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Unless the Dominion Government recoups Ontario for losses in mo- tor vehicles and liquor revenues, estimated at over $12,000,000. the Province will find it necessary to curtail its activities or impose new taxes and renounce the Dominion- Provincial tax agreement, Mr. Hep- Members on both sides of the Legislature Were electrified. and some Liberal benches applauded, when Erie Cross, former Minister of Welfare. interrupted the Treats.I urer to take exception to his lan-) guage in describing the Ottawa Ad-' ministration as "despoilers, violet-i ms of a sacred agreement" and) "men without honor." Mr. Cross der' claret] that "this whole attack is; inspired by the Provincial Treas-I Urer's own dislike and feeling to-i ward the Prime Minister of Can-i ada." ' Losses of revenue from alcoholic) beverage sales would reach S7.100,-i ooo, and from motor car taxation! would be approximately $5,000,000,l said the Treasurer, in supporting tl motion to adjourn the Legislature) until March 9 because at present it! was impossible to prepare a budget.} It was necessary. said Mr. Hepburn, y for Ottawa to recoup the Province'; for its losses or rescind the regula-i tions which deprive it of antici-I pated revenues. 1 He quoted from a letter froml Hon. J. L, Ilsley, Finance Minister, written exactly a year ago and promising that there was no inten- tion to invade the field of alcoholic liquor regulations. On such assur-l ance. said Mr. Hepburn, the Ontario! Government had allowed itself tof be "bludgeoned" into relinquishing corporations taxation and income, tax revenues. i one-time chief, and Mr. Hepburn ao: cused him of "kowtowing to Ot-i tawa in the hope of getting a; judgeship." j The motion lo-adjourn the M35- sion was carried at the conclusion of Mr. Hepburn's address. Altercation With Cross. Throughout his address the ex- Premier bitterly attacked the Fed. eral Government. and at one point he turned and looked behind him to where his own followers sat and declared: "Only the most partisan persons here will tail to understand the significance ot 1yrat I am saying." Eric Cross (Lib.. Nortolk-Haldi- mend). former Welfare Minister in the Hepburn Cabinet, protested against the language used by his taxes and Provincial burn said In a violent attack upon the or. taua (Joveinmenl. during which one of his former Ministers de- nounced him "because his Judgment has become warped by his hatred," Provincial Treasurer Mitchell F. Hepburn yesterday announced that Ontario must curtail its activities unless the Federal Government re- coups the Province tor lost reve- nues. Hepburn Says Ottawa Violated Agreements Liberal Members Applaud.Cross for Checking Treasurer's Tirade-- House Recesses for Two Weeks violent attack upon the Ot-, "I would rather kowtow to a Jovcmmem. during whichirf'nse of decency," retotrted. Mr. his f . -..r Mi .., Cross. "This whole attack Is In- _ Oink" Ministers d0'§.-ni.~!.rl kn tho TPt.rturirtrri:al Trsasascttts "A year ago we were hludgeoned into an agreement to give up Cots poration and income taxes, in re- turn for which we received a fixed grant, we received alimony. We made the best of a bad situation." "I want to show you what kind of Government we're dealing with at Ottawa." Mr. Hepburn went, on. ' "It we haven't money for Mothers' Allowances or the 16,000 persons in our mental institutions. they're going to suffer," he said, but added at once, "These services are going lo he maintained, regardless." Defending his inability to produce the budget until the Ottawa "raid on revenues" situation was cleared up. Mr. Hepburn pointed our that the money available determined the extent ot the Province's services. esp'u'iall.s in the case of a "paler- nalistic Government" which was "the clearing house for the worries we set the municipalities." "Don't look at mo." dpclared Col, Fraser. Hunter (Lib. St. Patrick. Toronto). Will Maintain Services "No one deplore; morn than I do tho humiliating spet-tar-le of this House having to i'Pt'ess while Wt' wait for our dospoilstrs to liro up to their uord," declared Mr. Hop- burn. As he mado this remark. Mr. IG, burn turned and looked at the Li oral harem-s. "l wasn't looking al you." Mr Hepburn ropljed, smiling slightly agreement and than breaking it. I want some of the membm's of the House who have a blind partisan adhesion to Ottawa to listen to what I am going to say." "All must realize, oxmpt the most partisan. that We must adjourn the House at this stage in order to await. like beggars with a tin ('tlp, the time when Ottawa will keep its pledges." "I have no intention of taking hack anything." flashed Mr. Hop- burn when Mr. Cross scored the tvterenrsv, to Ottawa made by the former Premier. "It's just another instance of 'rll feed fat the ancient grudgo I hear them" said Mr. Cross, quoting from Shylockk >pL'OCh in The Merchant of Venice. "They arn nl('ll without honor, and I propose to prove that statement." said Mr. Hepburn at the otttsrpt of his address. "They are something like ilitler's Nazi tactics. making. an Cross. "This whole attack is in- spired by the Provincial Treasur- er's own dislike and feeling toward the Prime Minister of Canada. His judgment has become warped hr. cause of his haired." FEBRUARY 20 10p. Lib. One more move by the Federal Government calculated to impair Ontario's revenue's, and the financial struvture of the Province would col. lapse, "and the municipalities will go dqwn with Us," Mr. Hepburn as. The loss in motor vehicle revenue would amount to an estimated sum of $5,000,000, continued the Treasur- er. He asked that Ottawa either cancel the regulations in connection with this field or similarly recoup the Province. "Ontario asks that the regulations adopted by the Federal Government be rescinded or withdrawn. or, in the alternative, that the Govern- ment of Canada recoup the Province for the loss in revenue that will be sustained," said Mr. Hepburn. Ottawa's plan of action, Mr. Hep. burn charged, "can drive the Prov- inces into a position where they will be impotent completely." He pointed out that the people are not so partisan today -- "they are con- cerned with honest administration. winning the war and rehabilitation after the war." "Something like Hitler, that's the way he did it," said the Provincial Treasurer. "Made an agreement and than broke it. Nazi tactics." And he added: "They've put tli: in the position now of beggars with a tin cup, waiting for our despoilers to do the right thing." It. was this outburst that brought Erie W. Cross to his feet with an appeal to the Speaker against Mr. Ilephurn's language. Best Revenues Frozen. "Relying upon Ottawa's assurance, Ontario entered into the Dominion- Provincial lax agreement. the effect of which was to freeze for the dura- tion of the war two of the most pro- ductive and elastic revenue items, the Corporations Tax Act and the Income Tax Act. Notwithstanding assurances made to Ontario and other Provinces, the Dominion Gov.. ernment issued the regulations set forth in Order-in-Council No. 11374 restricting the manufacture and distribution of liquor, wine and beer. This means an expected loss of revenue for Ontario in the fiscal year which ends March 31, 1944, ot $7,100,000. He said Ontario had offered to help Ottawa in every way. "We thought then that Ottawa was go- ing to prosecute a war." This Prov- ince had turned over to the Fed- oral authorities 148 buildings worth s16,000,000 without remuneration, nxwpt. that Ottawa had agreed to H'slm'P tho buildings in case of fire or lightning. Tho $5,500.000 build- ings at St. Thomas had been evacu- ated in six days, yet some time afterward Ottawa had only thirty men insidn them and thirty outside guarding them. The Ottawa Government had brokg en the agreement, he charged. "They; will only be responsible now for the! insurable value of the buildings -'; two-thirds of their value. They event failed in reeent, months to pay thel insurance on them. We had to pay! it, and we haven't been reimhursed! for. this or for capital expenditures! made by the Province. ': "They deliberately broke thet agreement." said Mr. Hepburn.; Broken, too, he claimed, was the Do-f minion Government's agreement: with the mining municipalities tot regard as a tax on real property and) not m municipal income the tax on ore used by tho mines, the main! revenue of mining municipalities.; "They made a reverse ruling and, violated the term; of the agree-3 ment." he dsilarerl, "impairing thej po<ition of the municipalities. Never) at any time have 1 had confidence, in the honor of the men who directl Mfairc at Ottawa." Mr. Hepburn con-L tinued. i Other Aereements Broken. Hon. J. L. llsley, Federal Minister of Finance. he r-hargnd. had agreed not to 0mm- tho field of Control of liquor. sales, then did.