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When he questioned the legality of some $600 of travelling expenses paid to Mr. Keefer. Mr. Ferguson said that the larger amount was in respect of Mr. Keefer"; trip to tWashington, where he had ably rep- :resented Ontario on the Chicago iwaterway diversion issue. Mr. Sin- clair said that it that information Ihad boon set out beside the item {he would have notquestioneld it, al- though still doubting its legality. Like Sam Clarke (Liberal. West Northumberland; he twitted Mr. Keefer on his Christmas festivities with the Danes. Members Dealing With Government. But Mr. Sinclair reviewed the items in public accounts opposite the names of George w. Etecletrtone, Ltd., and Marshall, Ecclestone Company, which totalléd some $6,000 or 387,000. and quoted the incorporation istatistica ot tho George IV. Eccles- itone Company to show that of the ',total capitalization of 400 shares the member for Muskokn held 396. In 'the Marshall, Ecclestone concern Mr. _Ecelesrtone was also President and hold 159 of the 205 shares. He sub. -mitted that, although technically i, Mr. Eccleatone was inn correct posi- tion as a shareholder. still the origi- nal exemption was intended to apply only to minority shareholders. Hon. Mr. Lyons's Interests. While dismissing the case of Whip William Ireland, West Hastings. in the matter of the sale of some $20 worth of "biscuits and cheese" to a Government party as something entirely inadvertent, Mr. Sinclair passed severe censure on Hon. James Lyons, Minister of Lands and Forests and George IV. Ecclestone, Con- servative member for Muskoka, for business dealings of concerns con- trolled by these members with the Government. when he questioned reason for the delayed explanations of the last two gentlemen, in view of Mr. Ireland's prompt statement on the floor of the House, Mr. Fer- guson said: "Of course it is obvious. wholly on city streets. although they were to pay the gas tax for the up- keep of outside Provincial high- ways. He went on to quote statistics showing that the total revenues from motor vehicles with the new taxa- tion would exceed by nearly $2,000,- 000 the whole cost ot the highways, maintenance and interest on capital- ization. He thought the Hydro expendi- tures had not been properly item- ized. and went on to criticize the position of the Secretary for Northern Ontario. P. H. Keefer. K.C.. M.P.P.. whose position and remunero ation, he claimed, were for the pur- pose of looking after Conservative party interests in the North country. Mr. Sinclair proceeded. however. to question the ethics of the matter and Mr. Ferguson retorted that if he continued he might arouse pro- tests from his own side of the House. Mr. Sinclair said that the case of Z. Mageau (Liberal, Sturgeon Falls) had been so small as to be worthy of no consideration. and Mr. Mageau afterward said that his sale to the Government had been that of lum- ber, upon which the Government would otherwise have had to pay $10 or more 'per thousand feet to get the material toAthe deeired point. A shareholder of a. joint stock com- pany is not liable. Mr. Ireland's case was entirely different." Dealing with the case of Hon. Mr. Lyons's company, the Lyons Fuel and Supply Company of Sault Ste. Marie, Mr. Sinclair made humorous reference to the Minister holding one share. although he _was_ President. some 363 shares being held by An- gelina, Lyons. his wife. When he made reference to the holding of shares in trust by George w. Good- win, Mr. Lyons trot Up to explain that these were shares originally held by Mrs. Goodwin. bequeathed to her children. Still of Juvenile age, held hy Mr. Goodwin in trust. Premier 1Nrtruson--My honorable friend in hard to satisfy. One hon- orable gentleman holds too many shares and the other apparently holds too few to suit him. Wee! oselas, _ The incident concluded with a controversy as to whether the Gov- ernment had unduly delayed t1nftwet'- ing a question which the Liberals had put on the order paper respect} ing the business with the Lyons firm.' Vlr. Sinclair asserted that. although he question might not have been on he order paper until Friday last. the Government knew of it before. and [the Minister's "penitence" was tardy. Mr. Raney on "Promiem." Enumerating some of the "good Spots" in Government activities, and praising Provincial Treasurer Price's Budget as "the best presentation of the affairs of the Province, in point of clarity, for 20 years," Mr. Baney, in opening his speech. said he would like to mention other things the Gov- ernment had attempted. One was the attempt last year to eliminate the Progressive group as a separate Op- position; another was the Judicature Act. and then there was the at- tempted elimination of the Ontario Temperance Act. - Mr. Sinclair proceeded to twit the Minister upon the heralded expan- sion of his company and expressed regrets that, in view of the ruling of the Prime Minister on the Bubject--- that henceforth Government mem- bers should refrain even from ac- ceptins Government buMnetgtr---the Lyons concern was to secure less business. At this moment, said Mr. Haney. the House was awaiting the bill that was to be the sea! at once of the Prime Minister's broken promises and of his defiance of the will of the people. Fourthly. Mr. Raney declared. the Government had attempted and achieved the reintroduction of party patronage in its most extreme and absolute form. Until the appoint- ment of Mr.'Ramsden there had never been a. Liberal member of the Hydro-Electric Power Commission, even though that body was supposed to be non-partisan. but within " hours ot the present Government as- suming omce the Prime Minister had demanded Mr. Ramsden's resig- nation, on the plea that the Govern- ment wanted to reorganize the Com- mission. Mr. Ramsden had been dismissed out of hand when his resig- nation war not forthcoming, and after 20 months the vacancy was still unfilled. Thus one member. Mr. Cooke, was carrying out in moat partisan fashion; the administration of a. $250,000,000 plant. So far as the ridings of the 34 members of parties opposite the Government was concerned. the patronage was in the hands of the defeated Conservative candidates, in whom the electors pvoted no confidence. [Would Put Tammany to Shame. Then there was a. system of party discipline in the Government ranks that would put Tammany Hall itself to shame, Mr. Haney observed. The mind of the party was made up by the Prime Minister, and his tol- lowers were compelled to vote as they were told under pain and penalties of party disciplined "patronage, the party Whip, in- demnitiea and the liquor trade-- these are the elements, the good tra, dlt'lonal Tory elements. upon which the Government is relying at this moment to maintain its grip on place and power in this Province," Mr. Haney declared. Turning to the Inquiry of the Pub- lic Accounts Committee and the conviction of the ex-Provinolal Treasurer. Mr. Raney twitted the Government for its lack of criticism of Mr. McGarry for a much more (Migrant transaction with the Home Bank in 1919 than that to which Peter Smith pleaded guilty. He re- ferred to the sale of $4,000,000 of Ontario bonds to the Home Bank in September. 1918, at 94.48. which in turn was sold by the bank. with- out even taking delivery from Mr. McGarry, to a firm of Toronto brokers at 96.85. a. profit ot 2.37 per cent., or 894.800. The Toronto brokers turned the bonds over a. few days later at 98.12. or a profit of 1.27 per cent., equalling $54,800. This transaction was, Mr. Haney declared. a c-eh th f The former Attorttoy-oenera1 then imoved the following amendment. (which was the signal for an out- ihurst from tho Prime Minister to ethe effect that it had been arranged ithut the Budget debate would close "last night. but it could not do so by reason of a. surprise amendment sprung by Mr. Haney: "This House condemns the transactions between the Treas- ury Department of the Govern- ment and tho Home. Bank In September. 1919. whereby the Government sold the $4,000,000 issue of Provincial bonds to the bank at the price of 94.48, thereby enabling the bank to make a profit of 894.800. under drenmstances involving corre- sponding heavy loss to the Prov- a scandal tor montns m nmuers' offices and on the streefs of Toronto. apart altogether of the graft features of it, yet it was passed up by the Chairman of the Public Ac- counts Committee and the present Provincial Treasurer "without bat- ting an eyelash." Forced to withdraw Remark. In the course of a crotiftre of words between the Provincial Mg:- urer, w. Ii. Price, who defended the work of the committee. and Mr. Raney, the latter observed that he knew "how keen the Provincial Treasurer Was to cover up the trail that led to the people who got the $42,000 from the Home Bank before the election of 1919." This remark was resented strongly hy Mr. Price, and the Speaker insisted that Mr. Haney withdraw the remark. which he eventually did. In further comment on the report of the Public Accounts Commit- tee, Mr. Haney told that, a few days after the Drury Government came into office. Hon. Peter Smith. the new Provincial Treasurer, had said to Mr. Irrury that there were sua- picious circumstances connected with the sale of $4,000,000 of bonds to tho Home Bank by the former Gov- ernment. Mr. Drury asked Mr. Smith to look into the matter, and to speak to him again about it. Mr. Smith asked his deputy to bring him the department file in the matter of this loan, and had been told there was no tlle; the same reply he. re- ceived when he asked for the Home Bank file. Smith and McGarrr Conferred. Some days later Mr. McGurry sent to Mr. Smith the original letter of the Home Bank, offering to buy the 34.000.000 bond issue. and a. copy of his reply. which, he said. he had! taken inadvertently from the door partment. An interview between; Smith and McGarry followed, after! which the former reported to Mr.', Drury that the matter apparently was regular. Mr. Haney mentioned this episode to show the knowledge of the Drury Government in the matter. l. The present Provincial Treasurer. Mr. Raney went on, thought there was no tollkee'per prior to Mr. Smith. and had conducted tho pro- ceedings before the Public' Accounts Committee accordingly. Of course. it was no part of the original pro- gram of the Government or of the Provincial Treasurer to investigate Mr. MoGarn's administration. he said. Mr. McGarry's denial before the committee had only served to deepen the mystery. Mr. Raney sug- gested that it was the duty ot Mr. Finlayson and Mr. Price to explain to the House and to the public why they ignored certain scandalous transactions in their report. Moves Surprise Amendment. "And this House reg-rots the failure of the Standing Commit- toe on Public Accounts of Iaat your to make any reference to this tramwcuon In its report to the House. "And this House further re.- Ms the {allure of the Standing Committee to make any ado- quota Investigation of the al- leged payments of the bank on or before the twenty-third of September. 1919, of the sums asmauns $42,400 ti-wa-i'