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Sale of beer and wine in hotels under proper regulations was advocat-- ed in the Legislature last evening by Hon. James Lyons, Mayor of Sault Ste. Marie and Minister of Lands and Forests in the first Ferguson Adminis-- tration, in the Legislature last eve-- ning, bringing to a climax the reports current for the last few weeks that this topic would be brought up before the end of the present session. Mr. Lyons. speaking from Govern-- ment benches, emphasized the fac: that he was merely giving his personal views, and declared that a revenue of $3,000,000 could be obtained in this manner. In his series of thrusts at errors of Governments, he declared that party politics was largely the cause of the present state of affairs, that it was the duty of every Government to bal-- ance its Budget, and refrain from putting current expenditures in capi-- tal accounts; that the gold industries should be taxed and could well bear heavier taxes; that the people of Northern Ontario could not accept the cut in allowances for roads; and that Governments could save 30 per cent. of the cost of direct relief by abolish-- ing the voucher system and buying the reliet supplies direct from the wholesaler. Lyons Favors Sale Of Beer and Wine In Ontario's Hotels He took strong issue with several Government policies, and while not directly blaming the Government for its errors of commission and omission, made several suggestions as to how further economies could be effected. Calls for Balanced Budgets. SAYS VIEW IS PERSONAL: Revenue of $3,000,000 Ob-- tainable, Sault Mayor Tells Legislature Economies Demanded as Speaker Thrusts at Gov-- ernment Policies Taking up the question of beer and wine, Mr. Lyons said: "It is my view that we should consider ex-- tending the sale of beer and light wines to hotels and restaurants un-- der proper regulations. The sale of beer and wine in such places would climinate most of the present costly overhead and expense, and would enable those who wish to drink it to obtain it at a reasonable price and much below the cost. This will not only, in my opinion, strengthen the temperance cause in the Province of Ontario, but it will increase our rev-- enue by three or four million dol-- lars," No Snares for Government. "In the remarks I propose making on this matter, I want it clearly un-- derstood that I am not trying to set any snares for the Government, nor am I trying to skin any skunks for the Opposition. I will put my tem-- perance record, cither by act, word or practice, alongside that of any other person in ths Province. I am a teetotaler, and always supported and voted to advance the temperance cause; I have always voted and sup-- ported the candidate and the party that stood for the greatest measure of temperance." -- _ "But it became quite apparent that as larger areas came under local option and finally all Ontario came under the O.T.A., there immediately sprang up a thriving industry of illicit manufacture and sale of all kinds of liquors, and the cure was far worse than the disease, Says Revenue Was Lost. "During the eight years Ontario was under the O.T.A. the Province lost in revenue approximately $10,000,000 a year, or $80,000,000. The vast majority of people that represented and sup-- ported the O.T.A. from 1916 to 1925 nave become converted to the sale of alcoholic beverages under the Liquo® Control Act, and the great bulk «f temperance sentiment in Ontario to-- day is not only behind the act, but is strongly in support of a more eco-- nomical and practical control of the sale. £ "One of the abuses that have de-- veloped, due particuiarly to the high cost of beer and wine as it sold, is the manufacture of beer, under the home--brew permit. In 1931 there were issued in Canada 193,218 permits and in Ontario 146,890 permits. Iu Quebec there were 8,393 of these per-- mits issued in 1931. In 1930 there was 9,735,000 pounds of malt sold for this use, enough to produce 18,000,000 gallons of beer. On a basis of the per-- mits issued in Ontario, which was 76 "During the same year the output of the regular breweries in Ontario and passing through was 11,500,000 gallons. From 1929 to 1932, when the output under the home--brew permits was increased, the production of beer manufactured in the Dominion dur-- ing the same period Gdropped from approximately 66,000,000 gallons in 1929 to approximately 52,000,000 in 1932. Favors Proper Supervision. "If the people are determined to drink beer, is it not well that it should be produced under proper supervision and under proper condi-- tions and the revenue from this pro-- duction given to the Province and Dominion?" Mr. Lyons asked, "After experimenting with the so-- called temperance in the United States, where they spent upward of $200,000,000 a year in trying to en-- force the law, they have now turned to legal manufacture and sale. It is my view that we should consider the sale of beer and wine in hotels and restaurants, where desired, outside of local option areas. Licensing Proposals. "Close to $50,000,000 is the net rev-- enue from the L.C.A. since its incep-- tion. Those who contribute toward this profit are not complaining and those who benefit from the expendi-- ture of this enormous revenue with-- out contributing to it are not com-- plaining and are satisfied." _ "We should charge a substantial license for every standard hotel, with un additional charge for each room in connection with the hotel," said the speaker. "We should place a substantial charge on every gallon of beer manufactured and sold in this way. We should continue the present sa'le of full--strength beer and wine through the liquor stores, as at pres-- ent. 'Those who are granted a license to sell beer and wine should under-- stand that it must be sold at a rea-- sonable price. . Tss fls "I believe that all beer and wine sold in hotels and restaurants should be the product of Ontario breweries and wineries, and I believe that at least 25 per cent. of the revenue from hotels and restaurants licensed should be handed back to the municipality where the licenses are issued, I be-- lieve that this offers the largest field of obtaining revenue from non--essen-- tials or luxuries that there is in Ontario, and that it would be en-- dorsed by a large majority of the people of this Province," said Mr. Lyons, concluding this phase of his address. per cent. of the total, there would be 13,680,000 gallons of beer under home-- brew permits in 1930." ve i March 3: Tax on Gold Industries. In reference to his proposal to tax the gold industries, Mr. Lyons pointed out that the total gold production for 1933 was $45,000,000, and since 1900 it had been approximately $400,-- 000,000. The total dividends paid to the different companies were now in excess of $135,000,000. And the indus-- try was in a unique position, as it had all its product bought by the Gov= ernment, which paid for it in United States funds. The total in premiums paid by the Dominion Government in this way in 1932 was approximately $8,000,000, of which $6,000,000 was paid to gold pro-- ducers in Northern Ontario, he stated. "And I wventure to say that of this amount 95 per cent. went to six com-- panies." Industry Flourishing. "I have not any desire to hurt any industry, but these are unusual times and this industry is flourishing. One company last year paid dividends at 240 per cent. of the par yalue of the stock, and this is before it received the premium from the Dominion Gov-- ernment. A few years ago this House passed a tax on incorporated com-- panies, and scores of them had to pay this tax although they did not even earn it. "I am ncot dictating to the Minis-- ter of Mines,'" replied Mr. Lyons. He added that there were some who did not play the game and this was true of all parties, but he was endeavoring to play the game. "All persons and all parties should make some sacrifice, even if it was a political one," he maintained. "I wonder if the gold industry should get special consideration. The loyalty of the shareholders would not be affected." "Did you discuss it with Mr. Mc-- Crea?" asked Mr. Nixon. "I am merely expressing my own opinion in respect to public financ-- ing, but there are two things which cannot be excused," said Mr. Lyons. "One is failure to balance a budget and the other is the transferring of current expenditures to capital ac-- counts. It is a policy of passing the buck on to posterity. and we are pay-- *'Throughout Ontario thousands of properties have been sacrificed and thousands of homes wrecked and em-- ployment has been lost and thousands are getting sustenance from public funds. Regardless of conditions in other countries. we in Canada have to face--the facts as they exist today and deal accordingly. It is not the fault of our institutions, but is the result of playing party politics, and not adhering to business principles." High Cost of Policy. He mentioned Russia, Italy and Spain to support his theory that people were so overburdened by taxation that they revolted against it, and in doing In so far as redistribution was con-- cerned, Mr. Lyons pointed out that it would be th> Conservative mem-- bers who would make the greatest sacrifice in bringing this economical reform about, and, touching for a moment on Hydro, he remarked: "The Hydro still is one of cur im-- portant problems. But I am from a part of the Province that thinks little and cares little about the Hydro. Up in my district we have the cheapest power in Ontario, and furthermore the company pays $50,000 a year in taxes to Sault Stc. Marie." Not Time for Politics. '"Now is not the time for party politics, if indeed there was ever a time for them," he declared. "Are party politics as they have been played a good thing for the Province? I have come to the conclusion that they are not. My conviction is that party politics have played a large part so perhaps chose something worse. In England a similar trend had been stemmed by the leaders of the parties getting together, and the manner in which the coalition Government was returned was evidence that the people did not want party politics, Mr. Lyons said. & in bringing us to the present condi-- tion."