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'The opposition leader said the "You want us to wield the club bondholders' plan, submitted by now," countered the Premier. James P. Ripley of New York, and "I hope it will not turn out with the plan submitted by holders of having another Backus in control of 1 preferred shares had been discussed the pulp of Northern Ontario," said ' :,y :{on. l:'eter Heenan, ministle)r of the member. | ands and forests. Colonel rew claimed the Ripley plan did not Rights of Bondholders. $ make adequate provision for the Mr. Hepburn maintained that the | junior security holders. bondholders who had invested | A "Ur:ilcss the order--in--council was $50,000,000 into the company wanted | § ntended to be used as a club over to get it back and he believed they 'Pl;?.é:l:;'a;:eu:)?l%bjfi:jmz: the junior security holders for had a right' to it. Colonel Drew, 'tion issue, flared yesterday in the ncceptance of this Ripley plan they while agreeing that they had cer-- "Ontario Legislature into a brief but have found unacceptable, I know of| _ | tain priority rights, claimed the bitter exchange between Premier no reason for publicly announcing| | Premier had left the impression Hepburn and A. W. Roebuck, K.C. the order--in--council which said the that the preferred shareholders had when the Government Leader charg-- province _ would extend timber not loaned $25,000,000 of tneir money & A ed that his former Attorney--Gen-- rights to the company after it was in the same way. eral, by acting for the common reorganized or sold," Colonel Drew "This is the crux of the situation," shareholders of the company, was said, adding that continuance of the <a m C w4 yapt c e rights could have been taken for he said. "The man whose proposal prejudiced" and was therefore not i in : » : com granted. is before you is J. P. Ripley. petent to speak. s The opposition leader said that a "There is no reference to Ripley The charge, which led to an ap-- reorganization or sale to take the * sat j peal for a ruling from the Speaker, Abitibi company out of bankruptcy in the statement," said the Premier. came immediately before the House would not place an additional log "Now, Mr. Prime Minister, do you voted to accept the motion of Col. in paper production or an addi-- deny that the proposal re.,ffrred to George A. Drew, Conservative Lead-- tional man at work unless the com-- is not the Ripley DFODOSfI- L er, that all the correspondence, tele-- pany was taken out of the pro--rata Hon. (".grdon Conant: "There is no grams and memoranda, relating to i mmitnti k proposai. { the rights and reorganization of the :;::,';:; fon'placed on all :paper sCon "I think the Premier has been company, since Jan. 1, 1937, be f misled by the Minister of Lands tabled. Ready to Produce Records. and Forests," said Colonel Drew, In the first heat of the charge, | emi . Sal "and as he has §aid. he came in the leavening influence of humor :.h'fi;h}:r lm'e;'a:ln ir:{)i]r)tfi?::id 2100:5(; without information on what had stamped the proceedings, when the | that the government was prepared| | £°N° °n before." Premier turned to the Speaker for !to produce all the records, and at| Mr..Conant declared that under a ruling and found that the chair ithe same time emphasized 'that the a judicia} sa!e there was ample was occupied by Roland Patterson, |government had done all in its opportunity given to everybody to * Grey North, in the temporary ab-- | power to assist the different parties protect his rights. Colonel Drgu sence of Hon. James H. Clark. 'in their attempt to reach an agree-- | held it was not within the function Members of the Cabinet grinned 'ment by negotiation. of the government to take the stanc their appreciation of the difficulty | _"If the Leader of the Opposition it was impossible to get 75 per cent in which the recently elected Clerk | has the thought it would be possible of each group of stockholders to of the Committee of the Whole ; to get the parties together in agree-- agree to reorganization terms and House was placed. l ment I would remind him of a con-- that there was no encouragement | Mr. Patterson ruled that if Mr. j ference which was held by the Min-- for them to attempt an agreemen! Roebuck "has" a retainer that he ister of Lands and Forests in the unless they had some assurance is barred from speaking. Mr. Hep-- Cabinet Council room and that he}! -- that the company was not going to burn interjected, arguing that if had to leave the room to avoid| _ PC SOld under the bond mor{gage he "had" a retainer he was still bloodshed. That's how close they | Hon. Peter Heenan, Minister of prejudiced. were to coming to an agreement,." Lands and Forgsts. said the govern-- Mr. Roebuck reminded the House he said, adding that it was only |ment was taking the only course that at the beginning of the Abitibi after the government had "exhaust-- open to it in amending _ the 1937 debate Monday, he had advised the ed itself in an attempt to bring Order--in--Council, which ordered that House that he had acted in the about a reorganization" that the re-- the government must approve any court proceedings last year for a cent order--in--Council was passed. agreement reached . by conflicting block of British common share-- "I can't see where the govern-- parties for reorganization . of the holders and that he was then speak-- ment is open to criticism," he con-- $155,000,000 company, which has ing in his capacity of a member on tinued. "We are not holding a club | been in bankruptcy and managed behalf of those whom he repre-- over any one." He saw in the gov-- _ | bY the liquidator since 1932. sented. ernment's action simply a move to | agree with the Leader of the Mr. Patterson suggested that the assure any group which might take _ | Opposition that the Government matter be referred to the Speaker the company out of the hands of | should not be expected '0" act as for a ruling, and that in the mean-- the receiver that the administration referee," Mr. Heenan said. "That is :'iime tll'\e debate 'be held over until iwas prepared to turn over the tim-- {the very reason we amended the s ruling was given. ber limits. | s tks s s "He is prejudiced," continued the "Fon. Leopold Maceulay was ot| !1937 .Order in--Council and_announced Premier, "and accepted a retainer 'opinion that if the same assurance icontmuance of timber rights after from the very interests he now at-- 'had been given in 1937, before: the company has been sold or re-- ten}pts to s:rve in thi& debtv;:e-" y values decreased and the outlook of ' organized." "I am not representing these in-- the security holders was different, | 4 t@rests, and I have a right to con-- th: enutirey i atter --would have l Mr. Roebuck sald. announlcement tinue the debate," insisted Mr. Roe-- * been cleared up. _of the new Order--in--Council had buck. _given bondholders the idea they bu'{h\:h:':l.tl:eraw:st tl:;n c:tr;cludte;lde. | Urges Equity Protected. | may "put the screws on and obtain | came io ths vounk, * in the confidence o i p P eimwoods--Toronts member empha-- Rip}r&?" ::etolrc'l theePrime Ministert, | this vi\luable property for them-- sized that he had not voted, so that "who is a cold--blooded and shrewd selves. . there could be no question raised New York business man, not in the tHe reterred io Premier Het as to his interests in the issue. paper business at all. You are hand-- burn's remark that Mr. Heenan, In the debate, Colonel Drew again ing over the second largest paper "the Minister of Lands and Forests, pressed for further protection for industry in the world into the stock nearly lost his lx{e in conf_erence A the junior security holders, and [brokers' hands." \few years ago with security hold-- Leopold Macaulay accused the gov-- | He claimed that the equity of | ers," and added: "But I would sug-- ernment of "handing over the sec-- shareholders in the company should lges§ he put on armor plate and try ond largest paper industry in the be tected & as the equity of again." world into the stock brokers' dhppnputipdvbrig st t sq Y t Mr. Roebuck said he preferred to hands." :o:-l:crl':::x':'e;:a}sti:rol'necwcx'tegagaexallas:-t ' take the assurance of the govern-- Demands Memoranda. Hepburn claimed that protection for lgent .:hat 1 (:he t recent bOrc'!;;:-;g: j [all the interested parties rested in | | OS ROLC AD ) id manie ong|oe Colonel Drew said the house ,' Mr. M \ ers to coerce junior security hold-- should have all memoranda and the Supreme Court. Mr. Macaulay _ | oys "put if it does the Premier will data regarding the Abitibi an-- inglcated assent. | be held responsible by 10,000 junior nouncement, so as to know the facts Well ",}3"' what are you wWoOrry~ _ | security holders," he added. on which the decision was reached ing about?" asked the Premier. ; me--*m>= to announce the order--in--council ex-- I am worrying because Ripley tending the company's rights to the Ripper came up from New York i"'""" limits. and ripped away all the Eights.of "The government is acting as the Canadian stockholders," replied judge and jury in the case," he said. the Conservative member, f "Without all the facts before them, "The poi'nt I want to make is this. they are deciding regarding two If the Government or the Minister % R plans which have been in court of Lamrds and Forests would exer-- without their proponents reaching cise a little pressure in an equitable 'any agreement." way the parties would be brought & to an agreement."