HIGH COMMISSIONER'S OFFICE.

Taranaki Daily News, Volume LII, Issue 297, 25 January 1910, Page 3

HIGH COMMISSIONER'S OFFICE.

EXPLANATION liV 'l'll E I'LLM:^.

By Telegraph.—Press Association. Wellington. Saturday Xijrlit.

"E. A. Smith. - ' who has more than once occupied the attention of the Preand |><>!iti^-JH;i.s, has now been the subject. of ;i!i explanation by the Prime i A 1 inirster. Sir Joseph Ward denied ihat ! there was any mystery ut all about the j matter, nor 'had the Government any I desire to conceal anything from the public. The position was this, that one of the sons of Sir Walter Ken.iaway had in recent years been principal of the iirnt j of "E. A. Smith. -- shipping agents. Ihey ! had their offices iii the same building as the High Commissioner, but the 01Ilc.cs were entirely separate, there being' no communication between the two suites of oflices. The rentals were paid entirely apart, and if tne firm of "E. A. Smith" - had not done shipping business., then some other firm would have it, or ] there would have been a necessary ad- i dition to the High Commissioner's staff. | Personally, Sir Joseph said, lie knew nothing about the firm of Smith or its j origin. No authority had even been asked for or obtained bv the High Commissioner for this or any other firm to carry out work of the 'particular kind that the "Smith" firm undertook. No expenditure 'wing incurred on behalf of the Dominion, no authority had been asked for. At no time, he felt confident, had there been anv wrongdoing in connection with any matter over which the High Commissioner's Office had control. On his last visit to .London Sir Joseph came to the conclusion that the work should be done bv the High Coniniisisoner's Office, so that commissions paid by shipping firms should be paid direct to the High Commissioner. Accordingly, a new branch was 'formed on Ist November. He learned that in addition to Mr. T. E. Donne and Dr. Mason, of his oilico, there were four of '"E. A. Smith's" employees taken on—two at £2 15s a week, one at £2 10s, one at £2 ss, and a cadet at 10s a week. It was so that the commissions paid to '"E. A. Smith" by shipping companies should in future be received by the High Commissioner's Ofl'ice that Mr. Donne was sent to London. Before lie went it was decided that among other duties he should take over the shipping agency business. Additional offices' being necessary, three extra rooms were taken from "E. A. Smith" at a rental of £SO per annum. Shipping companies had to pay the High Commissioner commissions as they had paid to "E. A. Smith," and the Trade Commissioner had been authorised to issue contract tickets on Government passages booked through the Department. On a considerable proportion of the passages commission would have to be paid to the agents through whom they were booked, but the cost of the extra work to be done and the extra salaries' to be paid would now be reimbursed by the commissions paid bv shipping companies outside. The Prime Minister stated that lie had called for a full report on the whole matter from the High Commissioner. This would be furnished to Parliament. He (Sir Joseph) had never said £.2000 a year previously paid to outsiders by way of commission would be saved by the reorganisation of the High Commissioner's Office. What he had said was that the additional cost, entailed by the salaries of Messrs. Harner and Donne would, as the effect, of the reorganisation of the High Commissioner's Office, be reimbursed bv commissions paid by the shipping companies, As a matter of fact, commissions paid hitherto should at least pay the whole of the cost of the additional staff deputed to carry out th../ —ork. Neither iiims'elf nor any member o_ Government, knew that Mr. Kenna.,,.. . junior had been the principal of the firm of •"E. A. Smith" until quite recently. The conduct of the firm had never been called into question or reflected upon in any way, so far as he knew, while tiie fact remained that the Government had not at any time made anv payment to the firm in the direction suggested.