SENATOR’S GASH PROFITS

Taranaki Daily News, 24 July 1931, Page 7

SENATOR’S GASH PROFITS

£60,000 FROM CONCESSION

POWER PROJECT IN CANADA

INVESTIGATION OF CHARGES

VALIDITY OF AN AGREEMENT

By Telegraph—Press Assn. —Copyright.

Rec. 9.15 p.m. Ottawa, July 22. An inquiry has opened to investigate charges regarding the Beauharnois £15,000,000 St. Lawrence power project, which was carried out under a concession alleged to be invalid, since it was authorised by the Governor-in-Council instead of by Parliament. It is claimed that only Parliament is competent to grant concessions involving the diversion of water from a navigable river.

It has been established that the project was not carried out in accordance with the plans whereon the concession was granted, for the firm’s president admitted he sought to divert into the canal the whole riverflow instead of the 40,00 cubic feet permitted. The next charge laid was that politicians improperly used their influence to procure a concession, being financially interested. It has been established in connection with this charge that one senator holding an interest in the Beauharnois syndicate before the concession was granted made cash profits of £60,000 from it and received over £200,000 in Beauharnois shares after the concession was granted. A series of threats and allegations of “graft” developed but it is hoped finis was written to the scandal when the instigating committee’s chairman

suddenly arose to-day and stated: “We will hear no more argument by counsel. I do not think we can stand any more.”