THE AUDIT COMMISSION.

New Zealand Times, Volume XXVII, Issue 5730, 27 October 1905, Page 3

THE AUDIT COMMISSION.

MR FISHER CONDUCTS HIS OWN case. YESTERDAY’S PROCEEDINGS. Thoir Honors Mr Justice Donniston, Mr Justice Edwards, and Mr Justice Cooper, sitting as a Royal Commission to inquire into the working and methods of the Public Audit Dopartmont, -continued their inquiries yesterday. On the previous afternoon, '.Mr B. G. Jcllicoo, who had appeared on behalf of Air F. M. B. Fisher, At.H.R., ono of tho parties to the inquiry, withdrew from tho case. When their Honors sat yesterday morning, Air Justice Donniston, tho President of tho Court,' told Mr Fisher that he

would bo given the fullest opportunities for conducting his case in the same way that Mr Jcllicoo had had opportunity. His Honor added,: “ The three points referred to. tho Commission arc—- “ (1) Whether a voucher for payment of an amount hy cheque on tho public account, signed hy the payee, could disappear without any record of its existence or payment being loft in tho departmental books or records. | “(2) Whether in tho years 1903-4 n vouchor was issued in favour of Captain Scddou for payment to him at Christchurch out of the public account of a sum between £7O and £BO (or any other sum) for the reorganisation of defence stores, or for any other service. , “ (3) Did Captain ■ Soddon ever claim or receive any such payment or sign any such voucher?” “ These are tho only questions tho Court has to consider,” concluded Air Justice Denniston. “In order to enable your counsel to establish your case on these points, we have repeatedly stated that wo aro prepared to order tho production in this Court of any hook, document, or writing which may assist it to do so. Wo cannot order tho production in this Court of tho wholo of tho records of any public department without reference to their relevancy; nor can wo personally undertake the examination of some 260,000 vouchers in order to establish that the voucher alleged to have been seen in Christchurch is not'amongst them. Such a proceeding would ho quite contrary to all tho rules which regulate tho proceduco of Courts of Justice; aful, apart from other objections, tho want of time would make it absolutely impossible for ua to adopt it. Bearing this in mind, are you prepared to go on with your case now, or do you wish to retain counsel to assist you? In this latter cose, wo aro prepared to grant an adjournment of tho proceedings until tomorrow morning.” Air Fisher intimated that he would endeavour to conduct his own case, but intimated that it would be necessary that certain books and papers from the Christchurch Post Office should be produced. Air Skerrett stated that every rear Bouablc facility would bo given to Air Fisher and Air Willis for tho inspection of such books and documents as were found to have any bearing upon tho vase. Robert Joseph Collins, who had given evidence on the previous day, again took his place in tho witness-box, and, in answer to Air Fisher, said that Captain Seddon signed vouchers made in his favour “R. J. S. Seddon.” Vouchers in favour of him were made out in tho name of “Captain” R. J. B. Seddon, and vouchors in favour of tho Premier were made out in tho name of tho “Right Hon" R. J. Scddo.ii. There were some 260,000 vouchers, and a search was being made through vouchers numbering some 1 000 or 8000 passed through during the years 1903-4, Tho search ■now being carried out would be complete, and was the best kind of search that could be devised. Tho New Zealand audit was dispensed with because there was an accumulation of work in tho office, and the necessary information could not be obtained from South Africa. The War Office was asked to dispense with tho local audit. He could not conceive the possibility of a fraudulent voucher passing through tho Treasury, Defence, and Audit Departments, oven with tho connivance of an inspecting officer, without detection. There would bo a record in tho Treasury books of any document that was passed through, whether that document was false or true. Air Fisher: Assuming fraud, would it bo possible for a voucher to he passed through?—lt might be passed through, but the fraud would be speedily discovered. But would it not bo possible if you vahoee to do so—of course. Air Collins, ' I don’t for a moment suggest that you would—but wouldn’t it be possible, if you tried very hard, to get a voucher through?—No, I say distinctly it ■would uot, because it would have to pass through too many hands. But, whether the voucher is false or true, ] tho record of payment is there in tho Treasury books all the same. As I understand, these vouchers have to bo initialled by the certifying officer. Now, can’t those initials be imitated?— Well, no doubt, there are clever forgers in Wellington, but I don’t know any one in particular.

Well, if you look here (indicating a vouchor), you will see initials that look more like one and twopence than anything else. (Laughter.) Mr Justice Edwards (sternly): This place is not a theatre, and we are not hero for the purpose of public amusement. People who want to laugh must go to the theatre, and not come here.

In answer to further questions, tho witness said that travelling ‘'allowances” were rates paid per day, but travelling “expenses” were charges for cabs and other necessary methods of locomotion. Ho had checked all the votes from which moneys for the reorganisation of defence stores could possibly be paid to Captain Seddon, and had found no trace of any such payment, and it was impossible that such a voucher could have been seen in Christchurch. The vouchers went through the hands of seven or eight men, and they would all have had to be parties to the conspiracy, if afiy fraud bad been committed. James Charles Heywood, called by Mr Skerrett, stated that he was Secretary to the Treasury, and had occupied his position since 1890. H© had also been appointed as Imperial paymaster in respect of payments to be made in New Zealand. Ho was quite satisfied that tho search of the department’s accounts, which he had directed to bo made, had been properly made, and did not believe it was at all possible for a payment to bo made out of the public account without a record appealing in tho books of the department. Cross-examined by Mr Fisher, the witness said that all tho receipts of payments made to Captain Seddon wore signed “R. J. Seddon,” and none were signed "R. J. S. Seddon.” Mr Fisher produced a document which boro three signatures “R. J. S. Seddon,” and asked if that document

did not controvert the witness’s statement, and suggest that a voucher had been passed through the department and payment for it authorised without tho authenticity of the signature being determined. The Court examined the document submitted, and Mr Justice .Edwards naively remarked, “Well, these are signatures, no doubt, but they appear to mo to bo more like the work of an extremely active spider than anything else.” (Laughter.) Air Justice Denniston said there were three signatures on tho document, and one did not quite resemble the other two. Air Fisher; Then I suppose, your Honors, that the majority will rule? (LaughterJ Air Justice Denniston: Oh, no;-we don’t rule ; we weigh tho evidence. (Laughter.) Air Fisher: I’d like to have an expert to examine these signatures Air Justice Edwards: Well, we can examine them as well as anyone, can t wo ? Although wo may need the aid of a magnifying-glass., Air Skerrett; After all, what docs it matter? ... Air Fisher: Oh, I think it is extremely important—— Air J ustico Denniston; Well, the signature is peculiar—the word “ received ” h mixed up with the signature. ' Air Fisher: Yes, your Honor, and that is the reason why I ask' if Air Heywood can say that ho was right when he passed this voucher through. (To the witness): Is it not a fact that Captain Sedoon’s signature is so variable that you ;ould not determine it.? Witness: Well, everyone’s signature varies from time to time, and I don’t think there is anything much in the circumstance of a variation like that. Air Justice Edwards: You see, Air Fisher, these -papers come to Air Heywood with departmental approval, and there is no necessity for Him to make comparisons of the signatures. Air Fisher: Yes, your Honor; hut these men come along and say tho voucher was signed “R. J. S. Seddon,” and I want to demonstrate that Captain Seddon's signature is so variable that it might he mistaken. _ His Honor; Yes, we quite understand. David Theodore C. Ihness, chief clerk in the Audit Office, was called by Air Skerrett, and examined at some length as to the manner in which the vouchers which came to his department were treated, and' the official methods of dealing with such documents. Witness also detailed the searches that had been made for'the voucher which it was alleged had been drawn in favour of Captain Seddon in connection with the matter of defence stores. Ten careful searches had bee i made, and the books of tho departments closely examined, but there was absolutely no trace of any payment having been made in respect of tho reorganisation of defence stores to Captain Seddon or anyone else. Tho Court adjourned until 10.30 o’clo k this morning.