Northern Ontario Natural Gas
Encyclopedia
Northern Ontario Natural Gas was a natural gas
company in Canada
in the 1950s and 1960s, which was involved in a stock trading scandal that implicated Supreme Court of Ontario
judge Leo Landreville
and three members of Premier
Leslie Frost
's cabinet.
Headed by Ralph K. Farris and Gordon Kelly McLean, the company sought the contract for the Northern Ontario
leg of the TransCanada pipeline
, and tried to secure franchise
supply contracts to the region's major cities. In particular, winning a contract to supply Inco's operations in Sudbury was considered a crucial component of the company's business strategy, as Inco was at the time the world's largest consumer of natural gas.
The company offered Landreville, then Sudbury's mayor
, an option on 10,000 shares of company stock at $2.50 a share before the city approved NONG's franchise contract. After the deal was approved and NONG's stock rose to $13, Farris purchased 10,000 shares at the $2.50 price, sold 2,500 shares at the new price to reimburse the company, and gave the remaining 7,500 shares to Landreville at no cost to him. Landreville later sold the stock for $117,000 in profit.
The scandal was pursued in the Legislative Assembly of Ontario
by Cooperative Commonwealth Federation leader Donald C. MacDonald
, leading to the resignations of Philip Kelly, William Griesinger
and Clare Mapledoram from Frost's cabinet after their own involvement in the scandal was also revealed.
Although Landreville was acquitted on charges of influence peddling
resulting from his involvement in the scandal, he was subsequently removed from the Supreme Court of Ontario bench on the grounds that his conduct had fallen beneath the standards of probity expected of a judge.
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
company in Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
in the 1950s and 1960s, which was involved in a stock trading scandal that implicated Supreme Court of Ontario
Supreme Court of Ontario
The Supreme Court of Ontario was a superior court of the Canadian province of Ontario. Now defunct, in 1989 the Courts of Justice Amendment Act, 1989 was enacted by the Government to create one large superior trial court for Ontario...
judge Leo Landreville
Leo Landreville
Leo Landreville was a Canadian politician and lawyer, who served as mayor of Sudbury, Ontario in 1955 and 1956 before being appointed to the Supreme Court of Ontario as a judge...
and three members of Premier
Premier of Ontario
The Premier of Ontario is the first Minister of the Crown for the Canadian province of Ontario. The Premier is appointed as the province's head of government by the Lieutenant Governor of Ontario, and presides over the Executive council, or Cabinet. The Executive Council Act The Premier of Ontario...
Leslie Frost
Leslie Frost
Leslie Miscampbell Frost, was a politician in Ontario, Canada, who served as the 16th Premier from May 4, 1949 to November 8, 1961. Due to his lengthy tenure, he gained the nickname "Old Man Ontario".-Early years:...
's cabinet.
Headed by Ralph K. Farris and Gordon Kelly McLean, the company sought the contract for the Northern Ontario
Northern Ontario
Northern Ontario is a region of the Canadian province of Ontario which lies north of Lake Huron , the French River and Lake Nipissing. The region has a land area of 802,000 km2 and constitutes 87% of the land area of Ontario, although it contains only about 6% of the population...
leg of the TransCanada pipeline
TransCanada pipeline
The TransCanada pipeline is a system of natural gas pipelines, up to 48 inches in diameter, that carries gas through Alberta, Saskatchewan, Manitoba, Ontario and Quebec. It is maintained by TransCanada PipeLines, LP...
, and tried to secure franchise
Government-granted monopoly
In economics, a government-granted monopoly is a form of coercive monopoly by which a government grants exclusive privilege to a private individual or firm to be the sole provider of a good or service; potential competitors are excluded from the market by law, regulation, or other mechanisms of...
supply contracts to the region's major cities. In particular, winning a contract to supply Inco's operations in Sudbury was considered a crucial component of the company's business strategy, as Inco was at the time the world's largest consumer of natural gas.
The company offered Landreville, then Sudbury's mayor
Mayor
In many countries, a Mayor is the highest ranking officer in the municipal government of a town or a large urban city....
, an option on 10,000 shares of company stock at $2.50 a share before the city approved NONG's franchise contract. After the deal was approved and NONG's stock rose to $13, Farris purchased 10,000 shares at the $2.50 price, sold 2,500 shares at the new price to reimburse the company, and gave the remaining 7,500 shares to Landreville at no cost to him. Landreville later sold the stock for $117,000 in profit.
The scandal was pursued in the Legislative Assembly of Ontario
Legislative Assembly of Ontario
The Legislative Assembly of Ontario , is the legislature of the Canadian province of Ontario, and is the second largest provincial legislature of Canada...
by Cooperative Commonwealth Federation leader Donald C. MacDonald
Donald C. MacDonald
Donald Cameron MacDonald, CM, O.Ont was a long time Canadian politician and political party leader and had been referred to as the "Best premier Ontario never had." He represented the provincial riding of York South in the Legislative Assembly of Ontario from 1955 to 1982...
, leading to the resignations of Philip Kelly, William Griesinger
William Griesinger
William Griesinger was an Ontario merchant and political figure. He represented Windsor—Sandwich in the Legislative Assembly of Ontario from 1945 to 1959 as a Progressive Conservative member....
and Clare Mapledoram from Frost's cabinet after their own involvement in the scandal was also revealed.
Although Landreville was acquitted on charges of influence peddling
Influence peddling
Influence peddling is the illegal practice of using one's influence in government or connections with persons in authority to obtain favors or preferential treatment for another, usually in return for payment. Also called traffic of influence or trading in influence ...
resulting from his involvement in the scandal, he was subsequently removed from the Supreme Court of Ontario bench on the grounds that his conduct had fallen beneath the standards of probity expected of a judge.