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APRIL 25 Sold to Syndicate. Mr. Walters said Ontario's issues were purchased chiefly by a syndi-- cate of chartered banks acting through Wood, Gundy & Co., and claimed that Ontario secured its loans at a rate which compared I more than favorably with the other jurisdictions in the Dominion. * He admitted to Opposition ques-- tioning that the province's ability' to obtain cheap money was an in-' dication that business was in a +« sick condition. "Cheap money is R.fi"e'd to BUY TfOOSUl'y nearly always an indication of bad % c limes," he added, pointing out that '"IIQS O{ ThlS PfOVlflCO. fow investors wished to let money Fie Tells Public Ampounts! ; ut n Wt L inke troont government Commiflgg of I_Qgi;lgfure Mr. Walters emphasized that, as dlller es ue irete prvimetitireevergs a policy, the cabinet, near the end of the fiscal year, passed an Order-- TENDERS NOT CALLED in--Council providing that all ac-- wuenmmmmmmctcemmmmnmseme counts properly applicable to the Charging the Bank of Canada fiscal year ending March 31 must with not giving the support to On--| be in by April 20. He was satisfied tario it should, Chester Walters, there was no outstanding highway Controller of Revenue, yesterday' accounts at the present time, and * before the Legislature Public Ac-- declared he had no knowledge of a counts Committee, quoted Governor report there were a number of high-- * Graham Towers as having told him way contractors' accounts held over in the spring of 1935 that the bank into the 1938--39 accounts from the "would never buy treasury bills of fiscal year preceding. * Ontario except as an open market He believed the Ontario Hydro-- ® transaction." Electric Power Commission would Mr. Towers, he said, had been ultimately pay off its debt to the "very friendly" during a conlerence province and would undertake its with members of the cabinet some-- own financing. At the same time time previously, But at subse-- he was doubtful if the Hydro, to-- quent meeting with the bank gov-- day, could borrow at as low a rate ernor, said Mr. Walters, "he had as the province if the Hydro bonds , the cold eye of a banker and said were not guaranteed by the prov-- | the bank would never buy them." ince. "Perhaps," suggested William Questioned by Mr. Macaulay, Mr. Duckworth (Con.,. Toronto--Dover-- Walters revealed there was no defi-- court) "that was about the time the nite earmarking of funds for high-- government was considering repu-- way expenditure purposes. dia'ion of the H,\'dro oentracts." "Have you considered the recom.' Mr. Walters assented, and em-- mendation of the Chevrier Commis-- | phasized that, while the Bank of sion that funds be so earmarked?" | Canada refused to buy Ontario Mr. Walters said he had not read treasury _ issues, it had _ pur-- the commission's report and de-- chased debentures from one or clined to give an opinion as to more of the Western provinces. He whether or not the recommendation | + said he had mentioned the bank's should be acted upon, on the ground policy to Finance Minister Dunning that it involved government policy. and the minister had replied that he "didn't interfere with the Bank of Canada at all." ; No Tenders Called. & Mr. Walters, called before the committee on motion of Leopold Macaulay, revealed that the gov-- ernment did not call for tenders on Its loan issued. He said that on the one occasion | tenders had been called by the| Hepburn administration, none had| been offered. Colonel George Drew, Opposition Leader, reminded him that the one occasion had to do with the situation arising from the repudiation of the Hydro bonds "in which the brokers themselves de-- * cided not to tender." | "Don't you think tenders oux:ht! to be received on a great funding| operation of $46,000,000°" asked Mr.: Macaulay. | *"No, I don't," replied the witness. "I think that in the experience of this government better prices can be obtained by negotiations rather than by tenders." : Mr. Walters believed Ottawa se-- * cured its loans by both tenders and negotiations and held there was a bigger demand for Ottawa's issues. "And besides, the province is not in the same position as the Do-- minion," he added, "the Dominion has the Bank of Canada behind it." "Is there no competition among the banks?" pressed Mr. Macaulay. "Well, I think they all drink their coffee together," replied the treas-- ury official.