THE AUDIT INQUIRY.

Lyttelton Times, Volume CXIV, Issue 13890, 26 October 1905, Page 8

THE AUDIT INQUIRY.

SITTING OF THE COMMISSION. THE BENCH ANd"mR JELLICOE. PASSAGES AT-ARMS. MR JELLICOE RETIRES FROM THE PROCEEDINGS. [Pee Press Association.] WELLINGTON, October 25. At the sitting of the Audit Commission this morning Frederick Silver, assistant Defence storekeeper, was ex- . amined 'as to the transfers of stores and the methods of the Department. Robert Joseph Collins, assistant secretary of the Treasury, forty years in the public service and twenty-seven years in the Treasury, described in detail the Treasury system in connection ' with the Audit Office and the banks. Witness had searched the Defence votes, / contingent defence and Colonial Secretary’s deposit account, out of which .ft- was possible that Captain Seddon could have been paid a sum for the reorganisation of Defence stores, or for iny other purpose. He had found no trace of such payment. It was absolutely impossible that such a cheque could have been paid without a record appearing in the Department’s hooks. Witness explained the difficulties in connection with the auditing of the African accounts, which led ' to the auditing in connection therewith being done at Home. Mr JeUicoe proceeded to ask the witness on what ground anyone here or m England could dispense with, the audit provided by law P ,' Mr Skerrefct: What has witness to do with that?' Mrj Justice Denniston said that the Court only' required, the facte, which witness bad stated. Mr:Justice Edwards: I consider this is a, very gross waste of time. Sooner or later it will have to be put am end to.-. As-far as’l am concerned lam prepared to.let it run on for to-day, and then we must consider what steps shall-be taken to put an end to it. Mr Justice Denniston; I concur. Mr Justice Cooper: So do I. ( Mr Jelliooe proceeded to read 'at length from, correspondence between ‘ the colony arid the Home authorities suggesting arid leading up to dispensing with audit in New Zealand: After further cross-examination and occasional conflicts with the Bench, Mr Jelliooe was proceeding to examine the witness regarding the magnitude of the sums of money kept in the oplony on " /behalf of the Imperial authorities and the matter of a cablegram from the : War Office, when Mr Justice Edwards interjected, “Mr Jelliooe, we are. all ... of opinion that yon have come here deliberately to waste the time of the '■Court and cloud the issues before the Court. We. have allowed you to proceed thus far, so that there shall not he a pretence that you were not allowed to have full rope. I have inti- . mated that you will have to-day, but that after that’serious steps may have to be taken.” _ - Air Jelliooe: I a.m proceeding to-day. Mr Justice Edwards replied that - there were means of dealing with people and solicitors who flouted the ', Oominisrion. ■ Mr JeUicoe disclaimed any intention of bo doing. He was sony that the Commission thought so. Mr Justice Edwards repeated that Mr Jelliooe had deliberately wasted the time of tlie Commission, and occasion was taken by Mr'Justice Denniston and Mr Justice Cooper to concur in. this expression of opinion. Sir JeUicoe (to witness): Would you exclude all possibility of a voucher be- ... ing sent to the Treasury and being mislaid or lost? Witness: No. Mr Jelliooe: In what circumstances could a voucher disappear? Witness: It might be mislaid or put in a wrong place. Mr Justice Cooper: Could a voucher disappear without a record of it ap- • pearing in the Departmental books? ' ’"Witness: No. Witness, continuing, said that a ’fraudulent voucher could not go -through the Treasury. Be would not assume fraud in the Treasury Depart- . ment because of the check. Supposing : .that a voucher had passed Christchurch ' and had goner astray, witness would riot have found it up here. Mr Jelliooe proceeded to erbss-exam- '. iri-e witness upon minute points. Mr Justice Denniston : We had all this; yesterday. Mr Justice Edwards: Yes; and we . made an intimation. We allowed you free rope until four o’clock to-day. It is now a, quarter to four, and you have a quarter of an hour to go. Mr Jelliooe: I don’t want any rope. Mr Justice Denniston: W© have allowed nothing of this sort. Mr Justice Edwards: Mr Jelliooe has spent the afternoon in flat defiance of our ruling. Mr Justice Denniston: I may say - that the Court gives no ruling. Mr JeUicoe may go on until four o’clock. Mr Jelliooe : Task for the production of certain documents. I ask for the postponement of this witness’s examination until those documents aro produced. Mr Justice Denniston: We have not ■topped you. Mr Justice Edwards: Except that -you have spent the afternoon in dis- - obeying the ruling of the Court that your examination should he confined to relevant matters of fact. Mr Justice Denniston: We have nothing more to say than that you (Mr Jelliooe) will he good enough to proceed with your examination of the wit- ' ness. .■ _ 1 j ' Air JeUicoe: I have to say this Air Justice Denniston: We do not wish you to say anything. Mr JeUicoe: I must state Mr Justice Denniston: You must not. You must proceed, of course, on your own lines. Air JeUicoe; I desire to state that I shaU take no further part in these proceedings having regard to the course of this inquiry and your Honors’ ruling. I take this course because we feel that no good object can be served by cur taking further part in these proceedings.

Dr Findlay (jumping up): I ask that Messrs Willis and Fisher be suhpcenaed. Mr Justice Edwards: It remains to bo seen whether Mr Fisher is responsible for the gross and improper waste of time this Court has been subjected to, and whether or not he has been party to an effort to obscure. the issue. The Court adjourned until 10.30 this morning.

[From. Our Correspondent.] In consequence of the retirement of Mr Jellicoe from the proceedings of the Audit Commission, Mr Fisher will appear on his own behalf on future days. Sir Jelli coe’s difference with the Judges rests on his claim for access to hooks and records that have been denied him. The Judges have confined the inquiry to vouchers for any amount' paid at Christchurch to Captain Seddon for any service. Mx Jelliooe, on behalf of Mr Fisher, claims .that the Commission covers all the transactions of the Audit Department, and that access should be given to the records of the Imperial Tv ar Office expenditure, which was not subject to the audit of the AuditorGeneral.