The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

Mr. Baird later took up the attack by declaring that for the first time In the Province's history the King's official did not have an official iresidence. This should not have happened in this loyal Province of Ontario. he claimed. The savings. which. he said was posted in Public Accounts as 822,000, did not warrant the act. "Maintenantrs alone was more than 837.000. and the staff cost was; over and above that. You had haw ter have another look at Public Aeatunu," Mr. Hepburn advised. The Premier then referred to the statements he attributed to former kieuteltant-Governorr, and added a firm "l have nothing to withdraw." "shameful.' Shametul!" intorject- ed golonel T. A. Kidd Icons., Kintts- ton . "Go on and wnve your flag," re- torted-_Mr. Hepburn. 'CHORLEY PARK _ USED AS HOTEL SAYS HEPBURN "Oh. make it 32.000.000." suggest- ed Hon. G. S. Henry Icons., East York). "Yes. or thrc Mr. Macaulay. "Well," rammed Mr. Hepburn. "it does not railed well upon the Tory Government which spent a million and one-half to build it." Mr. Hepburn said he was glad that Mr. Macaulay had agreed on the one point. The Conservative Leader corrected him, pointing out he had not agreed. but had simply "ttue. Ivould not, argue the point. l Mr. Macaulay said he had no argument with the Premier's de. scription of the executive mansion as an "architectural monstrosity." But as to the other. he claimed there were already too many people advocating subversive doctrines inlmical to the British Empire with- out the Premier Joining in the prac- tlee. The clash was precipitated imme- diately after the House was opened when Hon. Leopold Macaulay. Con- servative House Leader, emphasiz- ed that he wished to disassociate himself and the entire Opposition from the Premier's language. when he said Government House was "maintained for the benefit of visit- in: broken-down British aristoc- racy." It was continued by w. H. Baird (Cons.. High Park). who, in his contribution to the Address in reply to the Speech from the Throne, belahored tho Administra- tion for "feeling paltry savings " the price of "belittling" the King's "preert_tative. Furthermore. In the (am of con- tinued attacks trom the Conserva- tive Opposition. hearing on the re- rf,",',', savings resulting from board. ng up the mansion. the Premier declared that Mon. Dr. H. A. Bruce had told him, "that it he had stayed on he would have required another 310.000 a year for entertaining pur- poses." TERMED BELITTLING Premier Hepburn. defending the closure of Government Home. yes- terday in the Legislature. revealed that "former Lieutenant-Governors have complained to me that they had to run a glorified hotel for visiting British aristocracy who could well afford to pay their bills " the Royal York or King Edward Hotels." Saving Does Not Warrant Closing, Conservatives Protest three minion," suggested J. Albert Smith. Hydro Commis- Bioner, and M.L.A. for North Water- loo gave to the Legislature yester- day an hour and a halt review--- eystem by system-of the Hydro situation in Ontario, without a single direct or argument-provoking reference to the recently negoti- ated contracts with Beauharnois or "power barons" ot Quebec. . . . COMMISSIONER REVIEWS HYDRO. AVOIDS FACTS 'J. Albert Smith Points to Deficit in I934 and Sur- plus in I937 "Obviously," said Mr. Smith skirt- tng the question, "the Hydro Sys- tem wag reaching a point where a readjustment of its contractual rc- lations was necessary. Certain other clrcumstancps surrounding our con- troversy with the companies made imporatlve a speedy settlement while the Commission was still in a pasilion to bargain effectively." . Barring this refercncc: the dec- laration that considerably less pawer at a lower cost is being taken now than under the original agree- ments; and the assumption that "the people of this Province will no doubt rejoice with the Government and Commission" in the satisfactory settlement achinvcd." Mr. Smith Btudiousiy avoided the contracts issue. and left to his Hydro colleague. Acting Chairman W. L. Houck. the job of taking on the Opposition. when he speaks to the fortheominp contracts - ratification bill, or on the Hydro estimates. Profitable Year. In 1934. the last year under Conser- vative Administration. the combined system: showed a deficit of approxi- mately 83.000,000, they in 1937 show. ed a surplus of nearly s4,000.000. Marked advances were made in ntl divisions hut one of the most successful operations was the Abi- tibi section. which in 1934 and 1935 bad contributed solely to the defi- cits of the Northern properties. . MINES GIVEN C R E D I T The Commissioner faced the House with reports. which, he con- tended. showed that Hydro had had its most satisfactory year in history. Pointrdl.v. he emphasized, the: while "The remarkable expansion of Northern Ontario's mining indus- try continued in 1937 and can pri- marily be credited with this tre. megdous growth in power load," he " _.. . . Rate reductions in the various! systems amounted for the year to! approximately 33.400000. In the Ni-: agara System, largest of the Hydro! enterprises. the distribution of; power increased 11 per cent during the year. In October, 1929. the pri-i mary load was listed at 931,261! horsepower. In October. 1937, it; reached an all-time high of 1.036" tttrt, an advance of more than 100.-. 000 horsepower over the primary; Toad in October. 1936. Two reduc-i tions in the interim rate charges, to the municipality were ordered, during the year. one of $2.50 per thorsepower, effective at the begin- ning of the fiscal year and a second of $2 on Aug. 1. As a result of these two adjustments. said the speaker.' the municipalities were saved 82e 028.676. The load in the Northern prop- erties increased to 121,115 horse. power in October. 1937. or 19.7 per cent above the level of the corres- ponding month of 1936. Sales of power to the Ahitibi division mul- tiplied almost six times within four years. tluvtd For direct. example of the effect. of the rate reductions. the Commis- sinner referred to Toronto. "Durs fing 1937, this rity paid in interim _rharges 56.871052 for an average had of 297.536 h.p.. compared with S7,030.955 for 270,461 h.p. in 1936. tn other words, the municipality paid 3182.003 less in 1937 than in 1936 for 27.000 h.p. more power. Con- sldering the additional usage of power, the saving was actually nearly S900.0M. In the current tis, cal year of 1938, when the redue- tions will he applied for a full twelve months' period, this saving should approximate Sl,413 000." Expansion in Rural Areas. 1,trti, revenue was decreased 000 by these reductions " the greater power con- _ and the total revenue in the ermre system topped that of 1936 hy $400,000, amounting to $24,- 703.427. In spite of rate reductions. the surplus of the fiscal Soar 1937 ex- ccede that. of 1936 by $243,178. Mr Smith emphasized that the average (0st of power in 1933, under the Conservative regime wa: $31.66 par horrrttowor while in 1937 the aver- agn throughout the system was $24.23 per horsepower. Rural Hydro showed the greatest expansion period when 13,000 new customers received serviee from 2,300 miles of new line. Through a network of 13.107 miles of line. 86.620 rural customers are serviced Investment. in rural works has reached s25,000,000. He held it was significant that 8.443 of the new cus- tomers were within the small farm classification. In summary of the Commission's financial condition as a whole, Mr. Smith said reserves have been in- creased in the year from 890.285,772 to about S103A50,000. Interest charges have declined materially, ho said, because of the Commission's present sound financial condition. The Commission owed the Govern- ment $189,994,133 when the Liberals assumed office. That debt, the Commissioner reported, has been re- duced by 839/502236 to $150,491,796