Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1912-05-29
Manitoba Elevator SySteu
for Sale; Phone Depart
meDt Has q Scandal
ROYAL Commissions Probe
Shows Extravaganza and
Graft Been General ~.
Specia. to The Tribune.

| D66u LED TO DelloNe SOF tlllu1eAI<'l SOAA'
ditions are so mucn superior to those
i'm the United States are, upon their
arrival in Winnipeg, now being gwen
an insight into the manner in which
the Canadian government operates tine
affairs of it's state owned utilities
which does not, by any means, bear
out the claims of the superiority OF
tine government of the great northern
neighbor nor Of its ability to operate
a government monopoly OF public SER
vice concerns with anything like the
results credited to it.
Scandal Unearthed
Although the scandals now being
brought to light by a Royal Commits
sion has shaken Manitoba business
and politics to tine foundation, pract1-
cally nothing of it has reached the
| United States. The reason for this Is
that local pride has succeeded in sup
pressing the condition from American
newspapers. On of the standard sub
jects of Canadian attacks on the
United States has been alleged cor
ruption in municipal state and gov
eminent matters, and to have worse
state of affairs than anything charged
against American public officials
brought to light at home was any
thing but agreeable matter to have
spread in Yankee newspapers. But
so far as this instance is concerned,
all theoretical objections to govern
ment ownership have by actual facts
been demonstrated to be sound.
Forced Out Americans
Four years ago Manitoba went into
government ownership by installing a
line of grain elevators and practical
ly forcing all privately owned tele-
phone exchanges in the province to
sell to a government system which
was being organized. The biggest of
these plants, the Winnipeg Company
was American owned and operated.
The provincial government took a
club, went after the Americans, and
threatened to parallel their lines if
Hhey did not sell. The Americans
sold, but having to deal with govern
ment agents handling other peoples
money instead of their own, they got
million dollars or so more than any
level headed business man would have
paid for the plant Then, having a
number of other exchanges through
out the province, the state telephone
company started business with a -four
ish. From time to time glowing re-
ports We're made of THE success of
the system and all went we'll until
some months ago when the telephone
commission suddenly announced
tremendous increase in rates.
Found Wholesale Graft
A '1howl" went up HALF the towns
i'm the province appointed commissions
to see why the increase was neces-
sary The tumu1t became so great
that Premier Robin appointed
Crown non1partsdan commission to
investigate the whole question. It is
the many scandals brought out by thls
Royal Commission which is giving
Americans the chance to return t
Canadians the many gibes which this
country has for sa long thrown at the
great republic to the south when the
question of the conduct of .Municipal
and State affairs we're under discus.
sion Although owned by the govern
ment for less than four years, the dis.
closures before the commission show
the entire system to be permeated
with graft, incompetence and scandal.
AS soon as the announcement of an
investigation was made, one of the
telephone commissioners resigned
One employee has been arrested on
a graft charge and other arrests ar.
to follow. In every department was
found scandal The purchasing depart.
ment admitted having bought at one
time, 100000 worth of supplies which
We're not needed. The construction
department told of running lines one
day and taking them down the follow.
ing day. One lime IL miles long was
BUILT in order that one customermight
be served. Materials We're wasted;
time was "kilbed" In the auditing
department. were found raised vouch.
ers which had been signed in blank
and afterwards filled in as the holder
wished. The accounting department
accepted without question, such sums
as We're RENTED for long distance
~"AA' ~ VI aHOA Ill dll Tile /
three years there hah been no gen.
eral checking up of the system
Alarming State Of Affairs
The scandal reached the Provincial
Parliament and became the question
or the hour. M ember MCPHERSON.
from the floor. charged that the people
had been grossly deceived. They
were led. he said to believe there
would be from 1911 operation, sur
plus of 100000. Instead there was a |
big deficit. T. H. johnson, another
member. made the charge "the labors
OF the commission ihave brought to
light an alarming state OF affairs. A
remarkable story of unsatisfactory
finance and plmndering by certain en-
ployees has been made public"
The commission has just finished it's
work and tits official report ds daily |
expected now and the general belief |
is that, because of the failure and
scandals in connection with the past
operation Of the system. this report