Bill (38) "An Act for the relief of the | between the Island and the Mainland and Bank of Prince Edward Island." (SIR between the Island and Great Britain, it ALEX. CAMPBELL.) became exceedingly difficult to get together a sufficient amount of cash to HON. SIR ALEX. CAMPBELL-I enable the bank to re-open its doors within hope the House will allow the Bill to be the time appointed by law. It can easily read the second and third times at once. be understood that in a Province situated The Bank of Prince Edward Island has as Prince Edward Island is, this would be fallen into difficulties and has suspended the case. Their resources were not specie payment for a period of nearly so easily available as those of the ninety days, I believe the ninety days ex- larger banks on the Mainland would pire to-day. They have a prospect, and be, and it became necessary in conseI am told a very good prospect, of being quence to send a deputation to England. able to resume payment, but under the That deputation was detained by very present law without the aid of this Bill stormy weather, and the result of that they would be unable to do so. The Bill detention was that there did not remain a is to extend the time for resumption of sufficient interval of time between their specie payment for another ninety days arrival in London and their negotiations from the time of the passage of the Bill. there to telegraph the result to Prince This is an emergency and I am sure the Edward Island and to Canada. In conHouse will desire to meet it by allowing sequence a telegram was received here the Bill to be read the second and third last week, when this House was not in times, and I move that the forty-first rule session, requesting that a bill might be of the House be suspended so far as it introduced in the House of Commons to relates to this Bill, and that the Bill be the effect which we have heard read here read the second time at length at the this evening; it has passed that House table. and I hope and believe it will pass this House too, without any objection. believe myself that the stockholders of that bank will come to the rescue and provide new capital in place of that which has been squandered, and that the bank will resume within the ninety days appointed, probably with some surplus. Motion agreed to Bill read the second time. I The Bill was read the third time and passed. ADA BILL. SECOND READING. HON. MR. HAYTHORNE-Perhaps it might be expected that I should offer a few remarks upon this bill. The circumstances under which it has become necessary to pass it are perhaps not unknown to many members of this House, and do not arise from any ordinary trade losses. The FUGITIVE OFFENDERS IN CANcircumstances surrounding the trade of the Island of Prince Edward were not unusual last year, and not at all such as were likely to bring a well established bank to grief. The suspension of this bank arose from the misconduct of its principal officer, its Cashier, who on his own authority and without the sanction of the Directors, issued notes as long as he had any to issue, and the consequence was that suddenly and unexpectedly the bank-whose stock had been as high as forty-five premium within the last two years, and within the last two or three months had sold at twenty-eight premium-was compelled to temporarily close its doors. Of course at the commencement of the winter when communications were exceedingly difficult not only in the Island itself, but also HON. SIR ALEX. CAMPBELL moved the second reading of Bill (C), "An Act respecting Fugitive Offenders in Canada, from other parts of Her Majesty's Dominions." He said: In the history of the former Province of Canada, and I believe in the history of several of the other Provinces, Nova Scotia and Newfoundland, there were measures for the arrest of fugitives from one Province who were found in any one of the other Provinces; but there had been no provision, and could be none, by which fugitives could be taken across the seas-no provision, for instance, as country that this was a subject which had been dealt with by the former legislatures of the different Provinces of the Dominion, and could be dealt with again; and then the reply that so far that might be true yet they could not deal with it upon the high seas and between other colonies of the Empire and this colony, and therefore it was a subject which could be with more convenience, more force and greater propriety and certainty, dealt with by the Imperial Parliament than by the legislature of any of the Colonies; and then the final rejoinder of the Government of the Dominion that it would be well at all events that we should assert our right within our own Dominion, which right is asserted by the bill before us. between Newfoundland and Nova Scotia, | House at the suggestion and request of or Newfoundland and old Canada, and my hon. friend from Amherst. I do not still more so, no provisions between Aus- see that it has been printed, but if hon. tralia and other distant colonies of the gentlemen desire to examine it, I can Empire, and the colony of Canada. Some postpone going into committee on this two or three years ago, it was proposed by bill until they see it, but the effect is as I the Imperial Government that legislation have mentioned it to the House. It is, should be had in the Imperial Parliament, in the first place, the desire of the Imfor the purpose of meeting that difficulty; perial Government to legislate on the suband some correspondence took place, ject; the reasons for that desire; the which was laid on the table of the House remonstrance of the Government of this four or five days ago, between the Imperial Government and the Government of the Dominion relative to the legislation upon this subject which was found to be necessary, the Imperial Government suggesting that the legislation should come best from the Imperial Parliament, inasmuch as they, from their pre-eminent power, could deal with the subject through all parts of the Empire, and in so far as it was affected by the transition on the high seas. At one time that course was rather objected to by the authorities of the Dominion, but after some additional correspondence it was found that that was really the most useful course to be pursued upon this subject, and accordingly we acquiesced in the legislation which was proposed on the part of the Imperial Parliament, and which affects not only the colony of Canada, but all the other colonies of the Empire, and which provides for the rendition of fugitives from one colony to another and their transmission across the high seas by the general legislation of the Imperial Parliament. At the same time the right to deal with this subject so far as Canada was concerned, and so far as all dealings with persons within our own limits were concerned, was HON. SIR ALEX. CAMPBELL moved undoubtedly given to the Parliament of the second reading of Bill (F), “An Act the Dominion by the British North to continue in force the Act 43 Vic., Cap. America Act of 1867; and we, the present Government, have thought it desirable, for the purpose of preserving intact the autonomy granted to us by the Confederation Act to legislate upon this subject so far as our own limits are concerned, and this bill, although it proceeds upon the same lines, and is almost absolutely in the same language--not quite, but almost absolutely in the same language as the Imperial Act, is for the purpose of asserting on the part of the Dominion the right to deal with the subject in so far as regards the limits of the Dominion of Canada. The correspondence that has taken place was laid on the table of the The motion was agreed to, and the bill was read the second time. CRIMINAL JUSTICE IN DISPUTED 36." SECOND READING. He said: The House knows that the Government of the Dominion and that of the Province of Ontario, and latterly that of the Province of Manitoba, have not been able to come to an agreement as to the boundary between Ontario and Manitoba, though efforts have been made on both sides to do so. I do not desire to go into the relative earnestness or merits of these exertions, but simply to say that they have been made, and yet, so far, that they have failed. Hon. gentlemen know the direction in which exertions have been put forth by the Government of the mittee has not recommended an extension of the time; but the House of Commons having done so, it might be necessary to follow the same course in the Senate. There is no recommendation on the part of the committee, but if the House has no objection I move that the time for receiving petitions for private bills be extended to the 10th instant. Dominion and the objections that have | said: I beg to inform the House that the been taken by the Goverment of Ontario time for receiving petitions for private and the suggestions made on behalf of that bills expires to-day, and that the comGovernment as well as by our own. But in the meantime, and until a settlement is arrived at it is desirable that this Act, which provides for the administration of justice in the disputed territory, should be continued. The Bill itself was introduced some years ago, and it is desirable to continue it for the purpose of having an efficient administration of criminal justice in the disputed territory. I hope the time is not far distant when it will cease to be disputed, and when it will be awarded either to the Province of Ontario or to the Province of Manitob The motion was agreed to and the Bill was read the second time. MONTREAL AND CENTRAL CAN- BILL. SECOND READING. HON. MR. SCOTT moved the second reading of Bill (K) "An Act to incorporate the Montreal and Central Canada Railway Company." He explained that the object of the Bill was to incorporate a Company for the construction of a railway from Smith's Falls to the city of Montreal in a direct line. The motion was agreed to. BILL INTRODUCED. HON. MR. FERRIER introduced a Bill for the relief of Matthew Gardner. The bill was read the first time. INSOLVENT BANKS AND TRADING CORPORATIONS BILL. SECOND READING. HON. SIR ALEX. CAMPBELL moved the second reading of Bill (A) "An Act respecting Insolvent Banks, Insurance Companies and Trading Corporations." He said: This bill has for its object the providing of machinery for the purpose of winding up insolvent banks, and insolvent trading companies. Some mea The motion was agreed to and the bill sure of the kind has been considered was read the second time. The Senate adjourned at 8.45 p.m. THE SENATE. Ottawa, Wednesday, March 1st, 1882. The SPEAKER took the Chair Three p.m. Prayers and routine proceedings. desirable for some years past, and in fact, has been alluded to once before in the Speech from the Throne, but it is now presented for the consideration of Parliament for the first time. The bill is drafted mainly upon the provisions which existed in the English law upon the same subject, but some parts of it have been suggested by our own old bankruptcy law. The Bill proposes that in a certain at contingency any bank or trading company may be placed in liquidation. contingencies are enumerated in the bill in detail, but I think, for the purpose of discussion, I might put them all in one The PETITIONS FOR PRIVATE BILLS. phrase by saying, when a bank or any TIME EXTENDED. HON. MR. BELLEROSE presented the Sixth Report of the Committee on Standing Orders and Private Bills. He other company suspends payment it shall be liable to be placed in liquidation. In such a contingency the creditor, or any creditors for a certain amount, applies to the judge, and the bank or insolvent company is summoned before the judge to show cause why the institution should has been the result of consideration of the not be placed in liquidation. There is an opinions of various eminent men in Engopportunity then afforded for testing the land, and I believe many in Canada, who circumstances which led the creditors to de- have given attention to the subject and mand that the company be placed under who have had experience with reference the jurisdiction of the court. Should to the working of insolvency laws in Engthe court or the judge be of opinion that land and in this country. That experimore time should be given for the pur-ence, strange to say, leads to this conclupose of ascertaining one or the other of sion, that those most interested in a bankthese points he is at liberty to do so, and rupt estate will not give it special attention, should it turn upon the second point-that that where it rests with the creditors to is whether the corporation is really insol- say that such and such steps are necessary vent the bill arms him with power to or that such and such proceedings shall place an accountant not in possession be taken by the assignee, or if he has not exactly, but to place an accountant in such done his duty, or in case of a variety of a position as to be enabled to investigate complaints of that nature which will sugthe books and the standing of the institu- gest themselves to the minds of hon. tion, and it enables the accountant to ask gentlemen, the creditors will not attend for the assistance of the officers of the bank to these things and time passes on, and or corporation, and gives him power to what is not attended to by one is not enquire thoroughly into the affairs of the attended to by the creditors as a whole. institution. Until his report is made the It is nobody's particular business and matter is held over. The judge having time passes on until the collection of the made up his mind whether the debt really assets of a bankrupt estate becomes very exits and whether the corporation should difficult. In England it was very slow, be placed in liquidation, makes the order and it became almost a by-word in many which places the estate in liquidation. parts of Canada that the assets of a bankIn the same way he appoints a liquidator rupt estate never got beyond the hands of who is armed with all necessary authority the assignee. That, I think, was the to wind up the institution. He is invested result of a want of vigor or want of interwith all the authority which the institution est on the part of the creditors, because itself ever had He can collect debts and they certainly had under the old bankcompromise debts, can make calls upon ruptcy law of Canada all the power in the shareholders, either with reference to their own hands and could have attended the stock which they may have taken and to the matter and had better results if they which they have not paid up, or the liabili- had given personal attention to the windties which they have incurred under the ing up of insolvent estates and had shown double liabilities clause, in the case of proper vigor and persistence. Particularly banks, and can exercise, in short, every they did not proceed persistently. power which is necessary for getting in case of a bankruptcy the creditors met, the assets of the institution. The liquida- and for the moment everything would tor is in the same position as an officer of the court and liable to be dealt with for any malfeasance or misfeasance, in the most prompt manner,-not by any lengthened proceeding but by being punished for contempt as though he were a clerk or crier of the court and disobeyed an order of the court. So that the judge has the most prompt means to deal with any shortcoming or wrong-doing on the part of the liquidator. The court can appoint one or more liquidators, as may be thought fit, and the remuneration of the liquidator terest in the subject, speak favorably of is, by this measure, within certain limits, the plan which is embodied in the Bill left also to the court. The House will now before the House-that is, of not observe that this power is given, not to leaving the matter in the hands of the the creditors, but to the court, and this creditors, but of placing it under the con In seem to be going on vigorously, but the estate would soon be lost sight of. There was not the persistent attention necessary to wind up an estate in a satisfactory manner by the creditors. The opinion of most eminent men in England, the present Lord Chancellor and the late Lord Chancellor and one or two judges who have taken an interest in the matter and have seats in the House of Lords, and whose opinion can be ascertained by hon. gentlemen who take an in be able to present it in such a shape that trol of a judge who being only one and therefore prominent, and whose neglect it will be a useful addition to the laws of would come home to himself-leaving it the country which are singularly defective in the hands of one person and making on this point. I have received during the him see that the liquidator attends to the time I have given consideration to the collection of the debts and the proper bill several suggestions, some of which are division of the assets, and that the estate given at length, some from the Province is wound up in a manner that business of Ontario and some from the Province of men would be satisfied with. The bill Quebec, all more or less valuable, and all does not propose to give a discharge to an pointing to what was considered by those insolvent company. It does not propose who have prepared them as defective porto do that because at present there is no tions of the measure. Whether they are insolvency law in force in the Dominion, so or not, will be a matter for the considand there are no means of giving a private eration of this committee to whom I will debtor a discharge, and therefore it is not submit them with the bill. I do not think contemplated in this Bill to give a bank-I need detain the House by any further rupt corporation a discharge. It is rather observations. I have given hon. gentlemen for the purpose of winding up bankrupt a general idea of the measure, and I am institutions (not of depriving them of their quite sure that the principle of it will be charters), and of placing their assets in readily assented to by every member of the hands of their creditors. The Bill, as the Senate. I have said, has been framed principally on the English law on the same subject, but with a good deal of reference to, and Ition is put from the Chair I would like to may say, many provisions drawn from our old bankruptcy law. It occurred to me in bringing it before the House that it would be desirable, and I propose with the sanction of the House to avail myself of the opportunity, to get the assistance of some of those members of the Senate who are likely from their experience and professional knowledge to have given this subject most attention; and I propose with the assent of the House to refer the bill to a private select committee for the purpose of obtaining such suggestions as can be given with reference to all the features of the Bill which I have mentioned. I think it very desirable that this committee should be composed of gentlemen from the different Provinces and belonging to different professions. I venture to submit the names not only of gentlemen belonging to the legal profession, but also of gentlemen who are merchants and who can, because of their practical knowledge of business. affairs recommend the best course to be pursued in reference to the estates of insolvent corporations. I hope with the assistance of that committee, whose names I shall submit to the House when the bill is read the second time, to perfect a measure which will meet with the approval of Parliament. I have mentioned the general scope of the bill, and I trust with the assistance of this committee, we shall HON. MR. DICKEY-Before the mo These powers call the attention of the hon. Minister of HON. SIR ALEX. CAMPBELL-AS far as my recollection goes, under the Banking Act there is a provision for the purpose of enabling calls to be made without exhausting in the first place the assets of the bank. That was the difficulty which led to the Banking Act being amended in that sense. A bank fails and there is the double liability clause by which the stockholders can be called upon to contribute very largely to the payment |