Manawatu Evening Standard. Circulation, 3,500 Copies Daily. WEDNESDAY, MARCH 16, 1910. THE SMITH CASE.

Manawatu Standard, Volume 9167, Issue 9167, 16 March 1910, Page 4

Manawatu Evening Standard. Circulation, 3,500 Copies Daily. WEDNESDAY, MARCH 16, 1910. THE SMITH CASE.

The last has not been heard of the "E. A. Smith" case which caused some stir in the Dominion two months ago. The allegation wa6, it will be remembered, that a firm of shipping agents ufcder the style of "E. A. Smith" had a monopoly of the business of booking emigrants assisted by the New Zealand Government to the Dominion, and that it drew large rebates from the shipping companies. The objection to this arrangement was that it eliminated the competition of other shipping agents, and consequently the Dominion's interests were suffering. It was further stated that the head of the firm was a son of Sir Walter Kennaway, who for many years was secretary to the High Commissioner's office in London. These statements naturally called for some explanation from the Government, and the Premier said he personally knew nothing of the firm or its origin. No authority, he said, had ever been asked for or obtained by the High Commissioner for that or any other firm to carry out work of this particular kind. The Government professed entire ignorance of the whole matter. However, those concerned in tho case at the London end have made statements which are commend- i able for their frankness, but which do not support the Government's attitude. There is indeed a wide discrepancy that will require some further explanation from Ministers. The Hon. W. P. Reeves, late High Commissioner, told an interviewer that it" was ludicrous to suggest that Mr Kennaway's connection with the office was kept secret. He says that in a letter which he wrote to the New Zealand Government in 1906 he went out of his way to explain what Mr Kennaway was doing, and his connection with the office. It was then explained that lie was doing New Zealand's shipping business, and that he had by a gradual process become the firm of "E. A. Smith." Mr Reeves says, he is sure these facts are on record in the Government Department. In an interview Mr Kennaway explained his connection with the firm. Ho

joined.it in 1896 under a partnership agreement with Mr Smith. The latter dropped out of the business in 1900, and it had since been carried on in his name as his family retained an interest in it for some years. Mr Kennaway bore out Mr Reeves's statement that the Government was fully cognisant of the position. "There is a letter in the department," he said, "advising the Government of the existence of the arrangement. I About three or four years ago another ! letter was sent out explaining the position." The Government will have a difficulty in reconciling its professed ignorance with the precise statements of Messrs. Reeves and Kennaway. The larger question as to whether the arrangement was in the best interests of the Dominion is a matter for the consideration of Parliament, but in the meantime it will be interesting to learn what answer the Government can give to the statements above quoted.