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', On July IS. 1934. in had taken, govcr the office ot the Treasury. He' :had found. he said. that no inspec-i "ton had been made. for two years---) t In Nt office handling millions of dol- l Hus. "There sits the Treasurer. and; Thru-ttnow-tttMn-tttm. He in". he and. that the amoeba Parttinet at the Man end Imp!!! no not too good. ' To anew" chum levelled by Mr. t,Hrttrr, the Government Leader turn- lcd to methods of "mace used try his I administration. He would. he said. quote instances of tnaladtninistrauon in the Henry Gevernment. There was a Provincial Savings Bank at Bay and Adelaide Streets. For the first three years a rent ot $14,000 annually wax contracted for by the former Government: tor the next two years this was tilM00 an- nually and tor the next five years. was $17,500 annually. he charged. All this. he said. was tor rental in one office mam. - _ He favored the system of calling tenders on loan haves. he and. but he had not always found that it worked. Recently. he had gone to the banks with a loan. and they had an offered them the one price. 3%. he said. "This indicates clearly there was common amen: them." tte charged. "One chart: I can properly be ctr-reed with is underestimating the inability and lack of tinaneial Judg- ment of my predecessors." said the Premier. In 1934 the capital expenditures of his Government. bod been reduced $24,000,000 and ordinary expetuii- tures 86.000.000. The Treasury De- partment had been reorganized at a saving of about $5,000,000 and the Budget estimate ot he: year would be exceeded by "800.000. Mr. Hepttum--'rtut's the improve- ment tn the ttmgrteltU position. That's why interest. rates tire going down. Mr. Priee--What is the debt new? Mr. Heptntrn--Wel1. It's 8180300000 more because of your faulty adminis~ union. Cites Maudgntnistratlott. "My honorable friends opposite have mused this Government ot 1tarintt Wood, candy & Company for "vice." Mr. Renrr--Mr charge was that broken made big prom; because thev got their own price. They got an overriding profit over and above the prom made in the ordinary market. have" Rates. Mr. Hepburn-we haven't paid any one for (annual "vice. Notwith- standing, we have borrowed money It the lowest rates in the history ct the Province. The former Government not only mid tor ntmrtttlgtl advice. but. for legal "vine. In one we ttottted by the Tory Gomnmem. there was paid 840.000 to: munch} advice. "313.500 tor news- Ira advertising and 82.499 for legal vac." . Another luue wormed eight points within 3 few days of being sold and speculators could have profited $3.- roiling- him with inefficiency." he declared. pointing to Hon. George ts. Henry. Accusations of Gran. "Then let us take the Highways De- partment " the thing is wrong at the top. it u wrong all the may deem. We find that the chief accountant had misappropriated 82.000. Was he fired? on. no. He us reinstated in office. I sumac he knew that the then Pre- mier m not paying his gasoline bills ottttedar." ___ -- "And one ot the junior clerks knew that his boss had misappropriated some money. So he decided to do the same. He had Mien 81.300. And when he hard that the auditors were on his trail. he slaved a contusion Ind committed suicide." he and. "My friend had ucused Mr. Slaght and myself with contributing to the death of the tate Hon. J. R. Cooke, who was killed in 1 motor mishap. Let me tell my Mend that. due to the in- Macy in his department. right out! " own nose. he contributed to . amnion which led to the dent}: of an. you; run. Mr. Price-Mr. Turnbull bas a 'chartered accountant. of outstanding Itattitr. He was not a friend of mine. but ne came well recommended.' "The lime fellow was reinstated. The other made tettutotiotr--he gave t note and paid $50 on it. He was still in the employ of the department when I took otBee. "But what about the friend of the former At2ortter<Rmeral? There are two orxterts-in-cttuneil dealing with him. Just hem: he resigned an ortier-inA3ouneil was passed recom- mending that. W. Martin Turnbull be; mud an allowance of 82.000 for, special services rendered. This thief! had a. premium mm on his iiiiy, honesty." ernment from the brokers on an order from Mr. Henry. He contrasted this with the Spencer Estate. from which his chcrnment had collect cd $660,000. -' ikryPrieeL-ivikn I came into thei Treasury I collected large amounts.' but I didnt advertise in the press. l The Premier turned to the Bueces- sion Duties Branch. It so happened there was an instance where $200,000 'iuceeseiott-duty-free bonds had been offered to the Province " par. The Government had refused. "The point I want, to make is this-- and it streets the public Treasury. The Treasury instructed that these bonds be bought back at 108. In other words. a premium ot 318.000 was paid. I want. to know who made the 818.000." The Premier-Well. I'm going to tur. venue one now that you won't like. "Another lad stole $179. .while an- other took 82.594. The Premier then read a letter of recommendation to the House, which had been signed by E. A. Dunlap for Turnbull. The letter spoke of pains- taking and faithful service. and said he had reorganized various depart- menu. bringing them into correlation with the Treasury. ' Mr. Hepburn--- And he left the same way. apparently.' These were some of the things which his Government. but to clean up when it entered office, he said. Mr. Henry rose io protest, but. the Premier kept on speaking. . , ' "And when I took over the Havin- cie! Treasurer's Department I found it the most inettieient of all public services. It was melting with trait and corruption. The former Deputy Pro- vincial Treasurer. appointed on the recommendation ot the former Attor- ney-General. had stolen $2,385. Later these bands were sold at points tinder par to a. broker, said Premier. One month and four days later the bonds were bought back try the thw- "All this was known to the Treas- urer of the day and should have been teterred to the Attorney-General. STANDING room in the galleries ot the Provincial Legislature was at a. premium yesterday when Premier Mitchell Hepburn occupied hls seat for the Brst time this Until now only a few tteattered downs of citizens have occupied the gallery seats. but with the re- tum ot Mr. Hepburn the crowds Jammed their way in long before the session started. Gallery Well Filled F 'orHepburn Fearful of losing their was dur- ing the evening ediournment . dozen or so people brought their dinner slow with them and munched sandwiches while they waited tor the night session to open. Fawn»; N the Bluntly denying that he had at.. tended a dinner in the "notorious" Gatinoau Club altar pleading sicknas to avoid a. dinner spcnsored by Prime Minister King. Premier Hepburn yes- tnrday assailed Maclean's Magazine, the Toronto Mail and Empire and former Premier Bennett. . Displaying all his old-time spirit and are. Premier Hepburn rose in the Provincial Legislature just as it open- ed. He spoke on a quesiion of personal privilege. BENNETT 'tlull' MMlhlllmtlllt' SAYS lllli?lllllllli 'Could Walk Under Freight Car With His Hat On' Re read from a clipping from the magazme. dated Jan. 15, 1936, signed by "A Politician With a Notebook." It dealt with the O.tawa conference of Premiers Contradicts Article. The Premier emphatically contra- dicted the article and trusted. he said, that such a "reputable magazine" Would withdraw when it knew thel nets. 1 The article read: "When Mr. King. on the eve of the mnterence. gave R dinner at the Country Club for the Premiers. Mr.' Hepburn was conspicuous by his ab- sence. Mr. King tried bravely to make the matter less conspicuous by a little speech ot regret. telling that} Mr. Hepburn's physician kept him _i11: at nights. The strategy would have) worked had Mr. King's other guestsl not known that at that precise To-) meat Mr. Hepburn was a little farther, out on the Aylmer road, at the Gatiu neau Club. where there is a little: more jolllty." [ To attend the Ottawa conference' of Premiers he had flown back from' Miami, although his physicians had: warned him that he was suffering, from acute bronchial troubles, and had warned him not to go out at, night. and to avoid places where) there was heavy smoke, he said. He reminded the House that he was hat} a. smoker himself. 1 In Ws Hotel Room. 9 With mm were Chester Walters. Hon. David Croll. Senator Frank O'Connor and Anhur Slaght, K.C.. and other delegates to the conference. On the night that Prime Minister King nad tendered a banquet to the Premiers. Mr. Hepburn continued. he had remained in his hotel room. -iiGG." Gilt Premier Hepburn. Were the facts concerning the night men- tioned. -.. The Premier turned to an editorial comment In the Mail. He would not bother. said Mr. Hepburn, with the Mail. tor it was "the ottieial organ of 1he Tory Party, and filled with bias," he said. Former -Premier Bennett he de- scribed as "so small that he could walk under a freight car without re- moving his silk hat." , He was not surprised that such re- marks should come from a "bump- rlous, disgruntled Tory like R. B. Ben- nett. who was still smarting under defeat." he said. " suggest that his friends oppo- sue, if he has any friends. subscribe to certain tabloids published in To- Tonto, and send them to Mr. Ben- nett. He might read them and get his chin out ot the gutter." Premier Hepburn said. "I imagine there are plenty ot skeletons in his closet, grinning and rattling. because I think that even skeletons have a sense ot humor," he 8.10. The galleries, and even the Oppo- sition, roared in laughter as Premier Hepburn copper! his sally against the "iirriiG Prime Minister.