Loading...
The Seaforth News, 1932-12-08, Page 7THUIR,SDAY,r.D'ECE'NIBER 10, 1932 THE SEAFORTH NEWS. PAGE SEVEN (Canadian Pacific Welcomes Cooperation But Opposes Compulsory Arbitration ,E. W. Beatty K. C., Chairman and President Makes Vigorous Protest Against Proposed Arbitral Board in Presenting Company's Case Before Senate Committee Considering Legislation to Implement Duff Report. 11%CO1GiIiQG the isuggestion VM ofo- oporati c on and volun- tary agreement, but vigorously protesting 'against tho proposed Arbitral Board and compulsory ar- bitration, ID. W. Beatty, KC., Chair- man and President, Canadian i'a- cifio Railway, recently stated the case fel. his 'Company before the Senate Railway Committee consid- ering legislation to implement, re- commendations made by the Royal Commies'= on Railways and transportation in Canada. "Against the principle o f compulsory ar- bitration a ni- bodied in part III, of the Bill t i1 a Company must enter its most vigorous protest," M r. Beatty declar- ed. ',Ari exam- ination of the subjects enum- erated in Sec- tion 19," h e Mr. E. W. Beatty continued,"will Chairman and Presiden ghOw• that the Canadian Pacific Ry, jurisdiction of the Arbitral Tribunal embraces matters of so great importance as to amount to virtual control in all major branches of ,its under- taking. Take alone the subjects of joint terminals and the pooling of traffic. The former are the nerve centres of railway opera- tions, and the latter involve the whole benefits received from such operations. It is to be open to either party to propose measures involving these vital matters, and, if agreement is not reached, both the principle of the proposal and the terms on which it is to be car- ried out are to be left to arbitra- tion. It will be noted that every. one of the subjects involve ques- tions of policy, questions of ad- ministration,and, underlying both of those, questions of finance, and, for that reason, they are in my submission, not fit and proper to be determined by arbitration, The Company welcomes the suggestion of voluntary agreement as to such matters. They are quite proper- ly the subject of voluntary co- operation, but the Company is startled by the suggestion that they may be forced upon it by an authority not responsible to its shareholders. Control by a tri- bunal constituted as proposed should not be imposed upon a pri- vately owned railway company. operating in competition with the Government Railways. "The sweeping character of the arbitration feature of the Bill is shown by the provisions of Sec- tion 17, which declares that it is. to extend to all disputes between the•two companies. Probably this expression was intended as inci- dental to the measures of co-ope- ration enumerated in Section 19, but, in any case, it opens up a very wide field of jurisdiction. "As to the Arbitral Tribunals, it will be observed that whether they consist of three or five mem- bers, the Canadian Pacific is in every case to have a voice in the appointment of only one member of the Board. In the last analy- sis, therefore, the Company will be co-npletely divested of control of its property in favour of en outside authority. I cannot too strongly urge upon you the seri- ous nature of this feature of the Bill, as well from the standpoint of public policy as of the rights and interests of the shareholders of the Canadian Pacific. "To control of its undertaking as provided by the existing statu- tory law, the Company takes no exception. Regulations through the Board of Railway Commission- ers and the control of rates, faci- lities and services in the interest of the public is a proper subject of legislation, but Part III. of the proposed Bill is a very different matter. "If it be the view of Parliament that .co-operation shall be con- trolled and directed by another and independent tribunal, whose decisions shall be final and bind- ing on the Canadian Pacific, then I would suggest, for your consid- eration, that the Government of Canada and the Canadian Pacific. should enter into an agreement far a period of years by which the Company would agree to this form of administration upon re- ceiving protection to the holders of its securities and shares; that consideration being given because of the relinquishment of the con- trol of their own property during the term of such agreement." In leading up to his statement of the Company's position, Mr. Beatty pointed to the great part the Company has played in the up building of Canada and argued that the proposed Arbitral Board was in fact an invasion of the Companys' charter rights,—rights granted•it in return for construct- ing the road and thus making Confederation, an established fact. "During the fifty years of its existence the Company's under- taking has expanded with the growth of the country," lie said, "until its property investment now represents more than $1,100,000,- OOQ, held by not less than. 1.0,000 share and security holders, over 50,000 of whom are Canadians. Since 1902 the Company has is- sued $270,000,000 Ordinari Capital Stock at an average premium of 42%, receiving therefor $382,616,- 000 all without expeuse to the Do- minion, direct or indirect. At that average price, a dividend of 5% yields • a return of only 3.53% to the shareholders on their in-. vestment. It is my submission to your Committee that the magni- tude of their undertaking and its importance to the country entitle them to consideration in any le- gislative measure affecting their control of their property.: They have provided Canada with a transportation service on land and sea; that is unexcelled in the world, and there is no part of her settled territory and no phase of her commercial life and wel- fare that is not touched by the operations of the Company and concerned in the continued suc- cess of its enterprise. As the Royal Commission has said, the Company is Canada', largest tax- payer. Its tax bill during the last ten. years averaged more than $7,000,000 per annum, and since its incorporation it has paid up- ward of $116,000,000 in taxes. Dur- ing the last fifteen years it has contributed to the Federal ex- chequer echequer the sum of V5,500;000. As a citizen it has contributed its full share to institutions of a pub- lic nature for the advancement of social and commercial welfare." The Company, he contended, has been the foremost agency in Can- ada in the work of colonization, immigration and development, and as a war effort had been able to advance or guarantee to the Em- pire cause more than $100,000,000, and to furnish means of transpor- tation for approximately 1,000,000 soldiers and 4,000,000 tons of war supplies. Mr. Beatty referred to the con.- solidation of the Government rail- ways ten years ago. The Canadian. National had at once begun an active and aggressive campaign of competition backed by the credit and resources of the Government. To alleviate the situation arising out of that competition the Bill proposed close co-operation be- tween the Canadian National and the 'anadian Pacific in order to effect necessary economies. "So far as the Canadian Pacific is concerned," he continued, "'we would accept a statutory direction that we should co-operate 'because we are willing to co-operate. We are satisfied that a fuller measure of co-operation will be secured from three causes, first, the ne- cessities of the situation; second- ly, the statutory direction by Par- liament that this should be a mat- ter atter of policy by the private com- pany, and, thirdly, because of the erection of a board " of trustees specially charged with the duty of carrying out the policy of Parlia- ment arliament in this respect. "I observe in some of the ad- dresses delivered in the Senate upon the bill that some phases of the measure were advocated or accepted in the belief apparently that there was no other alterna- tive which would bring about the economies so sorely required. Quite obviously, thereis only one way in which the maximum eco- nomies are obtainable and that is unification for the purpose of ad- ministration, whether for a limit- ed number of years or for a long term. The Royal Commission has considered and rejected such e plan for reasons they, have ex. Blained in the Report, but there can be no doubt of its very great advantages from the point of view of economy and efficiency. "I am not an alarmist, nor am 1 a pessimist so far as Canada is concerned. I commend, however, to the committee the conclusions in the last paragraph of the Re- port of the Royal Commission as to the effect on the Dominion's finances and on the Companys' position unless we take heed of the present grave situation and adopt drastic measures to correct it. I have already said that I regard the Railway problem as the most vital domestic problem confronting the Canadian people. In spite of its importance, there is a great lack of understanding of what the real facts are, and in consequence there has been until recently very widespread apathy about it." Mr. Beatty pointed out that the Royal Commission had found that tha identity of the two railways should be maintained, but that there should be a maximum of co- operation with a continuance of competition. A maximum of good will would be necessary to reconcile competition and co-ope- ration, and he believed that better results could be obtained through friendly efforts than through an Arbitral Tribunal. "The very fact that higher authority exists will tend to relax these efforts by weakening res- ponsibility," he declared. "I urge this in the interest of both com- panies. And it is a peculiar com- mentary on the logic of the Com- mission's findings when we read that consolidation for the purpose of administration is rejected be- cause it would put too great a power in the hands of a few men. This menace, in their judgment, is overcome by putting it'into the hands of one maul" 879 Fr1q Ltd A BARGAIN The Seaforth t'A News Special Offer ---New and Renewal Yearly Subscriptions To Subscribers New or Old For the next few weeks the subscription to The Seaforth News is 50c a year, new or renewal. No matter when. your subscription expires, subscribers will save by re- newing now. 50c a Year pe'iN LIP.Ad Seaforth A PROFIT-SHARING OFFER. The Seaforth News takes pleasure in making this very special offer of 50c a year. Rather than spend large sums of money in other ways, such as premiums or contests, The .Seaforth News is giving every subscriber who is a citizen of. Huron or Perth, this cash advan- tage. This offer is good for the next few weeks only. SNOWDON BROS. Publishers., Nov. 5, 193x. ews iimmaimommimmisimmamonimmummimmimmimw NO MORE PILES How to End Painful Pies Without Salves or Cutting It takes only one' bottle of Dr. J. S. ,Leonihardt's prescription — HEM- iRiOfllD to prove hew easy it is to end Itching, bleeding or protruding piles. mhds . internal remedy acts quickly even in old, stubborn cases. HEM- /RIO(IID succeeds because 1t heals and restores the affected parts . and drives out the thick impure blood in the low- er ower bowel—the cause of piles.'` Only an internal medicine can do this, that's 'why salves and suppositories fail. Chas. Aberhart and druggists every- where sell HlE'M-ROl'D Talblets with guanantee- of money back if they do not end all Pile misery. COeOPIERATIVE INDUISTRY IS ADVOCATED BY U.F.O. !WIbhout a dissenting voice, and in an atmosphere of ,enthusiasm, the Un- ited Farmers of Ontario, meeting in session'last week at the King Edward Hlatel, Toronto, adopted their new platform' of social and economic re form which expounds the adoption of co-operative principles M. alt industry and ,commerce, ehe abolition: of special: privileges, the enactment of monetary and banking reform and the abolition of trade barriers. The program, which had been pre- viously announced and discussed from the platform and in the press, passed almost without any discussion. Most of "this w'as in praise of the execnitive which had compelled it. The vote up,an. it followed the a'ddres's of R. J. Scott, president, and H. H. Hannarnm, edu- cational secretary, both of whom had stressed the necessity of expanding co-operative effort along all .Lines of inelusttry. IIn• a preamble to the written pro- gram, copies of which had been dis- tributed aimong the delegates who fill- ed the •council chamber, immediate or- ganization of farmers of Canada to protect themselves and seek remedies for exis'tin'g evils was strestsed. ,Nathe intg of remedial or palliative nature could be done, it was stated, without strength, and strength lay ,only in .wid- er organization. (The pregra'm, as presented by Dir- ector W. C. 'Good, read as 'follows: 41) The recognition of the solidar- ity of mankind and 'the growing econ- omic inter -dependence of all peoples, involving among other things: (a) the abandonment of war. ('b) 'the removal of all trade 'barriers. (c) Initernatiottal action for monetary stability. 16) The reorganization of industry and conanreraa along co-operative lines, inw ofl'vin'g, among other things: (a) The develtlpment ,of consumers' co-operation, including the retail and wholesale distribution, and eventually the imanufacture, of the .necessaries of life. (b) The development df 'labor go- parttners'hip associations, and of "Pro- ducers' Co-operation" including the assembling, grading, processing, and bulk sale of primary products. (c) Ef- fective co-ordination a consumers' and producers' oo-operatives, so as to eliminate ,all waste, and secure and maintain equity as between producer and consumer. (d) The development of co-operative Nanking and credit in- stitutions. (3) The abolition of all dorms of spe- cial privilege; and to .that end, the shifting of the incidence di taxation from industry to privi'lege, so . as t0 secure: (a) The natural .relief: of on - employment 'through the stimulation of indusery generally, by relieving it of burdensome taxation. (b) The pre- vention of ex+ploitabion of 'the masses by the privileged few, nvi'tt its copse'- quem unjust and paralyzing distribu- tion of istribu-tion'of wealth. (c) The appropriation of community purposes, and the co•n- sequent securing of public revenues without imposing )barriers to trade or burdens on industry. 'ea) Monetary and banking reform. involving: (a) 'Stalbilizinig the purch- asing power of money, so as to avoid the disturbing effects of the business cycle, and secure justice as between debtor and creditor. (b) The recogni- tion that finance has become eseential- ly a ''xebec utility, and ought, there- fore, to be adm'iniftered for the bene- fit of all, either under state or co-opser- abive auspices. "Two dollars apiece from each farm. family in Ontario }will create en inde- pendent organization,° declared Mr. Good. "With $1,50 from each of us we can make our present organization effective. Rut with $2 from each fame family we can become powerful. I't would be up to you to go .otit and con- vert your neighbors. Ate classes ,mi society were realizing. that agriculture, the grea'tbasis of the present ci'viliza'tion, faked a crisis and bleat ;something must be done if it were to continue, stalled Me. Scott in his presidential address. that theirequlties were secure, faced loss of everything. Farm mortgages were not foreclosed at present merely because the mortgage holders realized that sale of the farms would not bring mortgage value. iBut, he declared, with an upturn in business cond'ition's, with a return of better prices, nvortgages throughout Canada would be foreclosed on. thou sands of farms for four .out of five farms in the 'Dominion were nnantgag- ed. Similarly thoneands df houses wouldbe taleen from their tenants who held oneethird and one-half equities hi them. "It 'seems to me that this organiza- tion should stand now for the estab- lishing by legislation of the debtors' equity in his hohne or his farm," de clared Mr.. Scott. "If he has paid one- third 0* the purchase price, then I hold before all' the laws of justice that he has one-third equity in that prop- erty and should pay idberest only an the equity of the creditor. And his equity should be established by law, That .was the prolb'iem which the or- ganization must face, Mr. Scott con- tinued. The homes of the people was the greatest issue today. The people had paid for their holdings, prices which they could not control were sweeping- those holdings aside. Funda- mentally, however, they held an equity to the amount of their investments, which represented their labor and work for many years. "Alt classes fn the state must bear an equal share of the burden," stated Me. Scott, "Oat the financial interests who hold creditors' equities alone. Aha areti-1S'hylook "bill must become legis- lation to protect our people. A debtors equity, established by 'law with mach- inery to assure it is our problem." let the conclusion of Mr. Scott's ad- dress, Mrs. H. L. Laws of Cayuga mowed that a committee be appainbed to implement his proposals and seek legislation. Every farmer knew, she said, that farms were not sold out for mortgage payment only because they "would not real1ize one-half of the mortgage .claim." "It was molt a custom to do any- thing on the president's report other thou to receive it, de+claned W. A. Ames, ainetcbor. Mr. 'Scott supported this stand but suggested that if any- one wished bhey could make an indee pendent motion later. The farimerrs' responsibility to bring about "fundamental changes in our economic system and reinstate demo- cracy in our legislative halls." was olaced'before the ,convention by H. H. Hannam, .educational secretary. "Our only hope of escape from ec- onomic chaos ties 1:1 the iire tam of a more just distr)bution o'f oueehising' power. And the longer we delay doing this conabittatiotrally the graver be- comes the danger of it being attempt- ed unconstitutionally," Mr. 'Hannam cleaned. lFla'grant abuses of the cam:al at system 'had developed, Production control had created price control; this propagated the race for the control of monopolies. Workers and fanners, everywhere, once sub's'tantial citizens with a belief D. H. McInnes Chiropractor Of Wingham, will be at the Commercial Hotel, Seaforth Monday, Wednesday and Friday Afternoons l�,nctaei of all kindssuceme- t'ully treated Electricity used. HENRYemeeemeesea U.S. SAYS MNIO" TO WAR DERT CANCELLATION 1The leaders of the United' ;States Congress aOd rank and file as ~weal, have said. an ,emphatic "no" to the new British and French notes asking postponement of the December 1115 war ddbt payments. • ;With the door to immediate debt. relief slammed shut on Capitol Hill, Washington, a hint came from the Whitt House that formal answers may not be forwarded by the United' States in response to the European ar- guments. lSecretaries Stimson and Mills con- ferred miith.;President Hoover for more than two Hours during the late after- noon yesterday, but both 1011 the 'ex- ecutive offices after nightfall, .` declar- ing "We have not decided what the next step will be." (Askedif the lengthy conference with the President had been to ,plan a reply to the French and British notes lath/leen replied': "I 'haven't said yet that there will be a reply. iThe British and French notes made essentially the same requests contain- ed in communications from these two countries two weeks earlier: As the first notes were'an•swered in consider- able detail through a statement of President Hoover and replies from the state department, it now seems likely. that 'President Hoovers . message to Congress will be the vehicle' through which the debtors will receve their re- plies. The general expectation in official circles is thalt'the President's message will make no recommendation of art extension of a moratorium, and that Congress will be asked toauthorize the creation of a debt commission to consider proposals of the `•European powers for a general readjtietment Of iiiter-g.avert-um entee deb t agreements. IA sharp recession• in the rate for the pound sterling featured the for- eign exchange market in London Op- ening at $321, against an overnight quotation of $3:20; the rate fell within an hour to 3!17. FORD HAS OPERATION Detroit.—White Henry Ford con- tinued Iris "a =zing convalescence" from his hospital bed, his physician' revealed that, the emergency operation on. the 6O-yeareold .motor magnate was' a rare case in medical annals. Dr. Roy ID. McClure, who lierformed the oper- ation, in an explanation of Mr. Ford's Meese, said his patient was brought to the Ford Hospital suffering from .gap- 'grenous appendicitis, which had be- come strangulated in the .hernia sac. He said he could find no more than 2b similar cases in all medical literature. Fish (Dealer: "Leebsters, madam; nice lobsters? 'Look, they're all olive." Lady;"Yes, but are they .fresh?" Want and For Seale Ade, -3 times 50c.