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I His Insistence on Hydro: Loans Not Being Diverted _ Bears Fruit LOAN PLAN IS CHANGED After a lengthy struggle, extend-- ing over many --sessions, H. H. Dewart, K.C., Liberal member for Southwest Toronto, has won a vic-- tory, in one respect, in his protest regarding the manner of using money raised by loans. Mr. Dewart has argued, in season and out of season, that moneys raised under authority of the Hydro--electric Act, B.S.O. Chapter 39, Section 14, should hnot pe used for any other purpose. He even went so far this year as to cause a division of the House on the Budget vyote concerning this very matter. # During committee consideration| yesterday afternoon of Hon. Peter Smith's Bill for raising money on the credit of the Consolidated Revenue Fund, the amount to be raised being $40,000,000, Mr. Smith said the amount named in the bill was so large because the Govern-- ment had intended this year not to '"'invade" the Hydro--electric Act, Chapter 39, except for the purpose of raising Hydro funds. The total capital expenditure for the coming year, he said, would not exceed the amount in the bill, ex-- cept for Hydro expenditure. Later, he said, that he doubted if" there would be any borrowing for Hydro purposes for the coming year. The Provincial Treasurer explain-- ed that of the $40,000,000 to be bor-- rowed, $18,000,000 would be used for the refunding of loans, and $10,-- 000,000 for the refunding of suc-- cession duty free bonds. Highway construction would take $13,000,000. The Premier supplemented this information by saying that outside of the $28,000,000 required for re-- funding purposes, as explained by the Provincial Treasurer, the other total mentioned in general terms in this act would be voted on in the House, item by item, upon the pre-- sentation of the estimates. The Provincial Treasurer said the department anticipated buying up a great. many of the succession duty free bonds. He said the policy of| the department had been to wait for offers and then to accept these offers if satisfactory.® He did not think it was wise to say to the House what had been the maximum payment for these bonds. Nobody was authorized to buy them up for the Government. Three million dollars of the loan would be used for bonds already held in the name of the Treasurer. He explained that these bonds rose sharply in price when a wealthy man, anticipating death, sought to obtain them--in such instances they rose as high as 35 points. Mr. Dewart asked the Premier what power _the Hydro--electric' Power Commission has to borrow moneys for Hydro--electric enter-- prises that were not guaranteed by the Government. The Premier re-- plted that the commission had no borrowing powers at <all, except through the Government.