A QUESTION OF COMMISSION.

Lyttelton Times, Volume CXXI, Issue 15210, 22 January 1910, Page 10

A QUESTION OF COMMISSION.

THE HIGH COMMISSIONER AND E. A. SMITH AND CO.

STATEAIENT BY THE PRIAIE MINISTER.. [Fhom Our Correspondent.] WELLINGTON, January 21

Newspaper criticisms which have appeared during the past few days in respect to the administration of a certain branch of the High Commissioner’s activities in London were discussed by tho Prime Alinister, Sir Joseph Ward, to-night, in an interview with a reporter. The criticisms in question were based upon an article received from a London correspondent by a certain syndicate of journals, which dealt with the arrangements made for booking passages and forwarding British emigrants sent out to New Zealand. It alleged, in brief, that the work was done at considerable profit to a firm doing business under the style of “E. A. Smith,” and occupying an office in the same building in winch the High Commissioner and his staff are located, further, that the firm had a monopoly of the business, and from it probably earned thousands of pounds yearly in commissions upon passages. All applications were said to he dealt'with, first by the High Commissioner’s office, then being passed on to tlie firm, which booked the passengers through the shipping companies and received tlie commission. It was suggested that here there was a scandal which wanted clearing up. The Prime Alinister said tffat the Government had no reason or desire to withhold any information concerning the matter from the public. The implied suggestion that the Government had been paying a commission to the firm , for whatever work it may have been doing was entirely without foundation. No commission or payment' of any kind had been made by tho High Commissioner’s office on behalf of the Government to either “E. A. Smith” or any other firm connected with the shipping of goods or passengers to New Zealand. As far as ho knew, nothing unusual had been done by the High Commissioner in connection with the matter, nor had it been the custom for the work required to be carried out by the High Commissioner’s office as suggested. What he really thought had given rise -to a good deal of tho criticism was the fact that one of the sons of Sir Walter Kennaway had in recent years been principal of the E. A. Smith firm.. Though the latter, had its offices in the same building as that of the High Commissioner, thoro was no connection between the two, ■ and the rentals werepaid entirely apart. In fact, he had never had any idea, until it was recently stated so. that there was any mystery about the constitution of the firm or its business. Personally, he knew nothing of the firm or its origin. No authority was -ever asked for or obtained from the Government by the. High Commissioner for that or any othor firm to carry out work of this particular kind. Presumably because no expenditure was being incurred on behalf of-the dominion no authority was required. "He was, moreover, confident that at no time had there been any wrongdoing in connection with any matter over which tho High Commissioner’s office had control. If this firm had not. carried out the shipping work referred to, some other firm would have, had to do it, or an addition would have been necessary to the High Commissioner’s staff. As a matter of fact, on his visit to London the time before last-, he had, after investigation, concluded that the work in question should bo done in the High Commissioner’s, Office, so that the commissions the' shipping companies paid should be paid direct to the High- Commissioner. That was really file reason why Air Donne was sent to London, and before his going it was decided that, among other duties, he should control that branch of the work. This could not, of course, be done without adding to the staff, so while he -was lost in London ho decided that, in addition to Air Donne and Mr Alason, of his office, some of the clerks previously employed in the work should bo taken on by tho High Commissioner as soon as it could be determined'what was the smallest number required. A letter just to hand now advised him that, the new branch was established on November 1, and that, four of the employees of E. A. Smith had been taken on.. Their salaries were -as follow: —Two at £2 15s a week, one at £2 lGs and one at £2 ss. There was also- a- cadet at 10s a week. In addition, office accommodation was also necessary. Throe rooms were taken from tho firm at a rental of £SO per annum. The High Commissioner reported by the last mail that tho shipping companies had been approached and had agreed to allow the office the same commission as formerly paid, so that tlie Trade Commissioner had been authorised to issue contract tickets on Government passages booked through tho department. In a considerable proportion of the passages commission would have to bo paid to tho agents through whom they were booked, but the cost of tho extra work to be done, and the extra salaries to bo paid, would be reimbursed by the commissions paid by the shipping companies outside. The Prime Alinister added that the conduct of the firm: of E. A. Smith had never been called in question or reflected, upon, so far as he knew, while the facts remained that tho Government had not, at any ■ time made any payment in tho directions suggested. It was really the way in which the dominion’s shipping work in England had always been carried out. He had, however, , asked the High Commissioner to furnish a full report on the whole matter for the information of Parliament next session. He would like to make it quite clear that he for one "did not know, and he behoved that no other member of the Ministry knew, until quite recently, that Mr Kennaway, jun.,' had .been principal of the firm about which so much fuss had been made.