£

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bt f Province IncreascdBy $758,994

ndcr, Mismanagcment Of ea ov

,,,. _ _ I 5% , ePeoples Paper y _ y y 3° i /--'“"""*'_ ‘ (lovers Prince Edward Ialandltihotlio Dew “id

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tt... clltlllunr all in/.1

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. . _

. _ _ __

MEREMAN

The real need for asklcflmg ll lollldhlng that we can hold and th# holds ua.

.‘ /_

~

““""iT-'-'=-i'5`i"i`-7-'5'°'-`°~ cnAl<Lo'r'rl:'rowN, CANADA, SATURDAY, APRIL 25, 1931 16 PAGES

Anno! lahporl lgle) out ny Inu LU._% at-lo.

T i '

from Ottawa Then we have the cause an arrangement was made, and

rm idollefbfed ll' . 00 lnled Ind Indiv- between the two overnments 8.5 to

various fees and licenses that are an agreement drawn up in writing

~ D0!! mp g ,

0 O _ ldulla throughout the Province. Next how that money was to be used. This

n S u l c ccoun ts we have the amount of taxes that Ciovernment could not expend that

are collected. Those constitute the money for any purpose except thc

_ _ . . - revenues of the Province. . I purpose for which it was allocated

' _ On the other side we have the ex. in the written agreement. Those

By 1 _a I penditure, classified under the var. moneys also were trusteed in the

‘ lou; 499|;-gm¢n¢,5, .3 Admlmmmnon hands of this Government and could

__ ‘ 01 ,1ug¢_1ce_ Dammmng G; Asmum not be put in the general revenues of

mȢ_ Department of Education De_ the Province. So closely was that

policy observed by former govern

Lea Government’s Boasted Surplus Vanishes and _Gives Place to De- ""*'“'“‘ °’ ““_‘°“° W°““- “M °“ ...,,.,_., ....,, ,,,. M..,.,,,,..,,, .,,,.,,.i

of $234,581. Its Juggling of Figures, Extravagance In Public

' Works and Other Departments, Neglect of Pre-election Prom-

ises Re Prohibition Enforcement and Inability to Formulate Any Plan for Raising Much Needed Revenue for the Prov- ince, Exposed By The Hon. J. D. Stewart In Convincing

Speech In Budget Debate. '

F.'lli<\l\'ln;: fr the speech delivered nythclloll. J. D. Stewart,K.C.,l.ead- er ol the opposition, ln the Budget iebltte in thc Provincial Legislature. ill-. Stewart began his speech on tuesday evening, April Zlst. l-lc said: .iIlr. Bpeakcr: ~1\m\'ery sorry indeed that I am lot able to offer my congratulations lo the Prime Minister upon the de- livering of his Budget. As a matter lipersonai courtesy I should be de- ighted to do so: but after ali, he is lliliiy Speaking as the mouthpiece lf a Govcrnlncnt to which 1 am in

ficit on Current Account of $32,882 and Increased Liabilities

iiclt,

what greater under Liberal Govern

i,PD0sition both with rerrard to its'Su l in this House. My hon. friend 'Chapter 1 and Chapter 2, apparent- ending with the Premier, and bring-_ stand it easily.

policy and its method of dealing with

vublic affairs.

There is another reasop, however. the land, so to speak; and in his

ills budget speech may be described n a few words by saying that it was iimlliy a tlrade against one news- ialier.. That is perhaps the principal T550" “ily I cannot offer him my iiliiililinlellts on this occasion. Of 'nurse-, I rcolize just what my hon. friend is facing. The difficult task is lrslgneci to him of defending the _ i°iiCy ot tllls Government during the lui i0ur y@fu‘S~ What a. difficult bibs it is to make out anything of lliood rose, with a general election ’°"fi°iiiiiilZ him in the near future! it is so easy, when one is facing a 'A-Sk of that kind, to find some ex- ruse for drifting into even an at-

iiifuk upon a newspaper.

tha he la a man who should not

All At S03

in il'l'iug to follow my hon. friend `iif0\1th the maze of figures which 1° quoted this evenirg, I, was re- nindcri of the story of a young and iifxbcricllced midshipman who had *Wu siren permission by his captain b ‘shoot the sun,' or in other words lo ascertain, by means of the prop- I instrument, the longitude and liitudc ol the ship while at sea. The “Shipman made his observations, "iii0=1\'ored to calculate the ship’s iusitioll from the figures ho obtain- iii. und then submitted the results ll ills superior officer. The captain ildlcd this result thoughtfully for lwhlle, thcn called the youngster _“"1” t0 him, and said solemnly: `Y°i1i18 man, take off your hat."

:_Wi1y?" asked the surprised novice. Bvmusc,“ was the reply, “according ti' "le ilgurea you have arrived at, ""3 Sbilv in now in the centre of Westminster Abbey." daughter.) I do not think that my hon. irirlld's calculations will ever bring him luro westmiuster Abbey; but I lin afraid if he is allowed to remain iii Power for the next four years this Province, financially, will bc in A Dosltion very much worse than that will in the story. (Applause) _ . 'rho hour is now late, and as I have a great many matters to deal with 1 shall now move the adloum- ulcnt of the debate. 0" Wednesday evening, April 22 3011. Mr. Stewart resumed. I-Ie said.

When the debate on the motion now boforg the 'll-mu mu adidllrhed. I

~ _ l

PP Y

occupies the highest position in the ily, and it is sighed "B- W- 1-ePase. _U18 in “° 1055 ° S°°°i°m”~“ iii'l°i'i “W Thi! year. however, we have had

Home; he is the first commoner in icllalrman Finance Committee." ihon. member from Rustico. There a new method, and I am still wond-

_ certainly has been plenty of smoke. ering why that change wa.; made. To

lor which I cannot congratulate him. 'position he should be very careful Improper Procedure Let us look for a- moment and see my mind, I do not think it can be

to avoid anything by way of person- . whether we cannot find some fire. fairly or successfully defended.

alities. To whom is that report addressed? The pump, A¢¢°un|;s_ ag my hom

_ To the members of the Legislative ,friend said 155; “|31-,t_ are prepared E¥*\‘\°"dil\ll’y BAVGDIIOI

' Mf- U" B‘“‘°°\' ;Ass¢mbly= the must improper thins _by the auditors. I have nothing to pm- ,omg yw., put W, hu, been More than that he was dealing iI.mv° ev" see" dm" in an my t “V with ’°5°"d 5° “"5” ¥°“°i°“‘°“- receiving some extraordinary reven-

. _experience in this House. My hon. They are paid odicials and they ues. Some years ago we put a. tax

with perhaps the most important fi-:ends apparently are nut “Were °i _have certain duties tu Perform: I-hd on motor vehicles, or rather a license Slibiecf that Wuid be dnl” Wiih in _their duties. Do they not know that so fm- as I am mncemm thgg B chm.ge_ wg also put E tax on gum ©1115 HOUSG. iM1‘0¢'iu¢iu8 the H105# im- there is a proper way of submitting the end of it. 1 do not propose to line. These added two new sources P°1't““ii ’e5°i“ii°“ °i' the S9°5i°n3 'rflwfi-‘i 1° ¢hiS H0“S¢'? That every waste any time ofthe House in dis- of revenue. Now a. point that is Bild iii WHS B m05i imPi'°P¢l" ii‘lihB- _commlfne should Submit if-I relwrt by cussing their qualifications_or any- worth noting with regard to these and Sh0W¢d Very bed there. that he a motion addressed to the Speaker? 3 thing else. I do not see why we sources of revenue is that they rae. Shauld like that °PP°ftuuity Of et- lllave they not been in the House should more any remarks in that so to spear, mortgaged by statutes tiwiiihg il l1€WSP\\D€l' “Don what was _lang enough to know that the rules regard, The Rader of the Govern- of this Province. Statutes were pass- largely a. personal matter. I-le went are there to be observed? _ :ment sap; fi,-st, that the “counts ed providing that certain payments very fart Ind ill my 0P\l\i°ll. Mr. Here wg have a reportcirculated _were being brought dawn by the pm. would be made out of these sources Speaker, be disclosed by that attack sm-reptltlohsly among the members, vgmial Auditor and that gy, Wu hm cd' revenue, and those revenues were

t and what is lt about? 'rhey had, lt _report no, the leader- or the Govern- tied up: theywfre tl-umed in the

- be in public life. Btolllle I mln Who iseems, an investigation. They took menu had naming fa do with |t_ hind! 01 the Government. The GOV-

oannot take those things as they ,ovldencs 1 suppose they were with- Bug then he wen; on tn describe th, ernment simply held those funds.

coma without showing such rancor iln their rights in doing so; but the cllangc-a most remarkable change- n°i' '3 °Pdii'il~fy "Venue but ls fJ'\l8t- as my bon. 1ri°l"i Showed lui nicht. curious thing about the evidence ls _ in me method of u¢¢°mtm_m °¢d mvnoys We hld begun to bor- I think lt i-I MNH. both for him- that it first came out in the Patriot 'which he says he concurred. This ro" m°n°y “nd "nd" th' Ben GW' sou md for the while. "ui he hewslvalver- It did not appear in The i was the rust time the Accounts nod °“““°“" th* 11"” AW Wm P*-“ed should not be in pubilo life. iGuardlan. Apparently The Guard- been prepared and brought down in tnwweinz me "venue 'mm °“b°m°"

ian did not receive notice of that that. form, and he thoroughly con- hue u°°““_ ‘"5 f°r_:'_ °_‘;;i'°i_" Pur;

e te

Asloundlng Suggestion sitting and was not invited to at- curred in the change. This was the p°°°' mm y' 1°' P” 3 ev n res

' 1 meh th and sinking fund on certain bonds.

tend it. _ _proper way,_he said, n w e Th

I-Ie made the remark for instance, However, as I said, they took cer- Accounts should be presented. Know- ° “"1" tm" "“°rw°'rd° applied

that if the person who wrote certain _tain evidence. I have observed late- ‘ing my hon. friend, and knowing t° me '“°u“° “xi °° th" mth °’ editorials in The Guardian was liv- ly that the gentleman who was the ithat he is rather set in his own op- tm; mug” °‘ _:vt°:“°;___:_';° T°_;" ins some distance South of this chairman of that committee has ap- tinlons, I would be inclined to think g:"n;;____w:;y .__ ;__s____° ° ° country, "something" would "happen" parently been qualifying himself a- that the method in which the Pub- mm _,avenue .___ I have “___” _“___ to him. I take it he meant that the long legal lines, and he was cvid- lic Accounts were presented and “mood the dm ,S money couecb writer would be lynohed. Con one lm- ently experimenting on this occas- _bl-ought. down this year were not al- ed from the wopie fm, the purpose aglne a Prime Minister of a Prov- sion because he conducted the together the idea of the Provincial of carrying on govemmenh we have lnce of Canada making a speech of examination. But the curious purt of Auditor, although his name is signed those moneys here from “Bonne and that lrlnd ln all seriousness ,and his examination is that he was giv- .to them, but that the scheme was mmm, vehicle ,,°°eipt5_ and they In eu-ncstneas! la that the proper ex- ing most of the evidence himself and the scheme of my hon friend the lea- not prouncm Nvenue, ,hey are not ,ample to set to the public thought his witnesses were only agreeing with der of the House. in me hm” of the government for of thi; Pr-ovlnaef I do not think 1 htm, (I,au|hter.) Or at least some- The Public Accounts have been ,avenue p,,m°w!_ Thanfm "_ vu ‘ need follow that any further; but I times they seemed to be agreeing brought down many times in this "mt |,,_,,mpa mm' ,D hm., plum, do say this, that the time in mak- with him! House, over a period of many years, mem in me Public Awoums nm, ing an important motion 01 the kind The witnesses were' the auditors. long before any of us were sitting nu. |,, the H" 0| 'enem ,,“,,u,_ now before the House should not be Now, Mr. Speaker, doesnt it seem to here: and they have followed pretty |¢ h ,M 'Mg “,,,“¢|m. .nd |¢ |, occulled with any personal matter you that this was a farclcal proccd- closely a beaten path in the form in ¢|,u.|, ,m|u¢|;|.|,|° ,M |m|m,|,"_

such as that. It should be settled ure. The auditors prepared this and- which they were presented. I am re-

in some other way. _ it; they were brought in as witness- ferring now to the schedules om- 7'6"" P‘7m°“"

er, and a great splurge was made taining tho revenue and expenditure Tm" u tmnmr som” 0| ,.e,,_

wi” Au ui’ Fa? because they gave evidence that on pages 6 and 'I of Part l. On the mu, 9° ,meh I mum ,cfm som,

N°w why 51| gm, fun? Why gl they behaved their own report fo be left aide we have a list of tha raven- yum ,gm hem” my of u W," in

'this attack? I; penned gg 1-“ye bo. correct! Wouldlft we expect that? ues and wo have on the other aide gm, *mum the pomp-mm gqwm. gun with the tabllng of the publh; Did they need to come in and swear a list of the expenditures, and thc_ mm; md, m uncmem, md mg. Accounts and of certain editorials or to that? They surely believed it to be way in which thow havu b¢0l\ bro- gd a gtatutg by which they provided article; gppoarlpg in 'rho guardian correct or they would not have made pared has been followed pretty close- g cs,-mn .moms of mgney to me with regard to the Public Accounts. it. ly. ss I said. for very mlhy yelrl- Province for agricultural education. Then followed, what of course we, Here WB bl" I Pamphlet publish- Under those statutes the Province

,` would expect. contrary aaurtlons in ed. I,nuppou. at the public expense, Revenue and Expondltulv received from the Federal Govern- . 'rig ggtrlqt. Wg have had many 0( |olrculat_ed mrreptltlousiy and what ment certain moneys. Now I submit,

these assertions. abr my part I have 'bu it accomplished? On the revenue aide. we have to ltr. Speaker, tl-lot those moneys wen

,mmmwmmwdmmou Andthnatoanuhtbe chapter, boginvrlththqaubsidv vo roooive,notrov`onua|o!thlsProvinco.be-

the other items

Tho" two Imam" of "venue and ment, which was in power when the

exmmltme “.0 “NI” up and in agreement was made. _refused en-

b.i‘m°d_ H me “venue totals up tlrely to submit to this House and “titer "un the expendnurm of to the pgople a. statement oi' liolv ww” men ls I c-urging; and U "_ those lnoneysuere expended. be- , is me other my ._b°“t_.th"° lx ._ _“_ cause tlley said it. _was a matter in

'll'h th " .l pl_ actin ns

u ll ey \\r'le sm v g

t

trustees for the Dominion Govern-

rrhgl, ig the stem thu has been ment and it was for tllc Donlinioll t

- V t .

` s ls

_....\,_;¢-

| .

. l

'-alum: f ~ ~ -_A la... g f - - . _

sy ~

_ f¢]1pwed,The £09515 vary fl-am year Govcrlllnent. which gave the mon-i, -to year, the expenditure being some- °Y-dw 5:_1b_‘T_§i' ii; “P0” i°__ iii: P@_°PiC _

_ an no s overnmen a ai.

ments from time to time, but follow- The same thing ”i’i”1i°5 VJ the

ing largely the same method of cal- _msg _________ys ____ ___ _________ __

' ' ll ' all '

cum;-ignnm mains up the abit-plus part of the public revenue of this' or ec,as ecasem .Of course, in more recent yeazi though Pr°vi'“°e‘ The mom-V is simply 1”

_ sm, before our mmm were lame in tile hands of _this Govemment to use

had been advancing some reasons tl-.is House in defending myself from we have this exhibition, if I may so mother method by which what we as thc Dominion Go\'erllmel1t directs. why I could not seo my way clear newspaper criticism. But my hon. call it. of tl-le leader or the House “ned capita, expndmres were pu, Yet time moneys- for the fir-at lima, i0 Offfrr my C0u§i‘atul¢1ti0nS to the friends on this occasion made a tlast night in his attack upon The in ` dns by themselves and were this year. were Put- lu the r€\'€l\\l\fi Premier upon his address on the K\'eatfu.~1s. and the Patriot endeavor- Guardian. “med down below the ,me Theytand expenditure columns as being

' art of the cncral revenue and ex-

technical grant I say that

Budget; and the chief reason I gave ed to show that there was a surplus. wg" not “dm in with gh, une,-at P 3 _ i was the time he had takcll in the That was the whole trouble. Much Smoke-Also Fire ,xpmdmu.e_ and the Accounts were l'°“‘u¢“i'° °i' “le Pl'°V'i“°°- _ ' course of a long speech, to make But that was not the end of it. A _ balsnoedwithout those items. We be- This method might, be intelligible? THE Hom _,_ D_ what might be called a. personal at- more serious matter was the attit- Let us consider, for a moment, cm, so ammtomad to that system to those who had been instructed ,_o|

tack upon the Guardian newspaper; ude taken by the Public Accounts |iust what this fuss is about. It is mu we mum snurmm the “gums and r said that was quite uulustlr- committee or this House, which did 'an old saying that 1 have helrd very qulelny; we were ,ble to 100;, table for several reasons. a moat .improper thing. _ many times Since I was ll. lad, _and ‘fu mygmng pretty muly when 'e

In the first place, it was a _ We found tabled on our desks last _I suppose most people have heard it. w¢qlq__ find lg; the general public be-

personal matter, which it was quite _night, what purported to be a re- _that wherever-_there is smoke there came gmuggghg Wm, this method of out of place to introduce into a mo- _port of the Public Accounts com- il: fire. We have had alot of smoke gudlglng and px-,Mating the pub- tion so important as the motion on mittee. The report was in two parts, here, beginning with the Patriot and lic Accounts and were able to und”-_

was a deficit or a. surplus.

IMPROPER. ACCOUNTING

oeption.

entry in the columns on page '7.

current revenue. It ls simply

enue account.

. Should Noi Bc Tutlcllcd

i \ l

follow the columns, because on the) purpose and it is a. violation of the` expenditure side we find charged up the amount of those moneys that are used in the cliffcrent depart- ments, and so they ,would form the same balance. provided they were all put in. But I submit that if any of those moneys that were included on the revenue side were not bal- anced on the expendittue side, then they were improperly placed there and they will not form a part of the balance which goes to make up the accounts and to show whether there

I submit. Mr. Speaker, that there are at least two items there that are, improperly included among the rev-| enue. I refer first to page 19 of Parisi l of the Public Accounts, dealing with revenue under motor vehicles and gasoline tax. We have here thc net revenue under the Motor Ve-' hicle Act, $138,710. The amount thati is carried into the list of revenues on

page 6 is larger than that; it is| $145,995. The difference is made up of certain expenses which are included and to which I do not take any ex-

Referring back to page lil, we find:

' 7 ¢~

t » _

law if it is made to form any part of

l‘¢\78llllE, ` v

_ There was a. time when so-called I. 0._U.‘s were used, when the mon- ey was never properly set aside but was left in the current revenue and used there. But that timehas passed and today this Province is living up to its own laws so far as that is con- cerned, and therefore that money does not go into current revenue but is invested at once. It is not for the use of this Government at all until it is.finally used for the purpose of paying oil” the bonds for which it was set aside by an Act of this Pro-` vince.

Therefore I maintain that this

$21,250 is included improperly in the revenue and it cannot form a part of the surplus which has been boast- ed about and over which all this fuss and smoke has arisen! So there, to begin with, is just a, little fire! tApplausci.

More Improper Accounting -

Take the other amount found on

the same page, the sinking fund de- rived from gasoline tax. $8.500. The same argument which I have alreadyl applied to revenue under the Motor

"To one years interest on highway bonds $54,373." I am not objecting. to that, except, of course, to the! whole method of book-kccping tot Whmh I hfive aifcady rcferred' bc' 1 cd as revenue of this Province under cause they have covered it by ani

To the next item, however, I do

take objection. That is: “To transfer to highway sinking fund account, szl,zso.'- Thai does not appear. lt is not a. cross entry and it has no rilfili M be the" at an became ii' is “Mi flinury cicbclliures we have to provide

a

transfer to lllc higllway sinking fund account and as it is no narl nf tllc revenue of the Province it has no right to appear in the current rov-

Wllere does this money Bo? Does that particular morltlrlrfe.

'it go into thc revcnuc? Of course it

does not. It is taken to provide a Tilt; LAW VIOLATED

sinking fund. Surtly nobody will

contclld that the money that is put'l Last _yr-:lr wc .wt n.~ldc sls,.f\l5.50 into sinking fund is a part of gcll- for nrtilnary ricbentllrr purposes. eral revenue. what bccolnf-s of it? 'lllnt money had to rome nu: of Cm-- An investment is made; bonds or rent l~cvclnlc in crclcl' to comply sonic other investment is sought out with llnr la~.\.'.< ul the Pl~n\'il1cc. Yet I and thc money is placed in that in- nntlrt- that that has not horn done vestnlcnt and it remains thcrc until thi- _v-mr, Instr-nd or bein-r tak:-n out the time has como for paying off the nf nrriinary revenue. it la put down bond issue. In the meantime it is held by thc Govcmnlerlt ns a trus- tee for that pllrposc. I submit that if an lndlvldurll trustnc interfered with funds of that kind he would be committing n crime. Thar. money

Vehicle Act applies with the same force to this itcnl.

Tllcsc tlvu amounts total $29,750.

which I submit arc improperly enter-

tllr- heading "Total Ordinary Rev- ienuc.” Not one dollar of these amounts is ordinary revenue of the Province and cannot properly be shown as such.

But that is not all. We have or-

dinary debentures, and for those or-

out of nur cllrrcnt rcvclllle. We have

\stz\tliil~s ]':;l.\st‘rl vvlrzril pro'.'i<ic that n\'cl'},' yclll' uiliie those ticberltures arc olltstdndiln: vre mllst set aside frunl our clllrcnt. rcvcllue a certain pcrcclltatxo wllicil will accumulate llntil iilllllijv ‘litre is n tlllilricnt Jlmollllt su\ cd in thut. way to pfl_'.' nfl'

br-low thc linc. After thc orllllmry expr-ndifuro is totalled and aridcd up I. balance ls struck and their imag- iniu'y surplus is arrived nt. Then they charge this debenture amount ai the hottnm of the page. I submit

BTEWART, IL C.

the ordinary revenue. They cannot strike a balance nor can they decide whether there was a. deficit or a sur- plus _until that money ls set aside, until the law is complied with-bo- causs they have to do thhtin ordell to comply with the laws of this Pi-oa vince.

“Surplus” Vanishces

Therefore I maintain that we must

add that to our expenditures. And il they had added that amount, what would we find? That their "surplus" of some $15,000 has disappeared. Il is gone and it has been replaced by ' a deficit of some $32,882 on current account!

That, then, is the actual situation

After all the smoke that has been raised-lsn't that some fire! tAp-

plause).

There are some of us here, includ-

ing the leader of the Government who were in this House in the time of the Bell administration; and my hon. friends acquired the habit oi imagining, as the Bell Government did, that they must always show a surplus, even if it is only fifty ol twenty-five cents. The mctliod they adopted this year of showing; n sur- plus I have already outlined; :incl l say it is a. method that. is not tc their credit. any more than arc thc methods they have since acloptvri tc bolster up that statement.

In the famous “evidcnce" taken by

the Public Accounts Committee mic' distributed surrcptitiolisly and ln s most improper manner, a gcnlirlllali Mr. Massey. is quoted. I-le is ref' rrrrd to as a qualified auditor, nllci, :ls l said before. I have no colnm-flli; tc make in that regard. Bllt llc is quot- ed as saying that thc revenue sur- plus for the year is Sl:’».1!1i‘_‘.7tl and that “there can bc no arrlllilell’ about it." Pretty dogmatic! But there it is. There are the facts unc' there, as I have indicated. is the law

iof the Province; and I wonicl likr _to hear how Mr. Masfray or un ont ,else can get uvray from that. trip- plause.)

Other Liabilities

My lion. friends acinlit flirt ini

Province has gorlc in dcbt to tht amount of $234,531. That is \~.-il lt tht Public Accounts show. I am not =,o'..n, to debate that: but thcrc wr ilu-st the gcllcral not rcr.;l’_t of tim.: nn- nncillg for the past ycal'--il dsflci

of $32,882 on orllinrtry account nn( :ln increase in the ricbt nf the Pro vinci: of $234,581.

But that is not all. I may ray tha

my hon. friend the Minister of Pub llc Works could tell us quite a dif-

___..___.__.-

,ll placed there by law for a. specific

,that this money must come out of

_ #Continued on page 10)

_EZ