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| Revenue Considered. nary revenue. Last year we esti-- mated that the gross ordinary revenue would amount to $73,705,246,. Accord-- ing to the reports brought to me up to this morning, it appears to me that the total gross revenue for the pres-- ent fiscal year will amount to $79,-- 014,075, an increase over the fore-- last year I informed this House of my confidence that we would collect the amount of revenue shown in the detailed statement of estimated ordi-- The nicer subject of revenue came next. cast by the handsome amoun!, ol $5,308,829. "I think, Mr. Speaker, that my re-- port of the revenue paid into the public treasury fully vindicates my prophecy of last year, when I pre-- dicted that the Government would collect the amount of revenue shown in the doailed statement of estimatl= ed ordinary revenue. Put that down, Mr. Speaker, as a prophecy of the Hepburn Government that has been fulfilled." The Premier took the natural swing from revenue to expenditures. They had been kept within the estimates and they had been kept below the estimates, he reported--except for re-- lief. "If this Government is worthy of censure and blame, I say--and I can can shout it from the housetops--that we have kept our pledge to keop ithin the estimated exponditures except in one respect, and that is in regard to relief given to the starving and suf-- fering people." feel it my duty to report to this House and to the pecple of this Provincs, not that I have a surplus of $6.867,035.98, but to give the psople an honest state-- ment and say that our expenditures for ordinary account, added to the expen-- diture for unemployment direct roliet and the administration there>f., ex-- ceeded the gross ordinary revenus by ' the sum of $13,496,609.07." The Promier's tax announcements 'lncluded the dofinite statemont that corporations' tax would not be increas-- ed; that the succession dutics had sur-- passed all previous annual figures in eleven months; that the Government was buying in succossion--duty--fre> bonds which had been brought in as many as five times for tax exemptions, and that when the owners of sucess-- sion--duty--free bonds died the bonds were not going to be passed on again, but purchased by the Government. . Ecenomic Conditions. fering people." Gross ordinary expenditures, forecast in last year's estimates at $73,311,593, will only total, the Premier re-- ported, $72,147,039, or a reduction of $1.164,553. Revenue exceeded ordinary expen-- diture by $6.867,035. '*"Mr. Speaker and members of this House. with the exception of the Prov-- ince of Princs Edward Island, in every Province of this Dominion the Provin-- cial Treasurer who cain produces a statemont like that would claim a surplus on -- ordinary * account of Relie{, the bugbear that kept him from making that statement, had cost Ontario "the staggering sum of $6,867,.035." High prices prevailed in the lumber industry, and be observed a definite upward trend in manufacturing. The textile, metai--working and booi and | shoe fields he singled out for note in | this respect . | Reviewing the business and eco-- nomic changes, Mr. Hepburn said that tarmers had cause to fecl more optimism, with all crops except fall wheat reaching or excesding the nor-- mal yield, with the price of cattlic rising, and the United States export market widening. Building operations he also describ-- ed as substantially increased in many centres, notably Toronto. Regarding labor, he said, Toronto unemployment decreasscd between 15 and 20 per cent. from 1934 figures. Returning again to my figures r the pres-- nt to $79,-- the fore-- amount of The Prime Minister then submitted a review of departmental activities, be-- ginning with the Department of Agri-- culture. In the retail trade the Premier found grest benefit reflected from better employment conditions with increased turnover in most cases. The tourist trade was a big factor. In-- creases in turnover of from 10 to 20 per cent. were notable in the whole-- sale field, alithough prices wote still low, and profits comparatively small. Reviews Departments. had an effect on all milk prices. Th Cheese Producers' Association ha: completed its organization, the Cream-- ery Producers' Association is organiz-- ing at the presont time, and the Milk Producers for Manufactured. Milk have got their organization under way. "Last year," he said, "I discussed the work accomplished by the Milk Control Board, and am pleased to be able to state that the work during the twelve months since that time has in-- creased in its usefulness, and the im-- provement of prices for whole milk. and particularly the maintaining of prices during the summer months, has "In the Department of the Attorney-- General the amalgamations and re-- organizations spoken about in last year's Budget Address have been car-- ried out with additional savings to the Province and the municipalities. and the anticipated saving of $100,009. which was mentioned as the goal with respect to the ama)zamation of th« offices of Lccal Rogistrar of the Su-- prem> Court, Clerk of the Coun:s "During the past year seed--cleaning plants have been established, and the organization for the destruction of weeds has been improved, all of which will make for better crops. Several cold storage plants have been erected. of the Registrar cf ths> Surrof:t Court and Shoriff, have been realized The distribution of law stamps on a commission basis has been entirely done away with and put in the hands of the Registrar of the Sourroga'te Court at no additional increase in emoluments. This is a saving of from $12,000 to $15,000 to the Trcasury Department. \ _ _"The Public Trustee's office is self-- | supporting by means of a small _er-- x centage lovied on the estates being afi.- | ministered. The Fire Marshal's offics has been completely reorganized and 'an Advisory Committee appointed, | with reprosentatives of the fire insur-- iance companies on it. Department of Education. "The grouping of Registry Offices which is under way will save the Province at least $12,000, and a simi-- lar amount will be saved to the muni-- cipalities. By sending out the so-- licitors in the Attorney--General's D¢e-- partment to prosecute at the Assizos instead of appointing outside counsel, botween $15,000 and $20,000 will be saved. "The Ontario Securities Commis-- sion. instead of being a liability on the Province as it was in the days of the old Government, is now an asset. Dur-- ing the former regime the admini-- stration of this department showed a d:ficit of nearly $14,000. Under the present Administration there is an cx-- coss in revenue over expenditure of over $50,000, this in spite of the fact that the work of this branch of th: department has probably increased 500 p>r cont., and nearly $1,000,000 of ths public's mconey has been recovered by the Commission. '"'The Department of Education hnas been able to keep its expenditures for the current year well within the limits imposed by the Legislature a year go. This has invoived of necessity a reduc-- tion in the aid given by the Province to the several classes cof schoo'!s constituting our educational system. By reason of the co--operation of local educational authoritiese it has been possible to maintain unimpaired the sorvices rendered. "In newly settled districts .nd in urban centres where the closing of in-- dustries has deoprived large numbers o{ regular employment, peculiar difficul-- march ! IOn Ol L of the 3 he Coun Burrol> i In the Department of Health the Premier reported "certain warranted economies without loss of effectiveness of the essential services." Achieve-- ments included reduction of cost for free insulin; increase in cancer clinics from five to seven; more proportionate distribution of radium; strategically )placcd tuberculosis clinics, and a sav-- ing by using boarding--houses for con-- 'valesccnt mental cases. | The Department of Highways, the ! Premier expectod, would complete the | year well within the sum estimated, | and, despits the fact that 184 miles :had be>n addsd to the King's High-- | ways, the department would spend t considerably less than last y>ar. Many | dangerous grade crossings wore elim-- I inated, and this year the Government {hoped to carry cut "a moderate pro-- | gram of work, particularly on the old-- er sections of the main roads." where lreconstruction or widening has be-- _ come neccessary. "By reduction in interest rates alone the wholesale cost of pow:r supply by the Hydro--Electric Power Commission will be reduced to the extent of over one dollar per horse--nower per year, assuming that in the seven years from now the jload of the Commission in the | Niagara District will have increascd to | 1,500,000 horse--powor. The most rigid l economy in the opsrating department of the Commission could not preduce anything like the same proportion of , reduction in the cost of power." Regarding Life Insurance. ties have ~been encountered, and the department is asking this year for a slightly increased appropriation. Re-- garding technical and _ vocational schools, it is proposed that the Pro-- vincial grants shall be reduced some-- what, and that the moneys expendced on secondary education be distributed more evenly between the high schools and coliegiate institutes, on the one hand, and the technical schools on the other." Regarding the Department of Gam» and Fisheries, he announced a decid-- ¢d increase in the fishing industry in Ontario, and stressed the importance of the work of this branch in attract-- ing United States tourists. "No further cuts in university grants were proposed this year," said the Premier. Game and Fisheries. The number of motor vehicels regis-- tored during 1935 set an all--time high record, which may be surpassed this year. The Hydro system, The 1936 construction program of the HMHydro--Electric Powor Commission was expected to add 838.6 miles to the rural systems, Mr. Mepburn said in re-- gard to Hydro. This would involve an increase in consum>rs of 6,413, and the cost to the Government and the Commission, to be borne equally, wou'ld be $2,079,848. During the year ending Oct. 31. 1935. the Commission, cut cf a total expenditure of $33,888,056, paid in in-- terest $13.085,405. Of this, $9,544,022 was paid into the Treasury to mset in-- terost charges upeon that portion of the Provincial debt incurred in making advances for Hydro construction. "In recent develcpments in the northwestern part of the Province for the sole purpose of providing power for mining opsrations," said Mr. Hepburn, "the amortization psriod set by the Commission for the roturn of capital is as low as ten years. Speaking gon-- erally, I think it is reasonably certain that the $30,000,000 now invested at the risk of the poeople of Ontario in the region north ¢cf the French River will not fail to return sufficient annual revenue from this time forward to meet not only interesi, but sufficient sinking fund and renowals resorves to retire the capital and maintarin the various plants in efficient condition. Mr. Hoepburn said returns filed with the Insurance Department by life in-- surance companies showed total life insurance in force in Ontario at Dec. 81, 1935, as approximately $2,785,000.-- 000, an average of slightly over $1,000 of pow:r supply by Power Commission the extent of over