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. Amendment M oved by ' Liberal Leader i C ondemning Government 3 "Apathy, Indifference i and Neglect" ls Turned l, Down in Legislature by § Vote of 85 lo 20 STORM Y SCENES DURING DEBATE A ttorney-C eneral A ceases Ottawa of "Sharp Trick" and Wants to Know if F e d e r a t Authorities Cave Mr. Sinclair hr. formation for H is Speech at W atertoo Price Defends Record I On Brokerage. Problem"; Tories W in on Division" Liberal Leader Smeiair's want-of- confidCncc amendment, condemning ' "the apathy, m- (53%": difference and '.,F.:F(: ;_"'i"f;:: M. 1leglect ot the Ei::,.":.:)):).':."..,,.) _ 13,?i'd. Government to 'ff..),',:':),),',:)..),:.',:, j if? regulate and COP.-, Ei'iijdij'.if:iijii ri.irsi:.-..i.:/iii?::, trol stock trans- - h "$13." actions in t h e: g q., $1 j'Zivj"'5':'§5'E5I§;.;a':e';§2§.'i32f Province, and mi _i."i! B' 'L/Kitt.),)::::':."..)':':)..'::':..),," q refusal to Insti-l (j,')"),. Lt. 29,1135j?;.i;;:?~::"' tute a trearehingl, "i1fii),i..:.1 ' 3 2-45. :ji-';g_-§:,'ii;i- inquiry by way: 'ij'iji:jj.i..i..i:r, ii'ili.gssiii"..t':jiji" . ot Royal CORN 'iiji.oifi:iijy, g5:"I' - mission into the.' iih'i "", . whole system ot, a " speculation cout:-, tenanced by and Colonel Price. carried on upon the mining stock exchanges and in many brokerage houses in Ontario,' got a territie trimming from the On- tario Legislature yesterday afternoon. By a vote of 85 to 20, the House chucked the amendment overboard, and on the same division carried the Ad- dress in reply to the Speech from the Throne. thus omeia11y terminating the first phase ot the present House's ze- tivities, and clearing the decks for the presentation ot the Monteith Budget on Tuesday next. Defense 01 Colonel Price. Indirectly, the vote proved a personal) triumph for Attorney-General txraitam) H. Price. who, in winding up the de-i bate. vigorously defended the sdmim: istration of his department in connec- tion with the recent brokerage house, "etean-up"; upheld the Security Frauds. Prevention Act. fashioned in hie: regime, as a work to be proud ot; inti- mated the likelihood of further eta-1y. prosecutions against offending stockl manipulators. and openly sought from) the House Its approval not only of what. his department had done in the past, but of what it might attempt, along' similar lines, in the future. I Colonel Price had the debqte all to) himself yesterday, and he was in tight-a ing trim throughout. renewing with Mr/ Sinclair the cross-fire battle which " enlivened Leuiers' Day prooeedinge: - .L' _ ya' - in; _ 'dlt 7 . -y. ,f.Sh _ Nh' _ >'::.; - <... *-f ' V L V, a "" - ' ' ",1 , ' q at . , E soiek '. - ' . iv "T. " '4 , - v T " 'r.., ".?iM " tr, tt " T _oAd. : _ V ' ' Itetti B. RF. ' . - _ 'tgil&c' ' w - f:. , earlier in the session; and charting Ot- tawa. with " sharp trick," in that Hon. William D. Euler, Minister at National iiovtniuc, had "omitted" to give him cer- tain information regarding the broker- ago house situation in Toronto until AHOY it had come into the possession of Mr. Sinclair. Source of Information. Both Colonol Price and Premier Per.. guson tried. Lo no avail, to extract from Mr. Sinclair and from S. C. Tweed tlerral. North Waterloo) the source of the information which the Liberal Loadrr nard as the basis of his pre- nnnouncod "brokerage bombshell" speech in Waterloo on Jan. 21. Mr. Sinclair twice denied that he had got the information from Ottawa, and when the Government turned the ques- tion to Mr. Tweed the Liberal Leader cut in with: "You don't have to answer that." The division w lines, with Hon. his four Progressi In his op:ming remaxks on the brok- erage question colonel Price stated that, approaching the situation with the idea or solving it, and not with the idea of making political capital out of it, he woula rcvi-w the stock-sale conditions existing in Ontario under several Gov- crnmoms. and tho attempts to legislate in the mrtCy. H2 roe-1:31:11 the Cobalt boom at the timp, ct tho Wirimcy Administration. He x-scallrd the Cobalt boom at the time cf the Wirimcy Administration. In these days than had been attempts to prevent iraudulcm deals. With a passing reference to the Hcarst Administration in the war days, he continued to speak of the Drury Administration and the "blue-sky law" proposals. Every session of those tour years, he said, Atorney-General Raney brought up the problem of the preven- tion of fraud, "talked of what should he done, but did nothing." The situation was aggravated by a market collapse in 1920. Then, Colonel Price continued, in the last moments ot the last session of the Drury Govern- mcnt, the "blue-sky law" was put on the statute books. But it was never proclaimed. Then, in the ensuing Ferguson Gov- ernment. Colonel Price went on, At- torney-General Nickle was anxious to do something to deal with the situ- ation. And so an act was passed re- garding the registration of brokers, it was put on the statute books, too, but never proclaimed. For. Colonel Price explained, though it had merit, it was in a period when there was a struggle between the Dominion and certain of the Provinces relative to legislative au- thority. So it was thought. he stated, that it would not be advisable to brin the Registrati-n Act into force t'iflh it was definitely established that some- thing beneficial would evolve. No Action Taken. Then, at the Interprovincial Confer- ence in 1026, he observed, there was discussion of the situation, and again at the 1927 conference. But, said he, though the Provinces made representa- tion to the Federal authorities. no ac- tion was taken. "So." he declared, "it remained for us to do something, and we did it." Thunderous applause from the Conser- vative benches followed these words. Smiling, the Attorney-General went on to refer to the Government's war on "tty-by-night" salesmen. He empha- sized that in their action the authorities had to move carefully. . £25,241}. , as on straight party Harry C. Nixon and The Government. he said, had "felt iits way" with the act. Public opinion ihad to be got behind it. The first move ghad been to weed out the brokers who lwere "no good." Since the inception {of the act. 1,047 brokers had been regis- ;tered; 495 non-brokers registered and 15.998 salesmen. There had been 32 re- ;{usals of licenses to brokers, 12 to non- !brokers and 43 to salesmen. Ninety-one 'brokers' licenses. 25 non-brokers' licenses iand 98 salesmen's licenses had been lcancelled. brain for Subordinates. Want to get these fellows y )u'vc gm. lo get after them." Public Opinion. Colonel Price named a number ot speeitie prosecutions as instances in which his department and the Security Frauds Prevention Act had rid the Province of objectionable "fly-by-night" stock salesmen and operators. The de- partment had had to wage a year and half tlght, he said, before it could get the Janis brothers in jail. There were more. than 200 cases in which the de- partment had "gone after" the high- pressure fellow. In some the offenders were deported from the country. In others the department had been un- able to get their man. But invariably the swindle ring had been broken up. V At some length Coloncl Price defend- ed the speech he had made before the Canadian Life Insurance Officers' As- sociation in 1927--t speech which Lib- eral Leader Sinclair had criticized at the opening of the debate as inconsist- ent with the current attitude of the Attorney-General. Colonel Price con- tended that what he had endeavored to do, in his address to the insurance men, was to create public opinion in favor of some form of blue sky legisla- tion. Moreover, he believed, his speech had got the insurance men behind his department in the framing of the Se- curity Frauds law ot 1928. "You cannot do the necessary things m these cases," argued the Attorney. General, while the Conservative benches banged loudly, "and be asleep on the job, as has been said of me. If you Registration, said the Attorney-Gen- eral, was not an easy job. He had been unable to give the time to it, and so he had detailed the work to Col. Walter W. Denison of the Provincial Seeretary's Department, and to Arthur Rogers, solicitor to his own department. "These men," he said, "have been carrying on. and have, as you must agree. been doing wonderful work." Col. Price referred to the work of his department in cleaning up the "tipstrw sheets": and in having agreed to deal with the type of real estate transac- tions revealed in the Hubbs and Hubbs: case. It had been no fault of the de-) partment that Hubbs had sold spurious! stock for years; no fault of the depart-[ ment that a Listowel lawyer of long'; standing had laid himself open to a! charge; no fault, either, that Brown,; the missing Stratford man, had been; allowed to carry on as he had beeni doing. ; "Sieruaps," stud he, "the time will never come that some people won't invest money foolishly." The Attorney-General stated that what had actuated the "audits" amend- ments to the act which had been passed at the 1929 session of the Legislature, was the realization of the Government--- from the Heron investigation-that some steps had to be taken to insure finan- cial stability of the brokerage houses. Heron, it was revealed, had been bank- rupt for six yetrrs--iing along with- out proper audit or restrictions, and with no one on the exchange suspecting that anything was wrong." Financial Responsibility. "We felt," said Colonel Price, "until we got financial responsibility firmly established we could get nowhere." Since them said he, Mr. Clarkson had assured him that it had taken from six to eight months of "the hardest kind ot work, even with the various brokers' auditors reporting to him, to get the at.. fairs of the brokers on the exchanges in proper shape. "When the history of our dealing with the exchanges Is