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Taking the House completely by surprise, just prior to the divisions on the Budget resolu- tion and amendment, Premier Ferguson held aloft a document which, he said, was an agree- ment entered into on Aug. 31, 1922, between J. C. Ross, former editor of The ITarmers' Sun, and J. E. MacKay, and Aemilius Jarvis Jr., for the payment of $15,000 cash for the purchase of $15,000 of prev ferred and $2,500 of common stock. The Premier had the stock certificates, and also $4,800 of City of Saskatoon 5 per cent. bonds, which "Mr. Jarvis Jr. "said he was holding for Peter Smith . . . and he has turned them over to the Crown because he has no 1n- terest in them." Whose. Money Wag It? Where did the money come from? demanded Mr. Ferguson. The Gov- ernment proposed to know more about it. Prior to the time mention- ed, the Morrison group had defeat- ed the "Drury-Doherty-Raney" group in a contest for the control of The Farmers' Sun, and Mr. Ross had been superseded as editor. Mr. {Raney had been the legal adviser nin Treasury matters, and now he "gust take his responsibility for em. SAYS PETER SMITH PUT SUM OF $1S,000 INTO OSHA WA PAPER Sensation in Legislature When Premier Ferguson Declares That Former Minister, Through Jarvis Firm, Invested Large Sum in Oshawa Rd. former, Under Editorship of J. C. Ross . BRINGS IN RANEY AS TO PAPER DEAL House Defeats Progressive Leader', Amendment on Vote of " to 25, Then Carries Budget on Same Division - Hectic C on- clusion of Debate A slashing offensive by Pre- mier Ferguson closed Ontario's Budget debate. In it he linked up Peter Smith, former Provin- cial Treasurer, with the pur- chase, through Aemilius Jarvis Jr., of approximately a half-in- terest in The Oshawa Re- former in 1922, and cast the onus of further explanation upon the members of the late Drury Government. The Legis- lature then defeated the Budget amendment of Hon. W. E. Raney, Progressive Leader, by a vote of 75 to 25. Premier Drops Bomb. N33 rtesela,i _ Mr. Doherty's prompt denial of any knowledge of a. (-ontest for the control of The Sun was-interrupted by the question of Leslie W. Oke. U.1'f.(). member for East Lambton. and former Drury Government sup- porter, as to whether he was not aware that there had been at one time negotiations in a Drury Gov- ernment caucus toward getting con- trol of The Sun. Later Mr. Oke, amid thunderous Conservative ap- plause, interjected the remark that action had been taken at that cau- cus. Mr. Doherty said he. had no knowledge ot it. Says Tttey Deserted Smith. In the most unrelenting fashion, the Premier went after the former Drury Government members. par- ticularly Mr. Haney, and accused them of deserting Peter Smith in his hour ot need, although. said Mr. Ferguson. Smith was apparently pr?- pared to no to the extent of commit- ting crime to keep in power the Drury Government, tottering to a tall with "rottennetts." Subsequent to his address Mr. Ferguson explained that The Osha- -__ A--.\- AAA.' J'CIB'AI'Un- ---." wa. R'efnrmer nowspa per stock, docu- ments and Saskatchewan bonds had come to him through counsel for Mr. Jarvis and Government counsel. The Government. he admitted, was nnw in the odd position or being part owner of the Oshawa news- paper. No Surprises tn Vote. In the defeat of the Raney amend- t',',"Tti,TwA,if,i' criticized the failure of the Public Accounts Committee of last year to make reference in its report to the 1919 Home Bank loan. the dealings of the committee with that loan, and the $42,000 of un- traced commissions ---- the Govern- ment had the support. of the Labor members, Messrs. K. K. Homuth, Peter Heenan, J. F. (Julian, and also of L. w. Oke. U.F.0. member tor Lambton. There were no surprise votes. The Progressives behind Mr. Raney. and the Liberals behind w. N. Sinclair, Liberal Leader, expressed the Liberal party's convictions that the Government ought to go ahead with further investigations into the 1919 Home Bank loan transactions. questions Rancy's Actions. E. N. Sinclair, K.C., voted solidly for the Haney amendment, and every Conservative voted against it, along with Messrs. Homuth, Human. Cal- ian and Oke. Messrs. Sweet and Carty, absentees. were paired. The Budget resolution was then carried on the same division. Mr. Sinclair. who was greeted with warm applause as he rose to speak. said that the first clause in the Haney amendment condemned the transactions which took place in 1919. But 1919 was a long time ago as years went, and since that time In an able address, which, how- ever, became overshadowed by the lays: 'ry1ruuions of the day, W. E. Mr. Ranoy had occupied the position of Attorney-General. It was a peculiar thing to him. proceeded the speaker. that Mr. Raney did not take up this matter during the first year he was in office. If the transaction had been an improvident .tranaac- tion. the 'best time to have discussed it was when the transaction was new. Then Mr. Raney took no part in the proceedings of the Public Att- counts Committee, Mr. Sinclair said. The party to which he belonged was not overblessed with legal talent, and so the duty had been the more cast upon him to take part. Not having done so, it seemed a pecu- liar thing to come to the House now with the amendment. . Did Not Like "Look" of Things. "The ex-Attorney-General made a statement startling to me the other day when he said that early in the regime of the previous Government the then Treasurer said to the then m can 2 iio-1 l Premier that he did -_-.--. l looks of that 'tfirldJ,td',',f lyinke the I Ft . ' eanlntt I the loan ot 1919: said Mr. Sinclair. , That was all the more reason why Mr. Raney should have made in- veatigatlon at the time. Mr. Sin- elair declared that had he known of this angle of the situation a year ago he certainly would have put a motion on the order paper to can ex-Premier Drury before the com- mittee. "The Liberal party has been a party enideavorink to investigate this matter and has held little or no as:- statance from the party from which the amendment comes," declared the Liberal Leader. After saying that several Conservative speakers on the amendment discussed matters not germane to the amendment at all, Mr. Sittelair added that after listen- mg to those speeches it "oocurren to me the Government was endeavor- mg to put up a big noiw about a lot , of other matters and tried to koop away from the issue in front of the 1byture." Queer "tr'rm.pisteneesi. Continuing. Mr. Sinclair said he did not find a motion on the minutes of the Puhlir. Amounts moved by any memhor of the Government ask- true for the production of anybody in regard to this matter, nor did he find a similar motion moved by any member of the Prortrrsnsives. That was rather a remarkable situation, in view of the way members across the aisle now spoke of this matter. But he himsolt had filed motions calling for the appearance hotnre the Committoo of Messrs. McGarry, Smith, Matthews. L. C. Mason and; others, said the Liberal Leader: Matthows and Mason took a trip about that time; Matthews went into; a front door and the police forgot) there was a hack door, "and my wit- ness was on the train for parts un- known. I don't know it Mason is available yet." "Playing Politics." Mr. Clarkson appeared before thel committee, but the Provincial Treatr. urer coolly took charge and conduct-! ed the examination. proceeded Mr.' Sinclair. The Liberal party In 'tyi/ House was the only one that made! any effort to get testimony which) would show to the people the evl-i dence in relation to tht 1919 loam; "Had the Public Aocounts Com- mittee last year spent as much, time in this transaction as it did in the tranam-tions relating to Harris. Rid- out and Curry the vhanqps are the whole business would have some out, but the Government of the day was so anxious to make political capital and 'get' somebody that this other transaction was neglected. "So I say we are Justified in con- demning the Government in that re- gard, and say to it that its op- portunity was lost due to its zeal in following other trails which did not affect its political friends." Negative Before Positive. Coming to the Whittaker evidence before the Public Accounts Com- mittee of last year and the decla- ration in rebuttal taken trom M. J. Haney. Mr. Sinclair said that Mr. Whdttaker had been his witness, but Mr. Clarkson was called before Mr. Whittaker was called. "i never knew of a case where you called the negative before you called the posi- tive. That point alone would for- ever condemn the Conservative party for the manner in which it conduct- ed the investigation." Added to Haney's declaration was a mention of McGarry's name. But MeGarry't iname had never been mentioned in the evidence of Whittaker, "and the marvel of marvels to this day is why McGarry's name should hang been in Haney's declatywptt.", . '" Mr. Sinolair said he felt he could vote for the amendment because it criticized the attitude of the ma.- jority of the committee on trpeeial items connected with the loan of 1919. People Not tiattstted. "The people are not satisiied with where this nutter rests at the present time," he went on. "This is a matter which is left in a bad position, and the Liberal party at the close of last non-inn had exhausted all the intor- éééaisi; i, ad -exhéusted :2 to i.nyestiddtirthi; had little or no as- e party trom which "Munon, meaning said Mr. Sinclair-. more reason why I have made in.. time. Mr. Sin- had he known of situation a year