4. This Radial Railway Inquiry was not one in any sense directed to the administration of Hydro power operations by the Commission in charge thereof. We are of opinion that the development and sale of power is an essential public utility that rightly tends to monopoly. We share the view that there has been a good measure of success under the Hydro Electric Power Commission in this regard and that much credit should properly be given to the Commissioners and to the officials, particularly to Mr. Gaby.
5. Admittedly electric railways are of great utility to the people and serve them in a very close and intimate way. The business of electric railway operation is largely a local one and very competitive, different in many respects from that of power supply. While the railway system proposed would be a convenience and of considerable utility and advantage for transportation within the territory, we consider it questionable whether it can, under all existing circumstances, be properly called an essential public utility of real necessity.
6. One of the things that attracted our attention was the apparent inequalities in the division or apportionment among the municipalities of the capital cost in connection with the proposed system of electric railways. The large amount alloted to some of the townships which had a comparatively small population to be served and benefitted, seemed difficult of explanation. This could not well be fully examined into. To the extent that it could, the result is shown in appendix 5. prepared by Price, Waterhouse & Company for us and dealing with the amounts inserted in the by-laws so far as submitted.
7.
- The net debt of the Dominion of Canada increased from $333,996,850.14 in 1914 to $2,248,868,623.79 in 1920.
- The debt of the Province of Ontario increased from $50,052 876.57 (direct $40,405,535.96, indirect $9,647,340.61) in 1914 to $159,752,053.73 (direct $128,191,754.16, indirect $31,560,299.57) in 1920. At June 15th, 1921, this had increased to $167,082,414.95.
- The net debt of the City of Toronto has increased from $60,564,385.00 in 1914 to $75,452,881.00 in 1920.
- Advances by the Province to Hydro:
To October 31st, 1920 $ 66.312.501.10 Advanced in fiscal year 1921, to June 15th 21,500,000.00 $ 87,812,501.10 In addition, there was appropriated at last Session, and still unexpended at June 15th, the sum of $ 15,437,700.00
$103,250,201.10
In appendix 6 will be found fuller details of these.
8. Attention was drawn, in the argument before us, to the statement in a letter of Sir Adam Beck to the Prime Minister, with reference to the Port Credit and St. Catherines Railway, that the Commission had "issued bonds to the extent of $11,360,363. all of which have been guaranteed by the Province." A letter was sent by the Commission to the Attorney-General of the Province, asking to be furnished with a statement of the moneys the Province had advanced to date on account of the railways under investigation, and "the extent to which, if any, the bonds mentioned as said to have been thus endorsed by the Province, had been pledged (or sold) to raise money thereon." Some correspondence followed, which is found in Appendix 8.
In the correspondence is included a letter of the auditor, Mr. Clarkson, dealing with these expenditures as elsewhere referred to. In Appendix 13 the amount thereof, namely $1,254,241.11 is given, with particulars thereof. These expenditures have been made, notwithstanding that the question of whether the Province would or would not endorse the bonds of the Hydro Electric Power Commission, for the entire scheme, had not as yet been determined. It is to be noted, however, that under the late Government, an order-in-council, bearing date August 8th, 1919, had been approved with reference to an issue of bonds from time to time for the amount required for the Port Credit, Hamiliton and St. Catherines undertaking. It appears that $1,200,000 of the issue have been pledged, in connection with such expenditures.
