HYDRO PROJECT.

Manawatu Standard, Volume LI, Issue 199, 24 July 1931, Page 7

HYDRO PROJECT.

CANADIAN INQUIRY. OTTAWA, July 22. An inquiry has been opened to investigate charges regarding the Beauharnois (Quebec) 75,000.000-doUar St. Lawrence power project, which was carried out under a concession alleged to be invalid since it was authorised by the Governor-in-Coimcil instead of by Parliament It is claimed that only tlie latter is competent to grant concessions involving the diversion of water from a navigable river. It lias been established that the project was not carried out in accordance with tlie plans on which the concession was granted. The firm’s president admitted that he sought to divert into tlie canal the whole flow of the river instead of 40,000 cubic feet —the amount permitted. It is next charged that politicians improperly used their influence to procure the concession, being financially interested in it. It has been established that one Senator holding an interest in the Beauliarnois syndicate lie fore the concession was granted made cash profits of 300,000 dollars from it, and received more than 1,000.000 dollars in Beauliarnois shares after tlie concession was granted. A series of threats and allegations of “’graft” developed, but it was honed that finis had been written to the scandal when the instigating committee’s chairman suddenly arose to-day and stated: “We will hear ho more argument by counsel. I do not think we can stand any more.”

A message from Ottawa, dated July 16, and published in Australian papers stated: A huge scandal has occurred here over the Beauhavnois power project, the organisers of which are alleged to have hought their way through official and Government opposition three years ago. sweeping aside the present electric power interests of the city of Montreal. The pioject threatens a diversion of the entire flow of the St. Lawrence River. It is suggested that the highly influential Senators Wilfred Laurier McDoogald and Andrew H-iydon pushed ;ho plan through, in return for a promise of the Beauliarnois Corporation to pay £2OO,CCO for certain rights which the Senators appear to have acquired in tho St. Lawrence Basin. Invited to testify before the Parliamentary committee that has been investigating these allegations, Senator McDougald has declined, on the ground of the immunity of membors of tho Senate, and Senator Haydon because lie has a weak heart.