groupings have been devised, notably: agricultural, mining, lumbering, textile, printing, office, and household machinery, with improved and more orderly sequence of items. In agricultural machinery, all items are made free under the British preferential tariff and such tractors as do not now enter free are reduced under all tariffs. Complete parts of all tractors are reduced under all tariffs. Among the implements now made free under the British preferential tariff, are the following:
Milking machines,
Pasteurizers and dairy equipment,
Ploughs,
Rollers,
Spraying and other horticultural equipment, Hay loaders and tedders,
Grain and hay grinders and crushers,
Potato diggers and planters,
Incubators and brooders,
Hay presses,
Scythes,
Sickles,
Rakes and forks,
Separators,
Fanning mills,
Peaviners,
Cornhuskers,
Windmills,
Electric-power generators.
In mining machinery the items have been revised in accordance with views expressed by both manufacturers and consumers at sittings of the Tariff Advisory Board.
The lumbering machinery items have been redrafted to meet the unanimous views of producers and users, as expressed to the Tariff Advisory Board.
Material reductions under all tariffs have been made in machinery and equipment for use in printing; and the entire list is made free under the British preferential tariff.
In office machinery, reductions under the British preferential tariff are made on pieces of equipment which Great Britain can produce, such as:
Typewriters,
Dictaphones,
Teletypewriters,
Calculating machines.
Under household machinery, there are numerous reductions:	washing machines are
made free under the British preferential tariff and reduced under all tariffs; vacuum cleaners
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and polishers, domestic refrigerators, wringers and sewing machines are reduced under all tariffs.
Under miscellaneous machinery, fire engines and fire extinguishers, equipment for carbonizing lignite coal, for tanning and embossing leather, machinery for the manufacture of fish meal, stock and poultry food and fertilizers, and also equipment for use in the ceramic industries are made free or granted material reductions.
Construction machinery and equipment, such as is used in the making and maintenance of highways is given a definite place in the schedules, is made free under the British preferential tariff and is reduced under all tariffs. Such machinery formerly dutiable and now free under the British preferential rate includes :
Concrete and asphalt road machines,
Cranes,
Shovels,
Back-fillers,
Steam and air-driven pile hammers, Turntables.
All other machinery-including engines and boilers and electrical apparatus-imports of which amount to scores of millions of dollars, and a great part of which is machinery of production, not procurable in Canada, is divided into two classes-made in Canada and not made in Canada; the former group is slightly increased under the general tariff; the latter is reduced under all tariffs and made free under the British preference. Among the machinery and equipment in this latter class which formerly was dutiable and is now made free under the British preferential tariff, are included :
Air compressing machinery,
Cranes and derricks,
Icing and refrigerating machinery,
Metal working machinery,
Pulp and paper mill machinery,
Power pumps and parts,
Steam and other shovels,
Steam boilers,
Internal combustion engines,
Steam engines,
Switches and switchboards,
Spark plugs and magnetos,
Rheostats, controllers and motors,
Fuses and fuse plugs.
Among the miscellaneous iron and steel commodities which will now enter free or under a materially widened British preference are the following:

Nuts and bolts,
Screws,
Tools of precision,
Containers for food products,
Bathtubs and lavatory equipment, Wheelbarrows, trucks, etc,
Drays and sleighs,
Buggies and cutters,
Children's carriages and sleds,
Hand pumps,
Engines for fishing vessels,
Aircraft and aircraft engines,
Guns and rifles,
Steel wool,
Skates,
Needles,
Frames for purses,
Safes,
Mathematical instruments,
Card clothing,
Two-colour printing plates.
Equipment for cooking or heating using coal or wood, gas, electricity or oil, is made free under the British preferential tariff and there are reductions of the British rates on:
Electric light fixtures,
Electric light bulbs,
Lamp shades,
Gas meters,
Flashlights,
Headlights,
Enamelled hollow-ware,
Hollow-ware, plain,
and Tinware for shipping milk or cream.
We have decided to make free of duty under all tariffs a large range of hospital and sick-room supplies, including:
Syringes,
Catheters,
Parts of Anaesthetic apparatus,
All hospital sterilizers,
Surgical suction apparatus,
Chloroform,
Ethyl chloride,
Operating room lights.
The iron and steel schedule is now an entity, compact and orderly, consisting of a single group of three hundred and twenty-five items. I have not attempted to refer in detail to all individual commodities affected, but only those of greatest interest. Details of each item will, of course, be dealt with in committee of ways and means.
Summarizing numerically I may say that under the iron and steel schedule general

The Budget-Mr. Dunning
tariff rates have been reduced on sixty-six items and increased on forty.
Under the intermediate tariff, the reductions number eighty-six, and the increases twenty-four.
Under the British preferential tariff, the rates have been increased in eight cases and reduced, or made free, in one hundred and fifty-two. Prior to this budget the number of items in the iron and steel schedule which were free under the British preferential tariff was ninety-seven; this group of free items has been increased in number to one hundred and seventy.	'

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In revising the customs tariff on fruits and vegetables the government has given serious consideration to the representations of growers and consumers, as presented on several occasions before the Tariff Advisory Board. The irregular nature of the severe competition which Canadian producers frequently face from the earlier-maturing crops of other countries has been weighed in the light of various suggested remedies, most of which were found to have inherent defects, a fact long since recognized by the growers themselves. Seasonal tariffs, for instance, are not applicable to a country such as Canada, with its extremes of distance, latitude and climate.
After careful study of the situation from all angles, we have decided to apply to fruits and vegetables a combination of specific and ad valorem duties; this combination will, it is believed, meet the urgent need of the growers during those periods when they suffer from acute instability of prices and, at the same time, guarantee to consumers, at all seasons of the year, supplies of these products at reasonable prices.
The ad valorem rate on fresh vegetables is retained at thirty per cent under the general tariff and specific minimum duties will be effective, under the general tariff, on all except green peas and green beans.
All fresh vegetables of domestic character are made free of duty under the British preferential tariff.
Some hon. MEMBERS:: Oh, oh.
Mr. DUX'NING: I am glad my hon. friends approve. In taking this action, we have had in mind the growing ability of Bermuda and the West Indies to supply the Canadian market during the Canadian off-season, a possibility which is rendered more feasible than before, now that Canada has her own direct steamship connection with these islands, employing vessels which are specially built for efficient transportation of perishable commodities.
Small increases in the general tariff, accompanied by material reductions in the British preferential rates are made in canned vegetables, while extensions of the existing British preference are provided in dried and desiccated vegetables, extracts, sauces, pastes and soup.
An ad valorem rate of twenty-five per cent has been applied to all fresh fruits of domestic character, imported under the general tariff with specific minimum rates effective under the general tariff.
All fresh fruits are to be granted free entry under the British preferential tariff; here again the government has kept in mind the possibilities of greatly extended trade with Bermuda and the West Indies Islands and has taken another step in the direction commenced two years ago when free entry was accorded bananas imported direct from the islands. So far as possible, Canada desires to purchase from these British islands to the south those fresh fruits which they are capable of supplying to this market.
The free listing of fresh fruits and vegetables has added thirty-two items to the total number in our schedules which are free under the British preferential tariff; the total number of such free items in the entire fruit and vegetable schedule is now forty-nine as against ten immediately prior to this revision. We are confident that this further expression of Canada's desire to develop goodwill and improve trade with Bermuda and the British West Indies will be appreciated and will result in greater opportunity for Canadian exports to those islands.

Following an inquiry by the Tariff Advisory Board into rates upon field beans, it has been decided to increase the intermediate and general tariffs on this product to one and a half cents and two cents per pound respectively. Beans entering under the British preferential tariff will, in the future, be free.

Tea now carries a duty of seven cents per pound under the British preference. It is
The Budget-Mr. Dunning

proposed to make this article of wide general consumption in Canada free under the British preference and also to lower the intermediate rate of duty.



PORCELAIN AND CHINAWARE

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Bearing in mind that porcelain and china-ware bulk very large in our import trade and that Great Britain has long held a high place in quality production of these articles which are necessities in every Canadian household, we have decided to accord free entry under the British preferential tariif to all tableware of china, porcelain, white granite, or iron stone. The general tariff rate on these products has been slightly increased.

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Live animals and meats, other than fresh or canned meats, are to be free under the British preferential tariff and reductions have been made under all tariffs on feeds such as soya bean meal and cotton seed.
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Following the hearing before the Tariff Advisory Board relating to butter, the government has carefully considered the representations of the producers and as a result proposes an increase in rates of duty on butter to four cents British preference, six cents intermediate and seven cents general tariff.

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Consideration has been given to the effects of imports of malt and malt products in displacing the malting in Canada of Canadian barley and it has been decided to increase the general tariff rate on malt and malt extracts, decreasing, at the same time, the rates under the British preferential tariff. The general rates on barley have been increased proportionately.

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Provision has been made for invert sugar at rates proportionate to those on refined sugar.

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The general tariff rate on highly processed belting leather has been increased to the level of the rate now effective on leather belting.

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There have existed in our tariff, for years, many items carrying rates of duty in the

British preferential column, but relating to commodities in which none of the various British countries has been an effective trader, Some of these items represent materials or articles in which, for the present at least, British countries may continue to be more or less ineffective factors; others are clearly of a nature in which a wider preference may be of real value in promoting inter-empire trade.
We have decided, therefore, to make free under the British preferential tariff a further group of fifty items of this class.

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There are certain commodities which are or will become of double significance in Canada's trade with the world, both as imports and exports. On such commodities our policy has been, and is, to avoid extreme rates of duty, and we propose, regarding these products, to maintain in general the existing rates of duty.
It has been decided, however, to embody within the wording of a limited number of items of this class provision for a "countervailing duty" whereby Canada, while not generally raising its schedule rates, imposes upon such products from another country rates equivalent to those imposed by that country upon the identical Canadian product, where these are higher than the rates enumerated in the Canadian tariff schedule. This means that other countries who both buy from and sell to us these commodities, have it in their own power, by reciprocal action on their part, to enable us to reduce duties to the level of the rates stated in our tariff.
Provision for countervailing duty is now made effective in the case of:
Potatoes,
Soups and soup preparations,
Live stock,
Fresh meats,
Cured and pickled meats,
Butter,
Eggs in the shell,
Frozen eggs,
Frozen egg albumen,
Wheat,
Wheat flour,
Oats,
Oatmeal,
Rye,
Cut flowers,
Cast iron pipe.

The Budget-Mr. Dunning
This tariff revision will involve consideration of a total of four hundred and ninety-five separate tariff items.
I purpose at the conclusion of this address to table the resolutions necessary to enable the committee of ways and means to deal with each item.
For the convenience of hon. members arrangements are being made to print a full list of the tariff changes together with rates which were effective on each item until to-day.
The changes in rates are numerous and complex and I have not attempted to refer to all changes in detail. Summarizing numerically the present budget tariff proposals involve under the general tariff, increases in rates on 54 items and decreases on 46; under the intermediate tariff, increases in rates on 35 items and decreases on 98; under the British preferential tariff, increases in rates on 11 items and decreases on 270.
When this revision is completed the Canadian cutoms tariff will consist of 1,188 items of which 589 will be free under the British preference. The changes proposed have the effect of greatly increasing the British preference in the Canadian market.
The importance of this enlargement of the preference is indicated by the fact that Canada imported last year over two hundred million dollars worth of the commodities on which we are now increasing the British preference.
The tariff changes now made are designed to serve what we believe to be the best interests of the Canadian people.
It must never be forgotten that a large and increasing proportion of our producers and manufacturers are vitally interested in the maintenance of friendly markets for their products outside of Canada. Indeed, our national well being depends largely upon exporting freely those commodities which we produce . greatly in excess of our own needs. This budget is frankly framed to enable us to buy more freely from those countries which buy from us most freely those commodities which are of vital importance to us, and in the confident belief that by this means we shall help to develop and stabilize export markets for our surplus products.
Canada will not engage in a tariff war with any country. The world shows at the present time too many examples of disaster following such a course. As a great exporting nation our course must be the contrary one of facilitating trade with those who facilitate trade
with us. Those who raise prohibitive barriers against our products entering their markets must expect that we will extend favour to our own good customers rather than to them.
I speak in no spirit of retaliation. I would much rather extend lower tariff favours to those who extend them to us than to impose prohibitive tariffs in return for like treatment.
Lower tariffs to those who buy most freely from us make for trade extension and wider markets for our products;, while prohibitory duties to meet prohibitory duties generally applied would constantly tend to restrict our export markets.
In studying these trade matters in detail it is evident that more British goods can be sold in this country, having regard to the tariff preference we have granted in the past and which is now being much further extended. Opportunity undoubtedly exists along many lines, but in modern commerce the buyer does not seek the seller. The seller, even with the advantage of the British preference, must seek the buyer in Canada through sales and service organizations comparable with those of his effective competitor.
These tariff favours to those who favour our products are not the result of any bargain with any other country but of an attitude in international relations which we believe to be mutually beneficial and are an expression of the spirit in which Canada will approach the Imperial economic conference in a few months time. In other words we do not intend to meet the other countries of the British commonwealth of nations in a spirit of petty bargaining but rather in the broad spirit of willingness to become in ever increasing measure good customers to those who treat us in like manner. This is the spirit in which we desire to meet all nations, but we believe that within the British community of nations lies the greatest measure of opportunity for mutual development of trade because of our common heritage, kindred institutions and a common patriotism.
The Minister of Finance-On	next
-In Committee of Ways and Means-The following resolutions-
1. Resolved, that it is expedient to amend the Customs Tariff, being chapter forty-four of the Revised Statutes of Canada, 1927, by repealing subsections (c), (d), (e), (i), (1) of section two thereof and by substituting the following therefor:
(c) "hoop, band and strip" when applied to metals mean flat forms not more than fourteen inches in width and less than .1875 inches in thickness;
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The Budget-Mr. Dunning
(d) "in diameter" when applied to pipes and tubes means the actual inside diameter;
(i) "plate" when applied to metals means a rectangle, circle or sketch as cut in a plate mill, more than fourteen inches in width and .1875 inches or more in thickness, with variations from such thickness not exceeding .015 inches;
(1)	"sheet" when applied to metals means a rectangle more than fourteen inches in width and less than a plate in thickness;
2.	Resolved, that the Customs Tariff, being chapter forty-four of the Revised Statutes of Canada, 1927, be amended by repealing subsection two of section six thereof and by substituting the following therefor:
(2)	Excise duties or excise taxes shall be disregarded in estimating the market value of goods for the purposes of special duty when the goods are entitled to entry under the British Preferential Tariff, Intermediate Tariff or any more favourable tariff.
3.	Resolved, that Schedule A to the Customs Tariff, being chapter forty-four of the Revised Statutes of Canada, 1927, as amended by chapter seventeen of the Acts of 1928 and chapter thirty-nine of the Acts of 1929, be further amended by striking thereout tariff items 5, 6, 7, 8, 10, 14, 15, 16, 18, 28a, 36, 37, 38, 47, 49, 50, 52, 53. 56, 57, 58, 59, 60, 60a, 61, Ola, 63a, 67, 69, 83, 83a, 84, 85, 86, 87, 87a, 87b, 88, 89, 90, 90a, 90b, 90c, 90d, 91, 92, 93, 94, 95, 96, 97, 97a, 98, 99, 99a, 100, 101a, lOlaa, 101b,
102, 105, 105a, 106, 109. 141, 148, 149, 167, 168, 183, 200, 202, 207, 235, 235a, 236a, 237, 262, 283, 287, 289, 293, 296, 302, 306, 311, 313, 315a, 344, 344a, 345, 345a, 365, 366, 369, 373, 374, 375, 375a, 375b, 376, 377, 378, 378a, 379, 379a, 380, 381, 382, 383, 384, 384a, 384b, 384c, 385, 386, 387, 387a, 388, 389, 390, 391, 392, 393, 393a, 394, 395, 396, 397, 398a, 399, 400, 401, 402, 403, 403a, 404, 405,	400,	407,	408,	409,	410, 410a,	411,412, 413,	414,	415,	416,	417,	418,	419, 420,	421,422, 423,	424,	425,	426,	427,	428,	429, 430,	431,432, 433,	433a,	434,	435,	436,	437,	438, 438e,	439,
440, 441, 441a, 442, 443, 444, 445, 445a, 445b, 446, 446a, 446b, 446c, 447, 447a, 447b, 448, 48b, 449, 450, 450a, 451, 451a, 452, 453, 453a, 453b, 453c, 453d, 543e, 453f, 453g, 453h, 453i, 453j, 454, 454a, 455, 456, 456a, 457, 458, 459, 460, 460a, 460b, 460c, 460d, 460e, 460f, 461, 461a, 462, 462a, 463, 464, 465, 466, 466a, 467a, 468, 468a, 469, 469a, 469b, 470, 471, 471a, 472, 473, 474, 475, 476, 476a, 477, 478, 478a, 479, 480, 481, 482, 483, 486, 486a, 487, 491, 492, 494, 494a, 498, 502b, 502c, 502d, 506a, 513, 516, 517, 535a, 577, 584a, 588a, 589, 590, 590a, 590b, 590c, 591, 591a, 592, 593, 594, 595, 596, 605, 611b, 636, 637, 649, 650, 650a, 657, 657b, 658, 660, 661, 665, 665a, 670, 670a, 671, 671a, 672, 672a, 676, 677, 688, 689, 689a, 689b, 698a, 706, 716. 719, 722, 725, 726, 729, 730, 736, 737, 745, 746, 748, 749, 751, 767, 770, 775, 780, the several enumerations of goods respectively, and the several rates of duties of customs, if any, set opposite each of said items, and by inserting the following items, enumerations and rates of duty in Schedule A:-
IMr. Dunning. I
Tariff
Item
British
Preferential
Tariff
Intermediate
Tariff
5 Animals, living, n.o.p	
Provided that, if any country imposes upon such animals produced in, and imported from, Canada rates of duty higher than are enumerated in this item, equivalent rates of duty shall be imposed on such animals entering Canada from such coun-
Free
22J p.c.
7
10
wy.
Live hogs	 per pound
Provided that, if any country imposes upon live hogs produced in, and imported from, Canada rates of duty higher than are enumerated in this item, equivalent rates of duty shall be imposed on such hogs entering Canada from such country.
Meats, fresh, n.o.p	per pound
Provided that, if any country imposes upon such goods produced in, and imported from, Canada rates of duty higher than are enumerated in this item, equivalent rates of duty shall be imposed on such goods entering Canada from such country.
Canned meats, poultry or game; extracts of meat and fluid beef, not medicated	
Meats, n.o.p	per pound
Provided that the weight of a barrel of pork for duty purposes shall not be less than two hundred pounds; provided, also, that if any country imposes upon such goods produced in, and imported from, Canada rates of higher duty than are enumerated in this item, equivalent rates of duty shall be imposed on such goods entering Canada from
Free
2 cts.
15 p.c. Free
cts.
2\ cts.
25 p.c. 1J cts.
15
16a
such country.
Tallow	
Beeswax	
Eggs in the shell, per dozen	 [DOT]
Provided that, if any country imposes upon eggs in the shell, produced in, and imported from, Canada rates of duty higher than are enumerated in this item, equivalent rates of duty shall be imposed upon such commodities entering Canada from such country.
Eggs, whole, egg yolk or egg albumen, frozen or otherwise prepared, n.o.p., whether or not sugar or other material be added	
Free Free 2 cts.
10 p.c.
m pc.
n p.c. 2) cts.
25 p.c.
	Present Rates (E. & 0. E.)			
Tariff	Present Tariff Item	British Preferential Tariff	Inter- mediate Tariff	General Tariff25 p.c.	5	15 p.c.	22J p.c.	25 p.c.1J cts.	6	1 cent	1J cents	1$ cents35 cts.	7	2 cents	2\ cents	3| cents27^ p.c. 2 cts.	8 10	17J p.c. 1} cents	25 p.c. If cents	27^ p.c. 2 cents20 p.c. 10 p.c. 3 cts.	14 15 16	15 p.c. 5 p.c. 2 cents	17£ p.c. 7j p.c. 2j cents	20 p.c. 10 p.c. 3 cents30 p.c.	207 711	5 p.c. 15 p.c.	7i p.c. | 17| p.c.	10 p.c. 174 P-c.
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The Budget-Mr. Dunning

Tariff
Item
16b
28a
37
47
50
53 56
Provided that, if any country imposes upon frozen eggs, frozen egg yolk, or frozen egg albumen, produced in, and imported from, Canada rates of duty higher than are enumerated in this item, equivalent rates of duty shall be imposed upon such commodities entering Canada from such country.
Eggs, egg yolk or egg albumen, dried, evaporated, desiccated, or powdered, whether or not sugar or other material be added	
Butter	pep pound
Provided that, if any country imposes upon butter produced in, and imported from, Canada rates of duty higher than are enumerated in this item, equivalent rates of duty shall be imposed upon butter entering Canada from such country.
Tea imported direct from the country of growth and production, and tea purchased in the United Kingdom, when in wrappings, cartons or other packages of more than five pounds weight each	
[DOT] [DOT] [DOT]	per pound
Provided that tea shall be entitled to entry under the British Preferential Tariff upon evidence satisfactory to the Minister that such tea has been produced wholly in the British Dominions, colonies and possessions, and not otherwise.
Compressed yeast, in bulk or mass of not less than
fifty pounds	per pound
Compressed yeast, in packages weighing less than fifty pounds, the weight of the package to be included in the weight for duty	per pound
Yeast cakes, the weight of the package to be included
in the weight for duty	per pound
Beans, n.o.p., per pound	
Buckwheat, per bushel	
Buckwheat meal or flour, per one hundred pounds...
Barley, n.o.p., per bushel	
Cornmeal, per barrel	
Oats, per bushel	
Provided that, if any country imposes upon oats produced in, and imported from, Canada rates of
British
Preferential
Tariff
10 p.c. 4 cts.
Free
Free
Free
Free
Free
Free
Free
Free
Free
Free
Intermediate
Tariff
25 p.c.
6 cts.
9 cts.
21 cts.
5 cts.
5 cts.
11 cent 121 cents 45 cents 221 cents 221 cents 9 cents
Present Rates
General Tariff	(E. & O. E.)			
Present Tariff Item	British Preferential Tariff	Inter- mediate Tariff	General Tariff30 p.e.	711	15 p.e.	17} p.e.	17} p.e.207	5 p.e.	7} P-c.	10 p.e.231	4 cents	5 cents	6 centa7 eta.	18	3 centa	4 centa	4 cents10 eta.	28a	7 centa	10 cents	10 cents3 eta.	36	2 centa	2} centa	3 cents6 eta.	37	4 cents	5 centa	6 cents6 eta.	38	4 cents	5 centa	6 centa2 centa	47	15 cents	22£ cents	25 cents15 centa	49	10 cents	12J cents	15 cents50 centa	50	35 cents	45 cents	50 cents25 cents	52	10 centa	12i cents	15 cents25 cents	53	20 cents	22} cents	25 centa10 centa	56	7 centa	9 cents	10 cents
52
o
o
§
o
co
The Budget-Mr. Dunning
58
60
duty higher than are enumerated in this item, equivalent rates of duty shall be imposed upon oats entering Canada from such country.
Oatmeal and rolled oats, per one hundred pounds-
Provided that, if any country imposes upon oatmeal or rolled oats produced in, and imported from, Canada rates of duty higher than are enumerated in this item, equivalent rates of duty shall be imposed upon oatmeal or rolled oats entering Canada from such country.
Rye, per bushel	
Provided that, if any country imposes upon rye produced in, and imported from, Canada rates of duty higher than are enumerated in this item, equivalent rates of duty shall be imposed upon rye entering Canada from such country.
Rye flour, per barrel	
Wheat, per bushel	
Provided that, if any country imposes upon wheat produced in, and imported from, Canada rates of duty higher than are enumerated in this item, equivalent rates of duty shall be imposed upon wheat entering Canada from such country.
Free
Free
Free
Free
63a
69
79b
84
Wheat flour and semolina, per barrel	
Provided that, if any country imposes upon wheat flour or semolina produced in, and imported from, Canada rates of duty higher than are enumerated in this item, equivalent rates of duty shall be imposed upon wheat flour or semolina entering Canada from such country.
Rice bran	
Macaroni and vermicelli, per one hundred pounds
Hay and straw, per ton	
Flowers, natural, cut, whether in designs or bouquets,
or not	
Provided that, if any country imposes on such goods produced in, and imported from, Canada rates of duty higher than are enumerated in this item, equivalent rates of duty shall be imposed on such goods entering Canada from such country. Potatoes, including sweet potatoes:
(a)	In their natural state	
(b)	Dried, desiccated or dehydrated	
Provided that if any country imposes a duty
on potatoes grown or processed in and imported from Canada, an equal duty shall be imposed on potatoes coming into Canada from such country. Onions, in their natural state, including onions grown with tops, shallots, and onion sets, the weight of the packages to be included in the weight for duty.... I
Free
Free
Free
Free
Free
Free
Free
Free
50 cents
9 cents
45 cents 12 cents
50 cents
171 p.c.
[Stage Direction]
Free
Free
Free
30 p.c.
60 cents
10 cents
50 cents 12 cents
50 cents
17$ p.c.
[Stage Direction]
25 p.c.
Free
Free
57	40 cents	50 cents	60 cents58	7 cents	9 cents	10 cents59	33 cents	45 cents	50 cents60	Free	Free	Free60a	8 cents	12 cents	12 cents61	Free	Free	Free61a	30 cents	50 cents	50 cents63a	12$ p.c.	17$ p.c.	17$ p.c.67	75 cents	$1.00	$1.2569	$1.65	$1.75	$2.00711	15 p.c.	17$ p.c.	17$ p.c.83	Free	Free	Free83a	20 cents	35 cents	35 cts. per cwt.84	15 p.c.	30 p.c.	30 p.c.oo *<1 SO	Free	30 p.c.	30 p.c.
g
30 p.c,
The Budget-Mr. Dunning

Tariff Item		British Preferential Tariff	Inter-
			mediate Tariff
85	Provided that when imported under the General Tariff rate, the duty shall be not less than three-quarters of a cent per pound. Mushrooms and truffles, fresh, dried or otherwise preserved, the weight of the packages to be included in the weight for duty	27* p.c. 27* p.c.86	Provided that when imported under the General Tariff rate, the duty shall be not less than ten cents per pound. Beets for the manufacture of sugar	Free	87	Vegetables, fresh, in their natural state, the weight	of the packages to be included in the weight for duty: (a) Asparagus	Free	Provided that when imported under the General Tariff rate, from April 15 to May 31, inclusive, the duty shall be not less than three cents per pound. (b) Beans, green	Free	27* p.c.(c) Brussels sprouts	Free	27| p.c.(d) Cabbage	Free	27* p.c. 27* p.c.Provided that when imported under the General Tariff rate, from June 15 to January 31, inclusive, the duty shall be not less than one cent per pound. (e) Carrots and beets, n.o.p	Free	Provided that when imported under the General Tariff rate, from June 1 to February 28, inclusive, the duty shall be not less than one cent per pound. (S) Cauliflower and eggplant	Free	27* p.c.Provided that when imported under the General Tariff rate, from May 15 to October 31, inclusive, the duty shall be not less than two cents per pound. (0) Celery	Free	27* p.c.Provided that when imported under the General Tariff rate, from July 1 to Febriuary 28, inclusive, the duty shall be not less than two cents per pound. (h) Cucumbers	Free	27* p.c.Provided that when imported under the General Tariff rate, from June 1 to October 31, inclusive, the duty shall be not less than one cent	
Present Rates
(E. & O. E.)
Present
Tariff
Item
86
87
87
87
87
British
Preferential
Tariff
15 p.o. 1 cent
15 p.c. 15 p.e.
15 p.c. 15 p.c. 15 p.c.
15 p.c.
15 p.c.
15 p.c.	27* p.c.
Intermediate
Tariff
27* p.c. 1* cents
27* p.c. 27* p.c.
27* p.c. 27* p.c. 27* p.c.
27* p.c.
27* p.c
15 p.c.
27* p.c.
General
Tariff
30 p.c.
1* cents
30 p.c. 30 p.c.
30 p.c. 30 p.c. 30 p.c.
30 p.c.
30 p.c.
30 p.c.
30 p.c.
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The Budget-Mr. Dunning
89
91
per pound.	Free
Provided that when imported under the General Tariff rate, from April 1 to October 31, inclusive, the duty shall be not less than one and one-half cents per pound.	
	
	Free
Provided that when imported under the General Tariff rate, from March 1 to May 31, inclusive, the duty shall be not less than one cent per pound.	
Provided that when imported under the General Tariff rate, from May 1 to October 31, inclusive, the duty shall be not less than one cent per pound.	
Provided that when imported under the General Tariff rate, from June 1 to October 31, inclusive, the duty shall be not less than two cents per pound.	
	Free
Seedlings for replanting:	Free
	Free
	Free
Vegetables, prepared, in air-tight cans or other airtight containers, the weight of the containers to be included in the weight for duty: (a) Beans, baked or otherwise prepared, per pound.	Free Free
	1 cent
	Free
Vegetables, prepared or preserved: (a) Dried, desiccated or dehydrated, including	15 p.c.
(b) Pickled or preserved in salt, brine, oil or in any	15 p.c.
(c) Vegetable extracts or juices, liquid mustards,	15 p.c.
(d) Pastes, hash and all similar products, composed wholly of vegetables or of vegetables and	15 p.c.
Soups, soup rolls, tablets, cubes or other soup preparations, n.o.p		15 p.c.
27* p.c.
27* p.c. 27* p.c. 27* p.c.
27* p.c.
27* p.c.
27* p.c. 27* p.c.
Free
Free
Free
11 cents 1* cents 1* cents 27* p.c.
27* p.c.
32* p.c. 32* p.c.
32* p.c. 25 p.c.
30 p.c.	87	15 p.c.	27$ p.c.	30 p.c.30 p.c.	87	15 p.c.	27$ p.c.	30 p.c.30 p.c.	87	15 p.c.	27$ p.c.	30 p.c.30 p.c.	87	15 p.c.	27$ p.c.	30 p.c.30 p.c.	87	15 p.c.	27$ p.c.	30 p.c.30 p.c.	85	20 p.c.	27$ p.c.	30 p.c.30 p.c.	87	15 p.c.	27$ p.c.	30 p.c.30 p.c.	87	15 p.c.	27$ p.c.	30 p.c.Free	711	15 p.c.	17$ p.c.	17$ p.c.Free	711	15 p.c.	17$ p.c.	17$ p.c.Free	87b	Free	Free	Free1$ cents	86	1 cent	1$ cents	1$ cents2 cents	86	1 cent	1$ cents	1$ cents2 cents	86	1 cent	1$ cents	1$ cents30 p.c.	86	1 cent	1$ cents	If cents30 p.c.	711	15 p.c.	17$ p.c.	17$ p.c.87	15 p.c.	27$ p.c.	30 p.c.35 p.c.	88	25 p.c.	32$ p.c.	35 p.c.35 p.c.	88	25 p.c.	32$ p.c.	35 p.c.35 p.c.	86	1 cent	1$ cents	1$ cents8	17$ p.c.	25 p.c.	27$ p.c.123	17$ p.c.	27$ p.c.	30 p.c.27$ p.c.	8	17$ p.c.	25 p.c.	27$ p.c.
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The Budget-Mr. Dunning
\ Dunning.]
[Stage Direction]
Tariff
Item
British
Preferential
Tariff
Provided that, if any country imposes upon such goods produced in, and imported from, Canada rates of duty higher than are enumerated in this item, equivalent rates of duty shall be imposed on such goods entering Canada from such country.
Fruits, fresh, in their natural state, the weight of the packages to be included in the weight for duty:
(a)	Apricots	
Provided that when imported under the
General Tariff rate, from June 15 to August 15, inclusive, the duty shall be not less than one cent per pound.
(b)	Cherries	
Provided that when imported under the
General Tariff rate, the duty shall be not less than two cents per pound.
(c)	Cranberries	
Provided that when imported under the
General Tariff rate, the duty shall be not less than two and one-half cents per pound.
(d)	Peaches	
Provided that when imported under the
General Tariff rate, from July 20 to October 1, inclusive, the duty shall be not less than one and one-quarter cents per pound.
(e)	Pears	
Provided that when imported under the General Tariff rate, from August 1 to December 31, inclusive, the duty shall be not less than three-quarters of a cent per pound.
(J) Plums or prunes. .[DOT]	
Provided that when imported under the General Tariff rate, from July 15 to October 31, inclusive, the duty shall be not less than three-quarters of a cent per pound.
(p) Strawberries, raspberries and loganberries..
Provided that when imported under the General Tariff rate, from June 1 to July 31, inclusive, the duty shall be not less than three cents per pound.
(A) Berries, edible, n.o.p	
Provided that when imported under the General Tariff rate, the duty shall be not less than
Free
Free
Free
Free
Free
Free
Free
Free
General
Tariff
Present
Tariff
Item
Present Rates
(E. & O. E.)
British
Preferential
Tariff
Intermediate
Tariff
General
Tariff
20 p.e.
35 cents
45 cents
50 cents
20 p.c.	95
20 p.o.	96
20 p.c.
11 cents 171 P-c. 67 cents
12 cents 221 P-c. 90 cent3
2 cents 25 p.c. $1.00
[Stage Direction]


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5!
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20 p.c.
35 cents
45 cents
50 cents
20 p.c.
97a
20 cents
20 cents
30 cents
20 p.c.
1J cents
1J cents
2 cents
20 p.c.
90a
11 cents	If cents
Free	Free
2 cent3 Free
The Budget-Mr. Dunning
93 94	two cents per pound. (i) Quinces and nectarines.	 Provided that when imported under the General Tariff rate, the duty shall be not less than one cent per pound. Apples, fresh, in their natural state, the *weight of the packages to be included in the weight for duty.... Provided that when imported under the General Tariff rate, the duty shall be not less than three-fifths of a cent per pound. Grapes, fresh, in their natural state, the weight of the packages to be included in the weight for duty, per	Free Free Free
95	Cantaloups and muskroelons, the weight of the pack-	
	ages to be included in the weight for duty		Free
95a	Provided that when imported under the General Tariff rate, from July 20 to October 31, inclusive, the duty shall be not less than one and one-half cents per pound. Melons, n.o.p., each	Free96	Fruits, fresh, in their natural state, n.o.p	Free97	Plantains, pineapples, pomegranates, guavas and	Free98	Bananas, when imported from the place of growth	by ship, direct to a Canadian port, per stem or	98a	Bananas, n.o.p., per stem or bunch	50 cents.99	Bananas, dried or evaporated, per pound	Free99a	Dates and figs, dried; plums and prunes, dried, un-	pitted; per pound	Free99b	Fruits, dried, desiccated, evaporated or dehydrated,	Free100	Grape fruit, when imported from the place of growth	by ship, direct to a Canadian port, per pound	Free100a	Grape fruit, n.o.p., per pound	\ cent102	Free105	Fruit pulp, with sugar or not, n.o.p., and fruits,	crushed or frozen, per pound	1$ cents105a	Lemon and orange rinds and citron in brine	Free105b	Olives and cherries in brine, not bottled	10 p.c.105c	Fruits and nuts, pickled or preserved in salt, brine,	oil or any other manner, n.o.p	20 p.c.105d	Jellies, jams, marmalades, preserves, fruit pastes,	fruit butters and condensed mince meats, per pound	2| cents105e	Fruits and peels, crystallized, glace, candied or	drained; cherries and other fruits of creme de menthe, maraschino or other flavour	22* p.c.
15 p.c.
15 p.c.
lj cents. 15 p.c.
2* cents. 15 p.c.
Free
50 cents. 50 cents, j cent
f cent
22* p.c.
* oent 1 cent 15 p.c.
2* cents
Free 17* p.c.
32* p.c. 3f cents
35 p.c.
20 p.c.
20 p.c.
2	cents. 20 p.c.
3	cents. 20 p.c.
Free
50 cents. 50 cents. i cent
| cent
25 p.c.
1 cent 1 cent 15 p.c.
3 cents
Free 30 p.c.
35 p.c.
3| cents
35 p.c.
97	35 cents	45 cents	50 cents92	60 cents	90 cents	90 cents100	1} cenls	If cents	2 cents9S	2 cents	2} cents	3 cents98 96	2 cents 17£ p.c.	21 cents 22J p.c.	3 cents 25 p.c.90	Free	Free	Free90c 90d 99a	Free 50 cents Free	50 cents 50 cents i cent	50 cents 50 cents $ cent94 99 93	40 cents i cent 17i p.c.	55 cents i cent 22J p.c.	55 cts. per cwt. f cent 25 p.c.lOlaa 101a 101b	Free 50 cents Free	50 cents $1.00 15 p.c.	SI .00 per cwt. SI.00 per cwt. 15 p.c.96 105 106 91 89 749 88 88	174 P-c. 1$ cents 2J cents Free 20 p.c. 15 p.c. 25 p.c. 25 p.c.	22J p.c. 2\ cents 3f cents Free 274 P-c. 17h p.c. 32| p.c. 32j p.c.	25 p.c. 2J cents 3f cents Free 30 p.c. 20 p.c. 35 p.c. 35 p.c.106	2f cents	3J cents	3f cents141 and 105 106	i cent 22J p.c. 11 cents 2f cents	\ cent 35 p.e. 2i cents 3J cents	J cent 35 p.c. 2| cents 3| cents
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[Stage Direction]
The Budget-Mr. Dunning

Tariff Item	British Preferential Tariff	Inter- mediate Tariff	General Tariff	Pkesent Rates (E. & O. E.)	Present Tariff Item	British Preferential Tariff	Inter- mediate Tariff	General Tariff106	Fruits, prepared, in air-tight cans or other air-tight containers, the weight of the containers to be included in the weight for duty: (a) Apricots, peaches and pears, per pound	If cents	2\ cents	2f cents	105	If cents	2$ cents	2\ cents(b) Pineapples, per pound	£ cent	2§ cents	2f cents	105a	$ cent	21 cents	2\ cents(c) N.o.p., per pound	If cents	2J cents	2f cents	105	11 cents	21 cents	109	Nuts of all kinds, n.o.p., including shelled peanuts, n.o.p., per pound	
Peanuts, green, in the shell or not further processed than shelled, per pound	1 cent	2 cents	2 cents	109	1 cent	2 cents	109a	Free	1 cent	1 cent	109	1 cent	2 cents	2 cents135a	Invert sugar, and syrups the product of the sugar cane or beet, and all imitations thereof or substitutes therefor, not including molasses and not including syrups in receptacles of such size that the gross weight of receptacle and contents does not exceed sixty pounds. When the total of reducing sugars after inversion is equivalent to more than fifty-six per centum, but not more than sixty-five per centum of invert sugar, per one hundred pounds	68 cents	$1.23	$1.23	140	35 cents	45 cents	50 centsWhen the total of reducing sugars after inversion is equivalent to more than sixty-five per centum, but not more than seventy per centum of invert sugar, per one hundred pounds	74 cents	$1.33	$1.33	134 140	35 cents	45 cents	50 centsWhen the total of reducing sugars after inversion is equivalent to more than seventy per centum of invert sugar, per one hundred pounds	83 cents	$1.50	$1.50	134 140	35 cents	45 cents	50 cents139	Glucose or grape sugar, glucose syrup and corn syrup, or any syrups containing an admixture thereof, n.o.p., per one hundred pounds	
Sugar candy and confectionery, n.o.p., including sweetened gums, candied pop-corn, candied nuts, flavouring powders, custard powders, jelly powders, sweetmeats, sweetened breads, cakes, pies, pud-ings and all other confections containing sugar, the weight of the wrappings and cartons to be included in the weight for duty, per pound	40 cents	55 cents	621 cents	134 139	40 cents	55 cents	621 cents141	1 cent	1 cent	1 cent	141	1 cent	1 cent	\ centand	221 p.c.	35 p.c.	35 p.c.	and	22\ p.c.	35 p.c.	35 p.c.148	Cider, not clarified or refined, per gallon	Free	5 cents	5 cents	148	5 cents	5 cents	5 cents149	Cider, clarified or refined, per gallon	Free	10 cents	10 cents	149	10 cents	10 cents	10 cents152b	Grape juice in containers of more than one gallon capacity each	17J p.c.	22\ p.c.	22| p.c.	152	171 p.c.	221 p.c.	22J P-c.1640	COMMONS
The Budget-Mr. Dunning
2419-104	REVISED EDITION
152c
168
The Governor in Council may by Order in Council direct that there be substituted for Tariff Item 152b in Schedule A to the Customs Tariff, the enumeration of goods and the rates of duties of Customs set opposite the said item the following: Grape juice in containers of more than one gallon capacity each:
Testing not more than 1-074 specific gravity at
60 degrees temperature, per gallon	[DOT]
And in addition thereto, for each increment of
0 01 in specific gravity above 1-074	[DOT]
From and after the publication of such Order in Council in the Canada Gazette, Tariff Item 152b, as it appears in the said Schedule at the time of the passing of this Act shall be repealed and the provisions of Tariff Item 152c shall be substituted therefor.
Malt, whole, crushed or ground, and malt flour, n.o.p., upon entry for warehouse subject to excise
regulations, per pound	:
[Stage Direction]
Malt flour containing less than 50 per centum in weight of malt; malt syrup or malt syrup powder; extracts of malt, fluid or not; grain molasses^-all articles in this item upon valuation without British or foreign excise duties, under regulations prescribed by the
Minister, per pound	
and
200
207
208g
232a
235a
236a
Newspapers, or supplemental editions or parts thereof, partly printed and intended to be completed
and published in Canada	*[DOT][DOT][DOT][DOT][DOT]*[DOT]
Pulp of wood, of straw or of any other vegetable hbre
Boot and shoe patterns manufactured of paper	
Blood albumen	
Calcium molybdate when imported by manufacturers of steel for use exclusively in the manufacture of steel, in their own factories, under regulations
prescribed by the Minister	
Gelatin capsules, empty, when imported for use exclusively in the manufacture or compounding of medicinal and pharmaceutical preparations	
Liquorice paste not sweetened	
Liquorice in rolls and sticks, not sweetened	
Paper refills for sputum cups; paper pocket sputum
Celluloid moulded for handles of knives and forks, not bored or otherwise manufactured; moulded celluloid balls and cylinders, coated with tin foil or not, but not finished or further manufactured, and celluloid blanks for lamp shades and for combs.
20 cents	25 cents
3 cents	3 cents
i cent	3 cent
3 cents 25 p.c.	3 cents 30 p.c.
Free Free Free 5 p.c.	22J p.c. 224 p.c. 124 P-c. 7i p.c.
Free	Free
Free Free Free	5 p.c. 15 p.c. 20 p.c.
Free	174 p.c.
Free	7| p.c.
25 cents 3 cents
i cent
3 cents 35 p.c.
25 p.c. 25 p.c. 15 p.c. 10 p.c.
5 p.c.
71 p.c. 171 p.c. 221 p.c.
20 p.c.
10 p.c.
167	45 cents	45 cents	45 cents168	2 cents	2 cents	2 centsand	35 p.c.	35 p.c.	35 p.c.183	15 p.c.	22| p.c.	25 p.c.200	15 p.c.	221 P-c.	25 p.c.202	10 p.c.	121 p.c.	15 p.c.207	5 p.c.	71 p.c.	10 p.c.711	15 p.c.	171 P-c.	171 P-c.232	171 P-c.	25 p.c.	271 P-c.235	10 p.c.	15 p.c.	17! P-c.235a	15 p.c.	20 p.c.	221 P-c.236a	121 P-c-	171 P-c.	20 p.c.237	5 p.c.	71 p.c.	10 p.c.
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The Budget-Mr. Dunning

Tariff Item		British Preferential Tariff	Inter- mediate Tariff
238a	Manufactures of celluloid, viz: hair pins, braid pins, barettes, barette blanks, shoe horns, knitting needles, crochet sets, golf tees; lamp shades, sten-		
cilled or painted	15 p.c.	32J p.c.262	Olive oil, n.o.p	Free	20 p.c.263	Compounds of tetraethyl lead, in which tetraethyl	264a	lead is the preponderant constituent by weight...	Menthol, natural or synthetic	5 p.c.264b	Camphor, natural or synthetic, whether refined or not	Free	276b	Cotton seed and crude cotton seed oil, when imported by manufacturers of cotton seed meal and refined cotton seed oil, for use exclusively in the manufac-	ture of such commodities, in their own factories..	Free	Free283	Drain tiles, not glazed	17£ p.c.287	Tableware of china, porcelain, white granite or ironstone	Free	289	Baths, bathtubs, basins, closets, lavatories, urinals, sinks and laundry tubs of earthenware, stone,	293	cement, clay or other material, n.o.p	
Plaster of Paris, or gypsum, calcined, and prepared wall plaster, the weight of the packages to be included in the weight for duty, per one hundred	20 p.c.	30 p.c.296	pounds	
Flint, ground flint stone; feldspar, crude only; fluorspar; mica schist; cliff, chalk, china or Cornwall stone, ground or unground, refuse stone, not sawn, hammered or chiselled nor fit for flagstone, build-	Free	11 cts.296a	ing stone or paving	Magnesite, crude rock	296b	Magnesite, caustic, calcined, or plastic magnesia...	Free	296c	Magnesite, dead burned or sintered	296d	Feldspar, not further manufactured than ground	302 306	Lithographic stones, not engraved	
Marble, sawn or sand rubbed, not polished; granite, sawn; paving blocks of stone; flagstone and building stone, other than marble or granite, sawn on not more than two sides	Free	17J p.c.Free	20 p.c.General Tariff	Pkesent Rates (E. & O. E.)	Present Tariff Item	British Preferential Tariff	Inter- mediate Tariff	General Tariff35 p.c.	711	15 p.c.	17$ p.c.	17$ p.c.624	20 p.c.	27$ p.c.	30 p.c.419	20 p.c.	27$ p.c.	30 p.c.435	20 p.c.	27$ p.c.	30 p.c.20 p.c.	262	15 p.c.	20 p.c.	20 p.c.10 p.c.	711	15 p.c.	17$ p.c.	17* p.c.10 p.c.	711	15 p.c.	17$ p.c.	17$ p.c.10 p.c.	711	15 p.c.	17$ p.c.	17$ p.c.Free	748	Free	Free	Free71a	5 p.c.	10 p.c.	10 p.c.20 p.c.	283	15 p.c.	17$ p.c.	20 p.c.30 p.c.	287	15 p.c.	27$ p.c.	27$ p.c.35 p.c.	289	20 p.c.	30 p.c.	35 p.c.12$ cts.	293	8 cents	11 cents	12$ centsFree	296	Free	Free	FreeFree	296	Free	Free	Free25 p.c.	711	15 p.c.	17$ p.c.	17$ p.c.17$ p.c.	711	15 p.c.	17$ p.c.	17$ p.c.15 p.c.	296	Free	Free	Free20 p.c.	302	12$ p.c.	17$ p.c.	20 p.c.30 p.c.	306	15 p.c.	20 p.c.	20 p.c.
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The Budget-Mr. Dunning
306a
313
315a
345a
351
351a
351b
352b
354a
366 373
Building stone, other than marble or granite, sawn on more than two sides but not sawn on more than
four sides, per one hundred pounds	
Slate pencils and school writing slates	* * *
Plumbago, not ground or otherwise manufactured.... Carbon "electrodes exceeding thirty-five inches in
circumference or outside measurement	
Zinc dust, strip and sheets; zinc plates for marine boilers; sal ammoniac shimmings and seamless
drawn tubing of zinc	[DOT][DOT][DOT][DOT];	 ,
Zinc spelter and zinc in blocks, pigs, bars or rods;
zinc plates, n.o.p., per pound	
Wire of all metals and kinds, n.o.p	
Wire, single or several, covered with any material,
including cable so covered, n.o.p	* [DOT]
Wire, twisted, braided or stranded, including wire
rope and wire cable, coated or not, n.o.p	
Wire cloth, or woven wire of brass or copper	
Screws of brass, copper or other metal, n.o.p.;
(а)	Wood screws	
(б)	Machine and other screws, n.o.p	
Nickel and aluminum kitchen or household hollowware, n.o.p	
Composition metal and plated metal, in bars, ingots or cores, for the manufacture of watch cases, jewellery, filled gold and silver seamless wire and for
dental purposes	 [DOT] 
[Stage Direction]
Watch actions and movements, and parts thereof, finished or unfinished, including winding bars and
sleeves	
Scrap of iron or steel:
(a)	Wrought, being waste or refuse, to be remelted in furnaces or cupolas	
10 cents
Free
Free
Free
Free
| cent 15 p.c.
20 p.c.
174 p.c. 17| p.c.
224 p.c. 224 p.c.
20 p.c.
Free
Free
Free
375
(b)	Cast, being waste or refuse, to be resmelted in
furnaces or cupolas	
(c)	Railway rails, which have been in actual use
to be remelted in furnaces or to be remanufacturec in rolling mills into other products than iron or steel rails	 [DOT]	
Provided that, articles of iron or steel, damaged in transit, if broken up under Customs supervision, and rendered unsaleable except as scrap may be entered for duty as scrap.
Pig iron, n.o.p., per ton	
Ferro-Alloys:
(a) Spiegeleisen, being an alloy of iron and mangan ese, containing not less than 15 per centum and not more than 30 per centum, by weight, of manganese	
Free
Free
[Stage Direction]
Free
20 cents 224 p.c. 74 p.c.
20 p.c.
Free
1 cent 174 p.c.
274 p c.
224 p.c. 224 P-o.
30 p.c. 30 p.c.
274 p.c.
74 p.c. 124 P-c. Free Free
Free
[Stage Direction]
Free
22} cents	306a	10 cents	15 cents	15 cents25 p.c.	311	15 p.c.	22} p.c.	25 p.c.10 p.c.	313	5 p.c.	7} p.c.	10 p.c.20 p.c.	315a	12} p.c.	20 p.c.	20 p.c.Free	345	Free	Free	Free1 cent	345a	} cent	1 cent	1 cent20 p.c.	406	15 p.c.	17} p.c.	20 p.c.30 p.c.	407	20 p.c.	27} p.c.	30 p.c.25 p.c.	408	17} p.c.	22} p.c.	25 p.c.25 p.c.	418	17} p.c.	22} p.c.	25 p.c.35 p.c.	413	22} p.c.	30 p.c.	35 p.c.35 p.c.	413	22} p.c.	30 p.c.	35 p.c.30 p.c.	428	20 p.c.	27} p.c.	30 p.c.10 p.c.	365	5 p.c.	7} p.c.	10 p.c.12$ p.c.	366	10 p.c.	12£ p.c.	12} p.c.373	Free	Free	FreeFree	374	25 cents	45 cents	50 cents775	Free	Free	FVeeFree	375	$1.50	$2.50	$2.50Free	775	Free	Free	Free$2.50	375	$1.50	$2.50	$2.50Free	1 375b	Free	Free	Free
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[Stage Direction]
The Budget-Mr. Dunning

Tariff
Item
377 377a
377b
377c
British Preferential Tariff
(6J Ferromanganese and silico-manganese, being alloys of iron and manganese containing more than 30 per centum, by weight, of manganese... fcj herro^silicon, being an alloy of iron and silicon, containing not less than 10 per centum and not more than 15 per centum, by weight, of silicon.. (a) 1*erro-sihcon, being an alloy of iron and silicon, containing more than 15 per centum, by weight of silicon	
(e)	Ferro-phosphorous, being an alloy' of iron and
phosphorous, containing more than 15 per centum by weight, of phosphorous	
(f)	Ferro-alloys, crude, for remelting' n.o.p.
bponge iron	
Ingots, of iron or steel, n.o.p., per ton. *.!.'.*.'.
Blooms, cogged ingots, slabs, billets, n.o.p.* 'sheet
bars, of iron or steel, by whatever process made
n.o.p., per ton	
Ingots, cogged ingots, blooms,' slabs,' billets, n.o.p of iron or steel, valued at not less than 3 cents per pound, when imported by manufacturers of steel for use exclusively in the manufacture of steel, in their own factories, under regulations prescribed
by the Minister	
Ingots, cogged ingots, blooms, slabs,' bifle'ts, n.o.p, of iron or steel, of a class or kind not made in Canada, when imported by manufacturers of forgings for use exclusively in the manufacture of forgings, in their own factories, under regulations
prescribed by the Minister, per ton	
Bars and rods, of iron or steel; billets, of iron or steel weighing less than 60 pounds per lineal yard:
(a)	Not further processed than hot rolled, n.o.p
per ton	
(b)	Not further processed than hammered
pressed, n.o.p	
(c)	Cold rolled, drawn, reeled, turned or ground
n.o.p	
(d)	Hot rolled, valued at not less than 4 cents per
pound, n.o.p	
Bars or rods, of iron or steel, including billets weighing less than 60 pounds per lineal yard, hot rolled, as hereunder defined, under regulations prescribed by the Minister:	I
Free
Free
Free
Free
Free
Free
[Stage Direction]
Free
Free
$4.25 15 p.c. 15 p.c. 5 p.c.
Intermediate
Tariff
Free
7] p.c.
10 p.c.
5 p.c.
5 p.c. Free $2.50
[Stage Direction]
Free
[Stage Direction]
$6.00 25 p.c.
25 p.c. 12] p.c.
		Pbesent Rates		
General		(E. & O. E.)		
Tariff	Present	British	Tariff	Preferential	mediate	Item	Tariff	Tariff	TariffFree	375b	Free	Free	375	$1.50	$2.50	$2.507* p.c.	375	$1.50	$2.50	$2.5010 p.c.	375a	$3.00	$4.50	$4.505 p.c.	375	$1.50	$2.50	$2.505 p.c. Free	375	$1.50	$2.50	$2.50$3.00	376	$1.50	$2.25	$2.50$4.50	376	$1.50	$2.25	$2.505 p.c.	376	$1.50	$2.25	$2.50$2.50	376	$1.50	$2.25	$2.50$7.00	378	$4.25	$6.00	$7.0030 p.c.	393	20 p.c.	27* p.c.	30 p.c.30 p.c.	393	20 p.c.	27* p.c.	30 p.c.15 p.c.	393a	17* P.c.	22* p.c.	25 p.c.386	5 p.c.	12* p.c.	12* p.o.
C5>
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[Stage Direction]
b
si

[Stage Direction]
(a)	Rods, when imported by manufacturers of horseshoe nails for use exclusively in the manufacture of horseshoe nails, in their own factories..
(b)	Rods, in the coil, or bars, one and one-eighth
of an inch in diameter and over, when imported by manufacturers of chain for use exclusively in the manufacture of chain, in their own factories, per ton	
(c)	Bars, when imported by manufacturers of
shovels for use exclusively in the manufacture of shovels, in their own factories, per ton	
(d)	Rods, in the coil, not over -375 inch in diameter, when imported by manufacturers of wire for use exclusively in the manufacture of wire, in their own factories, per ton	
Plates, of iron or steel, hot or cold rolled:
(a) Not more than 40 inches in width, n.o.p., per ton	
Free
Free
Free
[Stage Direction]
Free
[Stage Direction]
(b) More than 40 inches in width, n.o.p., per ton.
Free
[Stage Direction]
(c) Flanged, dished or curved, n.o.p	
Sheets, of iron or steel, hot or cold rolled:
(a)	-080 inch, or less in thickness, n.o.p	
(b)	More than -080 inch in thickness, n.o.p., per ton
10 p.c.
74 p.c. $4.25
383
Hoop, band or strip, of iron or steel:
(a)	Hot rolled, -080 inch or less in thickness,
(b)	'Hot roiled,'more than -080 inch in thickness,
n.o.p., per ton	
(c)	Cold rolled or cold drawn, 080 inch or less
in thickness, n.o.p	*[DOT][DOT][DOT].*	[DOT]
(d)	Cold rolled or cold drawn, more than -080 inch,
in thickness, n.o.p	;	
Sheets, plates, hoop, band or strip, of iron or steel:
(a)	Coated with tin, of a class or kind not made in
Canada, n.o.p	
(b)	Coated with tin, n.o.p	
(c)	Coated with zinc, n.o.p	
74 P.c. $4.25 74 p.c. 15 p.c.
Free. 7* p.c. 7J p.c.
(d)	Coated with metal or metals, n.o.p	t..
(e)	Coated with paint, tar, asphaltum or otherwise
coated, n.o.p	
({) Coated with vitreous enamel, n.o.p	
(g) Corrugated, coated or not	
74 p.c.
74 p.c. 15 p.c. 15 p.c.
25 p.c.
124 P-c. $6.00
124 P.c. $6.00 124 P-c. 274 p.c.
5 p.c. 124 p.c. 12} p.c.
124 P-C.
124 P-c. 20 p.c. 20 p.c.
Free

[Stage Direction]
30 p.c.
125 p.c. $7.00
125 p.c. $7.00 15 p.c. 30 p.c.
5 p.c.
15 p.c. 15 p.c.
15 p.c.
15 p.c. 25 p.c. 25 p.c.
729
471a
387a
379a
382 454 379a
382 454 454
382
384
384
384c
384
378a
454
454
Free
Free
[Stage Direction]
$2.00 $2.00 $4.25 20 p.c. $2 00 $2.00 $4 25 20 p.c. 20 p.c.
75 P.c.
$4.25 20 p.c.
75 p.c. $4.25 75 p.c. 20 p.c.
Free
75 p.c. 75 p.c. $4.25 75 p.c.
20 p.c. 20 p.c. 20 p.c.
Free
Free

[Stage Direction]
125 p.c. $6.00 275 P-c.
125 p.c. $6.00 121 p.c. 275 P-c.
5 p.c. 125 p-c. 125 p.c. $7.00 125 p.c.
275 P-C. 275 P-c. 275 P-c-
Free
Free
[Stage Direction]
$3.00 $3.00 $7.00 30 p.c. $3.00 $3.00 $7.00 30 p.c. 30 p.c.
125 P-c. $7.00 30 p.c.
125 p.c. $7.00 125 p.c. 30 p.c.
5 p.c. 125 p.c. 125 p.c. $7.00 125 P-c.
30 p.c. 35 p.c. 30 p.c.
[Stage Direction]
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[Stage Direction]
The Budget-Mr. Dunning

Tariff
Item
British
Preferential
Tariff
Intermediate
Tariff
Skelp, of iron or steel, hot or cold rolled, when imported by manufacturers of pipes and tubes for use exclusively in the manufacture of pipes and tubes, in their own factories, under regulations prescribed by the Minister:
(a) Not more than 14 inches in width	
Free
5 p.e.
386
(b) More than 14 inches in width	
The Governor in Council may by Order in Council direct that there be substituted for tariff item 384 in Schedule A of the Customs Tariff, 1907, and the several rates of duties of Customs set opposite said item in Schedule A, the following:
Skelp, of iron or steel, hot or cold rolled, when imported by manufacturers of pipes and tubes for use exclusively in the manufacture of pipes and tubes, in their own factories, under regulations prescribed by the Minister:
(a)	Not more than 14 inches in width	
(b)	More than 14 inches in width	
From and after the publication of such Order in
Council in the Canada Gazette, tariff item 384 as it appears in said Schedule at the time of the passing of this Act shall be repealed and the provisions of the said tariff item as it appears in the last preceding subsection of this section shall be substituted therefor.
The Governor in Council shall not direct that such provisions be substituted as aforesaid unless and until the Governor in Council is satisfied that skelp of iron or steel, hot or cold rolled, is manufactured in substantial quantities in Canada from iron or steel made in Canada.
Sheets, plates, hoop, band or strip, of iron or steel, hot rolled, valued at not less than five cents per
pound	
Sheets, plates, hoop, band or strip, of iron or steel, as hereunder defined, under regulations prescribed by the Minister:
Free
5 p.c. 5 p.c.
5 p. c.
5 p.c.
10 p.c. 10 p.c.
12] p.c.
General Tariff	Present Rates (E. &0.E.)			
Present Tariff Item	British Preferential Tariff	Inter- mediate Tariff	General Tariff5 p.c.	383	5 p.c.	5 p.c.	5 p.c.746	Free	Free	Free384	7} p.c.	12} p.c.	12} p.c.5 p.c.	383	5 p.c.	5 p.c.	5 p.c.384	7} p.c.	12} p.c.	12} p.c.12} p.c.	12$ p.e.	15 p.c.	386	5 p.c.	12} p.c.	12} p.o.
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The Budget-Mr. Dunning
(a) Plates, when imported by manufacturers for use exclusively in the manufactureor repair of the pressure parts of boilers, pulp digesters, steam accumulators and vessels for the refining of oil,	Free
(b) Sheets, plates, hoop, band or strip, cold rolled, when imported by manufacturers for use exclusively in the manufacture of butts, hinges, typewriters or sewing machines, in their own	Free
(c) Sheets, plates, hoop, band or strip, hot rolled, being mould boards, shares, plough plates, land sides or disc circles, when such rectangles, circles or sketches are cut to shape but not moulded, punched, polished or otherwise manufactured, when imported by manufacturers of agricultural implements for use exclusively in the manufacture of agricultural implements, in their own	Free
(d) Sheets, hoop, band or strip, coated, polished or not, when imported by manufacturers of saddlery hardware for use exclusively in_the manufacture of saddlery hardware, in their own fac-	Free
(e) Sheets, hoop, band or strip, hot or cold rolled, when imported by manufacturers of shovels for use exclusively in the manufacture of shovels, in	Free
(f) Hoop, band or strip, drawn, coated or not, when imported by manufacturers of mats for use exclusively in the manufacture of mats, in their	Free
(g)	Sheets, plates, hoop, band or strip, not tempered or ground nor further manufactured than cut to shape, without indented edges, when imported by manufacturers of saws or straw cutters for use exclusively in the manufacture ol saws or straw cutters, in their own factories.. [DOT] (h)	Sheets, plates, hoop, band or strip, hardened tempered or ground, not further manufacturec than cut to shape, without indented edges, when imported by manufacturerers of saws for use exclusively in the manufacture of saws, in then	Free 5 p.c.
(iJ 'sheets*?hoop, band or strip, when imported by manufacturers for use exclusively in the manu facture of buckle clasps, bedfasts, furniture casters, corset steels, clock springs, shoe shanks phonograph motor springs or ball bearings, lr	Free
Free
71 P.c.
Free
Free
$2.75 5 p.c.
5 p.c.
10 p.c.
Free
Free
Free	380	Free	Free10 p.e.	730	5 p.c.	71 p.c.Free	444	Free	FreeFree	478a	Free	Free$3.00	387a	$2.00	$2.755 p.c.	707	Free	5 p.c.71 p.e.	473	Free	Free12J p.c.	780	71 p.c.	121 P-c.454	20 p.c.	271 P-c.5 p.c.	477	Free	Free
10 p.e.
Free
Free $3.00 5 p.c.
Free
12J P-c. 30 p.c.
Free
>
c©
§
§
The Budget-Mr. Dunning
*
y Tariff e Item B a
^ 386
Sheets, etc.-Concluded
(j)	Hoop, band or strip, being tagging metal,
coated or not, when imported by manufacturers ol shoe and corset laces for use exclusively in the manufacture of shoe and corset laces, in their own factories	
(k)	Sheets, hot or cold rolled, when imported by
manufacturers of hollow-ware coated with vitreous enamel or of apparatus designed for cooking or for heating buildings, for use exclusively m the manufacture of hollow-ware coated with vitreous enamel or of vitreous enamelled sheets ^apparatus designed for cooking or for heating buildings, m their own factories	
(l)	Sheets, cold rolled, blue polished, when imported by manufacturers of apparatus designed for cooking or for heating buildings, for use exclusively in the manufacture of apparatus designed for cooking or for heating buildings, m their own factories	
(m)	Sheets, hoop, band or strip, hot rolled, when
imported by manufacturers for use exclusively m the manufacture of sheets, hoop, band or strip coated with tin, zinc, or other metal or metals m their own factories	
British
Preferential
Tariff
Intermediate
Tariff
Free
Free
Free
387a
in) Hoop, band or strip, hot rolled, -080 inch or less in thickness, when imported by manufacturers for use exclusively in the manufacture of cold rolled iron or steel, in their own factories.. ° non°°^ band or strip, hot rolled, more than [DOT]OSO inch in thickness, when imported by manufacturers for use exclusively in the manufacture of cold rolled iron or steel, in their own factories	
Railway rails, of iron or steel, of any weight or for
any purpose, punched, drilled or not, per ton	
Railway ties, fish-plates, splice bars, rail joints, tie-plates, of iron or steel, per ton	
Free
on and after 5 p.c.
Free
Free
[Stage Direction]
Free
10 p.c.
10 p.c.
Free January 1,1931 71 p.c.
5 p.c.
121 p.c.
[Stage Direction]
General Tariff		Present Rates (E.&O. E.)		
Present Tariff Item	British Preferential Tariff	Inter- mediate Tariff	General Tariff476	Free	Free	476a	Free	Free	722	Free	5 p.c.	5 p.c.5 p.c.	487	Free	Free	Free12$ p.c.	384	7} p.c.	12J p.c.	12$ p.c.12$ p.c.	384	7$ p.c.	12$ p.c.	12$ p.c.Free	384a	Free	Free	Free10 p.c.	10 p.c.	384b	Free	Free	Free20 p.c.	384b	Free	Free	378	$4.25	$6.00	$7.00$7.00	388	$4.50	$6.00	$7.00$8.00	389	$5.00	$7.00	$8.00454	20 p.c.	27$ p.c.	30 p.c.
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£
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[Stage Direction]
o
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The Budget-Mr. Dunning
387b
Railway intersection layouts, intersections, switches, crossings, frogs, guard rails, of iron or steel	
15 p.c.
Iron or steel angles, beams, channels, columns, girders, joists, piling, tees, zees, and other shapes or sections, not punched, drilled or further manufactured than hot rolled, weighing not less than 35 pounds
per lineal yard, n.o.p., per ton	
The Governor in Council may, by Order-in-Council, direct that there be substituted for tariff item 388 in Schedule A of the Customs tariff, 1907, and the several rates of duties of Customs set opposite said item in Schedule A the following: Iron or steel angles, beams, channels,columns, girders, joists, piling, tees, zees, and other shapes or sections, not punched, drilled or further manufactured than hot rolled, weighing not less than one hundred and twenty pounds per lineal yard, n.o.p., per ton..
From and after the publication of such Order-in-Council in the Canada Gazette, tariff item 388 as it appears in said Schedule at the time of passing of this Act, shall be repealed and the provisions of the said tariff item as it appears in the last preceding subsection of this section shall be substituted therefor.
The Governor in Council shall not direct that such provisions shall be substituted as aforesaid unless and until the Governor in Council is satisfied that iron or steel angles, beams, channels, columns, girders, joists, piling, tees, zees, and other shapes or sections weighing less than one hundred and twenty pounds per lineal yard are manufactured in substantial quantities in Canada from steel made in Canada.
[Stage Direction]
388a
Iron or steel shapes or sections, as hereunder defined, not punched, drilled or further manufactured than hot rolled, weighing not less than 35 pounds per lineal yard, viz: I-beams, up to and including 6 inches in depth, but not to include H sections; channels, up to and including 7 inches in depth; angles, up to and including 6 inches by 6 inches; zees, up to and including 6 inches in depth of web, per ton	
[Stage Direction]
388b
Iron or steel angles, beams, channels, columns, girders, joists, piling, tees, zees, and other shapes or sections, not punched, drilled or further manufactured than hot rolled, n.o.p., per ton	
[Stage Direction]
25 p.c.
[Stage Direction]
30 p.c.
[Stage Direction]
20 p.c.
[Stage Direction]
30 p.c.
[Stage Direction]
$4.25	$6.00	$7.00
32J p.c.
[Stage Direction]
§
%
The Budget-Mr. Dunning

Tariff
Item
388c
388d
390 390a 390b
392
Iron or steel beams or joists, not punched, drilled or further manufactured than hot rolled, weighing less than 5] pounds per lineal yard for each inch
in depth of web	
Iron or steel angles, beams, channels, columns, girders, joists, piling, tees, zees, and other shapes or sections, punched, drilled or further manufactured
than hot rolled or cast, n.o.p	
Provided: That upon any article or commodity enumerated in tariff items 377, 377a, 378a, 378b, 378c, 388a, 388b and 388c of this Schedule, not being of greater value than 6] cents per pound, there shall be levied, collected and paid, under regulatiens prescribed by the Minister, in addition to the rates of Customs duties enumerated in such said tariff items, an ad valorem surtax of five per centum when any such said article or commodity contains any one or more of the following:
(a)	Vanadium, 0-15 per centum or more, by weight.
(b)	Molybdenum, 0-15 per centum or more, by weight.
(c)	Nickel, 0-4 per centum or more, by weight.
(d)	Chromium, 0-4 per centum ormore, by weight.
(e)	Tungsten, 0-4 per centum or more, by weight.
(f)	Cobalt, 0-4 per centum or more, by weight.
(g)	Manganese, TO per centum or more, by weight.
(h)	Silicon, 1-0 per centum or more, by weight.
(i)	Any other element, not being iron or carbon, in excess of * 5 per centum by weight.
Castings, of iron, malleable, n.o.p	
Castings, of iron, non-malleable, n.o.p	
Castings, of steel, n.o.p	
Castings, of iron or steel:
(a)	Being ingot moulds for use in the production of
steel	
(b)	Being moulds, n.o.p	
Forgings, of iron or steel, in any degree of manufacture, n.o.p	
Tires, of steel, in the rough, not drilled or machined in any manner, for railway vehicles, including locomotives and tenders	
British Preferential Tariff	Inter- mediate Tariff	General Tariff	Present Rates (E. &O.E.)	Present Tariff Item	British Preferential Tariff	Inter- mediate Tariff	General Tariff5 p.c.	12] p.c.	17] p.c.	377	$4.25	$6.00	$7.0015 p.c.	30 p.c.	35 p.c.	391	22] p.c.	30 p.c.	35 p.c.15 p.c.	25 p.c.	27] p.c.	385	10 p.c.	12] p.c.	15 p.c.453	15 p.c.	25 p.c.	27] p.c.15 p.c.	25 p.c.	27] p.c.	453	15 p.c.	25 p.c.	27] p.c.15 p.c.	25 p.c.	27] p.c.	453	15 p.c.	25 p.c.	27] p.c.Free	Free	Free	456a	Free	Free	FreeFree	7] p.c.	10 p.c.	456	5 p.c.	7] p.c.	10 p.c.20 p.c.	27] p.c.	30 p.c.	3'3	20 p.c.	27] p.c.	30 p.c.379a	$2.00	$2.75	$3.00Free	5 p.c.	7] p.c.	458	Free	Free	Free
a?
re
Co
s
a.
to
§
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[Stage Direction]


395
395a
396a
398
399a
Ailes and axle bars, n.o.p., and axle blanks, and parts thereof, of iron or steel: (a) For railway vehicles, including locomotives and	20 p.c.
(b) For other vehicles, n.o.p		22^ p.c.
	20 p.c.
Sections, of iron or steel, not being ordinary square, flat or round bars, whether forged and punched or not, unfinished, when imported by manufacturers of hames for use exclusively in the manufacture of hames, in their own factories, under regulations Drescribed by the Minister		Free
Blanks, of iron or steel, when imported by manufacturers of milling cutters for use exclusively in the manufacture of milling cutters, in their own factories, under regulations prescribed by the Minister.	Free
Pipe, cast, of iron or steel, valued at not more than five cents per pound, per ton		$5.00
Provided that, if any country imposes upon such goods produced in, and imported from, Canada rates of duty higher than are enumerated in this item, equivalent rates of duty shall be imposed on such goods entering Canada from such country. Pipe, cast, of iron or steel, n.o.p		5 p.c.
Pipes and tubes, of wrought iron or steel, plain or coated: (a) Welded or seamless, with plain or processed ends, not more than 10* inches in diameter, n.o.p.	15 p.c.
(b) Welded or seamless, with plain or processed ends, more than 10i inches in diameter, n.o.p		10 p.c.
(c) Not joined, with plain ends, not more than 2* inches in diameter, n.o.p		5 p.c.
(d) N.o.p		15 p.c.
Pipes and tubes, of steel, seamless, cold drawn, plain ends, valued at not less than five cents per pound,	Free
Pipes, tubes and flues, of wrought iron or steel, with plain, swelled or thickened ends, when imported for use exclusively in the manufacture or repair of pressure parts of boilers, pulp mill digestors and vessels for the refining of oil, under regulations pre-scribed by the Minister		Free
Pipes and tubes, of wrought iron or steel, brass covered, not more than 3 inches in diameter, and brass trimmings, not polished, lacquered or otherwise manufactured, when imported by manufacturers of iron or brass bedsteads for use exclusively in the manufacture of iron or brass bedsteads, in their own factories, under regulations prescribed by the Minister		Free
27* p.c. 30 p.c. 27* p.c.
Free
12* p.c. $9.00
7* p.c.
27* p.c.
15 p.c.
10 p.c. 27* p.c.
5 p.c.
Free
Free
30 p.c. 35 p.c. 30 p.c.	392 392 393	22$ p.c. 22$ p.c. 20 p.c.	30 p.c. 30 p.c. 27$ p.c.	35 p.c. 35 p.c. 30 p.c.Free	478a	Free	Free	Free12$ p.c.	386	5 p.c.	12$ p.c.	12$ p.c.$1000	394	16.00	$7.00	$8.0010 p.c.	394	$6.00	$7.00	$8.0030 p.c.	399 400	15 p.c. 20 p.c.	27$ p.c. 27$ p.c.	30 p.c. 30 p.c.20 p.c.	398a 400	10 p.c. 20 p.c.	15 p.c. 27$ p.c.	15 p.c. 30 p.c.15 p.c. 30 p.c.	397 400 400	Free 20 p.c. 20 p.c.	Free 27$ p.c. 27$ p.c.	Free 30 p.c. 30 p.c.5 p.c.	396	Free	5 p.c.	5 p.c.Free	395	Free	Free	FreeFree	486	Free	Free	Free
s
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►-*
s
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The Budget-Mr. Dunning

Tariff Item		British Preferential Tariff
		
400	Fittings, of iron or steel, of every description for iron	
	or steel pipes and tubes		20 'p.c.
401	Wire, of iron or steel:	
(a)	Barbed fencing, coated or not	
(b)	Twisted, braided or stranded, including wire	Freerope or cable, coated or not, n.o.p	
(c) Drawn flat or cold rolled flat after drawing, coated or not, n.o.p., not more than '25 inch in width and less than -1875 inch in thickness	
(dj Coated with zinc or spelter, curved or not, in coils, *144, *104, or *092 inch in diameter, with tolerance not to exceed -004 inch, and not for	15 p.c.7i p.c.use in telegraph or telephone lines	Free(e)	Coated with zinc or spelter, n.o.p	
(f)	Single or several, covered with any material,	10 p.c.including cable so covered; coated, n.o.p	15 p.c.(g) N.o.p	15 p.c.402	Woven or welded wire fencing, of iron or steel, from wire not more than -144 inch and not less than [DOT]080 inch in diameter, with tolerance not to exceed -004 inch; wire fencing, of iron or steel,	coated or not, n.o.p	Free402a	Woven or welded wire fencing, of iron or steel, coated or not, n.o.p.; wire cloth or wire netting, of iron	or steel, coated or not	15 p.c.403	Wire, of steel: (a) Spring, not less than -40 per centum, by weight, of carbon, -128, -116, -104 and -092 inch in diameter, with tolerance not to exceed -003 inch, when imported by manufacturers of mattresses, cushions or upholstery for use exclusively in the manufacture of mattresses, cushions or upholstery, in their own factories, under regulations	prescribed by the Minister	
(b) Flat or woven flat, in the coil, coated or not, [DOT]064 inch in thickness or thinner, with tolerance not to exceed 002 inch, when imported by manufacturers of corset clasps, steels, wires and dress stays for use exclusively in the manufacture of corset clasps, steels, wires and dress stays, in their own factories, under regulations prescribed	Freebv the Minister	Free [DOT]
General
Tariff
30 p.c. Free 25 p.c.
20 p.c.
Free 20 p.c.
30 p.c.
20 p.c.
15 p.c. 30 p.c.
7} p.c.
7} p.c.
Present Rates (E. & O. E.)
[Stage Direction]
to
Present
Tariff
Item
480
406
404
407 406 406
409
406
British
Preferential
Tariff
20 p.c. Free 17} p.c.
15 p.c. 7J P-c.
Free 15 p.c.
20 p.c. 15 p.c. 15 p.c.
10 p.c. 20 p.c.
Free 15 p.c.
Free
Intermediate
Tariff
271 P-c. Free 221 P.c.
171 p.c. 121 P-c.
Free 171 P-c.
271 P-c. 171 p.c. 171 p.c.
12-1 p.c. 27} p.c.
Free 17} p.c.
Free
General
Tariff
30 p.c. Free 25 p.o.
20 p.c. 12} p.c.
Free 20 p.c.
30 p.c. 20 p.c. 20 p.c.
15 p.c. 30 p.c.
Free 20 p.c.
Free
[Stage Direction]
1
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o
a
[Stage Direction]
The Budget-Mr. Dunning
(c) Valued at not less than 2} cents per pound, when imported by manufacturers of wire rope for use exclusively in the manufacture of wire rope, in their own factories, under regulations prescribed by the Minister	Free	5 p.c.(d) Single, not covered, in coils, for use exclusively in trolling in bona fide deep sea or inland commercial fishing operations	Free	7J p.c.404	Springs, of iron or steel: (a) For the running and draft gear of railway vehicles, including locomotives and tenders	20 p.c.	27* p.c.(b) For the running gear of other vehicles	22* p.e.	30 p.c.405	Springs, of iron or steel, when imported by manufacturers of surgical trusses for use exclusively in the manufacture of surgical trusses, in their own factories, under regulations prescribed by the Minister	Free	Free405a	Springs, of iron or steel, when imported by manufacturers of clocks for use exclusively in the manufacture of clocks, in their own factories, under regulations prescribed by the Minister	Free	7* p.c.406	Coil chain, coil chain links, including repair links, and chain shackles, of iron or steel: (a) One and one-eighth inches in diameter and over	Free	5 p.c.(b) Less than one and one-eighth inches in diameter	15 p.c.	20 p.c.407	Siient chain and finished roller chain, of iron or steel, of a class or kind not made in Canada, n.o.p., either chain of the type which operates over gears or sprockets with machine cut teeth	Free	20 p.c.407a	Chains, of iron or steel, n.o.p	20 p.c.	27* p.c.40$	Malleable sprocket chain and link belting chain, of iron or steel, including roller chain of all kinds for operating on steel sprockets or gears, when imported by manufacturers of agricultural implements for use exclusively in the manufacture of agricultural implements, in their own factories, under regulations prescribed by the Minister	Free	Free409	Cream separators and steel bowls therefor	Free	Free409a	Milking machines and attachments therefor; centrifugal machines for testing butterfat, milk or cream; pasteurizers for dairying purposes; complete parts of all the foregoing	Free	10 p.c.409b	Cultivators, harrows, seed-drills, horse-rakes, horse-hoes, scufflers, manure spreaders, garden seeders, weeders, and complete parts of all the foregoing..	Free	7* p.c.409c	Ploughs; farm, field, lawn or garden rollers; soil packers; complete parts of all the foregoing	Free	10 p.c.409d	Mowing machines, harvesters, either self-binding or without binders, binding attachments, reapers, harvesters in combination with threshing machine	7} p.c.	403a	Free	Free	Free10 p.c.	406	15 p.c.	17} p.c.	20 p.c.30 p.c.	392	22} p.c.	30 p.c.	35 p.c.35 p.c.	392	22} p.c.	30 p.c.	35 p.c.Free	474	Free	Free	Free10 p.c.	434	7} p.c.	10 p.c.	10 p.c.5 p.c.	410	Free	5 p.c.	5 p.c.20 p.c.	410a	15 p.c.	20 p.c.	20 p.c.25 p.c.	454	20 p.c.	27} p.c.	30 p.c.30 p.c.	454	20 p.c.	27} p.c.	30 p.c.Free	411	Free	Free	FreeFree	459	Free	Free	Free10 p.c.	448	5 p.c.	10 p.c.	10 p.c.7} p.c.	446	Free	7} p.c.	7} p.c.10 p.c.	446b 448	5 p.c. 5 p.c.	10 p.c. 10 p.c.	10 p.c. 10 p.c.
The Budget-Mr. Dunning

Tariff Item		British Preferential Tariff	Inter- mediate Tariff
			
	separators including the motive power incorporated therein, and complete parts of all the fore-		6 p.c. 10 p.c. 10 p.c.
409e	Spraying and dusting machines and attachments therefor, including hand sprayers, for farm purposes only; fruit or vegetable grading machines and attachments therefor; apparatus specially designed for sterilizing bulbs; pressure testing apparatus for determining maturity of fruit; pruning hooks; pruning shears; and complete parts of all the fore-		
409f	Hay loaders, hay tedders, potato planters, potato diggers, fodder or feed cutters, ensilage cutters, grain crushers and grain or hay grinders for farm purposes only, post hole diggers, snaths, stumping machines and all other agricultural implements or agricultural machinery, n.o.p., and complete parts of all the foregoing	Free	409g	Incubators for hatching eggs, brooders for rearing young fowl, and complete parts of all the foregoing	Free	10 p.c.409b	Hay presses and complete parts thereof	Free	10 p.c.409i	Scythes, sickles or reaping hooks, hay or straw knives, edging knives, hoes, pronged forks, rakes,	15 p.c. 10 p.c.409j	Fanning mills; peaviners; corn husking machines; threshing machine separators, including wind stackers, baggers, weighers and self-feeders therefor; complete parts of all the foregoing	Free	409k	Windmills and complete parts thereof, not including shafting	Free	17] p.c.409 1	Traction ditching machines (not being ploughs) for use in ditching for tile drains on farms, valued by retail at place of production, when new, at not more than $5,000 each, and complete parts thereof	Free	Free409m	Internal combustion traction engines for farm purposes, valued at not more than fourteen hundred dollars each; traction attachments designed and imported to be combined with automobiles in Canada for use as traction engines for farm purposes; and complete parts of all the foregoing	Free	FreeGeneral Tariff	Present Rates (E. & O. E.)	Present Tariff Item	British Preferential Tariff	Inter- mediate Tariff	General Tariff6 p.c.	445	Free	6 p.c.	6 p.c.10 p.c.	448	5 p.c.	10 p.c.	10 p.c.10 p.c.	448	5 p.c.	10 p.c.	10 p.c.453	15 p.c.	25 p.c.	27$ p.c.10 p.c.	448	5 p.c.	10 p.c.	10 p.c.15 p.c.	453	15 p.c.	25 p.c.	27$ p.c.20 p.c.	449	10 p.c.	15 p.c.	20 p.c.10 p.c.	447b	5 p.c.	10 p.c.	10 p.c.448	5 p.c.	10 p.c.	10 p.c.17J p c.	446c	12$ p.c.	17$ p.o.	17$ p.o.Free	446a	Free	Free	FreeFree	447a	Free	Free	Free
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The Budget-Mr. Dunning
409n
409o
410a
410b
410c
Portable engines with boilers, in combination, for farm purposes; horse powers and traction engines for farm purposes, n.o.p.; and complete parts of all
the foregoing	
Equipment for generating electric power for farm purposes only, viz.: engine, gas tank, generator, storage battery, and switchboard; and complete parts of
all the foregoing	
Car loading machines and complete parts thereof for
use exclusively for loading coal into box cars...
Face loading machines, shaker trough or belt trough conveyors, air engines, flame-proof enclosed driving motors, of a class or kind not made in Canada, and integral parts of all motive power or machinery mentioned in this item, for use exclusively at the
face in mining operations	
M achinery and apparatus for use exclusively in washing or dry cleaning coal at coal mines or coke plants; machinery and apparatus for use exclusively in producing coke and gas; machinery and apparatus for use exclusively in the distillation or recovery of products from coal tar or gas; and complete parts of all the foregoing, not to include motive power, tanks for gas, nor pipes and valves 10| inches or
less in diameter	[DOT]	
Machinery and apparatus and complete parts thereof for use exclusively in producing unrefined oil from shales, not to include motive power, of a class or kind not made in Canada	
Free
Free
Free
Free
7h p.c.
Free
410d
410e
410f
410g
Well-drilling machinery and apparatus, and complete parts thereof, of a class or kind not made in Canada, seamless iron or steel tubing over four inches in diameter for use exclusively in drilling for water, natural gas and oil, and in prospecting for
minerals, not to include motive power	
Well-drilling machinery and apparatus and complete parts thereof, and rope twenty-one hundred feet and over in length, capable of drilling wells of two thousand feet and over in depth, of four inches and over in diameter, and of raising and lowering casing over four inches in diameter for such wells, for use exclusively in drilling for water, natural gas and oil, and in prospecting for minerals, not to
include motive power	
Machinery and appliances of iron or steel, of a class or kind not made in Canada, and elevators, and machinery of floating dredges, for use exclusively in
alluvial gold mining	
Articles for use exclusively in the metallurgy or smelting of iron, viz.:	machinery and apparatus
for sintering or nodulizing iron ore, concentrated or not, or flue dust; machinery and apparatus for use
Free
5 p.c.
Free
10 p.c.
10 p.c. Free
10 p.c.
10 p.c. Free
Free
5 p.c. Free
15 p.c.	447	121 p.c.	171 P.c.	171 P.c.10 p.c.	448	5 p.c.	10 p.c.	10 p.c.Free	453i	Free	Free	Free121 p.c.	460f	Free	10 p.c.	12| P-c.121 p.c.	460b	71 p.c.	10 p.c.	121 P-c.Free	469b	Free	Free	FreeFree	469	Free	Free	Free5 p.c.	469a	5 p.c.	5 p.c.	5 p.c.Free	461	Free	Free	Free
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[Stage Direction]
The Budget-Mr. Dunning
[Hr. Dunning.]
Tariff
Item
4I0h 41 Oi
410j
410k
410m
British
Preferential
Tariff
exclusively in the construction, equipment and repairs of blast furnaces for smelting iron ore, such machinery and apparatus to include hot blast stoves and burners, blast piping and valves connecting the blowing engines with the furnace, scale cars, charging and hoisting apparatus, blast furnace gas piping, cleaners and washers; and integral parts of all the foregoing, but not to include wrought iron pipe or valves 10J inches and under
in diameter, nor structural iron work	
Equipment and integral parts thereof for distributing
stone dust in mines	
Miners' rescue appliances, designed for emergency use in mines, where artificial breathing is necessary in the presence of poisonous gases, including high pressure oxygen pumps for use exclusively in connection with such appliances, and automatic resuscitation apparatus for artificial breathing to aid in the saving of human life, and integral parts
of all the foregoing	
Miners' acetylene lamps and complete parts thereof; miners' safety lamps and complete parts thereof; accessories for cleaning, filling, charging, opening and testing miners' lamps; battery renewal preparations for miners' electric safety lamps; all for use
exclusively in mines	
Machinery and apparatus, of a class or kind not made in Canada, for use exclusively in handling ore and other materials to be charged into the blast furnace, from the dock, car or stock pile, at the smelting
works	
Ore crushers, rock crushers, stamp mills, grinding mills, rook drills, percussion coal cutters, coal augers, rotary coal drills, n.o.p., and complete parts of all the foregoing, for use exclusively in mining, metallurgical or quarrying operations	
Diamond drills and core drills, not including motive power, and electrically operated rotary coal drills, of a class or kind not made in Canada, and integral parts of the foregoing, for use exclusively in mining operations	
Free
Free
Free
Free Free 10 p.c. Free
General Tariff	Present Rates (E. & O. E.)			
Present Tariff Item	British Preferential Tariff	Inter- mediate Tariff	General Tariff5 p.e.	460c	Free	5 p.c.	5 p.c.10 p.c.	689b	Free	5 p.c.	10 p.c.Free	689a	Free	Free	FreeFree	460c	Free	Free	FreeFree	460d	Free	Free	Free20 p.c.	453c	10 p.c.	15 p.c.	20 p.c.Free	460	Free	Free	Free
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2419-105	REVISED EDITION
410n Diamond drills and core drills, not including motive power, and electrically operated rotary coal drills, n.o.p., and integral parts of the foregoing, for use
exclusively in mining operations	
410o Coal cutting machines, n.o.p.; coal heading machines; electric or magnetic machines for concentrating or separating iron ores; automatic scales for use with conveyors; and integral parts of all the foregoing, for use exclusively in mining or metallurgical operations	
Free
Free
410p
410q 41 Or 410s
410t
410u
410v
Sundry articles of metal as follows, for use exclusively in mining and metallurgical operations, viz.: furnaces for the smelting of ores; converting apparatus for metallurgical processes in metals; machinery for the extraction of precious metals by the chlorination or cyanide processes, not to include pumps, vacuum pumps or compressors; blast furnace blowing engines for the production of pig iron;
and integral parts of all the foregoing	
Pumps and vacuum pumps, and complete parts thereof, for use exclusively in the extraction of precious metals by the chlorination or cyanide
processes	
Power driven reciprocating pumps and complete parts thereof, designed for normal working heads of 400 feet and over, for use exclusively underground in
mines	_.
Amalgam safes; automatic ore samplers; automatic feeders; retorts; mercury pumps; pyrometers ; bullion furnaces; amalgam cleaners; and integral parts of all the foregoing, for use exclusively in
mining or metallurgical operations	
Blowers, of iron or steel, of a class or kind not made in Canada, for use in the smelting of ores, or in reduction, separation or refining of metals, ores or minerals; rotary kilns, revolving roasters and furnaces of metal, of a class or kind not made in Canada, designed for roasting ore, mineral, rock or clay; furnace slag trucks and slag pots, of a class or kind not made in Canada; and integral
parts of all the foregoing	 *
Blowers, of iron or steel, n.o.p , for use in the smelting of ores, or in reduction, separation or refining of metals, ores or minerals; rotary kilns, revolving roasters and furnaces of metal, n.o.p., for use in the roasting of ore, mineral, rock or clay; furnace slag trucks and slag pots, n.o.p.; and integral parts of
all the foregoing	
Buddies, vanners, slime or concentrating tables and integral parts thereof, for use in mining and metallurgical operations	
Free
15 p.c. 15 p.c.
Free
Free
15 p.c. Free
10 p.c.
Free
Free
17J P-c. 25 p.c.
Free
Free
17J p.c. Free
10 p.c.	460	Free	Free	FreeFree	460	Free	Free	Free437	20 p.e.	27* p.c.	30 p.c.Free	460	Free	Free	Free20 p.e.	460	Free	Free	Free27* p.c.	453	15 p.c.	25 p.c.	27* p.c.Free	460	Free	Free	FreeFree	462	Free	Free	Free20 p.c.	453	15 p.c.	25 p.c.	27* p.c.Free	677	Free	Free	Free
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The Budget-Mr. Dunning

Tariff Item		British Preferential Tariff	Inter- mediate Tariff
			
410w	Machinery, n.o.p., for the concentration or separation of ores, metals or minerals, viz: flotation machines, flotation cells, oil feeders and reagent feeders for flotation machines and flotation cells, pumps, vibrating and impact screens, jigs, magnetic separators, magnetic pulleys and filters, for use in the concentration or separation of ores, metals or minerals, and integral parts of all the foregoing	15 p.c.	17£ p.c.410x	Machinery, furnaces and appliances, of a class or kind not made in Canada, and integral parts thereof, for use in the refining of metals, and for the production of anodes, cathodes, blocks, slabs, pigs or ingots, in such refining processes	Free	Free410y	Heavy duty mine hoists, of a size and capacity not made in Canada	Free	5 p.c.410z	Machinery and apparatus, n.o.p., and complete parts thereof, for the recovery of solid or liquid particles from flue or other waste gases at metallurgical or industrial plants, not to include motive power, tanks for gas, nor pipes and valves 10| inches or less in diameter	7] p.c.	10 p.c.411	Machinery for use in sawing lumber, up to but not including the operation of planing, and complete parts thereof, not to include motive power, when for use exclusively in saw mills, (for the purpose of this item motive power is defined as equipment for driving the machinery of the saw mill)	10 p.c.	15 p.c.411a	Machinery, logging cars, cranes, blocks and tackle, wire rope, but not including wire rope to be used for guy ropes or in braking logs going down grade, and complete parts of all the foregoing, for use exclusively in the operation of logging, such operation to include the removal of the log from stump to skid way, log dump, or common or other carrier..	10 p.c.	15 p.c.411b	Cylinder stave saws, wheel type stave jointers, crozing and champhering machinery, when for use exclusively in making staves	10 p.c.	15 p.c.412	Machinery, being newspaper printing presses, of not less value by retail than $1,500 each, of a class or kind not made in Canada	Free	FreeGeneral Tariff	Present Rates (E. & 0. E.)	Present Tariff Item	British Preferential Tariff	Inter- mediate Tariff	General Tariff20 p.c.	453g	10 p.c.	15 p.c.	20 p.c.Free	453	15 p.c.	25 p.c.	27J P-c.10 p.c.	453h	10 p.c.	15 p.c.	20 p.c.12i p.c.	460b	7i p.c.	10 p.c.	12£ p.c.20 p.c.	453b	10 p.c.	15 p.c.	20 p.c.20 p.c.	453b	10 p.c.	15 p.c.	20 p.c.20 p.c.	453	15 p.c.	25 p.c.	p.c.453b	10 p.c.	15 p.c.	20 p.c.Free	443	Free	Free	Free
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The Budget-Mr. Dunning
2419-105J
412a
Machinery and apparatus, n.o.p., viz.: printing presses and type-making accessories therefor; electrotyping and stereotyping machines; gun and mould apparatus for making press rollers; lithographic presses; offset presses; book-binding machines; embossing machines; engraving machines; photo-engraving apparatus; machines and apparatus for transferring by photographic processes to plates or rolls for use in lithography, rotogravure and printing; machines for graining metal plates; machines for sensitizing metal plates; machines for addressing and wrapping newspapers, magazines, periodicals, pamphlets, and catalogues: machines for bronzing, creasing, scoring, cutting, perforating, punching, gathering, gumming, pasting, jogging, numbering, patching, slitting, re-winding, ruling, sheet-piling, stitching, stripping or varnishing; all the above, including repair parts but not including saws, knives and motive power, when for use exclusively by printers, bookbinders, paper converters and by manufacturers of articles made from paper or cardboard	
Free
412b
412c
413a
414a
Flat-bed cylinder printing presses, to print sheets of a size 25 x 38 inches or larger, and complete parts thereof; machines designed to fold or sheet-feed paper or cardboard, and complete parts thereof... Typecasting and typesetting machines and parts
thereof for use in printing offices	
Machinery and apparatus, of a class or kind not made in Canada, and parts thereof, specially constructed for preparing, manufacturing, testing or finishing yarns, cordage, and fabrics made from textile fibres or from paper, imported for use exclusively by manufacturers and scholastic or charitable institutions in such processes only	
Machinery, of a class or kind not manufactured in Canada, for use in the manufacture of nets or netting for the fisheries, when imported by manufacturers for use exclusively in the making of such nets or netting, in their own factories, but not for use in making nets or netting commonly used for sportsmen's purposes	
Typewriters and complete parts thereof	
Dictating, transcribing and cylinder shaving mi-chines and complete parts thereof, including cylinders and unfinished wax blanks	
Free
Free
Free
Free 10 p.c.
10 p.c.
414b
Automatic teletypewriters and complete parts thereof	
10 p.c.
5 p.c.
5 p.c. Free
5 p.c.
5 p.c. 20 p.c.
20 p.c.
20 p.c.
10 p.c.
10 p.c. Free
10 p.c.
10 p.c. 25 p.c.
25 p.c.
25 p.c.
453
441
468a
441a
711
Free 15 p.c.
Free
Free
Free
Free 17* P-c.
20 p.c. 15 p.c.
15 p.c.
5 p.c. 25 p.c.
5 p.c. Free
5 p.c.
5 p.c. 22* p.c.
27* p.c. 17* p.c.
25 p.c.
10 p.c. 27* p.c.
10 p.c. Free
10 p.c.
10 p.c. 25 p.c.
30 p.c. 17* p.c.
27* p.c.
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The Budget-Mr. Dunning
Tariff Item	British Preferential Tariff	Inter- mediate Tariff	General Tariff	Present Rates (E. & O. E.)	Present Tariff Item	British Preferential Tariff	Inter- mediate Tariff	General Tariff414c	Adding, bookkeeping, calculating and invoicing machines and complete parts thereof, n.o.p	15 p.c.	20 p.c.	25 p.c.	657	17J P-c.	221 p.c.	25 p.c.415	Electric vacuum cleaners and attachments therefor; hand vacuum cleaners; and complete parts of all the foregoing, including suction hose, n.o.p	\2\ p.c.	20 p.c.	25 p.c.	519	20 p.c.	271 P-c.	30 p.c.415a	Refrigerators, domestic or store, of all kinds, completely equipped or not	121 p.c.	20 p.c.	25 p.c.	619 362 519	20 p.c. 221 P-c. 20 p.c.	30 p.c. 30 p.c. 271 P-c.	35 p.c. 35 p.c. 30 p.c.415b	Washing machines, domestic, with or without motive power incorporated therein; complete parts of washing machines	Free	15 p.c.	25 p.c.	453 453	15 p.c. 15 p.c.	25 p.c. 25 p.c.	271 P-c. 271 P-c.415c	Clothes wringers, domestic, and complete parts of metal thereof	10 p.c.	15 p.c.	25 p.c.	660	20 p.c.	30 p.c.	321 P-c.415d	Sewing machines, with or without motive power incorporated therein; complete parts of sewing machines	10 p.c.	15 p.c.	25 p.c.	440	20 p.c.	27£ p.c.	30 p.c.415e	Sewing machine attachments	Free	Free	Free	671	Free	Free	Free416	Machinery and apparatus and complete parts thereof, including machinery and apparatus for carbonizing lignite coal, but not including motive power, when imported by manufacturers of fuel briquettes for use exclusively in the manufacture of fuel briquettes, in their own factories, under regulations prescribed by the Minister	Free	Free	Free	462a	Free	Free	Free417	Machinery of every kind and complete parts thereof, and structural iron and steel, when imported for use exclusively in the construction and equipment of factories for the manufacture of sugar from beet root, under regulations prescribed by the Minister.	Free	Free	Free	453 463	15 p.c. Free	25 p.c. Free	271 P-c. Free418	Machinery and complete parts thereof, when imported by manufacturers for use exclusively in the manufacture of fish meal, stock and poultry food and fertilizers from fish and waste thereof, in their own factories, under regulations prescribed by the	Free	15 p.c.	20 p.c.	467a	Free	Free	Free419	Machinery and complete parts thereof, of a class or kind not made in Canada, when imported by manufacturers of metal keys for the opening of cans containing food products for use exclusively in the	453	15 p.c.	25 p.c.	271 P-c.
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The Budget-Mr. Dunning
manufacture of such keys, in their own factories, under regulations prescribed by the Minister	Free	15 p.o.420	Machinery and complete parts thereof, of a class or kind not made in Canada, when imported by manufacturers of leather for use exclusively in the tanning of leather or the embossing of leather, in their own factories, under regulations prescribed by the Minister	Free	U p.o.421	Machinery and complete parts thereof, of a class or kind not made in Canada, viz: blungers, vibrating sifters or lawns, pugging machines, slip pumps, wet or dry pans, clay disintegrators, ball mills, clay wheels, pull-downs, batting-out machines, when imported by manufacturers of clay products for use exclusively in the manufacture of clay products, in their own factories, under regulations prescribed by the Minister	Free	7$ p.c.422	Street or road rollers and complete parts thereof	10 p.o.	20 p.c.422a	Concrete road-paving machines, self-propelling, end loading type, with a capacity of 21 cubic feet of wet concrete or more; concrete and asphalt road finishing machines; form graders; sub-graders; cement guns; cranes, shovels, drag-lines, pull-shovels, skimmers and other excavating and material handling machines and equipment of a full-revolving type; trench and ditch excavating machines, round wheel or vertical or ladder boom, chain and bucket type, for digging vertical or sloping bank ditches; back filling machines and equipment, mounted on self-propelling wheels or crawling traction, semi, or full-revolving boom and scraper type; steam or air driven pile hammers or extractors; well-points; truck turntables; all the foregoing of a class or kind not made in Canada, and complete parts thereof	Free	10 p.c.423	Electric dental engines	Free	15 p.c.424	Fire engines and other fire extinguishing machines; hand fire extinguishers; sprinkler heads for automatic sprinkler systems for fire protection; complete parts of all the foregoing, n.o.p	Free	15 p.c.425	Lawn mowers and complete parts thereof	15 p.c.	25 p.c.426	Ozone generators or airAers and complete parts thereof, of a class or kind not made in Canada	Free	5 p.c.427	All machinery composed wholly or in part of iron or steel, of a class or kind not made in Canada, n.o.p., and complete parts thereof	Free	15 p.c.427a	All machinery composed wholly or in part of iron or steel, n.o.p., and complete parts thereof	15 p.e.	25 p.c.428	Traction engines and complete parts thereof, n.o.p...	Free	10 p.c.428a	Automobile engines and complete parts thereof,	15 p.c.	25 p.c.
20 p.c.
27} p.c.
10 p.c.
10 p.c. 20 p.c.
12} p.c. 20 p.c.
25 p.c. 30 p.c.
10 p.c.
20 p.c.
30 p.c. 15 p.c.
27} p.c.
453	15 p.c.	25 p.c,453	15 p.c.	25 p.c.453	15 p.c.	25 p.c.448b	12} p.c.	20 p.c.453	15 p.c.	25 p.c.453a	15 p.c.	27} p.c.439	22} p.c.	30 p.c.450a	20 p.c.	30 p.c.453j	Free	5 p.c.453	15 p.c.	25 p.c.453	15 p.c.	25 p.c.453	15 p.c.	25 p.c.453	15 p.c.	25 p.c.
27} p.c.
27} p.c. 20 p.c.
27} p.c. 27} p.c.
35 p.c. 32} p.c.
10 p.c.
27} p.c.
27} p.c. 27} p.c.
27} p.c.
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The Budget-Mr. Dunning

Intermediate
Tariff
s ^1 d Tariff 5 Item 5 §* w		British Preferential Tariff
		
428b	Engines or boilers, of a class or kind not made in	
	Canada, and complete parts thereof, n.o.p		Free
428c	Engines or boilers and complete parts thereof, n.o.p.	
429	Cutlery of iron or steel, plated or not:	
	(a) Knife blades or blanks, and table forks, of iron	
	or steel, in the rough, not handled, ground or	
	otherwise manufactured		Free
	(b) Table knives and table forks		20 p.c.
	(c) Pen knives, jack-knives and pocket-knives of	
	all kinds		
	(d) Knives, n.o.p		20 p.c.
	(e) Spoons		
	(f ) Scissors and shears, n.o.p		20 p.c.
	(g) Razors and razor blades		20 p.c.
430	Nuts and bolts with or without threads, washers,	
	rivets, of iron or steel, coated or not; nut and bolt	
	blanks, of iron or steel; per one hundred pounds...	50 cts.
	and	10 p.c.
430a	Hinges and butts, of iron or steel, coated or not; hinge	
	and butt blanks, of iron or steel; per one hundred	
	pounds		
	and	10 p.c.
430b	Screws, of iron or steel, coated or not:	
	(I) Wood screws		15 p.c.
	(II) Machine and other screws, n.o.p		15 p.c.
430c	Wire roofing nails of all sizes and wire nails one inch	
	or more in length, of iron or steel, coated or not, per	
	one hundred pounds		40 cts.
430d	Cut nails, of iron or steel, coated or not, per one	
	hundred pounds		30 cts.
430e	Wire nails less than one inch in length, and nails, brads	
	or tacks of all kinds, n.o.p., of iron or steel, coated	
	or not		
430f	Railway spikes, of iron or steel, coated or not	20 p.c.430g	Spikes, of iron or steel, coated or not, n.o.p	20 p.c.431	Shovels and spades, of iron or steel, n.o.p	10 p.c.431a	10 p.c.431b	Adzes, anvils, vises, cleavers, hatchets, saws, augers,	bits, drills, files, rasps, screwdrivers, planes.	
15 p.c. 25 p.c.
7* p.c. 27* p.c.
27* p.c. 27* p.c. 27* p.c. 27* p.c. 27* p.c.
50 cts. 20 p.c.
75 cts. 27* p.c.
25 p.c. 25 p.c.
55 cts. 45 cts.
30 p.c.
30 p.c. 30 p.c.
15 p.c. 15 p.c.
Present Rates (E. & O. E.)
General
Tariff
20 p.c.
30 p.c.
10 p.c. 30 p.c.
30 p.c. 30 p.c. 30 p.c. 30 p.c. 30 p.c.
75 cts. 25 p.c.
75 cts. 30 p.c.
30 p.c. 30 p.c.
60 cts. 50 cts.
30 p.c.
30 p.c. 30 p.c.
20 p.c.
20 p.c.
Present
Tariff
Item
453
426
426
426
412
and
412 and 454
413 413
414
417 414 417 414 450 449
British
Preferential
Tariff
15 p.c. 15 p.c.
5 p.c. 20 p.c.
20 p.c. 20 p.c. 22* p.c. 20 p.c. 20 p.c.
75 cents 10 p.c.
75 cents 10 p.c. 20 p.c.
22* p.c. 22* p.c.
40 cents 30 cents
40 cents 20 p.c.
30 cents. 20 p.c.
30 cents 10 p.c.
10 p.c.
Intermediate
Tariff
25 p.c. 25 p.c.
7* p.c. 27* p.c.
27* p.c. 27* p.c. 30 p.c. 27* p.c. 27* p.c.
75 cents 20 p.c.
75 cents 20 p.c. 27* p.c.
30 p.c. 30 p.c.
55 cents 45 cents
55 cents 30 p.c. 45 cents 30 p.c. 45 cents 15 p.c. 15 p.c.
General
Tariff
27* p.c. 27* p.c.
10 p.c.
30 p.c.
30 p.c. 30 p.c. 35 p.c. 30 p.c. 30 p.c.
75 cents 25 p.c.
75 cents 25 p.c. 30 p.c.
35 p.c. 35 p.c.
60 cents 50 cents
60 cents 35 p.c. 50 cents 35 p.c. 50 cents 20 p.c. 20 p.c.
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spokeshaves, chisels, mallets, metal wedges, wrenches, sledges, hammers, crowbars, cantdogs, and track tools, picks, mattocks and eyes or polls tor the same	
15 p.c.
431c
432 432a
432b
432c
432d
434
436
438
439 439a
Precision tools, viz.:	combination squares, slide
calipers, micrometers, depth thickness or screw pitch gauges, rules, and measuring tapes of metal.. Hollow-ware, of iron or steel, coated ornot, n.o.p . Kitchen and dairy hollow-ware of iron or steel, coated with tin, including cans for shipping milk
or cream, not painted, japanned or decorated....
Hollow-ware, of iron or steel, coated with vitreous
enamel	
Containers manufactured from tin-plate, when imported by manufacturers of food products for use exclusively in the hermetical sealing of food products, in their own factories, under regulations
prescribed by the Minister	
Manufactures of tinplate, painted, japanned, decorated
or not, and manufactures of tin, n.o.p	
Baths, bathtubs, basins, closets, lavatories, urinals, sinks, and laundry tubs of iron or steel, coated or
Locomotives and motor cars, for railways, and chassis, tops, wheels, and bodies for the same, n.o.p Locomotives and motor cars for railways, of a class or kind not made in Canada, for use exclusively m
mining or metallurgical operations	*
Locomotives and railway passenger, baggage and freight cars, being the property or under the control of railway companies in the United States, running upon any line or road crossing the frontier, so long as Canadian locomotives and cars are admitted free under similar circumstances into the United States, under regulations prescribed by the
Minister	;	*
Locomotives, cars and coaches and repair equipment, belonging to railroads, brought temporarily into Canada for the purpose of clearing obstructions, fighting fires or making emergency repairs on railway lines within Canada	
Railway cars and parts thereof, n.o.p	
Bicycles and tricycles, n.o.p	
Articles, of iron or steel, wholly or in part of nickel or electro-plated, when imported by manufacturers of bicycles or tricycles for use exclusively in the manufacture of bicycles or tricycles, in their own factories, under regulations prescribed by the Minister	
15 p.c. 10 p.c.
10 p.c. 10 p.c.
10 p.c. 15 p.c.
10 p.c. 15 p.c.
10 p.c.
15 p.c. 20 p.c.
15 p.c.
27$ p.c.
25 p.c. 27$ p.c.
17$ p.c. 27$ p.c.
22$ p.c. 22$ p.c.
25 p.c. 30 p.c.
15 p.c.
Free
Free
27$ p.c. 27$ p.c.
27$ p.c.
30 p.o.
30 p.o. 30 p.c.
20 p.c. 35 p.c.
25 p.c. 25 p.c.
35 p.c. 35 p.c.
20 p.c.
Free
Free
30 p.c. 30 p.c.
454a	15 p.c.	27$ p.c.454	20 p.c.	27$ p.c.657	17$ p.c.	22$ p.c.428	20 p.c.	27$ p.c.344a	12$ p.c.	17$ p.c.454	20 p.c	27$ p.c.427	20 p.c.	27$ p.c.344	15 p.c.	22$ p.o.344	15 p.c.	22$ p.c.289	20 p.c.	30 p.c.438	22$ p.c.	30 p.c.438e	10 p.o.	15 p.c.595	-	Free438	22$ p.c.	30 p.c.593	20 p.c.	27$ p.c.593	20 p.c.	27$ p.c.594	20 p.c.	27$ p.c.751	' 20 p.c.	27$ p.c.
30 p.c. 30 p.c.
25 p.c. 30 p.c.
20 p.c. 30 p.c. 35 p.c.
25 p.c. 25 p.c.
35 p.c. 35 p.c.
20 p.c.
Free
35 p.c. 30 p.c. 30 p.c. 30 p.c.
30 p.c.
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The Budget-Mr. Dunning

Tariff
Item
439b 439c 439d 439e 439f 440
440a
440b
440c
440d
440e
440f
Cars, n.o.p., wheelbarrows, trucks, road or railway
scrapers and hand carts	
Farm wagons, farm sleds, logging wagons, logging
sleds, and complete parts thereof	
Freight wagons, drays, sleighs, n.o.p., and complete
parts thereof	
Buggies, cutters,carriages, pleasure carts and vehicles,
n.o.p.; complete parts of all the foregoing	
Children's carriages, sleds and other vehicles; complete parts of all the foregoing	
Ships and other vessels built in any foreign country, if British registered since Sept. 1, 1902, on application for licence to engage in the Canadian coasting trade; on the fair market value of the hull, rigging, machinery, boilers, furniture and appurtenances thereof, (as provided in part XVI of the Canada
Shipping Act.)	
Vessels, dredges, scows, yachts, boats and other water-borne craft, built outside of Canada, of any material, destined for use or service in Canadian waters (not including registered vessels, entitled to engage in the coasting trade, nor vessels in transit between Canada and any place outside thereof) n.o.p.; on the fair market value of the hull, rigging, machinery, boilers, furniture, and appurtenances
thereof, on arrival in Canada	
Provided that regulations may be prescribed by the Minister for exemption from further duty after the duty specified in this item is once paid. Life boats and life saving apparatus specially imported by societies to encourage the saving of
human life	
Racing shells when imported by a bona fide amateur rowing club in Canada for use exclusively by such
club	
Anchors for vessels	
Wire rope for use exclusively for rigging of ships and vessels, under regulations prescribed by the Minister	
Iron or steel masts, or parts thereof; iron or steel angles, beams, knees, plates and sheets; cable chain; all the foregoing for ships and vessels, under regulations prescribed by the Minister	
British
Preferential
Tariff
15 p.c. Free Free Free 10 p.c.
15 p.c.	25 p.c.
Free	Free
Free	25 p.c.
Free	Free
Free	Free
Free	Free
Intermediate
Tariff
27} p.c. 10 p.c. 25 p.c. 10 p.c. 25 p.c.
25 p.c.
General Tariff	Present Rates (E. & O. E.)			
Present Tariff Item	British Preferential Tariff	Inter- mediate Tariff	General Tariff30 p.c.	362	22} p.c.	30 p.c.	35 p.c.593	20 p.c.	27} p.c.	30 p.c.10 p.c.	591	5 p.c.	10 p.c.	10 p.c.25 p.c.	591a	17§ p.c.	25 p.c.	25 p.c.15 p.c.	592	22} p.c.	30 p.c.	35 p.c.30 p.c.	592	22} p.c.	30 p.c.	35 p.c.25 p.c.	589	25 p.c.	25 p.c.25 p.c.	590	15 p.c.	25 p.c.	25 p.c.Free	689	Free	Free	Free25 p.c.	590b	5 p.c.	25 p.c.	25 p.c.Free	455	Free	Free	FreeFree	403a	Free	Free	FreeFree	470	Free	Free	Free
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[Stage Direction]
The Budget-Mr. Dunning
440g
440h 440i
440j
440k
440m
441a
441b
Manufactures of iron, brass or other metal, of a class or kind not made in Canada, for use exclusively in the construction or equipment of ships or vessels,
under regulations prescribed by the Minister...
Chronometers and compasses, and parts thereof, including cards therefor, of a class or kind not made
in Canada, for ships or aircraft	
The following articles and materials when imported by manufacturers of automatic gas buoys and automatic gas beacons, for use in the manufacture of such buoys and beacons, for the Government of Canada, for marine signal purposes or for export, under regulations prescribed by the Minister, viz.: iron or steel tubes over sixteen inches in diameter; flanged and dished steel heads made from boiler plate, over five feet in diameter; hardened steel balls, not less than three inches in diameter; acetylene gas lanterns and parts thereof; and tobin
bronze in bars or rods	
Trawls, trawling spoons, fly hooks, sinkers, swivels, sportmen's fishing bait and fishing hooks, n.o.p.. Engines and complete parts thereof, to be used exclusively in the propulsion of boats or in hoisting nets and lines used in such boats bona fide owned by individual fishermen for their own use in the fisheries, under regulations prescribed by the
Minister	;	; [DOT]
Aircraft and complete parts thereof, not including engines, under regulations prescribed by the
Minister	
Engines and complete parts thereof, when imported for use only in the equipment of aircraft	
Guns, rifles, including air guns and air rifles not being toys; muskets, cannons, pistols, revolvers, or other firearms; cartridge cases, cartridges, primers, percussion caps, wads or other ammunition, n.o.p.; bayonets, swords, fencing foils and masks; gun or pistol covers or cases, game bags, loading tools and
cartridge belts of any material	
All tools and machinery not manufactured in Canada up to the required standard necessary for any factory to be established in Canada for the manufacture of rifles for the Government of Canada,
under regulations prescribed by the Minister....
All materials or parts in the rough, unfinished, and screws, nuts, bands and springs, to be used in rifles to be manufactured at any factory, to be established in Canada for the manufacture of rifles, for the Government of Canada, under regulations prescribed by the Minister	
Free
Free
Free 20 p.c
Free
10 p.c.
Free
On and 10 p.c.
10 p.c.
Free
Free
Free
Free
Free 25 p.c.
12J p.c.
25 p.c.
7i p.c.
after July 1, 25 p.c.
27J p.c. Free
Free
				
Free	470	Free	Free	FreeFree	369	Free	Free	FreeFree	465	Free	Free	Free30 p.c.	422	22$ p.c.	30 p.c.	35 p.c.15 p.c.	453e	10 p.c.	12$ p.c.	15 p.c.275 p.c.	590a	15 p.c.	25 p.c.	27$ p.c.10 p.c. 1930. 27$ p.c.	590c Od and	Free after July 1, 15 p.c.	7$ p.c. 1930 25 p.c.	10 p.c. 27$ p.c.30 p.c.	424	20 p.c.	27$ p.c.	30 p.c.Free	464	Free	Free	FreeFree	464	Free	Free	Free
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The Budget-Mr. Dunning
[Mr. Tariff	British	Inter- mediate Tariff	General Tariff	Present Rates (E. & O. E.)	Item	Tariff	Present Tariff Item	British Preferential Tariff	Inter- mediate Tariff	General Tariff441c	Steel imported by manufacturers for use in their own factories in manufacturing rough unfinished parts of rifles, when such parts are to be used in rifles to be made for the Government of Canada, under regulations prescribed by the Minister	Free	Free	Free	725	Free	441d	Gun barrels, in single tubes, forged, rough-bored...	Free	Free	Free	726	Free	442	Articles which enter into the cost of manufacture of the goods enumerated in tariff items 409a, 409b, 409c, 409d, 409e, 409f, 409g, 409j, 409o, and 439c, when imported by manufacturers for use exclusively in the manufacture in their own factories of the goods enumerated in tariff items 409a, 409b, 409c, 409d, 409e, 409f, 409g, 409j, 409o, and 439c, under regulations prescribed by the Minister	5 p.c.	6 p.c.	6 p.c.	445a	442a	Provided that goods which are entitled to free entry or to a lower rate of duty than is mentioned in this item shall not be entered at the rate specified in this item. Pig iron or hot rolled iron or steel, when imported by manufacturers for use exclusively in the manufacture, in their own factories, of the goods enumerated in tariff items 409a, 409b, 409c, 409d, 409e, 409f, 490g, 490j, 409o, and 439c, under regulations prescribed by the Minister	Free	Free	Free	445b	Free	442b	Materials which enter into the construction and form part of cream separators when imported by manufacturers of cream separators for use exclusively in the manufacture of cream separators, in their own factories, under regulations prescribed by the Minister	Free	Free	Free	472	442c	Articles of metal when imported by manufacturers of cream separator parts for use exclusively in the manufacture of cream separator parts, in their own factories, under regulations prescribed by the Minister	Free	Free	Free	745	Free	443	Apparatus designed for cooking or for heating buildings: (1) For coal or wood	Free	22| p.c.	25 p.o.	451	15 p.o.	22! P-c.	25 p.c.(2) For gas	Free	22§ p.c.	30 p.e.	451	15 p.c.	22\ p.c.	(3) For electricity	Free	22\ p.c.	25 p.c.	453	15 p.c.	27f P-c.(4) For oil	Free	22! P-o.	25 p.e.	451	15 p.c.	22\ p.c.	25 p.c.d>) N.o.p	Free	22| p.c.	25 p.c.	451	15 p.c.	22\ p.c.	25 p.c.
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The Budget-Mr. Dunning
443a
443b
443c
443d
444a
444b
445a
445b
445c
445 d
445e
445f
445g
Electric tumbler and rotary switches and electric relay switches for automatic oven control, when imported by manufacturers of electric apparatus designed for cooking or for heating buildings, for use exclusively in the manufacture of electric apparatus designed for cooking or for heating buildings, in their own factories, under regulations prescribed
by the Minister	
Parts, when imported by manufacturers of electric switches for use exclusively in the manufacture of electric tumbler and rotary switches and electric relay switches for automatic oven control, for use on electric apparatus designed for cooking or for
heating buildings	
Compensating thermometers or mercnry thermometers, of a class or kind not made in Canada, when imported by manufacturers of apparatus designed for cooking or for heating buildings, for use exclusively in the manufacture of apparatus designed for cooking or for heating buildings, in their own factories, under regulations prescribed by the Minister	
Stove urns of metal, and dovetails, chaplets and hinge tubes of tin, when imported by manufacturers of apparatus designed for cooking or for heating buildings, for use exclusively in the manufacture of apparatus designed for cooking or for heating buildings, in their own factories, under
regulations prescribed by the Minister	
Gas meters, and complete parts thereof	
Gas, coal oil or other lighting fixtures and appliances, n.o.p., including tips, burners, collars and galleries; gas mantles and incandescent gas burners; complete parts of all the foregoing	
Lamp shades, n.o.p., and shade holders	
Electric light fixtures and appliances, n.o.p., and
complete parts thereof	
Electric head, side and tail lights; electric torches or
flashlights	
Electric arc lamps and incandescent electric light
lamps, n.o.p	
Electric telegraph or telephone apparatus and complete parts thereof	
Electric wireless or radio apparatus and complete
parts thereof	
Electric and galvanic batteries, n.o.p., and complete
parts thereof	
Electric dynamos or generators and transformers,
n.o.p., and complete parts thereof	
Electric motors, n.o.p., and complete parts thereof..
7* p.c.	20 p.c.
Free	12£ p.c.
Free	15 p.c.
	[DOT]
Free 15 p.c.	p.c. 30 p.c.
15 p.c. 15 p.c.	27* p.c. 27f p.c.
15 p.c.	27* p.c.
15 p.c.	27* p.c.
15 p.c.	27* p.c.
15 p.c.	25 p.c.
15 p.c.	25 p.c.
15 p.c.	25 p.c.
15 p.c. 15 p.c.	25 p.c. 25 p.c.
25 p.e.	453	15 p.c.	25 p.c.	27$ p.c.17$ p.c.	453	15 p.c.	25 p.c.	27$ p.c.20 p.o.	657	17$ p.c.	22$ p.o.	25 p.o.10 p.o.	451a	5 p.o.	7$ p.c.	10 p.o.35 p.c.	436	22$ p.c.	30 p.c.	35 p.c.30 p.c.	435	20 p.c.	27$ p.c.	30 p.c.30 p.c.	435	20 p.c.	27$ p.c.	30 p.c.30 p.c.	435	20 p.c.	27$ p.c.	30 p.c.30 p.c.	435	20 p.c.	27$ p.c.	30 p.c.30 p.c.	435	20 p.c.	27$ p.c.	30 p.c.27$ p.c.	453	15 p.c.	25 p.c.	27$ p.c.27$ p.c.	453	15 p.c.	25 p.c.	27$ p.c.27$ p.c.	453	15 p.c.	25 p.c.	27$ p.c.27$ p.c.	453	15 p.c.	25 p.c.	27$ p.c.27$ p.c.	453	15 p.c.	25 p.c.	27$ p.c.
The Budget-Mr. Dunning

Tariff	British Preferential Tariff	Inter- mediate Tariff	General Tariff	Present Rates (E. & O. E.)	Item	Present Tariff Item	British Preferential Tariff	Inter- mediate Tariff	General Tariff445h	Electric insulators of all kinds, n.o.p., and complete parts thereof	15 p.e.	25 p.c.	27$ p.c.	453	15 p.c.	25 p.e.	27* p.c.445i	Electric sad irons and complete parts thereof	15 p.c.	25 p.c.	27* p.c.	453	15 p.c.	25 p.c.	445j	Electric apparatus, of a class or kind not made in Canada, n.o.p., and complete parts thereof	Free	15 p.c.	20 p.c.	453	15 p.c.	25 p.e.	271 p.c.445k	Electric apparatus, n.o.p., and complete parts thereof.	15 p.c.	25 p.c.	30 p.c.	453	15 p.c.	25 p.c.	27$ p.c.446	Manufactures, articles or wares, of iron or steel or of which iron or steel or both are the component materials of chief value, of a class or kind not made in Canada, n.o.p	Free	15 p.c.	20 p.c.	454	20 p.c.	27* p.c.	446a	Manufactures, articles or wares, of iron or steel or of which iron or steel or both are the component materials of chief value, n.o.p	15 p.c.	25 p.c.	30 p.c.	454	20 p.c.	27$ p.c.	30 p.c.447	Water pumps, hand or power, for domestic purposes only	Free	25 p.c.	30 p.c.	454	20 p.c.	27$ p.c.	30 p.c.448	Steel balls, for use only on bearings of machinery and vehicles	Free	7$ p.c*	10 p.c.	453 491	15 p.c. Free	25 p.c. 7* p.c.	27* p.c. 10 p.c.449	Steel wool	Free	7$ p.c.	10 p.c.	492	5 p.c.	7$ p.c.	10 p.c.450	Skates of all kinds, roller or other, and parts thereof..	15 p.c.	25 p.c.	30 p.e.	423	22$ p.c.	32$ p.c.	35 p.c.451	Buckles, clasps, eyelets, hooks and eyes, dome, snap, hookless or other fasteners, of iron, steel, brass or other metal, coated or not, n.o.p. (not being jewellery)	20 p.c.	27$ p.c.	30 p.c.	420	20 p.c.	27$ p.c.	30 p.c.451a	Needles, of any material or kind, n.o.p	15 p.c.	27$ p.c.	30 p.c.	454 362 357 352 711 419	20 p.c. 22$ p.c. 17$ p.c. 20 p.c. 15 p.c. 20 p.c.	27$ p.c. 30 p.c. 27$ p.c. 27$ p.c. 17$ p.c. 27$ p.c.	30 p.c. 35 p.c. 30 p.c. 30 p.c. 17* p.c. 30 p.c.451b	Pins manufactured from wire of any metal, n.o.p	20 p.c.	27$ p.c.	30 p.c.	419	20 p.c.	451c	Corset clasps, busks, blanks, steels, and covered corset wires, cut to length, tipped or untipped; reed, rattan or horn, covered	15 p.c.	27$ p.c.	30 p.c.	637	451d	Metal glove fasteners, papier mache shoe buttons, shoe eyelets, corset eyelets, shoe eyelet hooks, shoe lace wire fasteners	Free	Free	Free	671	452	Metal tips, studs and eyes, when imported by manufacturers of corset clasps and corset wires for use exclusively in the manufacture of corset clasps and corset wires, in their own factories, under regulations prescribed by the Minister	Free	Free	Free	671a	Free	Free	Free
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The Budget-Mr. Dunning
454
456
Metal parts when imported by manufacturers of covered buttons for use exclusively in the manufacture of covered buttons, in their own factories,
under regulations prescribed by the Minister	
Frames not more than ten inches in width, clasps and fasteners, when imported by manufacturers of purses, chatelaine bags or reticules for use exclusively in the manufacture of purses, chatelaine bags or reticules, in their own factories, under regulations
prescribed by the Minister	
Ribs of brass, iron or steel, runners, rings, caps, notches, ferrules, mounts and sticks or canes in the rough, or not further manufactured than cut into lengths, suitable for umbrella, parasol, sunshade or walking sticks, when imported by manufacturers of umbrellas, parasols and sunshades for use_ exclusively in their own_ factories, under regulations
prescribed by the Minister	,*[DOT][DOT][DOT][DOT]
Wire of brass, zinc, iron or steel, screwed, twisted, flattened or corrugated, for use exclusively in connection with nailing machines for the manufacture of boots and shoes, in boot and shoe factories, under
regulations prescribed by the Minister	
Tubs of metal, coated or not; copper sheets, plated or not; zinc sheets, plated; ball-bearings; gasoline engines and electric motors of less than one horsepower; all the foregoing when imported by manufacturers of washing machines or wringers for use exclusively in the manufacture of washing machines or wringers, in their own factories, under regulations prescribed by the Minister	
Free
Free
Free
Free
Free
457a
459
Materials or articles of metal, of a class or kind not made in Canada, when imported by manufacturers of washing machines or wringers for use exclusively in the manufacture of washing machines or wringers, in their own factories, under regulations prescribed by the Minister	[DOT][DOT][DOT][DOT][DOT]
Materials, including all parts, when imported by manufacturers of traction engines for use exclusively in the manufacture of traction engines, in their own factories, under regulations prescribed by
the Minister	 [DOT] * [DOT] [DOT]
Materials, including all parts, when imported by manufacturers of street or road rollers for use exclusively in the manufacture of street or road rollers, in their own factories, under regulations prescribed by the Minister	
Free
Free
Free
17$ p.c.
17$ p.c.
5 p.c.
Free
7$ p.c.
5 p.c.
Free
7$ p.c.
20 p.c.
20 p.c.	650	121 P-o.	171 P.c.20 p.c.	658	121 P-c.	171 P-c.71 p.c.	672	Free	FreeFree	482	Free	Free10 p.c.	454	20 p.c.	271 P-c.362	221 P-c.	30 p.c.71 p.c.	454	20 p.c.	271 P-c.362	221 p.c.	30 p.c.Free	1028	99 p.c.	1039	drawback 30 p.c. drawback	
10 p.c.	1039	30 p.c. drawback	
20 p.c.
Free
Free
30 p.c. 35 p.c.
30 p.c. 35 p.c.
[Stage Direction]
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The Budget-Mr. Dunning

Tariff Item		British Preferential Tariff
		
460	Materials to be used in Canada for the construction of bridges and tunnels crossing the boundary between the United States and Canada, when similar materials are admitted free under similar circumstances into the United States, under regulations	
	prescribed by the Minister		Free
461	Safes, doors for safes and vaults; scales, balances, weighing beams and strength testing machines of	
462	all kinds, n.o.p		10 p.c.
	Philosophical, photographic, mathematical and optical instruments, n.o.p.; speedometers, cyclometers and pedometers, and tape lines of any mat-	
	erial, n.o.p.; complete parts of all the foregoing..	15 p.c.
463	Magic lanterns and slides therefor		Free
464	Steel dies, of a class or kind not made in Canada, valued at not less than one thousand dollars each, for use exclusively in stamping metal sheets or	
	metal plates	 Provided that such dies shall be exported from Canada under Customs supervision within three months from the date of import entry.	Free
465	Signs of any material other than paper, framed or not; letters and numerals of any material other	
	than paper		15 p.c.
466	Iron sand or globules of iron shot, and dry putty, for	
467	use in polishing glass or granite or for sawing stone..	Free
	Window shade or blind rollers		15 p.c.
468	Bird, squirrel and rat cages, of wire, and metal parts	
	thereof		15 p.c. 15 p.c.
469	Machine card clothing		
470	Patterns of iron, steel, brass or other metal, not being	
	models		20 p.c. 15 p.c.
471	Belt pulleys of all kinds, for power transmission		
472	Plates engraved on wood, steel, or other metal and transfers taken from the same, n.o.p.; engravers' plates of steel, or other metal, polished or other-	
	wise processed, for engraving thereon		10 p.c.
473	Plates for printing in two or more colours, including electrotypes, nickel types and all engravings on steel	
	or other metal, for use exclusively in printing		Free
General Tariff	Present Rates (E. & 0. E.)			
Present Tariff Item	British Preferential Tariff	Inter- mediate Tariff	General TariffFree	596	Free	Free	Free30 p.c.	437	20 p.c.	27} p.c.	30 p.c.30 p.c.	657	17} p.c.	22} p.c.	25 p.c.362	22} p.c.	30 p.c.	35 p.c.25 p.c.	454	20 p.c.	27} p.c.	30 p.c.657	17} p.c.	22j p.c.	25 p.c.Free	453d	Free	Free	Free30 p.c.	661	20 p.c.	27} p.c.	30 p.c.Free	457	Free	Free	Free30 p.c.	517	20 p.c.	30 p.c.	35 p.c.30 p.c.	421	22} p.c.	30 p.c.	35 p.c.25 p.c.	429	17} p.c.	22} p.c.	25 p.c.30 p.c.	430	20 p.c.	27} p.c.	30 p.c.27} P-c.	452	15 p.c.	25 p.c.	27} p.c.20 p.c.	431	15 p.c.	17} p.c.	20 p.c.20 p.c.	431	15 p.c.	17} p.c.	20 p.c.
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The Budget-Mr. Dunning
475 475a
475b
476a
476b
478
480
Stereotypes, electrotypes and celluloids, for almanacs, calendars, illustrated pamphlets, newspaper or other advertisements, n.o.p.; and matrices or copper shells for such stereotypes, electrotypes and celluloids, per square inch	
Stereotypes, electrotypes and celluloids of books, and bases and matrices and copper shells for the same, whether composed wholly or in part of metal or
celluloid	;	
Stereotypes, electrotypes, celluloids and bases for the same, composed wholly or in part of metal or celluloid, n.o.p., and copper shells for such stereotypes, electrotypes and celluloids, per square inch	
Matrices for stereotypes, electrotypes and celluloids
described in item 475a, per square inch	
Surgical and dental instruments of any material; surgical needles; X-ray apparatus; surgical operating tables for use in hospitals; microscopes valued at not less than $50 each by retail; and complete parts of all the foregoing	
Glassware and other scientific apparatus for laboratory work in public hospitals; apparatus for sterilizing purposes, including bedpan washers and sterilizers but not including washing or laundry machines; all for the use of any public hospital, under regulations prescribed by the Minister	
1 cent
Free
i cent $ cent
Free
Free
Surgical suction apparatus including motive power; prepared surgical catgut; chloroform; ethyl chloride; canopy or pedestal operating room lights designed to minimize shadow, not including bulbs ; all the foregoing of a class or kind not made in Canada, and complete parts thereof, for the use of any public hospital, under regulations prescribed
by the Minister	
Metallic tubes, glass caps, shells, containers and capillary tubes, rubber- bulbs, boxes and corks, when imported by manufacturers of vaccine points for use exclusively in the manufacture of vaccine points, in their own factories, under regulations
prescribed by the Minister	
Artificial limbs, and complete parts thereof	
Materials and articles, when imported by manufacturers of artificial limbs for use exclusively in the manufacture of artificial limbs, in their own factories, under regulations prescribed by the Minister	
Free
Free
Free
Free
Clutches or specially constructed staffs for cripples..
Free
ii cents
Free
J cent i cent
Free
Free
Free
Free
Free
Free
Free
1| cents
1 | cents	432	1 cent	1J centsFree	483	Free	Freei cent	433	! cent	i cent2 cent	433a	2 cent	$ centFree	466	Free	Free326a	15 p.c.	20 p.c.618	15 p.c.	25 p.c.Free	466a	Free	Free362	22J p.c.	30 p.c.Free	453	15 p.c.	25 p.c.711	15 p.c.	17J P-c.219	15 p.c.	22| P-c.435	20 p.c.	27! P-c.Free	676	Free	FreeFree	688	Free	FreeFree	770	Free	Free719	Free	FreeFree	506a	Free	Free
Free
i cent i cent
Free 22! p.c. 27| p.c.
Free 35 p.c.
27§ p.c. 17! p.c. 25 p.c. 30 p.c.
Free
Free
Free
Free
Free
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The Budget-Mr. Dunning

		British				Present Rates		
Tariff			Inter-			(E. & O. E.l		
			mediate Tariff	General Tariff				
Item	Tariff	Present	British	Inter-	GeneralTariff	Preferential	mediate	Item	Tariff	Tariff	Tariff481	Specially constructed boot or app'iance made to	order for a person having a crippled or deformed foot or ankle	Free	Free	Free	611b	Free	482	Ear-telephone sets and similar appliances, including	complete parts and batteries therefor, for use by deaf persons, under regulations prescribed by the	Minister	Free	Free	Free	453	15 p.c.	27$p.c.494	Manufactures of corkwood or cork bark, n.o.p., in-	494a	^ eluding strips, shives, shells and washers of cork.. Cork slabs, boards, planks and tiles produced from	Free	17$ p.c.	20 p.c.	494	15 p.c.	17$ p.c.	20 p.c.cork waste or granulated or ground cork 	Free	17§ p.c.	25 p.c.	494a	15 p.c.	17$ p.c.	25 p.c.498	Cane, reed or rattan, not further manufactured than	split, n.o.p	Free	10 p.c.	10 p.c.	498	10 p.c.	10 p.c.502b	Bicycle rim strips of maple not further manufactured	than bent to shape and jointed	Free	12$ p.c.	15 p.c.	502b	10 p.c.	12$ p.c.	15 p.c.502c	Wood handles or stems for handles, not further manu-	factured than turned, when imported by manufacturers of goods enumerated in tariff items 409a, 409c, 409e, 409f, 409g, 409i, 409j, 409o, 431 and 431a for use exclusively in the manufacture of goods enumerated in said items	Free	Free	Free	502c	Free	Free	Free502d	Gun stocks and fore-ends for shot guns, of walnut in	the rough, not further manufactured than bored and channelled, when imported by manufacturers of shot guns for use only in the manufacture of shot guns in their own factories	15 p.c. 10 cts.	502d 506	10 p.c. 17$ p.c.	12| p.c. 22% p.c.	15 p.c. 25 p.c.506a	Clothes pins, with springs, per gross	Free	9 cts.	513	Umbrella, parasol and sunshade sticks or handles,	Free	17$ p.c.	17$ p.c.	20 p.c.516	Blinds of wood, metal or other material, not textile or	paper	Free	27$ p.c.	516	20 p.c.	27$ p.c.	30 p.c.535a	Grasses, seaweed, mosses and vegetable fibres other than cotton, n.o.p.; bagasse of sugar cane, whether or not dried, cleaned, cut to size, ground or sifted.	
535e		Free	i7$ p.c.	17$ p.c.	535a	10 p.c.	17$ p.c.	17$ p.c.
	Vegetable fibres other than cotton, when imported							
	by manufacturers of brushes for use exclusively in the manufacture of brushes, in their own factories.	Free	5 p.c.	7$ p.c.	535a	10 p.c.	17$ p.c.	17$ p.c.
553a	Stereotypers' and typecasters' blankets or blanket-							
577	ing and press blankets or blanketing used for printing presses, of a class or kind not made in Canada.	Free	5 p.c.	10 p.c.	442	10 p.c. 25 p.c. 17$ p.c.Collars and cuffs of xylonite, xyolite or celluloid	Free	20 p.c.	25 p.c.	577	15 p.c. 12| p.c.	20 p.c. 17$ p.c.	584a	Asphalt, not solid	Free	17£ p.c.	17$ p.c.	584a	
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[Stage Direction]
The Budget-Mr. Dunning
588a
605a
618b
649
650a
657b
063c
Gas for heating, cooking or illuminating, imported by
pipe line, per one thousand cubic feet	
Skins for morocco leather, tanned but not further manufactured; tanners' scrap leather; leather not
further finished than tanned, and skins, n.o.p.
Belting leather, further finished than tanned	
Tires of rubber for vehicles of all kinds, fitted or not
Featherbone, plain or covered, in coils	
Shoe buttons, n.o.p	
Button blanks of animal shell, in the rough	
Special parts, in the rough, when imported by manufacturers of cameras, for use only in the manufacture
of cameras	
Soya beans, soya bean cake and soya bean meal when imported by manufacturers of cattle foods and fertilizers for use exclusively in the manufacture of cattle foods and fertilizers, in their own factories.
10 p.c. 10 p.c. 224 p.c. Free Free Free
Free
Free
665a
672a
698a
Torpedoes, fire-crackers and fire-works of all kinds.
Fuse, not metallic	
Grinding wheels, stones or blocks, manufactured by the bonding together of either natural or artificial abrasives; manufactures of emery or of artificial
abrasives, n.o.p	
Sticks or canes cut into suitable lengths for umbrella, parasol or sunshade or walking sticks, further manufactured than in tariff item 455, but not further finished than bent, when imported by manufacturers of umbrellas, parasols, sunshades or walking sticks, for use exclusively in the manufacture of such
articles in their own factories	
Artificial teeth, not mounted	_....
Metal sheets for use only in making Braille printing plates, typewriters with Braille characters on the keys and writing appliances for use only by the
blind	
Articles for the personal or official use of representatives of foreign countries and of His Majesty's Governments, and for the personal use of their families, suites or servants, under regulations prescribed by
the Governor in Council	;	
Provided that the Governor in Council may withdraw any of the privileges granted under this section in the case of any country which refuses to grant the same privileges to Canadian officials holding corresponding or equivalent posts in that country, and may also rescind any Order in Council withdrawing the privileges as aforesaid.
Free
Free
15 p.c.
Free
Free
Free
Free
124 p.c. 20 p.c. 30 p.c. 174 p.c. 224 p.c. 10 p.c.
74 p.c.
Free
224 p.c. 174 P'c-
224 p.c.
12J p.c. Free
Free
Free
6 ets.	588a	6 cents	6 cents	6 cents15 p.c.	605	10 p.c.	124 p.c.	15 p.c.224 p.c.	605	10 p.c.	124 p.c.	15 p.c.35 p.c.	592	224 p.c.	30 p.c.	35 p.c.20 p.c.	636	12J p.c.	174 p.c.	20 p.c.25 p.c.	649	174 p.c.	224 P-c.	25 p.c.10 p.c.	650a	74 p.c.	10 p.c.	10 p.c.74 p.c.	657b	5 p.c.	74 p.c.	74 p.c.Free	736	Free	Free	Free711	15 p.c.	174 pc.	174 p.c.25 p.c.	665	174 p.c.	22| p.c.	25 p.c.20 p.c.	665a	124 P-c.	174 p.c.	20 p.c.25 p.c.	670	174 p.c.	224 p.c.	25 p.c.670a	10 p.c.	124 P-c.	15 p.c.15 p.c.	672a	10 p.c.	124 p.c.	15 p.c.Free	688	Free	Free	FreeFree	698a	Free	Free	Free349	5 p.c.	74 p.c.	10 p.c.Free	706	Free	Free	Free
The Budget-Mr. Dunning
[Mr. 4. Resolved, That Section B to the Customs Tariff, being chapter forty-four of the Revised Statutes of CnmHn 1Q97 no	u
0 chapter seventeen of the Acts of 1928, and by Order in Council, be amended by striking thereout tariff items" 1005 ' 1006 ' 1009 1015 ioiR | 021, 1023, 1020, 1027, 1028, 1030, 1039, IMS, 1047 1048, 1006, 1057, 1058, 1059, 1052, TO3, lOflf,	iT'lh,	dS1	St	',t7o°"	said items, and by repealing Ord.r in Council, P.C. 2851, dated the thirteenth day oi August,
" 1921>
and msertmg the following items, enumerations and rates of drawback of customs duties in said Schedule B:-
Oi
[Stage Direction]
Tariff Item	Goods
1005	Steel	
1006	Steel	
1009	Steel	
1015	Steel	
1018	Seamless iron or steel tubing over four inches in diameter	
1021	Rolled round wire rods in the coil, of iron or steel, not over '375 inch in diameter,.
1023	Hot rolled hexagon iron or steel bars	
1026	Materials	
	
	Portion of Duty	Present Rates	
When subject to Drawback	(Not including Special Duty or	(E. & O.E.)	
	Dumping Duty) Payable as		
			
	Drawback	Present Tariff Item	Drawback
When used in the manufacture of			
cutlery or stove trimmings	
When used in the manufacture of	99 p.c. drawback	1009	99 p.c.scythes, reaping hooks, hay or straw knives, hoes, agricultural forks, hand rakes, axes or wind-	99 p.c. drawback	1009	99 p.c.When used in the manufacture of	files, augers, auger bits, bit braces, wrenches, hammers or	hatchets	
When used in the manufacture of	60 p.c. drawback	1009	99 p.c.skates or bicycle chain	40 p.c. drawback	1009	99 p.c.When used in the transmission of	natural gas under high pressure from the gas wells to points of	distribution	50 p.c. drawback	1064	50 p.c.When used in the manufacture of	galvanized iron or steel wire,	curved or not, -144, -104, or -092 inch in diameter with tolerance not to exceed -004 inch, but	not when such wire is for use in telegraph or telephone lines	99 p.c. drawback	1021	99 p.c.When used in the manufacture of	cold drawn or cold rolled iron or	60 p.c. drawback	99 p.c.When used in the manufacture of	containers for articles entitled to entry under tariff item 219a...	99 p.c. drawback'	New drawback
o
o
o
[Stage Direction]
The Budget-Mr. Dunning
2419-106i
1028
1047
1056
1058
	When used by manufacturers ol malleable iron castings or steel shafting for use exclusively in the manufacture of such articles for use in the manufacture of goods enumerated in tariff items 409a, 409b, 409c, 409d, 409e, 409f,		
		80 p.c. drawback	1027
	When used in the manufacture of		
	the seamless pipes, tubes and flues enumerated in tariff items 399 and 410d: Provided that no drawback shall be paid under this item when the pipes, tubes and flues enumerated in Tariff 399 and 410d are dutiable under the General Tariff of Schedule A	99 p.c. drawback 99 p.c. drawback	
Steel sheets, hot or cold rolled or coated with lead or with lead and tin, 064 inch to -022 inch in thickness, 20 to 42 inches in width and 50 to 120 inches in length	When used in the manufacture of		P.C. 2851
	When used in the manufacture of		
	articles enumerated in tariff	99 p.c. drawback	1047
	When used in the manufacture of		
	goods enumerated in tariff item 440k		50 p.c. drawback	1048
	When used in the manufacture of		
	rolled iron or rolled steel entitled to entry under tariff item 442a, when such rolled iron or rolled steel is sold to manufacturers to be used as specified	99 p.c. drawback	1056
	When used in the manufacture of		
	articles entitled to entry under tariff item 442, when such articles are sold to manufacturers to be used ns specified in said	80 p.c. drawback	1057
	When used in the manufacture of		
i	► articles entitled to entry under tariff items 411 and 411a, not including saws, and articles entitled to entry under tariff item 410 (1), when such articles are used as specified in said items..	60 p.c. drawback	1058
80 p.c.
New drawback
99 p.c. 99 p.c. 50 p.c.
99 p.c.
80 p.c.
60 p.c.
The Budget-Mr. Dunning

Tariff
Item
1062
1064
Goods
Materials.
Materials, including all parts
Materials, including all parts, when imported prior to July 1, 1932	
Materials, including all parts, when imported prior to July 1, 1932	
When subject to Drawback	Portion of Duty (Not including Special Duty or Dumping Duty) Payable as Drawback	Present Rates (E.&O.E.)	%	Present Tariff Item	DrawbackWhen used in the manufacture oi articles entitled to entry under tariff items 410b and 410z when such articles are used as specified in said items	70 p.c. drawback	1059	When used in the manufacture of marking gauges, levels, planes or hand tool scrapers, spoke shaves, try squares, bevels, measuring tapes, rules, forged wire rope sockets, lathe dogs, tool holders, forged clamps, chain pipe wrenches : Provided that no drawback shall be paid under this item unless at least fift per centum of the cost of producing the finished article has been incurred in Canada; and provided further that no drawback under this item shall be payable more than once on any article	60 p.c. drawback	1002	GO p.c.When used in the manufacture of engines for use exclusively in the equipment of aircraft: Provided that on and after July 1, 1930, no drawback shall be paid under this item unless at least twenty-five per centum of the cost of producing the finished engine has been incurred in Canada....	60 p.c. drawback	1063	50 p.c.When used in the manufacture of aircraft, not including engines: Provided that no drawback shall be paid under this item unless at least fifty per centum of the cost of producing the finished article has been in-incurred in Canada	New Drawback
os
-t
Os
[Stage Direction]
o
[Stage Direction]


o
The Budget-Mr. Dunning

The Budget-Mr. Dunning
5. Resolved, That any enactment founded on the foregoing resolutions shall be deemed to have come into force on the second day of May, one thousand nine hundred and thirty, and to have applied to all goods mentioned in the foregoing resolutions imported or taken out of warehouse for consumption on and after that date and to have applied to goods previously imported for consumption for which no entry for consumption was made before that day.
Resolved, That it is expedient to introduce a measure to amend The Special War Revenue Act, chapter one hundred and seventy-nine of the Revised Statutes of Canada, 1927, as amended by chapter fifty of the acts of 1928 and chapter fifty-seven of the acts of 1929, and to provide:-
1.	That section eighty-six of the said act, as amended by section three of chapter fifty of the acts of 1928 and as amended by section five of chapter fifty-seven of the acts of 1929, be amended by providing that the rate of consumption or sales tax be reduced to one per cent.
2.	That schedule 111 to this act be amended by changing the numbers of customs tariff items as follows:
Tariff Item-
410 to read 406a; 410a to read 406b; 445 to read 409d; 445a to read 442; 445b to read 442a; 446 to read 409b; 446b to read 409c; 446c to read 409k; 447 to read 409n; 447b to read 409j; 448 to read 409a, 409c, 409e, 409f, 409g, 409j, 409o; 449 to read 409i, 431a; 450 to read 431; 453b to read 411, 411a, 411b; 453c to read 4101; 453d to read 464; 453e to read 440k; 456a to read 391a; 460 to read 410m, 410n, 410o, 410p, 410q, 410s; 460a to read 410q; 460b to read 410b, 410z; 460c to read 410g; 460d to read 410k; 461 to read 410f; 461a to read iron or steel pipe, not but or lap welded, and wirebound wooden pipe, not less than thirty inches in internal diameter, for use in aluvial gold mining; 466 to read 476; 466a to read 476a; 469 to read 410d; 469a to read 410e; 469b to read 410c; 506a to read 480; 591 to read 439c; 591a to read 439d.
3.	That any enactment founded on paragraphs one and two of this resolution shall be deemed to have come into force on the second day of May, one thousand nine hundred and thirty, and to have applied to all goods imported or taken out of warehouse for consumption on and after that day, and to have applied to goods previously imported for which no entry for consumption was made before that date.
4.	That section fifty-eight, as enacted by chapter fifty-seven of the statutes of 1929, sections fifty-nine, sixty, sixty-one, sixty-two and sixty-three be repealed and provision made that there shall be imposed, levied and collected upon every change of ownership consequent upon the sale, transfer or assignment of any share of stock of any association, company or corporation, or any bond, debenture or debenture stock other than a bond, debenture or stock of the Dominion of Canada or of any province of Canada, an excise tax as follows:
[Stage Direction]
(a)	Three cents for every one hundred dollars or fraction thereof, of the par value of a bond, debenture or debenture stock;
(b)	Five cents for every share of stock sold or transferred at a price over one hundred and fifty dollars per share;
(c)	Four cents for every share of stock sold or transferred at a price over seventy-five
dollars per share but not more than one hundred and fifty dollars per share;
(d)	Three cents for every share of stock sold or transferred at a price over fifty dollars per share but not more than seventy-five dollars per share;
(e)	Two cents for every share of stock sold or transferred at a price over twenty-five dollars per share but not more than fifty dollars per share;
(f)	One cent for every share of stock sold or transferred at a price over five dollars per share but not more than twenty-five dollars per share;
(g)	One-quarter of one cent for every share of stock sold or transferred at a price of one dollar to five dollars per share, but not more than five dollars per share;
(k) One-tenth of one per cent of the value of every share of stock sold or transferred at a price less than one dollar per share;
that the said tax shall be payable in excise tax stamps by the vendor, transferor or assignor;
that every person liable to collect or pay the said tax shall keep records and books of account;
and that any enactment founded on this paragraph four shall come into force on the first day of July, one thousand nine hundred and thirty.
The Minister of Finance-On	next-
In Committee of Ways and Means-The following resolutions-
Resolved, That it is expedient to amend the Income War Tax Act, and to provide-
1.	That the corporation rate of tax be paid in respect of undistributed income when such undistributed income is received by a corporation on the sale or winding up of another corporation.
2.	That the income of co-operative companies and associations be exempt from income tax.
3.	(a) That an exemption of $500 be ganted in respect of dependent parents, grandparents, brothers, sisters, sons and daughters, incapable of self-support on account of mental or physical infirmity, not otherwise presently provided for.
(b)	That donations, to the extent of ten per centum of the net income of the taxpayer to any church, university, college, school or hospital in Canada, be allowed as a deduction.
(c)	That government or other like annuities to the extent of $5,000 be exempt from income tax.
4.	That corporate rate of tax be imposed on family corporations in respect of the interest therein of non-resident shareholders.
5.	That directors, officers or employees of a Canadian company who reside abroad shall be taxable in respect of the dividend and interest income received from the company in which they are employed.
6.	That any enactment founded on the foregoing resolution shall be deemed to have come into force at the commencement of the 1929 taxation period and to be applicable thereto and to fiscal periods ending therein and to subsequent periods, except any enactment founded on resolution number one hereof, which shall be deemed to have come into force at the commencement of the 1930 taxation period and to be applicable thereto and to fiscal periods ending therein and to all subsequent periods.
The Budget-Mr. Bennett
[Stage Direction]
The Minister of Finance-Committee of Ways and Means-the following resolution:
Resolved, That it is expedient to introduce a measure to provide for the payment out of the Consolidated Revenue Fund of forty-nine and one-half cents per ton of bituminous coal mined in Canada and converted into coke in Canada and used in the smelting of iron from ore, or in the production of steel.
Hon. R. B. BENNETT (Leader of the Opposition):: Mr. Speaker, those of us who
know something of parliamentary institutions and something of the history of responsible government have been waiting to see' the resignations come in from the other side of the house. Those of us who have been entertained in days gone by with the speeches of the Hon. Minister of Railways and Canals hardly expected that he would remain long in a government which offered such a fiscal policy as is contained in the speech we have just listened to. Those of us who heard the minister, now no longer in his place-probably he has resigned

who sounded a few short years ago the death knell of protection, wonder after all if there is anything in the representations which were made in days gone by by the party opposite as to their fiscal beliefs and policies. Where was the resolution of the Saskatchewan legislature?


Charles Avery Dunning: Right here.


Richard Bedford Bennett: Where was the dictionary definition of Liberalism? Where were the free trade protestations of the Prime Minister (Mr. Mackenzie King)? Where was the policy of the Liberal party as stated in 1893 and 1919?


Charles Avery Dunning: Right here.


Richard Bedford Bennett: One is not permitted in
parliamentary debate to use the expression hypocrisy, but it is always a matter of satisfaction to see sinners turn from their sins; it is always a matter of satisfaction to see those who have erred converted to the light. It must be a matter of some satisfaction to that group of free traders from the western provinces who sit to the left to see " brick for brick" being super imposed on the tariff wall. The Right Hon. Arthur Meighen was denounced from one end of Canada to the other by the Liberal party when he said that if he were in power he would deal with the agricultural schedule by imposing against foreign countries the same tariff on agricultural products which they imposed against us. It is a revelation to recall the speeches made by certain hon. gentlemen who sit on the other side, and then to listen to the Minister of Finance state that we are going to impose countervailing duties.

This is government, responsible government! This is government of the people, by the people, for the people! This is the government which generation after generation has said that it was marching steadily forward in opposition to certain fiscal principles. The Liberal party has been doing that, and today it finds itself pledged to the fiscal policies of the Conservative party. Indeed it was a great conversion.


Mr. VALLANCE:: Why 'does the hon.
gentleman not move the adoption of the budget?


Richard Bedford Bennett: The hon. gentleman who
has just asked the question surely will recall that those who accept a situation from expediency and not from conviction, have never in the long run come to much in the government of the country. The Liberal party has at least run true to form. Being ashamed to admit its conversion, it has now, by the use of other words, endeavoured to adopt a policy which in times gone by it opposed. I wonder whether the Minister of Finance realizes that the word "countervailing" is just a poor substitute for the word "retaliation." I wonder, when he says that a tariff policy made in Washington is to become the tariff policy of Canada, whether he realizes that this is nothing more than a retaliatory policy. I wonder whether the Prime Minister in that closing exordium for international good-will, realized that a countervailing duty is a retaliatory duty, except that you permit the other country to make it first. A countervailing duty that is now to prevail in the Dominion of Canada is a policy made in Washington. A party and a government so lacking in courage for the Canadian people that it dare not stand up today and name the tariff it will impose against the United States, comes and asks the Canadian people to accept as a countervailing duty a policy made in Washington. Thoughtful observers knew this would be the policy of the government. We knew this government that had preached the politics it had in this country would not have the courage to tell the Canadian people it had been wrong in former times and that it was going to impose a policy for Canada based upon Canadian necessities. But it has now asked the Canadian people, to-day, for the first time in the history of Canada, to accept a policy made by the congress at Washington as a countervailing tariff policy, and it has endeavoured to smother it in words with respect to the British preference. It has been said by a great statesman that "patriotism is the last resort of a coward," and to-day we find this government asking the people to

The Budget-Mr. Bennett
accept in fiscal matters a policy made in another country and then endeavouring to cover it up with talk about a great British preference.


Mr. THORSON:: Is the hon. member in
favour of the British preference or not?


Richard Bedford Bennett: The hon. gentleman has
never been noted for his high regard for British views, but I am somewhat surprised at his little regard for Canadians this afternoon. In the absence of the schedules which are not before us and which the minister says will be printed in due course, I will not discuss the details of this budget, because I cannot do so without those details before me. It is so simple to talk about the accumulation of numbers, by increasing one to five by juggling classifications, by changing one item into two and thereby saying that the British preference refers to one item yesterday and to two to-day. How simple it is to do that and yet that is what has been done according to the evidence the hon. gentleman has given us. What has been done, taking it merely according to his own statement, is that the tariff has been reclassified by increasing the number of items so that the British preference applies now to a vast number of items whereas before they were more compact and less numerous. In this way the government has increased the British preference. It has handed over to Washington the power to make our tariff with respect to vital matters by placing upon the statute books of this country for the first time a countervailing tariff.


Charles Avery Dunning: My hon. friend will allow me to correct him. We have countervailing provisions now with respect to numerous items.


Richard Bedford Bennett: I say for the first time
with respect to these great matters he is now dealing with. The government has endeavoured to deal with matters of agricultural products by countervailing duties.


Charles Avery Dunning: No.


Richard Bedford Bennett: In 1911, the government
of the day led by Sir Wilfrid Laurier, tried to make with the United States a contract that might be terminated at any moment. This was the bargain known as the reciprocity agreement. It had much support in western Canada because people did not realize at that time that the establishment of a channel of trade that might be disturbed by the congress of the United States at any time without reference to this country, made us fiscally their dependents. To-day, in 1930, the government is going back to the days of 1911 and providing that a tariff made in Washington shall
automatically be the tariff that applies in Canada. Some of us remember what countervailing duties have done. Some of us recall that when we imposed a duty of fifty cents a ton on United States coal, the effect of the countervailing duty of the congress of the United States was that at the very moment our tariff was placed upon the statute book of this country, the tariff of the United States of fifty cents a ton became operative against Fernie coal, with the result that our industry was injured and some of our mines were closed.
To-day we are reversing the process; we are declaring that this parliament is no longer legislating for the Canadian people, but what they do in the United States, if they reduce or increase the duties with respect to commodities mentioned, is to be the tariff legislation of Canada. Again I say to the house that without having before us the details of the budget-and it is all details-I cannot discuss it. So far as the two great principles I have discussed they are simple. In the one instance you increase by division the number of articles and claim credit for increasing the British preference.


Charles Avery Dunning: That is utter nonsense.


Richard Bedford Bennett: Then the words of the
hon. gentleman as Minister of Finance cannot be relied upon, for he has said that he has clarified the situation by taking these items and classifying them so that there will be no difficulty in understanding them, and the number has been increased to the figures he has mentioned. After the items have been increased in number, we are to deal with them in the manner I have indicated. The other provision is to apply the so-called countervailing tariff by which automatically we have a tariff against countries equal to theirs against us. Those are the two great principles of the budget. The attitude that is to be taken must be determined after we have seen the items in print, because at present no one knows what they mean. Perhaps they will be printed in the newspapers. They become operative to-night and while it has been customary in many cases to place these upon Hansard without reading them, in other cases it is of paramount importance that they should be read in order that the country may know and understand exactly what industries and businesses are affected thereby. In the absence of these schedules it is impossible to deal intelligently with the great mass of detail to which the minister has referred. But in a broad and general way I can say that if the
The Budget-Mr. Bennett

budget taxation proposals made by the minister this afternoon mean what he has indicated in the closing words of his address-


Charles Avery Dunning: They do.


Richard Bedford Bennett: -then we must surrender that legislative sovereignty that we have long possessed over our own affairs. We must bow the neck, as in fact, we have so long done in other matters, to another country greater in population and in wealth, and permit our tariff proposals to emanate in the United States congress instead of in this parliament. For my part, I believe that the Canadian people will be opposed to any such proposals.
If, on the other hand, an effort were being made to protect and safeguard Canadian industry, to protect and safeguard Canadian agriculture, to protect the Canadian truck farmer and gardener and fruit grower, regardless of what any other country might do, then indeed such proposals would merit the support of this house and the coimtry. But in view of the statements that have been made, it is quite apparent that the measure of protection that the farmers of this country and industry generally is to receive is to depend, not upon our conception of their requirements, but upon the conception that other countries may have of the requirements of their own people. Other countries have legislated in these matters with supreme concern and regard for the people of their own country. They have not legislated according to what other countries might do. The day has come when we who sit on this side of the house, as Canadians, rejoice that at last education has done its work, that at last the force of public opinion and the necessity of securing votes at a nearby election, which cannot come too soon, have forced the government, acting upon expediency and not upon conviction, to take action seven years too late-action by an administration that would not provoke by retaliatory measures the great republic to the south, but is willing, with countervailing duties, to meet the situation. The people are the final arbiters, and the question is whether the administration deserves the confidence of the people or should be denied it. For my part,
I believe that the Canadian people, between now and the date of the Imperial economic conference, should have an opportunity to decide. These proposals were prepared, apparently, judging by the complex character of the language used, by the chairman of the tariff board, who, from long experience in other vocations is a past master of manipulation.
I shall now, Mr. Speaker, in accordance with the arrangement that we had with the

minister, which made possible the delivery of the budget to-day with our unanimous consent, move the adjournment of the debate that we may have the opportunity to study and consider the details of the proposals that have been submitted.


Mr. LAPOINTE:: Before he sits down will my hon. friend satisfy my curiosity by telling me whether he favours or opposes the changes proposed?


Richard Bedford Bennett: The hon. Minister of
Justice is now about to complete what was apparently a studied effort on the part of the administration. When the Minister of Finance sat down, he was at once congratulated with a warm clasp of the hand by the Prime Minister, and then there rushed to his side the other ministers to grasp him by the hand and fall upon his neck, although, of course, every word of the budget was known to every one of them before it had been delivered to the house. Now, apparently in order that the performance may be complete, the hon. Minister of Justice, a member of my own profession rises and asks me whether I favour or am opposed to the proposals that have been made. All I can say is this, that when and so soon as I have an opportunity to consider what the changes mean, which no hon. gentleman opposite has yet had an opportunity to do, I shall be able to answer that inquiry. But there is one thing that I can say now, and about which there may be no doubt, and that is that I am in favour of every proposal that will make for the advancement of Canada as an independent economic entity.
Motion agreed to and debate adjourned.


Mr. CHAPLIN:: I would like to inquire
from the Minister of Finance if in printing in Hansard the schedules that he has read and some that he has not read, he will insert the old item numbers so that we can identify the items.


Charles Avery Dunning: As I indicated in the
budget address, arrangements have been made for printing opposite to every resolution, as a part of the Hansard record, the number of the old items and the rates.


James Dew Chaplin: I understood that the old rates would be given, but I wanted to make sure that the old item numbers would also be given.


Charles Avery Dunning: Yes. I should make this qualification, however: that in compiling some 500 items I cannot in every case guarantee meticulous accuracy with respect to every

Natural Resources-Alberta
old item number and rate, but every effort will be made to meeit the wishes of hon. gentlemen in that regard.



NATURAL RESOURCES


[Stage Direction]
The house resumed from Wednesday, April 30, consideration of the motion of Mr. Stewart (Edmonton) for the second reading of Bill No. 17, respecting the transfer of the natural resources of Alberta.
Hon. CHARLES MARCIL (Bonaventure):: Mr. Speaker, I do not intend to delay the second reading of this measure, which has been expected by the western provinces for a long time, has occupied the time of parliament for many years, and has met with general acceptance of the house; but in justice to the men of the Liberal party who were responsible for the act of 1906 I think it is only fair to answer certain statements that were made the day before yesterday and on Monday last by the hon. member for St. Lawrence-St. George (Mr. Cahan). I had the honour in that debate twenty-five years ago of being the deputy speaker and chairman of the committee of the house that passed the bill. I initialled every clause, I reported the bill to the house, and I passed through one of the most exciting debates that the commons of Canada ever had.
The member for St. Lawrence-St. George mentioned three former members of the Liberal party who had voted for restricting the rights of the minority in the new provinces of Alberta and Saskatchewan. He said that a large number of his constituents were favourable to separate schools, and he deplored the very meagre measure of justice now being meted out to the minority in those two provinces. I wish, for a few moments only, to give my experience of the state of affairs that prevailed here in 1905, of which there are but three living witnesses to-day on our side of the house. There is another witness on the other side-but his name is not mentioned- who supported the measure; I mean the member for South Wellington (Mr. Guthrie). The others have disappeared from public life, and many have gone to their reward. ^	_
As a boy I remember the debates in this house on the New Brunswick school question away back in 1872 and 1873. I followed closely the debates on the Manitoba school question in 1896 and took part in that campaign. Fully aware of the sentiments of the Canadian people on school matters, when the incorporation of the western provinces came before this house Sir Wilfrid Laurier knew that the sentiment of the Canadian people as
expressed, more especially in 1896, was that educational matters should rest within the purview of the several provinces. It is true that in forming these two new provinces, Alberta and Saskatchewan, we had to deal with the organic law passed in 1875 by the government of Alexander Mackenzie, which established in those territories practically the separate school system that had been established in 1866 in the province of Ontario. But when we came to deal with the question in 1906 the school legislation that had been passed by Alexander Mackenzie in 1875 had been very materially altered by the ordinances of the Northwest Territories in 1891. The separate school system had ceased practically to exist in those territories except in a very small measure indeed.
When the question came before the house Sir Wilfrid Laurier had placed in the bill by his then Minister of Justice, the right hon. Sir Charles Fitzpatrick, the organic clause of 1875 concerning separate schools. This school legislation has prevailed in Ontario, and it has prevailed in Quebec. I must say to the glory of the province of Quebec that we have never had any trouble in that province, and we thought that it was only right that the same system should continue in the Northwest Territories. But in view of the decision rendered in 1896 by the Canadian people that education should remain in the purview of each province, there broke out in the opposition in this house and in their press throughout the country one of the most violent storms that I have ever witnessed in the political life of Canada. Naturally His Holiness the Pope was drawn into the controversy, as was also his representative in Canada at that time, Monsignor Sbarrettd, and we were told that Canada was threatened with the direst calamities if this original school legislation, introduced by Alexander Mackenzie and Edward Blake, and adopted by the Canadian people at the time, was perpetuated. The Conservative party were a unit in leaving the school matters in these two provinces to be dealt with by the provinces themselves and the Right Hon. Sir Robert Borden declared on the floor of the house that if he was called on to form a government he would leave matters to be dealt with by the provinces. The Liberal party therefore at that time was in this position: were the rights of the minority, recognized by legislation, to be ignored, to be sacrificed entirely, as had been done in the province of Manitoba after the passing of the Manitoba Act; were we to omit all provisions regarding education and leave the matter entirely to the provinces?
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The members in this house who supported separate schools and who recognized that minorities had some rights, no matter in what province and no matter what language they spoke, were in favour of preserving the rights of the minorities in these provinces. I must say to the glory of the Liberals of those days, the Liberals of Saskatchewan and Alberta- not one of whom, I am sorry to say, remains in this house at the present time-that it was due to their patriotic action on that occasion that we were able to save the principle of the rights of the minority in school matters. Sir Wilfrid Laurier was forced by the opposition and by the Conservative press and by a section in his own ranks-by the resignation of Sir Clifford Sifton among others-to withdraw the original clause 16, as it was then called, and substitute another clause, which recognized the principle that the schools came under the laws of the provinces to be formed. The Liberal party at that time from western Canada, the Liberals of Alberta, of Saskatchewan and of Manitoba, came valiantly forward and told us: We are prepared to stand with you and see that the status quo is maintained in the western provinces. That status quo had been modified by the northwest council in 1891. It was not done by Liberals. The lieutenant-governor at that time, a prominent Conservative, signed the ordinances changing the school laws in those territories and even abolishing the French language in certain cases.
We were therefore placed in this position: were the rights of the minority in these two provinces to be ignored completely, was legislation to be passed placing the schools in the hands of a party who declared they would make no provision for such laws; or were we to save the principle, hoping that in time broader views would prevail, that a more patriotic spirit would animate all Canadians, and that another generation would come to realize that after all Canada is a union of two great races, and that it can stand only by preserving unity among its people? We had to decide whether we would recognize the principle or abandon it completely. I must reiterate that it is due to the broadmindedness of the Liberals of those days, the Liberals of Ontario, and particularly the Liberals of Alberta and Saskatchewan, who were most directly concerned, that this principle of separate schools was recognized and that the second clause 16 was inserted in the two bills constituting the acts of 1905. Naturally the French Conservatives in this house were opposed to this change; the then members for Labelle and Montmagny were the only dissenting Liberals who joined with the 
French-Conservatives to oppose this new clause; and of course it was opposed as well by the opposition. The matter was laid before the highest ecclesiastical authority in western Canada at that time, the distinguished Bishop of Edmonton, Monsignor Legal. That gentleman was asked what he thought of the measure as introduced the second time to this house and as modified by Sir Wilfrid Laurier at the request of a majority of the house. Hon. members will remember, as I remember, that when that message came from Edmonton, Monsignor Legal declared that this measure should be accepted. With that end in view the whole Liberal party, with the exception of the member for Labelle, the member for Montmagny, and a few French Conservatives, voted for the new law of 1905. We did so in the belief that we were doing what we could for the minority.
Conditions have changed in the west. A new population who know nothing of the old days of the union of Canada has grown up. They know nothing of the hardships which the pioneers of Ontario, Quebec and the maritime provinces endured to make Canada what it is.
I hope with the present standard of education and the communication facilities we have today a broader feeling will prevail and that the unfortunate scenes which were enacted in this house in 1872, 1896 and 1905, of which I am sorry to say few witnesses remain, will never be repeated. I congratulate the Prime Minister (Mr. Mackenzie King), the Minister of the Interior (Mr. Stewart, Edmonton), the Minister of Justice (Mr. Lapointe) and the Solicitor General (Mr. Cannon) on the lucid, dear and fairminded way this measure has been brought to the attention of the house. The measure has been accepted by the opposition and I am sure it will complete and improve the work of confederation until another and better day when Canadians will unite in furthering a better understanding among all classes of the community.


[Stage Direction]
Motion agreed to, bill read the second time and the house went into committee thereon, Mr. Johnston in the chair.
Section 1 agreed to.
On section 2-Agreement confirmed.
Charles A. Stewart: As outlined in my introductory remarks, I have an amendment to move to section 2. The amended section will now read:
The agreement set out in the schedule hereto is hereby approved subject to the proviso that in addition to the rights accruing hereunder to the province of Alberta the said province shall

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be entitled to such further rights, if any, with respect to the subject matter of the said agreement as are required to be vested in the said province in order that it may enjoy the rights equal to those which may be conferred upon or reserved to the province of Saskatchewan under any agreement upon a like subject matter hereafter approved and confirmed in the same manner as the said agreement.


Mr. BOURASSA:: Explain.


Mr. CANNON:: In order to understand the meaning of the amendment I would like hon. gentlemen to refer to section 32 of the Alberta agreement. When that agreement was arrived at it was agreed that a royal commission be appointed to-
-inquire and report whether any, and, if any, what consideration, in addition to the sums provided in paragraph 20 hereof should be paid to the province in order that the province may be placed in a position of equality with the other provinces of confederation with respect to the administration and control of its natural resources as from its entrance into confederation in 1905, such commissioners to be empowered to decide what financial or other considerations are relevant to the inquiry, and the report to be submitted to the parliament of Canada and to the legislature of Alberta; and if by the said report, the payment of any additional consideration is recommended, then, upon agreement between the governments of Canada and of the province following the submission of such report, the said governments will respectively introduce the legislation necessary to give effect to such agreement.
When the province o-f Saskatchewan adapted the agreement with the Dominion of Canada they not only asked for a royal commission to investigate the feature mentioned in section 22 of the Alberta agreement but they went further. Not only did they want a royal commission to investigate whether any additional sums were to be paid in connection with anything which might have been done since 1905, but they wanted this commission to go much farther back and investigate our relations with Saskatchewan from the time that the territory was handed over in 1870. As a result we decided with the people of Saskatchewan that certain questions would have to be referred to the courts. These questions have been submitted by counsel for the province of Saskatchewan; they have been accepted by the Dominion and will be embodied in an order in council for reference to the courts. To sum up the nature or the effect of these questions in regard to further compensation, if the court should decide that the province of Saskatchewan could claim further compensation not only since 1905 but since 1870, the royal commission would investigate these matters. The amendment which is now proposed is designed to give the Alberta royal commission, should the court decide that the Saskatchewan royal commission should investigate from 1870, the same power of investigation, to ensure that the province of Alberta shall be treated in the same way.


Joseph Henri Napoléon Bourassa: But I understood there was something more than that; according to the statement of the Minister of the Interior or the Minister of Justice the other day, the purpose of this amendment is to put the government of Alberta in exactly the same position as the government of Saskatchewan.


Lucien Cannon: My hon. friend reminds me that I might add that should the reference which will take place as between the province of Saskatchewan and the Dominion result in the decision with regard to lands, for instance, that the rights of the province of Saskatchewan were much wider and more extended than those which up to now have been recognized and upon which this agreement was based, then we would also treat the province of Alberta in the same way.


Mr. GARDINER:: I have a copy of the amendment before me, and I only wish to ask whether this is in similar terms to the amendment adopted by the legislative assembly of Alberta?


Charles A. Stewart: Yes, I believe it is identical; we have not been informed of any change, so I assume it passed in this form. I have the telegram from which this amendment was drafted and we have not been informed that any change was made when it was submitted to the provincial legislature.


Joseph Henri Napoléon Bourassa: So we find ourselves in an extraordinary position. A few days ago the Minister of Justice, after the argument made by the hon. member for St. Lawrence-St. George, admitted that it would have been preferable to add one further word to section 7 in order to make it quite clear that all four sections of the Dominion Lands Act relating to school lands and school funds would be applicable. When we reach that section I may have something further to say. The only reference I desire to make at the moment is this: The Minister of Justice admitted that it would be better to insert the word "inclusive" in that section in order to make it quite clear that section 40 of the Dominion Lands Act would apply as well as sections 37, 38 and 39, but he said this would reopen the whole matter and that therefore nothing should be changed. Now we are told that probably the legislature of Alberta has adopted an amendment to its own agreement in order to bring it in conformity with the agreement concluded
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between this government and the province of Saskatchewan. The government is not even officially informed as to whether the change we are asked to make now has been adopted verbatim by the Alberta legislature.


Charles A. Stewart: Oh, yes.


Joseph Henri Napoléon Bourassa: I understood the Minister of the Interior to say a moment ago that he had not been informed that any change had been made; but has he the official text of the legislation adopted by the legislature of Alberta, proving that what we are asked to pass now has been adopted in the same words by that legislature?


Charles A. Stewart: For the information of my hon. friend I may say that telegrams were exchanged on the matter. Perhaps first, in order to clarify the situation, I should say that there never was any objection to a submission to the courts of any claims the provinces might have. When Premier Brownlee and the representatives of the government of Alberta were here, that matter was discussed at some length, and at that time they did not feel that they were interested. However, after Saskatchewan desired to have the reference extended, I know some criticism was directed against the government because they have not also secured that extension, and telegrams were exchanged between Premier Brownlee and this government. So far as I know, the telegram which was sent granting that extension was accepted by the Alberta government and embodied in their agreement. That is our information. Had there been any change in the suggested amendment surely they would have notified us. It is only a few days since they passed the amendment and it may be that I have a complete text of the bill in my office; I am not sure. However, I believe I can assure my hon. friend that no change whatever was made and that the amendments are identical.


Joseph Henri Napoléon Bourassa: Then let us take that
for granted; that is one point. It seems to me that the correspondence exchanged between the federal government and the two provincial governments, or at least this cor-restpondence with the Alberta government, should have been published and distributed to the house just as was done with the other correspondence, which was supposed to enlighten us in the matter. I have here a small blue book which does not include the letter sent by the Prime Minister of Canada on December 29,	1928, reopening the negotiations.
Reference is made to that letter in the first letter from Mr. Brownlee which appears in

that correspondence, and surely for the information of the house the letter of the Prime Minister to which the Premier of Alberta refers should have been included.


Mr. MACKENZIE KING:: I think I can explain the omission. Last year all the correspondence was tabled up to a certain point, and this year a return was made of the correspondence which had taken place since the last tabling, and that is what was printed. Unfortunately the printing was followed literally; perhaps I should have personally gone over the correspondence in its printed form.


Joseph Henri Napoléon Bourassa: Then what has followed since this correspondence ceased on January 4? If I remember correctly the agreement with Saskatchewan was signed on March 20, so that correspondence must have been exchanged between the federal government and the Alberta government between January 4 and March 20 which caused this government to decide to submit an amendment to the agreement with Alberta. As far as I understand the case, Mr. Brownlee and his colleagues were perfectly satisfied to abide by the agreement they signed in December last.


William Lyon Mackenzie King: Yes.


Joseph Henri Napoléon Bourassa: That is clear; very well.
What we propose now, then, is not to give satisfaction to the Alberta government, because the Alberta government never asked for it; we propose to add something to the Alberta agreement for which the government of that province did not ask.


William Lyon Mackenzie King: My hon. friend perhaps misunderstood my affirmative response. When the agreement with Alberta was made, the Alberta government was perfectly satisfied and did not wish any additional feature. Subsequently, when the agreement between Saskatchewan and the Dominion was published, containing an additional clause to which Saskatchewan attached some importance but to the substance of which Alberta theretofore had not attached any importance, the government of Alberta felt that it might be placing itself in a false position and leaving itself open to criticism from certain quarters if it did not have included in its agreement the clause which had been added to the agreement between Saskatchewan and the Dominion government, and the government of Alberta accordingly asked that if possible this be done. It was promised to be done in the manner which is now being proposed.

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Joseph Henri Napoléon Bourassa: That is not a contradiction of what I was saying. I claimed that the Alberta government concluded an agreement with the federal government whereby both governments were perfectly satisfic'd with the terms, and later on the Saskatchewan government succeeded in wresting from this government-


William Lyon Mackenzie King: Not wresting.


Joseph Henri Napoléon Bourassa: Perhaps that is not the
correct verb. This government in its desire to be very pleasant-


William Lyon Mackenzie King: To leave no
grievance.


Joseph Henri Napoléon Bourassa: - to the Saskatchewan government, added to that agreement something which was not and which up to the present time has not been in the Alberta agreement. In other words, in order to make the two agreements complete we are asked now to implement the Alberta agreement by adding to it something which has been asked for by the government of Saskatchewan and which has been granted freely by this government. This forces us to an effort to understand the object of the Saskatchewan government, and to understand the additional clauses which have been added to its agreement, since that is to become the basis of the additional condition to be attached to the Alberta agreement. The amendment, which is very broad, reads as follows:
Subject to the proviso that in addition to the rights accruing hereunder to the province of Alberta the said province shall be entitled to such further rights, if any, with respect to the subject matter of the said agreement as are required to be vested in the said province in order that it may enjoy rights equal to those which may be conferred upon or reserved to the province of Saskatchewan under any agreement upon a like subject matter hereafter approved and confirmed in the same manner as the said agreement.
The first addition to the Saskatchewan agreement is that part of the preamble which is contained on page 2 and which recites the contention of Saskatchewan that its rights over the natural resources generally should not be dated from the creation of the province in 1905, but from the acquisition by Canada of the rights theretofore vested in the British government after the abandonment of its privileges by the Hudson's Bay Company. The Dominion government lends itself to the request of the Saskatchewan government to submit the cause first to the supreme court and eventually to the privy council. That provision is contained in clause 23 of the Saskatchewan agreement, and then in clause 24 there is the proviso which was analysed
by the Solicitor General (Mr. Cannon). But the Solicitor General did not refer to clause 27, which reads:
This agreement is signed on behalf of the province with the reservation on its part that neither the execution thereof nor any statute confirming the same shall affect or prejudice any right the -province may now have to call into question the legislative competence of the parliament of Canada to enact certain sections of the Saskatchewan Act and the Dominion Lands Act.
The contention put forth by the hon. member for St. Lawrenee-St. George (Mr. Cahan), risky as it may be in other respects, is good,
I think, in this particular. Once this agreement is ratified, with the amendment now proposed to the Alberta agreement, it will mean that any disposition contained in the Saskatchewan and Alberta acts of 1905 may be challenged by their governments, and that any enactment by this parliament as contained in those acts may be equally challenged in spite of the confirmation by the imperial government. In other words, on the one hand the imperial government says:	We confirm
this. On the other hand, as was mentioned by the hon. leader of the opposition (Mr. Bennett), the British North America Act of 1871 says, and we agreed to it, that we cannot further amend a constitutional act once it has been agreed to by both a provincial and the Dominion government. It will be now open at any time, in any year of any century, for these provinces to challenge the constitutionality of any section of the Alberta and Saskatchewan acts. I think it would be very unwise for the parliament of Canada practically to invite litigation for all time to come upon the constitutionality of its own laws. Whether these matters relate to lands, to schools or to waterpowers, it is an invitation to litigation.
I think the objection has been met with the retort that this right is an inherent one, that any disposition of law may be challenged at any time by government, corporation or individual. That is quite true, but if that right is illimitable both as to scope and as to time in which it can be exercised, what is the use of including it in this agreement? Are we going to recite in this statute the ten commandments? Are we going to repeat a number of platitudes in order to please this government or that government? Surely the Saskatchewan government have an object in mind. Surely they do not do this for the mere pleasure of having it recognized by the parliament of Canada that they hold the inherent right possessed by any government, corporation or individual to provoke a decision of a tribunal.
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Lucien Cannon: Assume for a moment that section 27 was not in the agreement. The Saskatchewan government immediately would be met by the objection that it could not plead to the constitutionality or validity of an act because it had agreed to an agreement which had been ratified and confirmed by the imperial parliament. It would be debarred from urging any ground of unconstitutionally, which is the very essence of their reference.


Ernest Lapointe: Section 27 is necessary if they are to have a reference.


Lucien Cannon: There could be no reference otherwise.


Joseph Henri Napoléon Bourassa: That is exactly the point I desire to make. It can be inferred from a statement made the other day, I think by the Minister of Justice (Mr. Lapointe), that this addition to the Saskatchewan agreement which is being extended to Alberta meant nothing. I have been told time and time again by persons close to the government-
_ Mr. CANNON: It does not add to their rights.


Joseph Henri Napoléon Bourassa: It was a mild satisfaction given to the Saskatchewan government, but as a matter of fact, even if it had not been inserted, the Saskatchewan government could always challenge the constitutionality of the act of 190.5. Now the Solicitor General tells us that if it were not for clause 27 the Saskatchewan government, and if this amendment did not pass, the Alberta government, would be deprived of certain things they derive from this. Then the first argument, that this adds nothing to their rights, falls down. It is either one thing or the other; either it gives something additional or it does not. If it gives something additional, then the government has given way to pressure on the part of the Saskatchewan government and has thus enabled the Alberta government to ask for something which it did not ask for, which it did not care to ask for. Therefore we are asked by an amendment made to a contract entered into in December last to add something new.


Lucien Cannon: I know my hon. friend wants to be very fair.


Joseph Henri Napoléon Bourassa: Yes, and more than that,
I want to elicit light and information.


Lucien Cannon: What I meant by my
previous remarks as to the effect of clause 27 is this: clause 27 has absolutely no bearing upon the rights of any citizen of Saskatchewan to contest the constitutionality or the validity of the act of 1905. Whether the clause is inserted or not, it does not affect those rights

at all. Clause 27 is only in connection with that part of the agreement which has reference to these questions which are to be submitted to the courts and unless clause 27 were in the agreement, we could not say on the one hand to Saskatchewan:	You cannot go before the
courts and discuss whether you have the right to take so-and-so before a royal commission, unless you reserve in the agreement that you can contest before the courts during that reference the validity of the acts of 1905 or the Dominion Lands Act. The clause is only in connection with the royal commission which will sit later and the reference which will be taken.


Joseph Henri Napoléon Bourassa: Then if clause 27 has no other object than to cover the questions that are to be placed before the supreme court, why not have in the agreement those questions that are so to be placed? Why not have made it a concrete and well defined issue? Why not have agreed with the province of Saskatchewan, and later on with the province of Alberta, to submit to the supreme court point A, point B, point C, and then say in clause 27 that this agreement, even if ratified by the imperial parliament, would not abridge the right of the province of Saskatchewan to have those questions submitted and adjudicated upon?
We are asked to ratify a broad, blanket clause with, I repeat, no limitation as to subject, no limitation as to time. Under clause 27 it is not only the reference mentioned in the previous clause, clause 23; it is any reference, any challenge upon the validity of any section of the Saskatchewan act. I repeat: it is an invitation to any government or to any individual to open litigation at any time. It is an avowal on the part of parliament that it is not prepared, as has been said very eloquently and solemnly during the debate, to close in a broad and generous spirit the issue that has been discussed for the last twenty-five years between Canada and those provinces; but on the contrary, we invite them not to close it. We invite them and anybody to challenge the validity of those constitutional acts. Of course I am not a lawyer, but I remember what my old friend Sir Charles Fitzpatrick, when he was Minister of Justice, told me more than once. Very often when he had a complicated piece of legislation before him, he said: "Bourassa, you are absolutely ignorant of law; will you read this and try to interpret it with common sense. This will help me out." I have formed the habit during the last forty years of reading statutes with what I can command of common sense, with what little knowledge I have of pa-rlia-

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mentary tradition and also with my little study of the glorious incertitudes of the law and the variations of jurisprudence. It may be that I am a little too incredulous; but even when lawyers and parliamentarians of high standing give me their assurance, at times I take it with a grain of salt, and I cannot get into my head what is the object-I do not mean the immediate object in the mind of the minister or the immediate object in the mind of Mr. Anderson; I am not looking for any sinister motive, as the leader of the opposition said the other day,-but the legal object, the legal interpretation that can be put upon clause 27. I read it again:
This agreement is signed on behalf of the province with the reservation on its part that neither the execution thereof nor any statute-
In other words, the imperial statute that will confirm this agreement will at the same time confirm this reservation.
-confirming the same shall affect or prejudice any right the province may now have to call into question the legislative competence of the parliament of Canada to enact certain sections of the Saskatchewan Act and the Dominion Lands Act.
Even after they have agreed under this to take certain sections of the Dominion Lands Act to be the basis of right, at least so far as school lands and school funds are concerned. Under this the Saskatchewan government or anybody in Saskatchewan may challenge the constitutionality of the four sections which we were told the other day were the permanent basis of the school fund and school endowment. Under this the government or anybody in those two provinces may challenge the constitutionality of any school law, especially of any school law that may be qualified as being governed by section 17 of the Saskatchewan and Alberta Acts. Why not have left the matter as it stood in common law and practice for all? Why not have left the matter as it stood in the Alberta agreement, thereby not abridging the right of either of those two provincial governments or of any citizen in those two provinces to take the ordinary course of law if it was felt anything was wrong?
For example, let us take the school clause. A decision was rendered by the supreme court some years ago as to the constitutionality of clause 17 of the Alberta and Saskatchewan Acts. As regards 'that opinion, rather, because it was really not a decision, expressed by the supreme court on the reference by this government, a reference which was not taken up and pleaded in counterpart by the government of Alberta, that same question can be
brought before all the tribunals in the land and reach the privy council at any time any citizen of those provinces may find means, as was done in the Manitoba school case, for example, the Barrett case, to have a private case created so as to bring about an adjudication on the part of the highest court of the land and the empire upon the constitutional value of that enactment. I think even the shining legal lights of the house will admit that in this I am expressing sound views. Therefore, the rights of the provinces were not abridged. I repeat: if they had their rights, why put useless words into the agreement, and, so to speak, invite litigation in the future? Why say, because from a certain point of view this is what it means, that parliament in this year, 1930, does not take the firm attitude that it believes in what it did twenty-five years ago?
Reference was made at a previous ^tage to the few members who remain in the house who were here in 1905 after the government had abandoned its previous position with regard to minority rights. After we had put up that fight in favour of the policy prepared by the government themselves, in order to enable the government, if possible, to stand by their own policy, we stood loyally by the decision of parliament. When three or four years ago I made allusion to the word of honour given by this parliament with regard to minority rights, I never meant that this parliament should go beyond 1905 and give rebirth to rights that had then been sacrificed, and I think uselessly sacrificed, by this parliament. But here we are doing more than that. We are practically inviting a contestation of what we did in 1905, and we are doing it at the request of a government which under its own provincial laws at the present time is doing everything it can to apply the law of 1905 in exactly the manner in which twenty-five years ago I predicted it would operate, and which all the legal lights from Sir Charles Fitzpatrick down, as well as Sir Wilfrid Laurier, said was absurd, that it would never operate in that way at all.
The hon. member for Bonaventure, with the best intentions, invited the testimony of Bishop Legal of Edmonton, and said that the bishop was given to understand that the law as passed in 1905, preserved all the Catholic public schools then in existence. But the legal basis of those schools was absolutely suppressed by the ordinances of 1892, 1896 and 1901. the first of which Sir John Thompson characterized as ultra vires. What we did in 1905 was to legalize the ordinances that had been declared ultra vires by the Minister
16SS
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of Justice of Canada, and to deceive the minority there by telling them that we were preserving what they had, whereas actually we were breaking the law; and what Premier Anderson is doing to-day is precisely to put into operation the law passed by this parliament in 1905. It is just as well to admit the facts as they are. Premier Anderson is, in a narrow minded and wrongful way-I think that like Premier Ferguson he will later see that he is wrong, and like Premier Ferguson I hope that he will be able to take a broader view of his own policy before very long- putting into operation, in a narrow-minded way, I repeat, the law that we passed here, and which has been described this afternoon as having been passed with the approval of the Bishop of Edmonton. If the Bishop of Edmonton were living to-day, I am sure that he would not say that what is now happening in Saskatchewan is what had been promised to him by the representatives of the government of Canada in 1905. I can assure the house that I know more about that feature of the situation than anybody here, including the hon. member for Bonaventure. I mention that simply to show that it is well to calculate the consequences of things done.
May I say, in passing, that I am happy to congratulate Mr. Brownlee upon the broad and statesmanlike spirit that he has shown in negotiating this agreement with this government after the crisis of 1926. I admit that in 1926 he let himself be carried away by a similar current to what is now flowing in Saskatchewan; but he had the patience and the courage to react against it. When the Prime Minister of Canada wrote to the Premier of Saskatchewan that this government was prepared to grant to the government of Saskatchewan terms exactly similar to those granted to Alberta, I think that that was the right thing to do. Why did not the government abide by their word? I observe that in the letter written by the Prime Minister of Canada to Premier Anderson on December 31, 1929, the Prime Minister compares the position of Saskatchewan with that of Alberta and says:
Our government stands ready immediately to make a similar agreement with the province of Saskatchewan.
That is, along the same lines as that recently made with the province of Alberta. Then, replying to Premier Anderson's suggestion that certain questions should be placed before the courts for adjudication, the Prime Minister adds:
Our government is quite ready to cooperate in obtaining a decision upon them by referring 
appropriate questions to the Supreme Court of Canada, whose decision would, according to the usual practice, be subject to appeal to the judicial committee of the privy council. In case such a reference were made, the matter of an agreement with the province would, of course, have to stand in abeyance pending the final disposition of the questions submitted.
That was the appropriate attitude to take. The Prime Minister of Canada, quite properly, expressed his willingness to meet the wishes of the government of Saskatchewan. Then, he said: You have a certain contention to put before the courts. Very well, we will put it before the courts, but before concluding the agreement and asking parliament to ratify it, we will have the legal questions settled first. Why did he abandon that prudent and statesmanlike attitude? In the interests of both the people of the west and the people of Canada at large, the less margin we leave to litigation and to political agitation in agreements of this kind, the better it is for all concerned; and surely it was not without some maturity of thought that the Prime Minister of Canada wrote under date of December 31, 1929, that the agreement would have to remain in abeyance until the legal questions were settled. That was a very proper position to take. It was similar to the position taken by Premier Brownlee himself in 1926 when he refused to accept the amendment proposed in this house until the supreme court had passed judgment upon it. It seems to me that this government should have stuck to that point, and if it had, the Alberta agreement would have gone through as it was signed. There would have been no dispute as between the government of Canada and the government of Alberta, and it would have strengthened the hands of this government later on in dealing with Saskatchewan; for I have confidence enough in the good people of Saskatchewan to believe that the wave of prejudice which is now passing through that province will subside; and then this agreement could have been concluded in a more serene atmosphere,-the legal questions having been settled-rather than putting it down in black and white that we, the people of Canada, enter into a solemn agreement with two of the great provinces of the west, but state in the agreement that some of its basic points are open to litigation and that we invite litigation upon them, and are in every way prepared to cooperate with our co-contractor in order to carry that litigation to the privy council. I think that that was a very weak position to take, and as far as I am concerned, I regret very much that it was taken.

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I think the least that should be done before this bill comes up for third reading would be to have brought before the house, and let it be known to the country, what are the questions to be submitted to the supreme court, and eventually to the Judicial Committee of the Privy Council. Here we are, the solemn and highest court of the land, a parliament equal in status to the mother of parliaments in England; and we are asked to ratify an agreement under which we invite litigation with two provincial governments, and with Tespeot to which it is admitted now that the questions to be submitted have been framed. Those questions are known by this government and by the governments of Saskatchewan and Alberta, but by nobody else in Canada, including the people of Saskatchewan and Alberta. I appeal to my friends on the other side representing those two provinces,-are they prepared any more than I am to vote blindly for having a reference made to the supreme court without knowing what questions their own governments have decided to submit? I do not suppose it is the intention of Mr. Anderson or Mr. Brownlee to set up a Fascist government in those provinces. I understand the spirit of democracy is strong and wide open in the western provinces. And for my part, though I am not much of a believer in democracy, I do not believe in secret government; and especially I do not believe in being asked to approve of submitting to the supreme court and to the Judicial Committee of the Privy Council questions on important constitutional issues, the scope and object of which I do not know, when at the same time I am informed that those questions are already framed but are kept in the secret closets of Ottawa, Regina and Edmonton. Therefore for the good of all I make a very urgent request to the government to bring down to the house before we reach the third reading of these bills the questions that are to be submitted to the courts, so that we will be in a position to know what we are legislating upon.


William Lyon Mackenzie King: I might answer my hon. friend as to the reasons why the government did decide not to await the answers by the courts before transferring the resources? It was perfectly apparent to the government that the agreements with Manitoba and Alberta would pass, which would mean that so far as the Department of the Interior was concerned that department would more or less pass out of existence.


Richard Bedford Bennett: Functus officio.


William Lyon Mackenzie King: Yes, it would practically pass out of existence, two thirds of it at 'any rate, and we would be keeping on a. department of the government simply for the purpose of awaiting the answer by the courts. That was one reason. Another reason was this: The whole purpose the government has had in view in these matters has been to rid the provinces of any possible sources of grievance. I do not believe we could have afforded the government of Saskatchewan more in the way of an apparent grievance than to have told its members that we would not let the province have its resources, that we would hold on to them, like a dog in the manger, until replies had been made by the courts in a matter which we had no doubt in the world would be decided along lines which I believe my hon. friend will agree are the only possible lines.


Joseph Henri Napoléon Bourassa: That was an afterthought; it came to the Prime Minister after he wrote the contrary on the 31st of December.


William Lyon Mackenzie King: Yes, it was
an afterthought, or a decision after further thought.
At six o'clock the committee took recess.
After Recess
The committee resumed at eight o'clock.
On the schedule-paragraphs 1 to 5.


Robert Gardiner: I wish to ask the minister the intention in regard to part of paragraph 2 of the agreement.
-and further agrees not to affect or alter any term of any such contract to purchase, lease or other arrangement by legislation or otherwise, except either with the consent of all the parties thereto other than Canada or in so far as any legislation may apply generally to all similar agreements relating to lands, mines or minerals in the province or to interests therein, irrespective of who may be the parties thereto.
I would like to have an explanation.


Charles A. Stewart: It means
that all contracts will be carried out in their entirety. The province agrees to carry out all existing contracts and all the provisions of the contracts except as for example in the case of a mining lease. The hon. member will recall the question raised the other day by the leader of the opposition (Mr. Bennett). In the case of a mining lease the royalty might be increased generally over the whole province.

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As far as grazing leases are concerned, they are in another category. They are for a definite number of years at a fixed rental, and this clause does not apply. This paragraph means that unless the lessee and the government agree by mutual agreement to change the contract or there is a general provision increasing or decreasing the royalty they must agree to carry out all the provisions of the contract.


Mr. CAMPBELL:: Would the minister tell us if there are any contracts for the granting of lands to the Canadian Pacific Railway Company for railway purposes, and if so whether that would be covered by this clause?


Charles A. Stewart: The Prime
Minister undertakes to carry out any obligation that is assumed by the federal government in connection with these resources at the time they are turned over; the provisions of the contract will be carried out with the exception of cases where general legislation would prevail.


Mr. EVANS:: I would like to ask a question regarding the last paragraph of the preamble. I did not realize that it had been dealt with. The section to which I refer states that section 21 of the Saskatchewan act shall be modified. Does that mean that that section of the act will be repealed?


Charles A. Stewart: We are dealing with Alberta now. Which section does my hon. friend refer to?


John Evans: The last clause in the preamble of the agreement contained at page 2. It says that whereas it has been agreed between Canada and the province that section 21-


Henry Herbert Stevens: You are looking at the wrong bill.


Charles A. Stewart: I cannot give my hon. friend a concrete example of any way in which the agreement might interfere with the existing Alberta act.


William Lyon Mackenzie King: The concrete example is the text of the agreement.


Charles A. Stewart: I do not know that the agreement does in any sense interfere with the act of 1905. Under the act of 1905 the natural resources remained in the control of the federal government; under this agreement they are to be transferred to the province and the act is changed to that extent.


Robert Gardiner: Coming back to the
question we discussed a moment ago, would

the minister explain what position an oil lease would be in when these natural resources are transferred to the province? Would it be possible for the provincial legislature to amend the contracts in so far as oil leases are concerned, or are they only temporary or for a specified time?


Charles A. Stewart: Mining leases and oil leases are in the same category; they are subject to fluctuations in royalties. Otherwise all the provisions of the contract would have to be carried out. That is, the terms of the contract, whatever the agreement was, will have to be carried out. If the province made a general regulation increasing the royalties on oil, it would apply to these leases but they have no more authority than we possess at the moment because we do not guarantee to keep the royalties at a fixed amount under the terms of the lease. The only exception to that is that grazing leases are for a specified term of years and on a rental basis.


Robert Gardiner: So that practically all
leases would come under the jurisdiction of the legislature except certain specified leases, which would be very few?
Mr. STEWART .(Edmonton): Quite right.


Mr. GEARY:: I wonder if the Solicitor
General would give me some information. This agreement with Alberta, and the other agreements relating to natural resources, treats the natural resources as lands, mines, minerals and royalties derived therefrom. Why is it restricted in that way? If I remember rightly the language of section 109 of the British North America Act is " lands, mines, minerals and royalties," not royalties incidental to lands and mines but all royalties, which include a great many rights of the crown such as escheat and bona vacantia. These are held by the crown in the right of the Dominion, and if the province is getting all its natural resources as described in section 109 of the British North America Act it should get these royalties as well.


Lucien Cannon: There is a difference in
language between section 109 of the British North America Act and the provision in the agreement, but I suppose the reason for the difference in the phraseology would be that section 109 simply said that all public lands remained within the control of the provinces, and there was no reason to add anything in connection with royalties. However, in the west the Dominion government has been drawing royalties, so that is probably the reason why this phraseology has been adopted. As a matter of fact there is another clause in the agreement, the number of which I have

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forgotten for the moment, which provides that moneys which are derived from these sources and paid to the Dominion during the period when the agreement is not in force are kept by the Dominion, and if the royalties are paid afterwards, even if there are arrears, they are paid to the province.


George Reginald Geary: Perhaps I have not made
myself cleaT. At page 2 of the bill you find section 1 of the agreement, which reads:
In order that the province may be in the same position as the original provinces of confederation are in virtue of section one hundred and nine of the British North America Act. . .
That is what you are designing-that is, to put this province of Alberta under the provisions of section 109 of the British North America Act. My point is that section 109 is in these words:
. . . .lands, mines, minerals and royalties . . .
Royalties in that section are not solely royalties incidental to lands, mines and minerals but include also all other sorts of royalties, for instance, escheat, which became of some importance once at least in the province of Ontario. This agreement does not transfer those rights to the province of Alberta as part of natural resources. Is it intended that they should get these resources as well? If so, they are not covered and you are leaving out something which by section 109 of the British North America Act is reserved to the other provinces. For instance, to my knowledge there have been two cases of some importance in British Columbia, wherein the province was able to attach to itself certain moneys. I think one case was connected with precious minerals and the other was a case of bona vacantia. There was no owner for certain things, and the crown took them. In the province of Ontario there was the Mercer case, where the property of the family reverted to the crown in the right of the province. Now, if you are following section 109 and intending to give to Alberta what that section reserves to the other provinces, I do not believe you are doing it under this provision.


Richard Bedford Bennett: The converse of that i3
equally true. The privy council decided recently under an escheat case that it went to the crown in right of the Dominion and not in right of the province, because of the peculiar conditions under which we hold title to our lands.


Lucien Cannon: As I stated yesterday,
naturally there will be many of these incidental questions which will arise, and these
2418-107J
questions will have to be settled between the Dominion and the provincial governments. I had quite a lot to do in the conferences which resulted in these agreements, and I believe that many unforeseen difficulties were suggested. My hon. friend now raises a point, and I have no doubt that these agreements will have to be supplemented later by further agreements or departmental arrangements.


John Evans: Does the Solicitor General think these words simply mean the royalties from the mines and minerals only or do they imply all royalties within the province, derived, from every source within the province?


Lucien Cannon: The word "royalty" doe#
not seem to be restricted. My hon. friend asks whether the word "royalty" applies only to mines and minerals or whether it applies
to royalties from any source whatever.


Henry Herbert Stevens: It is restricted by the
words "lands, mines, minerals and royalties derived therefrom."


Lucien Cannon: Yes, it would be royalties derived from lands, mines or minerals, precious and base, in the province.


John Evans: But there may be other
royalties arising in the province in addition to those from lands, mines and minerals.


Charles A. Stewart: May I point out to my hon. friend that the province already controls, under the autonomy act, practically everything but these natural resources which are specified, and I confess I do not get the point raised by my hon. friend. In the first place this agreement sets out that the interest of the crown in the lands, whatever it may be, of whatever sort or character, is transferred to the province. That includes the interest in the mines and minerals, and it would appear to me that the word "land" covers nearly everything that could come up.
Mr. GEAR! : It does not; that is the point.


Charles A. Stewart: Surely a
question of escheat involves land or property.


George Reginald Geary: No, that is not always the
case.


Charles A. Stewart: Of course I am not competent to argue that point, but there is an understanding between the federal and provincial governments that the province of Alberta is to be put in the same position as the other provinces of Canada with respect to its natural resources.
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George Reginald Geary: Perhaps the minister would
just look at it in this way: "royalties" is a broad word; it may mean the royalty from a mine or it may mean what my lawyer friends on the other side will call jura regalia, which are those ancient rights belonging to the crown, such as escheat. Surely that is a more comprehensive word than royalties derived from land. You are giving the province the royalties derived from lands and mines, but not royalties in the broad, large sense.


Charles A. Stewart: I am sorry I did not catch the first statement of my hon. friend. In what else than natural resources are we interested?


George Reginald Geary: I could mention a number of things. Royalties may produce moneys which belong to the crown and may not be connected with land. Gold, as distinct from coal and iron, is a royalty belonging to the crown and which does not go with the land. If my hon. friend wants a list, he can have it. They are such as fines, royal swans, flotsam and jetsam, escheats, and many others; there are a number of royalties which belong to the crown.


Richard Bedford Bennett: All prerogatives of the crown.


Mr. ELLIOTT:: They are given in the act.


Lucien Cannon: Section 3 of the act of 1905 reads as follows:
The provisions of the British North America acts, 1867 to 1886, shall apply to the province of Alberta in the same way and to the like extent as they apply to the provinces heretofore comprised in the Dominion, as if the said province of Alberta had been one of the provinces originally united, except in so far as varied by this act and except such provisions as are in terms made, or by reasonable intendment, may be held to be specially applicable to or only to affect one or more and not the whole of the said provinces.
Unless there would be exceptions in the act of 1905 covering what my hon. friend has just mentioned, I think they would belong to the province. So far as this government is concerned, our intention is to convey to the province of Alberta its natural resources and everything which would go with them.


George Reginald Geary: You will have to carry out that intention when the time arrives because there is nothing in there now.
Paragraphs 1 to 5 agreed to.
On paragraph 6.


Joseph Henri Napoléon Bourassa: Mr. Chairman, the letter which the Prime Minister wrote to Mr. Brownlee on December 29, 1928, contains this paragraph :

With respect to the school lands trust fund and the school lands, it is proposed that these shall pass to the administration of the province but shall be set aside and continue to be administered by the province for the support of schools organized and carried on therein in accordance with the laws of the province, but in compliance with the letter and spirit of the constitution.
That was the suggestion made by the Prime Minister to Mr. Brownlee when negotiations were opened regarding the transfer of these lands. As I pointed out the other day, this expression of the intentions of the government with regard to the school lands and fund was worded in exactly the same terms as were used at the Winnipeg convention, when a motion was adopted unanimously by the representatives of the Conservative party there assembled from all points in Canada. Whatever that expression was worth legally, I think it could be taken as an indication that this disposition would have received the approval of the whole house. I thought it was a very significant and hopeful sign that the Prime Minister should in his correspondence make use of the very same terms which had been used by the delegates to a Conservative convention. I was very happy to know that the two parties were coming to a point of agreement, not only in sentiment but in vocabulary.
Why were those words left out? Was it at the special request of Mr. Brownlee? Why do they not appear at the end of clause 7 of the agreement? Although couched in more precise language, this clause is practically the paragraph which I have just quoted from the letter of the Prime Minister, but with the last words left out.
As I pointed out this afternoon in discussing another subject, the words "in compliance with the letter and spirit of the constitution" either mean something or they mean nothing. Perhaps the Prime Minister should not be charged with this omission, because he is not a lawyer. But he has the habit of expressing himself, on constitutional matters, in very clear and strong language, and no doubt he had some idea in his mind when he included those words in his letter. I suppose the hon. member for St. Lawrence-St. George had something in his mind when he succeeded in having all of his party approve of those words. More than that, the late member for Fron-tenac-Addington, Hon. J. W. Edwards, who could hardly be accused of giving way to sinister designs on the part of the Roman Catholic hierarchy or the Roman Catholic minority, incorporated those very words in a motion presented to the house. I do not

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remember whether that motion went to a vote, but I know that it was received very favourably by the whole house.
But in spite of all that, those words have been left out. Why? Surely Mr. Brownlee does not intend to pass laws regarding schools which will be against the letter and spirit of the constitution. Surely it is not the intention of this government to agree that anything regarding schools or what little remains of minority rights shall not be respected according to the letter and spirit of the constitution. It seems to me that we should have an explanation of why these words have been left out.


Ernest Lapointe: Perhaps my hon. friend
will not object to my answering his question rather than the Prime Minister, because we lawyers are more responsible than he for these words having been eliminated. I know my hon. friend usually does not trust lawyers regarding these things.


Joseph Henri Napoléon Bourassa: I trust some, my hon.
friend especially.


Ernest Lapointe: Thank you. I know my hon. friend would be rather embarrassed in endeavouring to give a legal definition of the words, "letter and spirit of the constitution." One has only to read the speeches delivered last year on the motion of the late member for Frontenac-Addington to realize that the words "the letter and spirit of the constitution" can be interpreted in different ways by different people. The spirit of the constitution as interpreted in speeches delivered by the late member for Frontenac-Addington, by the hon. member for Toronto Northwest and even by the hon. member for Rosetown-and I read his speech in the debate of last j"ear-is very different from the spirit of the constitution as enunciated by the hon. member for Labelle and others. The term "the letter and spirit of the constitution" is very satisfactory to indicate a state of mind, but as to inserting it in a statute or other legal document, it is verbiage. I think it is safer to rely on law than on words such as "the letter and spirit of the constitution." The law is based upon the constitution; it is derived from the constitution. It is the constitution that gives the legislative power, and when you say it will be according to the law of the province, you say as much as is necessary to make it according to the constitution.
There is still less danger, so far as the point of view of my hon. friend in regard to the matter is concerned, as there is a judgment of the Supreme Court of Canada defining
the constitution, and the law of the province is of course what the constitution says it must be. I think counsel representing both sides to the agreement in the various provinces were right in inserting the words as they are in the agreement and eliminating the others, which not only were not necessary, but, if they could serve a purpose in a resolution or speech, would rather confuse the issue if put into a statute or other legal document. That is my honest opinion in regard to the matter.


Joseph Henri Napoléon Bourassa: I do not want to prolong the discussion unduly, but I beg respectfully to remind my good friend the Minister of Justice of one feature of this question. As I said soto voce and as I say now in full voice, he is one of the lawyers in whom I have much confidence, especially when he makes use of his native common sense to interpret his own law. If this were a text of law; if this were a piece of legislation, there would be much in the argumentation of the hon. gentleman. But this is first an agreement; it is only to be ratified by law. Again I rely with not too much hesitancy or humility upon my experience by reading and otherwise. It is a good thing at times to introduce into a contract-and this is done frequently in private as well as in public matters-between individuals and governments such words as help in governing the interpretation of what might be called the strictly legal enactments of that contract. What I have in mind is this: Frequently it has been stated that under our constitution public education is a matter exclusively provincial with the exception of reservations contained in section 93 of the British North America Act. If my personal sentiments were concerned, if we had to draft the constitution of the country to-day, I repeat now" what I have said time and again, namely, that I would never think of introducing into the constitution of Canada that involved and obscure section 93 which has not protected the minorities when their rights were attacked by brutal majorities, but which has given rise to so many useless political and racial struggles. But it must not be forgotten, it must be repeated once in a while, especially for the representatives of those parts of the country w'hich are largely populated by newcomers, that section 93, which was restated in section 22 of the Manitoba Act and which was restated in a much modified form in those two sections 17 of the Alberta and Saskatchewan Acts, was not introduced as a principle of the constitution at the request of the Roman Catholics or the French of Lower Canada or

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of the other provinces. On the contrary, they made it quite clear that they were prepared to run a risk and accept in practice as well as in law the principle of absolute provincial autonomy in matters of education.
It was in London, in what has been called the Treaty of London, that the delegated representative of the Protestants of Lower Canada, Mr. Galt, later on Sir Alexander Galt, who had resigned from the government for that very purpose, insisted on inserting in the constitution a section which made of education a matter by itself. When Lord Carnarvon, then Secretary of State for the Colonies, explained the bill in the House of Lords in what remains the most illuminating of all British parliamentary explanations of our constitution, he made it clear that legislative powers were of three classes: those reserved to the central government, by section 91; those reserved to the provincial government by section 92, and education, which formed a subject by itself, not to be under the exclusive jurisdiction of either the provinces or the federal authority. Any hon. gentleman who tries to understand the spirit and letter of the constitution as it was imposed upon us at the request of the Protestant minority of Quebec and for its protection, will realize that education was made, so to speak, a mixed matter under the usual jurisdiction of the provinces but under a sort of paternal control on the part of the federal government. I repeat; so far as I am concerned I do not think this should have been done, but it was done. It was done primarily for the protection af the Protestant minority; but naturally, although this might have been in the minds of some, nobody avowed that there ought to be one law for Protestant minorities and another for Catholic minorities, and therefore it was made to operate in behalf of all minorities.
Likewise it is under the guiding spirit of that abnormal, extraordinary section that the law of 1875, to which I referred the other day, was passed unanimously by parliament for the protection for all time to come of minorities, whether Catholic or Protestant, in the Northwest Territories and the future provinces to be created therein; and it is that basic principle which has been to a large extent broken and unfulfilled in passing the laws of 1905. I repeat those things once more, not for the pleasure of reopening an old debate; but since it has been reopened and presented in various forms, it is just as well we should realize the whole basis of it.
Therefore, in order to have a clear and intelligent interpretation of that clause which
IMr. Bourassa.]
is supposed to maintain what-and it is very little-remains of the rights of minorities of those two provinces, I think it would have been a good thing to introduce those words, of the Prime Minister, in his letter of December, 1928, although I admit with the Minister of Justice that they would not have had any strict legal bearing; but they would have bad, so to speak, a moral bearing. I have read time and again decisions of the privy council where words that had no peculiar legal significance were taken as throwing light upon the intention of the parties to an agreement or of the legislature. In that sense, words which may be of little legal vailue may acquire great indirect value in the interpretation of the law.
I credit the Prime Minister with this:	He
is full of sense. I have had occasion on many times, as have both his friends and his opponents, to realize that he has a broader and surer grip of constitutional issues than many lawyers. That is very often the case in connection with constitutional enactments; and surely he had something in his mind when he wrote that. Surely, on the other hand, the hon. member for St. LawrencenSt. George -I am glad that he is not present at the moment because I feel freer to say this, that he is a broadminded Canadian, and a man with much experience in the interpretation of law, both constitutional and ordinary law -surely he had something in his mind when he made use of the same words. The Minister of Justice says that these words are good for speeches. But they are not in a speech. They are in the letter of the Prime Minister of Canada, opening up a new correspondence with one of the provincial governments and laying down the basis of this agreement. I have read that correspondence very carefully; I have read with particular ipleasure the correspondence exchanged between the Prime Minister and Premier Brownlee, because evidently throughout that correspondence there is a frank and loyal effort to achieve an agreement that will fulfil the desires of both parties. I repeat, there must have been some reason for putting in those words, and there must have been a motive for taking them out, and that is what I would like to have made clear.


William Lyon Mackenzie King: I thank my
hon. friend for his kind personal reference. I am afraid that in this matter I was more or less subjeot to the same sort of feeling with respect to my colleagues as he has been generous enough to express towards myself. The view seemed to be at the time the communication was sent that the particular words

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mentioned were not essential in a contract or legal document; that while they might and would have an important bearing in a resolution or in a speech, they would neither add to nor subtract from the value of the agreement itself. A.t all events that was the representation that was made to me by the legal minds which had a part in the drafting, and I confess that I accepted that view. But I rather incline to the point of view of my hon. friend that occasionally a little additional general phraseology is a good thing.


Joseph Henri Napoléon Bourassa: Better stick to your own point of view:	As I want to be absolutely
frank and straight with everybody, I may say that I have given a good deal of thought and study to another point raised by the hon. member for St. Lawren-ce-St. George with regard to those four sections of the Dominion Lands Act mentioned in this clause 7 of the agreement. When I read the agreement first I felt as he did, that it was rather strange that the word "inclusive" was not mentioned. But I studied it as -carefully as I could, and I must say that the arguments of the Minister of Justice and of the Solicitor General have practically dispelled my doubts and confirmed my opinion. Upon this point, but not upon the other, 3 think they are right.
May I add this, which I called privately to the attention of my hon. friend from St. Lawrence-St. George after he had made his argument. Not only does it seem impossible to make application of these four sections without taking the four of them together, not only is it impossible to deal with the fund arising out of sale of lands without reference to clause 40, but it seems to me that there is another very strong argument to be made on this point. Everybody admits that clause 37 must apply. That is the clause under which two sections of land in each township are set aside for the purpose of forming the basis of the endowment and provision is made for the sale of those lands. Then the clause ends with these words:
The sum realized from such sale shall become part of the school fund, as provided by section forty of this act.
If it is admitted that section 37 must govern the sale of the lands, then the whole of that clause applies; and the provincial government in binding themselves to reserve these lands and offer them for sale under clause 37, at the same time bind themselves to place the fund under the governing sentence at the end of clause 37, and in order to do that they must make use of clause 40. So, as far as the application of the four clauses is concerned, I do not think that there can be any doubt that
all four apply. I content myself with adding this argument, which struck me when reading the clauses, and which I think confirms and strengthens the argument presented by the Minister of Justice and the Solicitor General, namely, that you cannot separate the four clauses. Not only do they form one section of the act, not only must you make use of all four in order to interpret clause 7 of the present agreement, but you cannot make use of the governing clause, which is clause 37, without immediately putting into operation, so to speak, clause 40.


George Reginald Geary: Surely it says so on the
agreement.


Joseph Henri Napoléon Bourassa: Perhaps my hon. friend did not follow the discussion the other day, when doubts were raised as to the application of clause 40.


George Reginald Geary: Why should it not apply?


Joseph Henri Napoléon Bourassa: I was convinced that it
did apply, but I thought that I would add this further argument to strengthen what had already been said in that regard.


George Reginald Geary: It does not hurt it anyway.


John Evans: I read in the second paragraph of the preamble:
And whereas it is desirable that the province should be placed in a position of equality with the other provinces-
I take that to mean a position of equality constitutionally. The Prime Minister has repeatedly stated that the western provinces are to be placed in a position of equality with the other provinces, and if we are to have equality I am wondering why these words, referring to the school lands and the school lands fund, are put in clause 7 of the agreement:
The school land fund .... shall be set aside and shall continue to be administered by the province in accordance, mutatis mutandis, with the provisions of section 37 to 40 of the Dominion Lands Act, for the support of schools organized and carried on therein in accordance with the law of the province.
Sections 37 to 40 deal with nothing else but the school lands and the school lands fund. Am I to understand that these school lands and the school lands fund are still to be controlled by the Dominion government.


Some hon. MEMBERS:: No.


John Evans: - or are we to be placed in a position of equality -constitutionally with the other provinces?


Some hon. MEMBERS:: Yes.
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John Evans: Now, I do not see why those two lines are in that clause, if that is the meaning and if the (promises of the Prime Minister are to be taken seriously. As to the words quoted by my hon. friend from Labeille (Mr. Bourassa) from the Conservative resolution passed at Winnipeg, I have no objections at all to their being placed at the end of this section, because then we shall be in a state of equality with the other provinces. I am willing that those words shall go into the agreement and so carry out its purpose in compliance with the letter and spirit of the constitution. But if we are to be constitutionally equal to the other provinces, we are free from the Dominion Lands Act, are we not?


Charles A. Stewart: I do not
follow the point my hon. friend is making, unless he may think there is, by design or otherwise, some change contemplated in the existing administration of the school lands and the school lands fund. The province takes them over and administers them in exactly the same manner as the federal government are administering them now. That is all that is meant by the clause. May I say to my hon. friend that the transfer of the school lands and the school lands fund is from the control now exercised by the federal government, to be administered by the province in exactly the same way; there is no change.


Mr. SPEAKMAN:: I assume the member
for Rosetown has reference to this, that while the school lands and the school lands fund will be administered by the provinces they will be administered under the terms of a Dominion act. That at least is as I caught his meaning.


Ernest Lapointe: According to the law of the province.


Alfred Speakman: To be administered
under the terms of a Dominion act, which would not leave them absolutely free of Dominion control.


John Evans: My meaning is that sections 37 to 40 of the Dominion Lands Act are not included in the constitution and they do not apply to school lands other than those in the western provinces. Let us get on a footing of equality constitutionally in this as well as in everything else. Will the member for Labelle (Mr. Bourassa) say that these sections will apply to any school lands in the province of Quebec or in the province of Ontario?


Joseph Henri Napoléon Bourassa: No, for the excellent
reason that there are no school lands in those provinces.
(Mr. Evans.]


John Evans: Then we are not in a state of constitutional equality.


Joseph Henri Napoléon Bourassa: Yes, I made that precise point at Edmonton. There I met a few legal and political gentlemen who told me that they had never thought of tha/t aspect of the question. For example, in Ontario there were the famous clergy reserve lands of the Church of England which agitated the old legislature of Canada for years. A settlement was finally reached, and the province had to agree to the consequences of that settlement with the Church of England and the other Protestant bodies. That question did not arise in Quebec. But in Quebec we had the famous seignorial tenure. The seigneuries were parcels of land carved out of the domain of the French crown and handed over to certain concessionaires who were called seigneurs, but who were as a matter of fact colonization agents for the French government. The English government decided to maintain those seigneuries, and it took eighty years to settle the question. The province of Quebec was bound in 1867 by that decision. These various land questions have been differently treated in the various provinces because of the different circumstances under which those questions had arisen. If school endownments had been created in Upper and Lower Canada by the proper authorities previous to confederation, no doubt we would be obliged to abide by what was then done. For example in settlement of the seignorial question in Lower Canada certain sums of money were levied upon certain parts of the province to extinguish those rights, and were granted to the townships. I remember when I was in the old county council of Ottawa some forty years ago we were still deriving from the treasury of Quebec a small sum arising from that fund, which had been created by another body before the birth of confederation. In the case of the western province those school lands reserves and that fund were created, as I explained the other day, by the parliament of Canada. Whether we consider the parliament of Canada as acting as a sovereign body or as a trustee, nobody, I believe, questions the then obligation of the parliament of Canada to make provisions for education and its right to create that school endowment; and now the provinces inheriting those lands inherit the obligations connected with them, just as my friend, if he purchases a mortgaged property, is bound to pay the mortgage, because he becomes owner of the property subject to that encumbrance.


Alfred Speakman: There is just one point, Mr. Chairman, that I rather deprecate in the

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argument of the hon. member for Labelie, in that his whole contention appears to me to be based upon a somewhat vague distrust of the fairness of the people of those provinces.


Joseph Henri Napoléon Bourassa: Oh no, my friend is entirely wrong.


Alfred Speakman: Then if there is complete confidence in their fairness and justice and good will, it does seem to me that this question, as other questions, might very well be left to them to be dealt with. I have lived there almost all my life and I never heard the question brought up as an issue until it was introduced and discussed in connection with this very matter. There has been no feeling of that kind in the west. I think the hon. member for Labelie and the house as a whole can trust the sense of justice and fairness to the people of Alberta and Saskatchewan and their respective governments to deal generously and fairly with every class of the community.


Ernest Lapointe: That is really what is
being done.


Alfred Speakman: I quite appreciate that in the terms of the agreement. I am applying my remarks rather to the argument of the member for Labelie.


Ernest Lapointe: That is really what is
being done. It is a mark of our confidence in the two provinces that instead of keeping this endowment fund here we are transferring it to them.


Alfred Speakman: Precisely; but I felt the argument of the hon. member for Labelie was based, perhaps unconsciously, on some distrust of what might be done by the people of those provinces were they left with an entirely free hand to deal with the matter as they thought fit.


Joseph Henri Napoléon Bourassa: No. I think my hon.
friend gathers that from the silly things that have been circulated in his province of what I never said in this regard.


Alfred Speakman: No, I was basing my remarks on the argument of my hon. friend this afternoon.


Joseph Henri Napoléon Bourassa: My argument is in
advance of the position held by my hon. friend, because I have stated that if I were free to deal with the matter I would suppress everything which goes against autonomy in matters of education. I simply say that the principle, having been laid down in 1867, should be maintained in all the provinces according to the various circumstances of each. That is all my argument.


John Evans: Mr. Chairman, again I should like to ask the Minister of Justice (Mr. Lapointe) if section 7 does not recognize a Dominion suzerainty over the provinces of the west regarding their school lands and school lands fund-


Ernest Lapointe: Not at all.


John Evans: -and does it not preclude the possibility of the Dominion Lands Act being repealed so far as those provinces are concerned and being replaced by a provincial enactment?


Ernest Lapointe: I really cannot understand what my hon. friend has in mind in that respect. I think he ought to be satisfied in every way. The school lands endowment has been considered as a trust from 1872 and I think the population of the west is quite satisfied to have the lands continue to be set aside for the purposes of education. Of course it was under the management and administration of the Dominion government and in the right of the Dominion so long as the 'lands were under the control of the crown. The various public men of Canada from Sir John A. Macdonald down to the present time have said that this was to be preserved as a sacred trust for education. This act will respect and preserve the endowment; those lands will be transferred to the province; they will be under the management of the province and they will be administered according to the laws of the province. Who can complain about that?


George Reginald Geary: I think my hon. friend believes that -the reference to the Dominion Lands Act keeps these lands under the authority of the Dominion parliament; that is what is in my hon. friend's mind. He believes they are to be administered in accordance with certain sections of the Dominion act, and fears that the Dominion jurisdiction over these lands is continued by that reference.


Ernest Lapointe: My hon. friend knows
that the province will have full control.


George Reginald Geary: I am trying to interpret the idea of the hon. gentleman who has just spoken.
"Mr. BENNETT:	The remarks of the hon.
member for Labelie (Mr. Bourassa) as well as those of the Minister of Justice (Mr. Lapointe) prompt me to make a few observations in order to correct certain views as to the history of this law. The hon. member for Labelie referred to section 93 of the British North America Act. That section provides for remedial legislation by parliament in the
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event of the rights of minorities being taken from them by provincial legislatures. That is, if minority rights in the province of Manitoba were taken away from the minority by the provincial legislature, and the province declined to redress that wrong, there is power given to the parliament of Canada to pass remedial legislation. When the hon. gentleman made a reference to the struggle for the rights of minorfties I felt I would be remiss in my duty did I permit the statement to be made in this parliament without some contradiction that the hon. gentleman and those who are now his friends were entirely responsible for the protection of what they have called minority rights.
Let us look at the history of the transaction. In the constitution of the province of Manitoba there is a provision whereby the rights of minorities are protected. Those rights were disregarded by a Liberal administration. Not only were they disregarded by a Liberal administration but that Liberal administration under Mr. Greenway and Mr. Sifton swept the province on two occasions with violent cries such as you will find similar record of in few parts of this North American continent. When they had again reasserted the claim to deprive the minority of their rights and appeals were made with respect to disallowance, their answer was simply to reenact the statute. Just as often as any effort could be made to restrict or lessen the power exercised by that legislature, just as quickly did the legislature reenact a statute depriving them of the rights. I do not rest that statement merely upon my allegations. The privy council decided in the Barrett case that the rights of minorities had been taken away by the legislature of Manitoba; that legislature was a Liberal administration. Manitoba was under the control of a Liberal government, and the appeals which were made must be in the mind of every member who has read the papers of that day or who has read the subsequent discussion which took place in respect to the matter in question. After the privy council had decided that minority rights had been taken away by the Liberal government in Manitoba in consequence of a campaign bitterly waged by Mr. Greenway and Mr. Sifton, a separate appeal was made to the privy council to decide whether or not under the provisions of section 93 there was a right in that minority to appeal to this parliament for remedial legislation. Although Sir John Thompson had died just after the publication of the judgment, his successor in office had to deal with the problem. Legislation granting remedial rights was introduced into this parliament by the
rMr. Bennett.!
government led by Sir Charles Tupper, at a time when Mr., afterwards Sir Wilfrid Lau-rier was leader of the opposition. This legislation was introduced under the British North America Act. What happened? The Liberal party of that diay, there being no limitation to speeches and no closure rules, talked the measure out of existence. The measure died in time and the rights of the minority which were taken from them have never been returned-never. It is true that after the Liberals came into power they took certain diplomatic steps. A gentleman who later became Cardinal Merry del Val came to this country to make an investigation and report. As a result an arrangement was arrived at but the rights of the minority were never returned to them by the Liberal administration of the province of Manitoba.


Mr. LUCAS:: Have those minorities suffered any as a consequence of not having those rights?


Richard Bedford Bennett: As to whether they have suffered I have no idea; I do not live in Manitoba and I am not in a position to express an opinion. I am merely stating historical facts. It seems to me that when the hon. member for Labelle and some of his friends so vigorously attacked the party with which I am now associated they forgot at least the historical basis. The Conservative party suffered defeat in the ensuing election, largely at the hands of the people of Quebec; although Ontario had been denounced in certain sections as being opposed to granting minority rights, that province returned a majority in support of the administration. From 1896 until to-day there has never been an occasion when the province of Quebec has not returned a majority in support of a Liberal administration as opposed to a Conservative administration. So when the hon. gentleman talks about minority rights I would like to remind him that the historical basis is not such as to induce any party to be very much concerned about its protection.


Joseph Henri Napoléon Bourassa: That is exactly what I said yesterday.


Richard Bedford Bennett: Well, all I can say is that the hon. gentleman has a very strange way of expressing himself.


Ernest Lapointe: My hon. friend knows very well that we were discussing the Saskatchewan and Alberta situation; he is now going back to Manitoba.


Richard Bedford Bennett: I am coming to this section.

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Ernest Lapointe: The whole discussion took place on a speech made by the hon. member for St. Lawrence-St. George.


Richard Bedford Bennett: I will give the hon. member some facts as to my own experience. I supported the remedial legislation of 1896 and I voted and worked for the Conservative party of that day. Why? Because the constitution of this country is something not lightly to be disregarded or set aside; until it is changed I will support it. If it is necessary to change it we can do so by the methods and means provided by law, but as long as it stands I will not set it at naught. I was a young man then-much younger that I am now-


Ernest Lapointe: Oh, you are still young.


Richard Bedford Bennett: No, I am not, I am sorry to say. At any rate I have stated the historic facts. Sir Wilfrid Laurier declared time and again in this house that no one should interfere with the rights of the provinces with respect to education. I had no idea that the demands w'ere so strong until my attention was directed to them a few years ago. The Minister of Justice referred to the fact that he had been in the house in 1905, and in that year when Mr. Borden in this house by proposed amendments sought to have it declared that the provinces should have complete control of education, the Minister of Justice will recall that the restrictions imposed by section 16 of the original act of 1905 were amended and the restrictions of section 17 substituted therefor. Those restrictions, as the minister very properly stated the other day, are somewhat less strong than the restrictions of the original section 16. That was a direct violation of the principles which the Prime Minister of that day had enunciated when in office, namely that the province should have complete control of its educational matters. The new province-


Lucien Cannon: Having regard to vested rights.


Richard Bedford Bennett: That is not the point he made then, because there were vested rights in Manitoba and the privy council so decided in 1896. But the prime minister of 1905, the leader of the opposition of 1896, asserted, as my hon. friend the Solicitor General will find by looking at the Hansard of that day, in terms so strong, so vigorous and so far-reaching that there may be no question of equivocation about them, that the provinces should have the right to deal with the question of education. The hon. member for Labelle said to-day during his observations that that was so, because he had been in the house, not in
1896 but in 1905, and he complained that too wide a construction had been placed upon that general expression of power on the part of the provinces.
Then what happened? In 1905 sections 17 of the acts as they now stand were passed, and the contention was raised that these provisions were beyond the legislative competence of this parliament because they did restrict the free exercise of power by the legislature of Alberta or the legislature of Saskatchewan. That question was referred to the Supreme Court of Canada, and last year that court decided that the power was properly exercised and that this parliament had the power to act in the manner indicated.
The bill now before the house provides in terms that there shall be a right to go to the court of last resort to have that question settled, as the hon. member for Labelle has properly said, and these agreements merely mean that in the signing of them such execution is without prejudice to the rights of the province to have that question determined. Perhaps I might make use of a term which I do not know is much used in civil law but which we common law lawyers use frequently; a certain event may happen or a certain thing may be done without prejudice to the rights of the parties, whatever they may be. The right to litigate is a right inherent in citizenship; any citizen can question the legality of the exercise of power, and it would not be necessary to have inserted these words "without prejudice"-I am now using what I might call a mere summary of the words-were it not for the fact that if these agreements in turn were ratified by the privy council as they stood without the provision as to its being without prejudice, the effect would be that it could be no longer litigated. That is all that is meant by it, and the only reason why the province of Alberta has asserted these rights as defined by the section in question that now has been added as an amendment to the operative part of the ratifying statute is because the province of Alberta would naturally obtain the benefit of any such decision were it not for the possible fact that the ratification of the agreement with Alberta might make it no longer open to question, whereas in the neighbouring province it would be open. The only effect of this amendment is to declare that in the event of there being litigation whatever happens with respect to the one shall also inure to the benefit or to the disadvantage of the other. That is all, and the words which have been used are used merely in a legal sense. It its not always wise to think that lawyers are a great detriment to a country.

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Ernest Lapointe: Or to society.


Richard Bedford Bennett: Or to society. My hon. friend is a student of history; he realizes that such rights and liberties as the people enjoy in this country to-day have come down through the ages largely through the sacrifice and the courage of men of the profession to which my hon. friend and I belong, men who, whatever may be their failings-and we all have them-at least had the courage at critical moments in the development of our constitution in the motherland to assert that no sovereign, no matter how great he might be, could over-awe or induce them to do other than their duty with respect to matters of important public concern. When a great king said to one of his attorneys general that he as a judge must do so and so, the judge replied. "Your Majesty may be able to find twelve men who will do this, but you will not find one lawyer," and he would not associate himself with the matter. That was an exercise of great courage by a man who was prepared to sacrifice life itself in the preservation of what he believed to be the rights given by law to the citizens of the country. I might ask my hon. friend from Labelle what would happen to the legislation of this country if we had no lawyers.


Joseph Henri Napoléon Bourassa: Oh, they have their usefulness.


Richard Bedford Bennett: They have their usefulness, and of course those who criticize them have their usefulness as well, because they cause lawyers to have even a higher sense of their obligations. However, may I say that in the ultimate analysis all laws depend for their value upon judges. The third great branch of our institution, the judicial branch, determines, interprets and construes what are the rights and privileges under the. laws as they are, and therefore it is of the finst importance that we should endeavour so to utilize the great power we have to provide that the language effectuates the intention. In this instance the addition of this clause to the Alberta agreement is to effectuate the intention that there shall be no difference between the two provinces and that, if in the end the province of Saskatchewan carries on litigation which inures to its benefit, a corresponding advantage should inure to the neighbouring province, and that the mere failure to add certain words should not make the constitutions of the two communities different in case of ratification of one which included the words and of the other which did not.

That is all we are endeavouring to do in this instance, but it is of great importance to remember the only point I was trying to make to the house. When in the province of Manitoba the Liberal government of that day took the course it did and swept aside the rights of the minorities, appealing to the people, whenever there was a threat of their legislation being disallowed or otherwise dealt with, for a re vote of their confidence in the government of that day, they brought about a condition in this country from which we have not yet entirely recovered. I recall that one of the most eminent lawyers in Alberta, a gentleman who subsequently became a judge and who since has passed to his reward, said, "Bennett, why do you concern yourself about these bills? Do you not realize that after the Manitoba case, whatever the majority want to do in Alberta they will do?" He was speaking as a close student of, and a real authority upon, the constitution, and that is the injury that was done to this country by the proceedings of 1896.
We did this: We swept aside constitutional safeguards and, by an appeal to the people, secured a verdict which said that the Conservative party, in endeavouring to stand by that constitution, should be swept out of power, as they were. By so doing we declared against the validity and value of a constitutional safeguard for minorities. That is what we did, and if there is one thing more than another of which those who profess the Conservative faith have reason to be proud, it is this: However great the inducements may have been-and they were great-to have them depart from what they believed and knew to be the constitutional pathway as defined by the privy council, the court of last resort, in the two great cases that went from Manitoba, they did not swerve by a hair's breadth from 'their duty but marched to their doom at the hands of the electorate, because they were thereby safeguarding the rights of minorities and putting themselves forever upon record as standing by the constitution of this Dominion. By that they still stand.


Milton Neil Campbell: All through this agreement the lands are referred to as passing into the administration and under the control of the province, the word "ownership" not being used. I would like the minister to explain if ownership actually is intended?


Ernest Lapointe: The Solicitor General
explained yesterday that the ownership is really in the crown. The crown acts in different ways; here it is the crown in the right of the Dominion; in the province of Quebec

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it is the crown in the right of the province of Quebec, and in Alberta it is the crown in the right of the province of Alberta. The crown cannot very well transfer ownership from itself to itself. That is why those words are used; it is merely a legal way of expressing what my hon. friend has in mind. In practice, the ownership will be in the province.


Milton Neil Campbell: That is, the federal
government is conferring all it possesses.


Ernest Lapointe: Exactly.


[Stage Direction]
Paragraph agreed to.
On paragraph 8.
Richard Bedford Bennett: Has this paragraph been
considered in the light of my statement the other day as to what I conceived to be the facts?


Ernest Lapointe: There is much in what
my hon. friend said the other day, and obviously some other step will be taken after this has been approved by parliament. Whether that step will be contained in the address asking for imperial legislation, or by means of a Dominion statute, remains to be decided. We are asking parliament to ratify these agreements with the provinces, and legislation will be adopted to give effect to every provision.


Richard Bedford Bennett: This seems to me an opportune occasion to repeat what I mentioned the other day. We deal with these matters by drafting and enacting a statute of this parliament. We have received a contract which has been ratified and approved, that contract representing the considered views of the province and the Dominion. There being an agreement as to the terms upon which the transfer is to be made, we then proceed, as we did with the old Manitoba Act, to pass a statute. We ratify the agreement, and have the statute ratified in Great Britain, as was done with the Manitoba Act. That is, the first section would declare that all lands, and so on, are now vested in the crown in the right of the province, and then it would continue to the end. That statute would repeal section 6 of the Irrigation Act, and that section of the autonomy act of 1905 which says, "inasmuch as the provinces will be without their lands"-


Charles A. Stewart: The Irrigation Act can be repealed by this parliament.


Richard Bedford Bennett: We would pass a statute which would be beyond our legislative competence, as was the case with the Manitoba Act. That statute would then be ratified and confirmed at Westminster, as was the case with the Manitoba Act.


Ernest Lapointe: Does my hon. friend
say that the Manitoba Act was beyond our competence? I know that doubts were expressed to that effect.


Richard Bedford Bennett: They thought it was; I
will put it that way.


Ernest Lapointe: The law officers of the
crown were not of that opinion.


Richard Bedford Bennett: The law officers of the
crown in Great Britain had grave doubts when they were asked for an opinion in respect of it, and it was recited that there were doubts as to its validity.


Lucien Cannon: You mean by the imperial act.


Richard Bedford Bennett: Yes. If this agreement
is sent to Great Britain we cannot ask with any force and effect for validation of the agreement because there is still left outstanding the sections of the autonomy bill and of the Irrigation Act. .The question will arise as to our power to repeal that section of the autonomy bill, because it can be done only by an imperial statute. If we completed the whole transaction by enacting a statute after the agreement had been ratified, we would meet the difficulty. I do not offer this from any party standpoint, but because I have been trying to find some method of dealing with this matter. It was only in the middle of the other night that a solution came to my mind.


Ernest Lapointe: Was i't a dream?


Richard Bedford Bennett: No, it was not a dream
like I had at Winnipeg; it was a real fact. I had not been ahle to sleep, and I was going over in my mind what had taken place during the day. I still think that the law officers of the crown will find that that is a most convenient way to deal with the transaction. I do not make this suggestion in any spirit of 'partisanship, but rather from an earnest desire to see a fact accomplished after the letter of the law has been fulfilled. If we are not careful, we will ratify the agreement and find that no resources have been transferred in law.


Ernest Lapointe: You mean as far as the waters are concerned?


Richard Bedford Bennett: Yes, and with regard to
one or two other matters which stand in somewhat the same position.


Ernest Lapointe: AM those things will be fully considered.


Richard Bedford Bennett: There is no doubt that
it was the intention of the parties that the water powers should be vested in the province.

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Ernest Lapointe: No doubt about that. Paragraph agreed to.
Paragraphs 9 to 16 inclusive agreed to.
On paragraph 17.


Mr. GERSHAW:: Would the minister
explain this paragraph? It states:
-except so far as the same are agreed to be uncollectible,
Who is to decide that they are uncollectible?


Charles A. Stewart: That will
be decided by agreement between the minister in charge in the federal government and the officers of the provincial government. As my hon. friend knows, at the present time a board is dealing with somewhat similar conditions, and it is not likely that the federal minister or the federal officer in charge of this matter will acept without complete knowledge the statement of the provincial officers that these accounts are uncollectible.


[Stage Direction]
Paragraph agreed to.
Paragraphs 18 to 25 inclusive agreed to. Schedule agreed to.
Bill reported.


[Stage Direction]
Hon. CHARLES STEWART (Minister of the Interior) moved the second reading of Bill No. 58, respecting the transfer of the natural resources of Saskatchewan.
Motion agreed to, bill read the second time and the house went into committee thereon, Mr. Johnston in the chair.
Sections 1 and 2 agreed to.
On the schedule-Memorandum of agreement.
Ernest Lapointe: I think the schedule might be accepted without recording every paragraph, because it is the same as the other and everything has been discussed.


Milton Neil Campbell: In connection with
paragraph 4, I would like to ask the Minister of Justice whether that would apply to the grants of land to the Canadian Pacific for right of way and other purposes.


Ernest Lapointe: Yes.


Milton Neil Campbell: I take it then, that under no consideration could the provinces ever get back the right to tax that land. Is that so?


Charles A. Stewart: We have spoken of this very often. The province will undoubtedly have to perform in its entirety every contract under the provisions of this agreement. A contract of whatever character that it is incumbent upon the federal government to carry out, the province will have to carry out. This applies all along the line. Whatever obligation by way of contract or otherwise the federal government may have with respect to any of those resources, the province is undertaking to carry out. I cannot make the matter any clearer than that.


Milton Neil Campbell: I quite understand that, but what I want to get now is the opinion of the Minister of Justice or the Solicitor General in connection with those questions that we expect will be submitted to the courts. Supposing the courts or the privy council decide that the federal government never had the right to grant the Canadian Pacific exemption from taxation, what would be the situation?


Lucien Cannon: I do not really appreciate how such a decision could be given, but assuming that it would, as regards everything which was done by the Dominion the commission would have to deal with the new situation. Whatever had happened in the Northwest Territories since 1870 would be called in question. The situation would be a very difficult one; indeed, the difficulties of the situation would be so numerous that I.am inclined to doubt very much whether such a decision could be given. It is, of course, always within the realm of possibility.


Milton Neil Campbell: I am just taking a hypothetical case. Supposing it happened, then I presume the province would have a claim for damages against the federal parliament.


Ernest Lapointe: The commission will deal with that under the agreement.


Milton Neil Campbell: The accounting?


Ernest Lapointe: Yes.


John Evans: I think a set of questions as to the matters between the two governments that shall be taken before the coui'ts has been agreed upon. Could we have those questions read?


Ernest Lapointe: The order in council- because under a section of the Supreme Court Act those questions will have to be embodied in an order in council ordering a reference to the Supreme court-has not yet been

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passed. No doubt there will be no objection to showing the questions immediately to my hon. friend, but I think the order in council, when it is passed, should be laid upon the table of the house. I do not see that those questions could be laid on the table, because they have no legal binding until they are embodied in the order in council. The questions as drafted have been accepted by us and it will be stated in the order in council that they are the questions as suggested by the province of Saskatchewan. Although we would have drafted at least some of the questions in a quite different way, in order that there should be no grievance on the part of the province, and as we did not think this would injuriously affect the case of the Dominion, we agreed to accept the questions as they were drafted. Therefore my hon. friend need not have any difficulty about the matter.


George Reginald Geary: I hope when we get to the judicial committee we shall find there is an appellant.


Ernest Lapointe: I hope so, especially if the decision of the supreme court is as the other decision was.


Milton Neil Campbell: There seems to be some doubt as to the application of paragraph S. I suppose it is the intention of the federal government or parliament to turn over all lakes, rivers, water powers and so forth to the provinces.


Ernest Lapointe: Certainly. My hon.
friend is right in that, and any step that is necessary to carry that into effect and practice will be adopted,


Mr. FANSHER (Last Mountain):: One
point in regard to which I should like to set my mind at ease is contained in paragraph 2, which reads:
The province will carry out in accordance with the terms thereof every contract to purchase or lease any crown lands, mines or minerals-
And so forth. A great many people in the central part of Saskatchewan are concerned about the situation respecting Manitou lake. It had been leased under a mineral lease, and when the people found out about it they were up in arms. I would like the Minister of the Interior to tell the committee just how that lease is now held, and just what the position will be when the resources are turned over to the province. Personally I am quite convinced myself, but I think that a statement should be put on Hansard to appease the minds of a large number of people who are interested in this particular question.


Charles A. Stewart: I had with
me yesterday a memorandum with respect to it, but unfortunately I took it back to the office. I think, however, that I can speak from memory accurately enough with respect to that particular lease of Lake Manitou. It is a mineral lease. It did not and does not carry with it the water right. The water right is still to be granted, and since the date of the issuing of the lease there has been a considerable agitation, which has reached me. We have not taken any steps, and do not propose to take any steps, to allow the lessee to proceed until that question is settled to the satisfaction of other interested parties. I think that is all I can say about the matter.
I assume that the province will take the same view when the resources are transferred to them.


William Russell Fansher: Then I understand that there will be no change in the present status of this lease, and that no water right will be granted prior to the transfer of the resources?


Charles A. Stewart: Not unless there should be delay in the transfer or unless the parties who are objecting should consent. That would be the only way in which anything could be done in the matter, but it is not likely that anything will be done until the resources are transferred to the province. I anticipate that the transfer will take place in a short time, and I do not anticipate that those who are objecting will change their minds.


William Russell Fansher: They
certainly will not.


Charles A. Stewart: That is my information.


Milton Neil Campbell: Has the minister adapted any particular policy with regard to the leasing of timber berths? I had a letter in today's mail which I am passing over to the department asking about timber berths. Will any more be leased by the federal government before the transfer, or will they all be held up in the meantime?
Mr. STEW7ART (Edmonton): We must, of course, continue to carry on under our regulations. We are not making any changes in them. My hon. friend knows that when a timber lease is up for disposition it is always advertised and everybody knows that such and such a lease is to be disposed of, and everyone is given the opportunity to bid for it. I do not mean to say that we are going to stop administering until the day the province takes over the resources, but if any-
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thing of any considerable moment comes up that it seems to be necessary to deal with, we shall consult the province about it. In the ordinary everyday routine the department will carry on until the date of the transfer.


Milton Neil Campbell: I quite understand that you cannot stop the ordinary administration, and that the department will have to administer in the meantime. The particular case about which I wrote to the department concerned an application for a timber berth that had not already been advertised. Would the minister go ahead and advertise that lease without the consent of the provincial government?


Charles A. Stewart: We might do so. Of course, I find it very difficult to administer affairs for another government. I have difficulty enough administering affairs for this government without having to satisfy all parties concerned. It is very difficult to get to a third or fourth party all the various factors involved in any particular question. So far as timber berths are concerned, they are always advertised and disposed of at public auction to the highest bidder. There will foe no change in the method of administration in that respect. Personally as minister I seldom hear about them. These leases are granted under the regulations by the officers of the department after being puiblicly advertised. We dispose in the same way of even the burnt berths where fires have taken place.


Milton Neil Campbell: There was no suggestion at all that there would be anything wrong done, but the settlers in that district wanted this particular piece of timber reserved for farmers' permits. The minister knows what I mean.


Charles A. Stewart: They do not want it disposed of? In that case it certainly would not be disposed of to some one individual. There would be an arrangement made so that the farmers might have the benefit of the berth. It is a small one, is it?


Milton Neil Campbell: Yes, it is a small one. Schedule agreed to.
Bill reported.




[Stage Direction]
Hon. CHARLES STEWART (Minister of the Interior) moved the second reading of Bill No. 41, respecting the transfer of the Railway Belt and Peace River Block.

Motion agreed to, bill read the second time, and the house went into committee thereon, Mr. Johnston in the chair.
Sections 1 and 2 agreed to.
On the schedule-paragraph 6.
Mr. FRASER:: In general, what has been done in connection with these ordnance lands. I refer particularly to a block of ordnance lands in my own district in regard to which I understood arrangements were made so that it might be taken out of the area or cancelled entirely and located somewhere else. In general terms would the minister state what agreement has been reached with regard to the Chilcoten ordnance reserve?


Charles A. Stewart: Mr. Chairman, I cannot speak definitely of any one particular reserve or ordnance land as it is called. It has been a matter of considerable controversy between the government of British Columbia and the federal government for a number of years, and it is gratifying to know that the matter is settled to the satisfaction of both governments under the provisions of this agreement. The ordnance lands of which we know the acreage and which can be readily defined will pass to the federal government. It is provided by the agreement that transfers can be made as between the federal government and the provincial government, and, although I am not familiar with the particular area my hon. friend has referred to, I think there will be no question that, if agreeable, a substitution of some other territory can be made for that area. In most parts of Canada these ordnance lands are used for military purposes, but frequently it happens in the older provinces that the Department of Defence find they have no longer any use for the lands and they turn them over to the Department of the Interior for administration, and usually for sale. That is the method by which they have been handled in the other provinces, but in British Columbia the provincial authorities felt that they had certain rights in connection with these lands. In some cases, I may say, for instance, in the city of Vancouver itself, there might be doubt as to the validity of the title to some of the lands that were disposed of by the provincial government. All matters affecting title and so on will be cleared up and the federal government retain those ordnance lands; but, as I say, in many instances they are still to be defined by agreement with the province as to acreage and so on. But the principle has been settled that these lands remain the property of the federal government.

Natural Resources-British Columbia


John Anderson Fraser: Why do you insert the words: "whether the same lie within or without the said railway belt"?


Charles A. Stewart: Many of *the ordnance lands are outside the railway belt.


John Anderson Fraser: The one I am talking about is certainly outside the railway belt.


Charles A. Stewart: I cannot give my hon. friend the* locations. There are a considerable number of these lands, but I do not think the acreage, except in one or two instances, is very large. Certainly the ordnance lands are not all within the railway belt.


John Anderson Fraser: Might I say that I am interested in this parcel of land because it is a well defined area of one hundred thousand acres situated within the very heart of the cattle grazing country and the local cattlemen have been after me for two or three years to see if I could not get a cancellation of that as ordnance land. Were any representations made to the minister for the exchange of these ordnance lands for an equivalent area in some other part of the province? I understand this particular piece of land was inspected by the militia officials and they advised the department that on account of its location it was not at all suited for military purposes of any kind. That being the case, it seems to me that the proper time to deal with it was when this arrangement was being made. If no definite arrangement has been made, is any tribunal to be set up under this agreement to take into consideration the settlement of such questions as this?


Charles A. Stewart: No, for the very good reason that we have settled the principle that the ordnance lands shall belong to the federal government, no matter where situated; but we have also agreed that the matter of adjustment with respect to these lands, their area and so on, can be settled later on. I am sorry that the subject of the transfer of this particular piece of land has not been brought to my attention, nor am I able to tell my hon. friend whether it has been leased. Perhaps he can tell me whether leases of that strip of land have been issued by the Department of the Interior to the cattlemen?


John Anderson Fraser: The land I refer to is right in the centre of a large cattle grazing area, and up to the present time I do not think any leases have been issued.


Charles A. Stewart: And they
pay no rentals to anyone?


John Anderson Fraser: I do not think so, but I am not sure about it. I believe there was a tentative arrangement entered into between the two governments for the provincial government to collect the taxes and pay them over to the federal government. Whether that arrangement was completed or not I cannot say. But let me refer the minister to section 8:
The location and boundaries of the several parcels of ordnance and admiralty lands aforesaid shall be referred for determination to two persons, one of whom shall be appointed by the governor general in council, and one by the lieutenant-governor in council, and in the event of a disagreement between the said two persons, an umpire shall be selected by agreement between the Minister of Justice for Canada and the Attorney General of British Columbia.
Can the minister tell me what significance section 8 has? Would it have any relation to just such cases as this?


Charles A. Stewart: My difficulty about the ordnance lands is this: there are many parcels of such lands under the control not of the Department of the Interior, but of the Department of Defence, and I think perhaps that department has been in control of the land that my hon. friend mentioned, for this reason, that apparently the officers of that department made an inspection of the land and decided that it was not fit for military purposes. That is what I understood him to say.


John Anderson Fraser: Yes.


Charles A. Stewart: The result is that I am unable to tell him whether there has been a transfer of that land from the Department of Defence to the Department of the Interior, but I think likely that has not happened; for had it been transferred the cattlemen would be .paying rentals under leases; we would look after that at once.


John Anderson Fraser: You are better collectors than the other fellows.


Charles A. Stewart: Well, we
sell, lease or otherwise dispose of these lands in the interest of the federal government. That is our duty when they are turned over to us. But, as I say, in many cases the dispute between our government and the government of British Columbia was as to who actually owned these lands. That dispute has been settled by this agreement under which it is agreed that the federal government shall own and control those lands in British Columbia. The commission to settle the extent and location is provided for in the section quoted by my hon. friend. So that the whole

1706	COMMONS
Natural Resources-British Columbia
matter will be cleared up by the commission. If my hon. friend and the people in that locality make representations to the government that they are desirous of having that land remain in the hands of the provincial government, and some more suitable land in another part of British Columbia can be substituted for it, their representations will be given full consideration.


John Anderson Fraser: Do I understand from the minister now that this section which I have quoted will transfer control of this ordnance land from the Department of Defence to the Department of the Interior?


Sir EUGENE FISET:: May I say to my hon. friend that in 1919 a survey of all ordnance lands that were not actually needed for military purposes was made, and they were transferred to the Department of the Interior to deal with them as they might think fit.


John Anderson Fraser: Did I understand' the hon.
gentleman to indicate that this land belonged to the Department of the Interior?


Eugène Fiset: Speaking from memory, I think this is one of the pieces of land claimed by the military officials my 'hon. friend referred to a minute ago, and transferred to the Department of the Interior.


Charles A. Stewart: What my
hon. friend says is true, but in many cases the transfer has not yet been made from the one department to the other. We will try to clear that matter up now that the matter of ownership has been definitely decided.


John Anderson Fraser: My information in this
matter is very definite; I am told that the ownership of this land is in the military authorities and not in the Department of the Interior. Do I understand the minister to intimate again that he proposes to transfer that land from the Department of National Defence to the department of which he has charge?


Charles A. Stewart: The statement of my hon. friendi is true. There was a survey of all these landls in Canada; certain of them were represented to be not required for military purposes, and it was the intention that they should be transferred to the Department of the Interior.


John Anderson Fraser: And this is one of them?


Charles A. Stewart: Yes. Many of those lands have been transferred and we have made disposition of them. Some of them, however, have not been transferred. Unfortunately I am unable at the present

time to get information as to those particular pieces of land; I can give the information to my hon. friend' to-morrow. Those lands in British Columbia, known as ordnance lands, which are not required for military purposes will be transferred for disposal to the Department of the Interior. The commission provided for in section 8 will decide upon the extent and in some cases the location of these lands so that the whole matter will be cleared up.


John Anderson Fraser: I am asking the minister Why he did not clear the matter up when the agreement was being made; why did he not transfer it back to the province of British Columbia? The department is supposed to be transferring back to the province of British Columbia lands which were formerly in the Peace River block and the railway belt. Why did the minister not make a clean job of it and clear up this piece of land?


Charles A. Stewart: I wish to
say that I took a very determined stand in respect to ordnance lands. These lands were set aside for military purposes in all the provinces of Canada. We are treating British Columbia in exactly the same manner as we are treating the other provinces. That has always been my contention in regard to this matter. I do not deny that the officials of the provincial government made a very strong claim as to those lands, particularly those which were not required for military purposes. I think however that we were on sound ground in standing upon our rights as to these lands. We had kept them in all the other provinces, and we were treating British Columbia in exactly the same manner as we had treated the other provincial governments.


John Anderson Fraser: These lands were set aside for military purposes and it has been declared by the military authorities that they are not suitable for military purposes. Why were they not considered in the general turnover of lands to the province of British Columbia? It has created a situation which has affected the stock men of that section. The matter should have been settled.


Charles A. Stewart: It is settled.


John Anderson Fraser: No, it is not settled.


Charles A. Stewart: Absolutely.
This controversy with respect to ownership had been going on for some years, and it is now settled. The lands in question will be the property of and be administered by the federal government. I hope that all the lands which come under the control of the Depart-

Natural Resources-British Columbia
ment of the Interior will be disposed of, leased or put to some useful purpose. Those which are required for military purposes will be kept by the Department of National Defence and administered by that department. The others will be treated just as we treat them in the other provinces of Canada.


[Stage Direction]
Paragraph agreed to.
Paragraphs 9 and 10 agreed to.
On paragraph 11.
Mr. BARBER:: I would like to ask an
explanation of the clause :
-and there shall in addition be reserved and retained by Canada the foreshores and beds of the Fraser river and the Pitt river lying above the eastern boundaries of New Westminster harbour and below lines to be ascertained and defined by agreement at the junction of Kanaka creek with the Fraser river and at the point of the exit of the Pitt river from Pitt lake.
What is the reason for this reservation?


Charles A. Stewart: I think it
was made at the request of the harbour board in order that they might be assured of control, as they are a federal body. As it is usually contended that the ownership of the land carries -with it the ownership of the water they might otherwise have some difficulty, and it was agreed in this particular instance between the provincial authorities and the federal government that those rights should be reserved to the Dominion.


Harry James Barber: There are many miles of
this water which are not navigable. It runs up east of Hell's Gate.


Henry Herbert Stevens: It is somewhat extraordinary; apparently it runs from the easterly boundary of New Westminster harbour up the river for about 150 miles. It takes in the whole of the Fraser canyon which is not navigable but in which there is a great deal of placer mining. The deposits are renewed from year to year; at low water they work the various bars and deposits which come down during the freshet period. Consequently that placer mining would be retained under the control of the Dominion.


Charles A. Stewart: I must confess that I have never discussed this part of the agreement. I do know about New Westminster harbour; I know the territory of the Fraser canyon, but I really cannot say-


John Anderson Fraser: Would the matter of power have anything to do with it?


Charles A. Stewart: If it did
there would be all the more reason why the province should have it.
2419-108i


Henry Herbert Stevens: Exactly, because they received the power by special act of parliament in 1913.


John Anderson Fraser: What about the mining
rights? For instance, we lease certain areas to dredging companies at say $50 or $100 per mile. If you are to transfer the ownership of the bed of the river from the province to the Dominion, what are you going to do about the mining leases? Are you going to introduce a set of mining regulations to apply to say 150 miles of the Fraser river and to no other part of British Columbia? What about the small mining man? From Hell's Gate to Lytton-and this extends almost to Lytton- we have a number of small miners who make a little money by rocking on these bars and benches during the low water period. What about miners' licences and leases; are you to take them away from the miners and substitute federal mining regulations for provincial regulations over this area? I may tell the minister that quite a number of men will be affected if that is done. There are many mining claims of all kinds along the Fraser river above Hell's Gate, and I might almost say from Yale and Hope, all the way down the river. We know very well that the bars at Yale and Hope were very prolific gold bearers in the old days, and some of them may be worked for gold in the future.


Charles A. Stewart: I cannot
give my hon. friend the reasons to-night; I will get them for the house before this measure is given third reading and ascertain why these foreshore rights are retained. As I say, I krjew of the grant to the New Westminster harbour board; that right was conceded them, but I am not familiar with this particular olause, and I would much prefer to ascertain why it is here and give the answer to-morrow.


[Stage Direction]
Paragraph agreed to.
On paragraph 12.
Harry James Barber: I should like an explanation of the rights of the Canadian Pacific Railway Company throughout this dyking area. Have they some rights now? Why is this provision inserted?


Charles A. Stewart: This was
put in at the request of the Canadian Pacific Railway Company. If I remember rightly there are one or two very small parcels of land which have not been patented to the Canadian Pacific Railway Company, and they have some further claims of some sort. This provision is inserted to protect them when the ownership is transferred to the province.
1708	COMMONS
Natural Resources-British Columbia


Harry James Barber: Right of way property?


Charles A. Stewart: Something
about the right of way, some small portion that has not been completely patented from the crown to the company.


[Stage Direction]
Paragraph agreed to.
Paragraph 13 agreed to.
On paragraphs 14 to 20.
Henry Herbert Stevens: I should like to ask the minister one or two questions in this connection. I think this is the clause which appears in the other bills?


Charles A. Stewart: Yes, they are all the same.


Henry Herbert Stevens: I am not questioning the form, but I should like some information as to its application. If I am not mistaken there are some parks in British Columbia now belonging to the province which are being transferred to the Dominion for national park purposes outside of the railway belt and Peace river block. Is that correct?


Charles A. Stewart: No. It was intended to take in a portion of land west of Mount Assiniboia, to include Mount Robson south, and a small portion west of the Water-ton lake area, but the provincial government felt that the transferring of all their rights, mineral and otherwise, in these parks would not warrant their giving us a larger extent of territory than we now have in the railway belt, and for that reason they desired more time for consideration before agreeing to transfer to us these areas I have mentioned, as well as another park at sea level which is still in question. I do not think there is any doubt that we will come to an arrangement about these areas as well as the sea level park, but at the moment they are not in question.


Henry Herbert Stevens: If I recall correctly, some
years ago there was a dispute as to the right of the Dominion to the minerals in the then existing national parks in British Columbia and I think in the railway belt as well. Was that question settled by legal procedure; if not, how was it settled, and what was the settlement?


Charles A. Stewart: The province asserted its right at Field, for example, which was a mine in question where they had issued a lease and were getting whatever returns were to be had. The dispute was going on in the meantime, but under the agreement all the minerals in the park now will come to us. I have no knowledge of any settlement of the matter by the courts, and I have no
[Mr C. A. Stewart.]
recollection of its ever having been referred to the courts. It just remains in that rather unsatisfactory condition, with the province asserting its claim to the minerals, which claim is disputed by the federal government.


Henry Herbert Stevens: Then assuming there was
no settlement, does this clause now confirm the right of the Dominion to the minerals in the parks?


Charles A. Stewart: Yes, but
with the proviso that the federal government have made it abundantly clear that they do not desire to exploit the minerals or water powers in the parks. They propose to keep these parks inviolate as playgrounds, wild life sanctuaries, as nature created them, for the benefit of the people of Canada, and are ready to spend monej'' on the parks for that purpose. If it develops that there are areas in the parks where mineral belts may extend, and if it is found that these belts are very valuable, the arrangement provides that these areas will be taken out of the parks and retransferred to the provinces for their own purposes, the provinces to enjoy the full benefits of exploitation. It is further provided that if a similar condition should exist in the centre of a park, where it would not be convenient to transfer territory in that way, and if parliament should decide in its wisdom that mineral exploitation should be carried on, then any return from that exploitation greater than may be required for the operation of that particular park will be returned to the province. I should like to make it very clear that as far as the federal government is concerned we do not intend to commercialize the park areas in any way. Rather the reverse is the case; we are absolutely opposed to it. For instance, there is the Field mine, which I understand is rather a valuable property and which we could not very well close, but we do not intend in any way to commercialize park property. We would rather be absolutely clear of that sort of thing and throw such areas outside of the park boundaries altogether for the provinces to exploit.


John Anderson Fraser: Does the minister propose
to allow prospecting in these areas?


Charles A. Stewart: Not if I
know it; but unfortunately I do not know it usually.


John Anderson Fraser: Supposing a prospector who has a licence which gives him the right to prospect for minerals anywhere in British Columbia goes into your park to prospect. What will you do-throw him out?

Natural Resources-British Columbia


Charles A. Stewart: No, I would not throw him out; he would have to obtain a licence to develop his property.


John Anderson Fraser: What licence?


Charles A. Stewart: He could
not develop it without a licence.


John Anderson Fraser: A licence from the federal
authorities?


Charles A. Stewart: Yes.


John Anderson Fraser: Any mining that is carried
on in those areas must be carried on under a licence from the federal government.


Charles A. Stewart: It could not be done in any other way. Under the provisions of the parks bill which is to come before the house, he would not be able to obtain his licence until his application came before parliament, and I doubt very much if he would then obtain a licence.


John Anderson Fraser: Why is the federal government so insistent upon depriving the province of its mineral rights? Notwithstanding the agreement, I rather resent that attitude. Apparently the government would not complete this arrangement unless the mineral rights were turned over to the federal authorities.


Charles A. Stewart: If the federal government is going to spend money upon these national parks for the purpose of preserving them in their natural beauty for the benefit, first, of the people of the province in which they are located, and second, for the people of the w'hoile of Canada, those parks should be kept for that purpose; that is the reason for that provision in the agreement. If they should be more valuable for commercial purposes, then the federal government does not want them. This government has tried to select parks in areas where there was little possibility of mineral development. If a mineral belt should extend into the area of any of these parks, we should be very glad to put that area out of the park boundaries. The reason why we are so insistent that there shall not be any commercial development in the parks is because the great attraction of these areas is the fact that that class of development is absent. The parks are kept just as God and nature left them. The minute that attraction is destroyed the parks lose their usefulness, and the money expended by the federal government is of no avail.


John Anderson Fraser: I am not much of a lawyer, but as I understand it these lands are held by the province of British Columbia in trust
for the people of that province. Has that province the authority to transfer those lands in fee simple to the federal government?


Charles A. Stewart: Of course
the province has authority; it has control over its lands. It has authority over the lands outside of the Peace River block and the railway belt just as much as we have authority over other lands, or at least will have that authority when it is given to us by parliament. When the legislature gives the province that authority, it will be able to transfer those lands to us.
Paragraphs 14 to 20 inclusive agreed to. /'
Paragraph 21 agreed to.	:
On paragraph 22,


John Anderson Fraser: How did you get to number 22, Mr. Chairman? I think you have slipped a cog there.


Eugène Fiset: Paragraph 22 covers historic sites and bird sanctuaries.


John Anderson Fraser: We were discussing section
15.


Eugène Fiset: When I called the paragraphs dealing with parks, I mentioned paragraphs 14 to 20 inclusive, all being under the heading of parks.


John Anderson Fraser: I would like to make a
statement regarding paragraph 18. Under the provisions of that paragraph you would be controlling not only the waters in the parks, but those outside the parks. The minister must realize the importance of water in the railway belt. Suppose there should be a piece of land outside the railway belt irrigated by a stream running into the parks; according to my interpretation of this section, you would have control not only of the water in the park but of the water outside. Why has the government been so insistent upon such wide powers regarding the waters?


Charles A. Stewart: All we want to do is to control the waters inside the parks. My hon. friend knows that neither we as the crown nor anyone else can dam water or divert it from its natural course. All we are doing is to take control over the waters inside the boundaries of the parks. We cannot deprive a man of any rights which are inherent under the law.


John Anderson Fraser: The paragraph reads:
All rights of the crown in any waters within the said parks shall be vested in and administered by Canada, and the province will not by works outside any such park reduce the flow of
1710	COMMONS
Natural Resources-British Columbia
water in any of the rivers or streams within the said park to less than the flow which the Minister of the Interior may deem necessary adequately to preserve the scenic beauty of the said park.
Apparently the scenic beauty of the park is to be of more importance than the needs of a man who may be irrigating a piece of land or who may be using water for mining purposes.


Charles A. Stewart: This is
simply a precautionary measure. There are waters which flow from provincial lands into the parks, and waters which flow from the parks to provincial lands, and this is merely a precaution so that we may not be deprived of our rights in that respect. We have no desire to deprive anyone else of any rights which they may have.


[Stage Direction]
Paragraph agreed to.
Paragraphs 23 to 27 inclusive agreed to.
Schedule agreed to.
Bill reported.

[Stage Direction]
lion. T. A. CRERAR (Minister of Railways and Canals) moved the second reading of Bill No. 124, to amend the Railway Act.
Henry Herbert Stevens: Is this bill to be referred
.to a special committee?


Mr. CRERAR:: No.


Henry Herbert Stevens: Will the hon. minister
give us an explanation?


Thomas Alexander Crerar: I gave a brief explanation the other day when the bill was introduced.


Henry Herbert Stevens: Probably we could first
go into committee.


Thomas Alexander Crerar: Very well.
Motion agreed to and the house went into committee, Sir Eugene Fiset in the chair.
On section 1-Signatures on certificates may be facsimiles.


Thomas Alexander Crerar: This is a slight change in
section 82 of the act to provide that signatures of officers of the company on certificates of shares may be facsimiles when such certificates are signed manually by a transfer agent of the company and the registrar of the shares. It is simply to facilitate the ease with which these certificates, which are very numerous, can be signed. The same provision applies to the signing of bonds issued by railway companies.


Henry Herbert Stevens: One signature, I suppose, must be manual.


Thomas Alexander Crerar: The signature of officers
of the company may be facsimiles when the signatures of the registrar and of the transfer agent are manual.


[Stage Direction]
Section agreed to.
On section 2-Railway on highway.
Thomas Alexander Crerar: This amendment is asked
for by the Board of Railway Commissioners. At the present time when a railway passes along or across a highway, compensation may be had. The arbitrators are judges of the courts in the various provinces and they have held that when the Board of Railway Commissioners direct them to hear a case for compensation, by that act compensation has to be given. This is merely to give the arbitrators power to decide whether or not compensation should be given, and, of course, if they decide that it should be given, the amount of such compensation.


[Stage Direction]
Section agreed to.
On section 3-Bell and whistle.
Thomas Alexander Crerar: The explanation of this
is very simple. At the present time the act provides that locomotive engines propelled by steam shall be equipped with whistles or other signalling devices. This is simply to enlarge the scope of the section to apply to engines other than those propelled by steam, for instance, gas engines, electrically driven Diesel engines. This also is in accordance with the request of the railway commission.


[Stage Direction]
Section agreed to.
On section 4-Sale of goods.
George Reginald Geary: Why is the time reduced to four weeks in the case of ordinary goods? It is six weeks now.


Henry Herbert Stevens: Under the old section it
was six. This reduces it to four.


Thomas Alexander Crerar: I think under the section
as it stands at present, it is six weeks for everything.


George Reginald Geary: Yes, but why for ordinary
goods cut the time down to four weeks? There does not seem any good reason.


Thomas Alexander Crerar: I think four weeks is a
reasonable time to give to owners of goods. In any case the goods cannot be sold until they are advertised.


George Reginald Geary: In the case of a pawnbroker the time is a year, is it not?


Thomas Alexander Crerar: I could not say as to
that.

Railway Act Amendment


George Reginald Geary: Have any difficulties arisen?


Thomas Alexander Crerar: The railway companies
have experienced losses in recent cases, so I am informed, where they have had to hold the goods in accordance with the old provision. This is simply to facilitate the disposal of unclaimed goods.


Mr. KENNEDY:: Live animals are included in this section; there was no mention of live animals before. A farmer in Peace River who was shipping stock to Edmonton had no sooner got the animals in the car than a railway official came up and demanded payment of the freight charges. This clause seems very drastic. It would mean in some cases that as soon as the stock was loaded in the car, the railway company would want to take and sell them.


Thomas Alexander Crerar: That is not contemplated


Donald MacBeth Kennedy: The clause reads:
If the tolls on live animals .... are not paid forthwith on demand.


Thomas Alexander Crerar: That would be after
delivery of the goods at point of destination.


Donald MacBeth Kennedy: The clause does not say
so.


Thomas Alexander Crerar: This would be governed, I presume, by other sections in the act. It would be unreasonable to expect a railway company to demand the prepayment of tolls on the goods unless that was specified in their contracts.


Donald MacBeth Kennedy: The clause reads:
If the tolls on live animals or goods liable to deteriorate or perish while in the possession of the company are not paid forthwith on demand.


Thomas Alexander Crerar: That means after the
goods have reached their destination.


Donald MacBeth Kennedy: That is not stated in
the clause. In the case to which I refer the demand was made before the live stock were moved away, while they were in a car in the yard. I think it was at Sexsmith in Grand Prairie. That seems to be exactly what this clause gives the railway company the right to do.


Thomas Alexander Crerar: Were the goods in that
case being shipped to Edmonton?


Donald MacBeth Kennedy: Yes.


Thomas Alexander Crerar: That is a new experience
to me. A railway company can demand prepayment when the goods are going to a point where there is not a railway agent.


Donald MacBeth Kennedy: I know the man on whom the demand was made, and it caused
considerable hardship. There may have been doubt about the matter at that time, but I think that is exactly what this clause gives the railway company the right to do. I do not think it should be passed in this form.


John Anderson Fraser: Surely the minister will
admit that a railway company can demand payment even before the goods are shipped?


Thomas Alexander Crerar: I cannot say at the moment just what are the express provisions in the act governing that, but I know the practice on the part of railway companies is to ask prepayment where goods are being shipped to a point where there is not a railway agent to collect the tolls. This clause does not deal with such cases. There are in the Railway Act other sections dealing with them. This has relation to the collection of tolls after the goods have reached their destination. There are times when goods are shipped on a railway; they reach the point of destination; they lie there for days or perhaps weeks unclaimed, and this is merely to give the railway company the right to advertise and sell such goods in order that they may dispose of the matter.


George Reginald Geary: Surely if prepayment were
demanded the railway company would not accept the cattle until prepayment was made, so that such a case would never arise. In order that this clause may be workable it must apply to cases where tolls are charged after the goods have arrived at their destination.


Henry Herbert Stevens: There is another interpretation which I think supports my hon. friend from Peace River. Section 4 says:
If the tolls on live animals or goods liable to deteriorate or perish while in the possession of the company are not paid forthwith on demand-
In other words, if the company suspects that there may be some risk in carrying these live animals or goods liable to deteriorate, they can demand prepayment of the freight forthwith.


George Reginald Geary: My point is that if they do demand prepayment and do not take the goods until the money is paid, the provision for resale would never occur, because they cannot sell goods that they have not got. If they do not take the goods, they certainly cannot sell them.


[Stage Direction]
Section agreed to.
George Reginald Geary: If I may revert for a moment to section 2, why is it that provision is made for compensation under the compensation

Railway Act Amendment
provisions of the act in the case of private property, whereas later in the section referring to leave being obtained to carry a railway along a highway, the original section is still retained which requires an order of the board before any compensation is payable?


Thomas Alexander Crerar: Section 2 does not take away any of the provisions of the old act in regard to compensation. Under the old section, if the question of compensation arose, the arbitrators held that compensation had to be paid no matter how small it was. What the amendment seeks to do is to give the arbitrators the power to decide whether or not any compensation should be paid, as well as the amount of compensation if any.


George Reginald Geary: But why do you make it
provide for compensation to private owners and not to municipalities under the latter part of section 2?


Thomas Alexander Crerar: I do not think that question arises.


George Reginald Geary: Yes; it says:
Provided that where leave is obtained to carry any railway along a highway the board may require the company to make compensation to the municipality-
And that is determined under the provisions of the compensation section. In other words, you have retained the mischievous clause in regard to public ownership, but not in regard to private ownership.


Thomas Alexander Crerar: We are not seeking to
change the clause in that respect.


George Reginald Geary: Why not?


Thomas Alexander Crerar: That question has not come up.
Bill reported, read the third time and passed.



FOOD AND DRUGS ACT AMENDMENT

[Stage Direction]
The house in committee on Bill No. 125, to amend the Food and Drugs Act-Mr. King (Kootenay)-Mr. Johnston in the chair.
Bill reported.
On motion of Mr. Mackenzie King the house adjourned at 10.50 p.m.
Friday, May 2, 1930.