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$434,000 OVERDRAFT IN LIQUOR COFRERS -- WHEN PROFITS PAID Nixon concluded. The cheques sent the Provincial Treasurer on Oct. 31 received sbnecial eattention from Mr. Munro. Thes:> ag. gregated $425,000 profits plus $100,-- 000, two distinct items. One cheque, ¢ the Liberal lawyer noted, had not been deposited until Nov. 2. He drew the statement that the whole amount had been included in the figures for this year's Budget. The trend of the Opposition con-- tention was revealed during the exami-- nation to which Dr. McQuibban and D. Paul Munro, K.C. (Liberal, Wel-- linston South) subjected Stowart Mc-- Clenaghan, Liquor Boa:d Chairman and J. A. McGsoachie, Liquor Bard Controller. Obviously the Liberal con-- tention is that Government revenue was padded cut with money with-- drawn from Liquor Board funds, for the creation of the Henry surplus, and ggotwl'&or Boardtasszlts had been cut value of re roperty, plus bottled stock. propery, ph Last Available Dollar Is Drained From Board by Government Bank overdraft, $434,508. Bank credit balance, about $25,000. This was the Liquor Control Board's liquid position on the date it paid $1,525,-- 0o0 :n profits to the Ontario Govern-- ment. PUBLIC ACCOUNTS DATA Liberal House Lceader McQuibban extracted these figures from bcard of-- ficlals at yesterday's sitting of th: Public Accounts Committee., He sum-- med up results of hkis preliminary grobmx thusly: "What it amounts to this: the Government draincd the last available dollar from the Liquor Board, as you admit, and in addition left a $424,000 overdraft " Officials Are Examined. O. Hipel (Liberal, Waterloo North) that Waterloo County highway con-- tracts had been let at 59 cents per square yard, on tender, and $1.59 per square yard without public tender. When committee attention turned to the Liquor Board question, Attor-- ney--General Price rejected Dr. Mc-- Quibban's proposal for a subcommittse examination of the board's bank ac-- counts. All material was, or would Another item at yesterday's meeting was the information extracted by N. onel be, ready for examination. "We don't want to hide anything," assured Col-- Monthly Payments. Mr. McClenaghan, in answer to ques-- tions, said that the board pald a total of $6,000,000 to the Provincial Treas-- urer in the fiscal year ended last Oct. 31. Payments were made monthly from the eisht banks which shared the board's business. Mr. McGeachy tendered the cheques paid over by the board, and these were examined and entersd by Mr. Murnro. Opposition auestion:rs were interested in the regular payment of $25,000 a month for saless of liquor permits, and sought to gain an admis-- s'on that such sales varied largoly botween the first of the year and the end, when permits exp'red. "You've had this money on hand, and not sent it to the Province till late in Cross--Entry Subtraction. 4. T. White, Deputy Provincial Treasurer, was examined briefly by tou;breoeipts from the Liquor Board of $3,450,000 profits, and $65,000 for eonfiscated liquor, as well as th» $485,000 for permit sales Dr. Mc-- Quibban closely studied the Liquor Board's balance sheet, hunting un-- the year." Progressive Leader Mr. Price established that a $449,-- 000 balance of pofits was loft in the board's hands at the beginning of | the fiscal year which endcd lass fall, fand that the board was entitled to | pay that amount out in addition to | 1933 profits. The act showed that | all profits of the board belonged to 'the Province. Whal money, he ask-- led. was on hand at the end of the 1933 fiscal year that belonged to the | Province? Mr. McGeachie gave the 'amcum, as $422,000., To pay over | that sum, it would be necessary for | the board to obtain greater accom-- imcdation from the bank. It was an ! agvantage to have money on hand to make purchases, The Treasury, he ]ccnfirm:d. was continually pressing 'him for remittances. € successfully for the $65,000 item. Mr. MoClenaghan finally explained that by cross--entry the $65,000 had been subtracted from the price of liquor purchased by the board. Mr. Mc-- Geachy also admitted thore was no specific reference in the balance shcoet to the $65,000, but it would be shown in the board report now bsing pr.nted. Dr. McQuibban, as a result of this iInterchange, called for production of the names of all firms which sold liquor to the board, and the amount of each sals. This information was prom.sed for next wesk's meeting. |__Dr. McQuibban pointed out that it | would scarcely be feasible to pay the 'Province with goods on hand. "In | reality," he said, "you couldn't pay | thr> $449,000, for it was represented | by bottlss on the shelves." | Figures on Highway. On his particuiar reference to the | committés, Mr. Hipel quizzed R. M. i Emith, Deputy Minister cof Highways. | He establishes that the price of the | stretch of Guelph--Waterlco Highway | in question was 45 cents, the lowest | tender, which won the award fo; the | Bergman Construction Company. Th , department furnished cement, grave! _ and sand, raising the cost of the : work to approximately 59 cents per Tangled over his own figures, Mr. McGeach.e then submitted the Liquor Board's bank balances to the com-- mittee. The item of $434,508 he first pronounced to be an overdraft with the Canadian Bank of Commerce, then a credit balance, and finaily an overdraft, Mr. Munro reminded him he was on oath and strassed the need of accuracy. As ultimately tabled, the accounts showed a Gebit balance of $434,508 in the Bank of Commorce, and credit balances as follows: $5,343 in the Dominicon Bank, $1,524 in the Bank of Toronto, $4,537 in the Bank of Nova Scotia, $3,583 in the Impsria] Bank, $2,419 in the Bank of Montreal, $3,857 in the Royal Bank and $2,915 in the Province of Ontario Savings Office. ' Next, Mr. Hipel drew the admis-- | sion that a contract in the sam: j area had been awarded, without pub-- ' lic tender, for $1.59 per square yard. | Highway Minister Macaulay suggest-- | ed that conditions of the two jobs | were not comparable, in view of | bridg> and grading work involved 'Mr. Hipel then brought up another stretch of work, ncar the preceding ones, which had cost the Gepart-- ment 79 cents a yard. With produc-- tion of this information, he was well satisfied to let th> matter rest for the time being. Mr, McGeachie pointed out to his quest.oners that '"substantial sums were in possession of vendors through-- out Ontario for sales of Oct. 31, and more cash was in transit to the board's head office." He was exam-- ined closcly on the probable amount m trans't "Then when you paid the Province you were anticipating what you might get in," said Dr. McQuibban. "You paid over more than you had, in other words." ercdit balances were about $25,000 here, and you issued cheques to the amcount you did in anticipation that :gom':-'.hing might come in from the res," Mr. Munro put it: "You knew you had an overdraft, and you knew your March s