WAR CLOTHING

Dominion, Volume 9, Issue 2864, 31 August 1916, Page 6

WAR CLOTHING

THE LEVY CASES CANCELLATION OF HIS CONTRACTS v BIG FIGURES INVOLVED NEGOTIATIONS WITH MUNITIONS MINISTER The case against _ Abraham Levy, Wellington, of breaking his State contract for the supply of military clothing for New Zealand troops by sewing seams of garments with cotton instead of linen thread, was continued in tho Magistrate's Court yesterday. Evidenco was taken all day, and lato in tho afternoon Levy's solicitors put in letters which reveal the nature or negotiations instituted by Levy with the Minister. The case is still a long way from completion.

There are in all eight charges against Levy, worded thus: "That at Wellington he did wilfully break a contract made by him with the Crown on January 10, 1916, for the purpose of the present war, to wit, a contract for tho supply of military uniforms by delivering to the Crown in pursu- 1 ance of that contract goods which were not in accordance with the terms thereof, contrary to regulation 12 of the regulations dated November 15, 1915, made pursuant to tho War Regulations Act, 1914." The dates mentioned in the charges aro June 23, 1916, June 27, June 29, July 4, 6, 7, 8, and 11, and it is the charge concerning June 23 that is now being heard. Mr. L. G. Reid, S.M., is hearing tho case. Mr. 1?. S. Macassey prosecutes for tho Crown, and. Messrs. A. Gray, K.C., and M. Myers are defending Levy. Army of Witnesses Retire. When the Court sat, Mr. Macassey. recalled. Benjamin Lewis, chief examiner of goods at the Defence Stores, and Lewis stated that on tho occasion of one of Levy's visits to him the question of the sewing on of buttons was discu'sscd. Witness objected to Levy about the quality of the thread which was being used, and Levy said he would send him samples of what he was using.

Witness had proceeded a little farther when Mr. Gray asked if Mr. Macassey intended calling Mr. Frost, who is somewhat associated with Lewis at the Defence Stores. Mr. Macassey: I do'. Mr. Gray: Well, I ask, then, .that Mr. I?rost should be asked to leave the Court while 1 proceed with the examination of Mr. Lewis. Mr. Macassey: The proper way is that all witnesses should be asked to leave the Court. I ask that all or none leave. That is tho usual thing. His Worship: I, know it is the usual way, but I don't know that it is necessary to ask for all to leave. Mr. Gray: If my friend makes that request I cannot object. Eventually Mr. Macassey asked that all witnesses should be ask«l to leave, His Worship made the order, and . the small army of witnesses walked out. Mr: ' Gray (to Lewis): Do you remember 3Ufr. Levy taking ill on one occasion? Witness: Yes. Do you recollect "ping up to his bouse to see him?—" Yes, his son Ben asked me to go up, saying that his father would esteem it a great favour if I would do so, as he particularly wished to see me." What was tho conversation about on that occasion?—"He wanted to know if the' sewing of facings (edges) should be regarded as the sewing of seams." Did you tell him?—" No. I 6aid I would not like to give" an answer." You say Levy brought you Major M'Cristell's letter,. which you drafted(calling Levy's attention to the fact that it was specified that seams should be sewn with linen thread equal in quality to Knox's No. 60)? —"Yes." ■ Mr. Gray (folding, a letter and showing witness a typewritten portion of the sheet): Is that your letter, then ? Lewis: I don't- think so. His Worship: I don't think that is a fair test —to fold a letter, and read a mail a few lines, and ask if tho letter was drafted by him. Mr. Gray: It is quite fair. I read him, as a matter of fact, the whole of the letter. I merely want to test his recollection, and he says it is not his letter. His Worship: It is too severe a test. Mr. Macassey: I say now that th 6 whole letter should be put in. Tho letter was not put in.

"No Authority to Use Cotton." William James Frost, clothing inspector ;at tho Defence Stores, was called, and said that the general rule was that before a contractor proceeded with his contract hp had to 6ubmit sample garments. When a satisfactory sample was agreed on, two such specimens were sealed. One was handed-to the contractor, and the other retained by the Department. Mr. Macassey: Was that practice followed with Levy? Witness: The only sample received from Levy was of the tunics. Did you mention the matter? —"Yes, to Mr. Harry Levy, the defendant's brother-in-law. I asked: "How is it you have not made samples of pantaloons, and of mounted and dismounted greatcoats' ?" What reason did he givo?—"That he had only ,been asked to make samples of tho tunics." For what purpose was the tunic submitted to you?—" For the cut." Did you say anything about tho seams?—"l said: 'You know, Harry, you liavo to put Knox's linen thread into these garments.' " What did he say?—"He assured me that .the two sample garments were sewn with Knox's linen thread." Has that sample been examined since?—"lt has been examined in the last few days, and found to be sewn with Buffalo khaki." In previous contracts, what were the seams sewn with? —"They were supposed to be sewn with thread." What does thread mean? —"Linen thread." . There was no authority, then, to use cotton in previous contracts?—" None." Do you remember Levy calling and producing the letter of April 28 (regarding the thread)? —"Yes, Mr. Levy pulled the letter out and asked: 'What am I to do about this?' Mr. Lewis said: 'You know what your _ contract requires you to do.' Levy said he was using Knox's linen thread. Tho matter ended there, and tvo understood he was going to see the board about it."

Did anything else occur that day?— "Yes, wo wont to the examining room with Mr. Levy, and drew his attention to the fact that somo of the buttons had been very badly sewn on, and Levy assured us that ho would go round to the other places, and see that tho buttons wore, in future, properly sewn on." His Worship: "Other placcs"? What do you mean by "other placcs"? Witness: Sub-contractors. Continuing, witness said that on aiiothor occasion when Tjcvv called lie brought his son Bon with him.

Mr. Macassey: What transpired? Frost: We told him that complaint had been made about some of the pantaloons being too tight at tho knees, and Ben Levy said ho -would put another inch on, and mate them larger at the knee, and also alter the shape. Did Levy como to see you about any complaints regarding military garments?—" Yes, early in March. Mr. Lewis had coinplaincd to Levy about bad finish in garments." Can you tell whether cotton or thread is nsod in these seams 'until you pull the team apart?—" No.-"' Mr. Macassey informed the Court that he proposed to produce evidence of "other acts to prove a system of fraud.'' Mr. Gray: His Worsliip has already ruled on this. Mr. Macassey: Ho is entitled to rule again, if ho -wishes to. Mr. Macassey submitted that it was a principle of law that evidence could bo called to establish "system of fraud." Mr. Gray: You are assuming fraud. Mr. Macassey : Tho defence, so far as I can see, will be that Levy acted in ignorance—that ho did, not know that cotton thread, was being used. "And I say ivo aro entitled t-o show that ou other occasions cotton was used instead of linen thread." He quoted Lord Russell on the point. His Worship: Evidence of prior acts, hut not subsequent acts might be admissible.

Mr. Macassey: Lord Russell says "subsequent dates." I don't' think Mr. Gray, as King's Counsel, will disputo that proposition. • Mr. Gray: I certainly will. Mr. Gray combated Mr. Macassoy's argument. "The latest authority is tho case of the bath murderer, the gentleman who used to drown his wives (as a custom)." Mr. Myers also addressed the Court on the point. His Worship decided to admit the evidence, subject to the objection. The prosecution then produced garments, and the witness Frost deposed that the pants ivero sewn with hlack three-cord cotton, and the tunics with Buffalo khaki cotton. Mr. Macassey: Is this hlack thrcecord! cotton a good class of cotton? Frost: No. Very poor. Do you know if cotton is ever used in the tailoring trade for the sewing of scams?—" No. Cotton is never used." The proceedings dragged for seme time, and Ms Worship commented on the fact. "And I only nave till tho end of the week in Wellington," ho sighed. "Can You Understand his Taking the Risk?" Mr. Myers: Do you not know that prior to these contracts cotton was used!'in the garments? Witness: In tho majority cotton was not used.

How do you know?—"l have exambed various garments." Was it: your practice to rip' tho seams open P—"No." Then please reconcile, if you con, that statement- with your statement to Mr. Macassey that you could only tell by ripping the scam. _ Can you 'reconcile these two diametrically opposed statements of yours?—"l cannot." Is tliero anyone in the Dopartmont whose duty it is when a 6ealed sample is made to see that that sample conforms to specifications?—" Yes, Mr. Lewis and I." Mr. Myers was a considerable time in. extracting an answer to this question, and he observed to the Court that it was very important as it affected' the question or honesty. '*j[f a man honestly makes a sample which is wrong it may mitigate matters, not oivill ( y, but when proceedings are taken criminally." ilr. Myers: How have you found Mr. Levy iu respect of these contracts? Witness:) As far as Mr. Levy is conceded he has always met the Department in every way, and has seen that thil:gs were put nght. And were it not for his efforts there would have been delay in getting the Main Body away Is not that so? — "Yes." s Then can you understand a man who has done so much for the Department taking tho risk for tho sake of £80 or so? Mr: Macassey: I object to this question. His Worship: He can only give an opinion, anyhow. Mr. Myers: Very well, I will not press it, but can your Worship imagine a man for the sake of £80 taking a risk with contracts running into £25,000? Mr. Gray: £25,000 to date ? . Mr. Myers: Yes, to date, and' all .that's to follow.

Use of Cotton Denounced. John L. Morrison, representing a London firm of v Hosiery and glove manufacturers, 6aid that he had, at the request of the Minister of Munitions, associated himself with the Munitions Department in the matter of arranging clothing contracts. In December of last year a meeting with manufacturers was held, and it was stated that only linen thread was to bo used for the seams. A reputable, tailor would not use cotton, but linen thread'. Mr. Macassey: Why is linen thread stipulated ? Witness: Because it gives a longer life to the garment. Do you reckon it necessary in military garments?—" Yes, particularly if they are going abroad.". Did you visit defendant's premises? —"Mr. Kirkcaldie and I went to Levy's factory on July 11, and saw only Buffalo cotton being used for khaki g<ods. Mr. Harry Levy gave Sir. Kirkcaldie the reel of Buffalo cotton produced l in court, and afterwards admitted that that kind of cotton had been used on garments, except the overcoats. Mr. Macassey: Did you xako any action? Witness: We told Major M'Cristell not to accept any more garments from Levy's until the matter was settled. Is Buffalo cotton a good class of cotton? —"I should say it is the poorest cotton obtainable." Mi-. Gray: Are you aware that army garments made in India are sewn with cotton? Morrison: Those are garments which will be washed—will have the perspiration washed out of them—not tweed garments. Well, do you know that cotton is used in the English garments made for the troops?—" No. Wo have had advice to the contrary.". Do you know that the Minister has given "notice to Levy terminating tho contract? —"Yes." And many garments have been thrown on his hands?—" Yes." Witness said also that the prico of linen thread ivas 12s. lOd. per 9600 yards, and Buffalo khaki cotton 7s. ljd. for tho same quantity.

Surprise Visit <to Levy's. Sidney Kirkcsildic, managing director of Kirltcaldie and Stains, Ltd., who also assisted (by request) in the arranging of tho clothing contracts, stated that even "reach-me-down" clothing sold by a reputable house would have Hie seams sewn with linen thread. . . Mr. Macassey: Was your_ visit to Levy's factory a surprise visit? Witness: He did not know we were coming. We wished to verify reports we had heard. Harry Levy saw you subsequently ?— "Yes, wlieu ho mot us by appointment ho admitted that he had used cotton in tunics, trousers, and pantaloons, but asserted that he had used linen thread in great-coats." Did he make any comparison as to quality? —"He said he thought tho cotton was as good as tho thread."

Is it?—" Buffalo cotton is the poorest you can buy." Do you consider those uniforms sewn with cotton would be serviceable?—"l consider they should not be issued to Expeditionary Forces." His Worship: Why? Witness: Because I don't think they aro serviceable.

Charles K. Wrigglesworth, employed by Robert Malcolm, Ltd., who supplied Levy with Buffalo cotton, said that Buffalo khaki cotton was good cotton of its kind, but was not strong enough for use in the seams of khaki suits. ; Levy Writes to the Minister. _ Defendant's counsel put in the following letters: — 1)10111 Levy to the Minister of Munitions, July 31, 1916: "Can you advise me as to when tliero is a possibility oi a solution of my affairs, as there is about £17,000 owing me by the Department, and I have £6000 worth of new goods ready to bo delivered, besides £6000 worth of khaki tweeds in my factory. .... You will see that I am fairly tied up." To the Minister of Munitions from f{f v y,s solicitors, August 4: "Wo have ™ e honour to address you on behalf ' Levy, who has a contract with your Department for the supply of clothing for military purposes. Mr. Levy has noticed that a question haß been asked in Parliament with referonce to tho difficulty that at present exists between him and tho .Department, und it might be inferred from tho question put m the House and from tlio Ministerial answer that the contractor concerned had been guilty of supplyln" inferior articles, with a view to making substantial personal profit. As wo understand the. position, the specification wider which Sir. Levy is now supplying clothing provides that all seams are to be sewn with linen thread equal m quality to Knox's No. 60. Mr. Lovy has not, for some time past, been personally supervising the work done in his factory, and it now appears that those who, have been attending to tho supervision of the factory have allowed the seams of a great many of the'garments to be sewn with cloth thread instead of linen thread. •' For this lax supervision, of course, Mr. Levy recognises that ho must accept responsibility. But the point that "we desire to emphasise is that the use of cotton thread ??.,?°' i ■ for the purpose of making'an additional personal profit. We are instructed that a reel of linen thread contains 750 yards, and that about twenty-five yards are required for each garment, so that each reel is sufficient for thirty garments. Taking tho whole of the garments supplied under the existing contract as being 50,000, it will be seen that about 1700 reels of thread would be required. Each reel of linen throad costs Is. Id. The total cost, therefore, of all the linen thread required for about 60,000 garments would bo in the neighbourhood of £90. Cotton is about 40 per cent, less in cost than linen thread. It will, be seen, therefore, that the difference in cost to Mr. Levy as between linen thread aJid cotton thread, supposing cotton thread had been used for the whole of tie 50,000 garments would only he a little over £30. It seems absurd to think that cotton thread would be deliberately used instead, of; linen thread, and that the risk of trouble and difficulty would bo taken merely in order to make such a paltry profit. It seems much more easy to believe that the use of the cotton thread' was duo to carelessness and lax supervision..

What the Trouble Means to Levy. "Mr. Levy has been, for many years past, a contractor _ for the supply of uniforms and clothing to va-rious Government Departments, and ho never, up till now, lia<l any difficulty with any of the Departments or any complaint made by any of them. Further than that, he and his staff for many months after the war commenced worked night and day for the_ purpose of meoting the military requirements, and his efforts contributed considerably to tho successful dispatch of the troops. Mr. Lev.y recognises that lax supervision in Ins factory, for. which he has to.accept responsibility, has placed him in a difficulty, and he feels very keenly the fact that inference adverse to him may be'drawn. He is desirous of meeting the Government in every possible way. As already pointed out, he instructs us that even if all the 50,000 garments supplied since February were sewn with cotton thread—though a groat many of them were not, but were sewn with linen thread—the total amount at stake so far as he is concerned would only have been about £30. He has in stock at tho present time about £6000 wortlr of garments, some of which had been sewn with cotton thread, but when the difficulty recently arose he had every one of the /garments sewn over with linen thread to conform with the specifications. To sew over 50,000 with linen thread would cost several hundreds of pounds, and Mr. Levy is willing to sew over with linen thread every garment now in the Defence St*res supplied by him, and which may have been sewn with cotton thread in the first instance. He is also prepared to tfo anything that is reasonable within his power to rectify the unfortunate error that has arisen. It is not the question of money about which Mr. Lovy is anxious. He recognises that if there is a monetary loss lie must bear it. What he is anxious about is'that he should be able to show tho Government that his actions have been bona fide and that the use of the cotton thread was not for the purpose of making an enhanced profit. "Mr. Levy will bo very glad to give any person or persons whom the Government might see fit to nominate for the purpose any information that he and those who were directly resp'on-. sitile for the management of the can give. He recognises that in the public interests the matter is ono that requires investigation by the Department, or by some independent person or persons nominated by the Government, and recognises that the Government may desire, in the interests of the public, to lmve any necessary inquiries or investigations made promptly. We have already said that Mr. Levy is prepared to do, and desirous of doing, everything in his power to rectify the unfortunate mistake that has happened. If necessary lie would be quito willing to abide by the decision _of arbitrators, or by a Royal Commission, or of any independent person who might be appointed by the Government, as to what should be done by him in that direction. If the matter were dealt with in this way we suggest that if could be dealt with and the matter decided promptly."

Levy Proposes Terms. From Levy's solicitors to the Minister, August 14: "Referring to the conversation that Mr. M. Myers, as counsel for Mr. Levy, had tliis afternoon with Mr. Adaius, Mr. S. Kirkcaldie and Major M'Cristell, we have the honour on belialf of Mr. Levy to make tho following proposals for the settlement of tho difficulties that have arisen in connection with Mr. Levy's contract: — "1. Mr. Levy is prepared to rectify to tho satisfaction of the authorities, and, if desired, under supervision, the garments referred to in Major M'Cristell's letter of the 12th instant as being rejected. Wo may say that tho cost to Mr. Levy of rectifying these garments will approach the sum of £500. "2. Mr. Levy has in stock garments approximating the value of £5000, which have all beon rosewn and are in order. He respectfully asks that these garments be taken over by tlio Department, subject, of course, to their being found to comply with the specifications. "3. Mr. Levy has also made up garments to the value of approximately £3000, which aro complete except for | hooks and buttons, to be supplied, wo I understand, by tho Department. Mr-

Levy asks that the hooks and buttons be , supplied, and that the garments when completed be taken over by tho Department subject to their being found to comply with the specifications. "4. Mr. Levy has also in 6tock khaki cloth to the value of approximately £5000 or £6000. Ho asks fiiat he should bo allowed to make up this cloth, and that the Department should take over the manufactured garments' subject to their being found to be in accordance witli the specifications. "5. Mr. Levy recognises that of the 85,000 garments, or thereabouts, which have been taken over by the Department under tho existing contractapart from the 15,000, or thereabouts, referred to in Major M'Cristell's letter —a great many were sewn with cotton thread instead of with linen thread, as specified. He recognises that there is a legitimate claim against him in consequence. As explained in our previous letter to you, the actual monetary gain, from the use of cotton thread instead of linen thread is trifling. Mr. Levy's position was explained by us in-, our previous letter. He recognises that the claim of the Government cannot reasonably be limited to the small amount representing the difference between the value of the cotton thread and that of the linen thread. If those of- the 35,000 garments which were 6ewn with cotton thread were still available, Mr." Levy would gladly have resewn them with linen thread, and this would have involved a cost to him pf some hundreds of pounds. Ho has, therefore, instructed us to express hiß willingness to pay the Government the sum of £1250. or to 6ubmit to the deduction of t-nat amount from the moneys owing to bim, this amount to represent damages for the use of cotton thread instead of linen thread in respect to so many of tho 35,000 aa were sewn with cotton thread.

Cancellation of the Contraot. "Mr. Lovy desires us to express Lis very great regret' at. the unfortunate incident that lias happened. For a great many years he has been a contractor for the various . Government Departments, and has never bad any complaint made in respect of the work done by him. He feels tihat if he had himself remained in personal oharge of the factory the present difficulty would nearer have arisen; but ho had lrft the management of the factory to ethers, and for their acts he has to accept responsibility. He hopes that the Department will see its way to accept the proposals which we have undo in this letter. "Mr. Levy is also in receipt of a notice from the Minister of Defence ratifying the cancellation of the contract. Tho proposals made above have 110 reference whatever to the question, as to whether or not -that cancellation should remain. Mr. Levy recognises that this is quite a separate and independent matter for the consideration of the Government, but he ventures to hope that, having regard! to the explanation that lie has made, and to the fact that this is the first occasion during the course of many years contracting that any difficulty has arisen —and that difficulty is not due to hiß personal default—the Government will 6ee its Tray to withdraw the cancellation and allow the. contract to continue. Mr. Levy, has a great many persons in his employment, and it is difficult for him to decide as to, the future conduct of his . business until he knows what attitude the Government finally decides to take. .In these circumstances we feel ture that you will let us have a reply at the earliest possible moment in regard to this aspeot of the matter, as well ts to the proposals made for the settlement of the existing difficulties. This letter is without prejudice." The chse is to be continued this morning.