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Y ***** _ (By Our Own Reporter.) February 15, 1988. The Speaker took the chair at three o'clock RATLWAY ACT. Mr. BRONSON presented a bill to amend the Railway Act of Ontario, which was read * the first time. Hon. A. M. ROSS said he supposed the mo-- tion was called forth by t he unfortunate lock-- ing--up of the funds of the Township of Ben-- tinck in a bank which had recently failed. Me pointed out that there were several modes of investing county funds, and a very large latitudo was allowed¢o tiie Councils to enable them to make safe and permanent investments. He believed, notwithstanding the hon. gentle-- man's statement, that Municipal Councils had availed themselves to a large extent of the proviso allowing Municipal Councils to invest money on first mortgages on real estate. The difficauity of looking after a sinking fund might be obviated by having the debentures payable in yearly instalments, and this plan he be-- lieved would save both expense and trouble. He did not think it necessary for the Govern-- ment to establish a sort of savings bank for the investment of municipal funds. The motion was carried. p THE LAW OF MORTGAGES. Mr. FRENCH, in moving the second read-- ing of the bill to amend the law respecting mortgages, said he had every confidence that the bill was a good one, and would receive the approval of the House, _ It is well known, he said, that if I were to borrow money from you, Mr. Speaker, on my promissory note---- the _ loan _ companies. It -- was _ well known that these companies had executive of-- ficers of great experience to manage the invest-- ment of their funds. But Municipel Council-- lors were elected from year to year and neces-- sarily could not have the same experience to yuide thein in investing. -- Therefore, as a rule, they did not take advantage of this means of investing. He thought it would be woll should the Government of the Province agree toreceive the funds collected for the repayment of these loans, paying interest at 5 per cent. This would overcome the difficulties which at pre-- sont existed. 'The information he songht by this motion, he belioved, would furnish strong arguments in favor of the suggestion he made. ait. opcaker, on iny promissory note---- Mr. MEREDITH--You would never pay it. (Laughter.) » Mr. FRENCH--If that note was overdue, I would have the privilege of paying it at any time with interest for the time overdue. -- But if I gave you better _ security by a mortgage of my farm--if 1 had one-- aund the loan were three days overdue I would Mr. MONK presented a bill to amend the Assessment Act, which was read the first time. MUNICIPAL SINKING FUNDS. Mr. BLYTH moved for a return of copies of ail Orders in Council with respect to the in-- vestment of sinking funds of municipalities under the provisions of the Municipal Act. MHe said that a few years ago, when the craze for railways was at its height, many of the muni-- cipalities granted large bouuses. 'Theso bonuses were secured in too many cases with little re-- gard for the interests of the people, but with regard racher for the interests of the specula-- tors who were concerned in the schemes. The sinking funds on these loans were coming in and it was difficult for the municipalities to tind means of investing the money safely and profitably. An Order in Council gave author-- ity to place the money in banks, and a good deal of money so invested by municipalities had been lost. _ By a change in the law power was given to invest in mortgages. But in imaking these investments the municipali-- ties had to come in contaect with: UPPER CANADA COLLEGE. Hon. G. W. ROSS (Middlesex) presented a bill respeéting the endowment property of University College and Upper Canada College, which was read the first time. PRIVATE BILLS. Respecting the Town of Port Arthur and the municipalities of Shuniah and Neebing-- Mr., Conmee. * The following private bills were presented and read the first time :-- Respecting the 'Wown of Parkdale--Mr Leys (Toronto) _ Sixth Parliament, Second J Session. ARIO LEGISLAPURE, ASSESSMENT ACT. be obliged to give you notice of in Manitoba, as he understocd it, they had simply «abolished the notice required under the comimon law of England, leaving the Court to say what would be fair notice. Mr. MEREDITH--No. Hon. Mr. MOWAT--I understand that to be the effect. Such a measure would not se-- cure what the hon. gentleman desired, for it left it so that it might be decided that any. thing less than six months would be a fair no-- tice. If this bill were reforred to a special commiittee doubtless that committee would frame a clause fixing a time tomeet the general opinion. Perhaps even a shorter .pcrmd than three months might be fair in the Cases mentioned by _ the member for Mamilton (Mr. Gibson). He believed it quite it was mo riould be he comps y note 1 se oi lat i to give to giv the co: unfair ht bri 'ower i not ; dll > gh bo passed Mr. MEREDITH said he was unable to agree with the changes proposed. 1t was de-- @irable that there should be no complexity in these laws. Not one in five hundred mort [gagors knew that any suchlawasthe Courts had sustained was applicable to his contract, and it was most urreasonable that the borrower ould be held down to a rule of that kind. e comparison with the case of the promis-- y note he believed to be applicable. In the ofi landlord and tenant, while the tenant to give six months' notice, the landlord to give six months' notice of intention to the senant out. In the case of mortgage, unfairuess is that, while the mortgagee bring procecdiogs at any time, the ower had to give notice, so that the rights et reciprocal. _ While he agreed that 1 should go to a special committee, ht the matter skould be discussed in He suggeosted that legislation should be passed here in the terms of the Dominion Act with regard to mortgages, so as to leave no chance for a wealthy company to hold over the head of a borvower the threat of appealing to the Courts contesting the constitationality of_the existing Dominion law. Hon. Mr. MOWAT agreed that in practice the law worked harshly, and it did not seem fair that a mortgagee desiring to pay of a mortgage should fie compelled to give six months' notice or pay interest for that time. Mr. GIBSON (Hamilton) agreed that the un-- written law which now held good had operated harshly in many instances, and that there should 'be some express declaration of the rights of the parties in cases of overdue mort. gages. But the House ought not, in curing one grievance, to make a new grievance on the other side. He believed there was a midway course open which would be substantiaily just to both parties. If the mortgagor came a few days late, or a few weeks, or even a few months late to pay off a mortgage it was only renlgna.ble that he should be aillowed to clear it off on _ paying interest up to the day of payment. But where the morigagee had refrained from insisting upon a re--valuation and a new -- mortgage, which would be a great expeuse to the mort-- gagor, and thelatterhadgoneon payinginterost, it was enly reasonable that the mortgageeshould have some notice hbefore being compelled to take back his money at a time when, perhaps, he could find no other investment for it. Where interest had been paid after the mort-- gage came due, he held that three months' notice should be given,. 'The comparison with the promissory note was hardly apposite-- that of the case of landlord and tenant would be better. He would like to see the bill sent to a special committee, lLbut would not like to geo it pass without moditication, and such as he had suggested. | O o On O meO npon fhe common law of Eng. land as set forth in decisions given in the last century,. In Manitoba they had a law in the same general direction as he now proposed,. When he introduced this bill he dic. not know that the question had ever come before the Courts. He found, however, that there was & case which had gone through a preliminary Court and came up for decision by the High Conrt, and it was there decided that in this matter the common law of England did apply to Canada. If he ever had any qualms of conscience about anything in his business life they arose from the fact that he had once re-- presented a loan company. _ Formerly the companies offered to make loans at twenty years, the circulars in which the money was offered ztating that the mortgages could be paid off any time on reasonable terms. But subsequently those who sought to pay them off found that the " reasonable terms " offered were such as made it impossible for the mort. gagees to pay thein off. 'There ought to be some simple machinery by which these ""rea. sonable terms" could be arranged between the parties, °_ _ L OOR EATY ioi Ufi ul dinilnecri 1 and, as you can see, must aften work great in-- justice. Continuing, he pointed out that the law, as it was now assumed by mortgagees to be, was bused upon the common law of Eng-- land as set forth in decisions given in the last century, In Manitoba they had a law in th« six months or