£2,000,000 LOST ON BONDS

Taranaki Daily News, 27 July 1931, Page 9

£2,000,000 LOST ON BONDS

CANADIAN POWER SCANDAL “INVESTORS TO BE PROTECTED.” RECOMMENDATIONS RECALLED. By Telegrraph—Press Assn. —Copyright. Rec. 5.5 p.m. Ottawa, July 24. Following reports that the investors in the Bcauharnois power enterprise would be protected, Mr. I. E. Wcldpn, K.C., announced to-day that he hoped to organise a bond-holders’ protective association. He said Beaiiharnois bonds had been bought on “the highest recommendation of some of the highest financial authorities of the country.” The losses now suffered by bondholders due to the reduction in price from par ( £2O) to £l5 amount to over £2,000,000. POLITICAL GRAFT ALLEGED. CHARGES AT INVESTIGATION. The Bcauharnois project, which involved the expenditure of £15,000,000 on the St. Lawrence River, was carried out under a concession alleged to be invalid, since it was authorised by the Governor-in-Council instead of by Parliament. It was claimed at an investigation last week that only Parliament was competent to grant concessions involving the diversion of water from a navigdble river. It was established that the project was not carried out in accordance with the plans on which the concession was granted, for the firm’s president admitted he sought to divert into the canal the whole river flow instead of the 40,000 cubic feet permitted. The next ch-rge laid vvas that politicians improperly used their influence to procure concession, being financially interested. It was established that one Senator holding an interest in the syndicate before the concession was yanted made cash profits of £60,000 from it and received over £200,000 in Bcauharnois shares after the concession was grantedA series of threats and allegations of “<rraft” developed but it was hoped finis was written to the scandal when the instigating committee’s chairman stated they would hear no more argument by counsel.