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hf’,/VV’/”’/”/’I”f”f/’/f/’/?/f////fif’/’ffl”ff’/flfi’% t Dy Mr. Preston in his letters. The uraspectors may be expected to do their wart if they secure the necessary supâ€" woart and backing of the men with the tinances. Gold is one thing for which there is very particular need at the present time. The more gold that Canada can produce at present the better its position among the nations and the sooner the depression will be done away with so far as this country s# concerned. With financial men working hand in hand with the prosâ€" sectors there is every chance for a numâ€" of new and important mining proâ€" erties being developed in the Porcuâ€" mne, Matheson, Kirkland Lake and Xher older mining camps. ‘"There is no better place in Canada o look for big gold mines than in the Matheson area if this north, with Kirkâ€" land Lake a short distance south and Porcupine about the same distance curectly west. The big gold mines are there somewhere in the territory and everything waiting in readiness. Power i6 near. Railways, roads, and everyâ€" tuing needed can quickly be had. "Just : rew miles south of this farm is the spot where the first gold ever found in this North was discovered, and a few miles east there was $47,000. taken out of a boulder of quartz weighing seven hundred pounds." The above letter by Mr. Preston is well worth thought Aand consideration. The moral of it is that there are lots of good gold mines â€"right near where the big gold mines now are flourishing. Ttus is a fact emphasized many times "Some time ago a farmer east of Wiatheson was digging postholes and tut a vein of quartz containing gold and uon which little work has been done. lt is a few miles west of the famous Croesus Mine. "Now, word comes that a merchant of Matheson, who already owns seven laims, has lately purchased another ane for pasture purposes. It is on the edge of the town. A couple of prosâ€" pectors were hired to go and put up a femce, and it happens that they disâ€" covered a nice vein with gold in it. It is said that interests connected with large mine in Porcupine are doing work on the property and reports state tuat it looks good. It‘s to be hoped it will be a big mine. xH. A. Preston, the wellâ€"known old@â€" tume prospector of the North Land, writes The Advance from Schumacher this week as follows:â€" Good heavens! Not your new car!‘" â€"Exchange My wife ran away with a man in my old Prospects in the Matheson Area here is No Better Place in Canada to Look for Big Gold Mines Than in the Matheson Area," Says Oldâ€"time Prospector. BLACK FLIES .35 32 oz. $1.00 Whi1z ‘"The announcement, it is understood, virtually assures the workmen on the great dam against the immediate layâ€" off that was expected. It assures, also it is felt, that the Ontario Hydroâ€"Elecâ€" "Ontario Power Service Corporation Limited has intimated to the Governâ€" ment of Ontario that it finds it diffiâ€" cult under existing conditions to find the money necessary to complete its power development at the Abitibi Canâ€" yon and ‘has requested the Government _to consider the position with a view to taking such steps las may be desirable to insure the completion of the project. The Government recognizes how imâ€" portant it is in the interest of Northâ€" ern Ontario that there should be an available supply of power from the Abitibi Canyon and therefore is preâ€" pared to give the request of the comâ€" pany early consideration, in the hope that it may be possible to evolve a plan whereby the canyon power developâ€" ment may be taken cover for the proâ€" vincs on such terms as the Governâ€". ment may deem equitable." Boon to Works Following the official statement, The Mail and Empire continues its comâ€" ment as follows:â€" financial difficulties of the Onftarth Power Service Corporation, which finds it impossible to secure some $5000,000 necessary to complete the development. Appealed to Government. "Paced July 1 with default in the payment of interest due on $20,000,000 worth of bonds, and faced therefore with shutting down the work, throwing 1,000 men out of employment, deprivâ€" ing Northern Ontario mines of their _expected supply of cheap power, and confronting the alternative of receivâ€" ership, the power development comâ€" pany, a subsidiary of the Abitibi Paper concern, appealed to the Government to find a solution. | Premier Henry‘s Statement. "Five weeks of negotiations culminâ€" ated last night in the issuance of a statement by Premier Henry, after allâ€" day sittings of the privy council, in which investors are at least inferenâ€" tially assured that the project will be taken over by the Government and brought to completion. Hon. George S, Senry‘s statement was terse and in general terms." Premier Hentry‘s statement as to the press is in full as follows pian Cl the province acquiring the Abitibi Canyon power project and carrying it to conclusion. On Saturday last The Toronto Mail and Empire, which is in close touch with the government at Toronto, made the following reference in a largely displayed front page article,. The artiâ€" cle was headed, "Province to Acquire Abitibi Canyon Power Development," the heading running across the whole eight columns of the front page, and the article reading:â€" % Government Considering the Arrangement of Terms. "Ontario‘s Government, or the Onâ€" tario Hydroâ€"Electric system, is to take over, on equitable terms yet to be negotiated, the Abitibi Canyon power development project, as a result of the the receivershi;s, and the consequent un employment of 1000 men now at work in the construction. There is also the danger to Hydro to be considered with the contract with the Abitibi Canyon company cancelled as it would be by a collapse of the project. On account of the difficult times the Ontario Powâ€" er Service Corporation has been unable to continue financing. The collapse of the venture had to be faced unless the Government gave assistance in some way. As noted in The Advance recentâ€" ly there were three plans suggested to Word from Toronto suggests that the Abitibi Canyon Power project is likely to be taken over by the Ontario Govâ€" ernment and completed as a Hydro Commission work. The Abitibi Canyon power plan, being carried on by the Ontario Power Service Corporation is faced with default of bond interest, receivershi;s, and the consequent unâ€" Ontario to Acquire _ Power Development Government Considering Arrlngement« . of Equitable Terms, Premier Anâ€" nounces, in Reference to Abitibi pe Canvon Power. an by Government t ent indicatior 16 oz. .60 128 oz. $3.35 itua LL1On logiâ€" Subsidiary of Abitibi. The Ontario Power Service Corporaâ€" tion is a wholly owned subsidiary of the Abitibi Power and Paper Co. Ltd Ownership rests in the holding by Abiâ€" tibi of all of Power Service Corporaâ€" tion‘s issued stock. The only obligation of Power Service to the public is a $20,000,000 54 per cent. first (closed) mortgage, sinking fund gold bond isâ€" sue, floated in 1930 and maturing July 1, 1950. Interest on this issue, which was offered by underwriters to the public at $4.22 and accrued interest to yield 6 per cent., is payable semiâ€" annually on January 1 and July 1. The following is an analysis of the corporate position of the Abitibi and its subsidiary the Ontario Power Serâ€" vice Corporation. This should be of special interest and imptortance at the present time in view of the proposal for the Ontario Government to take over the power project at Abitibi Canâ€" yor. The analysis was prepared by The Toronto Mail and Empire‘s finanâ€" cial depfartment:â€" Abitibi Power Co. and its Subsidiary ‘"Meanwhile, it is stated that there are numerous mines in the north, exâ€" tremely anxious to obtain a supply of cheap power, which will be available if the Government completes the plant. The Dominion Construction Company has the buildingâ€"work in progress, and none of the machinery has been scatâ€" tered, and the entire organization of men and machinery is such that n hitch need take place in the work. Deal Aids Hydro, Claim. "Obligations of the Hydro under the Abitibi contract will naturally, it is said, be much lightened by the acquisiâ€" tion, so that upon any equitable basis that might be arrived at, it is argued, ‘ the business proposxtion for the Govâ€" ernment is a good one.‘ | Analysis of the Corporate Position of the Power and Paper Co., and of the Ontario Power Service Corporation. "Premier Henry last night declined utterly to amplify his brief pronounceâ€" ment, so that the possibility in this regard could not be even remotely deâ€" termined. "In Abitibi cireles it was reported a few days ago that outstanding bonds might under some such scheme be exchanged for Hydro bonds bearing probably a lower rate of interest, withâ€" out any interest being payable at all for four or five years, and then only on an earnings basis. _ "The question of method, however, ‘provided the difficulties. . Strachan Johnson, K.C., and G. T. Clarkson, of Clarkson, Gordon, Dillworth and Comâ€" pany, chartered acccuntants, have been in almost constant consultation with | the Government for the last week, and | especially yesterday advised the cabâ€" Inet at length on legal and financial details. "The Mail and Empire understands that had the Government permittec default to take place July 1, receiverâ€" 'ship would have followed. In the subâ€" sequent liquidation, Hydro might have found itself bidding against Montreal or American interests; it was felt that if under these circumstances Hydro were to bid low, it would be attacked for cutting down the security of the bondholders, and if it ‘bid higher, both Hydro and the Government could be open to attack for paying too much. Alternative Courses. "Another course might be expropria~. tion, but this would entail Hydro finâ€", ancing at once a sum in the enighbour-' hood of $16,000,000 to $20,000,000, with no current market for bonds. A third course might be the Government takâ€" ing over the project by another means, without the outlay of cash except for the actual construction work, which could igo on uninterrupted. j "It was only at six o‘clock last night that decision was arrived at and the vague announcement of the Prime Minister made. onliy when it could be shown that money enough was available to ensure the completion of the power project. !At that time nobody had any idea other than that the Abitibi paper manufacturing corporation would be able to produce the necessary backing. "The project therefore lacks $7,000,â€" 000 of completionâ€"$2,000,000 of it beâ€" ing available when the cother $5,000,000 is produced. That $5,000,000 could not be secured, and with Abitibi continâ€" gently liable for the interest on the power bonds. default on the parent company‘s own bonds was adjudged alâ€" together probable for August 1. | Fostering the North. ' "Confronted with this problem, it is understocod in political circles that l the Government felt it due to the de-! velopment of Northern Ontario, and to full confidence in that great hinterâ€" land as virtually a new province treâ€" mendously rich in natural resources that it continue its policy of fostering the North, by finding the means to take over the canyon development. gentliy _ power | compan. tocether tric system will avoid in this case beâ€" ing forced to bid against any potential private corporate wouldâ€"be competitor for the property. "When the project was started, the estimated cost was $23,000,000. It beâ€" gan as a subsidiary of the Abitibi Paâ€" per and Power Corporation, at that time with the rest of the newsprint indusâ€" try, in a flourishing and confident posiâ€" tion. this der only "Bonds to the sum of 5% per cent. were issued the market at 90, brin 000 for the work of dev this sum, $2,000,000 was der trust deed to be m to be madt could be s} THE PORCUPINE ADVANCE, TTMMINS, ONTARIO bringing $1 developmen $20,00 and t aside un de available shown that Designed in Five Units. The power plant is designed in fi units of 55,000 hp. each, and th with other power plants already ope: ated by the Abitibi Company, give it total output of electricity of about 500 Power Service Corp. is incorporatâ€" ed under the laws of Ontario and holds under lease from the province a water power site on the Abitibi River, at the Abitibi Canyon, estimated to be capâ€" able of producing 275,000 hp. This lease runs from October 1, 1930, for 25 years, with renewal rights for two successive periods. totalling an addiâ€" tional 27 years, so that the lease exâ€" pires in 1982. Rentals payable to the province are fixable at the beginning of each renewal period. The power site is about 64 miles north of Cochrane, and power will be develâ€" oped under a net head of 237 feet. Last Sunday the river‘s flow was directâ€" ed against the new dam, now nearing completion, for the first time as a test: and it is understood that the test was successful, The flow had been dlvert-, ed, during contruction, through a tunâ€" j nel. I CLEAN ELECTRICALLY THE BEATTY CLEANER is EASY ON RUGS AND GETS ALL THE DIRT 35 Third Avenue Call at the Store pay the semiâ€"annual instal that date on the $48,267.000 cent. first mortgage gold t standing. The company has of grace of 60 days before leg is incurred. In the meantim tive bondholders‘ and preferr holders‘ committees have bee The company stated in its a ment of default that the non of interest was occasioned 1 in arranging for financing of renewable i in 1982 000 h.p. The entire output of the Ontario Power Service Corporation was conâ€" tracted for before construction comâ€" menced. The Ontario Government, through the Ontario Hydro Commisâ€" sion, contracted to take 85,000 h.p. on completion of the pilant about October of this year, this amount increasing annually until a total of 100,000 h.p. would be taken in 1936 and annually thereafter. This contract was made renewable in 1971 for a period expiring On June 1 Abitibi Power and Paper, distinguished from the purely powâ€" project, announced that it would n>t y the semiâ€"annual instalment Gue at date on the $48,267,000 five per 60 days before legal default d. In the meantime, protecâ€" With the Polisher we are including a iongâ€"handled waxer and one can of the finest Britishâ€"made floor wax. Waxer spreads the wax in a thin, even layer. Saves getting down on the hands and knees. Saves the wax. gold bonds out Open Evenings ferred shareâ€" been formed O q. e »_(‘ 1 N C AB i petli July 1 next. It is understood that there is enough money on deposit with the trustee to pay this interest: but in view of the continued difficulty in raisâ€" ing funds, it has been considered likely that a default in respect of this issue would also occur, inasmuch as the comâ€" pany is under obligation to commence delivery of power in October of this year. The question before the trustes, prior to the intervention of the Onâ€" tario Government, was therefore whether the mortgage required the inâ€" terest to be paid without regard to anyâ€" thing, or whether it was more infporâ€" tant to rfotect the entire investment by withholding interest so that the cash could be used in proceeding with construction. The technical default on the parent compmny‘s bonds has occasioned some question as to whether interest on Power Service bonds would be paid on July 1 next. It is understood that there is enough money on deposit with the trustee to pay this interest: but in stages of the Power Service power proâ€" Jject, for which an additional $4,500,000 is required. Thus the lack of cessary to comple Key Log in Jam #T; ion of the On was â€" therefor required the in $5,000,000 or he power p POLISH ELECTRICALLY® THE BEATTY POLISKER SAVES HOURS OF HARD WORKâ€"KEEPS FLOORS BEAUTFUL Phone for Demonstration 18 1ssue ie comâ€" nmence of this Acquisition by, or control of the Pow« er Service Corporation project by the Ontario Government effectively disâ€" poses of the threat of receivership for the power enterprise; but it still leaves the parent company‘s problems to be settled. The interim balance sheet of Abitibi, published June 2, shows that interest requirements have been earnâ€" ed by the company, and the probability is that if the arrangement with the Ontario Government is consummated before August 1 the Abitibi arrears will be paid inasmuch as the payment was withheld as a contingent resource to hasten the power plant‘s completion. The Ontario Government, through the Hydroâ€"Electric Power Commission, has built its own transmission line from the power site of Sudbury, where pracâ€" tically all of the Government‘s power to be bought from Ontario Power Serâ€" vice Corphration is to be sold to conâ€" sumers. ject by October was the key log in the jam which occasioned the default on the parent company‘s bonds and threatened a similar default on the subsidiary‘s bonds on July 1. Thursday, June 30t] consummate bi arrears wi payment ws t resource t