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March 5 ]"Misuse" of Funds f JA _ _ 1 2 No Feud ® ¢ or Personal Gain, With City Members + Commission's achievements in North-- | MORNING--PAPER story of & Former Premier U s e d! ern Ontario with the betrayal by the HA feud dtfle;tween Hon. Peter | | former Government of the principle | eenan and Toronto M.P.P.'s got a Government Money to| of public ownership--its questionable speedy denial from the Northern Save Company, Roe.: dalings with the Abitibi promoters, Ontario Cabinet Minister in yester-- 4 o | and the actions of the members of the _ Gay's Legislature, buck Clalms former Administration in the use of "It was the first time I knew the public exchequer to protect their there was any feud," said Mr. s own and other private investments. Hsenan, '"and an Irishman can Hon. George S. Henry, former On-- "Had the intentions of the hon-- smell a fight a long way off." Mr. tario Premier, was chnarged in the orable gentlemen opposite not been _ Hesnan denied the report that he Legislature yvesterday with the "mis--. frustrated by the unexp:cted insol-- _ had implied that all the Toronto use of public funds to avert a private vency of the Ontario Power Service representatives were good for was financial catastrophe to himsel{ and Corporation, and the Abitibi Power "sitting around hotels trying to his friends and to the company ofi and Paper Company, this "beacon make mischief." which he was a director." Asset" of the Abitibi canyon develop-- "I always thought the Toronto The charge was levelled by Hon. ment would have been .a bright and members were rather like the Arthur W. Roebuck, Attorney--General, :/ shining ons to the Abitibi promoters, _ CAVAIry in the army," Colonel Fraser in hlfs summing up of Hydro admin!-- | and the m'ning districts of the North Hunter, Toronto Liberal M.P.P. and stration in the past year. He referred, | would nave been blighted by another _ V8i@ran military man, interposed. he said, to the Abitibi Canyon develop-- | private power monopoly similar to "They give tone to what would ment in his charge against Mr. Henty. | the Northern Ontario Power Com-- otherwise be a vulgar brawl." At the same time the AitOrney= ; pany, which has for many years im--| Mr. Heenan also said that "The General declared that, against the ad-- l pos:a contracts on mining companies _ Globe can even go wrong some-- vice of Hydro Commissioner Charles|| for the tife of the mine at ratos based | UM®®." He had been quoted as Magrath, the then Government had ' on Al the traffic will bear E stating that the people of Northern "given away" power sites to private In 1926, Mr. Rocbuck stated, the| OUtario regarded the people of Old companies, and that the Government ' Conservative Government had grant-- | _ CDtario as foreigners,. He had said: had guaranteed to purchase $1,300,-- | ed a .:ase free of purchase price to 'The people of Old Ontario regarded > 000 worth cf power annually, the Hudson Bay Power Company. & | the people of Northern Ontario as The private company then issued subsidiary of the Abitibi Power a.ndg foreigners." bonds and a bonding company made | 5) Cn The for | "z cool million dollars" on the sale. zhfeibigg:pap%{éer ca;y::sea:gs wa.: | Invested Funds. | made On the recommondation of Mr. | A L M 0 S T 1 2 0 0 "It was at this time," said Mr. Roe-- | Henry, then Minister of Lands and | 9 buck, "that the then Prime Minister, | Porests. | HOTELS LICENSED now Leader of his Majesty's Loyal Op-- The conditions of the lease were | position, invested their private funds, | nog fulfilled and at that time Mr. | ----_--____ and the moneys of the companies Magrath stepp:d in to urge the Gov-- | Between 1,100 and 1,200 hotels are which.}hcy directed, in this company's ernment to develop the power on a l now authorized to sell beer aend wins, . bornds. es public--ownership basis. the Ontario Government reported in Mr. Henry made no reply to the "In spite of this admonition." con--: _ Yesterday's Legislature. cha.rges: P tinued Mr. Roebuck, "the lease was An "answer" to Conservative queries Opening his charges against tTh¢ | amanded by Order--in--Council, on the _ Stated that, as of Jan. 31, 1,152 hote's Oppcsition Leader, Mr. Roebuck S@id: | recommendation ¢f the Prime Min-- Were licensed for wine and beer, and "The member for South York BAS' jmer to give away this property for @uthcrities had been granted to 108 -- referred to this enterprise as the | ins second time. social clubs, 85 soldier and labor clubs, : 'much--maligned Abitibi power de-- | Queted Proverb 76 military messes and one railway. velopment,' but, as a matter of fact, | * ,_| _ When the Government took office, said . no one has uttered a derogatory word|| '"The present Leader of the Opp9Si~| the sanswer," the total number Of of that magnificent source of power, | tion had forgotten the adage that he standard hotel licenses was 977. or doubted the value of its service to | who sups with the devil should hfi':g A comparison with 1916 figures given m minmg al'.d other commun":m Of &A long Spoon- The prmnOters h out at the same t_ime. mo"rw t'ha/t : the North. loaded their proposition to the pOINt| . just prior to the passage of the O.T.A. "What has been criticized was the | that they were unable to bring th€| tnere were 1.251 licensed taverns, 7. alienation of this power into private | plant to completion, and the cOMmpANY | _ tayerns selling only beer and wine, 211 hands in 1926, and the part which de'{aulbed in the payment of lmerest.' liquor shops and 64 licensed clubs. the former Government played in the The honorable gentleman from | stock--jobbing operations of its friends | Fast York admitted that the bonds and promoters, and particularly of . :xad .r;ald' $7. th; Nedeork dmat:tkettha; MBirrnass arsincnmnmenmmamatoes rhich the former Prime | IOW as each, and no dou e m ;lx:)ced in his personal | would have gone lower still had it not HENRY TO ANSWER capacity as an investor in the bonds | been for the prospect of his Govern-- of a public service corporation having mMent's assistance. And yet. on the ROEBUCK CH ARGB dealings with his Government, and, 25th day of June, 1932. the then Prime Soals ho miuse of Pb Aerints | for bastonm: onpaaye bosk 18| | Public Fands Mn n ca WClumdfvend me ies aod ie Ayrobes sih o mt e ts " obNle Funde Misused, Is which he was a di-- 4 * t:;cemio fepany sof wiich ! $100, and thchrovince was cominitted aim «4 honorable gentiemen opposite | to an expenditure of $18,000,000 for | M wnmd Sold comfort in their altempt | the assets of a bankrupt company. | | . . (DRSTEfE MHSC SMHSIDS® o m ng | _"It was not until some considerable| {OINCY--General Roebuck that he had to confuse the record of the present | ;. _\ OC 'tvat the Prime Minister| . MISUSed public funds" will be replied . > | was forced to confess from his place: 0o in the Legislature shortly, Hon. | in this House that he himself was a| G(E'oArlge t,g.a H;m'y sald las% ment. ' holder of bonds in the company--that 1 t has heen replied to years f he was a director of the company| 389. and any reply I make now will be | with a large block of these bonds, and gwen"in a sdl o railh y ts whgs 0. 1 | that one of the Hydro Commissioners | pires's, he told The Globe in an inter-- ' | was financially interested, both per--| view. f % | sonally, and as a shareholder and di-' ' rector of a number of companies, and that he had concealed from his own| | colleagues that he was personally in-- | terested in a transaction involving the' expenditure of millions of dollars of public funds, which as Prime Minister hemhad recommended," Mr. Roebuck said.