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ONTARIO TAKES tlyum DEBT DUE TO RADIAL virtue of the Queen that the propose! and finances for this Govcmment lo tepair the ancient wrong done these municipalities," announced the Treasurer. "lt has decided. in conjunction with the Hydro-Electric Commission, to assume the full amount of this indebtedness and to completely relieve the municipal- ities of any share in the loss by cremating their bonds so deposited and certifying them to the full pa)- ment of all obligations imposed by Virtue of the Hydro-Electric Rail. "ay Act. 1914." Rubin Radial History. Ret-bwa Radial History. In review. he said in 1914. in tear ot suiplus power accruing from the Queenston power development. the Hydro Commission and the Con. servative Government of the day undertook the promotion of a radial system. He said the fifteen mu- nicipalities were induced to "enter into agreements for the construc- tion of Hydro radials and to guar- antee the cost thereof by depositing their municipal bonds with the com- mission. The Hydro. with the Government or the day. undertook to construct the lines and to operate them." He asserted that alter the "ex- tremely hazardous character of the enterprise became apparent" a Royal' Commission itt 1920 was ap- pointed to investigate the situation. In 1922, without the consent of the municipalities. the Municipal Elec- tric Act, 1922. was passed. repealing the 1914 legislation and thereby eart- celling the agreements with the mu- nielpalitietr, _ . .. " .. LAW WAS CHANGED Repair Ancient Wrong Done l5 Municipalities, Premier Hepburn Says "The radials were not built." said the Premier. "and the large sums ot money already expended by the Hydro were charged against the municipalities' bonds so deposited in spite of the tact that no radial rail- way had been completed as agreed. Since 1922 these municipalities have incurred great losses in financing as the result ot loss of credit through then outstanding bonds" It re balance by H has now becom improvement liaaheth War: posed radial ac tyy ossit 55.471923. , , Totals-Port Crown-St. Catharines, 1875751518. "1.360.160, I Toronto-Port Credit-Township of lTomnto. 864.272.33. 5220.542: Township of Etnhimke. 8116.960.66, $401,335: Iris lage of Port Credit, $15,7M.74. 854.050; Toym_of New Iprqnto,_§g31910_.93._§§?.- Suit Wu "at". That the issue was a live one is attested by an action begun on April 21, 1927, hy the City of Si. Catharines, asking for the return and delivery by the Hydro Commis- sion, free from any charge or other claim. the debentures and interest coupons which tho city had de- posited in compliance with the orig- inal agrccmcnt. and for a declara- tion that tho thy was not in any way indcbtcrl to the Commission in t't'hpN'l to any oxpcndtture made by tho Commission. Tho claim was not admitted by the Ontario courts and in finality, an appeal taken before the Privy Council in 1929 was dismissed. In the action. the Hydro Commission counter-claimed for payment by St. Catharines of the city's share ot the cost incurred by the Commis- sion and also asked for an order authorizing the Commission to sell the debentures for the purpose of satisfying the amount of each share. List Murtieipa11ties. The municipalities. with the amounts of their indebtedness, to- gether with the debentures await- ing cremation. are as follows: Port Credit-SI. Catharines-Township n! Grantham. SIM-12.77. 5141.604: Town- ship ot Loulh. $41,473.31. 5621.935: Township ot Clinton, $34.872.86. 8521' 954: Township ot North Grlmsbv. $31.~ 216.69. 3468.126; Township at Burton. 320.941."). 3314.030: Township of East Flttmboro. $1953.54. 8294.320: Town- ship of Nelson. $2'h500.26, 3413.744: Township of Trafalgar. 539556.53. 994.690: Township ot Toronto. 517.- 893.82. $268.35. - 7 Village of Beamsvillo, $3,788.67. 856.- 815: Villagr ot Grimsby. $7,494.86. $112393, Town of Burlington. 310519.42. 31599 St't: Town of Oakville, 814.9503. 8224e "mammal; a both radials. 622.82. 816,469,733. 2M; "rown in Mimlco, 332306.90. 3111;- 'i/lt, Jil" ot Toronto, t1,23lVt1B.08, 54.- - 'faiis-roronto-Port Credit. $1.489.- 077.74. 35.109573. Grand totals of both radials. 82.246.- V Town of Rurllnztnn Mtt; Town of Oakville 194. MARCH 15 City ot St. Catharines. 545314.79. 885:". City at Hamilton. 34.32.043.21. Ontario Department of Education grants in the coming fiscal year will reach a record total of $13,588,630. Premier Hepburn disclosed yester- day in his budget address. Error in School Granf Totals Necessifafes IS P.C. Reduction The department, he said, is ask- ing for an increase in its cslimates "to provide for the payment in full of grants to public and separate schools." Estimates tabled following the budget presentation. showed that public and separate schools ASK IF SURPLUS ilNDICATES VOTE The Ontario Government's surplus! of $12,600,364. announced yesterday" by Premier Hepburn in an interim statement on this year's financing, has been equalled previously in his regime only in the 1937 election' year. On March 12, 1936, the Treasurer forecast a surplus of $597,985. On March 9. 1937, he reported an in- terim surplus "an honest surplus, twelve times as great as that esti- mated. a real surplus of 87,34T,729." But when the final returns were in, nary revenue. t80,488,439, surplus, $9.312S38: 1937-38, ordinary revenue, S86,052,792, surplus. 84,609,'718; 1939- 40, ordinary revenue, $88,172,951. deficit, $3.234,096. - " The estimate for the net ordinary revenue for the current fiscal year has not been given. Mr. Hepburn forecast last Feb. 13, net ordinary revenue of 889,051,209, and gross ordinary revenue of $90,255,983. and net ordinary expenditure of 888,6Me 970. and gross ordinary expenditure of $99,535,122 and a surplus of $356,- 230. He now has reported gross ordinary revenue of $114,056,264. and Igross ordinary expenditure of $101e :455.900. and a surplus of $12,600,364. 313.938. the ne Members of the Legislature last night were not discounting the fact either that, in 1935-36. there was a deficit, as there was in 1939-40 and, with Other signs of an approaching election. held that the coincidence was significant. This is what the record shows: 1935-36. ordinary revenue, 365326.984. deficit of $13,342,70r, 1936-37, ordi- will be given $4,860,000 in grants, as compared with $3,730,000 in the current fiscal year. Am-ording to Dr. George F. Rogers. Deputy Minister of Educa- tion, it had been necessary to re- duce grants hy 15 per cent. this year through an error in estimating the total required. Grants for vocational oducation, which is taking a promi- nent. part. in industrial classes for war production, will be increased from $1,525,150 to $1,858,450. Figure ls the Largest Since 'tT-Election Year RECORD " YEARS t surplus was actually $9,-