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"'There is a third phase of the subject where the Lyons Fuel and Supply Company has been doing business with lumber companies and mining organizations over & long period of years. I think no one would suggest that these business relations should be severed. They began before the Minister occupied any public position and will doubt-- less continue on a strictly business basis whether he bhe Minister or not. Yet Mr. Lyons, keenly sensitive of his personal honor, feels that in view of active criticism, intended to injure both him and the Govern-- ment, he should no longer continue in a position that makes these ac-- tivities possible." Lyons Gives His Reasons. "Secondly--Then there is the case of sales to independent contractors who have secured their contracts by public tender, and are ordinarily entitled to buy supplies where they wish. There could be nothing in-- herently or legally improper where the Lyons Fuel and Supply Com-- pany sells under such circumstances, Yet there is the opportunity for those Gesiring to direct criticism at the Minister or the Government which casts suspicion on such trans-- actions, and it is better in the public interest that such sales should not take place. As the Prime Minister concluded, Mr. Lyons rose and said: "As a result of the statement that has just been made to the House by the Prime Minister, I feel that the honorable members will grant me their attention for a few iminutes that I may take advantage of the opportunity to outline my reasons for my part in the action which has been taken. Sales to Contractors. effort and close attention 1 dadevei-- oped, from a very small beginning, a large wholesale and retail fuel and builders' supply business, with well-- established connections throughout the -- Province of Ontario -- and throughout Canada. The bulk of this business is carried on with business concerns in Northern On-- tario. While my family and myself have a controlling interest in the company, other parties have a sub-- stantial interest. "Following the general election of 192%, the Prime Minister invited me to take a seat in his Cabinet as Min-- ister of Lands and Forests, an honor which I appreciated and accepted. I did so believing that, with my knowledge of, and experience in, Northern Ontario, I would be able to contribute very materially to the development of that very important part of the Province. . my entire time, with the result that the control--and management of the Lyons Fuel and Supply Company, Limited, a jJoint stock company, was entrusted to my son and other paid members of the organization. "After many years effort and close attent oped, from a very sma "Honorable members will -- recall that, prior to my election as member for Sault Ste. Marie, 1 had had no Governmental or Parliamentary ex«-- perience, although 1 had taken, lo= cally, at the Soo, an active part in political, benevolent and other ac-- tivitles of a public nature there. After entering the Government, the exacting administrative demands of my department absorbed practically 6 personal I devel-- v esd a y, Mi+ch 4nd on the faithful administration of his colleagues, and the exercise of \| their energies, efforts and abilities. \Cunningly Devised Questions, "When in due course the Prime Minister conférred with me as to what had transpired, without hesi-- tancy I emphasized the necessity of continuing those long--established business relations, and to sell to such organizations as it had always done unless the business were to be wound up or ultimately go to ruin.> Further-- more, I frankly told him that if I had to choose between the company abandoning its activities or resigning as -- Minister, it was -- incvitable that I should resign. I could not af-- ford to throw to the winds the work of a lifetime merely to gratify an ambition to assist in public affairs as a member of the Governmoent. "Reluctantly, therefore, but with-- out complaint, I place my resigna-- tion at tha disposal of the Prime Minister, for I am determined that no suspicion shall rest upon the Government from my business con-- nections or from the administration of my department, or from the con-- trol of matters peculiarly within my knwledge. "Since the beginning of the present session it must have been apparent to honorable members of this ll'uoii who regd with care the proseceding@gs' of the HMHouse that efforts wrre being | made by cunningly devised questions ; to create suspiclon against me, undt to embarrass the Government by im<| plying publicly that the Lyons Fucl] and Supply Company, Limited, hzuif corruptly sold to those who had con-{ tracts with the Government, particu--| larly with my department, with firms| and persons doing business as Gov--i ernment licensees, or with indirec Government -- association. I have' never for a moment entertained the idea that such Gdealings would be challenged. If I had I would never have entered the Government. I was satisfied I was within my legal rights. The business of the Lyons Fuel and Supply Company, Limited, could i#fot continue to exist if it were cut ofi from all its well--established business connections. Its main activities have been. and are, with the lumbering,. mining, and pulp and paper, and contracting organizations of the North. "Honorable members with public experience will realize that, in the administration of a department, it is impossible for one member to have an intimate personal knowledge of the details of routine in other de-- partments; neither time nor oppor»-- tunity would permit. Each Minis-- ter knows generally the routine of affairs of his department, and relies '"When, last year, as a result of: a question by an honorable member of this House, the attention of thel House was directed to the allegation. that the Lyons Fuel and Supply' Company, Limited. had supplied| certain goods to the Province, not--| withstanding that these purchases were made by resident engineers, and others of the Northern Develop--' ment Branch on a competitive basis, and were not dealt with by me in the department, I readily saw the: impropriety of the incident and ac--, quiesced in the position taken by the: Prime Minister when he intimated| that members of the House who had| substantial holdings in jJoint stock companies should avoid doing busi-- ness with the Province. | Supplied Goods to rrovince. He proceeded to state that it was difficult to justify in the minds of the public the fact that the com-- pany was doing business with the Government without casting sus-- picion on some one. "As a matter of fact," he said, "having regard for the modern methods of doing hbust-- ness on a competitive bas'is, 1 know there is no opportunity for a Min-- ister, even if he so desired, to use his infiuence in promoting the busl-- ness of his concern. 1f the memhers of the House knew the facts, as no doubt they will in time, they will realize that since I becams Minister of Lands and Forests my business has suffered very substantially. I would hate to tell them the exact position as the result of last year's operations, but perhaps before the Public Ac. counts Committee is through they| will know."' I "Without complaint., I admit that It is sound from a public point of view, and necessary to the proper administration of a department of Government, that nothing should be done or permitted that would justify any one stating that any fnancial benefits unduly acerued during the carrying out of a public trust, "As Minister, my -- relations with the honorable membere have been most pleasant, and I entreat none to let personal regard stay his sctions to secure information. I was a servy. ant of the State, and the representa. tives of the people have a right-- vyes. a duty--to scrutinize my stewardship. My regret is that my ing will be square, '"'The occurrence cannot,) h from my personal point of vie with the acceptance of my r tion. I desire the Public Ac Committee to investigate. a vestigate fully, every transacti Lyons Fuel and Supply Cor Limited, had with these firras sons that could on public g be challenged. I will nlace disnoasal of the committee the of the company, and the meim] the staff, and naturally T sp ready to be examined on oa specting each transaction. ; faith and confidence that ever, vesires Investigation. V found to be itil 1923, when -- firm, able to Atlkntic to the a catalogue of issued in that f of these re-- . to the House the members. | ate that it wasi the minds of} that the com--! iness with the casting sus-- "As a matter rélations with rs have been itreat none to y his actions I was a serv. 1e reépresenta. ive a right-- 'rutinize -- my t is that my v¥ experience, y -- that somethin experic ~-- nowever, view, stop Y resigna. in 1913, o begin-- 3. when whi om-- and n ne