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March 2 . | Hepburn Will Prob Lake Sulphite Tangle _ wen _z mm ¢ Cites Jokers in Deal. Jokers, Mr. Macaulay charged, M?c'u"y ASS.OI'fS Planf Pu* were included in this "pre--election in Operahon Oflly to d°"1'"'_';,:l'." These were: Provide Jobs D uring al. the export pulpwood E' c % charges may be reduced by Or-- ection Period der--in--Council; spmusmmmmme 2. That fire protection charges may be varied from time to WONDERS ABOUT CASH time by the Lieutenant--Gover-- mss nor--in--Council instead of being Renewing his argument that the _ {ixed at $6.40 per square mile recent financial collapse of Lake ;:e:'a_med in the original agree-- Sulphite Limited should be in-- f vestigated either by the Securities 3. That groi;md restalh of _ £5 Commission, "in performance of per fquare mile may. e changed its duty," or by a special commit-- by Order--in--Council; © tee of the Legislature, Opposition 4. It is not provided that such Leader Macaulay yesterday said _ Amended charges for fire pro-- that there was at least one defi-- tection or ground rental are nite angle about the whole under-- to be of general application taking which brooked no denial. throughout the Province. "It held together long enough," Dealing directly with the Lake he told the House, "to get by the Sulphite situation, Mr. Macaulay election, providing a lot of tem-- said: "The question I asked last porary work for men in the bush, Friday was, and I repeat it today, and also about 1,300 votes for the Why did not the directors call Liberal member in that district. on R. O. Sweezey & Company, But the aftermath is now on the Limited, to pay for the bonds doorstep of the City of Port which they, the directors, repre-- Arthur, where a lot of other tim--« _ sent as having been purchased by ber deals have had their after-- R. 0. Sweezey & Company? That math." 3 %, is what they undertook to do Any committee of investigation when they became directors and appointed, submitted Mr. Ma-- issued their prospectus. caulay, should take pains to find out: Why Wasn't It Probed? 1. Why Lake Sulphite seems "My second question is. in the ab-- immune from inquiry? * sence of a single word of enlighten-- 2. Where the money went _ ment from the Directors or from to > _. R. O. Sweezey and Company, Limi-- 3. Why all the money sub-- ted, why has not the Ontario Secu-- scribed did not go into the rities Commission investigated this company's treasury ? transaction and taken the neces-- 4. Why a lot of money was sary steps to compel R O. Sweezey spent on the Nipigon Timber and Company, Limited, to put the Company, although no refer-- sum of $6,060,000 in the Treasury pany's prospectus? This may be a matter for the share-- No wonder pulp and pPaPE" | nolders to consider, but it certainly conditions in Northern Ontario is also a matter for tne Securities today, said Mr. Macaulay, were Commission and the Atiorney--Gen-- "chaotic." Prior to the last elec-- eral to consider. tion Mr. Hepburn and Hon. Peter "If this had been some small Heenan, his Minister of Lands dealer with a few thousand dollars and Forests, had boasted about involved, I have no doubt swift ac-- the number of mills that were tion would have been taken by the in construction. They claimed Securities Commission long ago to that agreements for at least Clean up the situation. eight or twelve mills had been "It is no wonder that the shares signed; but, he asked, where were of this Company have ornpped from the mills? £26.50 per share, the price at which One of the mill sites, he said, they were issued, to $3 or $4 a was Kenora. And on election day share. The shareholders of the the reported superintendent of Company are supposed to be meet-- the construction had gone about ing in Montreal to protect their that town telling every one what rights. So far they nave had no the plant would mean to the dis help from the Government, and the trict, and how support of the fact that R. O. Sweezey angi Government cowsd ensure early Bethune L. Smith 'have been Di-- j operation of it. Great sums-- rectors of the Company and active "even for Peter's riding"--were in its promotion and also connected to be spent on the project, he with the new power sd4eals of the said, but, remarkable to relate, Province of Ontario, has led the nothing _ had seemingly been Province to believe that is the rea-- heard of it since the election. son for the delay in the Govern-- '"Nothing has been done about ment investigating this colossal it," he added, "and people are failure. beginning to wonder." Mr. Macaulay said that follow-- ing his criticism last session of the Sensenbrenner--Alstead deal, which involved an area of 2.600 s square miles, and under which these people got the right to ex. port raw pulp, and had Govern-- ment aid in the building of a sluiceway to Lake Superior, the = Government had entered into a subsidiary agreement with the company, providing that construc-- tion of a pulp mill, with a capacity of 100 tons of pulp per day, ready for operation not later than Oct. 31, 1940, should be started. bivrrmeremeeerrmmmm......