> au fe 1 Tuesday, January 12th, 1926. "THE DAILY BRI | "NIAGARA IN POLITICS" By the Late Dr. James Mavor. % he above book which has reached fhe editorial desk of The British Whig, and which has been read with # good deal of interest, presents the Hydro situation in a new and criti- eal light. The book 'is attracting a good deal of atténtion, and the fol- lowing interesting review is taken from 'The Nation's Business," a business man's magazine published #t Washington. Wine ate Dr. James Mavor, emeri- professor of political economy in University of Toronto, complet- ed "Niagara in Politics" a little while fore his death a few week® ago, in which he analyzed from the view- point of a schalar, the political back- ground and meaning of the govern- thent-run hydro-electric power sys- tem of the Province of Ontario, Can- ada. "This power system is the model which advocates of similar govern- ment activity by the United States would follow in the development of lennessee River, Dr. Mavor's pub- ation came on the scene about the that he would renew his fight in Con- gress for this project, having but re- cently visited Ontario for a personal inspection. "Niagara in Politics," dealing as it does with the parallel of what is pro- posed .at Muscle Shoals, but without mentioning that American problem, is full of striking illustrations of par- ticular interest in the United States at this moment. In it Dr. Mavor, fully reviewing the history of "Hy- dro" in Ontario, unequivoeably con- demns its system for a long lst of fundamental reasons. Its chairman he describes as having been the "Dic- tator" of that Province for twenty years, The methods adopted for suppressing criticism and controlling public affairs, the courts, the press, and even the pulpit, are pictured plainly as "a reign of terror." Dr. Mavor claimed that the Hydro- Electric Power Commission of Can- ada from its beginning "has acquir- ed a strange hold upon Ontario, plunging it into over two hundred millions of debt and embarrassing its finances and its credit." He declared it had swallowed up its opposition through the popular method of lower-than-cost lighting rates, that the people and the press "have placed their necks blindly under the yoke of the politicians," and that by mono- polizing the political interest it had succeeded "in effectually disp-sing of the two-party. system by which provincial governments had previous- {y For Young or Old Dr. Hickey's Quickly banishes the troublesome cold or cough. 25¢. and 50c. 'L.T. Best PRESCRIPTION DRUGGIST 'Phone 50, To-night, Hockey tha Eh Corner p and Alfred Streets _ "Phome 2373-m. 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Oil Tanks made to Under- for storage of gasoline. ly been placed in power and dismiss- ed." ington, made a scientific the public-owned system of Ontario. His pamphlet was vigorously criticiz- ed by Senator Norris in the Senate, the Smithsonian Institution was as sailed, and Nation's Business was at- tacked Decause it published an ar- ticle by Mr. Wyer. Sir Adam Beck, head of the Hydro-Electric Power Commission, replied at length in an offended tone. The: conclusions by Dr. Maver, while they bear out those held in this country by opponents of goverament operation of industry, are decidedly. not those of a man of big business. All of his life Dr. Mavor has been identified with higher education and with pure research problems. In addition to his professional duties he was at various times intrusted by the British Board of Trade and the Canadian Government, as well as by important charitable and economic organizations, with investigations of labor conditions, immigration, rafl- | way rates; copyright, grain produc- tion and transportation, and other subjects, Because of the term "progres- sive," which is sometimes applied to those favoring government owner- ship, or operation, there is a bit of interest in Dr. Mavor's introductory reference to the history of national policies of that sort. He stated that "in the Middle Ages, before the growth of capital had reached any great dimensions, the exploitation of natural resources was in general un- dertaken by governments," but that in modern times the growth of capi- tal under private enterprise, and its distribution has made such action unnecessary, Opposes Government Operation. "Thus," he added, "for a modern government to embark in the opera- tion of industry in a developed coun- try is not only unnecessary but so far from being Aan indication of progres- siveness, is an indication of reversion to long abandoned and even archaic practic." "Niagara in Politics" has reviewed the situation surrounding the famous scenic spot on the American-Cana- dian border long before the develop- ment of+ hydro-electric power, and the picture embraces both sides of the national 'boundary line during their growth. "For more than fifty years," said Dr. Mavor, "every observant tourist who found his way to Niagara Falls has been impressed by the vigorous industrial development on the Am- erican side and the complete absence of any such development on the Canadian side of the Falls. While some of the reasons for this differ. ence le in the general economic his- tery of the respective countries, im- | portance must be attached to a dif- ference in the attitude of the people of the two countries, especially dur- ing the period of the great develop- ment on the American side. "In the United States the pre- sumption was strongly In favor of private enterprise, up till recent years even of unrestricted private enterprise. In Ontario during more than twenty-five years, positively, and during a longer period, incipient- ly, the presumption has been against private enterprise. The consequences of these divergent attitudes are seen in the'industrial development of the New York side and the absence of it on the Ontario side." Niagara was nof in' politics until 1902, but In that year there began a series of political controversies in which municipal councils and the Provincial Legislature were alike en- gaged, according to the writer, which were promoted and followed by a movement "the full consequences of which to the Provincial financial '| eredit and to the character of Pro- vincial administration have yet to be realized." With this frank attitude Dr." Mavor sketched the long and stormy growth of The movement as a political operation which he con- cluded is getting worse and worse. The agitation over obtaining elec- tric power for the municipalities con- tinued until the creation in 1905 of the Hydro-Power Commission which, it was claimed, was backed by great propaganda - for public ownership scorning "the idea that the carrying out of their projects involved spoila- tion." The pomise of "cheap power," according to Dr. Mavor, made the Hydro-Blectric Commission the real t of Ontario from the | spring of 1906 onwards. The first steps were to 'get legisla- tion which, 1 led by the | Last winter Samuel 8. Wyer, forithe Liberal' newspapers in general the Smithsonian Institution at Wash- { have déeply committed themselves study of | to a policy of 'public ownership' al- '| "Niagara Falls. Its: Power Possibili- | though the meaning attached to that tiles and Preservation" in which he |expression pointed out, among other things, a | 'public ownership' is advocated are number of matters in opposition to | variable." ' TISH WHIG which it was, would under existing conditiofis ! be fruitless and because PROBS: Light sniow to-night or Wednesday. Somewhat higher temperature. and the extent which It was further stated that the municipal politicians assisted the Hydro and that it 'had means of re- warding its friends either by con- ferring benefits upon the communi- ties to which they belonged and from which gratitude towards them might be expected, or by benefits of a more direct and personal order." Cheap power {is questioned as the chief motive of those who advocated it before the public. Hydro Makes Use of . Influence was obtained from the clergy in more than one denomina- tion, but "conspicuously," according to this author, in the Methodist Church "which for many years has been very strong in Ontario," and leading lay members of which are described as presidents of banks and other financial institutions, or other- wise "pillars of society." That Hydro obtained a series of acts from the Legislature condoning violations of law and controlling the courts for its benefit is one bf the startling assertions of Dr. Mavor, who claimed that.with this legisla- tion "the Commission removed any legal obstacles which stood in the way of the prosecution of their de- signs." One act, he said, placed the Com- mission "in a position of immunity from prosecution om the ground of arbitrary interference with or of in- jury to property." This law recited that no action should be brought against the Commission or any mem- ber "for anything done or omitted in the exercise of his office without the consent of the Attorney-General for Ontario,'. and Dr. Mavor declar- ed "it is clear that such a clause practically made the Hydro Commis- sion an irresponsible body." He claimed furthermorg¢ that a number of acts were commited which had to be legalized by subsequent legislation to make possible the sale of the Com- mission's bonds, "While the Hydro," he continued, "was closing the courts of law against persons who might feel ag- grieved by its proceedings, it did not scriple to appeal to the courts when such a course of action suited its pur- poses." ; Contracts made and the abuse of power by the Ontario Government and the Legislature were attacked, Dr. Mavor contending that they were permitted to exercise "almost sover- eign powers" with respect to the most cherished institutions of gov- ernment. Attention was devoted to the cheap |8 rates given to the domestic consumer and the higher charges to power companies, coupled with the predic- tion that the eharges must be in- creased. The following statements of Professor Mavor are of Interest: "That its ludicrously low rates for domestic use could not by any pos- sibility be sustained indefinitely with- out heavy cost to the taxpayer was i also disregarded. The Hydro had made a bid for political support and got that support by bribing the do- mestic users of electricity and by vastly Increasing their number by means of the bribe of low rates." Calls Hydro Financing Unsound. "The failure to provide a sinking fund for nearly all of the bonded in- debtedness in respect to the Niaggra development, which are operated by the Commission as private com- panies, in the same general manner and to the same extent as is done in respect of cash advances under the Power Commission Acts, has been in our opinion, unsound and unjusti- fled." Dr, Mavor reached the conclusion that the Ontario Hydro-Blectric Sys- tem is erroneously represented as an experiment in public ownership and "is really an attempt on the part of a small number of politicians to establish an industrial monopoly and to manage this monopoly in such a way as to keep themselves "in power," who 'voted themselves large salaries for their incompetent labors." & "The Hydro," he declaréd, "is much larger than its promoters ever dreamed of; it is a great deal larger than they can imagine. In point of fact, the Hydro cannot be controlled;' it controls both its own officials and the Government." In closing his book, Dr. Mavor| said: "Before the Revolution fn China, and perhaps even yet there might often be 'of Canton, for instance, a prisoner | DNESDAY DRESSES! Every Dress must be cleared regardless of any other form- er price reduction. They have been divided into four groups and marked at prices that will make instant appeal. Half . 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