POWER SCANDAL

Hokitika Guardian, 14 September 1931, Page 8

POWER SCANDAL

PARTY CAMPAIGN FUNDS,

DISCLOSURES IN CANADA.

VANCOUVER, August 7. The disclosure before a House of Commons investigating committee the Beauharnois Power Company, now developing electric power from the St'. Lawrence River, had. paid large sums the election campaign funds of both the Conservative and Liberal parties has created a sensation throughout the Dominion that may lead eventually to the abolition of such funds. Mr R. O. Sweezey, president of the Beauharnois Company, which was sue eessful in its applications for power lights to both the Dominion and Quebec Provincial Governments, revealed on the witness stand that he had paid 700,000 dollars as a campaign contribution to Senator Andrew Haydon (Liberal). In addition lie turned over 125,000 dollars to Mr John Aird, jun., son of the.prominent banker for the Conservative party of Ontario. Other gifts were made to Conservative organisers in Quebec and Montreal City. Senator R. L. McDougald, prominent organiser of the company, was severely questioned in : connection with moneys which he received from the firm. So was Senator Raymond, also a Liberal. All three Senators admitted holding stock in the company, and profiting largely through the safe of the. stock. The committee in an unanimous report to Parliament, condemned the action of the three Senators and called upon them to refund the money to the company.

The name of Rt. Hon. W. L. Mackenzie King entered the investigation when it was revealed that through the error of a clerk, 800 dollars which Senator McDougald paid as hotel expenses for Mr King, then Pi-ime Minister of Canada, on a trip to Bermuda, liad been charged to the Beaucharnois Company. The Opposition leader had no difficulty in convincing the Commons that .aside from knowing that Senator McDougald had paid his hotel hill he had had no knowledge whatever of the Beoharnois transaction.

I Acting on the report, the Government cancelled the license of the Beauharnois Company and announced that it was taking over the .whole project, which however, would not be operated as a public utility. The shareholders, of which there are many in eastern Canada, would be protected. As a*Result of the' report there is , a growing movement throughout the j country for legislation rendering campaign fund donations illegal and establishing, to replace the present system, some allotment of national revenue evenly divided between the parties.