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[compensation] pensation provided for by the Act. While strictly speaking the words of the Act may cover the disaster of December sixth the proprietors of the industrial establishments of the province quite naturally contend that they should not be made to suffer by so unusual an event. your Commissioners are inclined to accede to this view. On practical grounds it would appear to be inadvisable that those who become dependents by reason of the disaster should be dealt with by different boards and on different bases. The only practicable course would be the assumption by Your Excellency's Government of the care of these dependents in the manner already suggested.

16. Your Commissioners are of the opinion that there is no other source from which additional funds necessary may be expected other than a further appropriation by your Excellency's Government or by Your Excellency's Government in association with those of the Allied Governments now at war. The disaster while perhaps in a sense attributable to negligence in navigation - a subject which is now pending before the courts of the province of Nova Scotia and upon which no comment can properly be made - was in the broader view an emergency of the war arising from the use of the harbour of Halifax by the Allied Governments for war purposes. It would appear therefore to your Commissioners that all direct and material losses should be met out of the public funds.

The moneys voluntarily and so generously contributed for the immediate relief of the sufferers have all been expended or pledged for the purposes intended by the donors - immediate emergent relief.

In view however of the considerations already alluded to which appear to be widely accepted by public opinion as sound and quite irrespective of the view of those who have suffered in the affected districts it appears to your Commissioners that these direct material losses should be the subject of compensation by the Government. Appeals for further voluntary aid could not be expected in the circumstances to be received by the public with favour.

17. Pending action by Your Excellency in Council upon this report Your Commissioners cannot advise as to the legislation, federal or provincial, which may be necessary for the effectual performance of their duties; and any further report as to other matters upon which it may be advisable to seek direction would appear to your Commissioners at the present moment to be premature.

Your Commissioners at this time beg to recommend to Your Excellency in Council:
(1) That the Government announce without delay or authorize your Commissioners to announce that the care of the dependents of those killed and disabled by the disaster and reasonable compensation to the injured will be undertaken in accordance with the suggestions set forth in the twelfth paragraph of this Report.

(2) That it should further be announced that the direct and substantial material losses in amounts to be determined by your Commissioners or under their direction in view of all the attendant circumstances will be provided for in due course and that sufficient public appropriation will be made accordingly.

(3) That in view of the fact that in time of war the subjects of the state should be prepared to assume a reasonable share of the burdens common to all provision should not be made for indirect and consequential damages except in cases where extreme hardship would arise from the disallowance of such damages. That in these circumstances such damages be allowed upon sufficient cause shown and upon special report of your Commissioners.

(4) That your Commissioners be authorized to enter into negotiations with the fire insurance underwriters with a view to the fair and equitable settlement of the claims against them on the basis of contribution to the general relief fund or otherwise as your Commissioners may seem fair and just in all the circumstances.

(5) That further reports in respect to the matters referred to your Commissioners be for the present deferred.

All of which your Commissioners submit for Your Excellency's consideration.

T. S. Rogers, Chairman
W. B. Wallace
F. L. Fowke

Dated at Halifax, N.S.,
March 1, 1918