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PROFIT 0F $100,000 M TWO WS' WORK ON THE SALE OF BONDS Toronto Financier Negoti- ated Two Deals for Hon. Peter Smith ' 'AND SHARED WITH NO ONE Teertifyintr before the Public Ac- ' ounte Committee of the Legislature yesterday morning, Douglas TC. Rid- out of the firm of Ridout & Strick- land, insurance and fitttuteitrl brok- ere. Toronto, stated that he had made a profit of approximately $100,000 on his purchale of the 310,000,000 of Province of Ontario Treasury bills from the former Pro- vincial Treasurer, Hon. Peter Smith. lie cleared $50,000 in twenty-four hours and another 350.000 in the same length of time. , In discussing the mittundertitand- ings that led to the failure to pro- duce the bank book, Provincial Treasurer W. H. Price, K.C., point- ed out the necessity of ascertaining just what disposition was made of the profits on the Province of On- tario's loan. and mentioned that there was a Provincial election com- 1ng on about that time. The inter- ence is that Mr. Price wants to satis- fy himself that none of the $100,000 subsequently found its way into party campaign funds. Did Not Share His Profit. In the Ridout transaction the 810,000,000 of bonds were split into 1wo sections of $6,000,000 each, and Mr. Ridout told the committee that tn each of the two deals, involving overnight trips to New York and a few hours' negotiations at each end. his profit was, roughly, 850,000. Out of that amount. however, were to be deducted a. $1,200 fee which he paid for legal advice in connection with the deal, and the expenses of him- self and Assistant Provincial Treas- uer Charles Mathews on their two Journeys to New York to put through the transactions. Will Bring Bank Book. Through the failure-of his office to notify him of the call of the Pub- Jie, Accounts Committee representa- 1ive with 1 a, subpoena for the pro- duction of all documents, Mr. Ridout was not aware that the committee would ask for the production of his bank book covering the deposit and expenditure of that amount. He told the committee, however. that, al- though he did not have it with him. he was quite prepared to submit it for examination of the committee at its next mseting. V "You got $100,000 profit?" atked Mr. Price, who examined. "Yes." "Did you share it with anyone?" '"Gy." "Did it go into the firm. or was it personal proftt T' "It was my personal profit." "You law a chance to make money on the exchange rate as between Canadian and United States cur- rency?" . . "Yea." r, _ . "Did you auggeet to the Govern- ment or to the Provincial Treasurer of the day that the Province itself could make a profit on the ex- change?" "I did not." _ Mr. Ridout noted in his evidence that his profit was 1 per cent. on the transaction. Previously he had put through a $2,000,000 deal with the former Government at a profit of_about on9-ntmrter._of I per cent. In the absénoe of Mr." Ridout's bent lytoirr. Mr. 1.'rfe_ttttyptrte4 )0 per A ---_- Sat, relay. i Proposed Secretaryship Criti- , cized as Political Agency 3 for Government (made $20,000, $50,000 or $100,000. ', Mr. Ridout is to produce hi 5bank book at the next meeting c gtwhe committee on Monday evening land other witnesses will be th [ Hank of Montreal managers at hea ioffice and the branch where M. . Ridout has his personal account. Members asked as to the ttnan cial responsibility of Mr. Ridout it a transaction amounting to $10, 000,000, and Mr. Ridout admittec that had he fallen down on his par of the contract he could. not hav. been responsible to the extent o $10,000,000 or any considerable par of it. Provincial Treasurer Pric declared that Mr. Ridout was takin, no risk whatever in what Mr. Do herty had stated was somewhat 0 a gamble, exclaiming that the onl risk he ran was as to whether h Cross-examined by Hon. Manning Doherty, Mr. Itidom, stated that the Province got every cent that was coming to it under tho deal as ar- ranged with the Province. Am the negotiations were with Hon. Peter Smith, the former Provincial Treats. urer, the Assistant Treasurer, Charles Mathews, having nothing to do wit? it excepting to carry out the ar- rangements as made. NORTHERN MEMBERS NOT HIGHLY ELATED OVER KEEPER'S JOB .- "pun wmcn he operated. Both bills were payable in Canadian funds in New York and repayable in Canada in American funds. In New York they were taken up by the National City Bank. The exchange rates were I 23-32 on the first $5,000,0tyty and 1 25-32 on the second $5,000,000. The bank rate quoted at about that time, noted the Provincial Treasurer, was around 2 per cent. All Negotiations With Smith. get his recollection 1tTrririiriiiici-c. tion of the $100,000 after it had been transferred from New York to Toronto to Mr. Ridout's personal account, but the witness protested that it was impossible for him to remember items of withdrawal in his bank account a year ago. He was quite willing to produce the hook. Some of the money had been invested, he said, and no doubt some was still on deposit. Mr. Ridout went through the whole details of netrotiationa for the henetit of the committee, and gave the exchange and discount rates upon which he operated. Both bills Were Dal/able in fPsaneaAt, h»: . OPPOSITION IS CRlTICAL Legislation providing podntment of a Legislat for Northern and Nortl tario was given secom the House yesterday a opposition to the meas1 Legislation providing for the ap- podntment of a Legislative seeretarr for Northern and Northwestern on, tario was given second reading in the House yesterday afternoon, tho opposition to the measure not being, as keen as anticipated. Malool Lang (Liberal, Cochrane) said tha while he wished that the appoint ment had taken the form of anoth Cabinet representative for th North, he, nevertheless, thou that the under-secretary could soma good. Petor Keenan (La Kenora) and Hon. Beniah Bowm (Progressive, Manitoulin) could no need for the bill; Hon. Manni' nnhertv branded it as a politi no need for the bill; non. ma Doherty branded it as a pa move, while Liberal Leadex clash. critieized the Governmel asking the Legislaune to va an appointment made so tat aa last July. k , arch will Ln went through the of negotiations for the t committefe, and gave al Leader S Government ', mm to valid