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Toronto Saturday Night. On April 5th, the Ottawa " Jour- nal ” came out with the following exposure at one of the biggest grafts .hat this country has ever seen. yet up to the present no other represent. ative dailv paper. with the exception of the Toronto " News.” has had the courage to take the matter up. run: STORY IN SKELETON. 1. Eleven days before the general olection of 1896 an order-in-Council was passed by the Conservative Gov. ernmen: of the Dominion, giving to It. M. P. Davis of Ottawa a contract to supply light and power on the Cornwall Canal at high prices for 21 years. with mt calling for other 03ers or any information as to prices. DURHAM CHRONICLE Durham, June 9, 1904. 2. Twenty nine days before the Davis or b generel electien of 1900 the Liberal; Government enlerged the contract of Ir. Devin in a way enormously ad- 5 nutngeone to the contrnctor, and ' Chapter extended the term of the comma to ’ before the eighty-three years (seventy-nine, This time from that dnte ) 3 ment in m 3. Mr. Davis in 1902 rendered an account for light. which had been Inpplied only in part. and for power which hnd not been supplied at. all, yet for which he nppenred to have a 1.3:) right to chuge by the terms of the Inter contract. 4. The Dominion Auditor-General, meeting the account and becoming thus eagnizant of the matter attempt- ed to upset the contract. Failing in that. he made such a fuss that the Laurier Administration appointed experts to examine the conditions; and, in consequence of the contentions d the Auditor-General and report of experts, the Government forced amendments upon Mr. Davis which will render the Government pay- ments under the contract probably has by over half a million dollars than they would have otherwise have and, in consequence of the contentions The Liberal Government on October 01 the Auditor-General and report 0‘ 9, 1900, passed an order-in-Council experts. the GOVGI'MDOM forced fixing it that the number of lights a-endments upon Mr. Davis which Mr. Davis should be paid for should will render the Government P35“ '3 be not less than 250. whether used or .ents under the contract probably not (so Mr. Aylesworth, K. 0., later has by over half a million dollars interpreted the agreement), and that than they would have otherwise have ' the power paid for should be not less been. than 400 horse-power. whether used 5. Nevertheless. a point which 01‘ 00‘ (M“1 Mr. D3Vi3 actually put in the esperts insist upon as important, ' e bill for $19.18? before any power finely, that the Government should was used. - m power to revise the prices at: And by further order-in-Council on “intervals, was ignored by ; October 16. twenty-one days before she Government. ' § the general election. and upon a fur- . lA_ I.-- CI__._1 __ 6. There does not seem to be any constitutional or puliunonury safe- ”ad min” my Moot. doing the .3. nor: of thing, or worse, when- “ 1‘ pluses. Chuice Clovers . other Graces. Steele’s Royal Giunt Suzu- Bdoc. Gian: Yellow Mangel. Sowlog and Gate Post Mange}: Bonnie’s Mammoth White Cnrror. ma J. “a. Bonnie’s Giant Sugar Mangel. These are all thorough- ly tested and the best vatieties plocurable. Dwarf Essex Rape 8: Lawn Grass Garden Seeds. A complete as- sortment by package, ounce or pound. If you have any Potato Onions to sell bring them in. MacFAHLANE 8: CU. POLITICAL CORRUPTION. W. IRWIN. Editor and Proprietor. Draggists and Booksellers ONIONS are very scarce. We have a few Dutch Sens â€"-all we could get. Is what you will ex- perience if you pro- cure your SEEDS from us. We keep only the best. 10' m at which in. an 1 mm. b’l biz blun- ’ correspondence from which this atory .ia extracted, was laid before Parlia. ‘ ment last week. At the time a brief . mention appeared in the press of the i Davie transaction , Only a few copies of the blue-book had at that time been ', printed. however, and a cepy was not 'at the time available to the “Jour- nal." The full story is given at the FearlieSt convenient moment. u-yVV. C--. l A point to be borne in mind is the! lcurrent conviction that political lead-3 Chapter 111 brings the Auditor. ers. especially those of whatevericonuu on the scene. party may b" in 90"" 8° ‘0 con- Along in 1902 the first bill of Mr. tractors and other persons W110 d° Davis came in to the Government. business with public money, to get - It was for light ' 3 large subscriptions for political pur- . 5 ° - - I The Auditor-General asked first for ”WP" f" "“h‘" '1’“ T” ”9 lproof um .11 the lights billed for hadl . ular conviction is that a lavish recip. , been in use They told him that that ‘ rocit exists between contractors and z , . . y ldld not matter. as Mr. Davns was en : é . . .1 political leaders. The pepular con . titled to be paid for anything he chose ‘ gvtction is that the politicians often l to bill for up to 250. The Auditor- l . o . ,scra.ch the backs of contractors with , General appealed to Mr Aylesworth, leasy contracts, and that the lavoredg K. C. At first the Auditor-General' icontractors scratch the backs of the; . . h M D . ld , ikind politicians with large subscrip- % 30‘ an Opinion t “t r. aVis cou. n t charge so; and then later an Opinion , i tions at times when the money will . . . 1 ado the politicians the most good ,tbf“ M" Dans could. Thls mixed ‘ . i things up rather. The ”Journal” does not wish to . treflect upon the contractors, nor tobe', The. Auditor General also tackled ' the price. As tenders had not been t b t d . T 5 . a??? 51.039 Disapubligeoglgéne tfirsglcttlled for, the auditor wanted Mr’. ’ public trustees who in their positions ? Cellingwood Schreiber to certify that I | o H ' ' H of public trust deal with the nublic’s the prices were ‘3" and 1““. 88 . . . .the law requires in certain cases. rt wa the . . . . prope y m a y m Whmh y - )lr. Schreiber declined. He said it would not dream of dealing with their .. . . i was none of his busnness. as the con- . A ' l l . 0WD “3 99’3“] who won d say : tract had been awarded by order-in- H e M e H 0 ’ ‘ ° . that on r 333‘" “Dd far more iCouncil. Mr. Aylesworth, again ap- the Hon. M" Sutherland, or anVipealed to. ruled that Mr. Schreiber Cabinet Minister, would have made. , was right. ;' with his own property such contractsfi . . . as these Ministers signed with Mr. Then came In 8 bill from Mr. DIVIS Davis regarding public properltygfor 319.182, for power. There had would simply set himself down as a i been no power used. The Auditor- fool. They would not. Why didgGeneral raised more Cain. He was they do so as public trustees? fat 6'3?- OVBTTUIBd by the Treasury 'Board (alias a committee of Cabinet He was a private business man, look? Ministers), Wbmh possxbly. d‘d ”or .quite catch the paint at first. and ing after his own interests. If he , may have been giving big election ‘ mar have thought ”Id“. Anditor-Gen- euhqcriptions. that to him would beiera was m some.e or inary tantrum â€"â€"but the thing was too gross and sim l ' art of his business rice. Ap i: p 1 A (1' G p1 L d' dangerous, and suddenly caught the 9 (”me u itor- enera "' or ' Government’s attention forcibly. what a lonely. game old tighter lie is . :Tbe order overruling the Auditor- General was rescinded. Mr. Davis is in a diflerent category. .__ _-- 4...". “mn'\l‘n THE STORY IN CHAPTERS. Chapter I. Chapter I of the story dates eleven , days before the general election of 1896 That’s the sort of time when , governments want subscriptions bad- :ly. This agreement was signed two days after the general election of 1896. . but that was merely a formality. An . order in-Council authorizing the 9 agreement had been passed by the ’I‘upper Cabinet on June 12, eleven ’ days prior to the election. The agree’ ment gave Mr. Davis a valuable site and privileges for water-power in connection with the canal for a rental of $1.000 a year, and gave him a con . tract to supply all the light and power required on the canal for twenty-one ' years thereafter on the following ' terms I - Bad as thxs contract was in its Lmethod. Mr. Haggart put in it a iclause which has probably saved the country from millions of eventual 1 loss. This was, that the Government could at any time expropriate Mr. ‘ Davis or his successor in the contract. Chapter II dates twenty-nine days ' before the general election of 1900. This time there was a Liberal Govern- 3 meat in need. This is the worst era of the busi- ‘ness. The first contract merely stipulated ’that Mr. Davis should supply such ,quantities of power and light as the 3 Government engineers should call for; and the agreement was for only 21 1 years. Mr. Davis is in a diflerent. category. He was a private business man, look- ing after his own interests. If he may have been giving big election subscriptions. that to him would be simply part of his business price. Hon. John Haggart, Conservative Minister of Railways and Canals. and M P. Davis of Ottawa, contractor for the building of the Cornwall Canal, signed on June 25.1896. an agree‘ ment and lease giving to Mr Davis a contract of great value in connection with the Cornwall Canal. For power. 863 per horse-power. Power was selling cheaper elsewhere at. the time. For light, 30 cents per night arc light. In the city of Ottawa at that time, for lights of the same power. the civic contract was for lights at considerably less than that. The Auditor-General subsequently challenged the department to show that any eflort Whatever had been made to get information as to prices elsewhere before making the agree- ment with Mr. Davis. The challenge was not accepted. The Liberal Government through the Hon. James Sutherland. acting Minister of Railways and Canals, and upon his recommendation, made the contract worse for the public in al- most everx conceivable way. At the time this agroomont to pay 863 a. honomower for 79 years to com wu and. by a. Liberal Govern- no”, the I. B. Eddy Conway in And by further order-in-Council on October 16. twenty-one days before the general election. and upon a. fur- ther recommendation by Mr. Suther- lmd, the Libernl Government mode this most extroordinery agreement (which had but. 17 you-e to run), good for 79 you: thereelter. A SAVING CLAUSE. Chapter II. : The Auditor-General asked first for proof that all the lights billed for bad ‘ been in use. They told him that that ‘ did not matter. as Mr. Davis was en - titled to be paid for anything he chose :to bill for up to 2:30. The Auditor- ;General appealed to Mr Aylesworth, : K. C. At first the AuditorGeneral got an Opinion that Mr. Davis couldn’t i;charge so; and then later an Opinion ithat Mr. Davis could. This mixed : things up rather. Hull. under the shadow of Pulit- ment Hill,w:s buying horse-power 10:815. One thing the public may be thunk- fnl for. The Government did not ab- rognte the clnnae entitling it to ex- preprinte Mr Davis. That Stood. Lucky that Mr. Huggert had put it in. Chapter IV is a sort of sidelight. 05 goes the Auditor-General to find out what electricity on the Soulanges Canal costs. On the Soulanges Canal the eletric plant is worked by the Government itself. The Auditor- General gets an official report that the Government plant cost $160,000 to install, and is operated at an an- nual cost of $5,000 a year. Allowing 10 per cent. for interest and depreci- ation on the plant (16,000 a year), the annual cost thus would be $21,000. Reports of engineers secured by the Audltor-General show that the needs of the two canals for power and light are about the same. The price which by the terms of the contract of October. 1900, Mr. Davis was to get for light. and power for the Cornwall Canal was $52,575 a year. s Now appears an expert commission appointed by the Government to look into the conditions and prices of the Davis contract. The commission con- sists of three electricians. Louis D. Herdt, A. A. Dion and Roderick J. Parke. These reported in February 1903. that they think that for the original date.1896, and under the then cir- cumstances. the price for light and power which Mr. Davis was given were reasonable. They were careful not to extend that to the prices in 1900. They aimed evidently to let the Gevernment down as easily as possible, but after detailing many reasons why the contract was not so very bad. they concluded as follows: “ Whilst the principle of basing charges on the maximum power and maximum light as a fixed amount to be paid yearly, is just and fair under the conditions existing at the Corn. wall Canal, the eflect of charging for the quantities agreed upon in 1900, namely, 400 hp. and 250 lights all the year round at the rates of the 1896 agreement. is to make the cost of these services at the present time much larger than warranted by the rates generallv prevailing for similar services. “ In conclusion. now that the con- ditions as to capital investment and cost of operation can be determined, we would recommend that the Gov- ernment endeavor to eflect' a com- promise with the lessee. "Such compromise, While reducing annual charges to be paid in the Government, should secure to the lessee an annual revenue over and above depreciation and cost of Opera- tion. representing a fair return on the capital investment; we have estimated the capital investment re~ quired for the supply of power and light on the Cornwall Canal at $162,. 560. This return on investment should in no event exceed twelve per cent” thus : Depreciation (Addendum ‘E’) $ 9.400 Opperation expenses (Adden- fi AAA you. E) ............... L 9.600 Rental of water-power ...... 1,000 Twelve per cent. on $162,500 19,500 “ This amount of $39,500 represents in our opinion, a reasonable com- promise under all existing circum- stances, but any compromise that may be efiected should provide for resdjnstmeut of charges by mutnsl agreement or srbitrstion, st stated intends, not exceeding twenty-one yours.” Mr. Duvia, it. will be rememiored. was by his contract to not. 852,575 a Mgk’g the annual payment. of $39,500 Chapter III. Chapter IV. Chapter V. Has . .. Anybody IF YOU are interested call on us. We \\ ant vom trade. If priees.va11etv and qualitx count “e should get it. Finally. the Government took ac- tion. Here came in the luck of that saving clause of Hon John Haggart’s, that the Government could expro- priate the plant at any time. By virtue of that clause, doubtless, the Government was able to put pressure v-v on Mr. Davis. At all events. Mr. Davis agreed to a reconstruction of his contract whereby he abandoned a large amount of his claims up so that time. and accepted lange modifica- tions of what he would by his con- tract of 1900 have heed entitled to charge for the next 79 years. The new agreement, in other words the contract which now exism. difiers from the old one in the following re- specte: Instead of a minimum of 250 arc lights every night all the year round to be paid for by Government whether used or not. Mr. Davis is to be paid for 250 lights per night during the navigation season (specified to be eight months) and for 100 lights per night the Heat al' the time. Instead of a minimum of 400 horse power to be paid for by Government, whether used or not, Mr. Davis is to be paid for at least 1‘27» horse-power, and for whatever more is called for on the canal by the Government chief engineer. Also for the time previous to the new agreement Mr. Davis agreed to accept payment for only such light as had been used, and for power at the rate of 125 h.p. instead of 400 h.p. The details are technical ; but they are summed up by the Auditor-Gen- eral thus : “From this final contract. the third, the present value of the payments to be made, presuming that the require- ments of the Government on the Cornwall Canal remain as they are now, will be $680,000 less than what it would have been if the second con- tract had remained unchanged. The requirements are, I know, to be in- creased. but from all the prospects it seems that the prOSpective sav1ug cannot be less than $500000. The saving from October 24, 1901, to this date had been $52,000.” Finale. Two things remain to be noted: 1. The Government paid no atten- tion to the recommendation of the experts to provide in their .. com- promise” with Mr. Davis for " readâ€" justment of prices by agreement or arbitration at stated intervals.” Of course. as they point out, the right of Gaternmeut purchase compensates to a considerable extent for the ab- sence of such arrangement. “ NOTICEâ€"I. was consulted about this contract and assented to it. ‘2. The only public salvation throuhout the whole business was that clause about GOVernment pur- chase. But for that the deeperate contract of 1900 could not have been ”compromised.” Mr. Davis would have been impregnable for 79 years. Butâ€"and this is the vital point of the wholeâ€"there is apparently absolutely nothing in law or in parliamentry practice or in the power of the Audi- tor-General, to prevent any foolish or reckless or corrupt Cabinet by mere order-in-Council binding this country to ruinous bargains with contractors or political favorites or anybody for seventy-nine years or seventy-nine miliion years. There is nothing to require a Cabinet to put in such a saving clause, either. as Mr. Haggart put in. Finally, but. for the Auditor Gener- al. nothing of all this would have come out. For the Coneervatee, as well as the Liberals. are in the pickle. although less so. Let us show you whn we on do fotyon in ready-mode clothing und you will be ogroubly surprised no others hove been. H. E'Iocklor’s. A customer of ours who had been sufiering from a severe cough for six months. bong ht two bottle of Cham- berlain’ 8 00118311 Remedy from us and was entirely cured by one and a half bottles of it. it gives perfect saris. faction with our rudeâ€"Hyma- Parker Ce., Lineville. Ala. For sale by H. Parker. HARDWARE AND TIN WARE. An Aggmvating Cough Cured. Found in Grey_ County a place where Hardware and Tinwsre can be purchased with so little money as at our store? No, such is impossible. We have an endless variety of every description which is go- ing at a low figure. Opp. Caldwell’s Livery. F. Siegner Chapter VI. -o.o.â€"-¢ Crowds of People Al= ways go Where the Greatest Attractions are to be seen. Our New Spring Footwear has attracted the at- tention of more people than ever. This proves we have Nifty Styles, High Qualities and Low Prices. Here are some ideas: Women’s Dongola Strap Slippers for ................................ \Vomen’s Light Wearing Laced Boots for. .. . .. . . . . . .. Women’s Commonsense Dongola Gaiters {or ......................... Men’s Fine Dongola Laced Boots for ................................ Men’s Good Box Call Laced Boots for ............................... Men’s Vici Kid Laced or Bluchers. Goodyear Welted, for ............. A host of Women's Fine Oxfords, ranging as high as $2.00 all for. . . .. A host of Misses’ Fine Laced and Buttoned Boots ranging as high as $1.60 all going for ............. oooooooooooooooooooooooooooo We want your FOOT MEASURE. We REPAIR SHOES quick and neat. Owen Sound and Durham The Annual Meeting of South Grey Farmers’ Institute will be heldin the on Saturday, June Ilth, ISM AT 1.30 P. M. FAHMEHS’ INSIITUIE The business of the year will be closed. and program mapped out and oflicers elected for the ensuing your. Mr. DUNCAN ANDERSON. of Rugby, Will give an address on hBreeding Hesvy Horses.” Mr. Anderson will also conduct a class for judging horses. end it. is hoped many of the young men will tske ud- vsntsge of this opportunity of get. ting a lesson in judging horses. W. J. YOUNG, GEO. 2 President. A joint meeting with the Women’s Institute will be held in the evening when Mr. ANDERSON will give an address upon "Farming as an Oc- cupation.” Miss GRAY. “Melting Home Attrective.” and, Miss RIPE, on “The Hygienic Influence of Laughter and Song.” Everybody is invitedto ell these meetings whether member: of the Institute or not VVomen’s Insutute will be held in Holstein on June 9th; Dromore. June 10th; Durham. June 11th end Elmwood, June 13th. The spetken will be Miss Lillien D. Gray, Toronto. and Miss Lizzie Rife, Hespelor', TO WN HALL; DURHAM Women’s Institute. - SOUTH GREY PEEL, the Shoeman Boar for Service. MPROVED L; RGE BERKSHIRE. will be kept for service during the sun: - mer at the home of the undersigned. Dur- ham, near Camp Creek. Given Away Free Shoes from 25c to 35.00 Alsc Thanh. thicea. Club Bugs, etc. promptl I ind Custom work done as y u mible. “h" “I! plumâ€"Next to I). Can ' .' Ilmmnt Wurehouse. May 18â€"2 111.â€" Lr Waited, for. ‘. in: LS high as 82.00ttllfor. 10H No matter how are they look better ughve-n. azatluy- Polished. We heve just re- ceived a lot of Shoe Dressing ‘nd W0 W‘nt "(In in 013-. :0 Besides these we have a lot 0{ other dressings in Liquid and Pate. STRICTLY CASH SYSTE M. we want you to test it '. LAXG, Proprietor old your shoes ith 1.00 HEAD STONES of the best ‘ BUGS that will dry “a the] CHURNS. the 1 human T wx. DILLON 11le To our Fri and Custom Au. Won Gum let live" PRICI DEER] NU l lm DO“'S\\' ICLI SNOWBALI IIGCLAR NEW Pun RAYMOND S Pumps. PAL M EBSTl WILKIN WEDDING Pl PAINTS FLX 00A] HAMMOCKS l m): 1:1 a proper tende JOHN CURB wan muket kind that ox on their that wi Wrinuer not tour. Stoves fume BI This in t dings. am no well very suit You an my price. ply to Sh it is fixed like SiSt Mowers Shears. Hoe ll H M Web 0‘6185 Ill resents 081 on OlI (‘IIIHI RI LEAVE Kl “'Pt' lle M