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Full text of "General report [of the] Hydro-Electric Inquiry Commission"

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Ontario Council of University Libraries 



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Electric Inquiry Commission 
i Enclosure to 



■«■**■■«•««•« 



GESZRAI* £&?€&? 



COPY 



fcuaffl xi 



;Y for Enclosure to 



uma TO VQLUHB IX 
of the 

GEBSTUL RSPCRf 
of the 

nnsRo-ixromio arson!! comassioa 



Section 28 - General 12 ^ 

Section 29 - Financial Status, Bare* 21st!"l923 # !!!!!!! 120 

Section SO - feature of Provincial LiaUlity .... \zq 

c 00 ^ 021 51 " VravtntiQ receives Interest on Us Advances 132 

-cation 32 - Method of Liquidating 2-rovinoial Liability 133 

fecotion S3 - Provincial Secponaittlity and Control .... 133 

EecUon 34 - taniolpal Liability m 



aOaj g " P^A?I^/ Qg^Crr/l^ IOS TO 7*1? A ? A SlttT^I:^ 



5 



Section 56 - peroral Q.\/ ia 

- Section 36 - .VicWol Prdbont La* on Private" 

l^nterprise ••••••* 147 

8ection S7 - Special Advantages of Present System !!!!! 151 

Section 20 - Contracts with Private Coneuaere 154 

Section 39 - Relatione with £Leotrioal Workers .! 153 

P^KT X - faXtfXOS, RADUl BAXL3ATS, 

Section 40 - Taxation , 160 

Section 41 - Eadial liailtraya ••••!"!!" Iaa 

Section 42 - Insurance ***** ZZ? 

Section 43 - Itaral Linos !.!,"]!!!!!* 17^ 

Section 44 - Hater Eentals ,..., ..!!"!!"!" X81 

Section 45 - General , % - fl . 

Section 46 - Present Conditions ..!.!!!!!!!!!!!" 191 

Section 47 - Suggested Changs in Organisation III!I!H 199 

Section 43 - Revision and Consolidation of iitatutos 

under union Conraiseion Operate* ...... 205 

Section 49 - ISethods of i>ros»tion and rul)Uci ty !.* &>7 



' 



' - ; : r '-"•'>•-• YDRO-ELECTRIC INQUIRY COMMISSION 

ipy for Enclosure to 



IE33X (Contlrsied) 



vxnn m- souse a? <re pq:^i jgfca 

Section CO - Prinslp&l Character! stloa of 

Genoratlng Plains •••••«•••• 812 

Section 51 - Futura rower Bequirtsnenta •. ••••••••*• 325 

8G£S Of fltS C0SCLUSIOSI3 AHRXTZS AS ,♦.......,.• 219 

COPY 

Appendix "A* - Llot of T.erorTa of w&ltor J. Franala & Coagpeny* 

Conaul tins linginear a .......•..•.,.,,.•«....... ««••• 

Appendix "B** - Liat of Feporta and l&soranda cy Itoasrs. Prico, 

Wat arhousa & Co. •• 

Appendix *C m - Eydro-Uletftric Power Corsalaalon of Ontario 

standard Popraoiation Fates ............................ 

Appsndlx **jy - Principal Charaotarlatlos of 1UK.F.G. Plant a ... 



o-Electric Ir.ouiRY Commission 

roB Enclosure to 



max (Continued) 



Bectlon EG - Principal Cbaractorlatlos of 

(tolerating Plant o ••••«••••••••••••••••••« 212 

Section 51 - Future I' creep requirements ..••*....•.•.•..,. 215 



BOSS OF SBB 00KLUBX03B 1BHIVSD A2 .... . „ ♦ 219 

COPY 

Appendix "A* - Liot of reports cy Salter J. Francis & Company, 

Consulting Engineers »•••••«•••«••••••••*••••«•«•«•« 

Appendix W B H - List of Eeportc and I&soranda by yessrs. Prioo, 

Waterhousa & Co. ...... ................... • 

Appendix *C" - Kjdpo-Slootrio rower Conaiaslon of Ontario 

Standard Depreciation Fates ••• 

Appendix «J/* - Principal Characteristics of 2!.E«F.C. Plants ..♦••• 



UyoRO-ELECTRIC INQUIRY COMMISSION 



Coi'Y 



hOR Enclosure to 



120 



ff .5 ff B P A Ii 

In previous sections of this report. In dealing with tho 
le^al statua of tho Cosedssion, its relation with tho Govorraiont end tho 
question of sinking fund and interest charges, we have dealt in a ffenoral 
way with tho liability of tho Province in respect of all works owned or 
operated hy tho Coior.iasion, and tho oootiona just referred to should ho 
read In conjunction with these sections. 




s>rtlftfl AS 
ftmmiAij im^s* KAPOK 51st. 1SS3 

As pointed out in our report entitled "History and General 
Eolations*, tho Auditor of tho C omission* a accounts, 8r« 3. 2. Clarksou, 
prepared for ua a statement showing tho cash advances and guarantees ra&do 
or given hy tho Frovino* in respect of Hydro-Electric undortakiJJgs, sinco 
the creation of tho Cossaission, and tho siting fund deposited with tho 
Provincial Treasurer as security for its advances and guarantees. The 
statement referred to appears in cur report entitled "History and General 
Eolations*, hut we repeat it hero for purposes of convonienooj 



HYl'NO-CLtLIKK. ir<UUIKY V^OMMIbblUN 

Copy for Enclosure to ^^ 



Gash advanced "by the Province of Ontario to 

the Cosmlaalon up to Slst llarch, 1923 .............. •• $107,282,799.90 

Kade up aa follows i 

Ohlpptvva Posrer rovelopraont ...... £62,025,023.43 

Ess ox System 22,000.00 

■lagan and othor Cyateas 45,2; r >3, 775.48 

In addition to the above, bonds wore Eunranteod by the 
Province as follovsi 
Bonde of The Cr.tr.rio Porer Oojapany 
and of the Cosunieaion issued in 

connection therewith ..... £23,001, 000.00 

Bonds of Casroiesion Issued to pur- 
chase Baaex Bystesj 226,000.00 

Bonds of Cosdaaion issued to pur- 
chase Thorold fciystea ................. 100,000.00 

Pobcntures of Toronto Power Coarany 
Bu^antecd by tbo Ccrciission and 
covenant of the Conrdcsion guaranteed 

by the Province 12,303,831*95 

6'/: Bonds of the C omission re "Clean- 
up* Deal 619,000.00 

Bonds issued b?/ Corral s a i/a^ 36^4^/^^ 
and rehabilitation of ii.V*x«XM 1 i 

P.ailwsy «••• 3,000,000.00 

Bonds Issued by Co r.ission re purchase 
of capital stock of Toronto & YorX 

.Bnilu-ay and fcofcoabers Railway •• 2,375,000.00 

Bonds issued b^ CoicVLacion re Port 

Credit & F>t. Catharines fiailway (now 

deposited with the Bank of Montreal 

as asourity for a lean of $600,000) .. 1,200,000,00 

Bonds and cash advances re Central 

Ontario System 1?., 117,700. 70 55,112,540.73 



ffotat ©io above statement la on a cash basis and 
doea not include uncollected slaking funds or 
those subaecaently provided as at October 31, 1922, 
in respect of the Toronto Power Conpaay and sub- 
sidiary companies. 



§162,235,340. S3 
Less : Siskin? fends deposited with the Pro- 
vincial treasurer and securities held by 
the Ocunlssion at Itsrch Slst, 192c, to be 
deposited witSi the Provincial Treasurer* 
Eiat-nra and ether Power Systems ........ 2,608,919.21 

Central Ontario System 28.653.60 2,537,502.01 



$159,8i;7,7S>7.82 



■ 



Hydro-Electric Inquiry Commission 

Copy for Enclosure to 



130 



flvjw:-; c? provngm im am 

It will "bo noted from the statement In the preceding section 
that tfco total not liability of the Province In respect of all works operated 
by the Corcniesion as of ttaroh 31st, 1923, amounted to approximately £160*000,000, 
The total Provincial debt as at October C'l3t, 1922, was £260, 000,000 including 
direct liabilities of some £1:41,000,000, and indirect liabilities of some 
#47,000,0 ; 0, so that the liabilities incurred for the Conxslsaion and the 
Central Ontario liystea which is operated by the Commission constitute more 
than half the total liabilities of the Province, We illustrate this by means 
of two charts, the one on p&ee £2 shows the total provincial liabilities cos- 

mpv 

pared with the liabilitiee Hsoi^roti by -the Province on account of the under- 
takings of the Camiaission and the Central Ontario System. It will be noted 
from this chart that the groat increase in the Provincial debt is largely 
accounted for by reason of the advancos and guarantees which it bas made or 
given to the Commission. On pc^e 131 another chart is given which shows a 
similar comparison on a percentile basis. It will be seen that, in 1928, 
sore than b5% of the total liabilities of the Province are accounted for by 
advances made or guarantees given to the Commission by the Province and by 
the outlay made by the Province in respect of the Central Ontario System. It 
would be difficult to show in a more graphic manner the rapid development that 
has tafcen place in the operations of the Commission. 

She statement submitted by hr. Clarkson does not inoiude cer- 
tain payments made by the Province to the Commission to cover the cost of 



/&/ 



100? 






























90 






























80 






























70 






























60 






i , 


























































^__ p ^ 






50 










40 






























30 
















"^ 














?0 












■ 












■4 










































10 






























.. 















1 









1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 



TOTAL PROVINCIAL LIABILITIES 



TOTAL H.E.P.C. AND CENTRAL ONTARIO SYSTEM 
CASH ADVANCES AND OTHER LIABILITIES 



H YDRO-ELECTRIC INQUIRY COMMISSIO N 

TOTAL PROVINCIAL LIABILITIES COMPARED 

WITH THOSE INCURRED BY THE PROVINCE 

ON ACCOUNT OF THE HYDRO- ELECTRIC 

POWER COMMISSION AND THE CENTRAL 

ONTARIO SYST EM ON A PER CENTAGE BASIS 

September lltti, 1923 



Hydro-Electric Inquiry Commission 

; op y for Enclosure to .-,, 



preliminary eurveyo and no forth, tfbese advances, except to a vary limited 
extent, are not recoverable "by the Province and are taken out of the current 
roveauo and "borne by tho Province at lar#o. The total of the moneys so expen- 
ded amounted at October Slat, 1922, to ^2,626,663. Iteming up the Provincial 
advances and guarantees, the following classification will give a comprehen- 
sive idoa of the situation as it stood early in 1323 1 

2£ade by Commission, paid to it by tho 

Province &:U not recoverable by Province »«*••«••••• $2, £25, 663 

2. C«nti*I Ontario Svat— 

;°urchK!»cd aiid owned by Province, operated 

by Commission ..*.... »•••«•••• 12, 117.708 

S. Migrant ee a .b y Provin g 

Bonds issued or as^T&cirVrjT^^taaion ... •*•««• 42,994,031 

4. Cas h >dTan ^ 3 by . F goy_l ,saj* 

Repayable by Comaiasion out of Revenue .............. 107,232.799, 

$164,921,001 

... j BBSS WSm -- • mSSSSSS m 

8<K?UQa, 31 

FEcyiacs B^sraa ie?si>:s? oh its AyrAiPaa 

5fce (question of interest payable to the Province in respect of 
moneys advanced by it to the Commission is fully discussed in Section 15, 
Tart V of this report, which deals with the subject of "Power at Cost", As 
pointed out in that section, our separate report entitled "Cost of Money 
Advar.3ed to the l r ydro-I2.ectric Power Corasission by the Province of Ontario* 
also deals fully with that subject. *e will not, therefore, refer c&ain to 



Hydko-Electric Inquiry Commission 

Copy for Enclosure to ^g 



this oueotion, except to Bay that the CoKKieoion io now ror^ularly and fully 
taeeting oil poyaenta with reapoot to interest on K»neya which have boon adv&n- 
ood to It for tho purpose of the undertakings ovar which It has diroot oontrol* 
except In tho oaae cf the Hplgon I>evoloy?3ent« Vhln aeans that* with the ex- 
ception Ecntioned, tho nunicip&litiea are charged by tho Ooraaisslon in the coat 
of power, lntorost on nionoya expended on vrorks for their benefit and the Coamlo* 
alon ia in turn required to pay this interest over to the Covernraent, 

Qie oum on which the Kunioipalitisa arc paying interest does 
not eisount to tho total caah adT&neea of C107, 000,000 ©.a a proportion of the 
lntereet is charged asainot revenue frora contraote with others than isunioipal 
corporations, and In aorae oaaaa collection of interest ie deferred on part 
of the coot of wor£a as toi£^;Htn^£oratj[ng oapital. For example, of the 
£21,411,439.63 capital cost of the transmission lines, sub-otatlona and so 
forth, of the JJlasara Syoteia to Ootobor Elet, 1922, interest was payable 
to tfce Cocraiosion by cunioipalitioa en £16,543,465.04, "by companies on 
$2 t 62l,743.63, and none at all on £2,246,2i>0.96 of non-opera tins capital, 
2he ssount termed non-operating capital represent a investnionta in vrorfca under 
construction and so forth, tho interest thereon being capitalized until the 
works are consisted and pat in operation, at which tiroe interest charges to 
owloipalltioa conncoce. 

Station S& 

XffS'K 0? LiyjISL-TL^ I70VCTIC lUZtlVPX 

©ie terns and bases upon which the raunloipallties, and, in turn, 
the Ccesdssion* are repaying the cost of the undertakings of the Corasiiaalon as 



PRO-Electric Inouiky Commission 

01 * .tf for Enclosure to 154 



t/mreerate^ above. Is dlaauseod in dotai'l In our report entitled "History and 
General delations", and the rcathoda by which sinking fund is collected le dls- 
euesed in this report at eor.o length in Sootion 16, Part V, "Tower at Coat" f 
under the subject of "Dinkiivj Funds". 2ho previous dieou33ioa in this report 
touched oaly briefly certain important oattora which have a direct bearing upon 
the Provincial liability* 

1. ficrendlturQ Chnttr^ble to Province - &>.626.663. 

This sun represented expenses incurred by the Cowmioslon in res- 
pect of ene-ineertns assistance and estimates prepared for the wunicipalltios not 
under contract ; general surveys i excess of expenditures over revenues arising 
In connection with the Electrical Inspection Department, investigations, surveys 
and so forth In respect of liyt^^^o^x^g/Iiadial Hallways and other matters, 
together with that portion of the Chairman's salary which is paid by the Pro- 
vince* Sis amount is not recoverable but will remain a contribution by the 
Provicao as a whole toward the undertakings and worfce controlled or ssanaged 
by the Cosraission unless the isunialpalities, which are interested, decide to 
take power, or the proposed railways are constructed, in which oast a small 
part of the above amount may bo repaid to tho Province* 

2* Cen tral Ontario S]ratqra--.ag».ll?^B£* 

As pointed out in our report on the "Central Ontario System*, 

and our report on "History and General Eolations"* of the investment by tho 

Provide in the Central Cntario Sya torn, provision has been made for the repaynent 

of only four j>9T cent., or about $420,000. Tho sinking fund accumulations in 

respect of this m as at Cctcber 21st, 1922, amounted to only £37,542.02* 

As we have already stated, steps should, In our opinion, be taken to place 

this undertaking on a power-at-cost basis, to be administered under the 



iro-Electric Inquiry Commission 

- orY foR Enclosure to 15 q 



provisions of 5!ho lower Carcuisaion Aot, and the whole aystea brought into 
lino with other systems throughout the Province* 

3. jto*niw 1?y ri-gyHmiQ, .- CigiPS^Mfrl 
This fs&Qunt is cade up of i 

A. Bonds iaauod fcjr the Ceritalasion and guaranteed 
"by the Province in respect of j 

(a) Purchase of Essex oystesa •••*«..»••.•••.••«•*•• # 226,000 

lb) Purchase of Thorold Eystera ..... 100,000 

(o) Purchase &«'! rehabilitation of 

Sandwich, Windsor & Anchors tburg Pailraay . .... 3,000,000 

Id) Port Credit-St. Catharines Railway (de-ooited 
with the &aiiK of Lontre&l as security for 

a loan of $600,000) ..... 1,200,000 

(e) The Ontario i'owor Company . .... 11,200,000 

(f) "Clean-up" Pe^l - Power 619,000 

K&dial 2,S?£,000 

B. Bends oft 

Iff) The Ontario Power Cea^-any, Inclusive 

of barte losr.^ ^TVO \A 11,091,000 

(h) Toronto Iov?er OoKr^a? Je pajnont of which was 
assUited by the Ociarjissioa and fruaranteed 
by tt«o Trovinoe 12,55-3,031 

$42,994,881 



Vt have pointed out in our report entitled "History and Oencr&X 
P-elations", that the repayment of these bonda ie not assured as yet by the 
adoption of any uaifora sii&ins fund policy. 2ho details of repaytsoat will be 
found set forth in our reports on the respective syetuisa affected, and a general 
susmry thereof contained in our report .fast rsentioned. We point cut here, 
however, that in cojso caaes the sinking fund now being set aeid® if continued 
will be sufficient to retire certain of the obligations at maturity. In other 
oases a forty-year sinking fund basis hao been adopted. In other instances no 
■ttffclQg fund is Mng set up at all. On the whole, the policy adopted by the 
Comission in reapeot of this bonded indebtedness is far from satisfactory 



Hydro-Electric Inquiry Commission 

low for Enclosure to j^£ 



and the question arises as to vjhothor tho Conanisaion is justified in not 

ssttinc up a sinking fund ia respect of these toads in tho eaao runner as it 

sots up sinking fund In respect of cash advances mado to it under tho terns of 

Tho i^ovror Commission Act, If the ocurso taken 07 tho Commission in this respect 

bo propor, it follows that it roots with tho Commission to decide as to whether 

or aot it will set up sinking fund in respect of bond issues. Consenting upon 

this natter in our report entitled "History and General Eolations', we sayt 

"Did tho Legislature intend to confer upon tho Consaission auch 
authority or did it intend that outstanding bond issues should 
be troated in the same manner as cash advances, snA sinking 
funds provided in rsspeot thereof, unUer tho general tolas of 
tho Po^er Commission Aotf M 

«• Coch Advances by Provens «> - v*? 7 !*??,***- 

Tho manner in *^^nta<^rcd is collected by the Commission 
from the mnlaipalitioa in respect of cash advances and the manner of its pay- 
ment to the Province by the Commission is discussed in various system reports 
and in our report entitled "History and General Eolations". As pointed out ia 
thoso reports, tho basis of repayment under tho terns of Tho :^raer Commission 
Act is such that in a thirty-year period a sufficient sun will bo accumulated 
for the repayment of all advances* In the esse of the Sftunder 2ay gyetesi this 
procedure has been departed from and tho municipalities are paying on a forty- 
year basis, but this arrangement was confined by tho Legislature, In respect 
of tho cXieenstoa-Cbippawa Power Development, tho Commission haa interpreted 
Section g of Tho Ontario Ma^ara Dovelopsent Act, 1917, as authorising it 
to collect payment on ginkias fund account as it may deem necessary and 
proper. Originally vfccu submitting to tho Government Its estiraatea as to 
tho cost of power frees this Development, thirty-year sinking fund basis was 
adopted. In estimates submitted to us it now adopts a baais of forty years 



Hydro-Electric Inquiry Commission 

. py for Enclosure to 



13? 



eosXBonointf At the expiration of five years, with the result that the annual 
price of Eia^ara power for a lon& period will be substantially less than it 
would bo with a thirty-year sinking fund basis. 

the question a<;ain arises as to whether the Legislature intended 
to confer upon the Coraraission the authority to fis the sinking fund period in 
respect of advance* raade to rsoet expenditures on the Queens to n-C hi ppawa trover 
rsvolortnent. 

The CoEwission is required by 'She Power Corarainslon Act to invest 
all payments received by it on sinking fund account fron» inunioipal corporntion8 
and others. In bonds of the Province end to deliver thece securities to the 
Treasurer of Ontario aa security for repaytaont of the advances uwuie by the 
Province to the Co^nlsaion. \J£\jft>|as ej delivered to the Treasurer of Ontario 
ore the only direct security the Provinco can secure for it 3 advances to the 
C omission* 

Attention is here directed to the fact that #jq Power CosKdssion 
Act defines only the basis upon ehioh payments on sinking fund account are made 
by Euniclpal corporations- A considerable proportion of the capital cost of 
works serving Municipal corporations is not included in the amount in respect 
of which interest and sinking fund paynsenta are collected frota these nunioipal 
corporations, but is apportioned to private oorcpanles, and the Act is silent ae 
to a basis of sinking fund for such proportion. Again, the Act contains no pro- 
vision for establishjoent of sinking fund3 In respect of such expenditures as 
those on the Choroid, c&slqx and Bonneohero Isiver Storage Systems. Aith respect 
to these scatters it would appear that The Power Cozsaieaion Act is defective 
and that soce provision should be included therein whereby procedure in such 



Hydro-Electric Inquiry Commission 

y, copy for Enclosure to 130 



eases la "brought into conformity with tho #©noral spirit of the Aot# 

i^cv ^P.XAL p, >.^::.-r3ii. irr a^ ccftTpqfr 
It la clear that tho Province acting as tho banker for the Co?a- 
nisoioa or as the guarantor of its outstanding bonded indobtcdnoss, baa a 
very definite and direct responsibility. We hare shown tho nature and growth 
of thia responsibility and it is clear that with the continued demand for in- 
creased amounts of powor, tho Provincial liability will continue to grow, 25ba 
growth in the past has been very rapid* but there is evtry reason to boliove 
that tho growth in the future will be even sore rapid. At the present time 
tho intorestaof the Province rattoxop^h&M may be said to represent about 
a $8^ ownership of the undertakings of the Corfciission, tho nuniaipalitieu 
having acquired a proprietary interest , through the payment of sinking funds, 
of sonsthing loss than 2$. 

£e have shown that in respect of the bonded indebtedness of, and 
cash advances for, the "greater Eiagara Systeca", # the Province, Instead of boiag 
relieved of its liability at the end of a period fixed by The Power Corssussica 
Act, will still reuain direotly or indirectly liable to an amount in excoas of 
£37,000 ,000. (Ihis ajBount is predicated on the conditions outlined in our 
report on the "Bi&gara System". ) *• have shown that by virtue of special legis- 
lation the Cesisi83ion has deemed itself competent to fix sinking fund on 



*- She torn "Greater Slagara Sygten" is usod by ua to indicate 
tho inaL union of all the vvswr plants at Hiagara T&ioh serve 
the "Niagara Systes" &nd which system up until October 31st, 
1922, did not include ihotto power plants. For details see 
our report on the "Hiagara System* 1 . 



•' Jydro-Electric Inquiry Commission 

139 
'■ jopy for Enclosure to 



the Queens toa-Chippawa Powor Devolopcent on a forty-yo^r basis instead of a 
thirty-year "basis as prescribed by S3se Power Cosiaission Act, It is obvious, 
then, that, while the responsibility of the Province is an ever-increasing 
one, its control is constantly being lessoned* 

Shis condition of lessened control applies also in tho Case of 
guarantees given by the Province* According to the Auditor of the Commission's 
accounts, Kr. <3« T. Clar&son, the Cossslssion bas always contended that the 
guarantee! bonds of the C omission or the guarantee of the payment of bonds 
issued by the Ccs^isslon by the Province is not an "advance* within the meaning 
of She Power Oosssisslon Act, and that, accordingly, the Cocsaission in not 
required to adhere to the eiz&ins &***& haeis set out in Section 23 of the Act, 
Ehen the Province advances cn#^ £e-r tfc« ^orpese of the Commission it nearly 
always has to borrow the money on the security of its own bonds, Shero is 
no essential difference between the liability of tho Province in respect of its 
own bonds, frea the proceeds of which it mafcea oash advances to tho Commission, 
and its liability in respect of bonds issued or assumed by the Commission, 
payment of which is fluaranteed by the Province* 

In the last analysis the guarantoe of bonds by tho Province is 
a liability Just as direct and just as road as its liability in respect of its 
own bond issues. In the event of default in the payment of principal or 
interest in respect of the bonds, payment of which is suar&nteod, there ie 
no doubt that the bondholder would look directly to tho Proving o for payment 
in satisfaction of Ms claim. The value of tho Provincial guarantee is 
evidenced by the fact that the Commission has requested tho Proviaoo to 



kr 



dRO-Electric Inquiry Commission 



v 



ipv for enclosure to 



KO 



guarantee each and etrsry hand issue issued hy it ia connection with its power 
under takings. Indeed, the section of the Aot ia which the fconds of the Corj- 
mission are guaranteed hy the Province authorize* the Lieutenant-Governor in 
Council *to male© armugeaenta for supplying the zaonoy noaess«ry to fulfil the 
requirements of the e&id guarantee or guarantees, and to advance the aoount 
necessary for that purpose out of the rufclio funds of the province*' • 

We have sho«a that the ecsployjnont of diverse basea fcy the Com- 
mission in the collection of eix&iug fund amounts to a real advantage to the 
Siagara Syetea and a distinot diccritiinution against the other power eystema. 
Aside altogether from this phase of the question, the practice now followed 
ia plcGing; the Province in the aaosealeus position of taking full and coiaplete 
responsibility for all capital /t^es^>\^ the works of the Cotsaiesioa without 
having any eontrol over the terras of repayment of a nroater part of the sjoueye 
•0 invested* She question to which we have once or tvice already referred 
again arises. Did the Legislature intend that suoh a condition should exist? 
If not, then those works acquired by the Coamiisslon through the purchase of 
operating ooispaaiea, and the Queens ton-Chippawa Power Dovelojsaent, together 
with all undertakings which iaay he huilt in the future, should he placed in 
the sane position in respect of sinking fund paymonta to raoet bonds issued or 
assumed or jsonoys paid as cost of the worX, as are striking fund payouts to 
repay advances of the Province to raeot the cost of worlcs for tho "benefit of 
contracting municipal corporations under the tema of S!he Power Conroieelon 
Act. The Coseaisslon cannot rightly he squired to pay to the Province Interest 



10- 



•Iydro-Electric Inquiry Commission 

oP y for Enclosure to 141 



*n& eis&ing fund on certain outstanding beaded indebtedness, for those 
payments raaat go to the bondholders under the various trust deeds, tout the 
Proviso© can require the CoKseissioa to fix & definite policy and set up a 
fund to liquidate Its indebtedness la respect of these toads as Is provided 
in The Power Qewission Act la respect of cash advances asado to the Ccwaslg- 
sloa by the Province, Ca&H advances and guarantees arc for the ssco purpose, 
ns&ely, to provide for the oost of works serving contracting mniclpalitios. 
If and rfken this Is done, the spirit of the Status© will have teen fulfilled, 

Section 54 

5fce subject oS^^rfcirni -ilpbility for ropaystfat cf expenditures 
Bade by the Comiasicn out of advanced by the Province to isset the cost of 
worfcs undertaJtea by the Co-ssalssioa has boon discussed in Part V of this report 
under the heading "Power at Cost", and has been dealt with in sorce of our 
previous reporti, notably that entitled "History and General P-elationa", to 
which we refer tour Honour for what wo have sought to KaXe a oonprehoaaive 
•tatenent on the subject* We, therefore, do not propose horo to susJce extended 
oosasonts on this natter, but merely to state generally its outstanding tfoaturse. 

tfuaicipal liability is closely associated with Provincial liabil- 
ity; consequently, this section should bo road la conjunction vcith the sections 
lanediatoly preceding. Dealing only with oash advances, ao yointod out by us, 
the Province alo^e is liable for repnyrawnt to the lenders of the ^107,000,000 
advanced by the Province to the Ooaaiasloa for power under taxings, Eo tcunloi- 
pality has guaranteed the bonds Issued by the Province or issued it» own bonds 



^RO-Electric Inquiry Commission 



I »1 for Enclosure to 



to secure the Province for ita advances, eo of those large bond issues not 
one oent is a direct liability of the Eunioipalitioa or of any of thea. In 
their financial stafcesenSa the lsiralelp&litles served "by the Cocseission do 
not iasludo any indebtedness in resp^ofc of these advances. 

Sot only are the tsunicipalitiea froo from liability to tha 
lenders of the ©oney. but they are free fron any direct liability to the 
Province iteelf. In case of default the Proviso© could not recover judgment 
esaioat the Kanicipslities for a single dollar* 

v&ile neither the Coiaalssion nor the imniielpalitiea are liable on 
the bonds, the Cosaaiaaicn la required by Section 15(la) of She Power Cossaieaion 
Act to pay over to the Goverji^ent yes? by year a sua sufficient to pay the 
MMBtl coat to the (Jo^orKmeiH^oV-ite advisees to th© Commission, and each 
sjunicip&lity served enters into an agreement with the Comission to pay for 
the power reeeived froza the Coisniealon under contract a price which will reyay 
the interest and also cover the araount required to be pit aside to fona a 
sinking fund sufficient to repay the advances of the Province to meet the ooat 
of the respective works. 

xh* payments on sirring fund account, received by the Coraaicsion 
from the r.uniclpalHioa, aye required by the Act to be invested by the CoeeIs- 
sioa in Provincial securities, und theee nr© deliverable to the £reosure.r of 
the Province as eeourity for its advances. In this indirect way tfco cuniol- 
palities repay to the Province it3 advances *br the cost of works constructed 



jfDRO-ELECTRIC INQUIRY COMMISSION 

?y for Enclosure to *43 



by the Cossniesion for thoir benefit, She agreesionts entered into by zmnioipal 
corporations with tho Coranisaion include in their tessts of payment for power 
supplied, provisions similar to those contained in Section 23 of She Power 
Commission Act. 

In case of default "by any csusioipality, the Coi&sleeioa could 
sue the tannic lpality under Section 22 of She Powor Cossaission Act for enforce- 
ment of the contract entered into "by the tsanioipality, or it might, in the 
alternative, refuse to supply rsore rowsr until arrears were paid, £he deficit 
in respect of tho fiipigon Uovolopmont, which we are informed, eiaounted aa at 
October Slet, 1923, to over £500,000, is a ooaorote example of what has 
occurred in one case. So proceedings to oolleot this defioit have been ta&en 
and it will doubtless he o^ro^^ iliAimj, but it showa what a real liability 
the Province incurs in aiafctn& advanccig, and how helpless it is to recover when 
the interest on its advances gets in arrears. If similar default wore r.ade 
by any other municipality, tho inability of the Government to collect would 
again be shown* 

in the matter of Provincial liability for the bonds, out of the 
proceeds of which cash advances are wade, thoro ie another broad Question, 
naaely, that of tho possibility of a great advancement being made in the 
science of developing elootrioity or in gonaratins powor fron other sources. 
If scientific dlsoovorles should render obsolete the works now cocpleted and 
power could be secured by municipalities at a lower price tfcnn they *ould have 
to pay to tho Connlsalon, the Oo/noission would be lively to find it nost 
diffioult to get the municipalities to tako powor from it* It is true, of 



Ivr rO-ELECTRIC INQUIRY COMMISSION 

F 144 

^ f0B ENCLOSURE TO 



course, th&t the Province, through the Legislature, would have power to 
©aforoe p&yn5«nt, tut it Is wall fcnown that any Government is a poor b&sid 
at forol»3 collection froia its constituents. If such oonditiona should 
arise the Province raight be left with the enormous liabilities which it Ms 
incurred for advances to the ConEilsslon, and with little prospect of collecting* 

Ehe foregoing discussion has been in reference to cash advances 
but it is to be noted that the liability of the jnunloipalities in ruspeot of 
bond issues guaranteed by the Province is not relatively different frosi its 
liability i.n respect of cash advances* 

We believe that the present method of financing the undertaking 
of t&e Cossaission is the rac^T^io^iEbfte/one, and that in any evont we have x 
gone too for under the preeent i)laa to cake it possible to retrace our steps* 
but if we were starting anew there would be nuoh to be said in favour of 
adopting a course eiailar to that adopted in respoct of advances for the 
construction of radial railways vshore each icunicipality is required to 
pledge underlying bonds to the extent of the expenditure «ado on its behalf* 
Such procsduro would give the Commission, and, in turn, the Government, a 
direct right of recovery in case of default* *Tje Municipalities would know 
where they stood and would be likely to keep in closer touch with expendi- 
tures on their behalf* with the aocuaul&tloa of sinking funds payable by the 
cunloipal corporatieas, the underlying bonds provided by thecs could bo 
returned in instalasnts proportionately to their contributions to sinking 
fund account* 



' 



OfUftf TO 



ic Inquiry Commission 

US 



2a our report entitled "History and General Relations", we have 
Illustrate^ the growth In the hydro-olectrio ffiovecrant In Ontario "by the use 
of a chart prepared for ue hy our Consulting Knginoor, which wo repeat here 
as pa#e 146. 

From this diagram it will ee noted that ahout six years before 
the Qormlssion oame into aotlvo operation, there was about 126,000 horse-power 
developed in the Province an^yv^ej^rafifcho Coanaission actually began to 
dolivor po^er in 1911, tho instaltatl capacity had grown to about 625,000 horse- 
power* At the end of 192H, the poorer sold by the Conzaisaion represented about 
CD^ of the total installed capaoity of the combined public utilitios and 
privately-owned enterprises In the Province. 

Under the terms of The Power Cozsnioslon Act, tho Commission has 
withority to purchase or expropriate the undertakings Gf private oonp<anlos 
which Bay "be required in the operation of tho works of tho Gonmission, or 
asaossary for tho distribution of power within the municipalities. That 
this authority has "boon largely exorcised is evidenced by tho number of pro- 
perties which havs boon acquired "by the Commission or tho rraaioipalitios as 
shown by a list supplied to us by tho Tydro-^lootrio Powor Commission, whioh 
list is included In our report entitled "Tlotory and Oonural relations". 

































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oR Lnclosure to \jtf 



The properties so acquired amount to approximately ninety In 
nuraber, e&d tho purchase price Involved varies frow a few thousand dollars 
to fibres aggregating taany rcllllons, as for instance, th© purchase of The 
Ontario Power Corapany, And its subsidiary, She Ontario Transmission Gorapauy, 
which involved n figure of about $2£,4E0,000t also the Toronto Power Company 
and Its subsidiaries* involving a purchase consideration of §32,734,000, of 
which a part has been assumed by the City of Toronto* 

Stasias u 

&y?:;flT o? fb— ;:r? lait r it ram? 3 aSSSBSBSSg 

The powers £rairnjd/"t<i T7J pommies ion under The Power Couxnioalon 
Act nre so far-reaching in their effect that thero has been o tendency to 
discourage private enterprise frora Investing in the development of the water 
powers of the Province, excepting in those regions where the developments are 
essential for tho isaintenanae of a specific industry, and into which territory 
tha Cossnlsslon has not extended its service. Complaint has been cad© to us by 
different persons that the present law Elves to the Coradtssioa a "confiscatory 
authority" such as to prevent and discourage the development of power frost 
leases that &tq privately owned. This Eatter was brou^it particularly to our 
attention in the case of the Georgian Bay Power Conpany, which owned the 
original power site at Etigoain Falls, and which hud done a ooa3iderable amount 
of dcvelopnent wor3c there. It had brought its project to a point where addi- 
tional capital was required for its completion and had been successful in 
interesting capitalists to tho point whore they wore ready to finance a lar^e 
sc> qij of devclornent. 



143 



We were Informed that the le^al advisers of these capitalists 
: reported against the advisability of entering into the no head for the reason 
that the righto of the company Right at any time become valueless on account 
of the Corasruiasloa having the right at any time to expropriate or otherwise 
acquire the developraont, ag&inat the wishes of the owners or to establish a 
competing plant* According" to the statements of those who war*; inter^stvd in 
this development they wore unable to proceed with their plane and were finally 
forced to accept the CcEesiaaion'a offer of purchase for all of their rights. 

A case Botnawfcat different frora the one referred to above, ia 
that of the Georgian Bay Hilling and rower Company, United, of the ?owa of 
Keaford, which for oany years supplied that raunioipslity with light end power. 
The representatives of this ooppasy c£ain lthat , on account of tho provisions 
of the ifcaiolpal Act, oomonly referred to aa the "Conraee Clauses", not being 
applicable to nunioipal corporations receiving electrical power frora the Con- 
mission, they were virtually forced Into liquidation when the R&iniclpality 
of ISeaford decided to enter into contractual relations for the supply of 
eloctrioal energy frora the Corsraisslon* 

These two eases are referred to not for the purpose of reflecting 
upon the manner in which tho CcTamlssion has conducted and carried out the 
various tranaaotioas which havo boon investigated by us, bat as illustrating 
the difficult position In which- tho Coranissioa la placed when noting oa behalf 
of Municipalities which it serves and whoso interests nwst he safeguarded, 
while, at the anas time, as a body corporate representative of the general 
public, it ewea a duty to aot Justly and fairly with citizens of the Province 



% j ydr o-Electric Inquiry Commission 

1 . 0>>r F OR ENCLOSURE TO 



149 



who have in good faith invested their iaoney in enterprises, from which doubt- 
less they eapeeted to reap a personal benefit, but which at the suae tine 
nave b^en of public service. A public body possessing the £roat powers 
conferred upon it by tho Legislature should always be careful to use these 
powers with fairness and isoderation* 

Tb9 provision in the Aot of 1906 arid subsequent Power Cosaais- 
sion Acts, that the so-called "Gownee Glauses" of the Iknicipal Act should 
act apply to municipal corporations under contract with the Comission, was 
one that clearly differentiates these Acts fron the Act of 1905. 32ie "Comiee 
Clauses'* in effect required rsunioipalitles, in which any private company 
operating jyas, eleotric light, heat or power, or water works was located, 
to rasko an offer to purc>^e€^^^Qk'.|j3)aly^franohi8ed of such company before 
entering into any scheae for the construction and operation of such j/Ublic 
utilities. Sheee Clauses were declared not to bo affected by the Act of 1905, 
In the debate on tho Bill introduced at the Session of 1906, tho Honourable 
Mr. Whitney stated that ho thought there would bo no expropriations but that 
if there were no power of expropriation the 3111 would be worthless. Shortly 
after the passage of the Act, the Chairman of the Commission speaking at Ckilt 
on July 24th, 1906 • saidi 

"tfhe Billa of 1903 and 1906 have repeatedly been compared. 
Tr.e difficulty we foujid in the old iiill was that wo were 
operating undar the Comet Bill." 



.jydro-Electric Inquiry Commission 



.. P v for Enclosure to 

'° 150 



She "Qojbsqo Clauses*' were repealed in 1913, hut it was pro- 
vided that such repeal was to ccrae into effect only on the proclamation of 
the 2d.eut*nant-£ov©rnor in Council. Such proclamation, wo understand, has 
not yet heon issued, so that any municipality in which a private company or 
individual is operating and which has not entered into a contrast with the 
CoKsalssioa for a supply of power eannot construct or operate a po^er genar- 
a ting and distributing plant of its own without following tho procedure laid 
down in the Clauses. 

It io pertinent here to draw attention to the methods adopted 
hy the CojiSBiesion in acquiring rights-of-way for its transmission linos. ffS 
have seen informed that the ^Rrces^np^j^s^tically forced upon owners of 
property over whioh tho CenrarSaion desires a rl^ht-of-way are such that the 
value of tho whole property is seriously depreciated and inadequate compen- 
sation is paid for the rights granted. It appears that under these agreara^nta 
the Coraaiesion may ereot its poles, towers and other appliances net only 
alon# specified tracts of the property of the person with whoa the agreement 
is made, hut nay at any time change the location of its llnec and use any 
other portions of suoh person's property. The value to a present owner or 
prospective purchaser of property suhject to such an fcKreement, i» necess- 
arily less than if tho agreement raeroly provided for a right-of-way on a 
defined course. 



Hydro-Electric Inquiry Commission 

COPY 



for Enclosure to *9+ 



SP3PUL jigr.A.sg&.Q-ffl rrjKmi&t sTssat 

By reason of the vor/ extensive activities of the Hydro -Bleotrio 
Power CotEEdssioa, the rrcvinoo of Ontario la of tea referred to as a public 
ownership province* and the Belabouring Province of Ouebec referred to as a 
private eatorprise province* la coopering conditions hero uith those in the 
Province of Quebec* it ia interesting to note the progress made ia "both Pro* 
vinees with respect to hydro-electric devolopaent. 

We have i no laded as pa#e 146 a chart showing the growth of 
hydraulic installation in the £rovinoe of Ontario* and **e now include as 
page 152 a similar chart of coaditionc obtaining ia tbe Province of Quebec 
for tbe sane period. It villukeVaAid tfclt the Province of Quebec la the 
year 1905 bad an installed capacity of about 200,000 horse-power* and that 
this amount has increased year by year to 1,090 « 000 horse-power at the end 
of 1932* Sins, it will be seen by straight comparison, that Cuebee has 
about 210,000 horse-power leas than Ontario, though whea compcrisoa is made 
oa the basis of populatioa, the amount per capita is practically the aiJEC 
for both Provinces. 

She result of such a ooasparicon should not, ho-.7over, lend to 
the belief that there are ao special edvant&ftoa arising out of the public 
control of the development and distribution of electrical oaurgy. V,o are 
firaly of the belief that the poor-le of the Province of Ontario at large. 



/JZ 




■■ 












,'DRO- Electric Inquiry Commission 

p y for Enclosure to jj^j 



enjoy under the prostnt system a i-sioh soro equitable tUstribution of the 
advantages arising out of the water pot?ers of the Proving than they -would 
e&Joy were these wator powers under private control* It the principle of 
power at cost on an ocjoal basis to nil bo strictly observed there is no 
chance for discrlrainutioa in fuvoxir of tho*re who take bi# blocks of power* 
It is doubtful if there is any place in the ^orld whero the average donatio 
user of oleotricity obtains service so cheaply as in the Province of Ontario. 
we fcnow of no country where service to the ateraeye ooasaiser way be obtained 
so readily as in the bovine e of Ontario. «*ith power available to the donos- 
tio eoncuruor et low cost, the cuties of the household aro greatly listened 
by the use of the cany electrical appliances now available* SJhero is an 
abundance of cheap po<ser avc-i ys&l aHtoQi^yfiag the streets and public plaoeo 
in the tovuB and cities throu&hout the Province, and there are probably few. 
if any, places that are so well served in this rocpoot as thoso «hich obtain 
their service through the Comisslon. 

Zhere is no dcubt that this great enterprise has earned and 
recoived the general approval of the groat atajority of people of Ontario, and 
there is no reason why, if efficiently aitainlatered in the future, oozif idenoe 
and pride in its operations should not contlate to increase. 

Opponents and oritice of the frcvesont have had In the past eorae 
ground for oooplaint for the Ooweaisoion has boon notably dofioiont in sorao 
respects; has shown a disregard of atatutory authority and has upset in at 
least one outstanding respect the prinoiple that power io distributed to ell 



I yD K0- Electric Inquiry Commission 



p 



Y for Enclosure to 



154 



on a basis of ©quality, the same aa that originally contemplated. Fortun- 
ately* however, theto are matters which can be corrected by the Government 
aad the Legislature if not by the Commission itaolf . !They aro things which 
have not boon suff ioiontly far-reaching; in tholr effect to harm beyond repair 
the foundation upon which the movant of publicly-controlled power distri- 
butloa ie based. She Commission has accomplished wuy groat and notable things 
and ehould with little effort be able to bring; ita methods ef admisietratioa in 
haraoir/ with principles that etrengthen the position that it now holds. 

Unction Sfr 




Generally epe.^/pWAa not sold by the Commission to private 
consumers on a cost baals. but under the terms of agreements wherein a definite 
rate is fixed, ouch in the same way and under stellar terms that a private 
power eospauy soils ita power to industries or* manufacturers, ^sre is one 
notable difference whloh has given riae to some criticism, namely the flat 
rate contrast* made with the Commission are not enforceable in the civil 
courts in the seme manner a. contracta made with private develo^ent companies. 
Under the law a. it now stands, the Commission, upon failure to live up to the 
terms of its agreement, cannot be aued by the other party unices a -fiat- is 
obtained from the Government, fe case has been brought to our attention where 
a fiat has been definitely refuaed, but it ia felt by many that the positicn 
of security in which thi. condition places the Commission has a tendency toward 



, vdR o-Electric Inquiry Commission 

' 163 

y for Enclosure to 



©aklng tho Cojaiaieaion over-bearing, and in soma oases autocratic. In its 
trsatsent of its customers, Kot long a^o, the Attorney -General of Cntario, 
fron whoa a "flat" bad to be soon .rod* was a messbor of the Com&lsslon hiiseclf, 
so that no action in which so^s transaction of his as a reember of the Coscis- 
sion wae oslled in question, could "be be^ua except with his consent* 

^hile wo can soo no special reason why contracts Bade with the 
Ccmission should not be of an enforceable nature in the srjae isanner as con- 
tracts Bade with private companies, the interest that tho Province as a whole 
has in the undertaking doubtless bus sor>e hearing on this phase of the subject. 
It is largely a taatter for consideration by the Government and the Legislature. 

Slnoe the mjnioi^lities under their contracts are roquired to 
pay the cost of the power, iv^orievaitbai, if the Commission makes a profit 
ca its flat rate contracts with private users of power fron works in whloh tho 
gsmicipalities are interested, the Buniolpnlities will rucoivo tho benefit of 
such profit through cost being reduced in proportion* In like manner if 
losses are sustained by the Coimiasion, the tsunieipalities mx»X bear such loss 
and their power costs are increased accordingly* 

In each of our systera reports ve have sst forth In the fora of 
a profit and loss staUasnt, the results of these agroetaents with private 
oonauiaers and have shown in what tranner end to what ex tout it has affected 
the power costs to the ramie ij-all ties* When tho Conclusion purchased Tlie 
Cntario Power Company and ita subsidiary, the Ontario Transmission Company, 



.jyoRO- Electric Inquiry Commission 

y FO r Enclosure to 1B ^ 



Limited, it too& over contracts that were in force at that time, and where there 
are losses on such contracts, the difference la being borne hy the isuuici pall ties 
of the Eiagara Systea. In other systceaa, contracta made l>y the CoKsrlssion hare 
in sorae cases shown losers and in other oases, profits* "but on the whole the 
conditions have been satisfactory in these systems* 

la the Central Ontario System* which, as we have noted, is a 
Province-owned property, and not under the provisions of 2he Pov/or Cosnlssloa 
Act, there are nsaay losing contracts with private users, and with municipalities 
which have flat rate contracts* These contracts, like those which were assumed 
"by the CoBsaission when it purchased £fco Ontario Power Coapany, were undertaken 
fcy the Province when it purchased the properties and rights of the prior owners, 
Since this system Is not a rortnJvfwiKxh* jaeauing of She rower notaaission 
ikct, and since the najority of municipalities and power users are on flat rate 
contracts, the raanioipalitiea as a whole do not share in any profits that are 
made, nor are they called upon to hear the losses* 

As shewn hy our Accountants* report on this system, substantial 
losses have heea incurred year hy year, resulting in a total loss from flat 
rate contracts of $169,967*19 for the three y*ars ending Octoher 31st, 1921. 
The Province as owner of the systora is, therefore, the l03or in this case, 
for it raist advance sufficient funds to seat any deficiencies that occur in 
the operation of the systoni and mst Continue to do so until the whole la 
hroufifrt into oonforoity with and operated undor the general provisions of 



anRO-LlECTRIC INCJUIKY ^UMMJasiun 

A 157 

>y for Enclosure to 



The Power emission Act, or flat rate contracts expire and are renewed on 
a higher or cost "basis* 

In the Bonnechere Eiver Storage Cyston a peculiar situation 
exists. »»• *o?m of Beufrew appears to bo the only contributor to the cost 
of the storage works, which oost was met by Provincial advances. Tho town 
disputes liability to repay the whole cost, tat has been pacing what It con- 
siders is its proportionate share of interest and slaving fund oa capital 
cost. She position of tbs Province, the Connie sion and the Town of Renfrew 
is obscure and should he clarified by adjustment, or legislation, so that 
the respective rights of ownership in the works* present and prospective, way 
is a determined* 

COPY 

On reforenco to our report on the so-called Bseex and Choroid 
Systeos and Boanechere Fiver Storage System, it will be soon that municipal 
corporations and others in the Kssex System and in the Choroid Systcrs (except 
the Sown of Choroid} are supplied with power on a flat rata basis, by the Com- 
sdssion. She rranieipal corporation of tho Town of Choroid is now part of the 
Magars System, and in the some position aa other municipal corporations 
therein. Provincial advances have been mado and puarantoso of the Cciraission's 
bonds given in respect of expend! tares on works and fraaohisos of the two 
systcas. Shore appear* to be no clear provision in The rower Commission Act 
to cover such a situation. Losses, if any, Incurred in connection with Pro- 
vincial advanoas and Kuarantoos, would doubtless have to bo borne by tho 
"rovince. Choulfi not profits belong to tho rrovinoeY 



^dro-Electric Inquiry Commission 



^ f0( >Y for Enclosure to 150 



This is a subject into which we did not make any extended in- 
quiries, excepting insofar as the subject relates to the general organisation 
coat-rolled by the Comiesion, which subject io dealt with in a later section 
of this report. We did how<*v«r, in response to a request from the Zlootrical 
Trades Union, bear representations from £r. Conn, Secretary of the Union, on 
their behalf. The principal questions dealt with at the hearing woroi 

X. 55' : © status of the Electrical Inspection Department of 
the liydro-Bleotric Power Commission. 

2* Change in the basis of the ^ydro-Hlootric Power Cosaaisoion 
so that it will represent the various interests concernod 
with the satlsf&etor^tHk^^iafcraiien of the Hydro -Sleet rlo 
Systes. i^ \^J Ji Y 

3. The causes of deaths and Residents occurring arconget the 

employees of the Kydro-£leotrio lower Comraiasion of Ontario. 

4* Ehat reflations for the safety of the Corsaiasion's 
employees oan ho devised. 

6. Suggestion for the permanent improvement of relations 
between the Comission and its employees. 

She question of electrical inspection by the Coraceission is dealt 
with in this report under the general heading of "Organisation of the Commis- 
sion.'* frith rof (jrence to Questions Eos. 2-6. these all have to do more or 
less with authority granted the Coasniesion under the terms of The Power Cora- 
nlssion Ant, to rako regulations respecting the safety of its employees. In 
referring to this Sr« Gunn saidi 



im 



**l have not the eli.pfttest done* thnt Hydro is billing and 
anxious to save life &a isuoh as possible, "but it does 805£a 
to us a sort of anorsaXy that the potter to rsako safety rela- 
xations for tho %?orkors ovists in the handa of tho I'ydro, 
who are practically the greatest enrployors of electrical 
employees in tho Province of Ontario*" 

After hearing tho evidence on this ratter, it lo our opinion 
that while, as a natter of principle, the making of regulations for employees • 
safety night "better "be in the hands of an independent hody, thero 1b no con- 
stituted "body in the Province at present ©ore competent to aoake such regula- 
tions than the Commission, and it appears that tho work is bein# done r?iih, at 
least, a fair degree of satisfaction to all the parties iatorsstad* c ? e feel 
that the testimony givon "before us does not justify us in reooiKaandiag a 
change. 



COPY 



,. , r0 -Electric Inquiry Commission 

f or Enclosure to ISO 



PARS? X - TAJAXXOti* EADIA1 RAILWAYS, 
XSBUBABQg, HURal LUSS ASD 

fiction 4Q, 
JLA * A ? 1 flJL ; 

Ihe oosplaint ha© frequently hoea mad© that the Coraaiasioa is 
unduly favoured by reason of the feet that It pays ia taxes aa ejnount which 
is insignificant as cohered with the amount required from private companies 
and others. £be fall exemption* however, fnm taxation allowed fcy Statute 
to Government undertakings is not open to the Cosarisslon, as The Power Com- 
mission Act provides thati 

"Notwithstanding anythi^!^r\^Oss^&mant Ant contained, 
land owned hy end vestj^^ib~<he Cons&ission shall be subject 
to aeceocrcent and taxation for municipal and school p.irpoaeg 
at the actual value thareof according to the average value 
of the land in the locality. * 

But the Act declares that this provision, 

H shall not apply to or include "buildings, machinery, works, 
structures, substructures, sapors truoturea, railB, ties, 
polo3 end other property, works or improvements owned, used 
or controlled hy the Comai scion, nor an easement cr the 
ri£'^t of use or occupation cr other iutorost in land not 
craned "by the Conniasion, hut all such buildings, machinery, 
works* structures, substructures, sujivar structures, rails, 
ties, poles and other property, works or iirrprov events c-vnod, 
used or controlled by the Co^niission, &sd tvery such case- 
ment or riftht, shall continue to he ejtempt from assessment 
and taxation as heretofore. M 

An exanlaation of the property and operating aeoounto of the 
Conrclssioa will disclose the fact that a comparatively small proportion of 



-' Hydro-Electric Inquiry Commission 

kpt ro* Enclosure to 



161 



the properties of the GoamlsjJioa ia liable to taxation. In the ease of 
companies controlled by the Co;&?<is&ion, the provisions of the law as to 
exemption do not apply and ia the ease of 3he Ontario Power Company and 
the 21eotrieal Development Oorap&ny, the Comnlesion, "by viftue of the original 
agreeaeata ssade, is paying gateh icere than it would, were it possible to ta£e 
advantage of the exemptions given in the Assessment Act, 



At our hearing at ^agara Falls complaint was &ade to ua by 
certain eitlsena of Siagara lalls and by representatives of the township Of 
Btamford against certain provisions of She Siower Comuieeion Aot under which 
the property of the Conrsission ia largely exempted froa taxation* By virtue 
of a special Aot of the Legislature there ia a fixed assessment for tha property 

COPY 

of £he Ontario Power OoiapaiV^s^iaie wUhin the limits of the city of Niagara 
Falls » under which the olty probably reeeivea acre taxes from the Cooraission 
on the property of ^ho Ontario Power Company than it would under the general 
provisions of the Assessraent Aot if applicable, but with tho iWnsblp of 
Stanford there id not appear to be any agreement as to assessment at tho time 
of cur hearing. This township is particularly interested in the subject be- 
cause property ot tho Coreaission of #ros.t value lies within its limits, Its 
representative* expressed their fe&r that the plant of th© Kleotrioal Develop- 
meat Company, which would have been o ortly subject of full taxation by the 
township, will now bo largely exempt because it Uas been purahased by the 
Commission* 

She partiea appearing before us at Niagara Falls prosented a 
• tatemont vhloh showed that the plant of the JTiatfara Palls Fowor Company 



fD RO-ELECTRic Inquiry Commission 

, r F 0R ENCLOSURE TO 



located In the City of Siagara Falls, %<m ?orfc, was assessed In 1922 for 
$31,898,010* or nearly one-third of the total assessment of the city, which 
aaountod to $2.04,909 ,000, 2h« ceapnny appears to fcavo paid in taxes to the 
oity in that year §001,437.16 out of a total of $3,250,084.90 in taxes 
collected by it. 

2he exemption froa taxation given under The Assessment Aot 
results in lowering the cost of po^er to the consumers, but the gain to the 
oonsuaers is equalled by the loss to the taxpayers of the municipalities in 
wfeioh the developments are located. Aist why taxpayers of Niagara Falls 
and the township of Stafford should pay higher taxes in ordor that the muni- 
cipalities of the Bi&gara System should get cheaper power is a queation that 
does not sees to have eeen fens to Act-to \£e satisfaction of the taxpayers. 

She exertions with, respect to works of the Cojsroission are 
applied in the case of the works operated by the aunioipal Oonsiissions. r il3s 
radial and street railways, operated by the Gorsxiaslon en behalf of certain 
SBinicipalitiec, are also largely ©xerapt from taxation. Taxoa payable by 
private businesaes, other than those on real estate, are not collectible frota 

the Coaaisslon or municipal Commieoioaa. Xf the Provincial Coiznission and 
the Ettmiclpal Comissions wore required to pay taxes on the ssao basis as 
private oorap&nles sad individuals, the wsount required would not appreciably 
raise the rate paid by the average oonaucor for electric sorvloe, but would 
prevent the crltieisia to which wo have just referred. 



* 



o -Electric Inquiry Commission 

iL» for Enclosure to 



Che aotqplalnt tJiat tha operations of the Cossatssion are specially 
favoured la respect to taxation as compared with those of private companies waa 
definitely hrou$st to our attention fcy officials of the Ottawa Sloe trio Getapany, 
who appeared eefero ub at one of our paella hearings, Th$ City of Ottawa 
ttzaaplifiaSf perhaps most cXearly, the possibility of dieerixninatlon arising 
ia respoot of the present Bathed of taxing the wor&s of the Coi2iala3ioa« As 
stated la our report oa the Ottawa System, tba Cocsniiaoioa is supplying poorer 
to the mnioipallty in tba eaae ssannar as it supplies othar oeatros throughout 
the Province* Ia addition, however* t)ia Ottawa "El so trio (tapany, a company 
that has been long established, ia providing a sirailar service to a great 
naasbar of consumers within the inunicipality, yet the private ccspauy oast pay 
all taxes applicable to its operation. 

COPY 

Questioned on this matter, Mr* J, A. Kills* Chairman of the 

Ottawa Hydrc-21eotrio CckjcI salon, statedi 

"Speaking for the (Ottawa) CosEaiesion, wo do not care whether 
wo pay taxes or not** 1 

In reply to our inquiry! 

"You would not offer any opposition to a change in the law 
whiah -would >u* you oa the sanso footing as others in the 
Batter of taxes';" 

llr. Ulla oasworods 

Sot only tha question of exemption froa taxation at Eiajjara of tha 
plant of tha CoraraiBaion, "but the whole question of exception of Its property 
froa taxation is a question worthy of careful consideration hy the Legislature. 



Electric Inquiry Commission 

s Enclosure to 164 



5ho question of radial railway operations "by the Corcaiaaioa h&a 

"been dealt with in soae considerable detail in three separate reporta, which 

ve have submitted on this subject* She reports referred to ere ao follows s 

Guelph Radial Railway 

Sandwich* Windsor & ^nherstburs Hallway 

and windsor h. Tocu^noh SLeetrio Railway 
Hydro-Sleatric T:adial railways 
(Toronto-! or t Credit Railway and 

Port C red! t-St. Catharines Fallway) 

3!he first two reports mentioned deal with railway syst»238, which 
are operated "by the Coisndrf^.\i^i|>w3aJf of the raunlcipalities which they serve. 
These roada were originally operated privately, but, for one reason or another, 
failed to give the service demanded by the Hunlelpalitiea* She Cosniission, 
under the authority of epeolal legislation, stepped in, and by purchase on 
behalf of the Kjonloipalitieo took over the system* 

As noted in oar separate reports, wo held hearings in reference 
to those undertakings, and while there is rsich adverse oritioisra of the Coa- 
oisaion with respect to the Guelph Eadial railway and the Sandwich, 'Windsor and 
Ajsheratburg Hallway, we have found that genorally tho Comisslon has greatly 
improved the service rendered and it is unlikely that the Municipalities 
as a whole would desire a return to previous conditions* Cur concents and 
criticism on the various natters are set forth in detail in the raporta. 



lectric Inquiry Commission 
Enclosure to 



165 



In the last-mentioned report , namely, that dealing with the 
Toronto-Port Credit and the Port Crodlt-SU Oatharines Railways* we point out 
that this is an Instance in which the Collision greatly overstepped its authority 
with the result that unauthorized expenditures ware made aggregating over a 
million dollars. 3Pb« moneys used for buying right-of-way and for other 
purposes were taken from fund3 held ay the Coramioelon in respeofc of power 
undertakin&s and it had no right to divert theau 

This Is an outstanding case ot breach of trust on the part of 

the Corsnissioa. In inquiring into this subject, we find that the Chairman of 

the Cordis* ion* personally, is almost wholly responsible for conditions as 

they exist today; the evWT^i^MiQKWrespeot * 8 80 definite that in our 

report we etato: 

"There is also the question of the personal liability of the 
Chairman for wrongful diversion of trust funds ♦ There Is 
no doubt th.-t if a true tee of a private ortato bad dealt with 
the funds of the eetato as "It Ada^ Beck de<ilt with the func! s 
of the Power Coraniceion in this a&sa, he would have been ce»- 
pelied to refund the artount taken*" 

Shore also enters into the matter the question of nuaioipal 
liability for the money expended on the rodials. The municipalities strongly 
dispute any liability on their part and will undoubtedly oppose any attempt 
to make then pay* 

One view of the natter is expressed in the last paragraph of our 
report on Hydro- Sleo trio Jladial Ballwoys. *• found that as matters stood the 



l..i<o- Electric Inquiry Commission 

166 

y T for Enclosure to V 



accounts of the Commission were short over #1,100,000. Wo understand that as 
of October 31st , 1923, the Province re-iiabursed tho Commission for Its expendi- 
tures in connection with the Sutherland Commission amounting to about 
$336*000 with accrued interest thereon to Ootober slat, 1923. If this was dose 
the Commission's accounts are still short about #780,000. Whatever sua can 
be recovered from the sale of right-of-way and so forth, should be reooverod 
and restored to the Coassission's Treasury. If it should be found that the 
amount taken oannot wholly be recovered, and if the legislature does not see 
fit to make up the loss, the impairment will have to be borne by Hydro rami- 
oipalities whose funds have been diverted. Action should bo taken as promptly 
as circumstanca* permit, for, as Hr. Clarksoa says, it is H a very serious 

COPY 

At the time of our investigation, the Sandwich, Windsor and 
Zmhersthurg Baiiway and the \ilndsor and Teeuwseh Electric Eailway, the Ouolph 
Fadial Railway and tho leterborousfr Street Bailway wore all losing noney. In 
our report on the Sandwich, Windsor and Amherstburg Railway and the Windsor 
and Tecumaeh Elootrio Railway, we stated that in our opinion they would soon 
be on a paying basis, and we understand that these roads are now paying their 
way. Shey should continue to prosper. The Guelph Radial Railway and the 
Peterborough Street Hallway are still, we believe, losing money, and, in our 
opinion, are likely to continue to show an annual loss. In our report on the 
Central Ontario System, we dealt with tho Peterborough Street Railway and 
there is little to add to what we said. It was taken over by the OoTornment 
with a number of other properties, its owners Insisting on celling all in one 



yuR0 -Electric Inquiry Commission 

» «Y FOR ENCLOSURE TO lft7 



"block. Its loss for the yoar 0ru*inr: Cbtohur riat, IS22, was £34,2IG.£0. 
?fo undei»«t5md tha,t in the following year the deficit wzie less. It seeiss 
iBoet unli&eiy thfet the r&il*iay will pay or that the ounioipality will take 
it off the Ooverereen^s hands, 

?he Toronto-Port Credit Hallway and the Port Oredit-Bt.Gatharinsa 
Batlway have been fully dealt with by us In a separate report to -which we have 
already referred* *Jhe Comission will Indeed be fortunate if it succeeds in 
realising enough from the assets in its hands in respect of these roads to pay 
the trust funds which it wrongfully diverted for them. 

Za our opinion, the Coisaissioa isade a great nietsXo in entoring 
into the radial railway fi < £OT«/^ > Ctn)*c^uite enough on its hands and en the 
hando of its staff in connection with tie generation, purchase, sale and 
distri hution of electric power to occupy its whole time and its whole energies. 
The radial roads have, generally speaking, teen a raillstono around the Cos- 
Mission^ neck* 5*he quicker that it is freed from all connection srith thes 
the hotter it will he for the Conaiasioa and for the Province. The course 
of the Ccrataisaion in respect of the Toronto-Port Credit and the Port Credit-3t. 
Catharines Hydro Fadinls lias not only discredited it hut has deeply injured 
the cause of juhlio ownership as well. 



^Electric Inquiry Commission 

•3R Enclosure to ^^g 



ULS LJ B L1 A JLSUS 
origin ga& Jggglfe of SasasMtf aaaagflaial)» 

When the Electric Power Company was taken ovur "by the Province 
cad brounjht under the supervision of tfco Coraaieaioa as the Central Ontario 
System, Ur ^ John Littlajohn, Who had teen treasurer of the company and who 
had up to that ties supervised insurance for the company, approached the Com- 
mission with the object of taking charge of its insurance matters, ISie general 
propoeale Bade by to. Littltjohn were approved of by the Comisaion, and while 
lacking any definite written instructions with respect to his duties, he has 
carried on this part of the work for the Cornmission since that tine. 




A hearing wife hadJtMis ppoa the subject of insurance, &r. 
Littlo^ohn and others appearing before us and giving evidence In reference 
thereto. We are informed by Mr. littlo^ohn that when he entered upon his 
duties lie retained his licenao as an insurance a#aut which entitled him to a 
portion of the commission paid by the insurance companies to the stents 
throu^ whom Ur. Littlejohn placed the insurance. Ifr. Llttlejohn'c share 
of these commissions was in may cases paid directly into his account and 
later transferred by him to the fj*noral fund a of the Co^aission. Hr. 
Llttle.lohn states that in his belief the Department *«s boeu of material 
benefit to the Coxsaiasion, not only by supervising its entire insuranas, but 
by obtaining in the way Just dosoribed a share of the CGratiiseion more than a 

sufficient amount to pay the cost of hia Pepartnont. 

Thia arrangement was put into operation and continued until the 
30th September, 1922, at whieh time Xir. Llttlejoha's license as en insurance 



r o-Electric Inquiry Commission 
foR Enclosure to j^ 



agent ©spiked* At that tine an application was rado to the Provincial 
Insurance Peparteent for a renewal of the license, "but the renewal was not 
granted because of a ruling of the £opartneat to th© effect that a license 
should not "bo issued to employees for the purpose of receiving a chare of the 
commission ou insurance* pieced on the property of their employers* 

Present Pol io* of Oo-igleaioa 

She Commission has adopted the policy of carrying its own in- 
surance in respeot of the following risks stating its "belief that a material 
saving can be effected by so &olngt 

(a) Worloaen's Compensation Insurance, 

(b) Central Ontario Fire Insurance, 
(g) Automobile Insurance* 

COPY 

The remainder of its insurance. In the amount of approxixsatoly 
£5,000,000 was placed by Mr, Littlejohn with outside companies. A large 
part of this represented insurance curried on buildings and their contents 
at Chippewa which, we are info mod, wore at all times insure J to 90 per cent* 
of the value* Hereunder will be found a statement of the insurance premiums 
paid by the Commission on insurance pi seed with outside companies during the 
period 1919-1S21 and of which Ur. Little John received a share for the benefit 
of the Commission* 



; o-Electric Inquiry Commission 

: C .R ENCLOSURE TO 



170 



Aganta 




1919 


1920 


1921 


Total 


For t tear A ;i>aapfield 




$42,664 


|58,030 


#190,595 


4297,539 


A. K« Wilson & Co* 




6,202 


4,761 


9,061 


20,104 


Siaguire ft Coimon 




1,573 


15,117 


32,741 


49,430 


*. & J. KflEalkia 




1,117 


2,643 


1,582 


5,342 


Bole & Corspany 




766 


17,149 


6,456 


24,303 


H. J. ViUiors 




444 


£11 


511 


1,466 


?hoan3on, rale & Power 




*■• 


616 


5,453 


3,969 


Araoar, Boll, Boswell & 


Cronyn 


- 


- 


1,542 


1,542 


lycns & Harvey 




- 


- 


240 


240 


v<ood, \ :ien & Patterson 




* 


- 


6,732 


6,732 


Be id, Shaw & EoHaught 




436 


412 


385 


1,233 


J. S. Eeredith 




- 


1,231 


30 


1,261 


?.. £. lior^oa 




MB 


791 


1,451 


2,242 


Globe Xndesnlt* Co., 




■JB 


*• 


15,562 


15,562 


Koyal Insurance Co., 




- 


- 


7,816 


7,816 


Toronto Harbor Ccsca. 




■M 


«. 


21,164 


21,164 


Sundry Other* 


C( 


^DM. 


1.409 


2,l£6 


3.G04 


-/ l^L 








7 o t a 1 


«»» 


£53,760 #L02,$20 

rcrr.u, ■ ■ — mar^arar-.-; ■■rsrcrrr g i j.-fc; 


£307,459 


$463,829 



Froa our examination of tha accounts of the Coaanieoion w« find 
that for the throe yoare ending October 31st , 1921, the Cosmiasion paid 
£390,578,65 In fire insurance premiums aad collected for firo looses the 
sua of $494,142.00, or §103,563.35 Bore than the preraiu&s paid. It would 
appear, therefore, that the results of the insurance policies placod by the 
Commission during thst poriod wore of a profitable nature. 

P.ebates Eocoived 

Daring the three yaare ending October 31st, 1921, the Com- 
■itsloa received throu.r£ Ur» littlejohn from the amenta through whoa the 
insurance was placed a share of the eomiaaions paid to the agents, such 



oElectric Inquiry Commission 

fo r Enclosure to 



171 



share assountiai? to £39,177.42 as shown la the following list! 





Percentage 






of IroaiuKsa 


Total 


Agent 


Eebated to 


Pebntee 




Conssission 




Bortimer & E&mpfiold 


3^-S-lO 


&>9, 133.60 


tfagulr* & Oonnan 


7-10 


3,493.41 


Dal© 6 Coispany 


10 


2,442.50 


A. 2* Wilson & Company 


S-13-V1E-20 


2,866,53 


F. J« ^j^jllcin 


10 


&n.37 


Arraour, Boll, goswoll & Croayn 


- 


154,20 


'fhorapson, Palo & Power 


10 


S96.89 


E. J. Yillioro 


6 


72.07 


Wood* l-iea & Jtitterson 


- 


51. 60 


Lyons & Earvoy 


8 


, ,f54.QP 


Total 




$39,177.42 



' Vi£ dQI20 i>* t&a 



The placin#Vi£ dopo&f Via insurance, especially the in- 
surance on plant in course of construction, no doubt involved a consid- 
erable aaount of work. For a large proportion, howaver, the worlc involved 
was of a trifling oharaotar, and the agent bad little more to do than pass 
on to the oonpany issuing the policy the particulars handed by &r. Little- 
John to hist. Such Insurance was of a very profitable character to the 
agent. 



It will "be noted that the percentage of premiums paid by 
the agents to Hr. Little John was not standard. TShon questioned by us on 
thie subject, Kr. hittlejohn stated that the proportion paid to him 
depended upon nany factors, and was fixed by fcia with the insurance arrant a. 



>Electric Inquiry Commission 

0R enclosure to 172 



As It was, of tor pacing the expenses of his department , &r. little John was 
apparently able to turn over to the Cos&isalon, up to October 51st, 1921, 
$20,317.98. 

If, instead of placing the insurance through Agents f Mr, Little- 
$ohn had placed it directly with the companies, the entire ceraslssion would 
have been paid to fclra and the Censalseion would have received several times 
ovor the amount that case into its hands, ftt were inforreed, however* during 
the course of our Investigation, by several insurance aj?ent«, that J!r. 
llttlejohn would have had great difficulty in placing the insurance in this 
way, the insurance companies being generally opponad to procedure of the 
character followed by hlia. 



osBstej&ak* 



lagazsaaa SjmxxjjA. JblI&ul 

As previously pointed out, the insurance placed by the Cooscis- 
slon is carried by outside companies with the exception of the following: items* 

(a) fcortanen's Corroensation Insurance. 

(b) Central Ontario Fire Insurance, 
(o) Automobile Insurance. 

£ith reference to 'tforVmon'o Compensation Insurance, there is an 
arrangement between the Workmen's Co^ensation Board and the Corrsdsslon whereby 
the Board Bakes all disbursements on behalf of the Cocmission. A sua of 
$7,500,000 is held on deposit by the Board and a weekly etateniant of disburse- 
ments Is furnished to the Cerx&ission. A cheque io then for«ardod oaoh veek 

for on szxmnt sufflci&nt to bring the deposit to the arxunt of y7 t f 00,00. In 



Electric Inquiry Commission 

, Enclosure to 173 



addition to'the tuss paid weekly by the Cosssisaioa to the Board, the Coraaission 
is assessed its yearly proportion of the Board's overhead charges, t&leh during 
the fiscal year ending October 21st, 1922, araouatod to approxiiaately $7,000*00* 
£fcie is the ascie procedure as that followed by inunioipallties and by railways. 

She fire insur^ccs in the Central Ontario Syst&m id carried di- 
rectly by the OoKmiesion by providing a reserve on the basis of 1Z%$ less than 
the tariff rate for insurance premluss on that class of risk. In this -say the 
Coreaission has created a surplus of about 43*000.00 in the five years of opera- 
tion. 

The CoBxaission also carried all its own automobile iasuriince by 
providing a reserve on ths~i>atf3wi TC} »£ off the tariff rate, ©lis creates for 
the Corsr-ission a yearly surplus of about $10, 000.00* 

According to statements prepared for ua by our iccouatjuato, the 

accounts of the Cormiasiou as at October 21st, 1921, showed a surplus of over 

$18,000.00 In the insurance accounts, made up as follows t 

Insurance Eeserve ••••••••••*•«••••••••• •»••«• •••»•••••••••« $>90, 609.96 

Less* Cutetandii-j C laics; 

Eaployces' Aooideat ••••• £166,653.96 

Automobiles ••••« C00.00 

Peterborough Kadial Hallway ... 1,700.00 
Public liability - Central 

Qntru-io System .*............. 150.00 

liiscellanecus ..••.••••••.••.•• B.0C0.00 

0174,003,96 
Provision to cov^r awarded Pensions 

as per valuation of ^'ortanen's 

Compensation Board 392,735.62 

Sundry Accounts Payable £.700.00 575.4^9. 70 

Surplus $ 10,370.10 



Electric Inquiry Commission 

e Enclosure to 174 



As pointed eut» with tho espiry of &r. Little john*8 license In 
192i f Kr« iittlejohn is apparently now pr«v«sntod frors receiving part of the 
cortmiseion frorc insurance ©gents. Sheroforo, since that date this source of 
lncoiKQ is lost to the Comiasion. Since our inquiries into this subject were 
made wo have been #iv»n to understand that so^to arrangosient has bean arrived 
at whereby the insurance of the Cosimissioa is all being placed through one 
firm of reoent origin. Our information on this subjsat is not authoritative 
cor have wo any Knowledge of the details of tfcs arraagejsont » Vat it is suggested 
that the subject be inquired into by Your Honour and tho Coraeicaioa requested 
to state fully that is being done in this respect. 

A reriew of(^4^ r £^ n x** r * ****£• *P **>$ question as to wheft«r 
any fundamental change froa the practice now followed Is desirable. In this 
eonneotion there arises the question as to the possibility of the Ccraisaion 
carrying ita own insurance on permanent works. Ur% Uttlejohn at the hoar-ins 
stated that tho policy of the Corenlssion was to carry its own insurance "as 
soon aa they got a suffloisnt fund in there so as to be able to take chances 
on a bi^ loss .... to be certain that they ar« not .soln# to wrock thssaolves? # 

Kr* Clarkoon, in giving evidence on this cubjoct* aaidt 

"In a public undertaking of this kind I would say that unless 
there was a vory anple aargin that with such a lar;-u concen- 
tration of capital, it would be a very dancrorous thing to do." 

n I would not r^-omraend it until they fcnd all the facto, and 
even then I would ba vary doubtful about It." 



i{ >Electric Inquiry Commission 



n 



FOR 



Enclosure to 



175 



It is well known that soma largo eorpo rations, railway companies 
and other* carry all or & portion of their own insurance. In respect to in- 
surance ris&s on works and structures of tho Coselssion, we believe that before 
the Corsmission adopts any method of carrying its own insnrasoot tho whole subject 
should ba very carefully investigated, not only as re<?a?&s the wip-doni of self- 
insurance, but the saetbods by Which euah a systm could bo boot administered* 

In our opinion, full consideration also should bo given to the 
question as to father a general contingent resarve covering injrarunce on 
finished work as veil as all those contingencies other than ir.our:,j»a now 
partially provided for by tho vorioue contingent funds of tho Cojssiission should 
not be established. It might also Tie worth while for the Corssiseion and the 
Qovernaent to consider wtoe"^^r{ajyrWa«»ts:Beat between then raifrht not be raade 
thereby tbo properties of the Coiseaissioa and the properties of the Government 
should all be insured by the #overnreent and Co. mis si on jointly. It the Com- 
mission should not carry its insurance Itself but should continue to plaoa it 
through private companies, it would probably be advisable for it to place it 
through sone insuraKoe expert who sdtfht be able to secure reductions in rates 
whioh would not be securod by agents unskilled in insurance matters. 



xaJA 

TWJi was 

By at-onis-'nt natlo to The Tower Connisaion Act in 1920 ♦ the (Jom- 
oiasion was authorised, subject to the approval of the Idea tenant -Governor 
in Council, to eater into a contract with the nunicipal corporation of a town- 



) Electric Inquiry Commission 

3 ' t re* Enclosure to 176 



§hlp» o ? ***• rrtinielpal corporations of two or iaora townships, and with the 
ftT)proral of the jsanieipal corporation and In pursuance of such contract to 
lay out and define areas to be k&owu as "rural powor districts", in the town- 
ship or townships for the distribution of electrical power or energy. It l&l 
further authorised to construct and operate all works necessary for trans- 
sitting, transforsins and distributing electrical power or eser^r to the 
preaisos of parsons within the rural pover district ♦ 

She amendment further provided that township councils might pasa 
by-laws for entering into such contracts and execute then without submitting 
the by-laws to the electors or complying with any of the other forms required 
in the case of by-laws passed under other sections of the Act. 



il-aa Sfcuf dirt 



She CcEiaisaaaa hmf di reeled to annually fix, adjust &xvi apportion 
the cost of all the wortts to be borne by each of the rauniolpal corporations 
entering into such contract* The total ajoount for which each of the municipal 
corporations was to be liable was to include Its proportion of a sua; sufficient 

1. ?o provide a sinking on a thirty-year basie for ) J 
the repayment of the oost of the works. X \ 

2. 2o pay the Cctsr.ission interest upon its expenditures. S 

3. To pay the coat of op«ratinfr, Piaintainia^, renewing, 
insuring of such wor^a and oth«r charges as sot forth 
In Section 23 of the Act. 

vj , 

5he power rates payable by customers in rural powar di striata 
are to be fixed by the Connlsslon and to bo sufficient to pay all the charges 

■ 1 

I f\ 






>.Electric Inquiry Commission 

,, f0 * Enclosure to 



177 



to bo borne by the corporation as Koxtlonod above. All the provisions of 
The Power Gouraission Aot a a to paymonta to bo cad© by the corporations whidi 
have entered into con tracts with the Corosissioa, are rsado applicable to con- 
tract* undar the atsending sections, and, in addition, provision 13 made that 
wber« a person receiving a supply of slactrical power or energy in a rural 
power district is in default of parent of any account duo in respect of such 
supply, the Conzalssion nsay notify the corporation of the raunici polity in 
which the precises of the person in default are situate, stating the amount 
due, and such amount shall thsroupoa bo entered upon the collector's roll of 
the camioipality and "collected in the same manor as othur taxes.* 

Prior to th<|Qa^nol2EXtaVbf 1920, The Power Cosanlssion Aot, 
Section 19a, authorized the council of a township, with tho assent of tho 
Municipal oleotors, to pass a by-low for entering into a contract with tho 
Coanission for the supply of eleotrioal power or energy for the use of tho 
municipality and tho inhabitants thereof. This Section 19o still forms part 
of tho Act, and is available to township municipalities, so as to plaoo then 
in the sane position as other municipalities, in regard to supply of olootrioal 
povor or energy to tbon. Tho amending Act enabled the Cossniesion to act as 
distributor of power directly to individual oonsuzsors in rural porrur diet riots 
and givaa it the extraordinary power of imposing aa a tax, to bo "collected In 
tho same manner as other taxes*, acoounts for power suppliod which are in 
arrears. 



Electric Inquiry Commission 

„ rOR ENCLOSURE TO 1?Q 



Attention is directed to the wording of the araondseat as to 
aiakin-7 fund payments. 2heae are not for the p&rpose of repaying advances 
of the Province for ©sating the coat of the worit, *?hich advances are raad© in 
the srjao way as others for work© for the benefit of ESinicipol corporations, 
hut to form in thirty years a • inking fund "for the j>syra©nt of tho aaount 
expended hy the Coussiesion on capital account ". She rate of interest to he 
allowed on these payments is not specified in the ascnding sections* 

in addition to worfcs for the transmission and distribution of 
po*er hy the Coioslssion to '♦rural power districts" tho Ooncsission, in wany 
inat&acas, has constructed linos for tsuniolpal corporations comprised in a 
'aystea" or "systems" in ord^ that J\®% s^ay supply rural customers of tho 



CO 



oontrJiotin^ Hnnicipalitios^-^jW^ %re thua two classes of "rural lines in 
one of which the Coisaission is tho direct distri tutor of po^er to consuaora 
and in the other the contr&otins municipal corporations distribute poorer to 
rural consuiaera. In the lattor the "rural lines" form part of the worfcs of 
"aystsss", the cost of vhioh is homo hy the Kualcipality in which they are 
situate. Attention is drr.vra to this fact in order to raake clear our ooczsents 
upon "The Eural rydro-Blootrio Distrihution Act, 1021". 

She accounts of the Conniasion to Chtoher 31st, 1922, show 
that it expended upon rural linos to that date, exclusive of thooe of the 
so-called I±fx cystom, $1,127,277.89, of tjhioh amount the expenditures upon 

rural lines of rural pewsr districts were £002,671,73 and upon others 



I , roElectric Inquiry Commission 



^i FOR ENCLOSURE TO 



179 



§324,&06*1S* Against these expenditures upon "rural lines", the Coraalssion 
charged the Province to C&tober Slat, 1922, the auta of *202, 953,07, as an 
axsount receivable under 3he Bural Eydro-Kleotrio piatribution Act In reepset 
of bonuses to primary rural Unas eoEpleted and in operation on Oatober Slat, 
1922. 

At the eeeaioa of the Legislature of 1921, rt An Act to make no re 
Sqpi&X Provialon for the Coat of Hydro -21eo trie Power in Ontario* wae passed. 
Ska abort title of the Act ia H 2ho Fural Kydro-Sloofcrio rietrlbution Aot t 
1921. " The &)t cairn) into force on the 1st day of June, 1921, and provided 
for the establishment of a fund to "bo kneira ao »»The l:ydro-£leotrlo Power 
Extension 3und rt and direct (\utJL\i£/ t£e T&ja surer of Ontario open an account 
to "be known aa tu 2ho Bydro-Blootric Power Extension Bind Account", To the 
crou.it of this fund was to be placed annually at such time as the Lieutenant- 
Governor in Council might direct, a sua equivalent to the total asount 
falling due to the Province froia the rental of water powers since the 1st 
day of Jaim&ry, 1910, but not including rentals falling duo under agreements 
entered into by the Cores! as loners of the ^ieen victoria Uiagara Jails Park 
for the develo]33cnt of power within the Park; a euro equivalent to the but- 
plus revenue frora power rentals payable to the Park Coaaaissioners after 
deducting such turns at are roquired to raeet certain charges and payments 
referred to in The Queen Vlotoria Niagara Falls Park Act, and such additional 
sutis aa eight be voted by the Legislature, 



Electric Inquiry Commission 

,, >0« ENCLOSURE TO 160 



Whore power is supplied to a rural powor district undo? tho 
provisions of Sis Power Cosasisaion Act, to «hich we have referred, thoro may 
be r>aid to the rczinleipality or Corralssion distributing tho power, upon the 
rscoCTtion^tion cf tho Oonsaission, rind the order of the IJUutenant-Govsarnor 
in Council* a suis not exaae&lng fifty po? cent, of tho capital cost of con- 
itructins and erecting tho priory transmission lines and cfibles required 
for the delivery of power. In 1922, en aaeniaont of tho Act permitted pay- 
Bents, which had 'boon authorised hy the Mt of 1921 9 to to Fvftde in respect 
of works aorsBtraoteii before or sicca 1st Juno, 1921. The Aot of 1922, as 
aaen&sd by a farther Aot in 1923, authorised parent, on the racoisnondatlon 
of tho Cosaitaion and the order of the Lieutenant-Governor in Council, to 
the corporation of a tcrcrash^ MS^saaiotauklilgr Tt>oin& a distributor of power. 
Of a sun not exceeding fifty per cent, of the coot of constructing and 
erecting in aa adjoining township or rural power district primary trans- 
Biesion lines and cables, 

!&e effect of the law as it now stands appears to he that 
fifty per cent, of tho expenditures nsade "by the Coraci salon upon rural linos 
is rsot "by advances frees the rrovinco in ordinary course end rej-aid by sink- 
lag fund, ths r«inaining fifty per cant, is net by advances fron the Province 
chargeable to the fund established by !2he Pural I'ydro-Eloctrio ^Distribution 
ict, and for which tho Province will nev«r be repaid. The result to njuaicipal« 
Ities la rural po^er districts and to urban muuioipaiitiss supplying power 
vltbia such rural power districts is that the payouts on account of sinking 



Electric Inquiry Commission 

181 

,.„ ENCLOSURE TO 



fttaA and interest in respect of cost aro reduced to tho extent of the 
amount contributed by tho Province. 

9« understand that the amount paid to the Oossaieeioa by tho 
Province to Cfctober Cist, 1923, abrogating about £426,000, on account of 
rural lino bonuses wa 3 raid out of tho Consolidated Bevenue 5Und under 
authority of Special Warrant, Saa Kydro-Kleetrie Power ^tension Fund pre- 
sumably navins *> oa established and the aoonnt mid charged to it. 

smUssJxk 

The sreat imnartauco to the Province of Sia Saral Hydro-Electric 
Distribution Act will bo rWWeJf^ek tha disposition made thereby cf tha 
rentals of water powers is considered. All rentals received or receivable by 
the Province since 1st January, 1910. fro* water powers other than those in 
ths Klassra Falls Park, and tho surplus, after payaent of certain charges, of 
all rentals received or receivable trcm £1 agora water power are directed to bo 
annually placed to the credit of The Hydro-Sloe trio Power intension Fund. 

The action of tho Logiolature in providing that tho rentals 
received by tha Province for water power shall go into this fund again em- 
phasizes the importance of the question as to what rentals tho Province should 
receive. 2ho main source of revenue at the present time is, of course, that 
derived froa the rentals of waters at rda^ara Falls, which so to the Slogan 
Palls Parte Coraaisslon to be applied for Park purposes, any surplus golns Into 
ths fund for aiding in the construction of rural lines. 



.Electric Inquiry Commission 

)r Enclosure to 



132 



Undor tfco provisions of an agreement made between !H-o Ontario 
Po«or Company and the Caeoa Victoria Niagara Jails Par*: Gorssiasion, Tho Ontario 
Power Company agreed to pay the T&rX Commission annual sater rentals ae follows $ 

(a) A fiaod eua of £50,000 par annus* 

(b) for po'.ver generated and sold between 10,000 
and 20,000 h.p., 41*00 per h.p., 

(o) lor yovfer generated and sold between £0,000 
and £0,000 h.p., 7Ej? per !.#.* 

Id) For all po*wr generated In excess of £0,000 
h.p., COff per h.p* 

9jo estimate of the cost of pcyer for tho combined Eiagsra plants 
of tbe Ccrsniition, submitted tc us by tho ConiLiselon, shews tho followings 
amounts payable in rospeot/E* jfa^eF^d*t£lg| 



ra&nt 



Horse-power 
to bo developed 



Aroount of Bate of 

tfcter Kentd Pater Itentala 
par fcorse-power 



The Ontario Power Corapany 150,000 

Electrical £©Tclcyr.ent Cosjp&ny 100,000 
Queenatoa-Chippawa , 450.000 



$102,500 
67, tOO 



$0,683 
0.67E 
0.30 



700.000 



$305,000 



:- . ?r . 



or an avoru&e for all plant ■ of abcut 43/, 



JJo agreement has yet boon made botwoon the Power Comical on and 
the Park Coomieaion relative to rentals for tho water u*o& and to be used at 
the (raeenstoa-Chipparya plant. By referonoo to the Park oralis si oner a 1 report 



Electric Inquiry Commission 

? Enclosure to 



183 



for the year 1922, pn#e 22, it would sesa that there la a difference of opinion 
us to tho basis upon which the water rental for this plant should be fixed* 
Up to the present time, the Commission has paid nothing whatever for the water 
that it has used or is now using for this Development, 

fhoro is no doubt tnat, if the Qoverniasnt were to sell the 
right to use water at Hlagara to a private concern at the bluest price that 
it could obtain, or in other words, on tho sane basis that it wells timber or 
palp lir-its, it would receive a ouch greater rental than it receives through 
the Park Cotamission from the Pydro-Electrio Powor Coasaisaion, If 700,000 
horse-power wr* developed* a rental charge of £2.00 per horse-power would 
add to the Provincial revex^s £l,4Qp»pOQ per annua, less euch anount as 

COPY 

might be allowed to the ParVCSsAiaeion* 

Cone of the witnesses who have testified before us have taken 
strong ground against the rental of the waters of Hia^rara at present prices 
and have contended that the rental of it at these prices is unjust to the 
Province at larg«. 2hey talcs the jjround that as those via live in the 
neighborhood of timber or pulp wood limits receive no greater share of the 
product or of the price received for it than thoee who live elsewhere in the 
Province, thoss who live near the falls of J31a<?ara, which are of far greater 
value thaa any tlraher or palp rood limit, should receive no special considera- 
tion oa that account, but should pay full value for what they receive and 
that t*at is received should so to the Province Just ua the rrooooda fror. 
the eale of a limit or Its produots go to the Province. 



. oR o-Electric Inquiry Commission 

r , rOR ENCLOSURE TO m 



She subject is not a new one. It was debated in the Legislature 
before the CoErclssion was established. Aaions tfcs speakers was Sir Adam Beck, 
who took strong ground in support of the contention that the waters of Siagara 
ehould bo dealt with on the asms principle ns other Provincial assets are lealt 
with. Eo caidt 

*2ho Govarnisont has the same right over tho Provinoial water 
powers to which it holds title that it has over the timber, 
aineral and CrovTn lands of the Province..** sxzd if tho grant- 
ing of timber and mineral rights at unduly low prices cannot 
be Justified, tho granting of water powor right* at unduly 
low prices is still harder to justify, •••the waters of the 
Biegara river will forever flow over Sinfjara Tails. !3ioro 
is in those water powers ..... a source of perpetual frcvizw 
oial revenue." 

If the policy then advocated by Sir Adan Beck were carriod into 
effect, there is no doubt\4^avJ«ir*vJnuSi of the Province from it, applicable 
to the extension of rural lines or for tho general purposes of the Province, 
would be vastly inoroased. EhJUl is an important subject, and we have thought 
it well to bring the outstanding facts to lour Honour's attention. ?;o expvoos 
no opinion as to tho course whioh should bo followed. That is a matter for 
consideration by the Government and the legislature. 

We have dealt only with the matter of water rentals in respect 
of the liiajnrara power plants, but if the Govorirosnt docidtfs as a Katter of 
policy to adopt a definite rental basis for water used by the Connies ten at \ 
Xiagara, it mi#bt be advisable that the arran#w!»nt be nude to include the 
fixing of n standard rate for all master powers used by the Con-mission ia tho 



Electric Inquiry Commission 



, „ ENCLOSURE TO 185 



?• 



Province. At the time wo flubsilttod our intoria report on tho Thunder Bay 
System, a study of tho economics of tho syst«as» was made, and in it a charge 
of EQj^ per horse— power for water used frors tho Sipigon Hiver was assuraed* 
Our reason for assuming this amount was to a large extent actuated by the 
unfortunate financial condition of the flirigon plant and \?o f«lt that by 
fixing only a nominal rental for tho wator, tho operating oosta would he 
proportionately reduced* V?e 3ee no reason, however, why this rental should 
aot he increased as the operating condition of the plant inprov«s until such 
tiao as a reaeoaable prioe per hor«<a-power is contributed to the revenues of 
tho Province hy the pow&r consumers in this district. 



COPY 



lectric Inquiry Commission 

Enclosure to ^q^ 



pas? ?.i - cs>akMZAn<rH r-y v\y$ SsaSIMlSS 

gwnon 4g 

Our Accountants, Itessrt* Price, Waterhouso & Co,, in a report 
to us entitled "General Accouati:i& System's deal in sonso detail with the organ- 
isation which the Commission baa created to conduct the a&ainistratloa of its 
affairs • la the MBM report* tho general scb«ae of accounting methods as 
adopted by the CosEieaion is also discussed. Cur Accountants have not touched 
upon the engineering organisation of the Corssission as such, nor have we had 
any special report proparod on this subject. Cur Consulting 3n#ineer has, 



boiievor, dealt in full detajj^ wJL$h Jthe^n?ineerin<j organisation which was 
forced to conduct and direcV^dS^ Actional operations of the Qieenflton- 



Chippowa Power Development. Shis subject «e have roforred to at some length 
in our separate report on that projeot, 

Section 6 (1) of *2he Power CorrdLasioa Act provides thati 

"She Coaraisslon may appoint a Ohief Engineer, an Accountant 
and a Secretary, and such other engineers, accountants, 
officers, servants and worknen »3 nay be deeded requisite*" 

Section 6a of the same Act provides among other thinye thati 

"tBha Comlssion, with tho approval of tho Lieutenant-Governor 
in Council may appoint an of floor to be itnown nn the Comptroller 
of the Corarlsftlon who sfrall hold office Airing the pi ensure of 
the Lieutenant-Governor in Council and shall countersign every 
eheruo issued by the Ccrr-.iEsion, but before cotmtersifminff shall 

satisfy hints elf that tbe Issue of tho cheque is authorised 

may give such directions fts he nay doom proper, and as the Commis- 
sion may approve, as to the books of account >.ept by the Commission. ••" 



-o Electric Inquiry Commission 



„, FOR ENCLOSURE TO 



187 



Aa point ad out oleo-whoro In tMs report, no officer carrying the 
title of Controller has "boon appointor!. Vat the dutlos of rach offloo # as 
generally outlined "by the Act are carried out "by the Accountant, who, however, 
does not countersign cheques t this duty having "been assigned to the Secretary, 

By a resolution adopted by the Comissloa at Its meeting of July 
3rd, 191Q» a plan ms adopted by the Cocr&sslon setting forth suV-departmente 
coaingr under the charge of officers reporting directly to the Coi&aiselon* 
These deportments wore four In nunbar and we repeat thea here so that the 
scope of adrini strati on coning under each nay "be understood! 

25ie Ofclef Engineer 

la) Ka^inoerln^ 

(b) fistinating 

(e) OneratfS (~\ D V 

(d) rarnanV' KJ 1 1 

(e) Garape and production 

(f) Calos 

(s) Purchasing end construction 

(h) Occident prevention 

(i) Purveys 

(j) Hallways 

(£) Publishing and statistics. 

The Secretary 

(a) Lo;.;aZ 

(b) El£bt-Of-Way 

(c) Preparation of Annual Heport 

(d) Correspondence of the Cormieslon 
(•) Kec rotary to the Corsniszi oau rs 

(f) Insurance 

(g) Ileal Estate 
lb) Centals 

The Accountant 

(aj Accounting In all its branches 
[D stores 

(e) yilins 

(d) I inlelpal ^cecuntins. 



Electric Inquiry Commission 

R Enclosure to ^qq 



Tbo Chief Eleotrioal Inspector 

(a) n '2h& carrying out of the rulaa and 
reflations of the Goraaission with 
rerjard to inside wiring, in such 
manner aa may bo prescribed by the 
Comiasioru" 



At a previous seating held on June £th, 1913, the Conzalsalon 
appointed o treasurer whose <n*tiea wore outlined as covering the following! 

Preparation of monthly "budget. 

Preparation of annual report, re ©mounts 
to be paid to Government on sinking fund 
account. 

Sign all checues "after the vouchers have 
"been passed by officers of the departments 
coispetent to deal with each class of pay- 
ment * '* 

Conduct general banking business of the Commission* 

Attend to payment of bond Interest. 

Act as TreasYf^/^A ^|3 Sp^ario Po^er Company, 
Limited. \^ \J I 1 

"Perform suoh other services as the Board may from 
time to time see fit to direct." 



She i-inutos of the meeting of July 3rd, 1910, also sot forth* 



that i 



"....It is the wish of the Commission that the fullest co- 
operation shall he maintained betrcea the various dopart- 
ments» in furtherance of which it Is ordorod that meetings 
he held at stated intervals, whon found neoeo&ary, at whloh 
the departnental heads are expected to be present. " 



w« underatand that, in accordance with this direction of the 
Comal a is ion, meetings are hoi? as occasion may require for the discussion of 
various natters vhloh arise from time to time. 

As will be gathered from a study of organisation nharta pre- 
pared by our Aeeountanta and included In their report above referred to, the 



r £ LEC tric Inquiry Commission 



f0R ENCLOSURE TO 



^active Midi of variouo .uWepar*-nt, eaah of uhlch. generally epe**- 
lns constitutes an independent eectlon. report directly to the respective 
j be *d. of the Pepartaent. ■— s -« 0a8 "" "*«"-»* ^ tb ° eit " lt tha * 

tM y are diatinct -"■ <*«» °^ ala 8I!eeifl0d dUU ° a *° P ° r ' 0IB * *' lU *"' 
„ „* of tho .taff of one motion hoins temporally reduced or over-taxed. 
B9 «her. of the other M.U~ •« needed to relievo tie citation. 



She Hydro-Sleotrio Po»er Comiealon of Ontario oa«u*e. tho full 
ro8P on.lUllty for an aattere of o^ini.tratlon and In doins W . !..«.. in- 
action, to the four principal officer* Jart referred to.n^ly. the Chief 
linear, tho Secretary, the Securer and the Chief Accountant. The l«.l 

,u« of the Co-i..lon -60P¥ MBMMI> SM POSPOn>iUUUeB a ' 3 
aeol t «lth in different eeotiona of thi. report and la rticuiarly in our re- 
port entitled "Ki.tory and General relatione". 

•Tmtrl-" 1 TT! ?T iy}^lon 

a , TOrt of the Popartaont controlled hy the CUef Klectrloal 

Inopector cover, tho -hole Province and 1. in «* «y different fro* other 

*Uio. of the Co^eeion in that it include, the infection of all ,attcr. 

pertaining to electrical l.tall.tlw and the manufacture of appliance*. 

Whether the .or* 1. done hy the. in the «,ploy of the Comi..l« or hy 

private cornice or individual.. Ml hrnnch of the Oo^e.ion U, hoen 

in ^ration .inc. WU. when the <W1»» — authorl.od hy an a^andaeut 



.Electric Inquiry Commission 

o f1 r0R ^CLOSURE TO 

190 



to fb* Power CoRsai scion Act to make the necessary regulations. S?he Ce?a- 
mission has now the right to sapervise all electrical work In Ontario 
whether installed "by the CoEslsslon itself, the municipal Goiasissiona or 
private companies or individuals. Though fee* aro charge! for inspections* 
tee revenue since the inception of the ftepartment until Qotober 31st, 1922, 
has been leas than the expenditures by the Commission by §250, £82.53, which 
has been charged to the Province. Several complaints have been made to us 
by manufacturers of appliances, electrical contractors and others that the 
Comalssion should not administer the work of electrical inspection. It 
is claimed that it ffivea the Commission an unfair advantage over those who 
ere operating privately an^t^sje^ipaded that, in soiao cases, discrimin- 
ation has oocurred favo*irin# t£e w>r& cone by the Comi as ion's employees 
or the so working for the municipal Commissions. 

On the whole, however, wo believe tfeat the work of this 
Department has been carried on in a businesslike and efficient manner, 
and, while the principle of the Cozmission doin# this work may be open 
to some question, we know of no bettor method by which this important 
work caa be acooaspliehed. ^hilo, as we have stated, so-riva have ccssplained, 
otbore, who are eevrpotitora, hove expressed their approval of the present 
eyetssu 



_ £ Ltam c Inquiry Commission 



no- 

t0 , ENCLOSURE TO 



19X 



aaaltaa m 



S, have pointed out «h<m glTlns the history of the Comlselon 
tkrt the Honourable *»«■ Bock. the Parable John S. talrta and to. Cecil 
B. Dalth. O.S.. were the e«*l«t«.MM originally appelated In June. 1906. 
to , w. X. MM** U.P.X'.. exceeded to. talth la WO'. *** Honourable 
(nmf si,) Adam Bee* to* held the appointment - Cbairaan of the Cohesion 
oontimou.ly elnoe 1906. fte tenare of offloe of other Co^lsslonere 1. 
... forth la cur report on -Tdetory and Oeneral UikW. ««»• *» >»• 
MW#d a. Coaaiaelonere are the Honourable I. ». laM, to. Sred B. Killer 
Ea a the honourable Colonel OOP'V*"* ** '* °" BaB9d8n * 



S>« preeent afalnUtratlon toot office la July of I set year. 

The reelsaatlon of Colonel Caraichael tad already been accepted, to. 

SBH.W n»o»ed by the present Government and Hon. J. K. Oooko. H.J.?.. 

m8 appointed to fill one of the vaonnoiea. Ho opponent of a third 

(Wiener ha. yet been ml*. ^ ?o«cr Corsica Act prorldec that one 
of the **•» of the Cowlirton wrt be, and M ~y be, libera of the 

Executive Council. S» foiling table eho*. thoee rih. bevo held the 
offloe of awDUUoMT. their M. of office and whether they »or« 
MMn of the Lesielatlv. A..-bl, or .after, of the E.enutWe Council. 



1 



Electric Inquiry Commission 



I 

, , H ENCLOSURE TO 



192 



fable Sbowin/y Period Darius Uhioh Members of 
the l?ydro-&l&atrio l'o^r Coireiissioa voro 
(a) Liessbors of tbe Legislative Assembly, and 
(bj & cabers of the Government* 



HCElO 




Jr'&sber of 


Maesbor of 


Of 


£©»ber of 


Legislative 


Stecutive 


Conaais eionev 


*T W *> (* 


Assembly 


Council* 



Sir Adam Book 



Frqa To , 
7/6/06 Data 



8ir John Eendrie 7/6/06 9/10/14 
Oeell B. Smith 7/5/06 28/2/07 



1906 
1923 

1902 



20/2/07 20/2/19 
9/10/14 1/8/21 



1906 
1893 



W* K* £eKangfrt 
Hon* I ,3. Lucas 
PredF. L'illor 
J. A. Earasden 
Koa*Gol,I>.Caraiohacl.-20/ll/l9 28/6/23 1919 
Eon. «J. S. Cook* 24/7/23 1911 



la 
1919 

1914 

1915 
1919 



£8/7/21 (^/FA'P V 
l2/l/&> 24/7/23 



1923 



1906 
1923 



is. 



1914 



1914 



1909 



1919 



1919 
1923 



1923 



Emoeratioa, 

Prior to xioveaber 1st, 1911 * no remuneration was paid to the 
Chalrsan or other meabera of the Coiaraiseion* In 1912, Sit ?owor Cojsoisglon 
Act was amended* the Legislative Assembly Aot deolarud not to be applicable 
end provision made for payment to tbe Chalnsan annually of a sua not exceed- 
ing (6,000* A further smentac .it in 1915, retroactive to November 1st* 1914, 
provided that the Chairman ehould be paid an annual salary of .§6,030 out of 
tbe Consolidated P«76^ue Fund of Ontario and that the Cl^irraaa and each of the 



■xECTRic Inquiry Commission 

? Enclosure to 193 



other mmtotv* of the GosxaiBsion Ray be paid such annual sua for their 
services as raesberB of the CotEelsslon as may be determined by the 
kisut ©riant-Governor ia Council, out of rsonays not exceeding §13,000 per 
annua to be provided as set out In Clause (o) of Section £3 of ©10 Power 
Conssieslon Act, those isoneys to "be paid by additions to the coot of power 
payable by nsunioipal corporations ♦ £he Lieutenant-Governor la Council 
determined that out of the moneys so provided, £6,000 should be paid to 
the Chairman and $4,000 to each of the other sensuers of the CoEsaicsion 
annually* 

The names of the Com! 8 1 loners who received remuneration, 
the aiaounts paid to each and the source of funds thorafor, frora the ooa- 
xBencesaent of the ComissioA^ov&ie^er .jlst, 1922, are as follows t 



EojsmeratlQn find Sour ce .of,, FuMs 

Cecal set oners Commission Ontario 

Povsr Province Together 

Cor:;pany 

Hon. Aden Bock 

(Sov.1,1911 to Oot.31,1922) &0.000.00 $31,500.00 $65,000.00 £L47,E00.00 
3, K. L&Iiau#lt 

(Kov. 1914, to Feb., 1919} 17,533.00 - - 17,333.00 

Hon. I. B. Lucas 

(Hov., 1914, to JUly, 1921] 27,000.00 3,083.34 - 30,083.34 

Eon. £. Canalchael 

(Jfov., 1919, to Cct.31,1922) 13,0CO.00 5, £33.34 - 17,563.34 

Prod r. : iller 

(Aug., 1921, to Aug.. 1922) 4.333.33 2.166.66 - 6.499.99 

Total $110,665.33 $42,333.34 i^66,C00.00 ^216,999.67 



[lectric Inquiry Commission 

Enclosure to ^g^ 



Shortly after tho Ooasaission purchased 2hs Ontario Power 
Company, the siegers of the Coraaissioa and certain of its executive staff 
sesame directors of tho Cciap&ay. As I&rectors of tho Corspany they voted 
themselves additional salaries at two Directors* most lags held In Juno, 
1918, and June, 1920 • She following are the ideates appearing in oo.iaee- 
tlon therewith i 

flireo tors' KeetlBE hold ftme.g6tfr..JMa 

Eoved hy £r* Lucas, seconded "by Colonel Eolfought that the 
salary of the President ho Increased hy tho sura of Six 
Thousand dollars per anzucs, such increase to data frora tho 
let day of August, 1917, tho date on which the control of 
the Ontario Power Conpany of Jttagara Falls passed into tho 
hands of the hydro-Sloe trie Power Ooasaission of Ontario* 



c 



IrJ^qA) A, Beck, 

President. 




Directors' g eetlng Eel* JUat *9ttw 19%), 

Upon nsotion duly taado and seconded, the salary to be paid 
to the let and 2nd Yioo-?resid«.nts was fixed at £2,000 
per anna a each, the sssao to tiiko effect from tho 14 th day 
of January, 1920, beinr? the date upon whioh the annual 
general mooting v;as held, 

(Signed) A. Beck, 

President. 

She offices TQtQTTQd. to above, in respect of which rorameration 

was given, wore hold as follows i 

First Vice-President! 

Eon, I. B, Lucas (January 1920 to Aurmst 1st, 1921) 
Bern* D. Carmichacl (I^ron August 1st, 1981 -) 

Second Tlce President i 

Ton. D, Carrsiehael (To >u«ust 1st, 1921) 
Fred E, filler (Pro:a August 1st, 1921) 



Electric Inquiry Commission 

^ Enclosure to 



195 



As at Cfctoher 31a t, 1921, tho following wore officers of Th« 
Ontario Power Oorapaay &ad the aggregate reicaneratioa of each, for the fiscal 
year ending that dato, was paid "by tho Ccissiseioa as follows i 



Officer* 



Ontario 

Couwissioa power Province 

CoKpany 



Sir Aden Beck 

President 
Eon. &• Canalchael 

First Vice-President 
Pred P.. filler (deceased) 

Second Vice-President 
W. W, Pops 

Director and Secretary 
?. A. Gahy, 

Director and Chief Engino^n 
J. W. Gilssour 

Director and tfreasurer 
tf. G, Her don 

Director and Accountant 



£6,000.00 #6,000 ,00 
4,000,00 2,0CO.OG 



1,000.00 

5,400*00 

15,000.00 



©0.00 
2,400.00 
2,400.00 



7,400.00 1.0C0.00 



'.together 



$6,000.00 |18,000.00 
6,000.00 
l,600.00la) 
7,600.00 
17,400.00 
6,400.00 
0,400.00(5) 



(a) - Three Months (h) - Two Years. 



tfe are of orinion that the GosraiBeioa and its staff do not receive 
reEoneration in eaceus of that d«standed hy their duties. As a matter of fact, 
we eelieve that if the Chairctan of tho GoKtnission were the president of a private 
corporation of similar sise, he would receive tfraator salary than he now does. 
The ssaie remark would also ay ply to tho other two Corsiiiesionsrs and to tho 
principal executive heads. The salaries r>aid to the general staff are, perhaps, 
a little higher than those raid elee^l.oro, but en the whole are quite in 
keeping with the nature of the duties required of them. 



^.Electric Inquiry Commission 

roR Enclosure to ^gg 



la considering the matter of remuneration, however, wo have 
found it necessary to cost-sent adversely ia our report on The Ontario Power 
Company oa the manner ia which the members of the Commission increased tfceir 
own salaries, and the salaries of the principal executives of the Commission, 
by virtue of the position held as Directors* We have citod the ilinutea of 
the Directors* meetings whereat these increases were decided upon and a reyi*v 
of the whole circumstances eonfirsaa our belief that the action of th^ Ccasaia- 
sioa ia t^is respect was improper and ia clear violation of the spirit* if not 
the letter* of 5ho Power Commission Act. Che services rendered by members of 
the Commission as officers of The Ontario Tower Company are largely nominal. 
Personally they have no interest ia the stoafc of th© company, and they operate 
the company and its properties splel^aa members of the Kydro-l3.ec trie Power 
Commission of Ontario* She wrliJ^f 4sana£\. j meat is no greater than if the pro- 
perty of the ocopaay had been bought out and out and the company had gone out 
of existence* 5hat the work doae by the Commission ia respect of the company 
is covered by the salaries and rereunoration fixed by the Legislature, there is 
not the slightest doubt* It was, wo believe, navor contemplated by the 
Legislature that sesa'bors of the Commission should as Directors of a skeleton 
company have a right to increase ae thoy pleased the salaries which the Legis- 
lature Lad fixed* 

As bofore pointed out, we are of opinion that the remuneration 
recoived by the Commission and its principal executives is not too high, but 
when increases wsro thcu^t to be proper, the rnttor should Lave been brought 
before tLe Government and, if approved. It should thsa have submitted a pro- 
posal to the Legislature* 



:>Electric Inquiry Commission 

f0R Enclosure to *»' 



An instance la v&Ieh the action of the Commission in reference 

to salaries appears to bo ffuestlonable Is that referred to la tboir Kinutos 

under Juno 29th, 1922, wherein It states* 

"It w*s dooid^d that W. Bf. Pope shall bo entitled to r&*ni?n 
as part of big remuneration, in additional (sic) to his salary 
allowance, all lawful Solicitor costs which arc tsxahlo by the 
Corssisolon in g»y action or proceeding conducted by hira aa 
Solicitor for the Comission, and this cfcall apply to all work 
since January 1st, X922«* 

It l*,?e understand, not unusual for the solicitor of railway 
and other ooispaniea to be fonaally permitted to reooivo for his own use ooets 
taxed against an opposing litigant, as otherwise costs would not be taxable. 
!>o objection could be raised to this procedure boia& adopted by the Oor<piiB8ion 
if it were approved by the Ocveraaent and if the amounts so received wore ts&en 
into consideration in flxl^t()oJb^i&&l£ salary to be approved by the Lieutenant- 
Governor in Council. 

Under date of Ostober 12th, 1922, the following Minute appears i 

"2he Oowalssion directed that the Secretary nnA. Solicitor, 
W* W. Pope, be paid the sura of £3,000., in addition to his 
salary, for er.tra services for nineteen aonths, fron 
December 1st, 1920, in connection with the purchase of tha 
intorosta of the Toronto Power Company, known as 'She 
Clean Up Deol , . w 

Increases or remneration such as this, ap$w? to us to be 
clearly In violation of the Aot. £ne Power CoRnicaion Act provides that 
"the salaries or other reamat»ration of the Chief Kagineer, Accountant and 
Secretary •••••• shall be flxod by the Corcriission, subjeot to the ratification 

of Co Llou tenant-Co vernor In Council." As frequently corar.entod upon by 
Mr. Clarjcson and mentioned in our prior reports, the ratification of the 



^.Electric Inquiry Commission 

r0R Enclosure to ^ q 



Lieutenant-Governor in Council of the as.-sount fiaed as salaries of these 
officer* haa not been obtained* 

vShile in persons! touch with the Commission we were Impressed 
with the diligence, resourcefulness and loyalty of the staff to the Corrsnis- 
sion, and wo have no doubt that Kany of thcca are giving man mors tine to the 
work of the Casxaissicn than might be reasonably dsaaaded of then* On the 
other hand, we find that the members of the staff enjoy many privileges &n& 
advantage which, under other circuit® taxless, they Right not possess. Con- 
siderable attention is paid to their social welfare, facilities for recreation 
are provided, a pension scheme has been inaugurated and many other things have 
besn done for their oontentaent and well-being. 



iWtWdto air 



It the salaries pard \o asy members of tho staff are inadequate 
they should be increased but If increases be mads let thera be made in a proper 
nannor and in accordance with tl e spirit and lettor of the law, 

We understood from the Coraraission and the heads of its Depart- 
Bents that the members of its staff were "full time" men but we have since 
been given to understand that certain of the staff with or without the official 
approval of the Commission earry on, at times, private work for which remunera- 
tion is received over and above that paid to .them by tho Commission, This 
wortc is apparently done in the Commission's time, no deduction as far as we 
can learn having been Trade en aooount of it* Practices of this kind should 
not be allowed, for the work of the Commission requires their whole tiros and 
enerfjioa. It is on this basis that they are employed and receive their re- 
muneration* 



oElectric Inquiry Commission 

f0R Enclosure to 309 



ff-a Provincial Oovftrnmmtl 

Ifiich closer co-operation should be tfovieed and maintained be- 
tween the Provincial Government and the Commission through specif lo channels 
ta regard to all matters of policy, expenditure, new financing, legislation 
and so forth* 

Our Inquiries have impressed upon us the fact that there has 
been a great laolc of co-operation between the Government and the Cossaission* 
We have already in this, and in other reports submitted, showed the attitude 
which the Commission has aasmisedrla ItJsVpMYftl dealings with the Government. 
At this plaos, wo douiro to point out that the Government has not had the 
knowledge it should have had of what the Commission has been doing or trying 
to do, and it has had no means by which it could intelligently inform itself 
of the detailed operations of the Commission. v?e believe it to be of prime 
importance that tho Government of the day so feept oonotantly and fully in 
touch with matters relating to the operations of the Commission* In our 
report on "History and General Eolations", we have dsalt in some detail with 
the suK?restion made by &r* Clarkson of the appointment of an officor, whose 
duty it would be to keep the Government in close touch with the Commission's 
operations* farther reference has been rvulo to this mat tor in another section 
of this report, and to the cements on this subject no reapectfully refer Your 
Honour. 



,!>Electric Inquiry Commission 

F0R Enclosure to ^ 



f . i* Aud llgr 

She Powar Comission Act contains tho following provisions for 

the appointment and remuneration of the Auditor of the Comlaeion^ accounts t 

*?hs accounts of the Cosalsoion shall, upon the direction of the 
Lieatonaat-O-ovornor la Council, bo from tirco to tiro, and at 
least once ev«ry year, audi tod either by tho Auditor for Ontario, 
or by other auditor or auditors nassod in tho fiirectloa of tho 
Lieutenant-Governor in Councils 

*The salary of tho Comptroller and tho expenses of euoh audits 
shrill to fixed bj the CoKiaisaion, with tho approval of the 
lleutenant-Gcvoraor ia Council and shall ho payable "by tho 
CorsrAsslon as part of tho coats of administration of tho Cora- 
mission** 

It will ho noted froir. tho above that* while tho Editor is appoin- 
ted by tho Lieutenant-Governor In Council, tho Auditor f a recraneratlon is fixed 

ropV 

by the Coraaissicn subject te~thw~/.pJ/rov3iL of tho Lieutenant-Governor ia Council. 

Uador the date of ^ovonibor 22nd, 1922, the Coisraieaion increased the remuneration 

paid the Auditor as stated in the following! 

H A ooLisanication having boen received fron l^asra, E. P., C« 
Claricson & ^ona asking for an inorease in audit fees for 
woiv: dons, was dealt with by tho Board, and aft«r caroful 
consideration it was deoidad that for tho yoar 1920, tho 
fee should bo increased fror:; $15*000 to $20, 000 t and that 
tho fee for 1921 and 1922 bo plaood at £26,000.00. * 

She appointment of the Auditor is in the hands of the Government, 
but his remuneration is fixsd by the Consaission, subject to confirmation by 
Order-ln-Couneil* fcr. Clarxson*s high personal and professional standing ia 
uncles tloned and the members of the Commission hoU Lira in hl#h regard, but 
we believe it to be wrong to place the fixing of his remuneration (subject to 



,£lectric Inquiry Commission 

3R Enclosure to 2qj 



the approval mentioned) la the hands of the body whose accounts ho is re- 
quired to audit. tiTo believe that "both the appointment and rersaneratlon of 
the Auditor of the Corasiasion's accounts should "bo left entirely in the hands 
of the Government. 

Angora of- the ..(tay.priaaoiA 

As pointed out in our report on the Suoenston-Chippawa Power 
Pevclop&ontt the Commission fron: time to time employed consulting engineers 
to advise with it on the engineering details of the design. To obtain this 
advice they choee men of high standing and are to be conxsended for so doing. 

It was not until the spring of 1920 t soae three years after con- 
struction work had "been oo/^-s^d|-y^t/'the Consaission decided to call in a 
consulting engineer to advise on the matter of costs. ttio report of this 
consulting engineer did not suit the Comisslon and was discredited by it* and 
the Government made no use of It. The Coisnission then called in the joint 
services of a consulting engineer and a contractor. Their report showed that 
the work would cost almost t*ioe as rach as the official estimates in use by 
the Cocni salon up to the 9D& of 1919. 

In our report we refer in a general way to the likelihood that had 
the Cormlsslon or the Crovorar.snt called in consultant a at an earlier date, the 
Comisslon and the Government would have had Information that the work would have 
cost much nora than the estimates provided. We believe that. In the future, on 
developments of ffreat maKaituds, the Government should call in a consultant or s/ 
consultants specially qualified to advice on the subject under oonai deration. 



oR o-Electric Inquiry Commission 

( FO r Enclosure to 202 



not after the work has "been partially completed, "but before it has been 
cotsaenoed. It oannot afford to rely solely upon the estimates of men who 
are both advocates and engineers and no engineer should be askod to put 
himself In suoh a position* 2ho Govarnmont should bo advised in connection 
with all important engineering matters involving now projects, all ex- 
penditures of lar#c magnitude and special construction procedure, The 
Government, in rendering its decision with such a report before it, would be 
Justified in the belief that it had taken reasonable precautions to safeguard 
the interests of the Province. 

Eydro-l^lootrlo Power Commission of Ontario 

Suggestions h^rra b^i^t^ToTth and recommendations made that 
the number of Beabers of tfcs Commission night with advantage be increased, 
we cannot do better than repeat what we have said re this subject in our 
report entitled "Ki story sn^ General Eolations*. 

••The ooncensus cf opinion of those who have testified before 
us has been that efficiency would not be inoreased by adding to the number 
of the members of the Commission, but that the work could be more effectively 
performed by the present than by a larger number. When tho Commission was 
first organized the work required freer: the combers of the Commission was 
comparatively small as compared with the work required from them to&sy. At 
present there Is enough work to k ep three men busy all tho time, and in our 
opinion the Government and Legislature might well consider whether or not 
hereafter the Conrsiosion should bo composed of highly qualified men giving 
thoir whole tine to tho work; or. in other words, "full-time" men. Eo 
secure the best men, adequate salaries will have to be paid." 

The Power Coamission ^ct at the present time provides that one 
aember of the Conaission must be, and two members of tho Commission m«y be. 



t-Electric Inquiry Commission 

LtfOR ENCLOSURE TO £03 



Bombers of the Covenant of tho day. If this provision bo continued It 
«ould practically aoan that one-third of the Cocsaission would go out with the 
Govem?rient and two-thirds of the Coszaiaaion rsight &o out with the Government. 
A provision of this kind of oourse limits the choice cf tho Government. It 
night bo possible for a G&rQTsn&nt to have within it t^o men fully qualified 
to fill poo itloaa on tho Cosrclssioni but, without di spa raiment to any Sovorn- 
ment it say be said that in tbo pact the rossession of qualifications to canape 
a groat public undertaking has not bcoa a leading factor in determining the 
choice of ROEsbera of tho Legislature, from \&ora mc&bora of tho Government are 
taken. Gno objection to jsoabers of the Government beins members of tho Coie- 
alssion which has boon pressed upon us, has boon that the Government of the 
day is, in effect, the ese^&^V^ifaittle of the party to which its members 
bolon&. A ninn who is a Bsonber of the party executive in one building oan 
hardly be expected to bsoorao non-partisan when he takes hie seat on a Oonsais- 
sion in another building, She so are questions, at any rate, which raay well 
receive consideration* 

As will have been noted, the Chairman of the Cossaission re- 
oeives a part of his salary fron the Province* *iUs provision in She 
Fewer Coniaiesion Act in the early days of the Bsovemeut may hnve been a 
desirable one, but under conditions as they exist at present we see no 
reason «hy the Province should be called upon to bear this eapenoa, and, 
la oar opinion, the annual amount now paid by the irovinoe should become 
• charge on the operations of the Coramission itself. 



, r c-Eiectric Inquiry commission 

204 

for Enclosure to 



Another natter bearing upon the appointment a to tha Cosssisslon 
Ib that of tke succession to the chairEiansMp. It oca bo said* we thin*, 
without the slightest reflection upon any of those who have boon laembars of 
the Oomlstio&f that for years past there has been no one upon it who, in 
the event of the resignation or death of Sir Adam Book, would have been qualified 
by training and experience to take the chaira&nabip. 

In our report on "History and General Relations*, we state that 
It has "boon Bade clear to us that the ewniclpalities desiro a closer contest 
witii the CoaBoission, and we sot forth the suggestions that have been made. £o 
our cedents in this report we now refer you. In our opinion, howover, 
whatever your Government maj/dV/ui^ E)c\/i£uoh, and perhaps all, that can 
be acoor.plished in the direction of closer contact my be attained if the 
Corraission will do all In its power to faoilitate the representatives of 
the male ipali ties getting into close touch with its members. In our 
opinion, sorae, or all, of the raombers of the Comnlssion should periodically \^ 
visit the different places served by the Comiseion, and take an native part 
in hearing the oonplaints raised fro?a time to time. If such grievances 
cannot be roaoved, thoy should explain in full the reasons why they cannot 
be. •• have, in our report, submitted for consideration by your Govorntcant 
a suggestion oa«ie to ue that an Advisory Board composed of representatives 
of the Hydro unnicipalitles be established. 



-Electric Inquiry Commission 

R Enclosure to 



206 



She inturnal organisation of the Consnission is a rsattar to 
which wq have given "but little consideration. Uliils, no doubt, sorae changes 
are desirable, wo are not prepared to subait any reco -Emendations, exoopt as 
to the desirability, to which we have already referred, of creating a con- 
struction department should the Corsraission again undertake work of largo mag- 
nitude. Should such a work "be undertaken by the Consaisaion, a manager of 
construction should be appointed. He would have a separate organ! sat ton under 
his control? acrse of the members night well be drawn from the present organ- 
isation of the Comiseion, bat the chief executives would be ohosen from men 
of higfc standing and wide experience in construction work, (The ja&nager of 
oons true t ion would naturally report directly to the Comi salon on all matters 
pertaining to his duties. V^ V^ 1 I 

BflBllflB 40 

KEV1SI0H ASD 0OB2QLJCLUTIO2 Of £1 J A!OT.23 U3D221 

Surlng the course of our Investigation of undertakings of the 
CoBEBisslon it became apparent that, in the interpretation of various sections 
of the statutes relating to its works and undertakings, there lav© boon 
dif ferenoes of opinion. Confliots and confusion appear to have arisen as 
to the rights and liabilities of the several parties Interested in the acquis- 
ition, construction, operation and administration of the undertakings of the 
Commission. We are advised that in a lar.ro ; ensure this has been occasioned 
by anendoents to certain provisions of the statutes, witlvout due regard to tho 



:o-Electric Inquiry Commission 

for Enclosure to £q$ 






effect of these changes upon other provisions or to the fact that inoensia- 
tenoleia in those statutes have thereby been orcated. V® have been further 
advised that the radical ehen&os in the scope and policy of Ey&ro-Electrio 
Fo^er legislation, of footed by the enactment of 5he Ontario Uia&ara Eevelop- 
sent Acts of 1016 fend 1917, end by amendments to The Po^er Commission Act in 
1918, kave necessitated further amendments (not made) to the statutes relating 
to the pep ere and duties of the Comissioa in respect of power undertakings 
within its Jurisdiction and control, in order that tlose pernors and duties way 
be clearly and definitely determined* 

We are also advised that there is an apparent necessity for a 
complete revision, and proVslJly/Wo^JiaoJloa, of the Power Corsslsaion Act, 
the fiiaeara Development Acts and to the statutes affecting the powers and 
datios of the Commission in respect of works and undertakings acquired, con- 
structed and operated by the Commission for the generation, transmission and 
distribution of electrical power or energy to rami clpali ties and others* Suoh 
revision and consolidation would, in effect, he a Charter under whioh the 
Cozsnission would administer power worfcs and undertakings conrdtted to its 
charge in a clearly defined manner, for the benefit of those interested there- 
in and entitled thereto* 

Pending such revision and consolidation, wMoh would require 
most careful preparation and consideration, amendments to the statutes to 
r<r-ave doubts and prevent oonflict in rerrnrd to the powers and duties of the 
Commission and to define definitely the respective rights and liabilities of 



o-Electric Inquiry Commission 

or Enclosure to 207 



the Prcviaae, the Commission and the municipal corporations which have 
entered, or may ©nt«r, into aisroeraents with the Commission for a supply of 
electrical powsr or energy, may be desirable. 

In the list of reports submitted to Your Fonour by us, ttfiioh. 
list is given at the beginning of this report, will be found one entitled, 
"Legislation Affecting Power Undertakings of the Ey&ro-Electric Power Com- 
mission of Ontario*'. Tola report is not one of our reports but was prepared 
for ue by our Legal Advisers and we have submitted it to your Government 
with covering lottar dated January 23rd, 1934, as it appeared to us that it 
might bo of value to your Government* 



COPY 



E2E-0P3 g ffigBigigggj ASP PUBLIC ICT 

As pointed out in our report on "History and General "relatione" 
the Commission has always maintained a close relationship with the Associa- 
tion of municipalities that was formed in the early days* and which Associa- 
tion now bears the name of 2;e Ontario IMnioipal Electric Association* The 
Comnlsaion has frequently availed itself of the help of the Association or 
its officials in promoting the objects of the Commission. It has mtfe grants 
of money to the Association* although the Auditor, l-'r. 0. 2. Clerks on, has 
frequently questioned its authority to do so. She Secretary of the Associa- 
tion has been on tha Commissions payroll and has appeared on public platform 
on its behalf* 



?OtLECTR!C inquiry commission 

208 

fob Enclosure to 



So on© 'will question the rifcfct of the Commissi 021 to advertise 
the advantages of Hydro-Electric Power and within reasonable limits to solicit 
business and endeavour in other ways to promote progress, 5hat it should 
carry on a leffitlEiato and ^l-systematized scheme of business promotion is 
just and proper* but as pointed out by ua in our report on the St* Lawrence 
System, the Coumission enters upon highly debatable ground -when it enters a 
municipality to ta&e part in an election being held to decide from what source 
the municipality will seouro its power, Shis was done in the ease of Cornwall, 
In this case the Commission took an active part in a local campaign -without 
being requested by the nanioipality to do so* and the coats of the campaigning 
were chorged against the Province. 5?he Commission should bear in mind the 
fact that it is a publio utfl?^^kiEer\^ by the whole Province and that it 
has a duty to non-Hydro S2anioi pal i ties as well as to those with which it 
has contracts* 

In this and other reports we have pointed out that, unfortun- 
ately* the Chairman from tine to time makes statements which raisiufora and 
tend to mislead the public* 

Statements have boon spread abroad to the effect that isinicipal 

corporations will acquire complete ownership of the undertaking of the Coumio- 

sion in thirty years and in the meantime are the real owners subject only to 

the payment of certain indebtedness to the Province* An previously stated la 

this report* as recently as December 12th, 1923, a newspaper report quotes Sir 

Adam Bock as saying* 

"Under our present system we have provided for the rutire^ont 
J tie debt on oapital investment at the end of thirty years.** 



li 



Ilectric Inquiry Commission 

, enclosure to ^^ 



$ have shown previously in this report und«r the subjeot of 
"Sinking Funis" how mis loading this statement is* Having regard to the 
fact th&t about 70,£ of the total capit&l investment of the Ccxanisaion in 
power undertaking, or over £112,000,000 is in the Slagara development plants 
and certain subsidiary transmission linos alone, and that of this Investment 
lass than 4$ is being, or is to be, &ceor;iin£ to figures submitted to as by 
tho Cormls3ion f provided for by a sinking fund on a thirty-year basis, it is 
olear that tha statement Just quoted h&e no foundation in fact* 

In recent eanonncaments, quoting official fipur^s *?iven by tho 
Chairman of the Corcnlsaion* it was stated that the operation of tho cneon^tcn- 
Chippawa Power development plant showed a surplus for tho first yearns operation 
of (382, 601*24. It was sta\c^ v^AJphs joial revenu© from tha sale of power 
for the first year's operation was £4«£47, 320*32 and "tho total current ex- 
penditure" as $4,164,719*06, from which figures tha so-called surplus is 
derived* It was intimated that tho •♦surplus'* would be made applicable to 
depreciation or renewal or ccntiagrency account* As a matter of fact these 
items ttuet be provided for, Rttd, if they ar« provided for on an adequate basis, 
a larger sua will be required than is apparently available, iTurthor, no pro- 
vision has been made by tho Cct^ission in respect of sinking fund, the collec- 
tion of whieh it has deferred. It is, of course, knom thut the Statutes 
provido that the developments of the Cordis sion scut be operated on a cost 
basis, mi therefore there can be no '♦surplus" or '♦profit"* Kotwithstarding 
all of these thirds, a '♦surplus" of $802, 601*24 is announced* when submitting 



[tdro-Electric Inquiry Commission 

►y for Enclosure to 



210 



the 6stirs.ua for the paeans toa-Chippav& Development to the Oevaraaeat, the 
Chairman aaaouncad that $00,000 horss-poesr could be produced at an annual 
cost of (6.00 par horse-power, anion mm woald include all interest, a ink lag 
fund, renewal charges and so forth. Instead of the cost of power from tha 
Qaeanstoa^hippawa -|Mrolopaaat aalaf fiaod on a coat basis, a temporary and 
arbitrary rata of £20.00 psr horse-power hsa be ,n fixed by tho Comlesioa, 
which deea not sees low area aftar Baking due allowance for the increase in 
construction caste that occurred while the development was bain# built and 
since tho original astiaate was tmde. The Cossnission, when deciding on tha 
rata to be charged, had Just as much rigat to *j&& tho prico £15.00 or £26.00 
or £30.00 por herse-po«er as it hod tp^ ■§*» it €20.00 per horse-power. If it 
had selected a price nor faoi^sV^Wrlof iX.OO, instead cf £30.00, the surplus 
would have been such larger. Surely statesaata such as these are misleading. 

la our report ©n "Sxaaiaatioa of Auditor's Reports, for period 

1916-1921, inclusive," we called attention to a statement made by the Chairman 

before the Cowsittee on 7/ator Power of the House of representatives, at 

taaaiagtoa. In describing tha operations to the Coonlssloa, ha saidj 

"I **7 »&7» our accounts are subject to audit by an inde- 
pandeat fins of auditors, tho firn of Clarltaoa and Co»paay f 
of tha City of Toronto, who stand wary U.h in tha as t last ion 
of the financial institutions of tha city end tha country* 
They audit our accounts - in fact, they pro-audit. There 
ia a running audit a so that everything is checked up fully 
and thoroughly giving an aoifur&nca that our affairs ara 
ear:; ini stored ia a props* ray rot cniy to tho Corri as loners 
themselves, bet also to tho Treasurer of tha Province aad 
tha various saaialpaliaias ( who receive tha annual statement." 



ilectric Inquiry Commission 

t enclosure to 



£11 



£he Chairman made a similar statement when referring to certain 
«xp«uai tores concerning which ha was giving evidence before as. 

Quest icn«4 by 03 on this subject, X'r. Clarkson saidj 

«¥c did not pre-atidit ••«• ve audited &fter the event »••« 
v/a wore not pre-au-3 it or a, neither have *-o any poagr or 
control to say to the CocrrisQion, you shall or you shall 
not do this so t»3 to proven t the parent*" 

£r« Clcrkfon further said that the first report on the Corsais- 
jicn's accounts which he prepared, vtxat 

«*»*••• nothing btit a series of criticises of the Cossaiosion 
for overstepping authority in cna direction or another," 

COPY 



lectric Inquiry Commission 

Enclosure to 



213 



?A£? |H ~ SCTjaCi g? PF POflfSR 



general 

tfor detailed information In reference to the principal 
characteristics of the generating plants operated by the Cosmiaaion, we would 
refer you to our Consulting 2c gineer's report entitled "Principal Characteristics 
of H*£.P.C* Plants'*, and also to the virions reports prepared by hia on the 
engineering economics ©f each of the systems* 

She generating plants in operation by the Cotaaission at October 
Slat, 1921, included eighties* iaAE, aid their locations will he found on 
the toap forming the frontispiece of Voluno I of this report* as pointed out 
in this and other of our reports, the Coaaisslon does not generate all the 
power «hich it sella, hut purchases a eert&in amount froa private ooapanios* 
The plants to which references are cade her a in are only those which are 
operated by the Coc&isaion* Those plants are desiccated as followsi Jjiplaaing, 
tfiplgcn. South Falls, Ki$i ?*lla, Carleton Piece, Penelon Palle, Auburn, Hoaley 
Palls, Casrpbellford, P.anney Fells, Franfcford, Trenton, Ontario Power Company, 
"Srindale, Queenttcn-Chippa , »a f T-^^in ia, Wasdell't and Big Chute* Since October 
Slat, 1921, the Ccmiaaion h&a acquired undar the tores of the "Clean-Up Deal", 
the Electrical Serelopnent Ccnpjiry at Tllatfira Falls* 



ectric Inquiry Commission 
Enclosure to 



213 



These plants may bo grouped into systems In the follo^ting 
order j 

, „ i , i ■ - — ■■ » — 1 1 .... ■ i . - . n .. "■ ■ "" ■ ■ iii i ■ ■ . .„-■,.,,■„■ 

Systems Plants 

Uipissing (Central Ontario Bystctt) »••»•«*•»*•••*• Eiplaaing 

Thundor Bay »•»••••••»•«••••** •••»••••••«.«••••• Hipigon 

Itesicofta .♦....•......»*..,.,♦................»......... South Falls 

ladeau ••••••••• •*««•««••• ••»••« •»»>*»• *•»•#**•• High 2alls 

Carlo ten Plaoo 

Central Ontario ••»•*•«*•*••••»•»•«**•»•*%•*•••••»•»»•• lenolon Fall* 
(Eipissing Section) Auburn 

(Sr^nt Soot ion) Koaloy ?alls 

S-x /-\ T^ \/ Campbellford 

rnpY iannsy ^llc 

V^ V> 1 1 jfranJtf ord 

Srenton 

Eiagara •••••• ••••••••••«#••*•••♦•••••••»•••••»•••••••• Ontario Power Gocsp&ny 

£rindolo 

Que ens to n-Ch ippawa 

Electrical Jovolc^ont 
Oonpany 

Northern •««•*«•••••«••• •••«••• ••»•»• •••••• I&£cnia 

(iJugenia, Vatdcll's and iiovorn) Wasdsll's 

Big Chats 



As Appendix "D* wo inoludo horewith nine double pneos of tables, 
in whloh oertain information la elron, in order of the grouping of tbs 
gensratinc plants into aystona. ?or eaoh of tho eighteen plants, 44 ites*s of 
inforaation are givon. "ho first ltena, being 1 to 12, inoluairo, rof*r to tho 
aydraulio character 1 at io a | tho noxt six items, being 13 to 13, iuoluaire. 



^Electric Inquiry Commission 

KR ENCLOSURE TO gj^ 



h&ye reference to the &rxsr characteristics end to the equlptaent of the 
g-oncratir^ plantcj tha next succeeding sixteen items, being 19 to 54, inclusive, 
refer to historical data and capital costs, while the last group of items* 
ten In number and marfeea itens 34 to 44, inclusive, refer to operating costs 
and unit costs for the year ending October 31at f 1921, the four fin&l itcraa 
feeing deduced arithmetically froa the earlier figures of facts* Having regard 
to the fact that this table is compiled only to October Slst, 1921, it ^ill be 
necessary to Y9tQT to sot^o of our separate reports for the later details in 
reference to certain plants; especially Is this so regarding the principal 
characteristics of the qeeenston-Chippawa Vox-sr Developnant , all of t?hich 
are set forth in cur report on that pre J est* 




The w>.o1q of t^*£p6£jpinglin formation has been obtained froa 
the records of the Cerise ion, or is based thoreon* The Carleton place plant 
of the Eideau Systen did not operate durinrj 1921. The Eanney palls plant of tha 
Central Ontario Cystsca, and the t^uaenaton-Chippawa plant of the Ki&s;ara System 
irere still lncorplete on October 31st, 192U ?he Srlndale plant t also of the 
Niagara Eyctea, operated only nine hours per ^ dtsrir.ff 1921, so that the 
figures glren in Hea3 41 to 44, inclusive, are rot comparable with those 
of the othor plants* 

In the case of the Central Ontario Systoa stid of the Klagara 
Cystea operating cost has not been separated on tho records as between labour and 
Raterial and Is not readily ascertainable* It rill alao be r.oted that there 
Is no informtlon given in respect of The Electrical DerelcpoGnt Cocpany, a 



dro-Electric Inquiry Commission 

f for Enclosure to 



315 



plant recently acquired by *&* Cosnlssion raider the tor&s of t2ie "Clean-tfp 
j>3&1« # She outstanding charaeteristioo o* these plants are, however, given in 
s general way In our report on the <&oeastra><!MppB8a Power Xtevolopiaent mid in 
our report on the Kiagara Systesu 

^he growth in tho pswe-r load in Ontario lias haen dealt with 
earlier in this rcport # nn& we would refer ^ou to page 216 vshich represents 
in gmpoie fora tho peas: loads in electrical horse-power for tho period 1911 
to 1922* In observing this chart it is to ho noted* hosier, that loads shovm 
thereon include not only power developed by the Cousaission itself in its 
several plants* but also includes tho power ^tvlch it purchases frm private 
cocq?ttnios» V^ kJ 1 X 

2he total hydraulic installation in the Province or Ontario 
coa^arod with electrical boi e epo n o r cold by tho GouEdssion is also graphically 
illustrated on pass K6 o£ this report* Shit nfttter is alao referred to in 
another section* 






2he enormous growth that has occurred in tho consumption, of 
power in tho Province of Ontario* •specially during tl-io last four or five 
years Srrsedlately brings up too question as to t;Siat further devoloxsaonts will 
he required in order that t2xro Bay he a sufi'icluat amount or potior available 



2/6 




1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 



Hydro-Electric Inquiry Commission 

W. D.Grecory. Chairman 

Economics of H.E.P.C Distribution Systems 

H.e.p. c. Systems 

CURVES OF PEAK LOADS 
IN ELECTRICAL HORSE-POWER 

Toronto, June 23rd,l923 Made buf^d Checked y^/J-V 
Walter J. Francis $ Company 

Consulting Engineers 






ydro-Electric Inquiry Commission 

pv for Enclosure to 

217 



for industrial and domestic purposes in tao future. Generally speaking the 
aaoller plants operated by the Costal salon aro operating to timely zaasicasa 
capacity and, if tbs demand continues to increase at anything *to the sacs© 
rate, the Costal ssicn mat continue to kj&}hj ect doToloprusnts or ftxtensle&a to 
the old cues year by y<mr if tlu>y are to 3seop paeo with it* 

la each of our reports on the systoaa, will be found a section 
dealing ^ith the subject of future sources of power. In alnoat woiy caso 
our analysis shows that the total eoount of po*ser now being derelopod is 
be ins eonaaod. In aany of the ayatesa there regain no large vottor posera 
tahich can be developed la tho^too \^icfc i»s that these ayatcaa Bast look 
elsewhere for any eddlUonel WW Cat W be required. 

In the case of tfc* Quoeaaton-CBxippaxjR i ; owr Bevelorccat, the 
lOant Iwobu delivering powar in January, 1922, nag six units, fttUaff en output 
of approsdmtoly 500,000 to 3S5,0O0 electrical horse-power, wore in oporatioa 
by January, 1924. Sola ajaount ia now beins absorbed by the Hiagara Syateo and 
the CoDsaiasion say find it necessary to hapten the installation of the 
reaaininc; units if the dessand continue a to grow at the present rate. If it 
should continue to grow at the present rate, too Qaaenatoa-Chippaua plant 
will bo fully loaoed within tho ne:ct two or three years. B» Oovcm^ent 
and the Coraiasicn ar* now confronted vita the Ration aa to what ofcouM be 
done to z»et prob&blo and possible future domais. 



ro-Electric Inquiry Commission 



D 

y for Enclosure to 

■ 



SIS 



A very sxibstantiul part of iaa increaao in s&pzs' los4. in 
Ontario ©arpeci&lly during roccnt yoare faas boon &s» to the grs&Uy 
increased use of donostlo &H>liatio0S for heating »sd other purposes* 
imo to low deraestio rates* tho use of slostvicity for cooi&n&j, heating end 
other purposes has booono vary general* A typical instance of Ttf&t has 
occurred ta this roapeot ms pointed out to us In reference- to tho 
ISuaioipality of Sorth Bay, whoro sCtao&t tho cntiro impply of powr 
available una bsing used for donatio appliances., leaving little or 
nothing for general le&nstrial purposes* Zliia illustrates what has 
occurred and will occur in f^I\jT71^|I^\&6roc in connection with tho 
Iilag&ra and oth&r future lar-;o 4eTeloprx<nt3. 2ao phsnoaeaal dos&alo on 
tii© recently constructed Chijpaisa plant sir© largely due to jwjuiroacnta 
for Oossstla i>urpooeo« 2&is *Uno&& ^1X1 fc« ft laost ls£vort!sn$ oletaent in 
th. future power situation in Ontario mid :sfty, in tlfiK, force a revision 
of rates* 



;R o-Electric Inquiry Commission 

, F or Enclosure to 



£19 



SCEfl Q? 3% gcgTCW^ts^./^^n^ 



It 1» ing^oa&ilsle £qt xw fully to exnssariEO our conclusions in 
rosT^ov ©3? all tho subjects submitted to ua for toesti^aUon, cvon ttithia 
the *eopo of this report* SSiore ia nucii matter W27 pertinent to tiuaa that 
o&n be found only within tko reports that ^a have already sul^ittsd V4 Your 
Konsur r*r<& to vhtch wo r«i>r you, bat in cloaii^ vo shAll stsaroaris« or repeat 
a fcm or the Mfcfa oonoluaiona at valoli wo Jj&v© nrrl7ad# 

52so prinolx>L« of publia parwir^hi^ or tft* -water povora of £ho 
Srcvinoa Aid their d^vsloii^XjJ- Jpo 4W10 fer tfc*s pocr.lo, is, is our opinion, 
fur^^sitally Bound. snuk anouU fa mlnutln*! *t oil te&as&a in lt» full int©#- 

rity* 



\ She Encijjooriasf DoTXirtoeut of the Canal aa ion ia rnado up Of sien of 

ft$gt professional qti&lifio&tioua &a er^inoora, and &a anon tf.ty £.ro fewrviBg 
the Qo^rdaalon Keuloualy and cff ioiently* EU& vttrioau pl&nta of tlio Co^ia— 
a ion cro ossco*>tior»ally *?oll o?:o rated by thoa» Uum iaapaottng tiu>se pl&nta 
wo )icvo bcon oaca impressed vfith the outstefcdir^ c}£Jfro*or and s*bility of tiw 
er.etoers in o>Ar£0 # 

2ho nethods of neootmtlaff adopted by tha CoECLiaaicu *a boll ova 
to ba ado ru&ta a:u prqaar botn in roapcot to tlao name* in Vhlefl ths duti©* 
are apportioned aill na meania tlia rcco^la lscpt* Certain in^-rovorwitta in 
tha ayatan no? ioilouad ln?a boen ruflflUl nd by ua» 



> 



,0-Electric Inquiry Commission 

r0 K Enclosure to 



£20 



2l;at tho ori^uais&tion aOaiaistcrwd by tho CoEsaissiGu ia finan- 
cially sound tnt*ro is not the slightest doubt. 2hd Cos&iiosian haa, to a 
tos^ de.;.Troo» a Konoi3oly of something: that cveryona tetnt&« ^v or^u^tisn 
tijat has suen a rsonopoly should havo no difficulty in paying ltd i«iy # provided 
its Method of administration i3 sound. So «o^o of tho practices of the Coc 
liissiGu «o fc#&& strocg except 'en in cur rsjort*, and to tneso reports tso rsfer 
Tour Honour* 

Sag thlir.*s to i&ioli w? hove t&l-am exception aix> nearly $11 
letters of adsdnlst ration* But ssotaods of administration can bo rafoaned 
ar.d t:ron,;; astasia can be ri^tsd,* -SSp j^ation now* scs^o Of lco tnjbo^a \.iiioh t 
in our opinion, to.v© 150021 *Han£i A A 

(a) Sbaro has txttm too sroat a tonftenoy on t>oo part of the Corjsdasion 
to defer tlie time for r&fssdin;- Its obligations* ^«ro appears to us no 
reason vAagf t* 5 ® t^ ** 0]r contribution* to sinking iYnd to moot tta> cost of 
construction should invariably be deferred for five years beyond Ha tine 
specified in She Power Comissiou Aot# T?r«atever the taumd far pcra&y B8S7 be. 

(bi &*• ea£pm*3*l intention 0? the Cccraisaion to ext<ar«l tno tirao for 
ccntriiyutiaaiii io tlid iiinuin^ fnad in revest of tag vuoty-i*tarrK2ilppa\pa under- 
tafcint; to foti/ Tear* *iti i Ji7e-y»ar defottaent period i«?» vo bolloYo, 
Absolutely mnct and* ** crj advised* contrary to rxifting 1 aw» v;e ragazA 
It as unlikely tt^t tne fcastslatan in passing 2na Ontario 8 a Pevolopaait 
Acts intended ts relievo tne iii&£&r& QrftM fron the provisions of 'fho iXrocr 
Caxiioaion *^ct relating to contributions to iJapfe&ns tVRi* 



le ctric Inquiry Commission 

Enclosure to 



221 



(a) £he failura to proYi&o a staking fond for nearly all of the boiai^d 
indebtedness i» respect or the Eiafjara developments, ^hieh are operated by the 
Cohesion as private companies, in tho a&uta general raaaner and to the eaiao ess- 
tent as is done in retpeet of cash advances under Ww Po??er Ceiaaission *©t« 
has bean, in our opinion, unsound and unjustified, 

(d) 2h* prinoip&l estimates of cost of derelepaaonte submitted by tho 
Ceanlssion to tho Uo7eri23Qnt have in nearly all eases Won far too lora, 3o 

■grid* h*s been the difference betwen cstio&tes and costs that tho fact that 
the eitiMfctei should have been submitted as reprosontim: the probable coat 
of tho worhs s*essss alraost Incredible* 



(o) In 1322, the frttd|s&OTtQ|k * large portion of its renewal fund, 
*$iich at that tta WM in aoae cuees too **&&&« and allied it in payasnt of 
outstanding balances due to it by Ksmicipalitiea and established near roneml 
rates for the future on a aocn lower basis, 2hia depletion of tho rene*s*l 
reserves and the reduction in tho rate by tho Counlssion was, in our opinion, 
unjustifiable and unsound. 

(f ) tfe fully concur In tho opinion expressed by cur Consulting SagintiV 
that 13m ccntinecncy funds of the Coraaisslon are, as a rule, too lov. 

(g) Iha unauthorised use of tf 1,100,000 of the funds of the Power Ooa- 
lalfislem for radial railway purposes was \sholly unjustifiable and tho aziount 
taken fron these funds should bo restored without delay, 

Wo refer later in this roport to other luatters Of administration 
which, in our eplnion, are wrojitf* 



I jctric Inquiry Commission 

, .sOOSURE to ZZ2 



Thero are two distinct aides to Sir Ad&a Beck, the Chaincan of 
ih5 Cosrsiasion* 7hat bo rendered Eost notable service to Ontario in building 
ap the present Hydro organization is undicputable* Eo »ost effectively defended 
it when, at a critical period in its history* it was attached by unscrupulous 
Interests that sought to destroy it* Tgq attacks upon hin by those and kindred 
iutarests have been his greatest asset* For the services rendered ho is entitled 
to receive full and ungrudging credit* Ko is also entitled to Kuch credit for 
ersating the present able and efficient staff* as vo have pointed out elsewhere, 
ht has kept tha organization froo from those paralyzing influences of official- y 
doa which have often done rsuch to lessen the value of the public service* On 
the other hand* there ia no ^^(jj/ij^iaj in his dealing with the Government 
of the day he has frequently failed to disclose the operations of the Cosroia- 
• lon, he has paid little regard to Legislative authority end ho has shown an 
absolute lack of frankness* He appears to have recognized no obligation to 
keep the Government informed in cattera of cost and expenditure* *hen 
•♦eking authority to construct powor developments he has tiae and again sub- 
mitted efitinatss to tho Oovernrsont and the Eunicipalitios which he should have 
known - and we hare no doubt often did know - were Inadequate or unaound and 
Sovernrsnits and ssnioipalitios have be^n misled thereby. Information as to 
laorsassd cost due to chansod conditions or changos in design has been withheld* 
Appropriation a xaade by the Legislature for one purpose have frequently boon 
aitd for other and unauthorised purposes und the Government has boon kept in 



; ctric Inquiry Commission 

, EhCLOSURE TO 2*£ 



it* dax*: as to what has be*n done* Without any authority, Legislative or 
otherwise* 09 tise^ s?sr 8lsl0$*OOQ of the funds of the Powir Ccsaaisaion for 
radial railway purposes. On one occasion, pointed out "by us, having good reason 
to believe that pajaacnt of certain accosts would not be authorised by lbs 
CosE&ssion if au'csiitted to it, he had che<£uiss for paynent of thsza issued without 
the saaetion ov even the fcaot&edcft of the Board and without there feeing any 
ie$al authority for ^ayaent. His salary as Chair/aaa i0 t in our opinion, 
sodarats, having: regard to the duties and responsibilities of his position, 
but hi!* action in utisc the skeleton organisation of *he Ontario Power 
Cosyaay to increase it to the present figure was discreditable. Ho has 
often botm arbitrary and ii^;/T^iE^\A his dealincs with his colleagues .A 
and with the Government, aad it is needless to say that at tittes his 

« 

relation* with both have hevn far froa cordial, Ho head of any Department 
of the Govvrnssnt doint: the things which ao dSd^ would havo kept his position* 
That he has feept his position, notwithstanding the aotions to which wo have 
referred has no doubt been due to his undoubted merits, of which we havo 
tpojeen, sal to the fact that ho has a large and devoted follow in# and has 
created a political force of a character which Government* as a rule are 
wsilllnr to Antagonise. Frequently in referring in our reports to actions 
of "tin Cables ion % we are cuare that thoy were actions of the Chainuon /\ 

*lone aai that his colleague or oollcafruoa, as the case night bo, Icnew little 
or nothing of thtsa. 



> Ei 



cctric Inquiry Commission 



[CLOSURE to 2S4 



It is not pronaa? or soewly that the GoYorzaaont should authorise 
undort&kirv.:3 inyoXvins advances by it ramin^ up into the tens of Killiona of 
dollars without ascertaining as nearly as possible* at the tiaa it authorises 
the development, the extent of its oofanitmonts* Eor is it j^roper or aoecily 
that the L«&i$laturo ya&r after your should raa*e appropriation* at the request 
of the Ooradssicn for certain specific purposes and that the Gossaisaion should 
dirert theia for purposes unauthorised and Borsotisao unlawful s-nd not connected 
1a tba ra&eteat do^roo vrith tho objects for ^hich thoy vroro K&do« 2he looseness 
in tho preparation of the «Afia&tef_is a ^.serious jaattor* tih&i application 
is made to the fcoverm<mt rtrr tftfUiirit^rto proceed t?ith a deyelopaant» it is 
entitled to have before it estimates as sound as they can 00 k&&c» and changes 
iavolTir^; greater expenditures should not be wide ^itIio»it first taiag brou<>hfc 
to its attention and its sanction obtained* 

*o have reason 10 believe that ostirAstes at the present tirso are 
be ins prepared with greater care than heretofore. If the 'lovercziont taia>a 
adequate precautious, it certainly should not bo misled in the future as 
favtiitttiit* hnvo been raialed in the past. *i!;:e preparation of estljaatoa is 
en« branch of the mork in rcsr-oct of r?hich the engineering; ataff is open to 
adycrse criticism, wo boliovo, however, that, in sotm inatancas, ©sti;a*tea 
spared for the Coraalasion by the engineers and which have feot been represented 
°y tii«i as co^lete Mod adequate have latur beon preaentod by the Cosanisaion to 
tfca BsevriLBeut as representing the probable cost of tho work, a &sua la point 
a tn^t 0^' the estimate for tho -hird iipe Lino of £hf OttlAriO ^ovrer CoqpAfly* 



Cuctric Inquiry Commission 

g !-U «URE TO ^ 



v^ fllblllt? of Government arei Legislature 

On many occasions when the Cosraisslon has excaeded its legal 
r&etra it nas afterwards gone to the Government or Legislature for its sanction 
or approval* 

The following teatiraony on this subject given before us by the 
Ute 3ir John Hendrle v a member of the Commission froa 1905 to 1914, is cuoh 
to the point and, in our opinion, absolutely sound i 

3.- fchat do yon think of the practice of introducing validating Acts? 

1,-1 think it is improper ♦ 

<;•- Would yon thinlc this ci^ht be soundt To lay down the rule that 
thase acts should not b* dnneboXoi^ legislation, authorising 
thora to be done, shoiud |a\ili^to^ 

A»- Tea, that is right} just the sarae as any other legislation. 

Its aots having usually been ratified by the legislature and 
disapproval of thoso transgressions that were brought to the attention of the 
QevtncEeut by the Auditor having been seldom expressed, the Chairaan was un- 
acabtadly encouraged to continue to disregard the law. If a Government with 
tae pot r of reiaoval in its hands fails to act when wrongdoing is brought to 
Ua attention, it met bear a large degree of responsibility for it, and for 
fa tars tran agressions as woll* 

Covtrmnt should ieep in close touch with 
to Con^.jsgion 

The inportance of the relations betweon the Oovorncmnt and 
*^eC«a:isBion and between the Comission and the nrunioipalitlea, and the 



i iCTRic Inquiry Commission 



! 



importance of the GoYemaent being saore closely in touch with tho operations 
of the Cossaission ^ ian A * * m3 k° 0Ii * n ^ P 215 * * s ^alt with in our report 
on "History aad General Balationa" and c&isiot well be raasariaad here* %fe 
jov&rd those as ssiuors of $reat importance and t&Zqt Your Honour to the 
report »fc»ticnad for our view* a«& r»ooiasca*ationa upon these subjects, if 
tha. ttorerxsaent if* to have full and accurate information as to tho Commission 1 © 
operations, w believe that it will have to seeura this information through, 
a representative or its ovm, fully qualified to Xoep in touch with tho wor& 
of tho Camla&lon in all its branches* It cannot afford to conduct ita 
buiinoss with the Coaaissicn as loosely as it has been conducted in tho past* 

COPY 

As we have already stated thcro has boon a notable lack of frantc- 
nats in tho dealings of the Cossrdasion with the Government* As pointed out* 
tho «atira&t©s subaitted by the ComiaBion to tho &0Yerosi*>nts for works which it 
souj-it authority to construct hare been, in nany instances , far too low. Long 
after it ma Jsnown by the Commission tS^at the estimates were* too low, end that 
the aetisatfcd coat would be very largely exceeded, information as to tlia in- 
or**aed cost has been withheld from the Govermaat. Thii waa notably tho case 
la the mtter of the ^uoonstcn-Chlppam undortaldno As wo hare shown in our 
'wport en this undertaking, the original estimate of coat for a 300,000 horse- 
*""«r rtOYolopraent «as ,£4,316,016 and this, in fact, was tho only detailed 

*tln&te ovor subalitcd until yoara after Then the tortc had apparently cot 

sonsaltants ware caiud in to advise, After the eatisa- 

** t: S4t &1&»819 w c subaittad, added quantities, chances in doc in 



o-Electric Inquiry Commission 

f0R enclosure to 22? 



and so forth orout'ftt tha oattato* according to figure* based on unit prices 
uaed la tee eattato and prepared by our Consulting Engineer* up to approxJjB?- 
ataly §3$»0QQ*0Q6 for a 500*000 horse-pow^r irasaediato installation* end canal 
and other %x>&& for a final installation of 500,000 horse-power* Yet the coat 
of the pleat aa eenpleted *ith & capacity of approximately 650*000 electrical 
horae-pewer will be a)>out £$4,000,000, Sbtti the Ooyornasnt in authorielng: 
t;;e construction of ** Vfork at an estlxsated cost of ^24*000*000 In effect coca- 
siltted itaclf to the construction of a wor& vsjhloh under %ho CoisaiBQicn, grew 
in capacity and coat until the total cost will exceed the original estimate 
by ^60*000*000* £hia i» startling, notre£thstaridin& the fact that a consider- 
able portion Of the inareaa\j^vj/a<fto jho difficult and extr&ordinary 
condition* that prevailed durinc and after the tsar* and also to the inc-reused 
'Capacity of the plant. 

In addition a serious distal \ms nado in over-estiiaatini; the 
capacity of the eloctrlo tmi oteara ahovels for thia v?ork* 2hi* lod to great 
delay* in the pro c :ry*o of the wo&i to the purchase of additional construc- 
tion plant and the engaseiaent of eztra cien when cost* \*\?ro at their peak, ^^i 
to a "rush schedule'*, which added enornously to the coat of the work* without 
Adding anything to its capacity or efficiency, *i!ho "rush schedule" rould 
never have been uecoaaary had the conatruotion work fceon under a proper 
nenacfTimt* and thia together with other fuotors, till of vsiiicJi wo havo fully 
dealt with in our report on the -uccnaton-Chippawa uadertaidLrc* resulted in 
an unjust if ia"ble eiccoas coat which reached at least -. 12,000,000. 



FitcTRic Inquiry Commission 

3 ^CLOSURE TO 



220 



2he Cussiiaaion did not iafora the Govorment that the estimate 
tubiRittcd ^ould fce largely exceeded until nearly throe years after the wor& 
ha4 been hegun althot^h It fciew it lcn£ before---i?ro&ae:iy almost froia the 
beginning* S^ s taararledgt at subsequent increases in cost v,as also withhold 
It Is ol^r that the Uoyemsent \sas s&isl«**U such increases as ^ere du# to 
additional quantities aad ehan&^s in design wore cade 0/ the Oomisalou viih~. 
out tlit r catt3r et^r bsin^ submitted to the Oo^reramont and its authorl ty for 
RaVin.'; these increases fought* ?ho first notice of the increase in cost Ofca© 
to the frnreraaoat ir,direotly tr&a tho Auditor* It noma* lneonoeJTable that 
tho Gos*riU**i<» should have r«g&?&*& costs so lightly and that t&o it nailing 
of this great wor& should ^?t/b^s:Da^fed on oy it in such a loose my* 

Faulty Construction Kanacortect 

X primary rdsta£.e vas rade >y tho Cosset esion in piecing ths 
Masfittiaat of the concti-oction of this vott in tho haada of its er^nae-re 
"■ho had not had fuoh a Plde experience in vorOss of **»at FA?nitu£e er. vrculd 
Jutlty Ifea cassis a ion in louring it in their hands* The vorfc, h*ring not 
tojvnd tho control of tin Ctvarnnefit* finally appears to teve got hayend the 
control or the Conmeslcn itself end itc en£ine«rs« 

2he Co; riles ion, fearing decided to do tho writ its«lf » should have 
placed it in tho hands of a Kan of hi^h standing *uid wide experience in con- 
traction vorfc oi" great cs^nitudo who would l^nve reported dlrootly to the 
c< *5ai39iQn« It should not have placed it in the hands of engineers already 



rR ic Inquiry Commission 



^ttlly WM®& aa ^ ^l^ 10 ** *** ^ido earperienoo in construction work that such 
* jaaa would &&** had* 

^s we havo & tat od in cur report on the queens ton-Chippav*a Power 
yoywlopat?nt» the Cteesai&sion lacked throughout the steadying influence of 
fjrsuieial jwrnpfflaaifeility* It fc»t acney alrsost for the asking and it £Ot it 
r.H only fr0b ~ *^ 9 OoTansaeat but by diverted eiiliioas which it hold in trust 
for oth*o? ptfpMtto 

fl ^ TrrEy mt HlslnforaaA 

JTo GoverEatmt should accept with conf idenco ostinatos prepared 
by a pro&obsr of a Mhcae sg^lci^tf support, even though tiio proraotar jaay bo 
a p'ablio body. If the ostEs^tc^-xor tho^«^eenstcn-(?hippa??a Dcvslopsssnt instead 
of bains submitted to outside engineers years after the wor3c -was bc^uu, i&A 
be on submittal to thea in the first instance* the GcYcnuaejit wosld &%*& at 
once fraud out that it was unaotsnd and could not bo relied upon. If it had 
kept in toiich with the work through a representative of its own» who 'would 
fron sonth to taonth have eosjiarcd actual costs of the worfc dono vfc th tho 
Oftticaites 6ubaitted f it v/oald have learned of the increasos in cost lon& 
before thuy were brought to its attention by the Coraaission* Wo iiave, in 
our report on £he Cuterio Power Cojap&ny, submitted an analysis of tho estimate 
«nbi2itt*& to the Govcras^nt in that instance* which shovo how failty and un- 
reliable it ras* \vo are forced to the conclusion that estisaates were ofton 
subnitiod by the Oosnisaicn, not so much with the view of enabling the Govern- 
fcent or the nunlci^olitioo concerned to fori* clear ideas of what t.;e coeft of 



^Electric Inquiry Commission 

•vR Enclosure to 



the undertaking bight be, but with the yiew of obtaining for the Corais- 
a ion authority to proceed with t!so work* 



Loose . ; .ta tease nts end 



2he auaoosa of the xmblioly-s3r.va«d and operated utility for 
supplying oieetrlciii povtor or ener&y to the people of Ontario does not 
aspend upon* but is rather haisperc-d by t loose st&teEseuta or estliaatoa 
as to the actual or prospective cost of such electrical power or energy 
when such cost say be unddS^<\^Ai|>od ^ extravagant* unauthorised end 
unjustifiable cost of generating and transmission vorica, llor is the 
cause of public o^nersMp advanced by lolsloadlnft statement! in regard 
to the certainty as to the tiae within which and the extent to tsfeleh 
nunicipal corporations \shlch havrj untorod or nay hereafter enter into 
ocntracts with tho Ccraninsion will acquire coc^lete ownership of the 
■works constructed or acquired for thoir benefit free fron all enews- 
br&nceo and in a condition approximately ae good as new. In perform- 
ins it a function aa a&ainistr&tor of a exe^t public trus-.t, the Coral e- 
eion *y?ziT should boar In wind that it was created by the Legislature, 
it financed by t*» i*rovtaee t aud it3 pewurs and autterity are defined 
by the wt^tutes* 



230 



.Electric Inquiry Commission 
>r Enclosure to 

231 



In oii? opinion, tho Cos^issioa raade a creat mistake in entering 
into tks radial raitey fislcU as s>olnt§d out, restitution shculi to saftde of 
the rands ^hich it divc-rt^l froa jiqh®? undertaking and woncfully used in 
cornsotion vrith sorts in radial rail^ys* Sha sooner that it is freed froa all 
GQimasticn with radial railway operation the setter It will »e for the Css5>- 
Bias ion and for tat ?rrrinoo» 

£!lZ^^, JjQ^^gJJp. O pgra^ ed oy Corsalsalon - Ontario Power 

CttTT-WTy sad Certais i'rersart iss of tat 'voro^jto Powr Company 
and ita Subsidiaries. 

Althonoii the 3^al/li\;pt \ao I-ravinca in respect of private 

eoMfanlos operated hy the Coacaiaoion anounta to JJWty E&lllona, the Province 

has no dlroct oontrol of the afi'air* of the ooaipaniea* its ifctoraeta ai^ht 

veil bo made saoro aeoure "by •MU&aamt to 'the fvmw Coxs&Uaion Act # 



.Centr al, Ontario s.ysten - Province-Craned, 

Although it *vaa radars tood that the properties of the Central 
Ontario 8/fitflO t^nla ho nado ovor tor operation under 2ho ftnmr Oexuiaalaa 
A9t« littlo pro^rosa has "been sado in this direction* k ?e Sure roGO&tafcnded 
tao »*unaor2rsbll5v:" of tho Syat«a and placinc its operation wider tho terns 
of K& rovror Cooaisalon A*t« 

Wo h&ro called attention to the poworo ^iven to tin Covonxjoit 
under w-eotion 14o end 14& of 2h« i'ovor Conjaiesion Act to f,uaranUo bonne iasued 
or aaauaud by the wxsalaalon* Mater the ^tcttuto theao po^sors can t>o exorcised 



-.Electric Inquiry Commission 

, 0R ENCLOSURE TO ^ 



without Xisiit and without direct authority from the Legislature. The powers are 
extremely «&&»• Cader the law as it now stands* the Covsraneat, without going 
to tho Legislature* could guarantee obligations Mandating to fauairs&s of millions 
of dollars, for Xm parent of vrhlch la t3» event of default tho iTorince \?ould 
be as fully liaelo as it is on bonds issued directly by it. Ee have already 
pointed out that wien guaranteeing bonds in the past tho Governwat has 
asjarsntly fixed no tiiso of rap&sasnt ox T tho obligations whioh it has cro&rantee& 
or pro-yi'itjd for tho creation of eirJdnc fund a therefor, ior the ropajsaent 
of tho bonis of *ho Ontario Fcraer Company cuaranteed by it, ao ein&ing fund was 
created at first and at present sinking funda are only j^rtially provided for. 
In the cu3» of soluo of the /E^/S'^p^V&ioa t*aataver for repayment in the 
?ray of sirJcing fuad has yet be*:n aaad*. It v'vUlq. seem proper if tho >verar 
jaont guarantees bonds that it should at the sacs time see that proper provision 
for their ropaynent la Bade, sad it would also sooia aosirable that vhan any 
guarantee is slvan, the Legislature should bo informed of tho extent of tho 
obligations asaused. 

Accounts gjJslJtoagaattl* 

Eith live ooasent and approval of your late Govorxmont our 
Accounts cits uade a thorough examination of the boo3£3 and reoorda in the 
Sspwrtnent of the Provincial *reaiurr?r sno t ein$ tko dealings between the 

OcT«rna»jr.t and the Oosaaiasion. l 7 he subject is fully dealt vrith in our 
report entitled "Cost of ;.:oney .advanced to tho lJydro-.lU.ee trio i'cerer Couaio- 
»ioa .„• . ._» -rcri.:-.:- *. Ontario • Our c. L that for years 

past tlie annual peysents made by tho Couaia3ion to the Oovarnoiint as thj 



so-Electric Inquiry Commission 
f0 R Enclosure to 

233 



coat ox* raoney f were considerably leas than tho actual cost of tho Eoney to 
the Goverxttont* 

la our opinion, tho salary or the Ooveraaent Alitor should act 
bo fixed, aa at present, by the ^omission, subject to approval *? *&« Covem- 
sent but ehou3a bo fixed by the Covemaent alone, 

2kcy oi xhoae who have testified before us during the course 
of cr-r Investigation have a^^^thep la a tendency for industries to 
bo drarcx frca too boiler ceMrcsroi' thA-ravince to the larger eentres lying 
within the 3iia($ara 3y«ten, 2aia tendency, which they characterize as an 
unhealthy tendency, has been stimulated by the lowr rates tor power prevailing 
within the Niagara System, fee find that the lowar rates in the Niagara 
3yct*3 are duo, not only to the lsrse production an4 Ur&* consumption of 
power within a eocyaratively Ka&il area, but to the action or the eomissiou 
itself. In ttoo scnller centres or Ontario tho census* rs of porar ban to 
pay rates sufficiently high to provide a sinldLnf; fund that Will pay the whole 
of the coat of the ucvolopacnt within thirty yoara, while at I'ia^ra tie 
Corsaiasion, according to a statement ratal Una to us by it, proposes to *ako 
the period for repajaoat of expenditures forty ?**r9 instead of thirty years, 

\j talcing tho view that the lUafiara developBonts do not co™ undor 
tarn ireneral provisions of ike Power Comiaaion Act. ?hon a^ain tho pUnta 



j-Electric Inquiry Commission 



jo 

L, ENCLOSURE TO , £34 

\ 



ft t Hlac^ra **U* ***• largely paid for by th« Usuo of bonds. The Cossaiaaicn 
j^ in t&a yfttti tafcea tno position «fa»t it is not required to provide 
sinfctar tm&n to s**t the bonded indfcbto&nosa in tho &a?ae Banner as for 
cask a*xv;uaea an&c? 2fc» Power Oosnaiaalon Act, asai i» doing ao only to a 
Xiaittfd aott«ftt# ft» noma of theso bond iasuea ao aiding fnad afcatav** 
haa so fur b©en created, ©am the cono^r of Slat*** p»^»r has \a» advantage 
or a longer sinfcins *aad perioa waor* aineias fanda are prtnriaedj and /or a 
Xarge portion cf tka coat of tiae nevelopaaents is at presa.it repaired to provide 
no tittWae tmSi abaWtWe Seday, although aU tne pow? prodnoed la b*4ag sold, 
Xosa Vsin 3$ o* tna eost of tao present m&M of Ue Ki**>ra Syatfltt id Wtogr 
paid ftw on a thirty-^oar aifiJdxu; fund baaia. it appears to as unlike**- fchfivt 
the Legislature intended to firt^eElfl!^r» Syatea anon an advtntage o/er tto 
jssaller e-*>toisa tfcyovg&eat tlie JrTorince and Haul ettalata the eentraliains 
tenu^y fc* lfciafc exception i* ao widely taken. Ii tha general provision* 
of Stat /(Wf Oocdlasion Act aa to einklng fund* were ai^lied 'ay Wis Got*- 
aisaioa la reapect of the Hiaflan ayetem, no TOdne bur-dan would thereby bo 
plaoed upon to© oonauRwrs of pov»r» waiio tan diee-rioiaatioa vMoa aa eidats 
against tat eoallsr oontrea vouid to tail extent eefcJft** 



•Chore la an apparent necessity for a complete revision, and 
pjobably, consolidation of Sba Power Coniaiaaion ^ot t the Ontario alegar* 
3tTaXopoeat -teta and of otbsr otatutee aff eating tne poware and uuties of 
t:ia COWfAiailOBa 



uo-Electric Inquiry Commission 

f or Enclosure to 



235 



jfea&mUa»fl Ems Sffltoatt* 

J&r. &*by assures ua, and wb have no doubt that he* correctly 
statea the fact tlm.t all reasonable precautions hare %$on- t&icen by t»o 
engineers of the Coisrdsa ion to guard against accident at the ijowr plants, 
Vhen one r^aliss* the extent to s&loh %bo production of power is centralised 
within a very s^&ll area* and that #n accident or the est of ease irresponsible 
person iflidkt put the whole plant out or operation, one cannot but be iiapressed 
with the iasportance of providing a most aiaple contingency reserve, 2he^ 
accident at the plant of She Ontario Powor Company in April, 1922, destroyed 
several of the generating units, and if one of the heavy pieces of saachinery 
which went up through the ^fxhadj^U^ at a plaoe tut a few feet distant 
frm the spot v^ere it did rail the whole plant di£ht have boon destroyed, 

jLiberfc? of ^«^mU 

Ehile, in our opinion, the COmisalon should be atrictly account- 
able to the Gororrnont and tae Lwglalaiture and should observe the Statutes re- 
gard ins it» we aro strongly of opinion that the Co?^:dssion should not be a 
tt 33epartoent of tae Government" in the strict eenwa of the term, but that it 
should have full liberty within itaolf. 2o Bale it a Departermt of tho Qovoru- 
cent in the saaa aenae that a Sopartittnt of a Uiniator of the Orown is a Impart- 
»ent of the Govenrsent would, we beliovo, erectly l*M4H its usefulness and effi- 
ciency. It should be fcept free froia tae patronaco hunter. If it were turned 
ovor to the patronage hunter tnO. appointments as-do on purely political £rounda f 



electric Inquiry Commission 

*p Enclosure to 



236 



it TtftrjXd roooivo tfiat w* boliava vjould prove to bo a fatal blow. So aays 
Sir Adaa BooSt and wo fully ftgvft* With hfca. 

! 

j.^v, or *v;;-/»fl)i with >^mlcli3RUUfea. 

S^iera Is a wi&os?r©ad fooling that tho Ccseiis&ion does not 
Keep in as closo touah as It should *lth tho rronicipalitioa* tfe believe 
mat Uwra io crcc^i for this feeling* Wt hav© dealt with this subj&ot 
in our report on "History and General Eolations". 

She lamicip^irtl^^iT^rK^CJSda to oeowro tho advamsos 
mde by the irovinco. 2ho irovirice iaauos its o«a boads and it alons 
is liable on tat£U It can collect frora tho Bemloipalities only throng 
the Coijsilsaion which asJcefl contracts with thorn for the calo of pewor. 
3o far lass than 2 per cent, of tho advances node "by tho irovinoo havo 
boon provided for by sinfcind funds. At the present tfcie. the obligations 
incurred by the Covernsent in rospect of tho undertakings autfunt to raoro 
than half tho toUl provincial debt. 

2he citations of the adequate taxation of tho properties of 
tho BoomlMian saA th* flying of & reas arable prioo for water rental aro. 
in our opinion, cutters for consideration by tho Legislature. 



,0-Electric Inquiry Commission 

< 

fo b Enclosure to 



237 



(Salification and Ifra&er 

o* igaafcari of the Qqrralielca* 

©ae \sor&a administered by the Gomisaion arc? of euch great and 

Increasing valuo arj& tno interest or tae irrovince .In tnon is so eno'saous that 

It is ta£ortant tbat tho Resteers of th© Ccmiasion should be airily Ciueiified 

noil, *TiO general opinion of tnoso that testified before us ma that tlio 

juwber of servers of fcue Coaaission aaouid not exceed tnroo* 

She value to Ontario of tho pernor developments under tae control 
and maftgwe*** of tha Comij^an^^A^ 3 ^ 55 ^* J * s greatest dcvelopjaeat 
by far is that at ■■4B»«n3tac^5Si^J»*«»» 2ws.j?eofcin£ tal* aevelopeaont "cm cannot 
do better than equate tho following paragraph from our report upon it# 

*2ha design of the '^ueonston-Cnirjpfira Sevelcjsaent vaa bae»& upon the 
reost intricate calculations loam in tbo tbaory of hydr&ulicst but 
ersn so taorc eaa sose doubt as to whether or not tho result sought 
for would be attained tkrougk it* It now ap.>ea.ra clear tiifcfc tie 
engineers of the Coeoissicn* as designers of this great worfc* 
surpassed eVen their own ox]X>o tat ions. i'i;e canal "was desir;nod to 
pass 16*000 cubic feet of ««kt*r >^r soconu, but we aro advised "by 
t?ur (uniting ■angtwssr ttoat it ia capable of passing 1£,000 cubio 
foot of r^it^r nor seeead $r Kara, fhe sasineere stated that they 
hqryod to f»t uurty torse-power per socond-foett but tiio tost WAlob 
uu hare tad nada indlsates that this amount will bo exceeded* 
It vtaa originally eetlmted that it vouid derelop 600,000 
cl(;ctrlc&l ncrse-yewex* but it soo&s olear tfcat it villi on 
co-pieties, devolep 660*000 ©lectrical horac-^oucr - a noat 
substantial increasse. fine plant now has an efficiency or over 
&0 per cent,, - an unusually hWi; fixture and one vttJLcii indicates 
a x'lnon*a» of desl^ solclca, if ever before, attained in a vroi'x 
of this ciui.ractor # It is, in snort, a n&£ndflcent piece of 
«ncineeriE u '. r, 



^.Electric Inquiry Commission 

oB Enclosure to 



Z2Q 



£0 cannot conclude our report wtt&out isc&Sclx^r TQf<*v«z&Q to 
t&& valuable «a& efficient ssrvlcas rei;dorts& to us in t)ie ecur&e of cur 
investigations by Hr» Walsor J". i?ranci3# our Consulting l&glnewr, v«iiO haa, 
%ita great ability a»l uaiiring enor^y as& with a decroo or taorou£;3n«00 
eeldon ©quall&d, examined the engineering records o* the Cotsalsal on # 
arrttns©4 asd claa&if led t&uiy of thaa, asd prepared charts in v<hio2x no 
teila la graphic fora the history of construction* operation ana results* 
Se bft* also prepared, for us fro>a the c<r$at oass o** saaterial in %h& files 
of the Cosniiealon, reports on all engineering aattera that faavo boeca 
the subject of our in^ip^ ^^Fxauols fcaa f throughout the *?bolo of 
his worX, received raoSf vtsrluJble And cosiial co-operation from the 
©niTineorins staff of tao Oa-nissicn* Without thoir help and co-operation 
it ^orald have T>cen iispoesible Tor Ma to havo acoCiapliahod *hat he did 
In tho tiae that he did it# Wo also desire to expr<o&B our deop appreciation 
of tho woxfc do;ie for us by our ^ooountants* Messrs. rrice # raterhouse & 
Co. f ufto havo i-^ulo a toioroiit^i e-xaudnatieit of t&> account i2& syatea of tho 
O^ixiiaaion in ltd v&rious branched, of ita accounts with the Province, 
of the accounts of all its ^yaterse wid its varicus activities, and have 
pro&snted u* with clear and oo££;reh»naivo reports thcroon. Iron 
our -ocretary, I?r» J»IV* 7 * Bcrjfor» hin&olf an 3£ai;lneer t who has Kept 
our records, orr>ni3ed our worts, und seen that it was dono and to 
a largo extout drufted HI raporta, and froa aia staff a wo have 
racuitfed icott valuable and efi'icient aarviQu* t'r. J.A # VcAndrvjw, 2*0»» 
and ti;e other aeueert 01 our L«j;al -/tq:>artiacmt have been ox* great 



r o-Electric Inquiry Commission 

for Enclosure to 



230 



help to us. Sr# ScAadrwr*! tfccrousfr toowlsd^o oi the U&m rel&tin* to th© 
Vioraaissitfn &&1 assistance in the preparation or our reports have been 
Invaluable, S!r. G. ?♦ Clar&son aad hi 3 partner, Sr» 3*£« Guilfoyle* nave, 
froa the x'irat« cc^n of gpraat assistance to U3 ssnd nave placed at our disposal 
their very coogplcto Jaxowledse Qt the Cessnisslon in all Ha relations, 

80 also desire to eatress otir deep appreciation o£ fc&e feelp 
and consideration in tha perforxr&neo o£ our ^oric that wo have received froa 
your overman ts # 



COPY 

fcfcrch &th, 1924, 

W* $♦ Grcgory f Chairasan 
ll* J, X&noy 
Lloyd Harris 
«T« A # Hosa 
R» jU Rosa 



^Electric Inquiry Commission 

foR Enclosure to 



APP3HDIC 3 3 



COPY 



^Electric Inquiry Commission 



j, oR Enclosure to 



isxms& ae 



UZ2i%2. IA1T2R J. 5IUJCIS & CGHPASY, COSS0LM3RI 22Q1SS.3S 



^o-Electric Inquiry Commission 

\ for Enclosure to 
I 



Hat of Eeporta furnished to the 2§rdro-iftoctric Inquiry 
Coaraisaioa by Keaara. V&ltor J» yraaola & Ccsaja&y* 
Consulting angineerai 

ES&bW JEltV* . , 

(Goneral Index 
1ft . (Chapter h a'* - Preface 

1 L (Chapter M 3 rt - History 

(Cha.T)tc^"GX-. J^v^sary Kaports 

102 Chapttfr »*/» V L>.7cy Availablo 

103 OhaptcV^O^-fcenoial Description 

104 Chapter "i"" - Organization 

105 Chapter M M - Contract Work and other Construction 

Procedure 

106 Cijajjter "K** - Construction Plant - Concrete and 

Heinforcod Concrete 

107 Chapter "H" - Construction Plant - transportation 
100 Chapter "H rt - Const mot ion riant - Karth and Hock 

iixcavation* Canal 

109 Chapter "JT* - Construction Plant - &irth \nd liook 

KxeaYation, Intu£o t »» oil and Hirer # 
iforebay, Pocer Koueo and ^ilrace 

110 Chapter V" - &aatltl«i - Mfht-of-Vay 

111 Chapter "J rt - iiuantitioa — Temporary £uildin£3 and 

Corraianariat for Conatruotion 

112 Chapter "J" • Quantities. - Bridges and Crossings 

113 Chapter "J M - *iuantitic3 - Buaaaary 

114 Chapter "K" - Costa - Analysis of K8tiaaato8 - 

iart I - Text 

115 Chapter *X M - Oosta - Analysis of Setlnatea - 

Jart II - At pond ice a 

116 Chapter "K" - Costa - Analyaia of jirpondlturea 

to L'arch 31, 1922 

117 Chapter "I/* - Evolut i*« of the rtovolopnamt 

118 Chapter V - Discus a lone 

119 Chronolocicul Chart* 



30-Electric Inquiry Commission 

f0 R Enclosure to Aptxmdfo "f" 

2 



£LUa_ _ 

120 8a» Ontario Power Company of Biagara Sails 

Description of Plant 

121 **» Ontario lover Company of aiAgara Salla 
199 -h.^ 01 ^ on * col(l0 ^ on april £0th t 19£2 
"* ™ °»tario Po^er Company of Kiagara fells 

Report on Condition of Conduit JTo« 1 
Sao Ontario Pom Corapany of lUagara ialla 
Study of the Syatcn 

at ^otio ? n C °" XCrQl Catarl ° abr8t8B - Of***** Ontario 
IS S °5 S!?!* 1 Cnt * rl ° *""« - WpiMlag Motion 

1*7 SoonaaiQa - Hiplgon Syatcm - Hstl&ates of Hydro- 

tflectria *-'oser Corasiaslon 

fefinfc 3rst«a - Study by Walter J. 



123 

124 



133 

139 

140 
141 




129 Study of 2ogenl& Systoa 

130 study of at, Lawrence 3yatea 

131 Jitudy of Vaadoll»s aystes 

1 32 Utudy of aerem ^yotcta 

133 Study of hidean System 

134 Study of liuaioka Syatoa 

1 35 Study of Ottawa System 

136 Study of Choroid Uyatem 

137 iitudy of Zsaex Syatoa 
Study of Boanechero iUver Storage Ostein 
Study of J.iagara Syatcn - Part I - Being for Period 

ending October Slut, 19a ioriod 

Study of Kla£ara Syatea - Part II - Being for Period 

caaasnolng irorexnjor 1st, 1921 ^oriou 

Principal Characteristics of H. 2, p. c. Plants 

gganaorlptiona of Tf.S.y.c* Docnnsr^ n 

*** Haport on ?jtca.Yation fcethoda and Equipment 

143 Cotszar.t* on Srldmoa given befcro the Conni salon by 

Contractors on tay U«h« 22nd and 23rd, 1S23. 



>£lectric Inquiry Commission 
oR Enclosure to 



COPY 

lxb2 sar m?att22 ash KSHonAsm 

BY 



oElectric Inquiry Commission 

- 0R Enclosure to 



List of Heporta and I'eEormida, ©to., furnished to tno Hydro- 
SlcotriG Inquiry Cossrdssion by I&asrs* Prioo, Waterhouso 
& Co.* i^dltorst 

aa&gg ^ snifl __ 



1 Prolixstaary Chart of Undertaking 

2 (Trial Balar.ee to HovcKbcr SOth, 1921 
(TTial Bal&neo to l^cor/bor Slat, lfrU 
(2rial Balance to January 31st, 1923 
(£rial Balance to ifebru&ry 23ta # 1325 

3 (Srial Balance to &arcii 31st, 1322 
(2rial Balance to April SOth, 1222 
(Crial Balance to Iiay Slst, 1922 
(2rial Balance to Juno 30ta t 192Z 
(Irial lk^.f\jySl%/ r Slat, 1S23 
(Trial Ba\&e6Wkd Assist 31at, 1922 
('irial Balance to Saptanfcar 30 , 1923 

.QgrrreratlTO jsalasco ohcstg o f 

4 Choroid System 

5 ii33cs Syotan 

6 Sandwich, Windsor & Aeheratbcrc Railway and 

Subsidiary 5Sba Win Is or & SecuEasoh Electric 
Sailim? Qoapany 

7 Gnclph Radial railway 
Central Ontario listen 

9 Cntarlo Po^cr Oaojpany of Ela/Tira Falls and 

Subsidiary She Otatario '^rancclsaioa 
Corrpaay Limited 

10 Condensed 3tator*nt of Aooeta and Liabilities 

for years 1S17, 1913, 1513, 1920 and 1921 



oEuECTRic Inquiry Commission 



roR Enclosure to 






ESE^. 



mi*. 



u 

12 

13 
14 
15 
IS 
17 
18 
19 
20 

£L 

23 



£5 

26 



2? 

23 



29 
50 
51 
32 
S3 
34 
25 
36 
37 
33 
39 
40 
41 



Choroid Systoa 

Ooftlph lladial I&il^agr 

Gttam :.<5*st#a 

iSssos Jyotqa 

Bosnec:iera Hivor I>toras9 Ovstoa 

Bngpn i ft tiyot^a and iasgeaia i&ral X.incs 

yatfrotoa Byafcas 

Severn &yoiraa 

Ridcaa SystOB 

St* Icnero&eo wyotesa and St. Xararenco 

Rural Linos 
Stosdoll Systea and Vasdell ?Siral Xiaoa 
liagsra Syatoaa sad £i&£ura -teal Lia«s 
farador Ba7 ays tea 

and Sftadsor and Sta&osoh :}l©atrio 
Bailvay Co rr^sr^r 
£c*yTTy tf^tasr^O System 

vS^-fe/' r^'^l CasgMUsgr of Kiatara Palls end 
#. so i diary £ta Ontario Srimssslasion 
Ooopaa? .Lir-itsd 

farestlsatlsa of Acoamta of 

Bio/pra 3ystoa 

Cnt^io i'o^er Company of Sljtgwi Italia end 

its Subsidiary Ostario 2raaamissicii 

Casptt&y* Llsdtad 

Sksuoli i>yot£a 
Miami Jyatcsa 
BwfrTrtrai oyster 

Boaaoclioro Ukrer StoragQ Oystoa 
tft« Lavsroncs oyatoa 
Otfcra. uTstoa 
Severn 1373 toa 
iijscx 3yatca 
Qiilph Badlal Hallway 
.£t£o:j.a ttyntmi 
Harold system 

BaoMeh* .iad3or and Ariierst'ovrg Kall\i«y 
Toroato-i^rt Credit liaitey ur>d ..art Credit* 
lit* Catharine 9 I&ilway 



jo-Electric Inquiry Commission 

? or Enclosure to 



A 



%£$££. 



-" i TfflYi 



43 

43 
44 

4:0 

47 
43 
43 



50 
51 
53 

53 

54 

63 
86 
57 

C9 

59 

60 
61 
63 
63 



64 







Statistics ro Sotiaatad and 

— J&asaAJamja&asu <^i, tit 

Sorem System 

Gtt&m C^tem * 
fiia&vra *#£te& 
Sncuiiii* System 
Rldeau ^ystca 

J&mkoia ^yat€si 
Sasaoll iysteaa 

fin ^^m ^m^mmsm^^^Msml^mimk 

J^randiaa ro ^loyoo Ja^a Calvert, Patrolman 
toorcaacB ro S^t-o*-^ ot Chippam Want, JUy 17, 1928 

»*-*«*» ro ^s>fc*** f ^rforains operations elided 

as vaoiitte Shop* Operations 
^o^a^r^ rw^snto to CozuRrttlnff iangineors 
q(B^*r&p3|3rreY€aaqp iauiageoGseat 

teorandea aelaUvt to fiaccnoration of ^eecntiv© staff 
Letter datod J»SK»t 14th, ma, to to>. Srenela, ro 

. f f - ? f ' v ^ a x ' ald on '*«ee»t<m-crdpram Xtoveloixse&t 
Jitter dated to0j»t ^5Ux, !»», to Kr. Francis, ro 

inscawmttoa to staff 
terazsliK data* Ar^st 30, 1922. ^ par^x M8t0lv of 

w% d* 0. Salter, i'crchasius i£ent 
Secoranutan ro etates of v a ,-o 3 T )sid 
aepert tipon Accounting qn'toxns and J'othods employed 
aepcrc on ^aikrxtcn <£isxt? " 

States sad Correspondence ro VSace Hatco and Labor 
Conditions 

Seearandwn re t Bonds and teboatttti JosneJ, las 1 im J or 
Guaranteed tgr tho Iiyfiro-~leotrie *>«** Corsnlssioa of 
Oawurio and by controlled and operated companies as 
at octobor Gist, l&O. 

■aanraaftsa, no- Analyaie of Capital leaeta of tho iMro- 
-lcctrla hww Cc*r4 C 3icsi and of controlled and 
operated companies and ay a turns 



o-Electric Inquiry Commission 

mh Enclosure to 



4 



OM»IicCt«l 



jEim 



66 



67 
70 



71 



7? 



73 



74 
73 



76 
77 

78 
79 

60 

61 

ez 

83 

64 

65 

06 
07 
63 

63 
90 

01 

92 

93 

94, 



Letter dated Attest Sth, 19£2, ro rort Credit to at* 

Catharines Radial Icailway and Toronto to Port Credit 

Sa&ial Bal&say 
Incorao Sax He turns - Year 1919 
Ineore Sax Hoturos - Year 1920 
Income Sftx Hetnrns - tear 1921 
Analysis of Expenditure of ^2,043,663*SD (to Slat 

October, 1021} en Sugenla System 
3eport upon General Accounting Oystea 
Letter and 'Statements re rates an<J revoa'co of 

Jfianara and 3ssdell 9 s Systems 
Report upon Accounts of Central Ontario System froia 

fare:: 1, 1916, to October 31, 1D21 
Setail Eeaorandia re General Accounting System 
ttc BBor aa fem re Seraiags of the Electric ^lyaer Company, 

Lirdtcd, and Conpanles controlled by it 
Letter dated August Z2, 19C2 t f;ivi^; liat cf financial and 

other reports restored to tiio Coflastssioa or the Govcrcsaent 
Letter dated October 25, 1922, ro location of bonds of 

§11,360,363 authorised for issue l>y the r^dro-Jlectrio 

2££es'l?ldpDs&j& of Ontario 
Utise'A^ilJovdbber 24th, 1922, re the value of the 

$6,550,000 of debentures issued by the Province 
Letter dated Boreniber 23, 1922, re deficit as at October 

31, 1922, of the Central Ontario iyatca 
Letter dated December 12th, 1922, re rates per horso-pewr 

on suggested oontraet of 10,000 horse-power based on 

contract sndfl at present and one year Lcaco 
iixtraots iron Klsutos of lootings of Cosnnd as loners and 

Agenda tbarefor - Year i9is 
JSxtracts fron Kisates of footings of Consrdss loners and 

agenda therefor - Year 1919 
Sxtraots froa idrates of beatings of Corrdasioners and 

Agenda therefor - Year 1020 
Extracts *roa IttatttOl of lootings of Ccunzrdss loners and 

agenda therefor - tear 1921 
Extracts frcr= Kinatei of lootings of CoEEdscionors and 

Agenda therefor - Year 15 zz 
itameration of the COBstdssioaers 

Heport dated .January 24, 1923, on Jro*>08od ?mdial Kallsays 
lUos&ra systee - Upon ohancee in la v ea te ea t in capital 

assets and sstisiated results fron operations 
General Sopor t on Invectieution of Financial Accornts 
ContrtJL Ontario Systaa - teaon re Option of Certain 

tunicipalitioa to jurchaso Local ^leotric Kyatoos 
XnTOstl-TUion of irovincial Accounts with roforcnoo to 

In tercet Charges on Cash Advances 
LluacEry of froperty Accounts as at October 31, 1922 
atater-ent in respeot of Sinking .unJs (Slaenra Jystara) 
aopert on InvostitfUion of Ins-uranco iioparteent * 



, :H o-Electric Inquiry Commission 

r por Enclosure to 



A??EKi?nc »c» 

COPY 

huso-eleotrio mm COEEXUSIOir 0? OSTCABIO 
ERiX&kSD DSPBSOLLTIOH PJLT23 



{0 .Electric Inquiry Commission 

F or Enclosure to 



SIFiSj 



mtmix *o* 



COM 



mmm>t ocsober 24th, 1922. 



- 212: LIP S OF SQUXP1ISCT - 
S7A2TBAHD DHJaSCIATIOH 2UTS3 



At the present time the rates of depreciation used, for 
tho various systems operated by the Commission, are calculate; on 
the basis of tho life of equipment cad residual value of same, as 
eot out on tho attached sheets, marked "Schedule A", 

At the time {^'(^WdoV to use tbeuo figures, as a basis 
of oaloulatlE£ depreciation ratos for the various systems, the 
Commission's systems hod not been in operation a sufficient length of 
timo for the life of tha various parts of the system to bo deter- 
mined from actual oxpori^oo on the Commission's system, and the 
figures used were taken to inoludo obsolescence and continsoneios, 
ob^olesaencs than beinc consldorod an important factor. It has boon 
found, hoxsver, thnt under actual operatise conditions, as maintained 
on to system on which the various items of equipment are uaeJ, that 
years' life of equipment, as at present sod, are entirely too short, 
aud based on our o-vn knoalodtfo, pained from actual oxporionoo, it has 
been decided to rocommamd that the depreciation ratei used for tho various 
systems be revised and calculated on tho basis of tho octimated years' 
life of various items of equipment inoludod in these systems, as net 



io-Electric Inquiry Commission m % m APHSffiXX '•S* 

t R Enclosure to 



out in the attached sheets, eaarfaed *$obadula 8*, 

I would call your attonti os to tha t&ot that* In t&yay oases ♦ 
it baa aaea fours! advisable tc use »u lit or ease Is the li^o of equip* 
stent over sad above the year** li la bow bo J tag usci in calculating 
(Sopreclatioa on the various tryst osw* 1 bollevo, hd^ordr» that 
the figures eot cot ia Subtotal* *B*» att&ifted hereto v are gaits oon«* 
oervativo* in view of trie fact that owiȣ to the aivanoenanst in the 
art of eloetrla power generation* tr&asslas ion and distribution &u**~ 
iag the jaat tea yo&ra, las factor of obtoloeoaaoot efcisa vao aofcsi&ered 
la the figures set oat As 1 ^/sT^Efe'V^, is no Imager an important factor 
la ooteraiaiar depreciation ratss of this olasa of sqfuipasat* and I 
voulti* alep joint out that a separate account la sot up is toko caro 
of contingencies, so that the dOpreoiatloa fund do ©a a at fcove to take 
care of ooatinf,*«ui7 I teste* 

I -would, therefore, reooiaa-md that the d&prooi&tion rates 
for tha various aysteas should as calculated on the e^aia oi the figures 
act out ia tho attached sheeto, aasfesd •Goheduls %»• 

I tprold aate yewr last raot loan in connaotian with this aatter. 

I have the h : scour to be, 

Sire, 
Tour obediont servant, 



0SX87 S50IKSK2 
To i- Colonel Sir Adaa Beak, Kt.» 

CJuilrrjin, and -o'*r.i r, sloaers. 



(> Electric inquiry commission 



■aU4.',.>f.V-fV. ..-ft, .fc 



j^saaLfejjjto-g&s 



i^7 96h, imz* 



&B& J1 qj^Ja&i&ua^Maa, fa£J&&*&& 



«wmm>m« 



It#a 



Bui Win?* ( ^rarisf orrsar 9tftS» ) 
Build ix«T» jrinrl tout ting Stt*« } 
Buildings nm (Sams & ^to-sfc.-nts©) ft) 



V*,.*. v»-» # 


St'WciAtMd 


$tl»Ml$fet 


3« ?* P«p, 


Ufa 


Yalta® 


idfca 


Sat* 




& 

/» 


L^r,3i, jS 


i 


eo~ 


* 

20 it 33 


* 


60 


£0 


JU 33 


0*34 


io ) as) 


S3 


3-73 





4 



C*fel«, aflr«lh««d* alusjirraa 
0&fel* f 9f*rh*&4, ot'sol 

OiV-uals 

Cot ^£©3 (Op-araton 1 ) 
Qotnr<3t* t BflBST&X 
Coaarota, £olaa 



COPY 



15 


30 


V67 


r.fio 


T8 


60 


0t£o 


0:09 


75 


W 


0.53 


o:o« 


2D 


10 


4.50 


3,02 


«• 


130 


•V 


« 


«*• 


100 


• 
■M 


♦ 


SO 


25 


£ ?5 


2V 52 


100 


«• 


i:©0 


0:00 


CO 


- 


2.00 


0.60 



rr»3t "yetssj, ratisrgrotEBd A liuiholea 50 
Kr A "& % ejwcfrt Rtoraga 100 



2 



l^ri^t, Statlnn, Slooirleal 
Equij-aont, Station* Mwlunlml 
Sxaltort 



.»* 



Fixtvr*** Strsat. Lt»s» 2un. 
i'ltraw, wood 



36z>«d3£r<:iaial>l* 



00 

1.00 



?5 


89 


23 


B 


23 


£0 


m 


100 


10 


•2 


£0 


&5 



a: to 

3.^0 



9".eo 



0:66 

0.03 



1.92 



G:i6 
3.H 7 



>.Electric Inquiry Commission 

b Enclosure to 

JBJl£J . 



tasaima w a") 



Itosa 



Gonsr::tor» & Sxoitors 
Gat a I' cm 36 

Houses (operator 3* J 
Houso eatars 



Years' 
1AU 



25 
50 



no 

20 



Sasidnal 
Value 



'.■i 



SO 



£5 
5 



Straight s.P. Sep. 
lino Rats 

irii«i wwwbwwmw— ■— w— fa— wf— 



#20 



2-00 



3.75 
4.75 



i:92 

0.65 



^32 

3.19 



Insulators* H»2« * 
Inralutora, U f« * 
Iron £ Stool (Mis3&) 



8 
12 

SO 



5 



12:50 
8*33 

3-17 



10.' 65 
6".fcS 
1.69 



Lands for star&ga 

L«U3d3 lor E.T. 2a»or Li 1 



COPY 



Jfr 



liters, ssrvi^o, Hon* 

&«2h:mi<ial Bqulp. Utns 



J? onstooJcs, stool 

Xiro t WOOd OtSVO 

Power iiouso, building 
iola Lin as {-eithout oablo) 
Pol 48, wood 

loloc, oonortsto 

Ha^o, ?ail 

Mrfct-of-asy, ii:?.'riae. Linos 

air-hi-af-Say, L. f. * ls Linos 

a 

Sites, storaga 
Sites, station 
Btssl & Iron (Miso) 
tfurro larks (stool J 
Street Lt- Fixtures (Xtm. ) 
BtflP Logs, tiabar, eta. 



Tfan-Depr so labia 
Kon-Djp reel able 



SO 


5 




4-' 73 


£5 


5 




3. CO 


50 


3* 




• 

r.84 


20 


2.5 




4-ea 


50 


7 




V.Q6 


16 


5 




5:94 


Id 


5 




5:94 


50 


** 




2.00 


m 


100 








. Eon— T >9T>r 


00 lab Is 


«• 


100 








Ecn-Sej>rooiabl 


• 


- 


10 




if 


30 


5 




3-* 17 


50 


10 




liO) 


10 


2 




9-eo 


£5 


5 




3. GO 



z: 19 



«.♦ 



20 



0: 60 
3:27 
0161 
4-*35 
4*35 
0*65 



Hit 

0:59 
o.'ie 
2.20 



l-o-Electric Inquiry Commission 

f0 R Enclosure to 



■ j — j — .1 > i *• «*■« 



i&mmju&i 



Itoa 



WJMB I WM— 



Yoara • 
Ufa 



aosldual 

Villus 
5* 

Ma— aw— — i 



3t2*ai{$it 

Lino 
Pern. $ 



3. F* Dep, 
Hats 



1- 

Vurbines, Governors, etc* 

Vovere, stoil, transmission 

Telephone lino oc^lote on 

Crsa polos Ilia^ara 
Sailraoo 

'Jransforniar:*, station 
transformers, sonrioQ/pole tvpo 
rir.bor, stop lors, eto. 



as 

£0 



12 



25 

£5 



U 

lln\ e rgraxad aablo 

Underground loiot 

* 

I- 

Valves 



Wood poles 

^ood atop lors, eto» 

Toed stave pipe 

?lre, stool * 

-iro, " 'oathorproof (*\m. ) 



COPY 



15 

50 



25 



16 
25 
20 
SO 
30 



5 
5 

10 

100 

20 

20 

5 



5 
5* 

2 
10 

30 



,:.8 



3: 60 
1-90 

7.50 



3**20 


4:00 


3- 00 


* 


4:67 


2-00 


• 


3-60 


• 


5:94 


£80 


4-03 


4.' 50 



2- Z3 



2.' 28 

* 

5.99 

• 

1*92 
2*. 69 
2.20 



&5Q 
C66 



2.20 



4*35 
& 20 
3.' 27 

3-02 
1-23 



io-Electric Inquiry Commission 

F or Enclosure to 

: 

flJLLI 



i&&?zvm h b»j 






Ik«3 



SSK=S^T33=S3Sr 




Tears* 

Lira 




J* 

Buildings* TfBEsforiaar Stat I as 

Bo i Id I nns , J>i at r ilmt lag Statl o ea 

Build iflga 4 Fraaa, Bans* & sto 'shoueo 

Bu i 1 d lag i , 3ao - 1 Iron 

Buildings, 0; arators' Cottages 

Balldliag8 t ?o»«r Ho us a Brisk 

Baildiagtf Iot. Hao- Oo*£ra/a 

Jl % 

Cable, Undarrrwnxd 

Cnble, Gonfttntar, Overhead ♦ttoppaF 

CVbla, Condi Overhead* Alua* 

-"bio. Goad* Overhead* Stool 
Canals 

Clearing 

Qottages, 0parator3* 

Cor. :ret 3, Geroral 

Oonorota, Toloa 

Boot System, Crriorrroimd ■ Saafcoles 
Baas, touarete, i^oioXoroad 

Dana, 3 one rate. Base 
"0a*3a , ..-.rtn 
Baas, riaber 

* 
[Ultiaant Station, --lvitrioM 
( zsept Tranaf. Oae- & -x- ) 

1 •'•-.' sent Station, XeobaaJeal 

a?; »a 

£xsaYatiag 



I i ituros. Strast Ltg- 1*10* 
Flttae, ?ood 



75 
60 
50 
80 

50 
75 

100 



SO 

100 
75 
20- 

ixdr* 

60 

100 

50 



100 

100' 

lafJ 

Inf. 
20 



10 

10 
10 



10 

6 



JSfi 

CO 

40 

5 

100 

100 

10 



100 

100 



Strair-hf 
Lira pap. 



r»ao 

I'-no 
I'.eo 

4" 75 
It 00 
1127 

0-95 



2 J 50 

0:50 
0-fiO 

4* 75 



It 60 

1*00 
£. 00 



1*00 

1.00 



5.00 



g»F.* 
L : apzt> 



33 



o:ao 

0-30 
0-'59 
3'. 19 
0*59 
0: 21 
0.00 



1:34 

Q'0-% 
0*. L5 
2-19 



0*59 

0* 03 
0.66 



o;oc 

0-08 



Z- 36 



35 


10 




r>? 


i: 


a 9 


25 


3 


a: 


71 


i* 


29 




10 


1- 


• 


-v 




Inf. 


DO 










50 
20 


*8 


1 

4: 


73 


• 
5.* 


19 


2-8 


4. 


a7 


3. 


27 



:o.Electric Inquiry Commission 

f oa Enclosure to 

* 

2 Q, .? . 1 



(ttSss&TOs u b«) 



isigrs ^u iiM'ggTff ■■ 






Gin >?atora & &*jifcor» 

« 

hriioos, Operators' 

BoBsa Patera 

Rydratilla irabstrxoturaa 



Yaara* 
Lift 



:x,&~ .j-rasgg 



5? 



50 

ICO 



Hesittual 
7&iua 



* 



straight" 
&l3*a Dop' 



.- 



Do: n* 



^:a.v STfrr rfffi 



:-a,- ^.v an— a—jBsas 



10 



20 
5 



l-eo 



l.'QO 
l f .90 
l*O0 



0-03 



0-03 
0.'62 

o«os 



Insulator a* foapanaioa ^j© 
Insulator a, fr'la T^po 

r ' "" ■" copy 

Urals, for atoraga, SttgaalA 

La rd s , i: iogar a , £ . t» Ht • -O f«4P!ay 
l«ads t other than ^"bcva 



13 
15 
SO 






ttatara, sarrloa •*&&!• 

l-:'och;i::iaal Squlp. Eftatlom 



f ana took*, sts*l 
Hpa« ooa sta7o * 

Xowar Hovaa Stfparatroot* Brlafc 
>onr Housa Ssparatruot. Otaaret* 

& -tone 
Pol* Llnaa (7itl:o*jt aandtstor) 
iol^a, <?ood 
- ; oi38, oonorata 

a- 

Zac<a 4 Staal St/ j a 5t f# i Qataa 

• ' t-o*-\7ay, >:•:• lIm 

U ;-of-:^ay f ot:. ? timq ^to 

iia 



Inf. 



50 
35 



50 

as 

?3 

100 

2-0 
CO 
60 



SO 



5 



6.' 67 
16 



£ 



Eoij-Daprao labia 
Ko^-Daproo labia 
100 



s 

5 



# 5 

2.5 

5 



5 

5 

10 



1*90 
£«71 



I'.OO 

3*90 
1-17 

0:95 

4." 73 
4T30 

2.00 



B 



"•Topraoiaala 

1 

100 



•~» J') 



4.99 

4*99 
V69 



0' 


62 


1. 


29 


• 




0: 


62 


ti 


54 


Or 

| 


£1 


0\ 


00 


2- 


19 


ot 


00 


0. 


6G 



0.62 



o-Electric Inquiry Commission 

or Enclosure to 

$JL2~X 



(30ir:Ci>UL.3 rt 3") 



•■MIMMMH 



It«a 



Ltfa 



Itosidteal 

Valuo 



Straif>~&t* 

Una -'op. 







Eitos, Storage, :-^jp:onia 

Cites, station 

Steal & Iron Misc. 

Surra Tanka 

Dtr^it Ugbt "FixtxirGS, ^Ras». 

Stop Logs* ^ino^r aatea* ©to. 



Turbine f Gor^riior-, oto» 
5tanrara« *it<*«} Srans&dLsaloa 
Selcphona mIjio Coa^lata 

I^i c.ura Systan 
Tall race 
Trail b f oraor s , Stat Inn 
7ra&afaraars 9 Sarvlaa la^s* eto» 
Tinibor, Stop Lo~a» ©to. 



Ua£ or? round, <Jr.ble 
Ondargponada Etzst 

I" 

Valves, Feast aika, T luxvror & 
Butterfly 

Yalvon, Feneto^ks, Gate 



~OOu i 0l©9 * 

V'oocl I ol<» Line* (vitfcoat Oana. ) 

>Od itOp LO^j (*lthOnt D(!Ud. ) 
00 i St iva lip© 

srire, itu»l Qeaiaetar 

Tir«, weatherproof sopper [ana* J 



V 


ffea-Dep 


r oo labia 






Inf. 


100 




• 


• 


.10 


5 




3*16 


i:&9 


5fl 


10 




l'eo 


o'.m 


20 


5 




4*75 


s: is 


88 


5 




3« SO 


£. 23 


50 


5 




• 
1*90 


• 
0*62 


50 


5 




1-90 

• 


0-62 

* 


Atf 


20 




4.00 


2-69 


knt. 


100 




* 


* 


50 


15 




1.'70 


0*.5G 


40 


15 




2*12 


0'GS 


25 


5 




3- SO 


2-23 


30 


25 




• 
2 # 50 


• 
1*34 


100 


*• 




LOO 


0.00 



50 


2 


1*90 


0*62 


35 


5 


2.71 


1- 29 


0) 


10 


• 
4:50 


3:02 


20 


5 


4'- 75 


3*. 19 


26 


*5 


3: 00 


2' 2a 


25 


2.5 


3.' 00 


2*1*4 


20 


5 


4*75 


3*19 


60 


SO 


1»40 


0.46 



so-Electric Inquiry Commission 

f0 r Enclosure to 



AK-sinsxs »iy 



COPY 



PHCJCIPAI. CKABAC2^EIS?IC3 0? H.3.P.C. ELAITC3 









I tarn Elpiasfetg 



■ vj Ai .'teatrf A i i. A i i n 1 1 > aria t LjLa4 auaaL«J.C „... «s-s , * ,»,■ if . ■— -n y^.-M. . ^ 

1 5a*e ef River*******************,*,**, ,*,.*•• . »•**•»+»• ~oath . M 

£ D*ainafe Area, &}T2a-*e ''Hat • ••*•*••••«. •••••«*••••••••••*•*#••»•*.. 294 »*J 

8 t&niaca S*reeipitation par Ajjjr;^ i»ohe* •.*••*••*•**••««••*•»»•*••* 30.9 J 

4 Heaa Frdoipltation pe* Anmsa. Isshea ..•.♦•..•♦♦•..•.*..,...♦*♦•.♦. 54*4 1 

- 

' 6 Kiaima 3u»~of f per s&nth, Oueio ieet p«r ^eaaad. *••**•••••••••♦•«« G2 

6 J*oaa Btas-off par Ambuss* Cable F»«t x>$* 8*ao»a««***>#»*»»»»*«##»«#**« 4S0 < 

7 furMne Hea5, Uinlsua, Feet •••«*«*«••*•*••*••«••*•*••••«••••*»«••• 63 

6 'ihir'bliis ":vj&jfi, *J& < i..-o. £\ ( ct»**««****«*««*.**» •«••*••*« ••,••••••*•*»..•• $0 (l.| 

$ tears of Iraciplt&tlon ^eaorda.**. •«*••«*•.•*•••*•*•««••«»**••••*. *1916 to 1921/ 

10 Yearg of Gagging »ieoords»*********************.*«*****«». ••••••••• .1314 to l$;:l» 

11 Tate? Horse lower. &•■&••«•*+•*• »*•*••••»••*.*•*•••*••»••••••• 4*300 

12 "ater Storage* millers 'Table Foot*. .•*.* *•..*•. *..♦... 9S5 



« 



< 






13 Turbine* t 

Efcrfcer «u»i Sating of eaeh t Ko?se lower* *«•••••«•••♦•••*•* G 1,100 

1 1,400 

Total Iix-Jtallod Anting*, 2'orse rower »•«•*••••• »•••• £,5?0 .♦ 

14 GoiKsrators, 

Ifts&er and Rating of each* Xllov&tts* »•«••«•*»«••••••••• 1 ' 450 m 

1 1,030 
?otal Installed Sating, Kilowatts*. *...*.•♦•••♦• «*•*.*•«•••«• 1,500 •< 

15 Vransformsrs, 

tteacor and ?.&tiiVT of e&eh, Xllo~7olt-»A.~3-oret**»*« ,*••«•« 3 > 900 •« 

?otul Installs Rating*, Ailo^'/olt-^oroa. •••••♦. ••••••••••••♦ 2,700 • » 

16 Voltage of Ontpnt**.** *,,«•••«••„ 1:2,000 • « 

17 Frequency, Cyelco**. ..*..*.*, »«« ,••••••••*••..«*••*« CO •« 

10 Overall if iioiorvoy of Plant** •♦...*. • C0,» ** 



. 



i 



(1) 

HSSTIEB EAT STBSB VDSZDK4 03328 BISSAU WBS* 

S Mfc« . . South rails Eich Falls Cftrloton riace. 






L RMfl **m:a oosEzisargg as a? si?oa s slat. 1921 

r— " ' 

>... Kipirom *.**.**...«*«« S2»8teoica ••••...••».«»». Mississippi .....Hiasiasippi 

L« 9,100 ..... ♦..♦**•* 677 . 450 ......... 1,150 

..... 16.6 ,......*....•*** S5.0 • 31,5 ........ •• Sl*5 

L ### 23.0 ♦ 41.5 ....♦.•. .♦♦ ♦♦• 35,0 ..•»..,«,. 3S.0 

M ... 5,7.; 3 .......... SOS »#•«*•«,«•.*•.•« 9$ •••»»*.,•• 303 

L... 6,500 ...... 905 ••..*••.•,• 513 .......... 1,131 

>.... 73 *» • ••*•♦* n ..... 9 

L„ 78 103 78 .......... 10»5 

1373 to 1920...... ..1877 to 1920 1315 to 1919 ...,1918 to 1919 



,1*05 to 1921 ....1915 to 1$£0..... 1*15 to 1925 1913 to 1921 

57,600 .•••••..12,100 ••«.....«•••««•• 4*030 ............ 1,390 



... 209,0£5 ............... 1,050 ....... ......... 2,620 3,500 

. 2 12,500 •♦•••....... .1 « 730 .♦... ......3 1,£00 ......... ..3 £40 

1 G 1*000 

. ii3,000 • 1,700 ............... 2,600 735 

LlC 0,500 1 :'J 4 Ci $50 • ,14 150 

l c 600 i « 700 i e 00 

17,000 .....•••....••• no ............... 8,100 »• i 400 

4C 0X00 ••.....••..♦.♦3 400 •••••3" 7B0 .......... .3 t I&O 

32,000 1,£X> 2,210 750 

1 ajar* 

110,000 •. 22,000 ••••••••.•• 26,400 ........... 26,400 

60 60 60 60 

SO;- 60i • 753 .. G0$ 



OEKTEAI 



_. Fenalon Falls Auburn 

Ham 



HYDRAULIC CHARACTERISTICS OF THE! PLAITS OF T~3 HTDRO - 

1 ITame of River Sturgeon Otanabea.. t 

2 Drainage Area, Square Miles 1,235 2,800... 

3 Minimum Precipitation per Annum, Inches 23.1.« 23.1. 

4 Mean Precipitation per Annum, Inche s 2 .3 32.3. 

5 Minimum Run-of f per Month, Cubic Feet per Seeand.#250 #750... 

6 Mean Run-off Per Annum, Cubic Feet per Second # #.., 

7 Turbine Head, Minimum, Feet 22.5 17.5. 

6 Turbine Head, Mean, F e et. ......... ..,. 22.5..., 17.5,. 

9 Tears of Precipitation Records 1883 to 1914 1883to 191 

I 

10 Years of Gauging Records , 1911 to 1921 1911 to 19 \ 

i 

11 tfater Eorse Power, Mean.. $ ..... *,.., 

< 

12 Water Storage, Million Cubic F e et 3,500 3,500 ... 



Note:- Items marked thus,#, indicate that 

P0T3R CHARACTERISTICS AITD S^UIPMSIT? 0? THS PLAINS OF TEE 



13 Turbines, 

Humber and Rating of each, K rse Power. ...2 C 500 3 950... 



' 






Total Installed Rating, Horse Power 1, 000 2,850.... 

14 Generators, 

number amd Rating of each, Kilowatts 2 C350 3 © 500.... 

fotal Installed Rating, Kilowatts 700 1,500... 

15 Transformers, 

ITumber and Rating of each, Kilo-Volt-Amperes. 

_ . , _ 7© 135 2 ( 1,875.... 

Total Installed Rating, Kilo-Volt-Anperes 945 3,750...- 

,- - - . 1 spare 

16 Voltage of Output 11,000 6,600 and 2,400... 

i« ».—. n_, t0 44,000 

17 Frequency, Cycles 60 CO...- 

18 Overall Effi ienoy of Plant ft** 8?' 



ONTARIO. SYSTEM 



(2) 



Heal 67 Falls 



Campfcellford 



Ranney Falls 



Frankford 



Trent on. 



...32.3 
.$820 



el:ot:-jo potter goliiissiqit as at October gist. 1921 . 

Eraa * : «*«* Trent Trent Trent. 

3 » 500 4,200 4,200 4,6)0 4,800 

2 3 ' 1 23.1 23.1 23.1 23.1 

32.3 32.3 32.3 32.3 

#750 #820 #820 #820 

#1200 # 1,400 # | 

74 22.5 47 17 18.6 

74 22.5 54 17 18.6 

188 3 to 1921 1883 to 1914 1883 to 1914.. 1883 to 1914.. 1363 tol914 

1911 to 1921 1911 to 1921 1911 to 1921. .1911 to 1921..1911to 1921 

#10,100 # #8,600 # # 

3 » 500 3,500 3,500 3,500 3,500 

flow is regulated ^ the Department of Railways and Canads of Canada 
HYPRO-n^CTRIO POTT* COlCHSSIOff AS AT OOTOggg 31st . 1921. 



• 3 c 5,600 5 © 1,100 2 C 5,000Summer 4 O 1,200. ...4 e 1,400 

2 © 5,5007in1;er 

16,800 5,500 lO.OOOSummer 4,800 5,600 

ll,000T,'inter 

1 3 G 3,000 5 © 600 2 3, 600 Summer 4 6 650 4 G 750 

2 C 4, 25077inter 

• .. ......... 9,000 3,000. 7,200Surmer 2,600... 3,000 

8,500 ',/inter 



3 3,750 4 € 1,125 

■ • 11,250 4,500. 



2 4,600, 
... 9,000. 



Hone... 3 r 3,000 
Hone 9,000 



44,000 44,000, 

.60 60, 



44,000 6,600 6,600 

to 44,000 
• •..60 60 60 



852. 



• • • • tO^, 



85^. 



62^, 



.82^ 



r i a a a a a 

Ontario ~o*er Co* .rindale 
Itea 

■■i ■■ .1 1 1 — | —ana—— «■ i — ^— n — — —a —a— — — 1 1 i — i ■ — — i — — ^ ^ 

HYDHAELX3 QEARAGTSaXStXva OF TBI FLA5T3 OF ?HS !-X:30 ~ 

1 Eaao of 3ivor. •....•.#... ria^ara.... ........ Gr*dit««««j 

2 Drainage Area, Square -ilos #263,440 •••• 450...... 

3 l-Jini/ram Treoipitatlcm per Atjijua, Inches., •••••ITot ^elerant. .»•••.. ..26. 8.... 

4 Hoan Precipitation per Aumun, Inohes.*. »••••• .Eot 8olevcnt» ••• ♦..••32.2.. ... 

5 Hlnisura Hun-off per l^onth, Oubio Post per 

Second. Hot Halevant •••••• ........TO...., 



6 Uean 3un-off per Annus, Cubia Foot per Second. 3ot Reliant. ••••• •••305».»»». 

7 Turbine I'e&d, ^inirtraa, I'-jot •«•«•• ...•.175. ♦....♦• !:ot A s osrtaii 

6 Turbine Head, Ucan, Feet. 180 about .50, latterly : 

9 Tear* of Free lpl tat ion Heoords........ rot Relevant. ♦...•••••18Q3 to 1920.. 

19 Tears of Gauging Records ••••••••••••••Hot ^elo-vnat ••••. 1914 to 1920.* 

11 vator Horse Tower, Sean. ,..,...250,000............. 2,450....... 

12 '«&ter storage, Million Cubio Feet»« •••••••••••Hot Helevont.. ....... .none at prose* 

po^a 0T^nA07-:ur?igp axd •: s iraggg or t.'i tiajttc or rre 



13 Turbines, Y ,; 11,800 

ITuajber and Satin* of each, Horse lower,. ,...5 Q 15,000. •• Z C 840.. 

2 • 16,000 

Z C 18,000 
Total Installed Hating, Horse rower ....225,600 • .1,000 

14 Generators, 3 O 7,500 

Sumbsr a~-d Ratine: of oa-xh, Kilowatts... ••.•!! ' 3,776 • 2 600.,.., 

2 .15,000 
total Installed Hating, mie-watts.... 149,036.. ..1,200 



15 Transformers, 

;;uabor arid Sating o f ©ach, Kilo-Volt-AraporeslS 9 3,000 rone... 

Total Installed Rating, Kilo-Volt-Amparsf 04,000. • .'one... 

16 Yoltage of Output 60,000, 50,000,32,000 13 f 200 < 

and 2,200 

17 ire^uoncy, Cyolos ••• 25. • ••..... 60., 

18 Overall Cffioiency of ) lant 00,4 02,1 



3 X 3 ? S M J0R5HSHH BISUSJI 



>uoenstorr-.':hip*i)a\3ra Eugwda Saadsll's Big Chit o 

5 Vnita 

' — — i' - -r- ■'■"'" ■ —— Ma— ■ i ———a— — " j ——a— — ■ wmaamsmmmmmmuemmBm i ■ ■ — — — — — 

-L-.G77.io -o 'Qt co'Sft 1 " r-?r A3 a? orrres?!* gist. 19£1. 

*•• ■ I II 

• • «Kl agar a ,.•«••«•••.••••••»..« itaavar ••••••»••«•« Soy ow .............. Severn 



263,440 ....♦♦. 76 . 2,075.... •..2,265 

...Sot Hoiovant.. ♦ ••••••••54»*»"* # V •••♦••24*2 ♦••24.3 

...Eot ilelOYar.t.... .♦..37. 8.. ...... .....32.4 32.3 

L.Bot Hal^vant.... •• 60.. 1,000 1,000 

...Hot a«levant...« .........83 ....2,000.... 2,500 

, 296 about... .......5X5...... ..9 .....56 

, 305 about .•••••••••524 ... 12. .56 

( ...3ot Helavant •1916 to 1921 1873 to 1916 1873 to 1916 

....Hot HaisYant.... 1913 to 19a 1913 to 1910 1913 to 1918 

300,000 about.. 5,240...... 2,730 • .15,900 

....Hot Kelovaat..*. •••••740 .16,500 16,500 

i 

j eyiro-':l ???iq jo^?. gBJESSSES as at 2SSS13 si«t, 1921 . 

...0 © 55,000. on. order. ..... . 2 6 2,250 a C600 3.C 1,300 

1 < 4.000 1 Q 2,300 

300,000 about... 8,500.. ••..•1,200 6,300 

.••5 P 36,000 os oftUr 2 1,200 • 2 f- 320. .3 720 

1 2,400 1 C 1,200 
160,000 about 4,000 • 640 3,440 



..15 15,000 on order... ..•••6 900...... ..7 r 150 ♦.•7 G 600 

...... .225,0 .0 about 6,400*. 1,050.... 4,200 

1 s-aro 1 r to 
h. .12,000 to 110,000 •••22*000 .22,000 22,000 

25 • ; 60 60 60 

90« about 65,5 80jb 02;? 



n?i33iKG :-rj?ar 



its nipi=«i^ 

— — amm ta— — — b— a— — i — r 1 ; - T « ' « ■ v 1 ■ "■ — — — 



HISTORICAL DA?A «H) 3API7AL COSTS OF 5HB PLAITTS OF TIB 



19 HaxSnaaR Soaand in 1921, Xilcjratts. , ....... 1,265 ....« 

20 Lead Factor for Ygar 1921 . ........ 49*l;S..« 

21 Output for 1921, Average, Kilowatts... . ... ....630.....« 

22 lower i&otor Limits*. •••••• »•«»••••••••••••••••«••••••••••« 85,k 92/S , 

23 Ooaatrootlon Year. ...••• «..»,,..• , »••••••••••• 1910 to 1911. « 

24 Extension Tear. ....... , , 1920 to 19:21. . 

25 Purohasa Year. ........ ...1916 

26 Present Owner. ......................... ...Ontario...* 

27 Capital Cost, Lands and 3b tor ;U f: hts. « ^31,324 * 

20 Capital Cost, Panig and "Tater Structures...... ...........$121,455 ....< 

29 Capital Cost, Xo*er House....... .......,; 23,577 

30 Capital Cost, Equipment...... • 104, Z50 < 

31 Capital Cost, Intangible Assets ..... v 37,6C1 

32 Capital Coat, Total . V 3S3,297..... « 

33 Capital Coat per Horse ?owor, 1921, Average Output ..«•.••••* 309... ♦♦« 

34 Capital Cost per Horse lower, Turbine Rating .. % :....147 < 



(4) 



ssorosft a*r srsTsa atmoja stbash 



SIDEAE ST*:uS3l 



2 Unitg ^^ Falls Hi^h Falla 



:SSES3R3rS 



Jarloton Msoo. 



HY^O-"L- gyilO 3-QT21 OOgglgflgg A3 AT fr3?01£1j ^ l8 *» 1**1. 



.«••« .9,600. .... 4«#.« ....... ,1, 056. ... . 1 irrr 

• * It375.... ..Hot Operating 

....... ••40. 8>« •••••« ••50.0$..,..... «j #-r 

»••♦•»••. .o<«.& f? .». # .. # .„.,, t Operating 

3 ' 920 637 — «o rcqp^ttae 

.. .78.i; to 10* 72.1 to 79;J 40,1 to 75* *, ^^ 



• W19 to 1921. .1915 to 1916 1919, 

' :oX10 •••• 1915 to 1016 2rono< 



.1910 

ins 



"■" ™* ma .. 19ao 

1 H.B.P.C ....H.E.r.C..... K. : .? 

,'- Inomod ln It8a2fl V17.524. U 0, 4 70 $ i,, 275 , 

|e« a va.aH 452,923 .279,507 ^ ir f45 o 

" 537 ' 9£3 *»•»" .840.TW » »,<„ 

'** 940 ' 955 **.«« S1M.T11 j 1 M 64 

** E<m ° •••«•»- | Eon * rono 

•v5.657.974 .140,321 695,414 $60,071 

' 1 * 073 • *" * 1.064 Eot Oporotlnp 

K C6 • " 3 193 not Cretins 



1 S 7 H A L 



Itsa Panel -n Falle Auburn 



Hisjoaxajo. data ass qxpxzax sosss 01 ras platts oy 



19 ^axiJORta Do'3^Ed in 1921, Kilowatts...* ......... .,700 .. 2,000..... 

20 Load Paotor for Yoar 1021 , 57i 66,1. ..c 






21 Output for 1921, Avararo, gllovattfl ..... ..400 .1,320 

22 lower Factor Limits • ..£0^ to 90$ 50,1 to 90.' . 

23 Construction tear........ ... .♦•».. .1099... 1911 to 19li 

£4 Start en 3 ion Toar ♦ ................... * • Bone • .Ebne. • . • « 

25 Purchase Toar ♦ •• • •••••••••.••«.. 1016........ 1916 

26 lYeaont Ovnor »..,......•• Ont ario Cntari o 

27 Capital Cost, Lands and «*t*r Sight!. $ 23 e S95..«# v 23,140 .... 

23 Capital 3ost, Pataa and Vater Structural $ 1,426... ......it 50,543 

29 Capital Coat, roror Boizai § 3,130.. .♦.. ...,;116, 103.. ... 

50 Capital Coat, Equipiaant......... .........^ 43,C04.. ... »•••$ B9,624...-< 

51 Capital -oat. Intangible Aaaeta.. ..£150,000 ,127,500....* 

32 Capital Coot, Total...... £226,555.... v 416,910... .. 

33 Capital Cost per Foroe ~owor, 1921, Average 

Output..... § 442 *j 233...- 

34 Capital Cost par For a© Power, ?urbine Fiating. . .. •• * 227...... ... y 146.... 



(5) 



H ? A H 2 STSfSl 



Eoaley iall, Caqpbrtlford Harney FalU Frankfort fronton 



?*?■: RYj:^w:LSora3 rcrzH cp&ii^io!: as a? o.^osga gmt t 1021. 



i. . «••••• 12, 300 • •• •••••••« . • .3, ICOt . ••*«••*•«, .rono.. »*««»»*•£ fifi^ 



,8 °* ■* Kon9 , 



4,000 

....513 



3 ' 690 MOO !*,«,„ i f4M a>M0 

"* t0 *# «°* * »* ■■* »<> **.....»* to 90* .50? to9 0;« 

ww t0 m * ww mo to vm ins isn 

m9 rea0 *»■* Kono Sono 

1916 .1914 



."0119..... 191 6 1916 

0ntarl, > 0nterl ° Ort«rt. Ontario Ontario 

"' $ 9,7 ° 8 * 2 ' 979 $37,800 $ 2,18,, ...$ M , We 

...£875,204 44,830 |My, 8 00 « 70,251........$ 45,203 

... £147,303 « 68,189........ ,567, 850 $ 21,439 J 31,1598 

•••**•«« * 172 - 687 *«66,650 au, m n41t40Q 

, "^ £5 '° 00 v 100 ' 000 W»,000 4125,000 -125,000 

'* 1,518 ' m - SOa ' teS $1.695,300 - m , iz6 ;356f027 



806 * wi * r on9 r, 



WO $ igo 

90 * n * 170 * 77 i M 



U&g^^^&±^^*'' 



-^. -.-^-fl. ■ ^^.ufai-i 



5IA5AHA 



Xtas Ontario lasrsr Co. Zrindalo 

ii mi 111 'i i ll ■ i i ii ■ i ii 111 i i ii ■ —i i ■ i h i ii i i ""i ■!■■ i i 1 1 i n 1 " 1 ™q- i ■■ " ' — ■<»»■■— g«ga=B«gg Eg=c— a=a^t 



BX3TQIUCA1 D\?\ K ~ID 3APITAX ?^37S OF ?E5 PIA3TS <*■? gH8 






19 Jlaxiraam Donsand in 1921, /rilaratta.. ....... 143, GOO.... ....... -6SO. ...... 

20 Load i'&otor for Ysar 1921 ..... ,.„63.2-£..........66,£ J 

21 Ontpnt for 1921, AY?ra?r-3, Xilcvatta.... . .... ........94,000............453....... 

22 ?o*or xaotor Lirrdta .....G1.5,* to 87j£.....90 : ;' to 95"... 

28 Construction Year «...,..,. . 1902 to 1905 ..1310 j 

24 ^rtciiBion Yorir. ...... ................... ..••••..1906 to 1919 .Fono.. 

25 Furohaao Year. . . ♦ .1917 1917. •....• 

26 Present Ovmer. ........ ......... ....Ontario. •••♦.. .".S I C 

27 Capital Cost, land* and Vatar Hi^ta ...Ixsoludod in Itaa 20L..In3lulod In XU 

28 Capital Co3t, ^aaa and <*atar Straoturoa $ 5,927,193. •*•••£ 36,253 « 

29 Capital Cost, POWW liousa .................... ..v 2,074,566. ...♦•$• 3,557. .....< 

50 Capital 3oat, ^quir.aant. ........ ..^ 3,232,306...*. .v 52,152 

81 Capital 0o3t, Intangiblo Asoot* • .,10,000, 030 v BO»Sj......j 

52 Capital Cost, Total * y22,034.0C5.. .♦«.* 91,942 



33 Capital Coat por Eorao lower, 1921, Avoraga 

Ontput... • ^ 175. .....v 504. 



34 Capital Coat per Horca lower, TurMne B&tina>...| 98. .....£ 55 ♦ 



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srrao-SL rue ro~" q-'ararsrsr as as o v .v^-~? rist. 1921. 



, ..., .•.lone, ....... 4,£2G... . ♦. ..060... ...... 4,300 

.«.««..««.».». • Hon 9. ••.••••••••••» ♦ • 3o»l •>• «.»*•*.*•*. . 49.7J&. .».««.....,» » .41.3^ 

L ,.,... 5one»... •••••.••• 1,550.,...,, 427.... 1,780 

...., Hot Xnoisn........ .46,1 to 98,1 00> to 100$ 84> to 99$ 

...,.1917 to 1923 1914 to 1915. ..... .1913 to 1914.. ...... .#1900 

Hoaa, .......... .1917 to 1910. ..Kono.... ..1?13 to 1919 

Kot Hal^ant 1914 .1913... 1914 

.. # ,H.E I .0. ...... »...S V: ? 0.. ••»*•*»« .H.3.P.C.... .1! 11 P.0» 



......... Hot 2ata*li3h3&...$..127 f 284 

,. Tot I>staoli£ii3<J...$ 439,790. 

.........ret ^staDlisrsd...^ 14*1,702, 

....... •ESct ^ataDlishod...* 273,416, 

••••.Hot ';ataUiskefi...v Toco, 









8,140 .........0 1,540 

19,083 4 143,365 

50, 110... .......£ 57,646 

6-4,544.... ..... -v 325,190 

Fono.. | 124,011 



,.•••• Spt 2»taW1th>d»»»| ?90,273 141,865..... g 652,252 



rot Established...^ 

»«•••« TTot • stablisbod...$ 



476, 
116, 



4 



249, 
110, 



4 







272 
100 



riPlSSlUS 5T3BEH 



Item Eipissingr 

ML&.J a « a a saaaaBeaaaeaaaa sa sa ■, , ' ■■ ■ '■; '■ ■■ ■ ■ ■ sa ■"- a *■ --'■"- ' ■ ■■ ■' ■ ■ -i 

OFu3A?irO AID BBIf XS?1S F?3 1921 FOR ffi P LflTg3 0? 

■■ ■ I. ■ ii i n . . i. . . ■ .« 

25 Oporatin^ Oost, Labour, and. .............. . ».««•»••«•«•*•• .,♦......< 

36 Operating Cost* Ihtorial.. •%•••••+•••»•••*•»•••*•$ 9,450.. ♦ ♦....< 

37 i&intomnse, including Taxes , £>opr soiation, ct3... ...... .••«••••$ 4,933«.# 

33 Jtunialpal Sxpans©., ...... .... «.« ....$ Koi»». ...••• 

59 Fixed CHar^os. ..».«.«««•...»«.«««».««•.»»...•«>.....•««»..«««.* • % X j * CGO. ••••••« 

40 ?otal Operating rponse. ................................. . .$30, 113.. • .• ... 

41 Operating Cost, l!inus Fixed Gharfree, per 

Horse Jos^r, 1921, Average Output. ............ •$ 17.40 



42 Operating Coat, -inns risked Ofcargee, par 

Horoo Power, Turbisa ?.at in£. . . . . . •♦..... • ...•* 6.57. 

43 Operating Cost, I Ins Fixe.l Charts, p«sr 

Torse Ic-sor, 1921, Average Output... ...^ 36,30< 

44 Operatic^ Cost, llus Fixed Ghar^ee, per 

Horco rowor, Turbino ?.atin{;. ................ ♦ y 13.65i 



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Eipi^on 



— — — — ■ — ■ « 1 1 . 



2m i! South SMlt HltfiWU Oorl.toi. I1m«. 



iE5 ?nr'-o-^L'^?-;i^ rtnst oegrngg as a? o^oir.n si«t, 1921. 



* u ' m * •••"' 4 ' 862 v 8,234 rot Oporating 

* £ ' 069 v 362 $ i.453 ,. ot op^j^ 



Kot Operating 



i 15,759,. ...♦*•. ...♦....$ 2,S02*..... # 3 2,777 



>$ 452«* •••••». -•••••••*$ 510........ .. .<? 1 on tt„* ~ 

•v m.»,«,^ l t U7U •♦...Tot Operating 

- 157 - 000 « 11 . 2 *1 »«.346 .rot Op.™ttn C 

* 105 ' 601 vW.297 553,933 rot Opmtlag 



$ B * 46 * n '*° $ 16.00 rot Op.ratipg 

* las • 4 - M * 2-94 -rot *«r»ttog 

* 33,!0 9 27.00 $ 02.50 ggj Operating 

$ 7, * :5 * "'OO • ••# 15.00 j; ot Cj-oratlne 



CSRfHAL 



I tan Pene Ion Falls Aubnrn 

M— — — v i : i ^r~rr : ,i x \ 7r .t - uai^* :- gjj'iw>L: i . i i..a3. " ^t.aji; aKj L —a— 1 1 -ir'iT b 1 i — — — — 1 



0T"lA7ira A3D OTIT OO.^S FOR 1921 F03 TES PLAS73 0? 



55 Operating >ost. Labour, and 

36 OporutiKsj dost, tutorial $ 8,737 *..^ 9,522, 

37 Mainten&zMe, including Taxes, r^preolation, eto«..«£ 1,710»..# 4 1,450. 

38 Itonloipal vtv^sa »..««..•»•..... « v rono»#«.... .« v -'ono. 

39 Pixod Charges ♦ . v 12,600 . v £3,160. 

40 Total Operating -xpcmse. ....... ..•• v 20 f 107......... v 34,152, 

41 Operating ?oat, :<Jinns Pixed Ofcargee, per 

Horse lower, 1921, Average Output.... ....... ••••,,? 16.00.... v 6*20. 



42 Operating Cost, Minns Fixed parses, per 

Korsa . o.?or, 'rurbins Ratiag.. ........ ...».. v 7.50.... .....v 5.05.... 

43 Opioratlnrr >ost, 1 lug Flxrvd Charges, j^or 

liorse fever, 1921, Average tatpnt. . 37.50.........^ 19.30.... 



44 Operating Oost, Tina Fixed Charges, tor 

Korgo . ov?or, ?urbire Bating • »*| 20.00.. v 12.00, 



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Heal 07 Fall a C&rspbellfcrd l-.annoy Falls Frarfcford Trtmton 

^ PP-p. uii'iii i inn > " i ii !)■ ' 1 11111 i — ' — — — — ri'i i i i i — « ' r — i t i t i — — — — i — WW i — — — — 

SH3 HYSRO-ELSraiS P0£S3 GO&asSIOK AS A? 0:-?03--r< a«t. 1921* 



,, ;• 40,452. ..... v 18 f 815.»».».»IIot Operating.... .y 16,669......^ 21,874 

L. •••♦•# 4,859......... ...♦$ 4,316 Hot Operating* ••••# 1,106 $ 2,182 

»......<; irons.......* v JJono. ....•• Kone •♦•*•$ Eono......$ ITono 

»......v 64,400. •»...•••.•• • £ 21,650 Tot Operating,. ...£ S0 f 660..*.,. $ 19,860 



,^1S9, 711. ...... § 44,479 rot Operating... ♦.$ 33,705. ..... v 43,916 

>£ 9. ID .....$ 9.50 ffot Operating 9.20..... .£ 0.50 

► v 1.62...... v 4.15 ..rot Operating.. ...0 3.75 | 4.30 

► V 26.30 | 10.50...*. ..rot Operating* ••*»§ 1D.70. ......; 16.05 

.; 4.65 • *f 8.10.. Vet Operating. ••••$ 6*05 f 7.85 



E I 1 G A a A 



Itea Ontario Fewer -*o. rir*iale 

**f ' Baas acancM awasa a—wa— i— bb— a '■■•"*• aaBaaaaaaa— aeai ——a a ewa •--•-•-• vm i --"• " .., ' . '."• , 



OKrUTITTTr »?TD mi? 00373 POH 1921 F<H ?.-:-: ILVlTrS 0? 

|l | l| || | - | I ■ | ■ » l> II I I F II ■■ I II I I Tl — ■ ■ ' I — 1 !—■-..■■■.■- Ill I 

55 Op a rating Cost, Labour, and. ...... •••*..•••••..»••••.•»«• ........... 

36 Operating Cost, Hate rial $ 100,007. • 5,071 

257 tfel&toiumee, including -axes, Deproeiation, oto..^ 124,058..,.. ..y 1,££9». ... 

30 Municipal ^rpsnso ................... »••••*••$ I T ons...,. ..y Rone«»... 

59 Fixed Charges.*., .....$ 1,610,840 v 0,137..... 

40 Total Operating Expense*.... # 1,922,985...... $14,457 - 



H 



41 Cporatin-~ Cost, Minus i'ixod Shares, par 

Horse ! ov?or, 1921, Average Output. ♦..♦•* 2. 41. ••.... ; 34 • 62* ..... 

42 Operating Coot, SGUrat Fixed Charges, p*** 

Horse lo^or. Turbine Hating »•«.••..•«£ 1.35.. v 3.75.. .... 

43 Operating Cost, Hue ?i;cea Charges, per 

llorr.o Fevsr, 1921, Avora^a Output.. ...♦.♦♦••$ 15.25.. ; 79.32.....» 



44 Operating Coet, riuo Fixod Charges, por 

Korso lower, Turbine -bating ...y 8.50.... ...,'< 8.59, 



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_ct: Krao-sLaroia i-qhsi c^i^d* as a? mim^ ^jVgi, 



►Hot Operating.. ........,> 10,831 & 5 m*> * a a«« 

.Xot Operating « 3 , 3 03 „..| 769 ..;l, TO3 

• rot 0*.r»ttow « 15,7*6 $ 2,339 3 7>a42 

' X<B5 ° • ".<** « 904 3,372 

.Hot Operating I 70,5« $ 9,634 #58,Osb 

' Koa9 H*« 518,881 ,77,664 



»••••«•«. .••••Hon £xi3t9Et«*.,,#.....£ IS. 40. ir <v% j, 

••••••««. v ao # <uu. ....... , v 1G.00«... $ a.00 

M •••••Hon ivxiatent.. ••♦.*....$ 4.00 a * *e 



.Won Watwt $ 50.75 .....; 33.90 J 52 .50 

.ftnfelatK* <j 12.40..,.. J 15.70 , 12 .09