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PROVINCE AGREES TO JINDEMNIFY HYDRO FOR ABITIBI DEAL $5,000,000 TO COMPLETE Ihe Government has agrecd to indemnifv the Ontario Hydro Com-- mission in connection with taking ever the Abitibi power development from the Ontario Power Service Cor-- poration, but the development has not yet been completed, and the ex-- ront of the liability of the Govern-- ment under its indemnity has not yet been ascertained, Hon. J. R. Cooke, Chairman of the Hydro Com-- mission,. informed the Legislature yvesterday. He stated that it was es-- timated thai it would take $5,000,000 0 complete the project and to pay liabilities, and, of this amount, it is expocted that approximately $2.600,-- Series of Queries Are Answered in House by Cooke tisement offered to acquire the bonds of the Ontario Power Service Cor-- poration by exchanging for the same twenty--year debentures of the Com-- mission guaranteed by the Province of Ontario on the basis of $90 of such debentures for each $100 of bonds of the Ontario Power Service Corporation, such debentures to be dated Oct. 1, 1932, and to bear in-- terest at 3 1--2 per cent. up to Oct. 1, 1937; at 4 per cent. up to Oct. 1, 1942; and thereafter until maturity at 5 per cent., and payable both as ' to vrincipal and interest in the law-- | ful money of Canada and redeemable 'at the option of the Commission at 800 is available in the hands of the Montreal 'Trust Company, trustee tinder the mortgage securing the bonds of the company. C Mr. Cooke read a lengthy list of prswers to questions put by D. J. 'Tayilor (Progressive, Grey North'; Dr. G. A. McQuibban (Liberal, Wel-- lington Northeast), and F. W. Elliott tLiberal, Bmice North). Mr. Taylor's question had been standing on the order paper since Fes. 20. Commission Made Offer. Mr. Taylor's first question was as to what date the Government made thso offer to take over the Abitibi power development from the Ontario Power Service Corporation. The reply «as as follows: "The Government has never offered to take over the Abitibi power development, but, on or about Aug. 5, the Hydro--Electric Power Commission of Ontario, at the | request of the Government, made a pubiis offer to the holders of the| bonds of the Ontario Power Service| Carocration to acquire such tonds in exchange for debentures of the Com--| mission, guaranteed by the Province of Ontario." | The Progressive member's next| qauestion was as to what the t.ermsi of the offer were. The answer was: | "The Hydro--Electric Power Com-- missicon of Ontario by public adver-- Nearly All Have Accepted. "Has the offer been definitely ac-- cepted and the deal completed?" was Mr. Taylor's next question. "Over 97 per cent. of the bondholders of the Ontario Power Service Corporation hnave accepted the offer," was the reply. ")'Who,t is the total obligation incur-- red by the Province in this matter?" was the next question. "The Gov-- ernment has agreed to indemnify the Commission in connection with the transaction. The development has not yet been completed, and the ex-- tent of the liability of the Govern-- ment under its indemnity has not yet been ascertained," Mr. Cooke re-- March i6 . _wWhat were the names and addresses of the bondholders and the amounts each held of the bonds of the On-- tario Power Service Corporation in-- volved in this deal?" "The Govern-- ment is not aware of the names and addresses of the bondholders and the amounts held by them, respectively," was the reply. Dr. McQuibban's first question was as to with whom the Hydro--Electric Commission had contracts for deliv-- ery of power to be developed by the Ontario Power Service Corporation prior to the acquisition by the Prov-- ince of the Abitibi power site. "The Province has not yet acquired the Abitibi power Cevelopment. At the time when the Hydro Commission of-- fered to acquire the bonds of the Ontario Power Service Corporation the Commission had contracts for de-- livery of power to the Intornational Nick=*l Company, the Abitibi Power and Paper Company, and the Abi-- tibl Electric Development Company," Mr. Cooke answered. uEo OAURERECCCS 3 TR . \"Have these liabilities been paid by \ the Government?" was the next question. "No." was the reply. t Amount to Complete It. \ _ _"What amount of money has been . or is required to complete the project and for which the Government is re-- sponsible?" was another question put by Dr. McQuibban. "It is estimated; that $5,000,000 will be sufficient to | complete the project, and to pay lia-- | bilities, and of this amount approxi-- mately $2,600,000 is available in the hards of the Montreal Trust Com-- pany, trustees under the bond mort-- gage securing the bonds of the com--| pany," was the reply. _ Mr. Eliott's question was to find out if the sinking fund reserves of| the Hydro--Electric Power Commis-- sion included the $20,000,000 equity of the municipalities. "The municipal sinking fund equity shown in the] Commission's annual report of 1931, , amounting to $20,103,275, represents | the accumulation of the sinking fund | collections by the Commission -- from the municipalities operating under cost contracts--collected as part of the cost of power, which with im-- provement at 4 per cent. per annum amounts to _the above--mentioned | figure," was the answer. sopit C 4o launkete avk af the The amounts so contracted for de-- livery and the prices stipulated were as follows, the Minister stated: Inter-- national Nickel Company of Canada, 16,000 h.p. at 4.25 mills per kilowatt hour, with a minimum of $18 per h.p. per year, daliverable at Sudbury; Abitibi Power and Paper Company, 10,000 h.p. at $22 per h.p., deliver-- able at Sudbury; Abitibi Electric Development Company. 35,000 h.p. at $12 per hp., doliverable at Abitibi Canyon. Powoer Service Liabilitics. Mr. Taylor's final tioncd reg"? coliections it plied to the | districts and 9150 the sir the cost of 1 OA CR ATBTTCCCC pany, and the Windsor A.ssocxablon;." it wWas ex 19