MR. “E. A. SMITH.”

Gisborne Times, Volume XXVIII, Issue 2718, 25 January 1910, Page 5

MR. “E. A. SMITH.”

HIS IDENTITY DISCLOSED.

STATEMENT BY THE PRIME

MINISTER

Mysterious Mr. “E. A. Smith” was the subject of an explanation which was given to a “Dominion” representative by the Prime Minister (Sir Joseph Ward) on Friday evening, when making a statement with regard to the shipping business formerly conducted by a private firm in offices situated in the same building as those occupied by the High Commissioner of New Zealand, and now conducted as a branch of the High Commissioner’s Department. Introducing the matter, the Prime Minister said that, so far. as the Government were concerned, there was no reason or desire to conceal anything from the public. The implied suggestion that the Government was playing commissions to this particular firm for work done in England was without foundation. No commissions or payments of any kind liad been made by the High Commissioner’s Office to either E. A. Smith or any other firm with regard to the shipping of goods or passengers by the shipping companies to New Zealand. So lar as he knew nothing unusual had been done bv the High Commissioner’s Office in England with regard to the matter, nor had it been the custom at any time for work of the kind referred to to be carried out by the staff of that office, as had been suggested. MR. SMITH’S SUCCESSOR. What had probably given rise to the criticisms which hail appeared in the newspapers was the circumstance that one of Sir Walter Kennaway’s sons had in recent times (Mr. Smith being now deceased) been principal of the firm of E. A. Smith, and had rented offices in the same buildings as were situated the offices of the High Commissioner. “The rental of these offices was duly paid, as I ascertained when in London,” said Sir Joseph Ward; “the firm had nothing to do with the High Commissioner, and its offices were quite apart from any portion of the building occupied by the New Zealand Government. I’ve never heard—until I saw the matter mentioned in the newspapers—of any supposed mystery about the firm. Personally, I know nothing of the firm or its origin. No authority lias ever been asked or obtained from the Government by the High Commissioner’s "office for the employment of this or any other firm to carry out work of this kind in London, and as no expenditure has been incurred bv the High Commissioner on behalf of the New “ Zealand Government, it is to be presumed that no direct authority was required : in any case. I am stating the fact that no authority was asked for or given. I am satisfied that no wrong thing has been done at any time.

GOVERNMENT SHIPPING AGENCY “If the firm of E. A. Smith liad not done the work referred to. some other firm would, and when I was in England on the occasion to my last visit, I came to the conclusion, as the result- of certain investigations made, that it was necessary that all the shipping work should be done by the High Commissioner’s office, and all commissions payable by the shipping companies should be paid direct, to the office. This involved additions to the High Commissioner’s staff, and the reorganisation of the trade and immigration work was one of the principal reasons for sending an experienced officer (Mr. T. E. Donne) to London. It was arranged, during my stay in London, that Mr Donne, with _ Mr. Mason (of his office), and some of the members of the staff of E. A. Smith, should take over the control of the work as soon as the High Commissioner had satisfied himself as to the smallest number necessary to perform the work. I have since been advised by the High Commissioner, in a letter dated December 1. that the shipping branch of his department was organised on November 1. and that Mr. Donne’s staff comprises two clerks at salaries of £2 15s per week each, one at £2 10s., one£2 55., with a cadet at 10s., the worn being carried on in three rooms previously occupied by tlie firm of E. A. Smith ata rental of £SO per annum. “I have been further advised by the High Commissioner that all the shipping companies were approached, and all agreed to. allow the same commissions as formerly, and that Dir. Donne the Trade Commissioner, has received authority for the issue of tickets booked through tlie Department to New Zcalaud. A considerable proportion of tlie assisted passengers have been booked through the Department by various shipping agents in the United Kingdom, aud upon these passages commissions will be required to be paid over to tlie agents introducing them. Tlie Prime Minister went on to say that be had not been correctly represented in tlie statement which had been made in one newspaper that “one effectof the reorganisation of the High Commissioner’s Office would be the saving of £2OOO a year, previously paid to ‘outsiders’ bv way of commission. “What I said was that the additional cost- entailed salaries of Messrs Donne aud Hamer would, as the effect of the reorganisation of tlie High Commissioner s Office be reimbursed by the commissions paid by the shipping companies.” As a matter of business, explained the Prime Minister, the commissions hitherto paid should at least pay the whole of the additional cost of the staff deputed to carry out- tlie work. “I may say here,” said Sir Joseph Ward, in conclusion, “that I, for one, did not know, nor did any other member_ of the Government know, that Mr Kenuaway, jnr., had been recently the principal of tlie firm of E. A. Smith. I have never heard of or received any communication from anyone reflecting upon the conduct of the business of this firm nor was the work called into question, or brought- before the notice of tlie Government. I understand that this method of conducting shipping business is similar to that carried out elsewhere. Tlie High Commissioner has advised me that it- is yet too early to say how the financial prospects of this branch of his Department will turn out. We will be in a better position to determine that- after a year’s operations. I have asked' the High Commissioner to furnish a. full report of the whole matter for the information of Parliament next session.”