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The costs of the contracts made with Quebec companies were tallied by the Legislative spokesman for the Hydro Commission. Cur-- rent and future deficits, running into millions of dollars annually, were portrayved as a direct result. Bygone management of Hydro affairs was charged with "stupidity or worse." It was highly in the public interest, _ yyrore Mr, Roebuck launched into a Mr. Rogbuck said at the outset, that_a exhaustive review of the early histo: clear picture be presented of the €®= ;ngq expansion of Hydro in Ontatri tensive enterprise owned by the peOPle . agqing: of Ontario and known as the Hydro= _ @r nave thought it worth while i Electric System. He would attack th¢ y,con tne incoption of this enterpris subject first, as regards that PAYl .ngq ;} ;s well for the people of th of the system vested in the HYCTO* | provinee to remember that HyGrO . Electric Power Commission of Ontario, a child of the Liberal Party. It and under its direct control, and sec'; well also to remember that during a eond, that part of the system OWNCG j;i5 years of growth, HyGro has bee and operated by the municipautlcf. canstantly defended_ sunnmnrted an "The Hydro--Electric Power Com-- mission," said the Attorney--General, "is the third largest public utility in Canada. One need not expatiate on the importance of a system of such magnitude in the commercial life of this province. Success in such an in-- stitution means abundant power at low cost for lighting and other uses in the homes of thousands of our citizens, and a cheap and abundant supply of power for the operation of our manu-- facturing institutions, and consequent-- 1y lower production costs for these in-- dustries. "Under most normal conditions the affairs of such an institution warrant the fullest discussion, regardless of time and effort, but when I tell you that Hydro affairs are in a condition that is far from normal, that it has been grossly mismanaged, that stupid-- ity, or worse, has characterized tn: conduct of its affairs, that the pub-- lie advantages of cheap power have in this way been outrageously sacrificed, and that Hydro today in its largest and most important division is faced with a crisis in which both courage and wisdom will be required to save it from disaster, I submit I have justi-- fied in advance the most painstak-- ing and extended study and considera-- tion of its affairs. Paid Propaganda. "How fortunate it is that a new party is in power at this crisis in its affairs will become manifest as I pro-- ceed. Paid--for propaganda has well-- nigh obscured the fact that the Lib-- eral Party originated the Hydro and has always supported it, as have all citizens of wisdom and good--will. It was brought into being by a Liberal Crovernment under the Premiership of the Hon. G, W. Ross." Former Hydro Management Charged With "Stupidity or W orse" Stupendous Deficits From Quebec Tie--Ups Heralded to House missioner. Hydro Private Power COntl'actS S eque] ons Ullmasked by Roehuck HE record of Hydro's contracts and deficits and resulting crisis was laid on the table of the Ontario Legislature yesterday by Hon, Arthur Roebuck, Attorney--General and Hydro Com-- of $98,242.12» "In the matter of expenses, the Commission since July 10 last, has reduced its executive salaries by $98,-- 242.12. The list of high executives who have been dispensed with and none of whose places have been filled with now appointees, except by pro-- motion of junior members of the staff without increases in pay, includes PF. A, Gaby, Chief Engineer; J. W. Gil-- mour, Treasurer; E. A. Hugill, John Litlejohn, I. B. Lucas and A. V. White. As against this, the only new appointees are Mr. Murray McCrim-- mon, Comptroller, at a salary of $6,-- 000 a year, and Mr. M. M. Inglis, at a salary of $5,000, leaving a saving "Notwithstanding the present Com-- mission's continued efforts to reduce expenses and to promote the sale of power by every possible device, the deficits of the system amounted to more than three and one half million dollars in a single year. "As a result of a series of power purchases from the power barons of the Province of Quebec, the Niagara System last year in operating ex-- penses, fixed charges and purchased power cost the Commission $2,869,-- 828.36 in excess of the revenue de-- rived. Let that sink in. The total revenue for the year ending Oct. 31. 1934, was $21,418,014.80. The total operating expenses for the same period were $24,287,843.16--a deficit, let me repeat, of $2,869,828.36. "How fortunate it is that Hydro is again in the hands of its natural pro-- tectors, and how grave is the condi-- tion in which it was left by the gentlemen opposite may be gleaned from figures which it is my not--too-- pleasant duty to present to this House. "I have thought it worth while to recall the inception of this enterprise, and it is well for the people of this Province to remember that Hydro is a child of the Liberal Party, It is well also to remember that during all its years of growth, Hydro has been constantly defended, supported and comforted by its Liberal relations. Meavy Deficit. Here Mr. Roebuck launched into an exhaustive review of the early history and expansion of Hydro in Ontario, adding: ebru ary 28 | _ Continuing a recital of the econo-- | mies effected by the Commission, Mr. | Roebuck mentioned a saving of $190,-- ' 000 effected through the recent re-- issue of bonds for $10,000,000 at 3.08 Reports Economies. por cent.. the present bonds yielding 5 per cent. Further, during 1935, $9,-- 500,000 capital, bearing interest at 6 per cent., would be refinanced at approximately 3.5 per cent., which would mean a saving of about $237,-- 000, bringing the total saving on these two items to $1,063,828. *"*For many ycears," proceeded the Attorney--General, "it has been the practice of the Commission to set up reserves for obsolescence and contin-- gencies. The heavy losses I have mentioned have been charged into #whis fund, and the reserves depleted accordingly. In 1931 this fund stood at $14,631,725.88; by the close of 1934 it stood at $6,526,237.54. *'Without charge for obsolescence and contingencies, and without with-- drawal from that fund, the Commis-- sion's average cost of power supplied to the Niagara System during 1934 was $30 per h.p. per year. This power rate has increased by more than $10 per h.p. per annum in the past five years. The figures are as follows: 1929 © e a 0 a e a e e a 0 e 8 s % e '20-03 ]930 0 a a 0 a a e a a s 6 6 % 6 e o 20-8' 1931 © 0 a e a e a e e e 6 6# 8 8 6 23-31 1932 0 e e# e e e e 8 a 8 % 4 % 8 6 27-49 1993 @ss««@ssirssrsss» . OLaD 1994 ..:..«@+ssssr+ss. 00068 "The Commission has not charged the municipalities what the power has cost. For this there wore two reasons, In the first place, a general election was in the offing, and in the second place the cost of power is now so high that steam plants are very real potential competitors. We have been drawing on our reserves. 'The figures are as follows: i 1929 ........ 2003 s07f -- 23M0 1930 :+.+«...s 20.84 3.24 24.08 1931 ........ 28.91 .61 23.92 1932 ........ 27.40 2.97 24.52 1933 «..1«..+ SLEU 5.43 25.77 1934 ......... 3006 4.28 25.178 Rates in Toronto. Illustrating how these figures work-- ed out for municipalitics, Mr. Rocbuck showed that Toronto, in 1932, had paid 25.85 per h.p. for power which cost $30.12; in 1933 had paid $26.59 for power which cost $33.95, and in 1934 had paid an estimated $26.55 for power costing $32.31. "I have it on the authority of Mr. E. M. Ashworth, the manager of the Toronto System," said Mr. Roebuck, "that power can be generated in To-- ronto by steam produced by imported . coal at $24 per annum, 24--hour firm power. It is costing $32.31. Furtherl Similarly, Hamilton's figures for the same three years had been: 1932 charge, $24.99, cost, $29.26; 1933 charge, $25.84, cost, $33.20; 1934, esti-- mated charge, $25.80, cost, $31.56. He added similar statistics for other centres. "The average cost of power sup-- plied to the municipalities, rural power districts, companies and local distributing systems in the Niagara system has increased to a point where It is now considerably above the cost at which power can be generated by steam plants. Submits Figures. "Nor do these figures, disastrous and alarming though they are, teil the whole tale. # 48# # u+ % w w e t# a e# w e a # @6# s w w w e s w # w s 4 a s# ¥ + ¥a%%® Average -- Contin-- Cost gencies per h.p. Reserves Charged 20.03 3.67 23.70 20.84 3.24 24.08 23.31 .61 23.92 27. 48 2.97 24.52 31.20 5.43 25.77 30.06 4.28 25.18