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The Premier's acceptance of the McCaughrin challenge had been un-- officially predicted to come at the latter part of the week. Observers had predicted that the day's session would be short and unimportant and the routine prior to the Premier's motion had borne this out with the exception of a short passage at arms between Premier Henry and Harry C. Nixon when the latter charged the Government with delay in the pro:-- duction of answers to House Orders. Immediately after this the Premier rose and with an allusion to an "in-- cident which came to the attention of the public in December last" fore-- cast the subject of his motion. "I intimated at that time in reply . to newspaper comment and in reply to affidavits published in The Globe, that I had consulted the law officers of the Province and had been assured that sections of the Criminal Code had not been violated," the Premier stated. Speaking slowly and decisively he con-- tinued, "But I said that as soon as the House assembled I would raise the question of submitting this to a com-- ' ernment did not propose delay, LEGAL COMMITTEE ASSIGNED TO PROBE MCAUGHRIN CHARGE Harry C. Nixon, rising after the bill had been formally reread, remarked briefly that the case had aroused con-- siderable comment and that he had understood it would be referred to a special committee, Feeling that it was a matter for the i'mmiex_- and Cabinet The Premier then addressed the :' Opposition benches, asking if the | Opposition had the affidavit of Daniel. McCaughrin in their possession, and suggesting in such case that it should . be laid on the table. Without swalt-l ing definite answer, he read the formal motion introduced in his name and-- seconded by Hon. Charles McCrea. authorizing that the charges of Daniel McCaughrin published in The Globe should be taken up by the Legal Bills Committee, with full power to com-- pletely investigate these charges, and with an injunction to report to the House "at all convenient speed." to handle, he expressed concurrence in the motion. A moment later the resolution was pronounced "Carried." recommend to the House that it be sent to the committee." Pointing out that present evidence was limited to newspaper clippings, and that, although it was customary to wait for formal charges, the Gov-- Premier declared. "If I cannot have anything else than the affidavit pub-- Progressive Leader Nixon said he had expected that a special commit-- tee, rather than a standing one, would make the investigation, but he was prepared to concur in the Gov-- ernment's present action. The House then carried the Premier's motion. is reported, will be heads of The| Globe's editorial staff, who were re--| sponsible for publication of the s-en-. sational charges. Premier Henry introduced the McCaughrin case unexpectedly into yesterday's proceedings of the On-- tario Legislature. He said that while Mr. McCaughrin's affidavits, pub-- lished in The Globe, formed the only documentary foundation for the charges, the Government intended . that there should be no delay. He moved, therefore, that the matter be referred to the committse. Premier Henry Moves for Inquiry in Orillia Case charges that the Henry Government tried to buy him out of office will be investigated immediately by the Com-- mittee on Legal Bills of the Ontario Legislature. First witnesses called, it Former Magistrate McCaughrin's its Chairman, and the members are: }%mows. Henty, William A. Baird (Toronto High Park), Arthur Ellis (Ottawa South), Hon. William Finlayson (Minister of Lands and Forests) Wilfrid Heighington (To-- ronto St. David), A. E. Honeywell (Ottawa North), Earl Hutchinson (Labor, Kenora), Hon. Leopold Ma-- caulay (Minister of Highways), Argue Martin (Hamilton West), James P. Moore (London North), William Mor-- rison (Hamilton East), F. G. McBrien | (Toronto Bracondale), E. J. Murphy ' (Toronto St. Patrick), D. Paul Mun-- | ro (Wellington South), Dr. G. A. Mc-- Quibban (Liberal House Leader), Hon. Harry Nixon (Progressive Leader), Hon. W. H. Price (Attorney--General), C. A. Seguin (Russell), Dr. L. J. Simpson (Simcoe Centre), W E. N. Sinclair (Ontario South), E. Fred Singer (Toronto St. Andrews). Capn-- ta'n A. B. Smith (Essex South), T. K. Slack (Dufferin), J. F. Strickland (Peterboro' City), S. C. Tweed (Wat-- erloo North), and F. W. Wilson (Windsor East). The great majority of the members are lawyers by pro-- fession. 'The Legal Bills Committee will hold its organization meeting Wednesday Ebruaxj Challies Tables Report On U. of T.'s Finances The financial health of the Uni-- versity of Toronto was reported as "considerably better than might have been expected," in the annual state-- ment which was presented to the Legislature yesterday afternoon by the Provincial Sec:ictary, Hon. George H. Challies. The last fiscal year ended with an operating deficit of $27,696, but this is being carried forward by the board in th> hope that "it can be overtaken in the ensuing year." Assets included general revenue of $1,543,280, a transfer of the special contingency account and Provincial grants, totalling $2,681.161, and ex-- pendit:twres amounted t $2,668,251 On the Dunlap Observatory $83,529 was expended, $41,099 on the Botani-- cal Buildings. and $216,850 on the Hygicns Building, the latter being made up of the carnings of the Con-- naught Laboratories.