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Outside Jurisdiction of Pub-- lic Accounts Committee of Legislature, Mr. Ma-- caulay Is Told The contract concerned a thirty-- mile stretch of road on the Schrei-- bor--White River section of the trans-- Canada Highway. The contract was signed Sept. 12, 1935. Work was halted in May, 1936. At that time b0O per cent. of the job was com-- pleted and $592,117 had been spent, auccording to evidence submitted to the committee yesterday morning by R. M. Smith, Deputy Minister of Highnways. The public accounts dealing with the expenditure have been complet-- ed only to the fiscal year ending March, 1936, and beyond that date Attorney--General Roebuck refused to permit inquiry. Hon. Leopold Macaulay dGemanded that depart-- mental documents showing com-- plete disposition of the contract be placed before the committee J. H. Clark (Lib.,. Windsor--Sandwich). Chairman, ruled the committee had no authority to investigate more than the public accounts and refused Mr, Macaulay's motion that docu-- ments relating to the contract cover-- ing from March until the end of May, when work was halted, be pro-- duced. Unfairness Charged. "Because the Attorney--General is unfairly hampering this inquiry, I don't see how I can proceed any further without the authority of the House," said Mr. Macaulay. "It's perfectly fair--just what you would be doing in my place," re-- torted Mr. Roebuck. The Conser-- vative member appealed the ruling of the chair, but was defeated by 11 votes to 2. Only other Conser-- vative attending the committee meeting was T. A. Murphy (Cons., Toronto--Beaches), who seconded Mr. Macaulay's motion. Attend-- ance of the committee was restrict-- ed because the House was sitting simultaneouslv. Fonservative Plans \For Road Contracts Conservative plans for a full in-- stigation of a highway contract 1 to the Hewitson Construction Company were abandoned yester-- day when the Public Accounts Committee ruled there was no au-- thority to produce all documents relevant to the contract and when Arttorney --General Roebuck de-- clined to ask the Legistature to enlarge the committee's suthority. Mr. Roebuck said he would not ask the Legislature to enlarge the authority of the committee. K. M. Smith Is Witness. On the witness stand, R. M. Smith declared he had made no study of the contract under ques-- tion, but that "certain prices might seem high." In the same contract he had found that 3--cents--per--mile overhaul charges had been granted and declared this practice had not been allowed in recent years. When he had taken charge of the department all the Trans--Can-- ada work in the Province was stopped, he said, except one stretch of highway between Fort William and Kenora, which had been con tinued because heavy traffic justi-- fied it. The contract was let to the Dufferin Construction Com-- pany, but there was no sugges-- tion that the company had been "favored" in the securing of the LASH WITH ROEBUCK contract, he said. Inquiry Are Halted The Commissioner appointed to in-- vestigate could make a report false, untrue and perhaps entirely against ; the evidence submitted, he said, but 'the injured person had no redress In law because the bill specifically i!orbade the right to sue for libel or | compensation. § a1~ . . CHANGE MADE IN SECURITIES ACT PROTESTED The legislation was introduced fo\-- lowing a promise made by Premier Mitchell Hepburn that the company operations of _ Senator Arthur Meighen would be investigated. Mr Ellis touched upon Senator Meighen in his argument today. o Could Ee Used for Political Reasons, Arthur Ellis Tells Legislature The wide powers given the On-- tario Securities Commission under the proposed amendment to the Securities Act could be used for political reasons to produce a "de-- liberate result," Arthur Ellis (Cons., Ottawa South) said yester-- day as he warned the Ontario Legislature against this 'most ex-- treme type" of legislation. The measure was argued in Com-- mittee of the Whole, but failed to advance. "If his record is clear he'll have nothing to worry about," observed Premier Hepburn. "Will you," the Conservative de-- manded of the Attorney--General, "tell this House that it is not the purpose of this Government to in-- vestigate Mr. Meighen?" "Of course I won't," replied Mr. Roebuck, "nor will I give such as-- surance regarding any one else." Powers Called Too Wide. HEPBURN MAKES REPLY There was no necessity for the Government to give such wide pow-- ers to a Securities Commission, maintained Mr. Ellis. Had any wrong--doing been committed, had there been any violation of the Criminal Code, then it was a simple matter to start the machinery of law in operation. Such legislation robbed British subjects of rights given to them through centuries of the administration of British jus-- tice, he said. Mr. Roebuck replied that the old Securities Act, adopted by a Con-- servative Administration, had given the Commission powers to investi-- gate fraud in connection with the sale of securities. Now this bill pro-- posed to investigate fraud in con-- nection with companies. ----~ March 223 "That indicates full well," he said, "that we were prepared to accept: our full responsibilities. It's a far different course than was taken by| the Honorable the Leader of the ; Opposition last Friday. I submit'i that his position then brings no / credit to him. He did not observe| the decencies of debate or ethics: wHich ordinarily should pertain to such matters as he brought up in the House." Mr. Nixon also recalled that when he prepared the order paper ques-- tions, several years ago, about the O.P.S. bond holdings of Right Hon. Arthur Meighen and former Pre-- mier Henry, he had realized the seriousness of the step he was tak-- ing, and had informed the Legisla-- ture at the time that if his action was not justified, he would resign his seat and fight the question out in his constituency. The same stand had been taken by the former North Grey member, D. J. Taylor, now Deputy Minister of Game and Fisheries. "He didn't fail to prove his charges," Mr. Nixon shot back, "and the committee didn't say he failed, nor did the House. And the House passed no censure on him, as the records will show." Recalls Previous Cases. on which he based his lec-- ture had originated with "a dis-- missed beer slinger." The Opposi-- tion Leader's sole motive, he said, was to besmirch if possible the honor and integrity of the Prime Minister and the member for St. Andrew (J. J. Glass). It was in marked contrast, he said, to the stand taken by the late Paul Munro when that member had levelled the Gunning charges in the session of 1932, and had offered to resign if his accusations were not upheld by the inquiry committee subsequently appointed. Mr. Henry's attempt to read the Government a lecture on ethics had come with bad grace, asserted Mr. Nixon, especially when the charges Claiming that Opposition Leader George S. Henry, because of his fail-- ure to stake his seat on the correct-- ness of the affidavit--charges thrown in the Legislature last Friday, had violated all the ethics and responsi-- bilities of a member of the House, Provincial Secretary Harry C. Nixon suggested to the Legislature yesterday that the special commit-- tee now drifting a new set of rules of procedure should submit a new regulation to govern such cases. "If a member has no sense of decency or propriety, or no realiza~ tion of the gravity of the charge he is making, there should be some means of dealing with the situa-- tion," said Mr. Nixon. Bad Grace Charged. "And did he resign when he fail-- ed to prove his charges?" put in Mr. Henry, Opposition Leader's Failure to Stake Seat on Charges Roundly Scored COVERING RULE ASKED Sole Motive to Besmirch Honor of Others, Says | Cabinet Minister | NIXON CLAIMS HENRY FORGOT HOUSE FTHICS