after Sir John Hope Simpson. The first Company Town in Labrador had been born and large scale commercial development of the woods around Alexis and Lewis Bays for the export of pit props to south Wales had begun. Building development at Port Hope Simpson, by the winter of 1935, only consisted of a community hall and a hospital or seven-room medical clinic. A general store, a hall – also used as a church and a school – had also been erected at adjacent Mill Point cove. But as early as November 1934, after Sir John Hope Simpson, who had agreed to Williams's suggestion that the settlement be named after himself, opening-up Simpson to accusations of favouritism, had returned to England over Christmas to meet with officials at the Dominions Office, it had become apparent that J. O. Williams had lost his government's support. When the Dominions Office found out that the 400 houses were not being built at Port Hope Simpson and money had effectively been borrowed under false pretences on Simpson's say–so it brought about a complete change in their attitude towards Simpson and Williams. Simpson was recalled to the Dominions Office in November 1934 not on the pretence of some constitutional issue or other but to face severe reprimand for what he and Lodge had allowed to happen. He had failed spectacularly to get Williams to toe the line in repaying his debts because he feared that Williams would carry out his threat to pull out of Labrador and Newfoundland altogether. Williams, on the other hand, made no fundamental misjudgement about his economic prospects on the Labrador, because, by using borrowed government funds he proceeded to make money hand over fist from 1934 to 1940. By the time the Public Enquiry was held into Williams' affairs in 1945 his personal qualities of drive and persistence had become more than a thorough nuisance, as the Dominions Office had failed to get to the bottom of what he was up to. They were aware they had been hoodwinked and John Chadwick, one of the civil servants, believed he had seen a way out of the mess via a proposed public enquiry that would enable the government to cut all ties with Williams once and for all despite the blunders of their representative, Sir John Hope Simpson. By 29 January 1935 it was clear that the Labrador Development Company was taking