• Proceedings of the House of Assembly During the Sixth Session of the Thirtieth General Assembly of Newfoundland 1 955

Sixth Session of the Thirtieth General Assembly of the Province of Newfoundland MONDAY, September 12th., 1955 'Tihe House met a,t ~hree of the clock in the ,afternoon, pursuant to adjourn­ ment. SERGEANT-A T-ARM\S : Mr. Speak­ er, ,I have the honour to infonm you the Honourable the Administrator has arrived to open this Sixth Session of the T,hirtie-th General Assembly of Newfoundland. His Honour the Administrator read the Speeoh from the Throne. MR. SPEAKER AND MEMBERS OF THE HONOURABLE HOUSE OF ASSEMBLY: You have been called toge~her to consider a ma~ter of very great public ~mportance.

I refer to the proposal to open a new large iron mine in Lab­ rador and to build a railway to connect tha-t mine wi,th the railway already in operation in that territory. These combined undertakdngs consti­ tute the Canadian Javelin Limited project. All Newfoundlanders must have de­ rived keen pleasure .from witnessing the striking new developments rhat -have aheady taken pl.ace in Labrador.

Much employment has ,been obtained by our people in connection wi~h •~he opening of ,~he Knob La,ke iron mines and the building of a railway from Seven Islands to that area• and many millions of dollars .have been paid in wages to our workers .in that great enter.prise.

We 'have all been deeply impressed with •the knowledge that the British Newfoundland Corporation have so energetically undertaken the work of prospecting for minerals in Labrador a,nd the even greater task of surveying the immense water power potent~a1ities of the Hamilton River watershed. 'J1his present Javelin pro­ ject ,is, my Mini&ters ·believe, but ,~he la.test in what is bound to be a series of vast and far-reaching devel01pments in the Labrador Peninsula.

You will be asked to enact legislation a-ut,honizing my Ministers to guara11Jtee a bond issue of $16,500,000 to assist Canadian Javelin Li.mi-led ,in building the railway a,nd in creating the min­ ing establishment at Wa.bush Lake. You will be asked ,fur.ther to ta'ke the necessary steps to amend -the legisla­ tion governing the r.a,iJ,way operated by the Labrador Mining and Explora­ tion Company Limited in Labrador. MR.

S·PEAKER AND MEMBERS OF THE HONOURABLE HOUSE OF ASISEMBLY: I am confident that you will give to these matters your careful and con­ scientious attention; md I invoke the Divine guidance upon your deli:bera­ tJions. His Honour ·~e Administra,tor then left Vhe Assembly Ohamber : HON. L. R. CURTIS (Attorney General): Mr. Speaker, I move t-hat a Bill entitled "An Act F-unther to Amend the House of Assembly Act," be now read a filrst time. On motion Bill read a first time, orde,red read a second time on to­ morrow. MR.

SPEAKER: At t'hree of the clock this afternoon, H is Honour the Administrator was present to open this Sixth Session of ~he Thirtie~h

1174 HOUSE OF ASSEMBLY PROCEEDINGS General Assembly of Newfoundland. His Honour the Administrntor was pleased to deliver the Speeoh from the Throne, which for the purpose of ac­ curacy I have obtained a copy, and will now read to the House. Speech from the Throne ·then read by Clerk: MR. COURAGE : Mr. Speaker, I rise :for t'he purpme of mov,ing ~hat a Committee be appointed ,to draft an Address in Reply to uhe Speech wJth which His Honour the Administrator has been pleased to graciously open t·his Sixth Session of the Thirtieth General Assembly of Newfoundland. Mr.

Speaker, -the Speech from the Throne was very short and my reply will necessarily be correspondingly brief. T:his Honourable House ·ha5 been called together to consider one specific Hem and one only, A Bill to guaranitee a bond issue to enable a raiJ.wa·y to be built and a mine to be opened in New­ foundland, Labrador. I know that Vhis matter will be given the most ca:reful consideration by this House. Since ·the arguments .for ·tlhis measure have not yet ·been presented to ~his House, I am not ,in a position to dis­ cuss the pros and ·cons.

But I know that we will have ample opportunity and time for ,the follest deliberations on this Bill, ·which is about to be pre• sented. However, I do know ,that this is a measure designed for the develop­ ment of Newfoundland, for employ­ ment of our people, and it •wiH add revenue to the country. Now, Mr. Speaker, we particularly need •~hese Vhings in Newfoundland today - all countries must :have them. We all know that it is rhe aim of every good government to increase the standard of living of its people. In order to do that we must develop the natural re• sources.

We must do this if we are to stem the flow of emigration from our Prov,ince. How else can we fight pov­ erty, ignoram:e and disease? We can only do so by increasing the material resources of our ,people and enlarging theh opportunities for enjoying them. The great imperial statesman, Sir Joseph Ohamberlin, has said that men aire -born into uhis wor.Jd wiith claims upon the generosity of society, and that these claims ought to have the authority and the sanction of Jaw. And one of Vhese claims is that a man mm;,t be g.iven the ·right to work.

There would be something wrong in a sooiety where an honest, sober and in­ dustrious man cannot find work that ,he may earn enough to support his wi.fe and children. Mr. Speaker, thJs measure is de­ signed ,to give work. As I said before it will ,increase the revenue to expand our industries and to develop our ,na'bural resources. M,r. Speaker, there are those who ~hrough ignorance have nothing but s'1urs for politicians. But I say to you in all si11JCerity, poli.tics is one of t•he greaitest of all studiies. It is the science of 'human happiness .

And the vJsion of all politicians ,is to find out ·how uhey can ·raise the genera:! conditions of the people, and 'how uhey ca,n in­ crease the hope of those Jess for.lunate amongst us - And this Bill is designed as a measure that will help -to do this very thing. Sir, I have much pleasure dn mov,ing ~hat a Committee be appointed to drnft an Addlress in Reply to t:he Speech wivh which His Honowr the Administrator has been pleased to open ,t:his House. MR. CANNING: Mr. Spea:ker, I rise to second ,the motion so ably pu,t

HOUSE OF ASSEMBLY PROCEEDINGS 1175 by my honourable and learned friend from Fortune and Hermitage. Ln so doing Sir, I may say I concur whole-heartedly with what he has said. I am not at this moment, Sir, in a position to deal at any length wi-t'h the legislation ,to come before the House, owing to lack of information, whioh I am sure will be forthcoming within the next few days. To me, Sir, ,it mea,ns this: We will be asked to vote authority to guar­ antee a bond issue to construct a rail­ way at Wabush Lake, Labrndor.

It will mean, I am sure, Sir, money for our people and dollars for the Trea­ sury of our country. F,rom the repor.ts, Sir, we have all received and from the surveys, it is now certain that what we before considered lonely barrens con­ tains r.ich minerals and rivers which can generate millions of horsepower of electnidty. I don't know, Sir, how our opinions will di•Uer during this session, but there was once a ma;n, !\fr. Speaker, whose name was Cartier and whose first name was Jacques. He said (re­ ferring to Labrador) that it was the land that God gave Caine But, Mr.

Speaker, there is another man who has come up in our day who differed from Jacques, and whose first name was Joseph. He sa,id, iit was not the land that God gave Cain, [t was the land that God promised to Moses, not a land of honey but a land of minerals and .forests. Again, that man Jacques wa•s looking back over his shoulder as he turned his baok on Labrador and said, there was nothing there, not even a cartfull of dirt. This time t'he man Joseph agreed. He said: "Jacques is right, there is not a caTtfull of diirt there, 1it is just one solid mass of mineral." Mr.

Speaker, Joseph went forth and attrncted some of the big­ gest mining companies in uhe world and had them go in there. They went in, they sought and they found. And Canadian Javelin today knows that there are millions of ,tons of rich min­ eral ly[•ng wai,ting to be ta,ken and shipped to the ports of the world. I feel, Sir, that today wm mark the beginning of a great mineral era, and the land that Cartier scorned will mean much for Newfoundland. Sir, I take great pleasure in second­ ing the motion now before the Chair. MR.

SPEAKER: The motion is that a Commit-t•ee be appointed to draft an Address in Reply to the Speech from the Throne. MR. M. M. HOLLETT (Leader of the Opposibion) : Mr. Speaker, in rising to suppo1,t the motion, it is not my intention to take up very much time o.f this House this afternoon_ I congratulate the mover and second­ er on the brevity of ~heir addresses. As they •spoke I was trying to £igure out in my mind just why the brevity of these speeches. Now I know nothing whatsoever about the proposat10n which is to ·be laid before us.

But I should have thought that ,the mem­ be1s on the oppo~ite &ide of the House would have been sufficiently well ac­ quainted with the particulars of the Bill which is to be brougiht before us that -the mover and seconder of this motion might have been able to say something about it. I don't know whether it is because it has become ·so common-place to raise loans or to per­ mit this House to guarantee them.

I don't know whether it is so common­ place that the Government feels bre­ vity, brevity I say, is the soul of wit, and wi,t means knowledge, so I take it - it sometimes means knowledge - but I take it they have ample knowledge, and at lea-st they could have enla,rged

1176 HOUSE OF ASSEMBLY PROCEEDINGS a linle bit on the natural resources, which were spoken to very well and very ably by the 1honouJ:1able member for Fortune Bay and Hermitage and also by ,the member for Placentia Wesf Now we certainly, Sir, on this &ide of the House, are not against any in­ dustry of any kind what soever . We support to •the best of our abHi:ty all attempts to bri,ng ,in new industries w,hich ihave any hope wbat soever of success.

I 1;hould have thougM, ·how­ ever,, t•hat both the honourable mem­ ber for Fortune Bay and the ho.nour­ able member .for Placentia West must have felt some, I say, qualms of con­ science, as t,hey rose to move and second the motion on 1;his auspicious occasion; an occasion whicll brungs us here •to guarantee a loan o.f some six­ teen and a ha,l1f million dollars to a com:pa,ny whiioh hopes to make a suc­ cess of an iron ore mine on Labrador.

I would like to •point out to the hon­ ourable members on the opposite side, particularly bhe two honourable gentle­ men who have spoken, that Placentia West •and Fortune Bay are two dis­ tricts In this country which, to my mind, since 1949, and I dare say before, but particularly since 1949, are the most neglected areas, Sir, of any part of the Dominion of Canada and cer­ tainly of any ipart of Newfoundland. Both t.hese distrJcts, as I know , have lived and moved and had their being by ·the fi&heries.

To my own know­ ledg~. very little has been done •i'll the particular disbricts these two gentle­ men represent, with ·regard ,to the £isheries in these areas. And i,f the Government had brought 1in here a Bill wJiich was to guarantee a loan <>f some sixteen and a half million dol­ lars to improve the fishe ries in t,hese ~wo. areas, t.hen, of cour,se, t·here 1vould be no doubt whatsoever, ~mmedia •tely, without having seen any of the docu­ ments at all, bhere is no doubt what- soever in our minds here on this side of the House we would support dt.

In regard to this particular Bill b,rought in in connection with a guar­ amtee, I say, Sir, we have none of the particulars therefore it ,is not our in­ tenticm to say any thing eiither for or against ,it except to -say, we are for it i.f i,t cm be shown •to us by the Hon­ ourable the Premier a,nd by the Gov­ ernment that there is some 'hope of success in this -parLicular a,rea of the Labrador.

I have •to point out, Sir, to the Government, and to the people o.f this aountry, it is our duty, on this side of the House to remi,nd all citizens of this P,rovince that since 1949 when we were placed ,into Confederation with the great Dominion of Canada, we were left w.ith a debt of some three and a hal:f million dolla.rs. I would 1,emi·nd t11e honouraible members to­ da,y that our debt Js some forty-two million dollars. We -have borrowed that money. We have $pent it. And we have spent some for,ty odd million d()1llars cash, whioh was bequeathed to this Government by the Commission of Government.

In addition to all that, Sir, we know that we have already guaramt,eed loans to various concerns i,n this country ,to the extent of many more millions of dollars. We have <to take all these facts into con:.ideration, Sir, when we come to considering the Bill which will be brought before us, and the agreement which is to -be sub­ mitted in conneobion with Canadian Javelin.

I wan,t <to remind not only us here but the whole country, every citizen Jn it, that we have •to be very ca:1,eful, that we do not get back into the situation in which we ,found our­ selves 1111 my lifet -ime and your lifetime when we as a country owed, so I be­ lieve, one ·hundred and s,ix million dollars, and went broke and lost our independenoe as a people. And we

HOUSE OF ASSEMBLY PROCEEDINGS 1177 never got it back until 1949. I am not saying we have it ba,ck even yet, be­ cause we are not now a Dominion, as we were at .that time. But ,tha:t is what happened to us. But, S,i-r, that condition ,took one hundred years to produce,

whereas the condJi.tion in which we now are in regard to debt and wiibh ,regard to guaJ1a1ntees is pretty nearly harf the extent that it was away b-aok rn the thirties. So we have to watch <these th[ngts. We have .to b-e careful as to what guarantees, Sir, that we make.

I don't know whether ·the brevity of the ,two honourable gentlemen who have spoken was an indica!tion of the ms'h with which this matter has to be completed, or whether it is, as I said before, Dhat it has become so common­ place ·to raise a loan or at least to guarantee a 1'arge sum of money that they think d,t is not wor.th wMle to make much comment ab-out it. I do ,regret, Slir, that [n the Speech from the Throne I have seen nothing a:bout bhe new indust1.1ies.

The hon­ ourable member for Fortune Bay re­ ferred to natural resources, and how it was our duty to get all ,we could out of these natural resoul'ces in order that our people may profit. Bu-t here is a House of Assembly of the people of Newfoundland opening today without one single word ,in connection with these new industries, which has cost this country, at the present time some twenty rnmion dollars or thirty mil­ lion dollars; not one word, Sir. I say too there was not one ,word said about the ,fisheries of this country.

We do know that the people ,along 1the nol'th­ east coa3t and the west &ide of Pla­ centia and in Fortune Bay and all up the grea,t southwest coast, in the fish­ ery, Sir, are not receiving from the fish­ eries anything Hke the living which is being dbtained where people are en­ gaged in other industries. I see also in t,he Speech from the Throne, Siir, some reference to a rail­ way and some reference also to the amendment of

an Act ,in ,connection wJth Dhe ra,ilway. It is possible our people will get the idea ,that we are going to buHd a raiilway dn Labrador in order to ta,ke the .fishermen from places in Pla•centia Bay a,nd Fortune Bay 1and raiilroad ,them in to the mines of ,the .far north, the frozen north. Well, I don't -think 1tihey would b-e scared of tha,t at all, i,f they had to go down there. But I should have thought it would be wise if the Gov­ ernment had added something to this Speech :from ,the Throne which would .~ndkate Dhat something was being done in connection wiDh .the fisheI'men of this country.

I want •to appea•l to the members on the oppooite side, as well as the mem­ ,bers on this side - We have ,to give ·these bets and £igures which will be given to us by the Honourable the Premier, I ,ta,ke ,it, the most urgent consideration. We :have 1to make sure a:bout everything s1ubmitted ,to us be­ Eore we give our consent to guaran­ teeing any loan not only for this com­ pany but for any other company, particulal'ly while some of our natural resources are being, in my mdnd, gross­ ly neglected.

Now, Sir, there is an indication to me in the way these two honourable gentlemen have introduced this mo­ tion, of rush, of hurry. And we don't want to rush on this tihfog. We don't wa11Jt ,ro be hurried. We do not want to be hurried. I remember when thds House was called together, I believe the 24th of March, we were told t'hat same day that the House would close, I believe, on the 22nd of April in order ·that ,the Honourable -the Premiier might attend a conferenoe in Ottawa. And we were rushed, Sir; morning, noon and night. And ·we had to con-·

1178 HOUSE OF ASSEMBLY PROCEEDINGS sider some of ,the most important legis­ lat<ion thaJt was ever brought into this House - and we were ·rushed to death. In this particular ca,se, S.ir, we will not if we can do it, and ~he people w,ill see to it, we wil1I not submit to being rushed. I do say now , Sir, if the Honourable .the Premier and ·the Government can produce to us the facts and figures t~at can convince us that this is worth while for our people, then we ,will ,give it every consideration and suppm't. As I sa,id, I don't wish to take up the time of the House.

I do know that the matter is important, and I have ,falith enough in the opposite side of the House to believe ample time will be given and a11 the facts and figures they have w.iill be produced for us. Wd,th that in mind and also having .i,n mind the wrgency of the matter I dio not wish at thds time to take up •any further time of the House. Thank you very muoh, Mr. Speaker! HON. J. R. SMALLWOOD (Pnime Minister) : Mr. Speaker, I shall fol­ low the admirable example set by my two :honournble friends and lry my honourable friend the Leader of the OppO&ition and I too shaU be brief.

My ,honourable friend the Leader of the Opposd•tion referred, with a little dissaitisfaction, to the breV1i ty of the speeches of ,the mover -and seconder of the motion. And he complaiined that they had not told the House in •theicr­ speeches rubout the guarantee nor about ·this rai-1way nor this Ja.velin deal generally. I am quite sure that my honoura;ble friend spoke with his tongue ,i,n his cheek.

He dlid not reaUy expect that, before the Bill is intro­ duced at all, ,that any membe -r of the House was going to go dnoto a descrip­ hion of the matters, or even with a discussion of the matters whicih ·are to be contained :in the legislation when that i~ broug;ht down. The House is in a rather peculiar position: We have the speech with which His Honour so graciously opened this special sessd-nn of tihe House. A Committee will undoubtedly be oppointed to draft an Add;ress in Reply. The Address in Reply will be brought i,n ,here, and it ,will be open for debate.

Now the Speech Erom -the Throne itself, whi,dh is really what will be debated, contains reference to bhe matter of the 11aHway in Labrador and ,to the amendment of the existing rail­ way •legislation, affecting the present Iron Ore Company of Canada, that is to say; the present railway which runs from Seven Islands to Knob Lake or Burnt Creek - Consequently, if bhere is to be a very exten~ive debate on the Speech from the Throne or it might otend to be rather Iimi,ted as it deals with precisely ·the matters t•hat are to be the subje -ct of what, I hope, to be an extended and very thorough debaJte later in this ·present session.

If my honourable friends opposite should feel that they want to debate these measures twice, then there is no rule in the Constituti·on of Newfound­ land nor in the Rules of this House that wi,]11 prevent ,thei-r debating it twice. They can debate the JavelJn deall, this ,proposed guarantee, the pro­ posed ,ra,ilway irnto Wabush Lake and the mine at Wabush Lake - they can debate all of that thoroughly in the debate on the Address in Reply.

They ca,n debate it also and equally thoroughly on in~roduction of the leg.islation, dn •the Coll1lll.ittee of t,he Whole and ,then on the resolutions; and then at ~econd reading on the run itself and then in Committee of the Whole on the BHI. Tilley can, iondeed, have three thorough debates on the legislatiion 'in addition to the debate on the Address ,in Reply, if they so

HOUSE OF ASSEMBLY PROCEEDINGS 1179 ohoose. But surely they will not up­ braid my honourable friends on this side in not making a fourth debate on it by beg.inning this afternoon, before the documents a,re tabled and before the Bi11 is introduced and befor,e notice of it has been g,iven. Surely he cannot mean that. Now there was a passing reference by my honourable .friend to the debt. It is true that the public debt of Newfoundland is what he sadd it is.

It is also true that -the public debt away back was what it was, or what he said it was, ·when the population of Newfoundland was less, was under a quarter of a million souJ.s our funded debt was a hundred million do,Uars, and we had &hort-time in­ debtedness from •the bank,s and else­ where for another .five mdllions, that is an indebtedness running over a period of three, four and ·five years, making a grand total of $105,000,000, and the interest on ,it was over five million doUars a year, not counting any sinking fund, because there was no si,nking fund in those days. lnter­ es,t alone was five millions a year.

Our population was le3s than a quarter of a million. Our economy was as thin as water. Today our population is four hun­ dred and '£ifty .thousand. It is getting up to be double what ,it was when our debt was $105,000,000. And our pop­ ulation is growing quite rapidly. We have •today the highest birth rate in Canada and ,the lowest death rate in Canada.

Figures released a ·week or two ago by the Dominion Bur-eau of Statis­ tics show that of all the ten provinces of Canada, in the previous year, ,the ab­ solute increase of our N,ewfoundland populatiion was £i£ty, that is to say, the actual increase (I acm not nnw referring to percentages nor proportion but to actual numbers of living people) in Newfoundlan•d in that year was more than Prince Edward Island or Nova Scotia or New Brunswick or Saskat­ ohewan o-r Manitoba - the actual number - So that today you have a pec,ple who are growing rapidly in number, full of health as they have never been in years before, such as they have never enjoyed before, full o,f optimism and hope and confidence in ,themselves and •in Newfoundland's future.

You have an economy which makes the ,economy uf the thirties a wretched and miserable thing in com­ pa·rison. On every side, on every hand the economy of Newfoundland has be­ come enriched, broadened, deepened, widened, strengthened - So that there is no comparison whatsoever. If we had today, with our present pOipulation and w.it,h our present economy, the same publiic debt our poor miserable country had in the 1930's of $105_000,000, we could take it in our stride, compared with what we did twenty or thirty years ago.

In­ deed twenty or thirty years ago our public debt of $10.'5,000,0{)0 and our annual inte1·est charge of $:i,000,000 bankrupted us. We just could not bea,r ,it. We diid not, and we went under. Now my honourabile friend reminds us tha,t ,in this Speech from the Thr-on,e today there is not one wnrd about ,the new industr,ies a,nd there is not one word a,bout the fisheries.

He mig,ht have added that there is ll'Ot one word about roads and bridges and there ds not on•e word about schoo,ls, there -is not one wo•rd about hospi.tals and cli111i03 and pub!,ic health matters He might .have added that there is not ·one word about a hundred other matters of great and funda­ mental concern to the people of New­ foundland, and he would have been quite cor.recL Because the Speech

1180 HOUSE OF ASSEMBLY PROCEEDINGS fr.om the Throne confines ,itself sev­ er,ely t.o the on,e matter about which the House has been ca1led together in this special session. My honourable friend used the word "rush." I believe he kna<ws in his heart that ,there is no desire whatso­ ever on our part of any rushing in this session. Indeed the contrary is our strong desir.e, and indeed it is our intention.

With the consent of my honourable friends oppoGite, I would hope that something J.ike this would happen : That they will permi•t the House this afternoon to go .in,to Com­ mitte of the ·whole on thes,e resolu­ tions, the resolutions with whioh this legislation mus-t be introduced.

That they will permit the House to go into Committee of the Whole this afternoon, not for the purpo:•e of considering these resolutions, but merely to enable me .to introduce them, to lay them on the table of the House, and at the same time to lay on the table of the House, not to diiscuss today, copJes of the legi,slation as they have come from the Quee,n's Printers, and to enable me aho to 1.ay on the table of the House today, for every member of the House, for the newspapers •and radio stations and television stations, each, a copy of the ,complete set of docu­ ments upon which the Government itself came to <its decis•ion to r•equest this House to guarantee this bond issue.

If the House agrees to that we will go into Committee of the Whole - that is a ma,tter for my honourable friends opposite. They must agree, if it is to be done. It cannot be done without thei,r consent. We will go into Committee of the Whole and table everything. Then we will r,ise the Committee and adjourn until to­ day week.

That will give members of the House, on all sides, I think, quite ample opportuni<ty, even busy men, to study the documents and come to thoir own conclusions as to whether this legislation meets the tes•t laid down for us by my honoura,ble friend, the Leader o.f ,the Opposition, on two occasions -in his speech this afternoon. I have asked Mr. Doyle himself to come to St. John's. Indeed he is in the Chamber .at this moment. I h.ave asked him to bving hiis Chief Engineer with him and also his leading counsel, Mr.

WeldGn, of the very distinguished legal firm in Montreal, that would be known to the legal gentlemen on the other side as on this side, as bhe firm to which the Late Commander J. L. Ralston was a leading £igure. I have asked him to come so they might be available •to the members of this House for questioning. And Mr.

Doyle has .promis,ed me that he will come, with his Chie.f Engineer and his counsel, tomorrow morning a-t 10:30, in the Chamber through here in this bui.Jding ·where the members of the Legislature only may quelibion him, as closely as it [S their wish to do, frankly, indeed w.ith brutal frank­ ness, i:f they so desire. And Mr. Doyle has promised that he will answer just as frankly as they wish him to do aind as he is capable of do,ing.

So that the members of th,is House will have before them not merely the reports upon which the Government [tself has based •their decision, but also the op­ po11turnity personally face to face, to question the principa,l in this whole project. Then on Munday next I would hope that the debate might properly begin, that is the debate on the legislation might beg,iin, and <that it w.Ul be spi11ited, that it will be objective, that my ,honourable friend the Leader of the Opposition this afternoon, when he said: If ,the Government can show

HOU£E OF ASSEMBLY PROCEEDINGS 1181 the Opposition •tha:t th~s ,project would be good for N ewfoundJ.and, or words to -Lhat effect - if it can be shown, he said, that this is sound, that i,t is worthwhile - I thiink he used the word "worthwhile" - then they will not oppose it. And by that I assume they will support it. Now that is pre­ cisely what I would expect from my hcnourable friends.

I believe t1hat they will judge this legiislation in pre­ cisely that spirit -- Is it gcoid for New­ foundland? - Is it surnioie-ntly good to justify -our gua,ranteeing a bond issue, putting our name as a Province, as a people, as a Government, on the back of the note for sixteen and a ha1E million dollars? I believe that we wi.1,1 show them that we have become conv1ncedi ourselves.

And I believe they too, even though they fulfil handsomely, adequately the drnties of an opposition by opposing so that a Vhing wo:n't be one-sided - the duty of the Opposition being to critioize the Government and keep the Gov­ ernmernt on its toes - then though they perform adequately their duty as an opposition, I believe at the end o.f a tho,rough debate, whioh may last a week or two weeks or three weeks, as long as the honourable gentlemen de­ sire, I believe at the end of that de­ bate they wi1'1 vote for this iron mine and this ra,ilway and for •the money tlrnt will come into the Treasury and for the money that will go into the pockets of six or seven hund,red New­ Foundland workers.

MR. SPEAKER: Moved and sec­ onded that a Committee be appointed to drnEt an Address in Reply to the Speech from the Throne. Members of the Committee consist of - the honourable members who have moved and seconded the motion, the honourable member for St. John's West. MR. CURTIS: Mr. Speaker, may I ask through you, S-ir, the unanimous cons·ent of the House to resolve itself forthw,i~h invo a Commi-tt-ee of th~ Whole to con:~der certain resc-lu tions in rela.tion to a Guarantee of a Loan to be Raised by ,-vabush Lake Ra,ilway Company, Limited? On motio,n leave g,ranted, Mr. Speaker left th,e Chair. Mr.

Courage, Chairman of Commit­ t•ee of ,the ,,vhole : MR. 'SMALLWOOD: Mr. Chair­ man, I intend to do nothing more than to table the documents and copies of Lhe legisla·uion it&e!f. Now, Mr. Chairman, the documents are first a series of maps, quite a ser,ies of them, and aerial pho,tographs of ~he ,route o,f the railway from the pres­ ent railway into \Vabush Lake, that railway being forty miles in length, starting at Mile 2.24 on the present railway and go,ing into vVabush Lake.

I may say the company has sufficient faith in the outcome of this Session that •they have let a contract, and they are actually in Lhere now, the McNamaira Construction Company a·re actua.lly cutti,ng out the right-of"way. I don't know what would happen if the legisla•tion does not pass. The geologkal map, the ·cross-cut

section maps of the drill holes, of diamond dniUing that has been done there. OutLines of substantially proven ore reserves, cross-cut seolion of the bur­ den of No. l ore deposits; NALCO maps showing the diamond drilling done there - a,gain, arwther NALCO map a,long the same lines. Then a map or two maps showing the one particular type o,f benefidating plant for washing the ore and con{:entrating it to a higher irnn ore analysis. The,e are the maps. Then here we have

1182 HOUSE OF ASSEMBLY PROCEEDINGS pr,inted in our printing a,nd photo­ graphing deparbment and Government drafting department, copies of a series of reports compiled by firms engaged by Canadian Javelin - There is a re­ port by th-e Department of Mines of the Province of Quebec which shows that V/abush o,re can be ec0t11omically conce-rntrated dnto 65% shipping ore - reports by an investiga~ing company, 0-enver and Colorado, showing the same thi,ng, done by the Humphrey Spur sy-,tem.

A report by the Batte11e Memorial Institute, which I suppose has the greatest name in mining in the world for analysis in minerals, show­ i,ng it can be •beneficiated, into 64% ~hipping ore. A report by Dr. W. L. C. Green, Geologist, Engineer, Port Arthur, Ontario, which confil~ns the estimate and shows a profit sp-read of $3.50 per ton. A re.port by J. Long­ year Company of Mim1ea,polis . That is the company which did the d,iamond drilling which confirms vhe estimates of Javelin o.f the quan~ity ·of o,re in the area.

A letter of interest from the Ger­ man Steel Industries respecting the cost proposed in June 1955 for the sale of two or three million tons annually for ten years. The outline of capital requirements and methods of fonancing, July 1955. An economic report on the Lake Wabush J.ron Ore ,deposits by Professor David W. S,later, M.A., Queens Univernity, Toronto. A report by the Department of Mines and Te,chnical Surveys, Ottawa, On­ tario, on the adequacy of ore reserve at Lake Wabush mines of Canadian Javelin and amenable for this type of beneficiation.

And finally, a report by Foi,d, Bacon and Davis, which con­ firms the estimates oif the quantity and quality o.f Wabm,h ore and establishes the fact dt can be profitably mined and marketed at the present time, I particuLarly invite the attention of the House to the Ford, Bacon and Davis Report. It is 'lhe pr,incipal report of the ·whole series. In ta:bling Uhese reports, Mr.

Chair­ man, I think it is the simple truth to say this: When the BeU Island Iron Mine project ,came before this House and the Grand Falls Paper Mill project came ,before this House and the Cor­ ner Brook Paper Mill project came before this House and the Bucham Mining project came before ~has House, documents were submitted, were tabled, but aU of ,them put to­ gether, the Government of that day did not have half the dio·cumentation that I ha,ve norw tabled in this Com­ mittee.

I believe that this project is the most thoroughly documented a:nd thoroughly well documented ,project to come before this House of Assembly iin over one hundred years of its his­ tory. So, Mr. Chairman, I beg lea,ve to table these documents a,nd move that the Committee 11ise, repoPt progret;s and beg leave to sit again tomonrow.

No,w I may, for the benefit of Ube Honourable Leader of ·bhe Opposition, table a photographic copy o[ a letter dated Augu st 18 from Ford, Bacon and Davis, Engineers of New York with whom an agreement is •now made by Canadian Javelin to be the supervising engineers in ~he construction of the railway and the ·operation of the mine and building of the beneficiating plant. Fmd, Bacon and Davis are to be the supervising engineers on behal,f of Canadian Javelin. This is the let­ ter accepting the commission.

Then secondly, since all t1hese documents were compiled, a new one reached my hand on.!y today, an additional -report by Behre Dolbear, a company of Con­ sulting Mining Engineers and Geolo•

HOUSE OF ASSEMBLY PROCEEDINGS 1183 g,ists of New York, Now this brings with it the very last scrap of geological and drH!ing information up to date. I ha•ve only the one wpy and would appreciate it if the Honouirabie Leader of the Opposition, 'having satisfied himsel,f, would return it to me so that I may return it to Mr. Doyle from whom I received it today. I move the Committee rise, report progress and ask leave to sit again tomorrow. MR.

JACKMAN : I understood the Premier asked us to go i-nto Commtit­ tee of the 'Whole for the primary rea­ son of giving certain information re­ lative to the Bill before the House. I wonder if the Premier himself would care to answer my questiion, which is this, Mr. Chairman : What effect wouJd t'his contract have on the opera­ ~ioins a.t Bell Island relative to the position of continu i ng in the future? MR. SMALLWOOD: Mr.

Chair­ man, whi;Je I have every good will for my honourable friend, I am duty bound to remind Your Honour that the House gave unanimous ,co-nsent to our going into Committee of the Whole today, rather an unusual thing on opening day, so that I m,igM table these documents and not that there might be a debate.

And i,f my hon­ ourable friend will understand that I am unable to enter into a debate a·t this stage, my answer to him is this, that rhe President of the United States' ,report on materials, known as the Paley Report, reports that in the next twenty years the consumption of iron ore i-n the world will increase £i-fty per cent. The wo1_;ld consump­ tion of iron ore will increase by fifty per cent. Bell Island will not and cannot be hurt, not in the least, by opening of this new mine in Labrador. On motion the Committee rose, re- ported progress and asked leave to sit again. Motion received.

Ordered sit again on ·tomorrow. Presenting Petitions None. Giving Notice of Motion MR. CURTIS: Mr. Speaker, I give notice ,I will on tomorrow ask leave to introduce t'hrec Bills, all of which arise out of the resolutions which have been before the House. A Bi11, "An Act Further ·to Amend the House of Assembly Act." A Bill, "An Act to Amend the Lab- 1,ador Railway Act, 1948." A Bill, "An Act to Amend the Wa­ bush Lake RaiJ.way Act, 1955." A Bill, "An Act for the Confirma­ tion of a-n Agreement Between the Government and Labrador Mining and Explorati on Company Limited ." Giving Notice of Questions MR.

HOLLETT: To ask the Hon­ oura:b.l,e Minister of Finance to lay on the table of the House t'he following information : I. What is the total direct debt of t'he Province o.f Newfoundland at the present time? 2. What is l'11e total indirect debt, that is, the to~al of guaranteed loans and commi·tments, exclusive of the Newfoundland Savings Bank deposits? 3. Itemize all cash loans and guar­ anteed loans made by the Government since 1949, showing interest rates and amounts of interest r-eceived. S'tate also the purpose for which these loans were made. 4. ltemdze the several Joans raisec

1184 HOUSE OF ASSEMBLY PROCEEDINGS by the present Government with dates of autlrn11ization by the House of As­ sembly: the amounts authorized and the net amount of each ind ,ividual loan received by Lhe treasury. State the p-~•:;iods of said loans together with the rates of interest payable a,nd the percentage contributions to the sink­ ing fund for each said loan. 5. ,vhat amount is at present credited to ea.ch &inking fund a:cco-unt? Arc thes-e amounts merely a credit on the boc ,ks of the D cpa1-tment of Finance or do they represent separate accounts nt the Rank of Montreal?

G. ·what. if any, is the amount of bank overdraft at ,lhe Bank of Mon­ treal a-t the present time? 7. Give the total o,f actual revenue rece ived for th-e fiscal year I 954-55 as of March 31, 1955, and also the total amount of expendtiture .for the same period. 8. i-Vhat was the total revenue re­ ceived by the Government month by month from March 31, 19:i.~ to August 31, 1955. List also the amounts of mo·nthly expenditures.

To ask the Hon •ourable Minister of Economic Development to lay on the Lable of the House tihe following in­ formation: 1. ,vho ar-e the present Directors of Nalco and who is the Chairman of the Board of Dirnctors? 2. How many shares of Nalco are p:--2sently owned (

a) by John C. Doyle (

b) by Canadian Javelin Limited? iVhat amount of each for tih-ese shares wa, paid into the Nalco t·reas­ ury by (

a) John C. Doy,le, Cb) Cana­ dian Javelin Limited. 3. What is the total number of shares -which have been sold by Nalco? List ,pi:;ice paid for ea-ch of these shares by each severa,l shareholder. 4. Table a copy of the agreement entered into between Nalco and Mr. Jdhn C. Doyle, or Canadian J,avelin Company Umiited, in connection with the 2300 square miles conces~ion now held by -them. 5. Table •a copy o,f trhe agreement made in September 1953 in which Mr. John C. Doyle and/or Canadian Javelin Limited were to acquire con­ trol of Nalco. 6. How many shares diid Mr. Jorhn C.

Doyle and;or Canadian Javelin Limited agree to purchase a,ccording to thi-3 said •agreement and what pnice per share was to be paid? 7. How much cash was paid over to Nalco at ·that time by Mr. John C. Doyle and;or Canadian Javelin? 8. Did Mr. Doyle and/or Canadian Javelin cibtain the majority vote of the Board of Directors under that transaction? 9. Is it correot that Mr. John C. Doyle and/or Canadian Javelin Lim­ ited defaulted on the terms of this agreement on December 3-1, 1953? 10. Ta1ble a copy of the contract made •between Nalco and Canadian Longyears Company for drilling in the Waibush Area. Did Mr.

John C. iDoyle negotiate this contract, and did Mr. Doyle sign ,this contract on Nalco's •behalf? W·ha,t amount o.f money was paid 'by Nalco to Canadian ILongyears under this contract? 11. Table letters sent by Dr. Vald­ manis as Chairman of the Board of Nalco to Canadian Javelin and da,ted January 4, I 954, requesting Canadian Javelin to send in to Nalco the resig­ nations of their representatives on the Nalco Board.

HOUSE OF ASSEMBLY PROCEEDINGS 1185 To ask the Honoura/ble Minister of Prnl:Jilic Works to lay on the talble of the House the following information : I. Wha·t amount of money has been spenit on roads under the following headings since March 31, 1955? (a) 1Local roads. (,

b) Secondary roads. (

c) Trans-Canada Highway. (

d) All other roads. To ask the Honourable the Acting Minister of .Public Welfare to lay on the table of -the House the following information : I. What is the total amount of able­ bodied relief paid out in each month llor the •Province from March 31, 1955 to Augus,t 31, 1955? 2. Give similar figures for the amounts paid out as sick relief. 3, Give total number of people re­ ceiving: (

a) A!b!e-lbodied relief. (·

b) Sick relief for •the same period and according to districts. MR. BROWNE : To ask the Hon­ ouraible the Minister of Economic De­ velopment to lay on the table of the House the following information : (

a) Who are ,the present Directors of Newfoundland Hardwoods Ltd.? (lb) W,hen were they appointed, and by whom? (

c) Has any alteration ,been made in the original contract with Chester Dawe regarding the operation of the Birch Plant? H so please table copies of all minutes of Council authorizing such alterations and set forth all such alterations. (

d) When did Mr. Chester Dawe cease to manage the Birch Plant? Did he resign voluntarily or otherwise? Why did he resign? (

e) Was any audit made on behalf of the Government of the books of the Newfoundland Hardwoods Ltd. at the date of Mr. Dawe's resigna,tion? If so, ta.hie a certified copy of such audit. (

f) Was there a stock taking made at the date of Mr. Dawe's resignation? If so, table a certified copy of same. (

g) Who is the present manager of the Birch Plant? Is he associated with any O"ther manufacturing or selling agency? How is he r•emunerated for his services? (

h) How much money has been ad­ vanced by t,he Newfoundland Hara­ woods Ltd. by way o,f direct loan or by guarantee or other assistance since Mr. Dawe's resignation? (

i) Wha,t •has been the total expen­ diture to date for all purposes on the Birch Plant? To ask the Honourable Minister of Economic Development ·to lay on the table of the House the following in• formation: (

a) The names of the Directors of Superior RuilYber Co. Ltd., as at Jan­ uary l, 1955, and at July l, 1955. (,

b) What was the valuation for customs purposes of the plant and machinery supplied by the promoters of the Company? (

c) What ,was -the total valuation of the investment of the German promo­ ters of ,this Company? What is the total amount of the money loaned to ~his Company by the Government or guaranteed by the Government?

1186 HOUSE OF ASSEMBLY PROCEEDINGS (

d) Were any officers or Directors o;f •the Oompany dismissed since May 1, 1955? If so, when, by whom and for what reasons? W·ho are the pres­ ent Directors in office of the Com­ pany? Who are the present share­ holders if any in the Company? By whom were the present Directors or officers appointed? (

e) What amount of money was paid Mr. •Max Braun Wogan in settlement of his action againsot •the Superior Rub­ ber Co. Ltd.? From what account was said money paid? By what author­ ity was it paid? (

f) Has the Government or any Government representation assumed wmplete responsibility for the opera­ tion of this company? If so, •table a wpy of the aul'hority for same, (

g) Was any audit made of the h o-oks of the Company when officers were dismissed, or was any investiga­ tion made of the management of the affairs of the Company? ilf so by whom? Table a copy of the auditors or other reports received by the Gov­ ernment. To ask the Honourable Minister of Economic Development to lay on -the table of the House the following in­ formation: I. Copy of any agreements made by the Government with any persons or corporations, regarding the estalblish­ ment of new industries since January 1st, 1955. 2. S•tatement showing: (

a) Balance sheets. (

b) Trading account, if any. (

c) Profit and loss account of Nalco annually since its formation. (

d) Who are present shareholders and what amount of shares does each hold. (

e) Who are ,the present directors? (

f) How often have they met since January 1st, 195'5, giving dates of meetings, if any. (g) 'Who are the paid o£ficia-ls of !Nalco and wha-t salary does each receive? Table copies of all repovts received on Lake Wabus-h ore deposits. To ask the Honourable Minister of Economic Development to lay on the table of the House the follo,wing in­ formation: A s·tatement showing the amounts advanced by ,way of loans or guarantee to each of the new indus-tries since March 28, 195:'i. Also give total ad­ vances to such industries up to Aug­ ust 31, 1955.

To ask the Honouralble Minister of Finance to lay on the table of the House the following i·nfonnation : A list of an moneys expended by special warrant since April 1st, 1955, giving purpose for which money was spen-t, amount of same, and the au­ thority for such expenditure in each case. MR, BROWNE : Mr. Speaker, I have a question here covering some­ thing my honourable friend, ~he Lead­ er of the Opposition just asked. That is the one on Nalco directors, etc. MR. SMALLWOOD : Mr. Speaker, •I move that the House a·t its rising do adjourn until tomorrow, Monda·y, Sept. 19, at 3:30 of the dock. MR. BROWNE : Mr.

Speaker, on the motion to adjourn, may I ask the Honourable the ,Premier a question

HOUSE OF ASSEMBLY PROCEEDINGS 1187 arising out of :his statement earlier this a5ternoon, re the attendance of Mr. Doyle and his counsel in ,the Old Legislative Cha!IlJber at 10:30 for t'he purpose {)If being examined-cl wonder if the ,Premier could inform t,he House whether it was his intention t·hat the press should not be present, and no­ hody lbut memjbers could ,be present­ but if we could have a stenogra-pher present to make reports of answers. ·MR. :SMA,LLWOOD : ,1 :have al­ ready answered the first part. To the second part my answer is, no. No stenographer.

To clarify that, I have already said members of the House only, so that the questions might oe thoroughly frank and answers equally frank . I said that. The House on motion then ad­ journed until tomorrow, Monday, Sept. 19 at 3:00 p.m. MONDAY, September 19, 1955 The House met at Lhrne of the clock in the afternoon, ·pursuant to adjourn­ ment. HON. ]. R.

SMALLWOOD (Prime Minister) : Mr, Speaker in t,he "Eve­ ning Telegram" of Fraiday, the 16th, of this present month there appeared an editoria,l written as follows: WITHOUT PREJUDICE "A questio-n ,certa,in to be asked by ~he Opposition and demanding a reply by the Government with reference to the proposed agreement to guarantee sixteen million five hundred thousand dollars ,bend hsue of Canadian Javelin is, whether any member of the Legis­ latuPe are shareholders in the com­ pany. The proposed guarantee is a ma,t ter which is of concern to the general public.

And pledged to apply them­ selves to pubhic welfare with complete disregard of personal interest, repre­ sentatives who were financiaUy inter­ ested in the deal would not be ex­ pected to express themselves or vote on this issue without prejudice. In a simHa:r case recently i•n the Federal Government, the members involved, j.f we are not mistaken, had to resign." Mr.

Speaker, whi,le I do not admit the prnpriety of this editorial, I do admi,t quite frankly and quite readily that the point raised in the editorial, whether ,it should have rbeen -raised or not, in that it ,has been raised in the public ,press, ought to be answered. I cannot, of course, answer it for all mernbers of the Legislature. I cannot for example a1J1swer for members of the Legislature on the opposite side of the House. I have no tlou,bt that my hon­ ourable friend, t1he Lea-der of t'he Opposition wil,l answer for them. No one would expect me to answer for the members on the other side.

I can say, for the mem'bers on this side of ~he House, that I have seen all of them, with the ex,ce-ption of one member only, a,nd he ,is not tin the Province. He has been absent .from the Provin<:e for ·well over a week, and I have not been able to get in touoh with him. But, with that sole exceP'tion and with the exception of Your Honour - I hav,e not presumed to ,ask Your Honour. And Your Honour will do as he sees fit in the matter.

But., with the exception of Your Honour MJ.d one member of the House, seated on this side of t'he House, who has bBen a,bsent from the Province for well over a week, and with whom ,1 have not be-en able to get in touch, wJth these exceptions, I have questioned every member of this side of the House. And I am fully assured by all

1188 HOUSE OF ASSEMBLY PROCEEDINGS of them, wJ.thout exception (

a) they have no shares in Canadian Javelin Limited (

b) that their wives have no shares in Cainadian Jave<Hn Limited and (

c) t,hat no relative that they know of has any share in Canadian Javelin Limited and (

d) no one that they know of has any share in their behalf. In shor•t, all of Lhe members who sit on this side of the House, with one exception, and so ,far as he is con­ cerned, I believe, the same statement would apply. But I ,cannot say this as I have not been l!Jhle to contact him, with -that possible exception, all the members on this side of the House are l!Jbsolutely free of implication in sha~·es or finances of Canadian Javelin Limited. I h,we one other thing to say, Mr. Speaker: O,n the order paper today are notices of a number of questions.

Some o,f these questions wiH be an&wered and will be answered today. Others of them wi,1,1 be answered per­ haps tomorrow or the next da·y. Some of rhem will not be answered in this session. And I wish to ·inform the House now that it is not Lhe intention of the Government in this special session to deal with questions whi,ch have not got a di,rect and immediate effect upon the special business of this special session, and direct bearing upon the special business of this session for which ~he session is called aind is being conducted.

Information beaTing upon ~he business for which the ses&ion is called and being conducted may be asked with the assurance the answers wiU be forthcoming as quickly as we oan get the-se answers. Any questions bearing upon matters wilh which this House has not been called to deal will not be ans,wered, but ma.y be a-nswered in the regular session of the House when that is 'held. HON. M. M. HOLLETT (Leader of the Opposition): Mr.

Speaker, as rhe Honourable othe Premier has rnised the point of Javelin shl!Jres: In the first place I see no reason w'hy the Honornr­ a:ble the Premier should have raised the point except -the editorial. And ~f he is goi,ng to pay attention to editor­ Jals as they appear in •the "Daily News," the "Evening Telegram" or any other paper and. speak to a point of p-11ivilege on them, then we will be here a long time.

Now that he has raised the ,point, I wish to s~ate em­ p'haticailly I myself and no member of the Opposition here today nor the ones that are not ,here, there is one I :have not seen, but the three members here today ha·ve no shares in Javelin nor had at any time any shares in Javelin. I did not hea-r th-e P•remier say that. I re-peat - have none, and at no time had we any shares in Javelin. Per.haps the Premier would like t,o enlarge his statement in regard to that.

I might say, in regard to any ques­ t,ions I have tabled, Sir, are tabled with a view of getting -the present position of the counL1y finam:ially so that we may be aible -to discuss the matter which is to come before this House with a fair amount of reason and inteUigence. We should only ask such questions. MR. SMALLWOOD: Mr. Speaker, before the matter is allowed to pass, perhaps I would be permitted to reply to the point raised by the Honouraible Leader o.f the Opposition as to whether or not members on this side have been owners of -shar-es in Canadian Javelin, Limited.

Now my frank answer to that is that I don't know. I do not know. Many hundreds of persons, Newfoundlanders living ,here in St. John's and elsewhere in Newfound­ land, perhaps many hundreds, by common rumor, have been buying and selling Javelin shares. And that has

HOUSE OF ASSEMBLY PROCEEDINGS 1189 been true across Canada. That has been true dow,n in the United States. There has been a considerable trade in buying and selling of Javelin shares. Whether any of my honourable friends on ~his side of the House have in the past ·bought and sold Javelin shares is, I think, non e of my business - none of my busin ess. Nor do I thJnk it to be any of the •business of mry honour­ abie £riencl, the Leader of the Opposi­ tion.

It is his business and certainly my business to know tha•t while mem­ bers of the Government - Government as clistinct from members of the Legis­ la-ture - that no member of the Government has shares while he is deciding whether to .put through this leguslation or not; and that no member of the House has shares while it is before ~he House. That I can assure the House. What happen ed in the past, before -this matter came up, before the question of guaranteeing these ·bonds came before the Ca,binet and the House, I do not know, and I ca-re less - is that dear?

Before this issue ca.me up, before t'here was a quest ion of guara:nteeing the bone! issue, before the decision ,was •taken, during the ·talks of it and since - MR. HOLLETT: On that po,int, Mr.

Speaker, I realize we s·hould not prolong t;his - I want to say that th,e consideration by certain members of the Government and with the Cabinet, the consideration of obtaining a gua·r­ antee for Canadian Javelin has been going · on for a considerable period - a considernble per.iod - And I would be much better pleased if the Honour­ able the Premier had been able to say; that at no time since the consid­ eration o,f this matter was taken up. MR. SMALLWOOD: Exactly what said. MR . HOLLETT : Not exactly, I would be :better pleased H the Hon - ourable the Premier could say t;hat.

Because, Sir, we a•re the Opposition. And we we do know a few things. We do find out a few things. 'I don't want to raise the matter. The Hon­ ourable the Premier raised it_ I don't want to have -anything to do with the personal affairs of any members of t'he Government side or the Opposition. The~r personal afifa.irs are their own. It would be unfortunate to come before this House and prove certain members on the opposite side did trade in these ~hares while they were jugg,ling up and down to some extent on account of negotiations w·ith tme Government. It would be unfortunate. But that.

I ~ay, is not my affair at this pa·rticufa-r time. MR. SMA!LLWOOD: Mr. Speaker, as this final word - I thought I had made it absolutely clear - The mem­ bers of the Government while consid­ ering this application for a guarantee were not owners of any shares. What happened prior to that I don't know and don't care. H is none of my business. MR. BROWNE: Mr.

Speaker, on a point of order - On the point raised by th-~ Honour<Lble the Premier that the Government would answer certain questions, but if anything was asked that did not appertain to the special business for which the House had been ca'1led they were not going •to answer. I think there is a great principle at stake here. The House is called by the Government •for certain business. But honouracble members in this House have equal rig•hts, Any mem­ ber is entitled to i.ntroduce ,Jegisla·tion in the appropriate manner. Any mem­ ber is enti~led to ask questions of the Government.

If the Government, in its wi~dom refuses •to answer questions as questions come up it is another matter. But to lay down ,hand a,nd fast

1190 HOUSE OF ASSEMBLY PROCEEDINGS rules that they are not going to ans·wer any questions because they don''l deal with tihe Javelin matter, I 1thrnk, Mr. Speaker, it is out of order. MR. SPEAKER : The Government of course refuses to answer questions entirely at its own poJ;itical risk. I have to uphold the point. MR. SMALLWOOD: may ,I inquire what Honour is upholding? M,r. Speaker, poi,nt Your MR. SPEAKER : That t1he honour­ able member has the ,1,ight to ask questions or introduce legislation. MR. SMALLWOOD: No one sug­ gested that honourable members were not to ask questions.

I only said the Government has no intentio,n of answering questions which have no direct bearing on t'he busine ss before this specia,J session. That is all I said, It was not asking but answering. But I would like to know what You'l' Honour upholds, my poLnt that we are not going to an&wer or the other point ~hat an honourable memlbcr may ask? MR. SPEAKER: I thought it was quite clear. The Honou ,rable member objected to the flat statement ~hat no questions would be answered.

I pointed out the right to ask questions and the Government 's right to r-efuse a111swers when queS'tion we,re asked. had to uphold it, •when I said the GovePnment has the right t.o refuse at its own pol-itical rfak. That matter concerns the Government only. I had to agree with it. Presenting Reports of Standing and Select Committees MR. J. R. COURAGE : Mr. S!peak­ er, I beg leave to pmsent the report of the Select Committee appointed to draft an Add'l'ess in Reply to His Honour the Adrni·nistrator, Sir B-rian Dunfield. I move, Sir, that this report be received. On motion report received and adopted. MR.

SPEAKER : Does -the House wish to discuss ehe motion? MR. SMAIJLWOOD: Later, Mr. Speaker . MR. BROWNE: after questions. Defer it until MR. SMAILLWOOD: Until later, Mr. Spea-ker. MR. BROWNE: Unti ,l after ques­ tions, Mr. Speaker. MR. SMALLWOOD: My motion, Mr. Speaker, is to defer it until! la,ter. MR. HOLLETT: Mr, Speaker, I wish to raise the point, if t:,he motion could be deferred until a.fter presenta­ tion of answers. MR. SPEAKER: It has to be de­ ferred until after questions. But when the Government wishes to enter into deba·te I do not know. Giving Notice of Motion None. Giving Notice of Questions

(10) MR . HOLLETT: To ask the Honourable the Minister o,f Finance to lay on the table of the House the fol­ lowing information : (

I) Table aH minutes of council under Sections 37 (1) and 37 (2) (

a) and (

b) of the Revenue and Audit Act under and by which amounts of money and expenditure have been authorized or expended since Februa-ry 28, 1955.

(2) S'haw the amounts authorized u1nder these minutes of council and

HOUSE OF ASSEMBLY PROCEEDINGS 1191 the Teasons for such issues and author­ izations.

(11) MR. HOLLETT: To ask the Honourable the Minister of PubHc Works to lay upon the table of the House the following in.forunation : I. What contracting firm has been engaged in grading on rhe Deer Lake Road? 2. Is this work being done on spedal cootTact, and how much money has been paid to bhe contracting finn for grading the Deer Lake Roa:d to date? 3. Is it coi;rect that the Department of Public Works also have men and machinery engaged in girading this road?

(12) MR. HOLLETT: To ask the Honourable the Minister of Fisheries to lay upon the table of rhe House Vhe following ,infonma,tion : 1. How much money has been (

a) loaned (

b) guanmteed to the O'Brien Fisheries Limited at Curling? 2. What mortgages, if any, have been given to the -Government on these loans? 3. Where are the properties so mortgaged situated and their valuation in each case? Answers to Questions HON. G. J. POWER (Minister of Finance) : Mr. Speaker, •I have the answer to question

(1) Sections l, 2, 3, and 6 whkh I table. ('Mr. Hollett) -QUESTION NO. 1. (1) $4,000,000.00 (Gross) 3,045,941.29 (Sinking Funds). $39,954,058.71 (Net) . (2) $12,897,771.94 (as at 31-8-55)

(3) See attached.

(6) Nil.

CASH LOANS Amount Advanced to 31/8/55 $ A.

Adler of Canada Ltd. .. ........... ,.............................. 72,000 Andrews Labrador Fisheries Ltd, ................................ '120,000 Atlantic Films & Electronks Ltd. ................................ 150,000 Atlantic fi,lms &: Electronics Ltd. ............................ 50,000 Atlantic Gloves Ltd. ...................................................... 3 1 50,000 Atlantic Gloves Ltd ..... .................................................. 2.19,529 AHantic Hardboard Industries Ltd ..... .......... ........... 575,000 Atlantic Hardboard Industries Ltd . ......................... .

Ahlantic Hardboard Industries Ltd. Atlantic Hanlboard Industries Ltd. Atlantic Hardboard Industries Ltd. 60,000 285,000 27 1 8,000 40.000 Atlantic Optical Co. Ltd. ... .......................................... 150,000 Bonavista Cold Storage Co. Ltd . ............................... .1,050,000 Bonavista Fish Meal & Oils Ltd . ............... . 40,500 lnten .'St Rate % 5 5 5 5 5 3¼ Interest Paid $ PURPOSE OF LOAN To enable the Company to set up operations of a chocolate plant. See guaranteed loans. To assist the Company in establish­ ing a motion picture business. See g.uaranteed loans.

To enable the Company to establish a factory for the manufacture of leather gloves, etc. To provide working capital. To construct and operate a factory for •the manufacture o.f hardboard. To secure li-cense from the patent holder for the manufacture of light­ weight wallboard. To enaible the Company to install a sprinkler system. See guaranteed loans. See guaranteed loans. 2,027.63 To assist the Company in starting an eye•glass factory. 13,132.20 See guaranteed loans. 2,835.00 To finance ·the erection of a fish meal plant at Bonavista. I 0 C (/) m 0 ,, )> (/) (/) m s OJ r -< "'Cl :;o 0 n m m CJ z G> CJ>

--- .... - ~-- --~- C.M.I.C. Ltd . . ................................................................. 2,500,000 Duffett, Alexander ·-···........... .... ................................. 20,000 Eckhardt Mills Ltd . .......................... ........................... 387,400 Eckhardt Mills Ltd.

Fisihery Products Ltd. 160,000 150,000 Fishery Products Ltd . .................... - ........................... 937,000 Fishery Products Ltd . 29,000 Fishery Prod ucts Ltd . ................................................. .1,417,700 Gau ltois Fish eries Ltd . ............. ,............................... .... 425,000 Col d S ail Leath er Goo ds Ltd . .................................... 50 ,000 Gold Sail Learher Goods Ltd. .................................... 145,000 Hanning Electr.k Co. Ltd. ............................................ 325,000 Hanning Electric Co.

Ltd. ............................................ 120,000 Har:bou,r Grace Town Council ................................... . 7,ll2 4 5 !I½ F,ree !I 5 5 5 5 5 Free To assist the Company to erect a machinery plant. To assist in the purchasing of a vessel. To enaible the Company to set up a lm~tting mill. See guaranteed loans. 21,543.49 See guaranteed loans. $350,000 of this loan was previously a guararnteed loan. 45,083.80 To finance the construction af sev• era! plants . To assist the Company in purchasing -three vessels. 5,479.77 To finance tihe new expansion pro­ gramme . See guaranteed loans.

To estajblish a factory for the man.i­ factur ,e of leather goods. For the purchase of materials and wmking capkal. For the constructi on and operation of a factory for the manufacture of elec• tric storage batteries. For the purchase of materials and working capital. Acquisition of outstancling shares of Har.hour Gr.ace Wat er Co. :I: 0 C U> m 0 "T1 )> U> U> m s: OJ ,.... -< "'Cl ;o 0 n m m CJ z

G) U>

CASH LOANS Humber Gardens Ltd . Koch Shoes Ltd. Advanced Amount to 31/8/55 100,000 750,000 Koch Shoes Ltd. ..... ......................................................... 120,000 Lourdes Co-op. Society Ltd. .................. .. . .... ........ 50,000 Newfoundland Asbestos Ltd . ...................................... 250.000 Newfoundland Asbestos Ltd. Newfoundland Quick FTeeze Ltd . .. 130,000 40,000 Newfoundland Tanneries (Wm. Dom) Ltd. 300,000 Newfoundland Tanneries (Wm. Dorn) Ltd. 58;800 Newfoundlamd Tanneries (Wm. Dorn) Ltd. ............ 25,000 Newfoundlamd Tamneries (Wm.

Dorn) Ltd. ............ 8,000 Newfoundland Tanneries (Wm . Dom) Ltd . ............ 76,200 North Ea•stern Co-op. Fisheries Ltd. ........•............... 57/134 O'Brien Fisheries Ltd. .................................................. 95,000 Olsen Whaling & Sealing Ltd. .................................... 1.27,997 Interest Rate Free 5 5 5 4 4 6 4½ 5 4 5 Interest Paid PURPOSE OF LOAN For the construction of a stadium at Corner Brook. For rhe construction of a boot and shoe factory . For the puTchase of machinery and working capital. See guaranteed loans.

Construction and operation of a mill and the mining of asbesws . See guaranteed loans. For the construction of a fresh frozen fish plant. To establis-h a tannery. Machinery and expansion of plant. Workiing capital. To enaibile the staff to transport their families from EUTope. Purchase of materials . See guaranteed loans. To establi sh a fish plant. See guaranteed loans. :c 0 C en m 0 "T1 )> en Ul m s OJ r- -< "tJ ;;o 0 n m m CJ z ~ . '

Petite, H. E. Ltd . ....... : .... ,............................................... 15,000 St. John's Memorial Stadium .................................. .. Association Ltd . ....................................... -... .................. 100,000 St. John's Munkipal Council .................................... 150,000 Superior Rubber Co. Ltd . ................ - ........................ ..il,000,000 Superior Rubber Co.

Ltd. ............................................ 400,000 Terra Nova Textiles Ltd ... ................. _ ....................... 289,000 Terra Nova Textiles Ltd. ............................................ 172,000 'Dhomsen & Nickels ...................................................... 33,500 United Cotton Mills Ltd. ............................................ 298,618 United Cotton Mills Ltd. United Cotton Mills Ltd. 74,081 109,000 5 Free Free 5 5 5 5 4 1,087.50 For the purchase and expansion of J. Petite & Sons Ltd. For the construction of a stadium at St. Jdhn's.

To assist the Council in meeting it~ deficit. To enaible the company to construct and operate a rubber plant. Machinery materials and working capitat To assist the company in starting its operation. Part of this loan was orginally a guaranteed loan. Materials and working capital. For the puI'chase of shares in Bon• avista Fish Meals & Oils Limited. 16,798.35 To assist the Compamy in establishing a textile industry. 2,059.55 For the training of additional staff. Materials and working capital. This statement does not include expenditures in re~pect of Atlantic Gypsum Ltd., North Star Cement Co.

Ltd., or Newfoundland Hardwoods Ltd. Enquiries relating to Town Council loans should be addressed to the Honourable Minister of Municipal Affairs and Supply. I 0 C U> m 0 ,, ~ U> m ;: OJ ,- -< ,, ;:CJ 0 n m m 0 z G> (/)

(MR. HOLLETT) QUESTION No. 1 (SEC'J1ION 3) Guaranteed Bank Loans Rate of Guaranteed Interest Alberto Fisheries Ltd. .................................... 65,000 Andrews Labrador Fisheries Ltd. ................ 160,000 Andrews Labrador Fis·heries Ltd. ............ 125,000 Arctic Fishery Products Ltd. 125,000 Atlantic Films & ·Electronics •Ltd. ............ 50.000 5 Atlantic Hardboard Industries tLtd. ....... 278,000 Atlantic Hardboard Industries Ltd. ........ 40,000 4½ ~laokmore, Capt. J.

H. .............................. 106,000 5 Bonavi.~ta Cold Storage ·eo., Ltd . ............. 1,050,000 5 Bona vista Cold Storage Co., Ltd. ............ 600,000 Purpose of Loan To acquire the M.V. Alberto Wareham To purchase the assets of James Baird (Labrador) Ltd .. To ,pay for saltbulk fish purchased from fishermen To enable ~he Company to expand their premises and equipment at Dildo To assist the Company in its expansion programme. To erect a warehou~ ··and acquire additional maehinery. Additional working capital.

To purdhase a vessel to replace the "Newfoundland." To assist ,~he compatiy in purchasing the assets of Northlantic Fisheries Ltd. and to extend its •premises at Bonavista. For the purchase of three traiwlers. Remarks Subsequently converted to a cash loan. Subsequently converted to a cash loan. Subsequently converted to a cash loan. Subsequently converted to a cash loan. Subsequently converted to a cash loan. ::::c 0 C (./1 m 0 ,, )> CJ> CJ> m ~ CJ ,- -< -0 ;,o 0 () m m 0 z G) (./1

'3urgeo Fish Industries Ltd ..... ........ ·-····· 650,000 Cape St.

Francis Co-op Society Ltd ......... 10.000 Comer Brook Regional High School 700,000 Dunphy's Limited ........................................ 45,000 Eckhardt Mills Ltd. .................................... 160,000 Fishery Products Ltd. 110,000 Fishery Products Ltd. .................................. 350,000 Fishery Products Ltd. .................................. 350,000 Fortune Bay Products Ltd. ·······-······.... 200,000 Fortune Shipping Ltd. ................................ 250,000 Gaultois Fisheries Ltd. ................................ 425,000 Hollett Sons &: Co., Ltd. ... _ ................. 125,000 Koch Shoes Ltd . 120,000 5 5 5 5 5 5 4 3½ 5 To purchase Fishery Products plant at Burgeo.

To assist the Society in ,rhe payment of its debts and to provide working capital. To provide addition.al class rooms. To acquire a vessel for the herring fishery. To enable 1!he Company to construct a staff house. To finance the production of fish solubles. To enaible the Company to acquire t-wo draggers. To maintain ba~t depots and construct several plants. For extension to the plant and t-he acquisition of freezers, etc. For the purchase of two trawlers. To acquire two draggers and establish a plant at Gaultois. For the purchase of two vessels. For the purchase of machinery and to p~ovide working capital.

Subsequently converted to a cash loan. Subsequently converted to a cash loan. Su1bsequently converted to a cash loan. Subsequently converted to a cash loan. :I: 0 C CJ> m 0 -n ~ CJ> m s: OJ ..--< -0 :;!J 0 (") m m 0 z

G) CJ>

Guaranteed Bank L<>an5 Rate of Guaranteed Interest Lourdes Co-operative Society Ltd . ........... . 40,000 Layman, Harry ............................................ 15,000 Locke, Gordon ·•·············•·····-························· 7,000 Mackinson's Ltd. ............................................ 30,000 MaoLellan; C. F. ........................................... 75,000 Newfoundland Asbestos Ltd . .................... 130,000 Northe~tem Co-op. Fisheries Society.... 3•5,000 Newfoundland Tannerie, (Wm.

Dom) Ltd. ................................ 58,000 Nortih Eastern Fish Industries Ltd .. ....... 400,000 Northlantic Fisheries Ltd. .......... ..... .......... 675,000 Olsen Whaling &: Sealing Ltd ................... 425,000 ParllOtlls, Olaude ............................................. 10,000 5 5 5 5 5 5 4 5 Purpose of Loan To liquidate its debts and assist the Society in its programme of develop• ment. To ,complete and equip his hotel and construct five cabins. For the erection of a tourist hotel. For the eX!tension of the restaurant and the construction of six ,to eight additional cabins.

To purchase and operate a ferry to Bell [sland. To ena·ble the Company to complete the miH and under.take further ex­ p1oratory worlk.. For the erection of a fish drier. For -the purcha!ie of materials and t-he installation of two tanning drums. To assist the Company in the purchas­ ing of two d-raggers. For the purchase of three trawlers. To !finance the enlargement of the plant at Williamsporll. For the construction of a motel. Remarks Subsequently converted to a cash loan. Subsequently converted to a cash loan. Su•bsequenitly converted to a cash loan.

Subsequenitly converted to a cash loan. -0 CX> I 0 C en m 0 .,, -c, ;o 0 n m m 0 z ~

Richard Limited ..... ........................... .......... 250,000 4 RO'berts, Edgar L. ........................................ 16,000 5 Springdale Fur Farmers C.0-op. Society Ltd. ............................................ 7,000 St. Lawrence Corporation of Nfld. Ltd. 250,000 St. Lawrence Corporation of iNfld. Ltd. 287,500 Superior Ruiblber Co. Ltd. 150,000 5 Terra iNova Textiles ,Ltd. ........................ 185,000 5 U. C. Board of Education ........................ 40,000 Union Electric Light & Power Co.

Ltd..... 500,000 5 United Engineers & Contractors Ltd......... 75,000 4 Wellon, Raymond ....................... ,................ 60,000 !j . ~· ···~ r~·--~~ ~· - .. ~ .. ~.-,,,,~ .. Acquisition and operation of Icelandk trawlers. To erect five or more tourist caibins. To finance the erection of a oold storage. To expand the operations of the Company. To purchase a freighter and diesel plant. Working capital and the acquisition of new machinery. To enalble the Company to commence operations. To provide additional educational facilities.

To provide interim financing until the ,proceeds of its bond issue were realized. To assist the Company in i.ta11ting up its operations. To build and equip fifteen tourist cabins. Su'bsequerutly converted to a cash loan. Subsequen,tly oonverted to a cash loan. Subsequen,tly oon:verted to a cash loan. This statement does not include expenditures in respect of Atllantic Gypsum Ltd., North Star Cement Co., Ltd. or Newfound­ land Hardlwoods Ltd. Enquiries relating to Town Council loans should be addressed to ,the Honourable Minister of Municipal Affairs & Supply. I 0 C CJ) m 0 "T1 "U ;;o 0 n m m 0 z

G) CJ)

1200 HOUSE OF ASSEMBLY PROCEEDINGS MR. SMALLWOOD: Mr. Speaker, noNviLhstanding the fact that a good many of ·these questions have already b-eein answered in this House, and thorefore would not require answerh1g now, I shaiJI answer them because of the peculiar interest that attaches to the quc,tions and answers in this par­ ticular session : Qu-est,ion

(2) Directors: Hon. J. R. Smallwood. Hon. L. R. Curtis. Hon. Gregory J. Power. J\,f:r. John C. Doyle of Montreal. Mr. George McIntosh of New York. There is no chair111an The office of chairman is vacant. Vice-President, Secreta:ry - Treasurer, rvfr. Rona 1ld Turta. Question (2) 2: (

a) None owned by Mr. Doyle. He is not a shareholder of NALCO. Canadian Javelin has b-een issued 76,642 common no pa,r­ value shares at $5 per share for a paid in total of $383,360. (2) 3. The Goveirnment of New­ foundland 900,000 shares at $1 each; I-IarTiman Rupley & Co. Inc., of New York 40,000 shares at $1 each; Wood Gundy R: Co. Ltd., Toronto 28 000 sha,res at $1 each; Cha,11les S. Payson 10,000 at $1 each; Michael Lewin 5,000 shares at $1. Now that is all at $1, Mr. Speaker. The re3t a•re at $5. L. J.

Forget & Co., Montreai! 500 shares at $5 each; Jackson & Co. 500 shares, $5 ea•ch; Rittenhouse & Co., Montreal 500 shares; $5 eaGh; Burton & Co. 500 shares, at $5 each; Canadian Javelin Limited 76,672 shares at $5. Now Mr. Speaker, all these sha-res of $5 each were bought by a group of investors of which the firm of Can­ adian Javelin Limited was the leader. That is to say, Messrs M. J. Forget & Co., Jackson &: Co., Rittenhouse &: Co., and Burton &: Co., are well-known Canadian boind houses, investment houses, who followed Javelin in the maik;ing of this bu1k purchase of shares at $5.

Now then in the second place, com­ mon-non-par value, parbly paid shares. An initial payment of 66-2/3c. per share and the balance of the issued price in five equal instalments. That is per the NALCO A,rtides of Associa­ tion, the rules of NALCO, under a certain section, where new shareholders are permitted to buy shares the old shareholders are permitted to buy an equivalent or corresponding nu~ber and pay for them over a period of years. S'o we have there.fore, Michael Lewin 1,250 at $5 and Ja•ckson & Co. 1,250 at $5.

The tota,! amounts paid in there.fore for sha,res has been as fol­ lowing: 1,078,672 shares at $1,393.360 and partly-paid, no par vailue, com­ mon, 1,500 shares at $2,300, making a grand total paid into the Treasury of NALCO for shares of $1,395,660. I table a copy of the agie-ement en­ tered into between NALCO and Mr. J. C. Doyle or Canadian Javelin in connection with twenty-l'hree hundred square miles now held by them. This is the agreement - Tabled. I table a eopy of the agreement made in September 1953 in which Mr. John C.

Doyle and/or Canadian Jav­ elin, Limited were to acquire control of NALCO - Agreement tabled here­ with. (2) 6 : That is all stated in the agreement. (2) 7 : On account of no-par value, common, fully paid shares $24,500.

HOUSE OF ASSEMBLY PROCEEDINGS 1201 Amount paid on account of no par value, part,ly paid shares $663,400, total amount paid in accordance with the terms of the September 3, 1953 agreement, $687,000. Amount actually paid in ,in issuance of agreement was on account of non-par value common fully paid shares $24,500 and on ac­ count of no par value common, pa-rtly paid shares $663,400, making a total of the two together of $687,900. (2) 8 : They did. (2) 9 : They did not, except in the very strictest technica•l meaning of the term they did not default.

But by common sense, by agreement whioh took some weeks to reach the deal was not proceeded with - by common sense, by agreement between J:weHn and ourselves as .principal owners of NALCO, the agreemoot whereby tihey were to buy and pay for one million shares was dropped. That whole agreement was dropped by mutua•l consent so that Javelin might concen­ trate all of its efforts, so that they might concentrate -all of their efforts, on promoting and developing the J•avelin concessiOIIlS in the Wabus·h Lake part of La'brador.

(2) IO: I table herewith a copy of the agreement between NALCO and Canadian Longyear Company. It was negotiated by Mr. Horace C. Young, who was then the Chief Mining En­ gineer od' NA•LCO and Mr. Paul I. Pesonen, Mining Engineer of Canadian Javelin. It was jointly negotiated by NALCO'S ohief engineer and Javelin's chief engineer, and, I think, initialled by Mr. Doyle as Chaillillan at that time, momentariily or temporary cha,ir­ man of NALCO. Tihe total expenditure at that time on Javelin, on Wabu~h driilling, the total expendi,ture arising out of that contract, was $379,137,11.

This was paid by NALCO and re-imbursed by Canadian JaveHn. It was paid in the first instance by NALCO, in whose be­ half the driilling was done but ,was re­ vmbursed to NALCO by Canadian Javelin. THIS AGREEMENT made this 11th day of March Anno Domini, one thou­ saind, nine :hundred and fifty-fou;r BE­ TWEEN Newfoundland and Labrador Corporation Limi,ted, a statutory cor­ poration under the Newfoundland and Labrador Corporation Limited Act, No. 88, 1951, having ,its :head office at St.

John's in the Province of New­ foundland, (hereinafter called "the Couporation") of the one part AND Canadian Javelin Foundries and Machine Works Limited, a Company incorporated under the laws of Canada and having its head office at Dominion Square Bu,il-ding, Montreal, in the Province o,f Quebec, Canada (herein­ after called "the Company") of the other .part.

WHEREAS the Corporation is de­ sirous of furthering the economic development of Newfoundland by ex­ ploration for and development and production of all or any mineral de­ posits ,that may be located in the area in Newfoundland controlled by ,the Corporation . AND

WHEREAS the Company has requested the Co~porat,ion to enter into this Agreement and the Corpora­ tion has agreed to grant ,to the Com­ pany mineral rights and properties hereina ,fter described for the period and upon and subject to the terms and conditions hereinafter set .forth. NOW THIS AGREEMENT WIT­ NESSETH as follows : I. The Corporation shall forthwibh irrevocably reserve for the sole and exclusive use and benefit of the Com-

1202 HOUSE OF ASSEMBLY PROCEEDINGS pany and hereby grants to the Com­ pany for the period of three years from tr..•e l~t day of January A.D. 1954, (hereina.fter called "the exploration p eriod") the exclusive right to ex­ plore, develop produce, extract and remove all minerals, both metallic and non-m etallic, dn and fro.m the areas described in the First

Schedule to this Agreement (hereinaft er called "the re­ served areas") except such portions of the said reserved areas as are held by any pe rson or perso-ns under existing valid miming grants, leases or licenses fr om th e Crown or any other existing right s. The Corp oration represents that it has no knowledge of any such grants, leases, licenses or ,rights of a substantial nature. 2.

During the exploration period lhe Com,pany shall ,have the exclus-ive prospecting and exploration rights in and over the reserved areas upon the terms and condit,ions set forth in this Agreement and shall be entitled to en­ ter upon and surv -ey and prospect and explore the reserve areas or any part thereof by all or any such means as the Company may deem necessary to prove the exist-ence, valu e and extent of the minerals thereon and thereunder, whether by geologica.J or geophysical survey, dia,mond drilling , surface or subt erranean prospecting, excavation or works per,taining to the execution of an active exploration and develop­ ment ,program. 3.

The Company s!hall cause ex­ ploration work to continue upon some portion of the reserv ed areas as ear.J y hereafter as ·the season will permit and shall pu, sue prospecting and explora­ tion diligently and in good faith throughout -the normal exploration season s during the exploration period usi•ng geological and or geophysical surveys, diamond drilling, surface or subterranean prospecting, excavation or works or any or all of such methods of prrn,pecting and exploration as the Company may deem necessary. 4.

The Company shaH be required to expend the sum of one miHio,n dol­ lars in connection with the prospecting and explora,tion of the reserved areas or any ,parts thereof during t:he ex­ ploration period. Prior to the date o,f the execution of this Agreement the Company and the Corporation have expended or have caused to be ex­ pended certain sums for the purposes aforesaid. It is understood and agreed that such amounts as have been so expended prior to tihe date of execu­ tion of this Agreement shall be con­ sidered as part of the said sum of one mi-Ilion dollars .

The Corporation ac­ know,Iedges that it :has been reim­ ·bursed for such moneys exp ended by it on or before December 31, 19.53 and it is fur:ther understood and agreed that the moneys expended by the Cor­ poration on the reserved areas on or after January I, 19;;4 sha,11 be paid !by the Company to the Corporation prior to December 31, 1954 upon receipt of a statement of the expenditure of the sa,id moneys certified by a Chartered Accountant approved by the Company and geologica,J data and the results of the exploration work done by the Cor­ poration in the reserved areas will be made available to any person or per­ sons authorized in -writing by the Com­ pany at any ·t·ime after tf1e receipt of the ,before mentioned sta·tement. 5.

For the purpose of this Agree­ ment, expenditures on prospecting and exploration shall not include any of­ fice or overhead expenses of the Com­ pany outs ,ide of Newfoundland other than the salaries and ex,penses of of­ ficials or employees of the Company while actually engaged in Newfound­ land or in connection wiuh the work

HOUSE OF ASSEMBLY PROCEEDINGS 1203 of pro~pecting and exploration of the reserved areas or any part tlrereof. 6.

The Company shall furnish to the Co.rporat-ion not •later than the 1st day of February in each year (com­ mencing on the 1st day of February 1955) during the exploration period, a reasonably detailed report of the pros­ pecting and exp.Jorallion work (includ­ ing copies of geological, topographic and undergroud maps, assay repo.rts and related records) done or made by the Company under this Agreement to the ,end of the .preceding calendar year; and the Corporation agrees vhat any such information will be treated as confidential so long as the Company retains any interest in the reserved areas.

If the Company terminates this Agreement and surrenders or releases the reserved areas to the Corporation or df the Company forfeits its rights under the terms of this Agreement, the Company shaU deliver to the Corpora­ tion a detailed report of the prospect­ ing and ex,ploration work done and copies of geological, topographic a,nd underground maps, assays and other records obtained or made by it and not ~heret-ofore delivered to the Cor­ poration. 7.

Any person thereunto authorized in writing by the Corporation shall be given by the Company every reason­ able opportunity at the risk and ex­ pense of the Corporation to -inspect the field ,work and subsequent maps and compilations of the Company i·n order to' correlate the work of tht Coi,poration wi,th such geological work as may be done by the Company. 8.

The Company shall submit to the Corporation on or before the 31st day of March in each and every year, commencing in the year 1955 and end­ ing in the year 1958 an account of its expenditures during the precedling calendar year incurred in connection with the work of prospeoting and ex­ ploration of the l'eserved areas which account shall be certified by a reput­ able firm of Chartered Accountants and approved by the Oo~poration. 9.

The Company shall have the right during the exploration and de­ velopment periods to remove without payment reasonable quantities of rock, ores or minerals from any part o,f the reserved areas and to export the sa,me for the purpose of sampling in bulk or otherwise or for metallurgical test­ ing or assaying. IO.

All work performed by the Com­ pany in the reserved areas shall be fully paid .for by it and the Company shall protect the reserved areas against liens of mechanics or material men rel!;istered on account of any labour per.for.med upon <Jr mater.ial furnished to any part of the reserved areas at the instance or request of the Com­ pany. 11.

The Company shall be en,t;it-led at any time during the exploration period but not after the 1st of January, 1937, to apply to the Corporation for a de\'elopment permit or permits for one or more areas which shall not be grea-Ler than is reasonably necessary for the proper exercise of its rights to produce and remove such minerals as are mentioned in

Section IV, para­ graph 8 of the Second

Schedule at­ tached to this Agrement. Such area or areas shaH not be less than one squa11e mile each but not exceeding fifty square miles in ,the aggregate. The s'hape, maximum size and orien­ tation of such area or a,reas may be located anywhere within -the reserved area hut need not be contiguous. Upon receipt 0£ such applicat•ion the Corporation shall execute a pe1°mit or permits authorizing the Company to • I

• 1204 HOUSE OF ASSEMBLY PROCEEDINGS develop ,the a,rea or areas selected for a period of -two (2) yea,1_·s from the date of the permJt or permits and to carry on in the said selected area all sudh exploraition and development work as the Company may de-cide ror a period of two (2) years following the date of the per,mit. In order to main­ tain such permit or permits in effect the Company sha.J.J engage in and carry out wilh reasonable deligence such work on the pe1,mitted area or are as as is reasonahly required for such de­ ve.Jopment. 12.

The Company shall be entitled at any 'time dur,ing the exploration period and/or the development per­ iod ,but not after the 1st of January, 1954, to apply to ~he Oorporation for a mining lease or leases limited to an area or areas which shall not be great­ er than is reasonably necessary for the pmper exercise of its right to produce and remove such minerals as mentioned in

Section IV, paragraph 8 of the Second

Schedule attached to •this Agreement. Such area or areas shall not ,be less than one square mile each but shall not exceed .fifty square mHes in the agg.rega,te. Upon apply­ ing to the Corporation for such min­ ing lease or leases the Company shall incorporate and register in Newfound­ land under the Newfoundland Com­ panies Act a subsidiary corporation of the Company , hereinafter referred to as •the ",New Company", in such form and with such capilal, par value of shares, number of directors and co1,poratc organization as shall be de­ termined by the Company.

Upon com­ pletion of the organization of the New Company, and provided that all olbligations of the Company under this Agreement have been fulfilled, the Corporaition sha,11 grant to the New Company a mining lease or leases substan;tially in the fonm and upon t•he ,terms and conditions set forth in the Second

Schedule hereto for a term not exceeding Ninety-nine (99) years from the date of issue of each lease (and hereinafter referred to as the sa·id lease) of ,the area or areas so selected and all minerals thereon and thereunder together with the ex­ clusive right to explore, develop, pro­ duce, extract and remove therefrom all minerals, 'bot·h meta•llic and non-metal­ Ji.c, upon and subject only to the terms and conditions of the said lease PRO­ VIDED tha,t the Company shall assign and set over to the New Company all its rights in this Agreement su•bject to its obligations herein corntained AIND ALSO all its plant, ma·chinery and equipment already in use or to be used on, in or in connection with ,the said area or areas so selected , to the new company AND PROV[DED ALSO that the new company will ac­ cept aJ,J the rights and obligations un­ d er this Agreement and the said lease and will agree to be ·bound by all the terms, covenants and conditions of this Agreement and the said lease as if the new company were a party to this Agreement.

T 1he Corporaition shall have the right to subscribe for shares of capital stock of such new company in an amount not exceeding 30% of the Lota! capital stock of such new com­ pany as and when issued and shall have the right to name at least two of its nominees as directors of such new company. The right to subscribe to such stock s·hall be exercised within thirty (30) days of the date of notice of offer to the Corporation. The said shares shaU be subject to no i-estric­ tion as to transfer.

Upon the grant ,to the new Company of such mining lease of the area so selected as pro­ vided herein •before the New Company shall pay to the Company an amount

HOUSE OF ASSEMBLY PROCEEDINGS 1205 in cash equal to the costs incurred by the Company in exploring and de­ veloping such selected area or areas up to the -time of such grant ~vhich amount shall be duly certified by a Chartered Accountanit approved by the Corporation and shall not, ,how­ ever, include any expenditures made on any other areas but &hall include aU direct expenses and a fair alloca­ tion oif general expenses applica,ble to the selected area. 13. All pa-rts of ·the reserved a,reas not selected lby t•he company in ac­ oordance with -the provisions of

Section Eleven (11) of this Agreement shall revert ·to the Corporation on January 1st, 1957 and be thenceforth free from the iterms of this Agreement. 14.

If the Company shall fail in any year to submit any repont or account in accordance with the provisions of Clau ses 6 or 8 of this Agreement or if any report or account does not con­ tain ~he data or to show any expendi­ t,tne requfr.ed by this Agre ement, the Corporation may notify the Company and the Company may wrthin one month from the da,te of the giving of such notice remedy ,the omission and submit the report or account as pro­ vided •by this Agreement to the reason­ able satisfaction of bhe Corporation but in default of sulbmission of such report or account within the sa-id period of one month after notice this Agreement and the excln.~ive prospect­ ing and exploration rights of the Com­ pany thereunder shall wholly cease and determine. 15.

The Company shall at any time during the currency of this Agree­ ment or wil'hin six -months after the termination thereof remove any or all buildings, plant, machinery, equip­ ment and all supP'lies, articles and things placed 1by it upon t·he reserved area or any part thereof. 16. Any notice required hereunder shall be deemed to be complete when made in writing and deposited in reg­ istered mail of ,the U. S. or Canada postage thereon prepaid, addressed : If to the Corporation Newfoundland and Labrador Cor­ poration, Limited, St. John's, Newfoundland.

And if to the Company Canadian Javelin Foundries and 1.1\fachine Works Limited, Domi,nion Square Building, Montreal, Quebec. or to such other address as the party addressed may have therefor specified by notice in ~vriting. 17. These presents shall inure to the benefit of and be binding upon the successors and assigns of ,t-he parties 1hereto and the Corporation agrees that the Company may assign to a party or parties of financial repute ap­ pmved rby the Corporation all or -any part of its right under this Agreement. 18. ,It is understood and agreed •.t•hal this Agreement and the proposed lease being the second

schedule to this agreement are made pursuant to the provisions of and in particular but without limiting the generality of the foregoing words to

Section 8 (e) , su•b­ sections (6) and (8) and by virtue of ,the powers and rights granted to the Corporation lby the Newfoundland and Labrador Corporation Act, 195,J and all amending Acts thereto, and ~he said agreement and lease shall be read and construed accordingly. If there is any conflict between the said agreement and lease and the provisions of the said Act the provisions of the said Act as amended at the date here­ of shall prevail.

1206 HOUSE OF ASSEMBLY PROCEEDINGS LN WIITNESS WHEREOF the Pa·rt­ ies ·hereto have executed and delivered these presents at the time and place and in the manner set forth in the preamMe ,hereof. NEWFOUNDLAND & LA•BRADOR CORPORA'TIION LIMITED Per (Sgd.) J. R. SMALLWOOD. Per (Sgd.) L£SIJ1'E R. CUR TIS. "the Corporation" The Common Seal of Newfoundland & ,Labrador Corporation Limited was ·hereunto affixed in the presence of: Ronald Turta (sgd .) CANADIAN JAVELIN FOUNDRIES AND !MACHI1NE WORKS LTD. iPer (Sgd.) JOHN C. DOYLE. Per (Sgd.) M. F. DEVONPORT. Secretary- Treasurer.

"the Company" The Common Seal of Canadian Javelin Foundries and Machine Works Limited was hereunto a£fixed in the presence of : (Sgd.) E . A. Glaeser. FIRST

SCHEDULE RESERVED AREA (

S) CANA!DIAN JAVEUIN AREA Commencing at a point where bhe line of Longitude 67° West intersects the Quebec - Newfoundland - Labrador •boundary (height of land) thence run­ ning and following ,the southern boundary of the ·Iron Ore Company of Canada North along Longitude 67° ·west -to its intersection with the southernmost part of Long !Lake; thence turning and running in a Northeasterly direction along the East shore of Long Lake; -thence turning and running along the East bank of the stream flowing in an Easterly di­ rection into Wa'bush Lake; bhence running a,Jong the Eastern shore of Walbush Lake in a general Northerly direction to Shabogamo Lake; thence running along the Eas•tern shore of Shabogamo Lake in general southeast­ erly and northeasterly direotions to its Easternmost part, thence turning and running along a line joining the Easternmost part of Sha,bogamo Lake and bhe ·Westernmost part of Ossok­ manuan Lake; thence turning and run­ ning in a Southeast by S'Du,therly di­ rection along the West lbank of Ossok­ manuan Lake, Panchia Lake and Ati­ konok River to its intersection with North Lat·itude 53° 00', thence turn­ ing and running West along nort 'h Latitude 53° 00' to ,its intersection with •West Longitude 65° 27' 30", thence turning and running Nor-th along West Longitude 65° 27' 30" to its intersection with North Latitude 53° 02', ,thence turning and ru,nning West along North Latitude 5,3° 02' to its intersection with the Quebec-rNew­ :foundland-Laibrador (height of land) boundary, thence follow.ing the height of •land in a Northern, Sou~herly and Westerly direction •to the pla·ce of oommencement.

Containing an area of 2300 square miles more or less. SECOND

SCHEDULE TIHIS INDENTURE made this day of Anno Domini One thousand nine hundred and fifty-three BETWEEN Newfoundla •nd and Lab­ rador Co11poration Limited, a statuto1·y corporation under the Ne,wfounaland and ·Labrador Corporation Act, 1951, having its head office at St. J<Yhn's in the Province of Newfoundland, Canada (hereinafter caJ.Jed "the Lessor") of the one ·part and a Company incor .porated under the Newfoundland Companies

HOUSE OF ASSEMBLY PROCEEDINGS 1207 Act (hereinafter called "the lessee") of the other part WITNESSETH as fol• lows: I. In consideration of the rents and royaJ!ties and of the convenants and conditions to be paid, observed, per­ formed and fulfiHed by the Lessee the Lessor HERE,BY DEMISES unto the Lessee vhe exclusive right to explore, investigate, develop, produce, extract, remove, process, make n1erchantabilc, store and sell all minerals ho.th metal­ ~ic and non°metaUic in or under ALL THAT piece or parcel of land or ALL THOSE pieces or parcels of la:nd as the case may be (hereinafter referred to as "the demised premises") described in the

Schedule to this lease and shown upon the plan hereto annexed and thereon delineated in Red which plan is to be taken as part hereof TO HOLD the same unto the Lessee for the full end and term of years to com­ mence and be computed from the date hereof YIELDING AND PAYING t·herefor on the day of in each and every year the ren ta! of dollars (being at the rate of ten cents per acre) less such sum as shall be ex­ pended by the Lessee a£ter the com­ mencement of this lease, on the pros­ pecting, exploration, development or mining of the demised premises or any part ~hereof. II.

The Lessee hereby covenants with the Lessor as follows : I. That the Lessee wiH during the said te1m pay to the Lessor the rent and the royalties hereby reserved at the times and in the manner provided by ,these presents clear of all deduc­ tions other than those provided by this lease. 2. (

a) That the Lessee shall pay to the Lessor on or before the thirty- (

b) first day of March in each calen­ dar year as royalty in respect of the minerals gotten in or from the demised premises during the preceding calendar year an amount equal to ten (10) per cent of the "net income' as herein defined, derived by ,the Lessee from its mining operations on and in the demised premis,es during the pre­ ceding calendar year, provided al­ ways that the net income shall in no year ·be less than six (6) cents per ton of 2,240 pounds of mer­ chantable ore mined and shipped by the lessee during tha-t year.

"Net Income" as used herein upon which the said royalty shall be based is agreed to mean the gross proceeds derived 1by the Lessee during any calendar year from •the sale 'by the Lessee of any and all metals or mineral products re­ ·covered and sold by the !Lessee from the leased premises aifter de­ ducting therefrom all costs of processing, handling, transporta­ tion and ·haulage from the prem­ ises to the consumer together with all costs both direct and indirect incurred by the 1 Lessee in the de­ velopment and operation of the leased premises and the recovery and sale of metals and minerals therefrom and a reasonable allow­ ance for depreciation but with no deduction for any taxes or depletion of any expenses of over­ head outside of the Province. (

c) All mines worked or operated by ,the Lessee on the premises de­ mised under this lease or on any area or areas demised by any other lease, issued ~o the Lessee under -the provisions of the said ag.reement dated ~he day of 19 made between the

1208 HOUSE OF ASSEMBLY PROCEEDINGS Lessor and the Canadian Javelin Foundries and Machine Works Limited comprising any part of the reserved areas described in the First

Schedule to 1the said Agreement, shall be deemed to be and be dealt with as one and the same and not as separate mines. 3. That, pursuant to the provisions of the said Agreement dated the day of 19 , made ·between the Lessor and Canadian Javelin Foundries and Machine Works Limited the Lessee shall continue the prospecting and ex.ploration of ,the resen•ed areas described in the First

Schedule to the said Ag,reement or some part thereof and shall continue to make ex.pendi­ tures on such prospecting aud explora­ bion in accordance with the provisions of the said Agreement until the total expend ,itures required by Clause 4 of the said Agreement have been made and a•ll expen<li,tures made in res.pect of prospecting and explor.ation on the area or areas comprised in vhis lease sha.Jl be deemed to be such expendi­ tures on ,t11e reserved areas and a com­ pliance with the provisions of the said Agreement. 4.

That the said Lessee will com­ mence mining operations as herein de­ fined of the minerals on the demised or some pat thereof within two years from the date of the iss,ue of -this lease and shall continue the same so long as thi.s lease remains in effect except during such period or periods of time as the said mining operations cannot reasonably be conducted at a profit by the Lessee. "Mining Operrutions" as used herein is agreed to mean the pro­ duction of broken ore delivered at the mouth of the shaft, tunnel or pit, ready .for transportation to ·the con­ centraitor.

Lessee shall perfoiim the work of minirtg · the minerals iin a skit- fu.l and workmanlike manner accord• ing ,to a,pproved mi-ning pracbice and will g.ive the Lessor all data or other informat-ion whatsoever as may be re­ quired and at the times and in Vhe manner, by the Crown Lands Act of Newfoundland. 5.

That the Lessee will permiit the Lessor by its agents al all reasonable times and at its own risk and ex,pense to enter upon and inspect and exam­ ine the mine or 1rnines and pTemises and every part thereoif for the purpose of ascertaining the condition thereof and ,the manner of working and man­ aging the same; provided, hDwever, that such inspection and examination shall in no way interfere with the wo1,king by the Lessee of the demised premises. 6.

Tha.t the Lessee will maint .ain throughout the 1term •hereby granted good and sufficient corner posts or mounds and boundary marks aGcord­ ing to the most approved practice for the t-ime being and in accordance with the provisions of the Crown Lands (Mines and Quarries) Act, 1951. 7. That except where i,t is necessary to employ ,teohnical experls the Lessee sha•ll at aH times in the working and pmduction of the minerals employ Newfoundland workmen i:f they an: availaible. MI. The Lessor her eby covenants wibh the Lessee a_s follows : 1.

That the Lessee paying ithe rents and royalties hereby reserved and ob­ serving and performing and fulfiUing vhe several covenants and ,conditions hetein contained and on the part of the Lessee to be paid -observed per­ formed and fulfiHed &hall peaceably hold and enjoy the mines premises, li!berties and powers hereby demised and granted during the said ,teI'm wi·th-

HOUSE OF ASSEMBLY PROCEEDINGS 1209 out any interruption by the Lessor or any person rightfully claiming under or in trust for it. 2.

That the Lessee shal,l have the full and fre-e right, liberty and license during the continuance of -this Lease by way of surface or subterranean op­ erations to work, m,ine, extract, re­ move, miH or process and seH for the benefit of the Les·see the minerals on i,t and under the demised ,premises and to do aH other acts and things as are necessary for ,the .purposes of mining or incidental thereto making compen­ sation for any damage or injury sus­ tained by rhe owner oif any surface rights or the holdc•r of any timber Hcense within the demised premises. 3.

That the Lessor 'hereby under · takes and agrees to grant to ,the Lessee from time to -time such surface lands owned or con~rolled 'by the Lessor as may ,be reasonably necessary in con­ nection with ·its mining operations, in­ oluding, without limi,ting the gener­ ali,ty of the .foregoing, such lands as may be ,reasonably necessary for rights of way for telegra:phs, telephones, e[.ec­ tric power transmission lines, rai'1ways, tramways, or roads, or sites for mills, works , ,factories, warehouses, townsites, wharves, ,piers, docks or other shipping faci.li.ties for the purposes of ,the e.f­ ficien t construction, maintenance or operation of any mining undertaking of the Lessee under this lease or for any other purposes incidental thereto, on such terms and conditions as to rental or otherwise as may from time to time and as to each particular re­ quest be mutually agreed upon as rea­ oonable and equitable between the parties hereto.

Any such gran,t may be by lease, license or as may be agreed. The undertaking and agree­ ment of the Lessor under this clause shall not have ,the effect of .preventing the Lessor a6ter prior consultation with the Lessee from granting a,t any lime to any person any surface lands which have not been granted or spec­ ifically agreed to •be granted to t·he Less,ee. IV. It is mutually agreed by and be­ t-ween the part·ies herNo as fol­ lows: 1.

That the Lessee may at any time determine the tena:ncy hereby created by giving to the Lessor six calendar months previous notice in writing to thiat effeot and thereupon provided the Lessee shall up to the time of such de­ te11mination pay the rents and royal­ ties on ,the part of the Lessee to be paid the pr-esent demise and everything herein contained shall cease and be void save in respect of any ren,ts and royalties which ought to 'be pa·id upon or before the determination of the tenancy. 2.

If at the determination of the tenancy there shal,l be minerals ·which have been produced, won, goNen and raised before .the determinating of this Lease and not removed from off the demised premises the Lessee shall have the 11ight to remove the same wi,thin a period of six ca'1enda,r months from the date of the determination of the tenancy paying thereon the royalties hereby reserved upon such removal and shall have full right of access to the demised premises •fior the above purposes. 3.

That it shall be lawful for tlic Lessee to remove all buildings plant machinery and al,[ ar,ticles and ithings of the Lessee in and upon or under the demised premises ,a,t any-time with­ in six months after the determination of ,the tenancy. Provided that the Lessor shall have the right by notice in writing to t;he Lessee within two months .from the date of termination

1210 HOUSE OF ASSEMBLY PROCEEDINGS of this lease to purchase all or any part of the said properties, articles and ,things at the then reasonable market price to :be determ1ned, ifaiHng agree­ ment thereon between the parties, by a11bitration in accordance wi,th the arbi,tration provisions of this lease. 4.

If any part of the rents or royal­ ties hereby reserved shall be unpaid for thirty days aifter ,becoming payable, or if any covenant or condit•ion herdn contained &hall not ·have been duly per­ formed or observed, then, and in such event, it shall be lawful for the Lessor, upon giving sixty days notice in wri,t­ ing to the Lessee that such rents or royalties are unpaid and demanding payment thereof, or that any covenant or condition has not been performed or observed, and ~f such payment is not made or such ,covenant or condi­ tion is not per.formed or observed with­ in such period, at any time thereafter upon the demised premises or any part of them in -the name of the whole renter and thereupon this demise shall absolutely determine but without pre­ judice to the right of action of the Lessor in respect of any brea,ch of the Lessee's covenants herein contain ed. 5.

Notwithstanding a•ny other pro­ visions of this lease, if the amount of any rents or royalties payable in any year under this •lea se or t•he per­ fopmance or observance of any coven­ ant or condition contained in this lease is in dispute between •the Lessor and the Lessee, such rents or royalties shall be deemed to be payable and such covenant or condition shall ,be deemed to be perfo11med or observed within sixty days of ,the date of the a:wa:rd of the arbitrators appoi'!11ted to decide such dispute in accordance with sub-Clause 7 of Clause 4 of this lease; Provided that the Lessee shall not be entitled to •Vhe benefiit of this clause unless it ·has paid •the amount which it considers ,is payable in respect of such rents or royal ~ies within -thirty days of the date upon which the said -rernts or royal,ties are payable and pro­ vided further that i,f the full amount of such rents or royalties payable un­ der the sa,id a,ward shall not •be paid wi.thin the said sixty days after the date of such award then the Lessor may exercise the rights conferred on it by the immediately preced,ing sub­ clause and rhe Lessor shall not be obliged to give the notice required Lhereby. 6.

Should the mining operati •ons of the Lessee cause wusitlence of or other injury ,to the surface land of the de­ mised premises, the Lessee shall not be Hable to pay any compensation there­ for to the Lessor. 7.

If any di~pute, question or diif­ ference shall arise at any time •between the Lessor and Lessee as ,to •any mat­ ter contained in •this lease or touching or concerning the provisions of this lease or the -construction, meaning, operation or effect th ereof or arising out of or in relatiun to this lease, then such dispute, question or difference shall be determined by ai,bitration in manner foLlowing: The Lessor shall appoint ·one arbitrator, the Lessee shall a.ppoint another, and the ~wo aribitra­ tors so appointed s-hal'l appoint a thi.rd or umpire, and in the event o,f the Lessor or the Lessee fa,j,Jing ,to appoirut an aPbitrator after seven clear clay's notice by the 'Lessor or the Lessee, as the ca,e may be, so to do, the Lessor or the Lessee may apply to the Supreme Court or a Judge thereo.f, who may after due notice >to the Lessor or the Lessee as t'he case may be, ap­ point such arlbit-rator, and the arbitra­ ·~ors so appointed by the Lessor or the Lessee and by the Court or Judge shall thereupon appoint a ·third arbitrator or umpire, and in the event of the

HOUSE OF ASSEMBLY PROCEEDINGS 1211 last mentioned an1bitrators failing to appoint a third aPbit-rator or umpire aJfter seven olear day's notice from the Lessor or ,the Lessee so to do, the Supreme Cornrt or a Judge thereof may, on the applica·tion of the Lessor or bhe Lessee, as the case may be, ap­ point such third ar1hi-trator ·or umpire, and the a,ward of such arbi,tra;tors or any of them shall be final and binding upon the parties. 8. The word "minerals" as used in this ,lease means any naturally occu,r­ ing inorganic substance but does not include quarry material!~, coal, oil, nat­ uml gas, or salt. 9.

The Lessee may at any time as­ sign this lease or any interest of the Lessee therein by written assignment upon the execution and delivery of which ,the ass•ignee shall become bound by the terms of this lease and the Les,ee shall be released thereby -to the exitent of the interest assigned. 10.

That should anything herein conf1ict wi,th the Newfoundland and Labrador Corporation ,Limited Act, 1951 as amended at the date hereo,f and/or the lease of the area demised hereby from the Grown to the Cor­ pomtion, -then, and in that event, the said Act and the said lease from the Crown shaU prevai'l and the Lessee covenants to abide by the terms oif ,the said Act and the said Crown Lease and to do all :things ,and take all steps necessary to keep :the Lessor's ,thle to the said aJrea good and ,free from all de:fects or defaults.

IN WITNESS WHEREOF the Seals of the parties hereto have here­ unto been subscri,bed and set the day and year first above wri,tten. The Common Seal of the Lessor has been hereunto aJff,ixed in the presence of : The Common Seal of the Lessee has been hereunto a;ffixed in the presence of : MEMORANDUM OF AGREE­ rMENT made in triplicate in the City and District of Montreal, Province of Quebec, Canada, t'his 3rd day o.f Sep­ tember, 1953.

BY AND BETWEEN NEWFOUNDLAND AND LABRA­ DOR CO.R,PORA'J1ION LIMITED A body politioc and coporate duly incorporated according to the laws of the Pm-vince of Newfoundland and having its head office and prin­ cipal place of business in the City of St.

John's in the Province of Newfoundland, Canada (hereinafter called "NALCO"), PARTY OF THE FrlRST PART AND CANA;DIAN JAVELIN FOUN­ DRIES AND MACHINE WORKS LIMrITED a body politic and cor­ porate dnly incorporated accortlring to the laws of Canada and having its head office and principal place of business in the City of Montreal in bhe Province of Quebec, Canada hercein acting fur and on 'behalf and as Agent of L. J. Forget and Com­ pany of !Montreal, Jack~on & Com­ pany of Montreal, Rittenhouse & Company of Toronto, R. S.

Weston & Company of Calgary an<l Edmon­ ton, Burleigh & Partners Limited of Vancouver, John Murdock of Chi­ ooutim:i and John C. Doyle of Mont­ real, being duly authorized for such purpose as it declares (the said Can­ adian Javelin Foundries and Mach­ ine Wmks Limited herein acting as such Agent being hereinafter called "CANADIAN JAVELIN AGENT")

1212 HOUSE OF ASSEMBLY PROCEEDINGS PAR TY OF THE SECOND PART AND CANADIAN JAVEUIN FOUND­ RIES AND iMAOHINE WORKS LI,MITED a ,body politic and cor­ porate duly incorporated according to the laws of Canada and hav,ing its head office and principal place of business in the City of Montreal in the Province Qlf Quebec Canada, herein acting on its own behalf (the said Canadian Javelin Foundries and Machine vVorks Limited herein act­ .ing on its o~vn behalf being herein called "CANAD-IAN JAVELIN PER­ SONAL") PAR TY OF THE THIRD PART WIT,NESSETH : THAT, for and in consideration of the sum of One dolla1 ($1.00) ,by each of the Parties hereto unto the others in hand paid whereof quit and other g-0od and valua ·ble consideration in­ cluding ~he covenants and agreements hereinafter contained, the Parties hereto, each for itself and not one for the other, covenant a1111 agree as follows: I.

Canadian Javelin Agent for and on behalf of each of the suibscribers hereinafter mentioned in this Para­ graph l hereby su•bscrilbes for the num­ ber of fully paid and n-0n-asses.sable shares of NALCO hereinaifter set op­ posite r..tch of such respective names and NALCO hereby undertakes lo allot, issue and sell to each of such su,bs-cribers respectively such shares of .NALCO as follows : NUMBER OF NAME SHARES L. J. Forget & Company ............. 500 Jacbon & Company .................... 500 Rittenhouse & Company ...... ........ 500 R. S.

Wes-ton & Company ............ 500 Burleigh & Partners 'Limited .... 500 John Murdock ................................ 1,200 John C. Doyle ............................ 1,200 for and in aonsideration of the sum of Five Dollars ($5.00) per share pay­ a1ble in cash upon deiivery of the relevant certificates representing such shares. 2.

Canad-ian Javelin Personal hereby subscri 'bes for Nine Hundred and Ninety-five Thousand, One Hundred (995,100) shares of NA:LCO (which shall include any and all shares of NALCO for ~vhich Canadian Javelin Personal has heretofore subscribed or agreed to subscribe) and NALCO hereby undertakes to allot, issue and sell such shares to Canadian Ja veI;n 1Personal for and in considern lion of the sum of Five Dollars ($5.00) pe~ share paya,hle as follows: (

a) Six Hundred and Sixty-th ·ree Thousand, Four Hundred Dollars (S663,400) in cash upon -t-he de­ livery of the relevant certi.fica-te or certificates •representing such S'hares; and (

b) T•w-enty Per cent (20%) of the balance of Four .Million, Three Hundred and T,welve Thousand, One Hundred Dollars ($4,312,100) on the 1st day of October in each of the years 1954, 1955, t95·6, 1957 and 1958. 3. NAIJCO shall, on or !before the 15th day of Septem1ber, 195•3, offer to aUo t and issue and to sell -to its share­ holders (then ,including Canadian Javelin Personal and those ffrms here­ in represented by Canadian Javelin Agent) Five Hundred Thousand (500,- 000) shares •oif NALCO for and in con­ sideration of the price of Five Dollars ($5.00) per share payable as follows : (

a) Six-ty-six and two-third Cents (65 2/3c.) per share upon delivery

HOUSE OF ASSEMBLY PROCEEDINGS 1213 of the relevant certificates repre­ senting such shares; and (

b) Twenty Percent (20%) of the •balance on the last day of Octoh~r ,in eaoh of the years 1954, 1955, 1956, 1957 and 1958. and Ca•nadian Javelin Personal under­ takes that upon such offer it will sub­ scribe for and agree to purchase all of t·he said shares for which it may be errtitled to subscribe under the provi­ sions of the Act of ,fnoorporation of the Company including all of the said shares with respect to which other shareholders of NALCO may refrain from exercising or may wajve or a'ban­ do-n the preemptive rights to wihich they may be entitled under the provi sions of the sa,id Act of 'lnoorporation. 4.

This Agreement shall, at the op­ tion of Canadian Javelin •Personal, be­ come null and void and the cheque hereinafter mentioned in Paragraph 5 •hereof shall lbe returned to Canadian Javelin Personal. (a) ,if the shares of NALCO to which ~eference is made in ,Paragraph l and in Paragraph 2 hereof are not allotted and issued and the relevant certificates therefor ten­ dered for delivery on or before the 15th day of September, 1953: or (

b) i,f the offer to whioh reference :is made in •Paragraph 3 hereof is not made on or before the 15th day of September 1953; or (

c) if, on or before the 15th day of September, 1953, such number oE nominees of Canadian Javelin Per­ sonal as shall constitute a majority of the Hoard of Directors of NALCO ar•e not elected as Direct­ .ors of NALCO. 5. NALCO acknowledges ·that, con­ currently with the ex,ecution of this Agreement, Canadian Javelin Personal has delivered to NALCO a cheque pay­ ahle to ,the order of NALCO in the amount of six hundred and sixty-three thousand and four hundred do!l?.rs ($663,400) representing the amount to b~come payable to NALCO under the provisions of sub-paragra.ph (

a) of paragraph 2 hereof and NALCO un­ d,ertakes to Teturn such cheque to Canadian Javelin Personal in •the event tha,t thi,, Agreement becomes null and void in accordance with the provisions of paragraph 4 hereof and in the meantime to refrain from cas·hing such chequ,e or presenting the same for payment. 6.

Canadian Javelin Personal sha.JJ cause all of its nominees who may be elected a3 Directors of NALCO to un­ dertake, prior to •their eleotion, to resign ofonhiwith in the event rhat Canadi •an JaveHn Persona.J fails to ma·ke t·he sub,c1'~ption to which rc,f,er­ ence is made in ,paragraph 3 hereof or in the event that, foHowing such sub­ scription, Canadian J aveJ.in Personal fails •to make the payment to which reference is made in sub-paragraph (

a) of paragraph 3 hereof. 7. In the event tha;t Canadian Jav elin Personal at any time fails W make any payment to be made under the provisions of sub ,paragraph (

b) of paragraph 2 hereof or sub-paragntphs (a) ,or (,

b) of ,paragraph 3 h,erf'c,f and such failure continues for a period of sixty (60) days from the daite when such payment becomes due and pay­ able Canadian Javelin Personal shall b e e ntitled to retain, as fuI!y paid and non-assessable, only that nuimh er of the shares of NALCO theretofore al­ lotted ,and issued in a,ccordance with the provisions of this Agreement which shall be equal . to the quotien ,t Qbtained

1214 HOUSE OF ASSEMBLY PROCEEDINGS by dividing the aggregate amount theretofore pa-id hereunder by Can­ adian ]'avelin Personal to NALCO on account of the purchase Frice of any shares of NALCO by Five Dollars ($5.00), and t,he balance of any shares of NALCO theretofore allotted and issued to Canad ian Javelin Per­ sonal hereunder shall