1955-07-28

Mr. Hees:: How much did the government pay for army vehicles, models 211, 216, 135, 207, in the years 1951, 1952, 1953, 1954 and 1955?


Mr. Blanchette:: Minister of Public Works. Has the minister received any complaints from veterans in Regina regarding the asking price for houses being offered for sale by Central Mortgage and Housing Corporation in project 7-48 in that city? Will the minister be prepared to consider scaling down the asking price for these houses in view of the fact that the minimum price for these seven-year-old houses is almost as great as the original construction cost and also that the veterans living

Model 211: 2i ton cargo truck
with winch	
Model 211: 2J ton cargo truck
without winch	
Model 216: 2J ton dump truck....
Model 135: 2J ton cargo truck with
winch	
Model 135: 2J ton cargo truck without winch	
Model 207: 2J ton chassis and cab
with winch	
Model 207: 2J ton chassis and cab without winch



TOTAL $2,729,810 QUESTION PASSED AS ORDER FOR RETURN DEFENCE CONSTRUCTION LIMITED  ALBERTA

Mr. Low:: 1.	What was the total contract value of all projects under supervision of Defence Construction Limited, in Alherta, during the fiscal year 1954-55?
2.	What were the individual projects in the above, and in connection with each, what was the contract value, the name of the person or firm to whom the contract was awarded, and the time set for the completion of the contract?


Mr. Dickey:: Return tabled.



HOUSING


[Stage Direction]
7-48, REGINA
On the orders of the day:
Mr. Claude Ellis (Regina City):: Mr. Speaker, I should like to direct a question to the



AMOUNT PAID BY FISCAL YEAR

[Stage Direction]
April to
1952-53	1953-54	1954-55	June 1955
		241,020	
50,466 109,740	1,399,518	2,010,580	7,528,950	637,050	1,532,278	2,968,407	6,797,910	4,322,714	22,89387,924	88,020	560,736	759,278	1,797,460	2,448,26411,218,299	9,681,680	9,992,072	2,471,157
in these houses have paid in excess of $2,000 in rentals?
Hon. Roberi H. Winters (Minister of Public Works):: Mr. Speaker, I do not recall having received complaints from Regina, but we have had representations from elsewhere and this matter has been dealt with in the house on one or two occasions. Central Mortgage and Housing Corporation is doing no more than endeavouring to have its costs returned. While it is true that considerable amounts have been paid over the years in the form of rentals it is also true that there have been high administration and maintenance costs, all of which were incurred by Central Mortgage and Housing Corporation. The government is putting no emphasis behind a sales effort and I think it is significant that these houses are moving into the hands of veterans who have asked to have an opportunity of buying them. That is the only reason they are being made available.
1,613,810
1,116,000
6952	HOUSE OF COMMONS
Inquiries of the Ministry TRANS-CANADA AIR LINES



REPORTED FAILURE TO PICK UP INSECTICIDE AT BUFFALO

[Stage Direction]
On the orders of the day:
Robert Henry Winters: Mr. Speaker, yesterday the Leader of the Opposition asked a question having to do with grain aphids and the role of Trans-Canada Air Lines in transporting required insecticide. The question arose out of a newspaper article to which the Leader of the Opposition referred. This insecticide is known by the trade name of Maletheon and is produced by North American Cyanamid in the United States and Canada, and some additional supplies have been available in Canada from Imperial Oil Limited. Air freight shipments of this insecticide by Trans-Canada Air Lines started about July 16 and 17 and T.C.A. has since then carried 68,046 pounds from Toronto to Winnipeg and Regina. The article to which the Leader of the Opposition referred did not mention any date so I am not clear as to the particular time referred to.
The insecticide is packed in 45-gallon drums and is suitable cargo for carriage only in exclusively cargo aircraft and not as cargo in passenger aircraft. T.C.A. have moved all supplies which became available for shipment from Canadian sources without delay. The most recent movement was on the night of July 26 when a shipment of 9,000 pounds was planned. During the day of July 26 information was received from North American Cyanamid that an additional nine tons would be ready for shipment that evening. An extra aircraft was arranged for, but only 5,000 pounds additional was in fact ready for shipment and the total shipment amounted to
14,000	pounds.
The article referred also to the shipment of the insecticide from Buffalo. The T.C.A. has no knowledge of any shipments of this material from Buffalo, New York, and no record can be found of any request for movement from that point. T.C.A. have in fact no traffic rights in Buffalo and would have to obtain special authorization from the civil aeronautics board in order to accept traffic at Buffalo.
One of the plants of North American Cyanamid at which this material is produced is located at Linden, New Jersey. An inquiry was received for charter of a cargo aircraft to move a shipment originating in the Linden, New Jersey, plant to Winnipeg. An effort was made to secure an aircraft for this movement, but none being available North American Cyanamid were advised and arrangements were made for shipment by Slick

Airlines, a United States cargo carrier with which T.C.A. have an interline agreement.
T.C.A. freight operations are essentially on a schedule basis and this particular request was on a charter basis. The request was dealt with and the officials have no knowledge of any unnecessary delay in advising the shipper in this instance.


Hon. George A. Drew (Leader of the Opposition):: Mr. Speaker, the detailed explanation given by the minister covers the actual movement of this chemical and it is not difficult to interpret that into the terms of the particular incident to which reference was made. I would ask the minister, however, if he would consider the possibility that what has happened here does demonstrate the desirability of competitive air freight facilities. This might well lead to a reconsideration of the application made on an earlier occasion by C.P.A. for air freight facilities across Canada. What has happened here demonstrates, in the words of the minister himself, that it was necessary for T.C.A. to seek the facilities of the United States air line to provide services that we should be able to provide ourselves.


Some hon. Members:: Order.


George Alexander Drew: I feel that the competitive
aspect of this enters into the whole picture, and I would ask the minister if he would reconsider the whole situation in view of what has been disclosed in this case.


Robert Henry Winters: I do not think this instance demonstrates the point the Leader of the Opposition has endeavoured to make. I think it is a fact that all the available insecticide has been carried expeditiously and has been available to fight this grain aphid outbreak.


George Alexander Drew: The minister did say, did he not, that Slick Airlines in the United States had been engaged for the movement of some of the insecticide?


Robert Henry Winters: Yes, but Slick Airlines is an air line with which the T.C.A. have an interline agreement. I do not think there is any impediment there at all.



REQUEST FOR STATEMENT OF GOVERNMENT POLICY

[Stage Direction]
On the orders of the day:
Mr. A. M. Nicholson (Mackenzie):: Mr. Speaker, I should like to direct a question to the parliamentary assistant to the Minister of Trade and Commerce. Some days ago the minister intimated he would have a statement to make before the end of the session regarding a policy for the new crop year. As

the grain season will be started on Monday-next, I wonder if the parliamentary assistant could make a brief statement?


John Horace Dickey: The
policy of the Canadian wheat board in connection with the quotas of the 1955-56 crop season was announced by the board in a circular dated July 19, which went to all the companies involved. Briefly, the initial quota is similar to that introduced at the beginning of the 1954-55 season. These quotas will be effective at individual delivery points on dates to be announced later by the board.



SASKATCHEWAN JUBILEE CELEBRATION


[Stage Direction]
On the orders of the day:
Mr. G. H. Casfleden (Yorkton):: Mr. Speaker, I should like to direct a question to the right hon. Prime Minister. Has the Prime Minister been able to accept the invitation of the province of Saskatchewan to be present at their special jubilee celebration at Regina on September 5 next to celebrate the creation of the province of Saskatchewan as a proud part of this great dominion?


Right Hon. L. S. St. Laurent (Prime Minister):: Yes, Mr. Speaker, it gave me much pleasure to be able to accept that invitation, and I am looking forward to attending the celebration.


George Hugh Castleden: I might say that the invitation is extended to all members of parliament.



INDUSTRIAL PRODUCTION


[Stage Direction]
On the orders of the day:
Mr. R. R. Knight (Saskatoon):: Mr. Speaker, might I ask the Minister of Justice if he is now prepared to answer a question of which I had given notice in his absence some time ago?


Hon. Stuart S. Garson (Minister of Justice):: Yes, Mr. Speaker, I am. The hon. gentleman asked this question:
In view of the shortage of Canadian cement, has the minister investigated, or will he investigate the existence of any artificial control of the manufacture of this commodity?
The answer is: Dominion bureau of statistics reports indicate that Portland cement production in Canada has more than doubled since the end of the war. The largest producer has increased its capacity by about 75 per cent and is increasing it still further. Three new companies have come into the field and recent press reports indicate that several other
Supply-Finance
entries are being planned. These facts, taken with local complaints of shortages, would indicate that demand has been outrunning supply, from time to time and from place to place, owing to the high rate of government and private construction. The combines branch of the Department of Justice has for some time been following the cement situation but to date it has seen no evidence to lead it to suspect any artificial control of supply.

The house in committee of supply, Mr. Robinson (Simcoe East) in the chair.
DEPARTMENT OF FINANCE Grants to universities

126.	To provide grants to institutions of higher learning recognized in each province by the government of Canada and the government of the province as being universities or institutions of equivalent standing equal to an amount, for each province, not exceeding 50 cents per head of its population as certified by the dominion bureau of statistics divided among the recognized institutions of the province proportionately to their enrolment of full time intramural students in personal attendance at the recognized institution or at an institution in the same province affiliated with it who are registered in courses of university level recognized as leading to and counting year for year toward a university degree awarded by a university in Canada and the Minister of Finance may for this purpose more particularly define the terms "university level" and "university degree". $7,800,000.


Mr. Regier:: Mr. Chairman, when the committee rose last night we were having a bit of an exchange with the minister in connection with federal aid for education. I said I had something more to say, and I have. I shall attempt to say that something in a very few minutes because I know that there are a few other estimates that will also take up some of the time of this house and I know that we want to conclude today in an orderly fashion as becomes members of this House of Commons.
I had a bit of a discussion with the Acting Minister of Labour when his estimates were before us several days ago. He revealed that the problem of federal aid to one section of education, namely in the field of vocational training, was to be thrown into the melting pot of argument, as it were, at the forthcoming meeting of the federal and the provincial governments this October. One of the reasons why I rose on this item yesterday was that I am a little bit afraid that this is another thing that will be thrown into this melting pot at the October conference and be a matter for negotiation; I refer to the matter of whether or not federal aid to university education will be continued or may be discontinued after the conference

Supply-Finance
this fall. It is this concern that we in western Canada have about this whole matter that is causing us to rise continually on this subject in order to get the government more definitely committed.
Last night I attempted to point out that we as a nation are terribly short of skilled people to administer our national health and welfare program. Work in the whole field of the sciences is greatly curtailed because of the lack of adequately trained personnel. The whole field of education is suffering from one end of Canada to the other because of insufficient adequately trained teachers. Yesterday the minister seemed to indicate that this amount of something over $7 million was more or less in line with what had been recommended in the Massey report. I should like to read just two or three sentences from that report in order to show that if that was the intention of the minister he certainly was far from giving a correct interpretation of what the Massey report actually recommended. At page 354 of the report we find this:
The universities ask first for a per capita grant ranging from $150 to $200 for all students registered in professional schools.
In line with what I was saying a few minutes ago, they then list them. The report continues:
The schools mentioned are those offering courses in medicine, dentistry, agriculture, forestry, veterinary science, nursing, physical education, physiotherapy, social work, engineering and applied science.
Then on the next page, page 355, we have what the members of the Massey commission themselves saw fit to recommend after careful consideration of the whole problem. Their third recommendation is this:
That these contributions be sufficient to ensure that the work of the universities of Canada may be carried on in accordance with the needs of the nation.
My contention is that the needs of the nation are not being attended to in an adequate manner and therefore the impression that the minister and others on the government side are attempting to give that we are doing enough has to be corrected and the public of Canada made aware of the fact that the government is not meeting the needs of the nation. I am not referring to the problem of providing primary education. I am referring to the problem of supplying the leadership in the major fields of education that the occasion demands.
I should like to emphasize again that we do not feel any undue control has been exercised in connection with the grants, and we believe that the government could substantially raise them without exercising any more control over the final disposition of the
[Mr. Regier.l
grants than they are now doing. This amount of money is not keeping pace with the rising costs of university education, nor is it keeping pace with the rising national production. Canada is surely able to afford much more money in 1955 than she was able to afford in 1953 or 1952.
I received a news clipping from back home from my good wife this morning. If we are not going to get more money from the federal government for our universities I do not know where the additional money is going to be found. Is the minister recommending that the additional money needed so desperately by our universities be obtained from the municipalities? If so, I would tell him that the news clipping I have received indicates that the cost of unemployment relief in the municipality of Burnaby this year is three times as much as it was last year. The municipalities with their local systems of taxation are unable to raise the necessary money for higher education.
We have an organization, the federal government, that has the power to act on behalf of all the people of Canada in this matter and I maintain that we should make use of the federal government. We are living in an organized society. We have agreed to do together as a nation those things that we cannot adequately attend to individually through our local governments, and I believe that we should use this organization, the federal government, to help to relieve the crisis that now obtains in the field of higher education.


Mr. Macdonnell:: I want to make one comment not for the purpose of asking the minister to increase the amount but for the purpose of making a suggestion regarding the distribution of the amount to universities. I understand that at present the disposition among the provinces is based on the population of the provinces, and my suggestion is that it might be fairer if it were based on the university population of the provinces. I am told that the province of Nova Scotia, for example, is coming off very much worse than the province of Ontario under the present system. The people of Nova Scotia, being Scottish, have a great interest in education and they have a larger percentage of their people attending universities. I put that forward for the minister's consideration.


[Stage Direction]
Item agreed to.
Miscellaneous grants-
127.	Canadian association of consumers, $10,000.
Mr. Charlton:: The minister said earlier that he would answer questions on the Canadian farm loan board on the last item of his estimates. The names of the members of the

board are included in the annual report. I should like to ask the minister what are the salaries of the members of the board.


The Chairman:: Order. This item has to do with the Canadian association of consumers.
I do not see how questions with regard to the Canadian farm loan board can be dealt with here.


Mr. Harris:: Mr. Chairman, last evening when perhaps you were not in the chair a question was asked about the Canadian farm loan board by my hon. friend. While there is no item covering it, I undertook to answer his question on the final item of my estimates. I take it he is assuming this is the final item although it is not. However, that is quite all right, and I will try to answer his questions now if I can.


William Alfred Robinson: Is it agreeable to the committee that the minister answer on this item?


Some hon. Members:: Agreed.


Walter Edward Harris: The salaries at the moment are: the chairman, $10,000; the associate commissioner, 6,000; and the part-time members a minimum of $500.


John Alpheus Charlton: I presume that is $500 salary and travelling expenses?


Walter Edward Harris: Yes.


John Alpheus Charlton: It is more or less on a piecemeal basis, then?


Walter Edward Harris: Yes, for meetings and any other work that may have to be done.


John Alpheus Charlton: So much for each meeting, and probably so much for each item dealt with by a member?


Walter Edward Harris: Yes.


John Alpheus Charlton: Do the members of the board act as appraisers in the particular district in which they are?


Walter Edward Harris: No, they do not.


John Alpheus Charlton: They do not do any appraising at all?


Walter Edward Harris: I presume if a member is aware of an application in his immediate neighbourhood he may possibly form an opinion about it, but there are appraisers, other than the members of the board, who do the appraising.


John Alpheus Charlton: The same criticism I made of the Farm Improvement Loans Act last night would hold true of this board. The interest rates for these Canadian farm loans are 5 per cent in the case of a first mortgage and 5-5 per cent in the case of a second mortgage. Surely the interest rates on these farm loans should be lowered by at least 1 per
Supply-Finance
cent. There is a considerable amount of money being lent, and it is doing a very good job.
The other question I wanted to ask the minister concerns fishermen who are now entitled to loans under this act. I see that it is only the fishermen on the east coast, New Brunswick, Nova Scotia and Prince Edward Island, who have taken advantage of this opportunity. Are the lake fishermen, the inland fishermen, eligible for loans under this act?


Walter Edward Harris: We have a new fishermen's loan act which, as my hon. friend knows, was recently passed by the house. When it is proclaimed, it will repeal the existing lending system and under the new act the inland fishermen are entitled to make application.


John Alpheus Charlton: The previous loans to fishermen were made under the provisions of this act, so it was called the fishermen's loan act?


Walter Edward Harris: Yes.


John Alpheus Charlton: And that was actually administered under the Canadian farm loan board, although now there is a new act for fishermen's loans and the lake fishermen will be entitled to that?


Walter Edward Harris: Yes.


George Hugh Castleden: I have one question on this item. It has been drawn to my attention by a number of farm producers in my area that in the past year applications for loans have been refused. The need for loans has been greater in these areas during the past year because of rusted crops and lowered farm income as well as the fact that farmers were unable to deliver their crops. I should like to suggest to the minister that those responsible for granting loans in our area might be just a little more lenient where special circumstances like rust and lowered income prevail. The farmers seem to feel that this legislation is something like an umbrella that is given to them in fair weather, but when the rain comes and they want to make use of it they are not allowed to do so. I would pass this on as a suggestion to the minister, that those people responsible for granting loans might be a little more lenient when the need is urgent.


[Stage Direction]
Item agreed to.
Loans, investments and advances-
Finance-
539. Loan to the Ottawa Civil Service Recreational Association, on such terms and conditions as the governor in council may approve, to assist in the construction of the W. Clifford Clark memorial recreation centre, $500,000.
James MacKerras Macdonnell: I asked a question last night with regard to the industrial develop-

Supply-Finance
ment bank, and was told to bring it up at the close of the ordinary estimates. The question is this.


William Alfred Robinson: Order. Is it agreeable to the committee that this matter be discussed at this time?


Some hon. Members:: Agreed.


James MacKerras Macdonnell: The question is this. At the moment the outstanding loans of the industrial development bank are shown as $42 million. I wanted to ask the minister whether he could say a word as to what he considers what I might call the scope, the possible size of operations of that bank today, because there was a good deal of talk a little while ago, as the minister will remember, in regard to the blessed question of the gas pipe line to which the industrial development bank might make a loan. I think the amount mentioned was well under $300 million. I wondered whether the minister would make some comment as to whether he considered that, having regard to the size of the operation at the present time, such an increase would be within the natural scope of the operations of the bank.


Walter Edward Harris: Mr. Chairman, until the occasion this winter to which my hon. friend has referred the present limits had seemed adequate for any normal business the bank felt it should do, and that is still the case. On the other hand, when there was an application to the industrial development bank with respect to a loan which would run not to $300 million but to considerable sums of money, it was at that time noticed that if the bank should decide that this was a proper means of assisting, they did not have the statutory authority to do so. Therefore the government at that time, without making a decision, nevertheless were seized with the fact that if the bank felt this would be a proper loan we would have to ask parliament to amend the act to give it scope to take care of the proposed activity.


[Stage Direction]
Item agreed to.
Department of Insurance-
158. Departmental administration, $517,092.
Mr. Coldwell:: I should like first of all to draw the minister's attention to the question asked by my friend and colleague the hon. member for Winnipeg North Centre, on June 30. He asked whether the Minister of Finance had considered a report made to him by the superintendent of insurance concerning the Canada Health and Accident Assurance company, of Waterloo, Ontario. His question reads:
In view of these reports will there be any amending legislation at this session to prevent further

improper and improvident practices such as are referred to by the superintendent of insurance?
The practices referred to were carried on by the president of the corporation. I notice that in the report for the year 1953, tabled in this house this session, the last paragraph but one refers to this particular matter and states as follows:
In the absence of any change in the present arrangements, I am bringing this matter to the attention of the minister because it is undoubtedly one that will have to be taken into account when considering the renewal of certificates of registry on March 31 next.
What action, if any, was taken along the lines wliich evidently the superintendent of insurance has in mind? Has any action been taken?


Walter Edward Harris: No, no action was taken by the minister before March 31. However, the knowledge that the correspondence between the company, the president of the company and the superintendent of insurance would be published was recognized both by the president and by the minister. It was hoped that that action in itself might possibly bring about a settlement of the differences between the superintendent of insurance and the president of the company.
I have been kept informed by the superintendent; and while it would not be correct to say that any change has been made in the plan by the president or the company with respect to the particular question, I might say the president of the company knows the minister's views on this and I am hopeful it will not be necessary to take any further action by the time the licence comes up for renewal at the end of the fiscal year.


Major James William Coldwell: Supply-Finance
to Mr. Putnam would in 20 years, assuming a regular increase of $125,000 a year in premium income, which seems conservative, since in the years 1949 to 1953 the net premium income increased by an average of $331,850, amount to $357,375 while the cost to Mr. Putnam of buying the building would be $236,880. Thus at the end of 20 years Mr. Putnam, assuming that he is still alive, as a result of this arrangement would realize a property costing $150,000 plus a cash surplus of $120,495, or a gain of something like $270,000. It is impossible to guess at what the sale value of these buildings might be at the end of 20 years, but in view of the terms regarding repairs and all the rest of it which the company undertakes, it would be surprising if the depreciation on the building would be very great. When you consider that this is a growing city, probably the property will be even more valuable than at the present time.
What do the policyholders of the company, and the company, lose on this deal? If the company had purchased the buildings under the same terms as the president, and there is no reason of course why it could not, the net gain to the company at the end of 20 years would be $270,495, provided the payments on the property under the terms of the sale agreement were carried in the balance sheet as an investment in real estate. This is without making allowance for income tax. In connection with income tax, I would quote from Mr. MacGregor's letter of December 17, 1954, to Mr. Putnam as follows:
Income tax would, of course, have an effect on these results but not enough to alter the main conclusion. It is impossible to predict tax rates or the taxable income of the company in the future but some indication of the possible effect is given by assuming the continuation of the existing rates and taxation at either the minimum rate of 20 per cent or the maximum of 49 per cent.
If I gauge right the intention of the government, those tax rates are liable to come down rather than go up.
On the basis of income tax at 20 per cent, the net burden of rent would be 80 per cent of $357,375 or $285,900, whereas the net cost of interest would be 80 per cent of $86,880 or $69,504. The advantage in favour of purchase would then become $216,396 instead of $270,495. On the basis of income tax at 49 per cent, the corresponding figures would be $182,261 for rent, $44,309 for interest, leaving an advantage of $137,952 in favour of purchase.
One can see immediately that the president of the company is reaping a tremendous advantage at the expense of the policyholders and shareholders of the company. Let us see what the superintendent charges, and I am referring now to a letter dated December 17, 1954, from the superintendent to Mr. Putnam in which he says:
I have questioned and objected to the present arrangements mainly from two aspects, although to

a large extent they are closely related. The first was the improper position of yourself as president and a director entering into contracts and arrangements that I think clearly violate the spirit, if not the letter of the act; and the second was the improvident nature of the entire arrangements from the company's point of view.
Then in his letter to Mr. Putnam of October 15, 1954, the superintendent says:
I cannot escape the conclusion in the present instance that the transaction in question has been designed for your personal profit which very likely will be at the expense of the company later.
Then in his letter to Mr. Putnam of November 8, 1954, the superintendent says:
Having regard for the above, it is manifest that the company would pay more, as tenant under the lease, than it would pay to purchase the property and it seems correct to state that the present arrangements would result in the company buying the property for you personally, together with a substantial amount to spare, in your favour. The whole arrangements are, in my opinion, so improvident from the company's point of view and so improper from your point of view (as president) that I think they should be completely reconsidered by the company's board of directors.
Apparently they have not been. Then in his letter to Mr. Putnam of December 17, 1954, the superintendent says:
Consequently, the attempt to justify what has been done on the grounds of a desire to keep the company's funds in a liquid condition practically reduces to nonsense.
Mr. MacGregor's letter to Mr. Putnam of January 12, 1955 contains the following:
The argument advanced up to date in support of the present arrangements is, I think, tantamount to contending that in order to keep the company's assets in a liquid condition, it is better for the company to buy the property for the president than for itself.
What is the real issue in this particular case? Apart from the broader issue of a national public health insurance program, which would eliminate companies like the Canada Health and Accident Assurance company, the narrower issue becomes this. Should the president or director or shareholder of a company of this description be allowed to lease property to that company? "Canadian Companies", a standard work by Wegenast on company law, is clear on the principle that should be followed, even though some of us, of course, will recognize this principle as being breached quite often, perhaps more frequently than it is observed. According to Wegenast:
A contract made between directors or other agents of a company on the one hand, and the company on the other, may be vitiated by reason of the disability of agents resulting from the relation existing between them and the company. This depends on the general principle of equity that a trustee cannot enter into engagements in which his personal interest may conflict with his duty as trustee.
That is a sound principle of company law, and it seems to me that in this case it has

been completely violated. What about our own legislation regarding insurance companies? I think it makes it plain that at least it is illegal for the director of an insurance company to sell property to the company. Let me quote section 66 of the Canadian and British Insurance Companies Act, chapter 31, Revised Statutes of 1952. This is what it says:
All investments and deposits of the funds of any company shall be made in its corporate name, and no director or other officer thereof, and no member of a committee having any authority in the investment or disposition of its funds shall accept or be the beneficiary of, either directly or indirectly, any fee, brokerage, commission, gift or other considerations for or on account of any loan, deposit, purchase, sale, payment or exchange made by or in behalf of the company, or be pecuniarily interested in any such purchase, sale or loan, either as borrower, principal, co-principal, agent or beneficiary, except that if he is a policyholder he is entitled to all the benefits accruing under the terms of his contract.
It seems to me that is a wise provision in the law regarding insurance companies, but the question I am asking the minister is this. Is there any difference in principle between a director selling property to his company and leasing property to his company? If, as the superintendent of insurance maintains, the action of Mr. Putnam violates the spirit if not the letter of the act, then I suggest to the minister it is time we amended the letter of the act by inserting the word "lease" after the word "sale" in the section.
I wanted to bring this forward on behalf of one of my colleagues who intended to discuss it had he been here. The hon. member for Winnipeg North Centre would have brought it to the attention of the minister. I do not know whether there are other cases of this description. I do not think there are; otherwise the superintendent of insurance would have noted them. I want to compliment the superintendent of insurance. We have been very fortunate in our superintendents over the years. His predecessor was a man for whom this house had very high regard, and his successor is one who is also earning our esteem. But it seems to me that if the law is weak in itself in these particulars it should be rectified.
I am bringing the matter to the attention of the minister because it is undoubtedly one that will have to be taken into account when considering the renewal of the certificates of registry on March 31 next. It seems to me that here is the remedy. Refuse to register that company unless the president dispossesses himself of what is, from the point of view of the policyholders and shareholders of the company, this very iniquitous lease. The minister has that power. He has the power to set an example in this case which, I believe,
Supply-Finance
would have a salutary effect if any others wanted to attempt to make the same sort of deal.
I have never seen a deal of this description which was so advantageous to a president. I cannot understand the directors. I think they were lax in their duty, or they were stupid, or they acted in collusion with the president. I think the whole board of directors should be dismissed by the shareholders and replaced by people who have some intelligence and could be trusted to protect the interests of both the shareholders and the policyholders. I ask the minister what he is going to do about it when the superintendent of insurance puts it up to him as squarely as he does in this report.


Mr. White (Middlesex East):: I should like to ask the hon. member for Rosetown-Biggar a question. Are you aware of the fact that many hospitals will not accept a deal with a policyholder of this company? They make the patients pay direct to the hospital and then collect from that company.


Major James William Coldwell: I am not aware of the operations of the company. This company has grown, and it is now the eleventh in Canada. If that is the situation, it is an added reason why the recommendation of the superintendent of insurance should be carried out. I was unaware of that, but it is a very interesting point. I think it should be publicized and our people warned against taking policies in such companies.


Walter Edward Harris: The report of the correspondence and the comments the hon. member for Rosetown-Biggar has made would indicate that this is somewhat complicated. It is complicated by two rather obvious things. First of all this decision was made, of course, by the board of directors and was referred back to them by the superintendent of insurance. They did reconsider it and did not take any other action. In the meantime there was an annual meeting of the company, at which it is not possible for me to say whether in any positive sense they endorsed this particular arrangement.


Major James William Coldwell: The president holds the
majority stock.


Walter Edward Harris: Yes, but permit me to continue. We were informed that no minority shareholder raised the question, even in the light of the correspondence which had been carried on by the superintendent of insurance with the president of the company. That is not an excuse for any action I might take. On the other hand, this correspondence has been going on since the fall and carried on through the winter. The superintendent of

Supply-Finance
insurance has kept me informed of the letters, particularly during the winter period when we were coming up to the 31st of March.
I should add, however, that the correspondence is still going on. We have had a very acrimonious correspondence, not only with the president but with others on his behalf in connection with this transaction. Earlier this week I signed a letter answering one of them. The incident is not closed by any means. Without saying that the minister would consider an amendment to the act if his powers are limited at the moment, let me put it that we are continuing consideration of this particular case. But my hon. friend should bear in mind that the policyholders, being policyholders of a joint stock company, would not necessarily benefit by any cancellation of this arrangement or anything of that nature except in so far as the additional funds might act as something to assist the company in a competitive field.
I do not think the house would expect me, within the four months, shall we say, after the first letter from the superintendent of insurance advising the company of his disapproval, to cancel a licence affecting a good many policyholders and a good many shareholders. Nevertheless this is not to say that corrective action should not be taken. I can only repeat what I have said, namely that the correspondence is still going on. I would add that the correspondents have given up the superintendent of insurance and are now writing to me in connection with this matter. I must say that I share the views of the superintendent of insurance on this point, and hope we find a way of dealing with the matter so it will not be discussed on my estimates next year.


Major James William Coldwell: I am happy to hear what the minister has to say. I am not suggesting that he should take precipitous action in a case of this sort because of the many persons and other considerations that are involved. I am glad to know that he agrees with the superintendent of insurance and that it will not be necessary to raise this matter a year from now.


Walter Edward Harris: I hope not.


Major James William Coldwell: He hopes not and I hope not. But I can assure him that if it is necessary, it will be raised. I hope the very discussion of this matter may have a salutary effect in any event. That was the purpose of raising it this morning in the house.


William Alfred Robinson: Shall item 158 carry?


Alexander Malcolm Nicholson: No. Before this item carries I should like to make a suggestion to the minister. When an increase in salary for

senior officials of the government comes along, I suggest that the superintendent of insurance should have favourable consideration. I consider that he has performed an extremely valuable service in connection with the correspondence with this particular company. I think hon. members of the house should appreciate the position in which civil servants find themselves. When they have to talk business with a gentleman who drives up to Ottawa in a Cadillac, with a financial record behind him such as Mr. Putnam has, it takes a great deal of courage to stand up for what is right as the superintendent of insurance certainly has done in this particular case.
The correspondence with Mr. Law, one of the directors, suggests something of the abuse the superintendent receives. In Mr. Law's letter of December 27 to Mr. MacGregor he says this:
In view of this you have led me to come to the conclusion that a director of an insurance company requires a different type of brain and training and if this is the case I would appreciate learning from you what myself and the other directors require to qualify us as directors of an insurance company. In this respect I am quite prepared to follow any suggestions that you may have of a concrete nature.
In order to proceed along these lines I would respectfully suggest that you give me direct answers to the following questions:
1.	As directors of the Canada Health and Accident Corporation are we not within our rights to decide on a policy of whether the company shall refrain from owning real estate?
2.	Having decided on the above policy and surveyed the local properties available for rent . . .
I will skip this paragraph and go to the next one.
5. Que. (from Mr. Dunn) "In ordinary commercial practice this would never be a problem but is there any section of the act that prevents an officer of a company from owning real estate and renting such to a company in which he is a major shareholder?"
This is Mr. MacGregor's reply.
Ans. (from Mr. MacGregor): "No, but under section (66) such an officer would not be allowed to sell such real estate to the company ..."
I submit, Mr. Chairman, that all hon. members should read carefully the correspondence which appears in the report of the superintendent of insurance for the year ended December 31, 1953. I am sure they would get a good deal of satisfaction from the fact that we have in the civil service of Canada men and women who are prepared to stay with the service when they see evidence as to what might have been if they had gone into the private insurance field. I direct attention to these two paragraphs in the superintendent's letter of December 17, found on page xli

of his report. This is in a letter from Mr. MacGregor to Mr. Putnam. The first paragraph reads as follows:
I have questioned and objected to the present arrangements mainly from two aspects, although to a large extent they are closely related. The first was the improper position of yourself as president and a director entering into contracts and arrangements that I think clearly violate the spirit, if not the letter, of the act; and the second was the improvident nature of the entire arrangements from the company's point of view.
With regard to the improvident nature of the arrangements, he has this to say, as found at page xliii:
Turning now to the improvident nature of the present arrangements from the company's point of view, the simple fact is that the company would pay more under the lease than it would to take over the sale agreement . . .
It is very difficult, Mr. Chairman, to understand how the president of a company can argue that this company could not afford a cash payment of $15,000 because they wanted to keep their assets in a liquid position. When the president offered the other directors the privilege, they turned it down and he took it on.
The discussion in connection with this matter-


Some hon. Members:: Oh, oh.


Alexander Malcolm Nicholson: Mr. Chairman, I can quite realize that some hon. members do not want-


Mr. Pickersgill:: Mr. Chairman, has the rule against tedious repetition been suspended?


Alexander Malcolm Nicholson: If the Minister of Citizenship and Immigration wishes to defend this sort of behaviour I wish he would have enough courage to stand up and say so, instead of interrupting an hon. member who has the floor.


John Whitney Pickersgill: Mr. Chairman, I have been challenged. I do not defend-nor would I attempt to do so-tedious repetition which is against the rules of the house and in which the hon. gentleman is indulging.


Alexander Malcolm Nicholson: Mr. Chairman, I ask the
Minister of Citizenship and Immigration to refer to the tedious repetition. There has been no tedious repetition. I ask him to apologize, Mr. Chairman, for suggesting that this has been tedious repetition.


William Alfred Robinson: Order. There is no necessity whatsoever for the minister to apologize for such a remark. At the same time I am not going to decide as yet that there is tedious repetition.


Alexander Malcolm Nicholson: I suggest, Mr. Chairman-


Walter Edward Harris: If you will permit me to intervene, may I say that I was under the impression-and I could be wrong, Mr. Chairman-
Supply-Finance
that my hon. friend was reading correspondence that had already been referred to, in fact, sentence by sentence, by the leader of the party to which my hon. friend belongs. I wonder whether the hon. member for Mackenzie would not accept what I thought was a fairly frank statement on my part as to what I thought about this transaction, my undertaking that I would continue to look into the matter during the period of time that I hope to have when we prorogue, and my assurance that I am hopeful that we shall not have to discuss this matter under my estimates next year? Would the hon. member not do that so we can fix a time when we can prorogue?


Mr. Lennard:: Carried.


Alexander Malcolm Nicholson: I would have been through by now, Mr. Chairman, if I had not been interrupted by the Minister of Citizenship and Immigration. His interjection would give me the privilege of speaking for another half hour. However, my respect for the other hon. members of the house will cause me to refrain from exercising my rights.
I do not wish to conclude without referring to the fact that the superintendent of insurance took exception to the item in connection with supplying a Cadillac car to the president out of the funds of the company, and to the fact that, on the last page, he gives a table showing what the position of the company would have been. If the company had bought the whole property they would have had the property, taking into account interest and payments, for $236,000. They would have owned the property at the end of 20 years after allowing for interest and payments. But they will have paid, according to the present rental arrangement, $357,000. I am glad the minister has agreed to have a look at this matter. I hope that, a year from now, he will be able to give us a favourable explanation of the disposition of the case.


An hon. Member:: Amen!


[Stage Direction]
Item agreed to.
William Alfred Robinson: Shall I rise and report the resolutions?


Some hon. Members:: Agreed.
Resolutions reported, read the second time and concurred in.



WAYS AND MEANS

["I have the honour to inform the house that I have received the following communication:\nOttawa, July 28, 1955\nSir:\nI have the honour to inform you that the Honourable Patrick Kerwin, Administrator of the Government of Canada, will proceed to the Senate chamber today, the 28th July, 1955, at 1.30 o'clock p.m., for the purpose of proroguing the second session of the twenty-second parliament.\nI have the honour to be. sir,\nYour obedient servant,\nJ. F. Delaute,\nSecretary to the Governor General (Administrative)"]
Walter Edward Harris: that the house go into committee of ways and means.

Ways and Means
Motion agreed to and the house went into committee, Mr. Robinson (Simcoe East) in the chair.


Walter Edward Harris: Resolved, that towards making good the supply granted to Her Majesty on account of certain expenses of the public service for the fiscal year ending 31st March, 1956, the sums of $2,055,741,938.07, $147,724,276 and $500,000 respectively, be granted out of the consolidated revenue fund of Canada.


[Stage Direction]
Motion agreed to.
Resolution reported, read the second time and concurred in.
Mr. Harris thereupon moved for leave to introduce Bill No. 510, for granting to Her Majesty certain sums of money for the public service of the financial year ending the 31st March, 1956.
Motion agreed to, bill read the first and second times, and the house went into committee thereon, Mr. Robinson (Simcoe East) in the chair.
Clauses 1 to 4 inclusive agreed to.
On clause 5-Power to raise loan of $500 million for public works and general purposes.
['Resolved, that towards making good the supply granted to Her Majesty on account of certain expenses of the public service for the fiscal year ending 31st March, 1956, the sums of $2,055,741,938.07, $147,724,276 and $500,000 respectively, be granted out of the consolidated revenue fund of Canada.']
James MacKerras Macdonnell: I draw the attention of the committee to the fact that there is a change in the usual procedure. The usual form of the clause is that it has a second paragraph reading as follows:
All borrowing powers authorized-
By the section there set out.
-which are outstanding and unused shall expire on the date of the coming into force of this act.
I understand that the subclause has been left out because it is desirable that the outstanding borrowing powers, which I hope the minister will set out for us, should be retained, and I think the committee should be told what the total borrowing power still is.


Walter Edward Harris: Yes. When we passed the supplementary estimates we included in the appropriation bill provision for the borrowing of half a billion dollars. I believe that was on the 31st of March. The unused portion of that authority is now $205 million, and that added to the present $500 million that I hope will be voted will give us a borrowing power up to $705 million for the time being.


[Stage Direction]
Clause agreed to.
Clause 6 agreed to.
Schedules A, B and C agreed to.
Bill reported, read the third time and passed.

Mr. Speaker:: I have the honour to inform the house that I have received the following communication:
Ottawa, July 28, 1955
Sir:
I have the honour to inform you that the Honourable Patrick Kerwin, Administrator of the Government of Canada, will proceed to the Senate chamber today, the 28th July, 1955, at 1.30 o'clock p.m., for the purpose of proroguing the second session of the twenty-second parliament.
I have the honour to be. sir,
Your obedient servant,
J. F. Delaute,
Secretary to the Governor General (Administrative)



BUSINESS OF THE HOUSE


Walter Edward Harris: Mr. Speaker, in view of what has just been said perhaps Your Honour could have the bell rung at 12.40 so we could reassemble here.


Mr. Speaker:: Then I shall suspend the sitting. Before I leave the chair, may I thank hon. members for their co-operation throughout the session. I know I speak for my colleagues, the Deputy Speaker and the deputy chairman, and I think on your behalf I may thank very warmly the Clerk and the other officials who work under him for their splendid efforts.
As part of our prorogation exercises there will be the traditional distribution of prizes in my chamber upon return from the Senate, to which all hon. members and members of the press gallery are most cordially invited.


Louis Stephen St-Laurent: Mr. Speaker, in view of the fact that you have told us that we will not congregate here but rather in your chambers when we return from the summons of His Excellency the Administrator, may I take this opportunity to extend to you on behalf of all members of parliament our thanks for the courtesies we have all enjoyed from you, sir, in the course of this session, and our very best wishes for a restful period following the not so restful period that we have experienced in the last four or five weeks.
May I take this opportunity to express to all members of parliament my own personal gratification. This has been a long session. I think we can feel that we have appropriately served the interests of our constituents and of the Canadian nation, and that on the whole it has been a fruitful session that will contribute to the development of the Canadian nation which is showing

rather more encouraging promise at this time than we had anticipated at an earlier period during the session. I express the hope that this may continue, and that we may all have an enjoyable and profitable rest, to return with the same vigour we have displayed during this session when we meet again for the forthcoming session.


George Alexander Drew: Mr. Speaker, I think we all would wish to join in the expression of appreciation of the various gestures that have been extended to us by way of hospitality on the part of Madame Beaudoin and yourself, and perhaps it is appropriate that you have indicated that this hospitality will be extended beyond the formal termination of this session within a short time.
I concur in what the Prime Minister has said about the fact that there has been much accomplished during the session. Our views as to what may have been the successful aspects of the session may differ, but may I suggest, however, that in any event we all leave this session with that rather priceless heritage of our parliamentary system, the ability to differ in the views we express and at the same time build and maintain the friendships that have been established here on both sides of the house. I know that all of us in leaving today will extend to everyone else the hope that there may be a well deserved holiday after the end of this session and that when we meet again all those who are now here may return in good health and ready for another session of the parliament of Canada.


Major James William Coldwell: merely want to say, Mr. Speaker, that I agree with all that has been said in relation to yourself, as Speaker, and the atmosphere in the house; I am sure we all share that view. One other thought comes into my mind, however, as we are about to prorogue. Perhaps I might say this now as a somewhat senior member of the house. In the number of sessions and their prorogations that I have seen, there has always been a good atmosphere in this chamber in spite of what are sometimes sharp differences of opinion. We have always been well served by the staff of the House of Commons, from the page boys and the men who look after the security of the building right up to the Clerk himself.
What I really had in mind was this. I should like to extend, I am sure on behalf of all members of the house, congratulations to the chief whip of the Liberal party today and to couple with that the name of my own very good but absent friend, Mr. Angus Maclnnis. There are perhaps others, but these two members who have been with us and have served
Business of the House their constituencies so well were elected 25 years ago today. I want to congratulate them upon achieving the quarter century. I was going to say may we all do so, but that would not be quite frank or quite proper. I am going to say, however, quite frankly that I hope to do so.


Mr. Solon E. Low (Peace River):: I am sure no words of mine could possibly do justice to this occasion, any more than has been done.
I am very glad to say to you, sir, that the words spoken by the Prime Minister (Mr. St. Laurent), the Leader of the Opposition (Mr. Drew) and the hon. member for Rose-town-Biggar (Mr. Coldwell) express adequately the sentiments we feel. I should like to say again to you all those things that have been said. It is gratifying to me to see a session like this terminate, as it is terminating today, on a note of good will. You know, when we start our sessions it reminds me of nothing so much as the first bell in a good boxing match, where the men come out of their corners fighting. I think they have done that. You wonder if, when the final bell rings, they will go out fighting. But in this case they finished up the match, which has been a good one and a long one, on a note of good will. I want to say that I join in expressing the good will we feel toward everybody in this house for the work that has been done.


Mr. W. G. Weir (Poriage-Neepawa):: Mr. Speaker, I do not think I should allow this opportunity to pass without saying a word of appreciation, and thank you, to my friend the hon. member for Rosetown-Biggar (Mr. Coldwell) for his reference to me. I was very pleased to note that he coupled with that the name of Mr. Angus Maclnnis. It is true that it was 25 years ago today that we were both elected to this House of Commons for the first time, and we have continued to be reelected in succeeding elections since then. There have been, of course, a good many changes during that period of time, but on the whole this has been a very enjoyable institution. The fellowship has been the best you could find anywhere in the world. It has been a most enjoyable and profitable place to be. For any little contribution I may have made I am profoundly grateful, and more than repaid by the good fellowship I have experienced with my fellow members in this House of Commons.


Mr. Speaker:: May I just say a final word of thanks to the Prime Minister (Mr. St. Laurent), the Leader of the Opposition (Mr. Drew), the hon. member for Rosetown-Biggar (Mr. Coldwell) and the hon. member for Peace River (Mr. Low) for the kind words they have addressed to the occupants

The Royal Assent
of the chair. I take it that those kind words may signify that I am absolved, at least conditionally, from all the mistakes I have made during this past session.
Is it now the wish that this sitting be suspended until 12.40?


Some hon. Members:: Agreed.
At 12.28 p.m. the sitting was suspended.



SITTING RESUMED

[Stage Direction]
The house resumed at 12.40 p.m.

[Stage Direction]
A message was delivered by Major C. R. Lamoureux, Gentleman Usher of the Black Rod, as follows:
Mr. Speaker, His Excellency the Administrator of the Government of Canada desires the immediate attendance of this honourable house in the chamber of the honourable the Senate.
Accordingly, Mr. Speaker with the house went up to the Senate chamber.
In the Senate chamber, the Administrator of the Government of Canada was pleased to give, in Her Majesty's name, the royal assent to the following bills:
An act to amend the Radio Act.
An act to amend the Prairie Farm Assistance Act.
An act to amend the Income Tax Act.
An act to amend the Excise Tax Act.
An act to amend the Income Tax Act, the Railway Act and the Tariff Board Act in respect of salaries of certain public officials.
An act to amend the Transport Act.
An act to amend the Customs Tariff.
An act to amend the Defence Production Act.
An act to amend the St. Lawrence Seaway Authority Act.
An act for the relief of Donald John McGillivray.
To these bills the royal assent was pronounced by the Clerk of the Senate in the following words:
In Her Majesty's name the Honourable the Administrator doth assent to these bills.
Then the Speaker of the House of Commons addressed His Excellency the Administrator as follows:
May it please Your Honour:
The Commons of Canada have voted supplies required to enable the government to defray certain expenses of the public service.
In the name of the Commons I present to Your Honour the following bill:
An act for granting to Her Majesty certain sums of money for the public service of the financial year ending the 31st March, 1955.
To which bill I humbly request Your Honour's assent.
To this bill the Clerk of the Senate, by command of His Excellency the Administrator, did thereupon say:
In Her Majesty's name the Honourable the Administrator thanks her loyal subjects, accepts their benevolence, and assents to this bill.
iMr. Speaker.]

[Stage Direction]
After which the Administrator was pleased to close the second session of the twenty-second parliament of Canada with the following speech:
Honourable Members of the Senate:
Members of the House of Commons:
Since we first met earlier this year there has been considerable evidence that the policies of the free nations to combine their strength in order to deter any threat from a potential aggressor have been successful. My ministers believe that the more encouraging signs of international harmony are proof of the wisdom of the measures thus taken in co-operation with other democracies. While continuing to support the United Nations and to use all available diplomatic channels for the easing of international tensions, they remain convinced of the necessity of continuing to improve the combined defence power of the North Atlantic alliance. Towards the fulfilment of this aim you have approved the Paris agreements which ended the occupation of Western Germany and which enabled the German Federal Republic to join the defensive alliance cf the West.
During the session several of my ministers met with representatives of the ten provincial governments to make arrangements for a federal-provincial conference which will take place this autumn.
Meetings between the federal and provincial representatives were held in June for the purpose of determining a plan to share the costs of assistance to unemployed persons in need. The suggestions put forward at these meetings are now being studied by the provincial governments and the acceptances of three of them have already been received.
In the early months of the session the employment situation gave some concern but more recently the requests for labour have greatly increased and the expanding production, rising exports and prospects of bountiful crops indicate a continuing healthy state of the Canadian economy.
Because the economic well-being of the nation depends to such an extent on a high level of foreign trade, the government has pursued policies aimed at securing the most favourable export markets for the products of our labour and our land. At the international review of the general agreement on tariffs and trade which took place last fall and winter, Canadian delegates were active in supporting a policy of removing trade restrictions and negotiating improved tariff arrangements.
A substantial revision of the Unemployment Insurance Act has been made in the light of past experience with this legislation. The coverage of the act has been broadened, the periods of entitlement to benefits revised and the amount of both regular and supplementary benefits augmented.
To maintain the high standards of welfare measures in this country you have made amendments to the Blind Persons Act. the War Veterans Allowance Act and the Veterans Benefit Act.
Legislation has been enacted to provide for the inspection of meat and the establishment of standards for other agricultural products.
The amendments made to the Municipal Grants Act increase substantially the amounts to be paid by the government annually to the municipalities for their services to public buildings.
The various enactments relating to the Canadian National Railways have been consolidated in one statute.

You have passed a measure amending the National Parks Act and making provision for the establishment of a national park in the province of Newfoundland.
Other measures you enacted include: the International River Improvements Act, the Foreign Aircraft Third Party Damage Act, the Canadian Forces Act, 1955, the Great Lakes Fisheries Convention Act and the Exportation of Power and Fluids and Importation of Gas Act.
Amendments have been made to the Criminal Code, the Canada Grain Act, the Railway Act, the Radio Act, the Prairie Farm Rehabilitation Act, the Defence Production Act, the Judges Act, the Canada Elections Act, the Transport Act, the Fisheries Improvement Loans Act, the Prairie Farm Assistance Act and the St. Lawrence Seaway Authority Act.
A royal commission has been set up to inquire into and report upon the prospects for Canada's economic future.
A committee has been appointed to advise upon a uniform system of establishing manufacturers' prices for the application of the sales tax. Members of the House of Commons:
I thank you for the provision you have made for all the essential services for the current fiscal year.
Honourable Members of the Senate:
Members of the House of Commons:
In taking leave of you at this time I pray that the blessing of Divine Providence may attend you.
This concluded the second session of the twenty-second parliament.
[The following items were passed in committee of supply]:

[Stage Direction]
Grants to universities-
126. To provide grants to institutions of higher learning recognized in each province by the government of Canada and the government of the province as being universities or institutions of equivalent standing equal to an amount, for each province, not exceeding 50 cents per head of its population as certified by the dominion bureau of statistics divided among the recognized institutions of the province proportionately to their enrolment of full time intramural students in personal attendance at the recognized institution or at an institution in the same province affiliated with it who are registered in courses of university level recognized as leading to and counting year for year toward a university degree awarded by a
Prorogation of Parliament
university in Canada and the Minister of Finance may for this purpose more particularly define the terms "university level" and "university degree". $7,800,000.
Miscellaneous grants-
127. Canadian association of consumers, $10,000.
Loans, investments and advances-
539. Loan to the Ottawa Civil Service Recreational Association, on such terms and conditions as the governor in council may approve, to assist in the construction of the W. Clifford Clark memorial recreation centre, $500,000.
Payments to municipalities-
653.	Grants to municipalities in lieu of taxes on federal property-to provide for payments to municipalities in accordance with the Municipal Grants Act, and the rural municipal grants regulations as made and established by order in council P.C. 1954-1621, dated October 28, 1954, and to provide for payments to municipalities under order in council P.C. 1954-1497, dated October 6, 1954, in respect of the cost of medical and hospital services and supplies furnished to federal employees and other persons specified therein-further amount required including authority to regard the admiralty properties in the city of St. John's, Newfoundland, as federal property notwithstanding that formal transfer of administration has not been completed, $3,177,200.
Contingencies and miscellaneous-
654.	To provide for expenses of a royal commission on economic prospects, including the payment, notwithstanding the Civil Service Act, of honoraria or allowances as may be authorized by the treasury board to officers, clerks or employees permanently employed in the civil service for services rendered by them to the commission, $300,000. Special-
655.	To provide for a contribution to the government of the province of Ontario for assistance in meeting costs resulting from floods, arising out of "Hurricane Hazel", on October 15 and 16, 1954 (revote), $669,742.
Miscellaneous grants-
656.	To provide for a grant to the Canadian Olympic association to help defray expenses of the Canadian team for the 1956 Olympic games, $60,000.
789. To authorize the purchase of 3,600 shares of stock of the international finance corporation being Canada's subscription as a member thereof for the amount of $3,600,000 U.S., notwithstanding that payment may exceed or fall short of the equivalent in Canadian dollars, estimated as of May, 1955, $3,555,000.
Auditor General's office-
55. Salaries and expenses of office, $697,598. Department of Insurance____
158. Departmental administration, $517,092.