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A Growing . Newspaper in a Growing City The Osh aura Dail Succeeding The Oshawa Reformer 1 Times PROBS. Partly Cloudy and Cooler Tonight and on Thursday. Ed VOL. 10--NO. 105 OSHAWA, ONTARIO, WEDNESDAY, MAY 4, 1932 12 Cents a Week; 3' Cents a Copy EIGHT PAGES HOSPITAL BUILDING PLANS DEFERRED "Trophy Presented to Oshawa Sea Cadets at NAVY LEAGUE LEADERS SPEAKERS AT FUNCTION HELD BY KIWANIS CLUB Sam Harris, President of Navy League of Canada, and Col. C. G. Williams, Its Manager, Took Part in Banquet HISTORY OF NAVY LEAGUE OUTLINED Oshawa Sea Cadets Warm. ly Congratulated on Splendid Showing in Contest Open to Whole sia Dominion The banquet of the Oshawa Kiwanis Club given in the Genosha Hotel to the officers and cadets of the Oshawa Sca Cadet Corps, was a success from beginning to end and no more enthusiastic gathering has been held by the local club since. its inception, The Oshawa club was also honoured in having as their guests Samuel Harris, of Toronto, President of the Navy League of Canada; and Col. C, G, Williams, manager of Navy League, hoth of whom spoke to the mem- bers and cadets, The occasion was a most happy onc as Mr, Harry presented to Lieutenant Worrall, a beautiful silver cup emblematic of the highest attendance record for Sea Cadet Corps, The program for the meeting was supplied by the hoys themselves who outdid them- selves in a series of wrestling and boxing bouts that were thoroughly interested, Conmumander Worrall in- troduced the guests to the members as well as officers of the corps. Sam Harris Mr. Harris in his address expres- scd great pleasure at being invited to be present on such an auspicious occasion, which was linked with those activities nearest to his heart. He complimented the boys on their fine appearance and impressed upon the officers the obligation that rest- ed upon them in the training of the future citizens of Canada, The de- velopment of the right type of man was 4 wonderful achievement, he said and one that should act as an inspiration to the members of the Viwanis club who were sponsoring the corps in Oshawa, The history of the development of the Navy League was traced by the speaker, who stated that it had its first unit in England in 1895 at which time the need was felt for the perpetual upholding of the tra- ditions on the British Navy and its maintainance at full strength. From then until the outbreak of the World War it was a field of op- portunity even though there was a large group who could not see the need for it when there seemed to be no chance of a war, In 1914 when the war broke out and the test of the league had come and it was then that it showed that it was well that it had been giving training and maintaining the traditions of the navy as it was a factor in as- surine the liberty and freedom of the British people, League Organized Following an attack by the press of the United States on Canada, who claimed that she was only waiting an opportypity to break with Britain, the Navy League of Canada was organized at a meeting in Montreal in 1917 and soon spread from coast to coast as Canada's answer to her accuser, After the termination of the war (Continued on page 2) Banquet (MA EXECUTIVE HERE TOMORROW Business Sessions of Im- portant Body To Be Held in Hotel Genosha Tomorrow will see an influx of the leading officers and directors of the Canadian Manufacturers' Asso- ciation into Oshawa, The execu- tive committee of the Association some time ago accepted an invita- tion of the Chamber of Commerce to hold its annual meeting here, and this invitation was accepted, Thurs- day, May 5, being fixed as the date for the meeting, While it is a decided honor for Oshawa to be selected for this meeting, there will be no elaborate civic function, The delegates will be formally welcomed by Mayor Thomas Hawkes, and by George Hart, President of the Chamber of Commerce, The sessions, however, will be entirely of a business char- acter, At noon, however, there will be an informal luncheon, to which the manufacturers of Oshawa and a number of leading citizens have been invited. It is expected that part of the afternoon will be spent in an inspection of local industrial plants. BUILDING PERMIT TOTAL WAS LOW Permits Issued in April Had Total of $11,765 Statistics given out this morn- ing by the City Engineers' de- partment showed that the total value of building permits issued fn the city during the month of April amounted to $8,685 mak- ing a total for the first four months of the year cof $11,765. In all there were thirteen permits issued during the month made up as follows:--4 dwellipgs, 2 garages, § alterations. and 2 electric signs, Looking over the records for past years it was found that the high mark for the month of April was reached in 1927 when per- mits amounting to $850,755 were fssued. From that time on the total has gradually dropped off to the present total, In 1928 the total was $820,905; 1929, $153,- 620; 1930, $35,910 and 1931 $77,875. 'ELECTED C.P.R, DIRECTOR ? (By Canadian ress) Montreal, May 4 -- John W. Hobbs, of Toronto, president of the Consolidated Plate Glass Company, was elected a director cf the Canadian Pacific Rallway Co,, at the annual meeting of the shareholders here today, Mr. Hobby' replaces the late Sir Vin- cent Meredith on the directorate. Giher direciors were elected to office. There include R. 8. Mc- Laughlin, of Oshawa, who is at- tending the meeting. Senaion McDougald Has Resigned; Expulsion Threat is Forestalled Ottawa, May 4,--Led by Rt. Hon. Arthur Meighen in a vote which divided upon party lines ns strict as ever whips imposed in any House of the Canadian Parliament, the Senate voted 34 to 27 last night to adopt the re- port of its special committee severely censuring Senators W, 1. McDougald and Andrew Hay- don, and mildly reprimanding Senator Donat Raymond in the Jow historic Beauharnois scan- al. ; Immediately following the ad- option of the committee's report by a majority of seven votes, Senator Raoul Dandurand, Lib- eral leader, announced that Sen- ator MeDougald had resigned his seat in the Senate of Canada. That his resignation was but a forerunner of that of Senator Haydon was regarded as a fore- gone conclusion, What Senator Raymond will do in the face .of the milder censure is a matter for munch sperulation, May Make Statement Rumor 'has it that he may make a statement of profound apology, but it is regarded as unlikely that he will relinquish his seat. There are other rumors that Senator McDougald's will be the only resignation, and that Senator Haydon may elect to fight it out, The vote was more or less un- expected last night, Debate had proceeded in humdrum and un- oxicting fashion, since {it was known that the Government forces entertained no desire to limit the debate nor to bring on a vote until the defenders of the Senators involved in the scandal had been given all the opportun- ity they desired to debate the issue, Nevertheless near midnight, it became apparent that there was little more to he said. Speaker Blondin put the ayestion to the House as the debate died out, and rumors, that a Handful of Liberals would join in the de- nunéintion of the challenged Senators were not horne out, (Continued on page '3), HERE LAST NIGHT SAM HARRIS President of the Navy League of Canada, who was the chief speaker at the banquet tender. ed last night to the Oshawa sea Cadetg by the Kiwanis Club, RELIEF ORDERS ARE STILL BEING GIVEN TO NEEDY Relief Committee Con- tinues Policy Pending Decision of Gov't. The relief department of the city of Oshawa is still fssulnz re- Het orders for direct relief to needy families bn the old basis, frrespective of the faet that nt definite assurance has been re ceived from the provincial and federal governments that their contributions will continue as' be- fore. May 1 was the date fixed for a cessation of the governmen- tal assistance with direct relief, and no announcement of govern- ment policy has yet been made covering the period beyond that date. Last week, however, when Pre mier Henry was interviewed by a 'deputation from Oshawa, he gave it ag his opinion that direct relief contributions would be con- tinued, and on the strength of this the local relief committee is continuing the issuing of direct relief orders for food and fuel. The federal government's unem- ployment relief bill is still being debated in the House of Com- mons, but the government has not vet given any indication of what its policy will be when, that mea- sure passes, The relief committee of the city council is still gding ahead with its plans for the early opening of the relief store, Certain necessary fixtures dre being installed, and to-day is the closing date for the tenders for grocery and other supplies. It is likely that the store will be ready for operation in the early part of next week, TORONTO WILL NOT MEET DEFICITS Mayor Stewart Makes Statement Regarding Position of Hospitals Toronts, May 4.--Mayor Stew- art yesterday reiterated with ut- most emphasis that, as far as he is concerned, the city will posi- tively no longer pay deficits in- curred by hospitals in caring for indigent patients, Combined city and provincial allowances total $2.25 per diem per patient, and the deficits are what it costs the hospitals beyond the allowance, The mayor pooh-poohed the suggestion that the city was un- der a moral obligation to assume the deficits, It the allowance was inadequate the hospitals should seek an increase, he argued, He also suggested they might put "their highly paid officials" to work to figure out ways and means of increasing the efMciency of the institutions and thereby reducing costs, Furthermore, he declared, a lot of indigent patients should really .be in convalescent homes, where he was confident they could be cared for at about $1 per day. Agent Transferred Napanee.~Mr, and Mrs. Arthur Wood of Ernestown station were in Napanee on Saturday enroute to Cannington where they will reside. Mr, Wood was on the section for the Canadian National Railways, and had held the position of fore- man. for. 4 number of years. They were at Ernestown Station for over twenty years, and prior to that time were in Napanee for some vears, <The transfer to Cannington is a well deserved promotion, Governor-General to Pay Visit to Oshawa Their Excellencies the Gover- nor-General and Lady Bessbor- ough will pay a visit to Oshawa on Thursday, May 19, This was announced in an official' state. ment issued from Rideau Hall, the Ottawa home of their excel- lencies, last night, While an opportunity will be provided on their arrival at the station for an official civic wel- come, the visit will be more or less of a private character, and their excellencies will be the guests of Mr, and Mrs, R, 8, Me- Laughlin at Parkwood during the day, and will probably make a visit to the plant of the General Motors of Canada, L!nited, al- though the definite details have not yet been arranged. Their Excellencies, it is under- stood, will arrive in Oshawa on the overnight train from Ottawa, but will not detrain at the sta- tion until about 10 or 10.30 a.m. The tentative plans call for a brief official welcome by the mayor and civic officials at the station, after which they will go direct to Parkwood as the guests of Mr. and Mrs, McLaughlin, The luncheon at Parkwood will he en- tirely of a private character, and it is expected that Lord and Lady Besshorouzh will leave for To- ronto at four o'clock in the af- ternoon, Arrangements are course of preparation official civic welcome Excellencies on their fn the for the to Their detraining at the station. Oshawa Golf Club Will Open the Local Course with Match Saturday The opening of the Oshawa Golf Club for the 1032 gearon will take place on Saturday, May 7th A mixed two ball Loursome will be played, the first mateh to tee off at 1.30 p.m, Following the game, tea will he served in the Club House and in the evening an informal dance will be held commencing at 9 p.m. It is expected that, in this year of economy, a large number of the members will make their golf subscription their chief invest ment for Lhe purpose of exercise and recreation, Realizing that this is the ease, the directors are endeavouring to promote activi- ties of all kinds in the way of golf and social entertainment, The course is already in excel- lent condition and play started on the permanent greens last Satur day. A noticeable improvement has been made to the covrse hy the re-building of the "Short" or No: 9 green. The chairmen of the various committees for this year are: Greens Committee--N, H, Dan- fel, House Committee- well, Membership Committee Mackinnon, Entertainment T. R. Cald- loss Committee Dr. ¢', O. Miller Match & Handicap Committee R, McNab, W. H, Karn is captain and Rob- ert Hendergon, vice-captain. The president of the section of the Club is Mrs, T. Caldwell The directors of the Club are ax follows: J, J. Burns, J. H. Bea ton, I'. ¥ims, N. H, Daniel, Ross Mackinnon, Dr, C E. Wilson, vice-president, and N, CC, Millman, president, The secretary is K. G. Whattam, It has decided that for | this entrance fees will hé deferred for one year, Thus, a heginner need now only pay the beginner's fee of $25.00 for the year, and a golfer who has played | with another Club, but who is | Joining the Oshawa Golf Club, need now only pay $50.00. Also, a member who started as a begin- per last year and who should otherwise have had to pay the gec- ond half of his entrance fee this year, will now only he charged $50.00, Formerly, these three clagzes would have had to pay 37.50, $75.00 and $62.50 respec- | tively, These entrance fees are of [Coursa only deferred one year and are not cancelled for future years. ladies' R. heen year, TRANSFERS OF PASTORS PASSED Oshawa Presbytery Meet. ing Adopts Changes in Pastoral Appointments (Special to The Times) Newtonville, May 4.--At the regular spring meeting of the Oshawa Presbytery of the United Chureh, held here yesterday, approval was given to a number of ministerial changes, to he ef- fective at the end of the confer- ence year, The transfers approved were as follows: Rev. W, 8. Smart, of Green- wood, transferred to Bath. Rev, I. J. Maxwell, St, An- drew's Church, Oshawa, exchang- ing with Rev. A. D, Robb, of Glebe United Church, Toronto, Rev, Harold Stainton, trans- ferred from Pickering to Exeter. Rev. H, G, Crozier, of Thames ford, transferred to Pickering, Rev. R, J. Bick, of Hampton, exchanging charges with the Rev, Walter Rackham, of Whitevale, Rev. Thomas Wallace, of New- tonville, chairman of the Pres- bytery, and samuel Farmer, of Port Perry, were nominated as delegates to the General Council meeting at Hamilton in Septem- BEATTY EXPECTS EACELLENT CROP Prospects Good for Crop Between 400,000 and 500,000 Bushels Montreal, May 4.--Crop pros- pects in Western Canada are bet- ter at this season than at the same time in any of past three 'years, and 3 wheat crop of from 400,000,000 to 500,000,000 bush- els might reasonably be antici- phted., J2. W, Beatty, president and chairman of the hoard of the Canadian Pacific Railway Com- pany told shareholders at the annual meeting here today. The president reported drastic econ. omies 'in the operation of the rallroad and steamships services in conformity with reduced earn ings, but pointed out that the condition of the company's prop erty had been maintained unim- paired, The annnal meeting was well attended and optimistic, WILL NOT GHANGE OATH REPUDIATION De Valera Refuses to En. tertain Modifications to Measure Dublin, Irish Free State, May {~The Republican Government of the Irish Free State last night effectively put down two Opposi- tion amendments which - would have modified its bill to abolish the oath of allegiance to the Brit- ish Crown as a requisite to ten- ure of public office, The first amendment, proposed Fhy Deputy MacDermott, which would merely have altered the wording of the oath, was disal- lowed by the Speaker on the ground it introduced 'ex- traneous matter outside the scope of the bill," It would have required of every member of the Dail Eireann 'true faith and al- legiance to the [ree State and, during the continuation of the Free State in the British Com- monwealth solemnly to promise to be loyal to the partnership, ob- ligations thereby involved and partnership," President Eamonn de Valera turned aside a proposed amend- ment of Ernest Blythe, Finance Minister in the late Government of William 7. Cosgrave, which would have retained the oath but made it optional. Mr, Blythe urg- od the Auglo-Irish treaty under which the Free State was don- stituted should not Le set aside by unilateral action. 20 MEN TRAPPED BY CHOKING GAS FUMES (By the Canadian Y'ress) Toronto, May 4.--~Trapped hy choking blinding fumes which poured. into the building from a broken refrigeration pipe, em- ployees of the City Dairy Co. here groped to the street to-day. Twei- ty men, trapped on the second floor, were brought to satéty by members of aerial ladders, = All were slightly affected by the fumes, but only one man was completely overcome, Firemen, protected by gas masks, managed to ghut off the flow of gas, ° TORONTO FINANCIER DIES: Toronto, May 4.--Stanley J. Derry, well known: "in Toronto and New York financial circles, died here today, He had repre- sented several firma on the To- dronto and New York exchangés. NO ACTION TAKEN BY PRESBYTERY ON SERIOUS CHARGES Charges Against Rev. C.E. Cragg Under Discussion at Newtonville (Special to The Times) Newtonville, May 4, -- At the regular spring meeting of the Oshawa Preshytery of the Unit- ed Church, held here yesterday, a resolution was passed that there was nothing to be gained by taking further action on serious charges which had been laid against the Rev, C., E, Cragg, pastor of King Street United Church, Oshawa, in connection with the recent anonymous let- ter incident arising out of a let- ter admittedly written by Mr. Cragg, to a Toronto church offi- cial containing slanderous state- ments regarding Rev, E.; Hars- ten, minister of Simcoe Street United Church, of Oshawa, This resolution was passed after a Inagthy debate, and after it had yassed, Rev. A. R, Sanderson, of Whithy and formerly of Oshawa, who had lald the charges, gave notice of his intention to appeal tn the conference on the matter on the grounds that Preshytery had not dealt with the charges be had made, Late in the meeting, which was the regular spring meeting and not a special meeting, Rey, I, L. Jull, secretary of the Preshytery, slated that he had received by registered mail, from the Rev. A. PR Sanderzon, of Whitby, serious 8 against the Rev, C. E. Cra of Oshawa, charging that Mr. Cragg had written slander ous statements regarding Rev, E, Harston, of Oshawa, and that Mr. Cragg had acted dishonestly in denying that he had written these statements, Inasmuch as ft re- quired 10 days' notice before a trial could be held, Mr. Jull mov- 1 that a committee be appoint- ed to report on the procedure to be adopted; The charges were not read to the meeting, vere handed to the committee, Committees Named . The committee appointed was ch (Continued on page 3) CAPONE ON WAY TO PENITENTIARY Chief of Chicago Gangsters Is Now Resigned to His Fate (By Canadian Press) Danville, 111,, May 4. pone, disillusioned and dejected gang chief, approached the United States federal penitentiary at At- lanta, Ga., today with an asser- tion that he was through with rackets, Tonight he will start serving an eleven year sentence for evad- ing income taxes and Capone, giving up hope at last, said there was nothing to do but make the best. of it. Though his long exile has been expected to rob him of his rule over Chicago's underworld, ft was still Capone, the big boss of gangland, that was being taken to prison, Guards were at every station the train passed and Ca- pone was heavily shackled to an- other prisoner. 300 AT NORTH BAY WANT CAMP JOBS Most Are Repeaters--Must Pay Own Fare North Bay, May 4.--I'rom pres- ent indications there are about 500 men willing to accept the government's offer of $5 a month and board to work on the trans- Canada highway. The majority of these were working on the high- way before the new schedule came into force. 'Harry DeaJardins, manager of the local government employ- ment agency stated, 'I have al- ready had enough men apply to fill about five camps. Every day about 15 or 20 men come into the office making inquiries about the highway work and stating their willingness to go out at ths gov- ernment's terms, Most of them are local men," Any wishing to work on the highways have to pay their own fare to their respective camps. Two men who left the camp at Bonfield and went to Toronto bave already returned, paying their fares, They are the only one in the camp. At present they are engaged in putting up fences, They are their own bosses, their own cooks and chore boys, | Reeve and Clerk to Inter- hut | composed of Rev, Dr, Carscallen, | Al Ca- HOSPITAL BOARD HAS DECIDED CONDITIONS ARE NOT MEETING OF EAST WHITBY COUNCIL view J. A. Ellis Regard- ing Direct Relief Columbus, May 4, -- The East FAVORABLE G.D. Conant, President of Hospital Board, Gives Statement on Situation Which Has Caused Post. ponement LOSS ON INDIGENT PATIENTS SERIOUS Board Decides to Conserve Whithy Township Council met on Mcnday in the clerk's office, All| tho members were present, Reeve | Lavis occupied the chair, Min- utes of the former meetings were | read and adopted, Communicatons were read from Consolidated Fire and Cas- nalty Ins, Co., sec. of Ratepayers' Arsociation of Westmount, Con- ant and Annis, Stewart, Scully & Co., J. A, Ellis,I.. B. Beath, ¥ J. Garvonin, Wm, Hamilton and Bel] Telephone Co, The Bell Telephone Co. were given permission to replace poles, erect additiopal guy wires and enchors and trim the trees on their lines, under the direction of the road supt, The hond of Charles ¥, Ben- nett as tax collector of this muni- cipality for 1952 was accepted, A bylaw to authorize the bhor- rowing of $7,435.10 in deben- tures to pay for water mains con- structed as a local improvement in the Harmony area, was read a third time and passed, The Reeve and Clerk were ap- pointed a committee to interview | Mr, J. A, Ellis re Government grants for direct relief, The following accounts were passed for payment; W. H, Ferguson, 8.8. No, 1, #450; H. T. James, 8.8. No, 4, #2560; HM. UH. Hutchings, 8.8, No. 5, $100; C. M: Hayes, 8.8. No, 6, £250; A. J. Malyon, 8.8, No. 8, £200; W. W. Manning, Union No. 4, $140; W. 1. Pierson, 8.8. No. 10, $1,600; T, C. Glaspell, 8.8. No. 3, $200. Lelier Accounts J. Russell, $112.50; Dixon Coal 5. C. Andrew's, $187.- S. White, $21; P. Thompson, $2.06; 0, Conlin, $68; (reo. Webster, $18; R. Christy, £207; McLaughlin Coal Co, £179.75; Fred Bailey, $131.75; A. Keast, $204.08; A. B, Lyons, (Continued on page 3) JAPS FORGED OUT BY U.3. INFANTRY Invaded American Defence Sector at Shanghai and Attacked Chinese Shanghai, May 4, -- A Japan- cse marine patrol invaded the American defence sector of the International Settlement last night, ignored police protests and indiscriminately attacked Chi- nese civilians and attempted to defy United States troops until a battalion of the 31st Infantry forced them to withdraw, The Japanese yielded sullenly, and with threats to return in force regardless of the Ameri- can troops, but a clash between the bluejackets of Nippon and the infantrymen who have been on auty since the Shanghai warfare was averted by a narrow margin. The incident arose out of Jap- anese charges that Chinese in the Anierican defence sector of the settlement had been hurling stones across Soochow Creek at Japanese warines on duty in the native Chapei sector which was almost destroyed during the re- cent hostilities, A strong guard of the 81st infantry was posted throughout the affected district after the controversy. Its Resources So as to Maintain Standard of Service Without Incur- ring Deficits The plans of the Oshawa Gen- eral Hospital for the building of | an extension to the prezent insti» tution, announced some time ago, have been referred for the time being, according to a statement authorized by the directors of the Lespital and issued today by Gerdon 1), Conant, president of tue board, Increasing use of the hespital for indigent patients, who are carried at a substantial loss to the institution and a de- sire to conserve the resources of «the hospital so that the present standard of service can he main- tzined, are cited as the reasons for abandoning the huilding scheme at the present time, In reaching this decision, the direc- tors have studied the entire hos- pital situation, and have taken cognizance of the fact that hos- pitals in Toronto and other parts of the province are incurring sub- stantial deficits, and in order to avoid any such gituation here, they have decided to .wait for | riore favorable conditions before | hranching out into a program of extension, In arriving at this decision Mr, Conant today informed The Times that the directors of the Oshawa Hospital had obtained the necessary data in relation to the advisability of constructing additional accommodation, and have given it considerable study. In arriving at a decision, he pointed out, they have not only examined the local situation and Itt requirements, but have thor- onghly canvassed the experience of other. hospitals throughout tho province, : we. . Hospitals Suffering 'It is common knowledge," said Mr. Conant, "that hospitals geners ally are at this time incurring bur- densome and, in some cases, serious deficits. According to press. reports seven Toronto hospitals have incur« red deficits aggregating $200,000. I'he mayor of Toronto has said that the city has no funds for huss pitals, It remains to be scen how these deficits are to be met. The experience of the Toronto hospitals is only typical, to a greater or less degree, of what is happening in most of the hospitals in the Prov ince, "Nor is. the situation any better or even as favourable in civic ine stitutions," he said, "In practically every case where a hospital is owne ed and operated by the municipale ity, the Board of Governors being appointed by the city, substantial deficits occur and are reflected di- rectly in and add, several mills to the tax rate. The Ottawa Civic Hospital, the Kitchener-Waterloo Hospital, the Royal Victoria at Lon= don, 'the Belleville Hospital, and many others come within this. cate- gory, It is evident, therefore, that municipalization of these institu- tions is not the solution. Immedi= ately that is accomplished private benefactions cease, administration costs increase, and deficits Become a certainty, Loss on Indigents "The fundamental' difficulty and problem with all hospitals at the present time is the preponderance of and loss arl¥ing from the treats ment of indigent patients," Mr, C.nant said to The Times, "Under provincial legislation the municipal- (Continued on page 3) Charges of Graft are Hurled at Witness at Inves 'Ottawa, May 4 -- The thunder clouds which have been lowering over the official residence of the Canadian National Railways presi¢ dent, on Pine Avenue, Montreal, tor the past few weeks, again broke in the House of Commons Railways and- Shipping Committee yesterday. For an hour and a half a hurricane raged with recriminations and charges flying thick and fast. "Graft" "breach of trust", and other robust expressions were bandicd around and the end is not vet. To-morrow/ E, R. Decary of Montreal, former director of the Canadian National Railways, will be summoner to give evidence." It was on Mr, Decary's instructions, acs cording to the testimony of G. H, Seguin , notary, vesterdav, that Mr, Sewuin completed the transaction with the Montreal Trust Company which ended with the leasing of the tigation of C.N.R. CNR, of the Pine Ave, house, The official with whom the negotiations were conducted, will also appear bes fore the committee as will Hon, A, A. Dunning, former Minister of Railways. . Mr. Seguin's evidence was that, acting under orders of! Mr, Decary, when the latter was a director of the system, he had in August, 1930, borrowed $185000 from the Monts real Trust Company, and with that sum bought the official. residence, paying therefore $175,000 for the propetty and $10,000 for the furnis ture, , He had obtained the money at 6% per cent. and the lease Tre. saved to the CN.R, was for 8/4 per cent. He explained that the extra twa per cent was to take care of amorts ization of the principal. "In other words," said Dr. Peter McGibbon (Conservative, Muskoka), "you ugot a graft of two per cent,