Alberta Inquiry Threatens Social Credit Government

Press, Volume XCIII, Issue 27985, 4 June 1956, Page 13

Alberta Inquiry Threatens Social Credit Government

(N.Z. Press Association—Copyright)

EDMONTON (Alberta), June 1.

The political future of the province of Alberta may hinge to a great extent on the findings of a five-man Royal Commission which late in April finished an investigation into election campaign charges against the Social Credit Government. The members of the commission, headed by Mr James Mahaffy a lawyer, are working on the final draft of their report, and unless last-minute snags develop it should be in the hands of Premier Ernest Manning's Cabinet within 10 days.

Whether the report is good or bad. from the standpoint of the Government, it is likely to stir up anew the political storm which raged during the 1955 session of the provincial legislature and reached fever pitch during the bitter campaign which preceded a snap election called in 1955. As a result of charges of maladministration by the Opposition parties and the newspapers which supported them, combined with the most determined bid for power in years by the Opposition forces. Social Credit strength in the Legislative Assembly dropped from from 51 to 37 in the 61-seat House. * There is persistent speculation in political circles that Mr Manning will call another election after the report is made public, especially if it clears the Administration of any wrongdoing. To date, the Premier and his colleagues have remained silent on the subject, but it could explain the obvious haste with which an entirely new Election Act was pushed through at thp recent session of the legislature. The Government and its supporters rode over vigorous Opposition objections to abolish the preferential voting system, in use here since 1924, and replace it with the straight “X” system of marking ballots. Opposition members accused the Government of being afraid of the preferential system, because it permitted the distribution of surplus votes among trailing candidates.

In some ridings in the election last year, the man with a majority on the first count was defeated on subsequent counts when voters’ second choices were distributed. Real Estate Deals

The Roval Commission began hearings in Edmonton last year, but these were not as sensational as many observers had expected them to be There was little or no evidence which had not been aired publicly earlier during sittings of the Legislature Public Accounts Committee.

This evidence, about Government real estate deals, in which land speculators made handsome profits, led to the calling of the sudden election, and to the charges and insinuations by the Opposition parties. The biggest part of the commission’s investigation dealt with real estate transactions, including the purchase of land for a new gaol in the Calgary

area of Southern Alberta. According to evidence, the Government paid 127,875 dollars (about £57,000) for a 900-acre farm a short time after Mr Sam Diamond, of Vancouver, took out an option to buy it from the original owner for 81,000 dollars (about £36,160).

Mr Diamond’s syndicate made a profit of 46 875 dollars (about £20,926> for a 1600 dollars (£446) investment on the option. His testimony was that he had no advance information the Government was interested in that particular farm.

After protests from residents near the proposed gaol site, the Government later abandoned it, and bought other property near Calgary. Evidence was given that the price paid for the second site, 175.000 dollars (about £78,500) was far too high. The commission also investigated the circumstances surrounding an office building in Edmonton, purchased in 1948 for around 98,000 dollars (about £43,750), including the cost of renovation, and sold in 1954 for 64.000 dollars (about £28,571) to a group which included two Social Credit members of the Legislature. This was, perhaps, one of the most damaging transactions so far as the Government is concerned. Two members lost their seats in 1955 under a section of the Legislative Assembly Act, which states that no member can have financial dealings with the Government. The evidence was that after purchasing the building from the Government, the group, including the two members of the Legislative Assembly, rented it back to the Government. The two members ran for election again under Social Credit colours last, summer, and were re-elected. A day before the election, Mr Manning puolicly disowned them, but shortly after the election they were taken back into the fold and have been sitting on the Social Credit side of the House. Charge Against Premier An exchange of mineral rights in 1951 between Mr Manning and the Crown, on the Premier’s farm near Edmonton, was the final phase of the investigation. The evidence was that the exchange was made on exactly the same basis as many other exchanges with freeho’d owners, as a means of rounding out oil drilling subdivisions By the straightening out of the property line, the Premier was able to have eight oil-drilling subdivisions on his farm, where he had only five before. His mineral rights have been leased to an oil company. In final argument, Mr S. J. Helman, Q.C.. for the Government departments under investigation, said the evidence disclosed no indication of maladministration or inefficiency, although he admitted there might have been a few small errors in judgment. Mr Helman accused the Opposition of “stooping” to make unsubstantiated charges in an effort to discredit an honest and efficient government. The political scene is quiet, pending the outcome of the investigation, but the Social Credit Government can expect more trouble from the enlarged Opposition ranks in the Legislature. The Opposition strength has increased from 10 to 24 in the last election, and unless another general vote is called, the parties are looking forward to their most determined effort in years to force Social Credit out of power