DEFENCE EXPENDITURE

Dominion, Volume 11, Issue 270, 3 August 1918, Page 8

DEFENCE EXPENDITURE

REPORT OF THE COMMISSION

"A GREAT WORK WELL DONE"

PIQUANT COMMENTS ON FAULTS

PRAISE FOR THE DEFENCE MINISTER

"In. all essentials the administration has succeeded. A few instances.— .£40,000,000 spent and no frauds. An army of 100,000 men excellently and fully equipped, and carried to the other end of the world. A declaration by the most responsible public man four years ago that, thip-tould bo done by New Zealand would have been described as "rhetoric"—or worse-. Supplies have been purchased well, and, although the actual purchasing has been done outside the Department, miljtary officers have been responsible that quantities havo been sufficient and not excessive. . The bargain for transport vessels is the most favourable that can be learnt of anywhere. • Your sick and wounded have been tended with efficient and fander care . both here and abroad. At Galiipoh your hospital ships won such a name that the wounded of othe ,- forces counted themselves most fortunate to be transported on them. "As to tho Minister of Defence, for reasons that will occur to Your Excellency we shall refrain from expressing herein our opinion further than *o say that we envy him in the years to come his memories and his reflections on the work he has done. Criticism will, dur-, ing the war,, specially rage about the Minister of Defence, and he may gather grim comfort from the knowledge that 'censure is the tax that a mnn pays to the public for being eminent. , '" ' In these paragraphs tho Defence Expenditure Commission summarises its opinion, in the report just issued, on th« war activities-of tho Department of. Dγ fence. It should be explained that it was tho concern of the commission to deal, only with financial and business matters, and not with military matters, but as the report will [.how, the line of demarcation was not at all times ciear. and the commissioners have had to make reference to military concerns. The commissioners were: lirigadierGeneral Sir Hobert Murray Jl'Cheyne Anderson, sometime Quartermaster-Gene-ral of the Australian Imperial- .Force abroad; Mr. Peter Barr, of Dunedin; and Mr. Charles Rhodes, of Auckland. Unfortunately, during the time that the commission was sitting, Mr. Peter Barr suffered a serious breakdown in health, and , he did not sign the report, or take part in the final preparation of it. Following are the important enctiong of the report :~r Assistance from Everybody. "Tho Minister of Defence luade It clear to us at the outset that he was most anxious that nil information in the Department should be opened up to ns, and promised us the fullest assistance in his power. All through our nuiuiry ho has shown that desire in a practical way, and often at personal ijiconvenienee. I'lw instructions that he issued to his" ollicers on. the. same lines have been faithfully carried, out, and we havo had tho fullest and most courteous assistance from all .with whom we have ben brought into contact in tho Department. In short, we have.experienced no hindrunue of any kind."The General Officer Commanding cordially seconded'the .Minister's efforts to niuko us .thoroughly acquaictcd wifi the Department's history and methods, and issued orders throughout all tne Department's branch.es . instructing that leave be granted tn oil, irrespective of rank, to givo evidence before us; ami many availed themselves -of tho privilege, njid were evidently under no constraint. . ' "It must be understood that an inquiry of this kind has to do with faults and failings, and unless this is borne in mind a wrong impression may be gathered from our report. Broadly, our opiuion is that a great work has been well done. Wo shall indicate faults and shortcomings, all of which, fortunately, can'be easily remedied. And'errors were bound to occur under the conditions in which the Dominion suddenly found itself called upon to wage.war, without warning and with scant previous preparation.' "Tlio following return indicates concisely the task the Department has had to curry out:— Progress of Expenditure and Number of Troops Handled from April, 19H, to ■ April, 1918. A—Expenditure. £, £ Year ended- March 31, 1914 - 518,756 Six months ended September 30, 19H 513,293 Six months ended March 31, 1915 2,172,900 . 2,686,103 Year ended March 31, 1916 6,381,rM Year ended March 31, 1917 : 14,712,309 Year ended March 31, 1918 15,135,858 li.—Forces Handled by Department. Pro-War: "In 1914, before the war, the strength of the Defence IVcc war:— (a) Territorial Force—all ranks 33,000 (b) Senior cadets 30,000 (c) Uifle clubs 8,000 71,000 Since War Commenced. Territorial Force maintained— (a) Territorial Force 22,933 (b) Senior cadets 30,1i6S (c) Rifle clubs 7,252 60,853 Ficm August, 191-1-, to date, 1918, tho Expeditionary Force requirements handled by the Defence Department were: — *(n) Before September, 1916, estimated' -number of men 'handled between August, 19H, and' September, 1916, rejected More entering into camp 50,000 *(!;) Before September, 101(1, men discharged from enmn as unfit for service abroad ~. 4,476 (c) After September, 1918, total who, nlthough volunteered or drawn by ballot, weio found on examination riot medically fit, or for oilier reasons were not sent lo camp 75,355 . -■ 129,831 (tl) Total'gone abroad, in camp, or wearing uniform for general service : 111,055 301,739 'Before September, 1910, recruiting was voluntary only The G.O.C. "Your Excellency, by virtue of your office as Governor-Geiieral, is Comman-dcr-in-Chief of Iho New Zealand ■Military Forces, and the Minister of Defence is in control of the Department and responsible to Parliament. Under him is tho General Officer Commanding, through whom the policy, of Ihe Government :e enforced, and to whom the Minister looks for advice. Under the General Officer shoald come the Quartermaster-General, responsible for nil administration; but the two offices »f General Officer Commanding and Qiiarteriniister-ttoncral, sinco the departure of the Expeditionary Force, havo been united in one man. Tho Genoral Officer Commanding at that:

timo went on active service in command of the New Zealand Division, and the most experienced officer had to hn left behind—which was a serious blow lor that officer—to train and dispatch troops and conduit the operations of the Expeditionary Force generally at its home base. The. present General Officer Commanding was at the- time QuartermasterGeneral, and purely as a matter of economy, ns it was not thought the war was going to be the long affair it has siace turned out, it was decided to combine the duties of these two high offices. The time has liow come for a clear division of those duties, because they often clash. Tho Administrative Department is only e. portion of the Army machine, and the General Officer Commanding should therefore be the ultimate court of appeal in case of dispute. But because the General Officer Commanding, as Quartermaster-General, has to deal with administrative matters, it is natural enough that the officers charged with the training branches, which should bo kept quite separate Mid distinct from administration, should havo got into tho habit of participating in matters quito outside their true functions,' and thus the two sides of military procedure have become mked. The Genoral Officer Commanding has only Iwen able- to carry on these two important offices by au enormous amount of labour and overwork, which, going on for years without break, has made serious inroads upon his health. '.'The administrative side, as shoivn on tho Quartermaster-Generals chart, comprises equipment and ordnance stores, nnaucial services, movements and quartering, supplies aud transport, construction and maintenance; and veterinary services. The General Officer Commanding should really be what is known in a private concern ns general manager— supervising tho whole, doing as little as possible of detailed work himselt, but seeing that the work of the Department is carried on economically and efficiently. Above all, he should have ample leisure fo- reflection, so thai his judgment may bo cool and unhurried. It is clear to us that the combined duties of General Officer Commanding and QuartermasterGeneral could not havo been performed had the work been entrusted to a less practical man than the General Officer Commanding, and had he noi had tho energy and sustaining power of such a man as tho present Minister of Dcfenco behind him tho whole administrative system would have been, in our opinion, in serious jeopardy, instead of having achieved, as it has done, a great measure of euccess. We are of the deliberate ODinioii that this is largely due to tho Go.ieral Officer Commanding's close application to his work, his wide practical knowledge of local conditions, his sympathy with, the officers under him, and his long experience as a-citizen soldier. All Have Done Their Best. "The branches under the circumstances outlined have boon left without the necessary co-ordination, and their success has depended upon the initiative and the strength of the officers in charge. It can safely be said of each and every one of thcm'.that he has given of _the best that is in him, and in adversely criticising somo of those officers it will be understood that they have failed not in will but in skill. "In each of the four milittry districts —Auckland. Wellington, Canterbury, Otago—a colonel is in command, and under him an administrative section in miniature oj Headquarters. Quite clearly there are too many officers on the payroll,. ospecia)ly in view of the reduced Territorial training. There have been several efforts to take this matter in hand with a view to pruning and consolidating the number of officers at General Headquarters and in tho districts; but tho work has piled in, tho eenior officers were overworked and could not pause sufficiently long to organise, and, in short, it was the business of-nobody in particular. "In October, 1917, the General Officer Commanding summoned a conference of officers commanding districts, discussed the question of the reduction of staff, aud asked them lo make recommendations. These officers duly submitted recommendations which showed where good savings could bo effected. Some were at once carried out; others were postponed liecnuse of the appointment of this commission, it is amusing to note, however,' that the suggestion of the. Officer Commanding the Wellington District, pointing out where savings could be effected amounting to .£17,000 a year, was coldly received and commented on by the Adjutant-General—not so much becauso, he doubted the possibility of' making this big saving, but because the Officer Commanding the District 'had' gone "beyond tho order of leave,' as it were, and suggested tho lopping-ofi" of excrescences which' had not been included in the subject-matter of the conference! "Administrative appointment havo often gone to combatant officers, aud it would seem that when certain offices were to bo filled a niaii was chosen more because of his military ranlc than because of his knowledge of and fitness for the duties required to be performed. But there is a vast difference between a successful combatant and a successful administrative officer, and Hie former might lose a fine reputation if misfitted into the. latter. Scornful derision would greet the appointment of a paymaster, no matter how skilled in fiuaucial intricacies, to direct troops in the field; but the selection of a training officer to command the Army Pay Corps would, until recently anyhow, havo excited, no unfavourable comment in tho Army. No Co-ordination. "Tho Director of Movements and Quartering, for some reason not clear, seems to havo drifted into the position of Assistant Quartermaster-General. This of-. fleer, on being asked 'Have you ever offered bonuses or other inducements' to men lo make suggestions for the betterment or simplification of your system, or art> men. promoted as a reward for good suggestions?' answered, 'I understand this question has been considered by the Chief of the General Staff, but deemed inadvisable. 1 concur. It is the duty of an officer to give of his best, and rewards come by promotion for good work.' We did not insist upon proof ot that statement. It is not surprising to find an officer giving such an answer valiantly defending hi:i own rebuking, of his subordinate in the Auckland district for spending i«. lid. to slop a bath leaking, without previous authority; or that ho should write (only in January of this year) to tho same subordinate, who had asked the Public Works Department to carry out. as a. matter of urgency, repairs to a wafer-closjt at a cust of'a few shillings, 'With reference to your memo, of January 17,' please liots that in all matters of this description a. report must accompany application for authority. The question of responsibility must bo gone into and settled before repairs at the expense of the public can lie carried out.' And all this over an ex ; penditure of loss than J;l to prevent a serious leakage on account of the disrepair of a closet!' The same officor was asked, 'Do you mal; 0 an index of jntitructions issued to districts, and. if so, do you send regularly a copy of the index'lo each district?' Tho answer was, "I'llis is ii matter of general departmental policy, and 1 am not aware of tiny direction that such an index should bo supplied to distrk-tsS by branches of tho Department, or of its being done.' Ovar Centralisation, ■ "There is evidence of over centralisation at General Headquarters. It may arise from an excessivo desiro on the >art of General Headquarters to (retain

too full [lowers and 1.0 attend to details which would be more safely and wisely 1011, to subordinates; or from having to give attention ■ to detail, which'may bo tho result of inefficiency. and want of initiative, on tho part of subordinate officers; or probably it is the result of tho absonco of the co-ordination of the various branches in Wellington and in tho districts, nnd from failure to mako sul> ordinute officers thoroughly understand their powers and duties. A witness succinctly put it thus: 'Branches are apt to regard themselves as watertight compartments. If not checked, the Defence organisation will bo akin to a loose confederation of small (states, each exercising sovereign powers. At present there is some danger of different decisions and conflicting opinions being conveyed to the Minister and to the public, 'i'ho policy should ba to encourage- initiative, decentralise .responsibility, centralise control, and to repress tho tendency of officers to increase the work of their branch without duo consideration as to whether work is really necessary. , ' "The tendency of General Headquarters to interfere in details respecting camps arid districts relieves the officers in charge, men of high rank, enjoying generous remuneration, from responsibility, and discourages them from initiative. We met many intelligent and capable officers in districts and camps who were quite qualified and prepared to carry much nioro [responsibility than is permitted to them at present, and who would use to Wie occasion it tlis opportunity were afforded them. "An officer having full and intimate knowledge of camps should be at General Headquarters, and the staff of tho latter should as far as possible be exchanged with men in camps and districts. Headquarters deal with pa-pea's; camos deal with men. "The scientific branches of military service—engineering and artillery—probably suffer in the absence of any separate officer on tho Headquarters Staff with, an expert knowledge of these services, No Encouragement of Initiative, "In few cases, if any, ver-s we able to ascertain that the bends of branches regularly summoned conferences of their subordinates stationed in various districts. Perhaps this was due to excess of work and want of fitting opportunity, but we note with pleasure that it is intended in the future to hold such conferences, when men from districts—whether I officers commanding districts or' officers in. charge of district branches—can meet together at Headquarters under the sympathetic guidance of their superiors and discuss each other's difficulties, failures, and successes, and be encouraged and strengthened by advice from their chiefs at General Headquarters. Conferences of this kind cannot fail to do pood and to stimulate initiative. More than once wo had evidence that what an officer from a district was in Wellington anil would call, honing to be able to discuss matters with tho chief of his branch, ho found that tho latter was fo busy doing personal work that his door was locked and he was not' available. The industry of such a man may be commendable; but lie is neither an organiser nor a successful leader, and the net result of his individual effort so applied is probably a saving of a penny at the cost of a. pound. . "Wβ feel bound to say that we have seen few, if any, cases where, initiative lias been encouraged in under-olflcers, either withii General Headquarters or from tho latter to the districts. On the other hand, there have teen plenty of instances where, suggestions which seemed quite well.worth while inquiring into; from districts to General Headquarters, havo been coldly received; and the officers in districts have coino to the conclusion that it is more pleasant to 'carry on' than to suggest better schemes or departures from well-trodden paths, "lu euch branches as stores, supplies, transport, training, and pay, difficulties must continually arise; and conferences between the officers concerned for the solving of these and other recurring difficulties will prove very valu-ible, not the least advantages being a better feeling than is' now evident between eome of the heads of branches at Goneval Headquarters and their subordinates in districts. "Well Down Into His Groove, "An instance of a man satisfied with things as they are—be they good, bad, or indifferent—and who has got well down into his groove, is tho Assistant Director of Supplies and Transport at Auckland. Tho method of accounting for stores at small camps was' not good. It was alleged by. the officer who had been in charge, there, admitted by officers in oilier districts similarly situated, and shown by the system itself, that it was not capable of manipulation, but that it was sometimes manipulated in order that stocks might bo made to balance with stoves requisitioned and distributed. Fraud was only suggested as being more potential than actual: but, either from carelessness in failing to record distribution or for other reason, when tho book balances did not tally wilh stores actually on hand, alterations were made to reconcile them. This Auckland officer, on being questioned on the matter, admitted that he was not completely satisfied with the methods in use; but he also admitted that ho hnd made no' suggestions whatever , for betterment, nnd the only leason ho could give' for Jiot doing so was that lie was a soldier. His own words were: 'I am not prepared to say that the thing is good-or bad; I leave that to my chief.' And when asked: 'Because a course is laid down for you, you will follow it without any suggestion for betterment?' ho answered, "As a soldier I am compelled to do so." Could anything be more ridicnlous? This officer'draws for pay and rations «£3SG 10s. a year; but wo elicited the candid expression of opinion from his chief, the Director of Supnlics and Transport, that a man of this typo might get in outside employment M a week. It is fair to quote, per contra, a sergeant-major under the Assistant Director of ■ Supplies nnd Transport in tho Canterbury Military District, who lias been complimented by the Director.of Supplies and Transport on curings directed and the methods in which lie lias carried out his work, nnd has been recommended on several occasions for promotion to commissioned rank, such promotion being not approved simply be- ' causo no vacancy has occurred. It would not take long in private employ, or in any other conoern governed by its' profit and loss account, to make and fill a vacancy under the conditions outlined above. "Some officers at General Headquarters frankly admitted to us that for want of time to visit districts, anil of opportunity to get into closer touch, with outlying subordinates, they hnd July during tho sittings of this commission be--1 como aware of sonic existing diificultieb. Ono officer mentioned in his evidence, 'I. was unaware that so many instances of delay had occurred until .1 received newspaper, reports of the- evidence given before your commission in districts, ami remedying instructions. were at once isoiied.' Trainina for Administrative Officers. ( "We found in the districts many casts of friction and resentment en the part (if outlying units at the difficulty in obtaining supplies. It whs ?scribed to flip multiplicity, or ignorance, of the regulations. But when we arrived at Headquarters we found that the regulations were often quite guod, only tho men in the districts had received no training in their special, and oftentimes technical, work; hence tho vexation that was evident. "Vie wore surprised to find that the officers-in charge of the branches at Hcwlqtiarter.s jrcre not con suited, and had no say. in the appointment of their subordinates in district*. . Not only was their advice nut fought, but whon given regarding an appointment it was usually ignored. It was curious tn find Hint Ihe Adjutant-General or the Chief of the. General Stnfl had to do with appointments to administrative branches outside (heir control, and with tho duties (if which they could not bo thoroughly fnmiliiir. It is therefore clear to \is Hint all administrative officers (and with other branches this report is not concerned) should be carefully trained beforn being sent out to districts or hospitals and convalsscont homes." Medical Examinations. T!i<> Commissioners consider it was inevitable that the standards of medical fitness should havo varied in the early years of tho war. It was difficult then to establish any definite standards to

which all examining doctors could conform. These variations (for instance, heart affections, flnt feet, varicose veins, etc., where divergence, of opinion could honestly arise) account to a considerable extent for the rejection in England of men found iit here, and for the miensionnl alteration in a man's status when reexamination takes place here by a second ' Medical Board. To improve .this condition members of Medical Boards were sent to Trentluim for instruction in standards and to get a better appreciation of tho work recruits lisul to perform. Gradually relurned military doctors with knowledge of the. strenuous conditions on active service were appointed to positions on standing Medical Boards, and the District Boards were eventually Tcduced to cighf. Co-ordination of standard is improving; but even yet "doctors differ." Medical science is not an exact science, a,nd doctors are not infallible. Carping Criticism. "Carping will always be indulged in," etates the report, ''but the following is a flagrant instance of vain imagining: A uniformed clerk in No. 5 Group, with a wife and two children, thus receiving lls. Gd. a day for seven days per week, and therefore, on tho face of it, presumably an intelligent and reputable man, actually swore that 'fit . A' men,had influence to get passed ?.s 'C 2' (permanently unfit). When pressed he named two members of well-known New Zealand families. AVo sent for tho papers, and thereon it was clearly shown— "Cnso of H.l.—Examined by Medical Board; declared '82-' (doubtful), and postponed for two months. He was re-ex-amined after that period by another and entirely different board and classed 'C 2, (permanently unfit), with full and clear reasons appended. "Case of J.L.S.—First Medical Board to examine classed him '82.' He was examined three months later by another board and classed 'C 2' (permanently unfit), l'lill reasons stated, amply justifying the decision. . "When a voluntary witness, an emploveo of the Defence Department, on ,oatn, gives such an extraordinary perversion, can one wonder that members of the public, with no such opportunities of obtaining: knowledge, should sometimes cherish erroneous opinions?" Final Medical Appeals, The commissioners note that "the popular and natural impression" is that the final Board of Appeal in cases of medical re-examination is tho DirectorGeneral of Medical Services, who etated in evidence that he had dealt finally with G2 cases of appeal which were more or les.s difficult or unusual. There does not anpeur to be preciee authority for any single man being a medical hoard, and tho commissioners consider that in order to prevent any misunderstandings reexaminations should always be made by a full Medical Board of three, pnrticularly if the applicant should finally have to be classed "02." We further recommend that when men hn.ve been recxainined and finally classed as "C 2" (unfit for service beyond the seas), their nnmes, occupations, abodes, and the grounds on which they have been exempted shall bo forthwith gazetted, which was probably the intention of Parliament'(vide Section iS of the Military Service Act, 1916). "Returned Tourists." It is stated that 1167 soldiers have been returned to New Zealand from abroad medically unfit, without ever having been in Uie iirins line, fcjonie were sent back on account of being over age, others on account of being under age; some developed diseases after embarking—such as pneumonia, bronchitis, rheumatism, aud surgical disabilities—for example, ruptures and flat feet aggravated by strenuous training at Sling lollowing the softening effect of the long voyage, by sea. Others were, returned having bee:i rejected on account of changes in the Imperial Army Council standards, varied since they enlisted, "For instance, at ono time men blind of tho left eye or suifering from slight rupture would be accepted," states the report. > "These regulations were afterwards made more stringent. > Also it must be remembered that gallant fellows, anxious to get away, deliberately misled tho authorities as to their" physical conditions. The cost of training, -maintaining, and equipping a man, and of getting him as far as.Sling and back, is on tho average £150— amounting for 1167 to ,£175,050. This is supposing allthose nieri wero single men, aud is worked out on the basis of sixteen weeks in camp here, 6eveii weeks' voyage there, ceven weeks returning, seven weeks in England Ftuirtywseren weeks in allwhich is certainly less than the average tinio experienced. Ksviniating that these' mo;i could have' been pursuing their ordinary callings, on a low -scale of pay the average earnings per man would be £130, a total of £151,710, making tho loss to the country ,£326,760. This ie putting the position in its worst aspect; but it will be seen 'that the percentage, whether in men. sent from here or of tho amount expended for the Expeditionary Force, ie so small as to be negligible., In other Dominions die percentage of returniugs has been much greater; in Canada and Australia, about tour times as much. But they give tho smallest possible time to training their lroops before shipment, often only a few days; so that the long training here of four months give much 'greater opportunity for culling out the unfits, and the coat of having a email proportion, of uniiis returned is so very much less than the cost of the longer training for tho whoie. "Probably also the fact of the men being in training here for four full months indicates no necessity for urgency in finally examining medically—hence certain slackness. But the case of the •Irawa, where it was found that out of a small shipment of -485 men actually 168 should never have left New Zealand, caused somewhat of a sensation, and the system was tightened up. In spite of all that can be done, the country must expect to luvo some 'returned tourists from abroad who have never eeeii the firing lino; but thsie is no evidence to show Vval medical examinations have not'been painstaking and satisfactory. We are convinced that- the New' Zealand Meclitiai Corps is. entirely io bo depended upwi. The CI Camp. "The establishment of a Cl Camp was a very interesting experiment, and results eeem to fully justify it. Tho total number of men arrived in camp to March 1 191S, was 3395; tho number discharged ultimately as 'unfit , was 1201; the number sent to reinforcements as 'fit A, 1163; and there were remaining in camp tae balance, 1031. It will be seen, then, that 49 per cent, of those finally dealt with we:e niado fit to enter reinforcement training, and we find that of those bjper cent, wero finally rejected, which means ultimately that, roughly, ■Iβ per cent, out of the men who go into camp are raised from Cl to A class. / ; "Vague statements were placed, before us ihat many of those men, ultimately rejected, sufferel • seriously in their health from the training they were put to but wo could find no, evidence to support euch a.'statement., 1 here may havo been odd cases in which.tho trainins' had a prejudicial effect on the men s health, but they are extremely few, mid tho impression left on tho mind was that, apart from tho value of the existence of this camp from a military point of view, it was serving a useful purpose in assisting the health of the communi.y by increasing and establishing the, stamina and physical standard of a large number of men. Without a question there are many men in Now Zealand who have lio idea of being soldiers who would.be. greatly benefited by a course of training in Cl* Camp." The Dental Service. The New Zealand Dental Corps is considered by the Commissioners (o be doing valuable work, but the report suggests that the system of payment is unnecessarily generous. "The Uontal Corps is now well established, Mid comprises forty-two officers in New Zealand nnd thirty-four sen-ing abroad, with necessary mechanics and orderlies. The organisation appears to us to be gwd, and there can bo no question as to (ho necessity for, and value of, tho actual work it is doing. Evidence tendered to us showed that tho dental system in- vogue saves tho Slate about £19.000 per year even on the specially reduced fees originnlly arranged by dentists for soldiers' work when working individually without adequate organisation. The Dental Corps-now obtains some oHk'rs- and mechanics frnm the ranks, who come in under the Military Service Act. Queslioncd us to the fairness of giving any of ilicse men professional pay of 10s. a day (enjoyed by all dentists in addition to pay and allowances of rank), the Director of Dental Services thought the allow-

ance fair, as the Department did not. train tho dentists. He, ho jit aver, admitted that there wa3 something to be said for the contrary view—that immediate promotion from the ranks to lieutenant's pay (£21!)), plus field service allowance of £51 15s. and wife's separation allowance, if married, of £51 155., is substantial enough without lidding .£lB2 10s. for professional pay, particularly as no other army appears to be giving such generous terms." " Military Service Boards, . The number of. military service boards is not too large, but an anomaly exists in the payment of £1 6s. a day, with 15s. travelling allowance whea away from home, to each of Ihe Magistrates acting dfi chairmen, in addition to them - full salaries ns Magistrates. It appears that these Magistrates, after allowing for all expenses, are drawing upwards of £SOO a year more' than if they had been retained for court work. The Commissioners suggest that tho employment of special military representatives befOTe the boards is not necessary. The group commanders could do ,the work. In any csse it seems unnecessary that Ihe miliary representatives should wear -uniform, and preferable that they shoald not do so. The Territorial Force. "The testimony of witnesses whose opinion is considered well worthy of consideration agreed that more was due to the work done ou the Territorial Force in tho short time of its existence before the war than was at present understood, and that it was most desirable, in spite of present manifold distractions, to keep the machine moving even fit a slnir gait, for if it wero allowed to stop tlie task of storting it again would be huge. Too Much Telographinn. The commissioners consider that there is "far too much telegraphing" by officers of the Defence .Many of the telegrams are not necessary at all: letters would do just as well. Manj telegrams of no special importance art sent ''urgent," thus'lncrcaaing the expense and interfering with other telegraphic business. It would bo well if some method of check could be arranged wheruby the Post and Telegraph Department would report periodically to the Defence authorities, for there is really a. large amount of money wasted b.v Defence officers in excessive telegraphing. RECOMMENDATIONS FAULTY ADMINISTRATION. ■The commissioners proceed to make the following recommendations:— "A perusal of tho foregoing will rtiscloso that in our opinion, the organisation of tho Defence Department on its administrative side is faulty. The trouble lias comn about through the casual addition of branches necessitated bv die Department's growing activities and.requirements, witho'ut a guiding iiand to economically fit them in. The motive was, as herein explained, really economy, and the reluctance to cTeate a new nfticn which would necessarily command a fairly liberal salary. Parliament aud 'the man in the sheet' are rather to blame for, this timidity; for the tendency of a democratic community is to think that new appointments carrying a salary of £1000 a year or more are unnecessary or extravagant. And thus it comes to pass that,while tho lower ranks in the Public Service are pnnorally well paid, mo wondws at the high type and ability of many men occupying important and responsible position in the Public Service receiving only from £500 to £1000 a which salaries, when estimates a-p under .discussion in Parliament, are often made to appear princely, but which avo in reality less than tho rates Tilling i/.itside for hrct.fila« 'men. The fact is that the appointment of such a man would have saved in every week the yearly salary of himself and his necessary staff. / "There are two branches in n military force-'traiiiing' and 'administration.' A soldier naked comes under 'training,' which should drill him, exercise him. and, wlien necessary, -discipline him; but when ho needs clothing, food, arms, equipment, pay, transport, or other such attention, ho comes under 'administration'; and tiiere should be a clear lir» of demarcation. "Our recommendation is that there bo apnointed a General Officer in Charge of Administration, under whom will come all .administrative branches:— (a) Those hitherto under the Quar-termaster-General— equipment and ordnance stores, financial services, movements and quartering, supplies and transport, construction and maintenance, and veterinary services. (b) The administrative branches now under the Adjutant-General, such as organisation, recruiting, Base Eecords, personal efrvices,' excepting such items as deal with discipline and purely -military detail, which shoald be transferred to the Chief of the General Staff. '■'Wβ can find no room in the Defence Department for in Adjutant-General's Branch; but in eaying this we wish it to. bo understood that no reflection is intended on the Adjutant-General, who has 'scorned delights and lived laborious , days' since the war commenced,' and has doiie a huge amount of war work, to the total neglect of his private business. If th-3 Government see fit to adopt these recommendations and split up ihe Ad , - , jutant-General's Branch, and the present occupant of that office is prepared .to Aα further military service, ample opportunity awaits him.elsewhere for Bis ability aud great zeal. "The following recommendations made throughout the report can safely bo carried out:— Audit :- Establish a branch in London. Appoint a representative in each military district. Camps:Chango brigade tystem for battalion system. Reduce establishment. Medical Examination Boards:— "Reduce lay staff of each to three persons. .Gazette names of men reclassified as C 2, giving reasons. .' Pay and Allowances:— Payment of allotments, separation allowances, etc.. should bo lunar, or for one-twelfth of a year, instead of by calendar month. Abolish groomage allowance. Abolish professional pay in certain cases. Abolish field-service . allowances in . standing camps. Establish camp allowance and field allowance on flat rate. Increase pav of lieutenants on staff work in Now Zealand. Increase- travelling allowance of captains and lieutenants. Reduce fees of chairmen of military' service boards. Stores:— Brand clothing and equipment to prevent pilfering. "Let there be no nervousness about departing from customs obviously faulty. Tho excuse that 'Grandfather did ii' is very leaky nowadays. When a high officer, after admitting that certain designations were misleading and conveyed no meaning, was asked why a now departure cou'.d not bo made and common- 1 sense titles substituted, which the world might follow,.he said that New Zealand is too small a country to start innovations. It would not be the first time that New Zealand hnd struck out on newlines, which the other parts of ihe Empire lwd gradually followed with great benefit. Administration. "In addition, wo matte the following suggestions for the guidance of tho occupant of the new post of General Officer in Charge of Administration:— ■ "(a) The branches of Reirniling and Porsonal Services now employ 232 and 22 people respectively-in all 254. If that shrewd organiser the Government Statistician (Mr. Malcolm Firaser) could be prevailed upon" to take- over these services wo are quite sure he would do more efficiently th.in at present, with 150 as tv minimum—probably 200—less hands. In other words, to make our position plain, as wo are aware of the full significance of what wa ore irecommendiriX) if the Government Statistician were given at the very :uoat 100 extra staff he could perform moro' efficiently tho work now done by tho 251 referred to above. "(li) Where possible, all men, irrespective of Tank, employed on purely administrative work should be in mufti. Of course, in camps uniform is necessary. Ouilo an erroneous impression is conveyed to the public;by seeing so many men unnecessarily in uniform. !'(c) Military nomehclatate should fct

simplified. Archaic, designations shouild bo abolished, and common-so'ise and undorstaiidiiblo names substituted, for instanco, wo can extract no meaning from tho words themselves in the titlo 'Quar-termaster-General' or 'Adjat.int-Genornl.' Tho titlo 'Director of .}itj jipment and Ordnance-Stores''should be changed to •'Director of Army Stores,' for tho ono thing he has, and should have, nothing whatever to do with is ordnance; but his Ecopo should bo extended to embrace engineers' stores, _ medical supplies, ami nlso forage and food, now looked aftei by an officer called 'Director of Supplies nnd Transport.' Tho 'Director of PeiEonnl Services' is simply a military legal adviser. 'Tho.principal duty of Hie 'Director of Movements and ijuartering 5 is transports, which could be better left to an expert than to one who admitted tiiai Hie i knew nothing whatever about ships nnd charters until ho assumed this joi>. As to tho true- inward significance of th<> term 'Director of Organisation,' we huvo already a<linittcd out ignorance.. -'W* need hardly say that luo'high-sounding titles of 'Doputy Director' .-nd 'Asswton'DirecW should bo abolished. The- .suspicion is that, a vory fine title like- that commands, oven sympathetically,- "lore, remuneration than a. 'common .or garden variety of chief clerk. The term "Cluei Paymaster' certainly «cein» more appro-in-iato than 'Director of Fimii.cud burvices.. It is an important position, ami will bo moro so if the W«u- Expenses Division is added lo it. The presort director is a good, zealous man who has gained useful cxporien.ee, but l.e does not carry guns enough for the new positionfor which, possibly, a man.will bo lonnd tomewhero in tho Force, suHiea-utly cximrienced and qualified. Perhaps an exchange between the preset director an., another could bo arranged. Ihe Mat « of tho A'ccounting Department should he improved and sustained. "(d) Tho present Director o Equipment and Ordnance btww will, bo tlio righWnind man of tho new Administrator, and his status and emolument should be liberally increased. We found, him to be- a sound and capablo man, toi •whom responsibility bad no terrors. .He had not only a thorough mastery ot the .principles and details of his work, but was shrewd in his estimate ot tlio .value of his subordinates. Appointments and Promotions. "(e) Extreme care should be exercised in the making of all appointments and ■promotions. It would be better that a board should make the necessary representations to the Minister, and it is most desirable that the Defence employees should have close relationship in duty and emolument to the members of the Public Service. For this reason any such board should include the Public. Service Commissioner. A board of this natiiro would be the means of preventing the appointment of unqualified persons- on recommendations prompted by personal liking or desire to seanre employment for a .particular individual, rather than by regard for ths interests of the State. "(f) Administrative officers should be changed round occasionally, as long residence in n particular centre- does not produce tho best results nor.that standard of uniformity which is necessary to a sound system of administration. The relation of tho different branches of Administration, and between the . Departments of Training and Administration, should be that of friends and helpers. Conference should be encouraged, and unnecessary correspondence frowned upon. • "(g) Too much stress is. placed upon tho value of courts and boards. They seem to afford an indifforent' check; and the most reraarknble fonhiro about their 'findings' is the uniformity with/which they agree that 'the value of the same is a fair charge against the public,' or that 'tho public should bear the loss.' "(h) Definite establishments should be provided for all units, and be fixed by Order-in-Council, nnd thero should bo no alteration without reference to tho board charged with appointments. We. have been eurnrisod at the lack or looseness of establishments. "(i) It should be impressed upon officers entrusted with the expenditure of public monpys that they aro trustees, and that thev arc snbfect to penalties for any breach of trust. "A Stern Combing Out." "(j) Wo specially urge that thero should he n stern combing out of tho Defence Department, and a carelul medical examination'of all males of military age, bo that it may be ascertained exactly how many 'A class' meii are employed therein—at General Headquarters, in districts, or in camps—ami why they cannot be spared to go to the front. We are glad to say that we have come across exceedingly few men in the Department who could bo classed as shirkers; but thero aro 'fit' men anxious and willing to go, and tho time eeeins to have arrived when thero must ba sufficient warworn, mon to replace 'fif men in ■ tho Force 3 here. At ■regular intervals, say, of eix months this combing out should continue, eo that no suspicion can arise in the minds of tho public that the Dcfenco Department is falling short-in its duty in this respect. No Evidence of Patronage. "In this connection it is fair to say that we have come uross no cvideme whatever, although wo carefully sought it, of the Minister of Defonce, directly or .indirectly, using the influen-o of his high office to grant 'or obtain exemption for men from activo service. Wo nlso mado diligent inquiry as to what relatives or connections, if any, tho Minister had in tho Departmont. Wo found only one, a. gentleman connected by roarriago, doing important work, attending daily thu pre-

scribed hours, but enjoying no military rank, and drawing ncillior pay, emolument, not , allowance, of any kind. As a matter of fact, wo come, across no case of any Minister of the. Crown having friends or relatives in comfortable or lucrative positions in connection with war activities; and if ther.o aro any tliejr must be serving in a humble capacity. "(k) Wo are confident that the extension of the principio of tho amalgamation of the administrative positions should also' take placo in connection villi tho district commands, and that it will result in a largo saving without any loss of efficiency. "Au experienced witness suggested that a. Secretary of Defence should bo appointed at, say, .0700 a year, whose fiinclion would be to conliol the civil portions of administration and act its medium of communication between the inili(nry authorities and tho .Minister. But we fear that such an appointment would fall short, as what is wanted is a iirt-A-cliiss man of experience who will be made .responsible and accountable to the Minister for the quality and rc-su't of his work. Too niujh would depend on thu type of man chosen to be secretary. If lie was iv strong man he would hud yon much of life limo occupied in steering dear of■ difficulties with t!io nnhlnry nuthorUJ'S, who would resent inlerteronw« from a mircly civilian official- h.. M (hoy Tosrorrl as matters rcmuni* special training and experience to sue ceesfully deal with-. . "If tho secretary was mi amwoln suit of person he would l.e merely an ynnoce.- ■ snrv channel of communioMJoii-ji chie.r cfcrfc-nnd no responsibility inmlcver would attach to'him if anything went rong. He would be urono to grmhi■illv "ather a slalf about him to do i» lot of redundant minuting ™d vecordina, and, in short, he woud boa 'Mtli wheel to the couch.'- . "ill that he could do is now done bv'the capable, and cour'.enui Reullem"cn who act as private sei-rotories to (he Minister as much .less cost, and tho the" services of one of whom, anyhow, the Minister would have to retain. A Final Survey. "We have mentioned this at somo lei'-th to show that we have carefully viewed the matter from -various angles, and we kept steadily, in viow tho important future lying ahead of the Department of Defence. When this war is over Some countries will iot nnateiy be able to nractically dtetaiid their armies and think of defence in the past tense, but not so New Zealand. l'» ward defence is going to be a co»hy business and it is for that reason that tor eve y id spent the country must feol assured that it is getting twenty, shillines' lroi'Hi. ■. ~ , "Finally, w> wish to emphasis that we were commissioned by Your Excellency to seek out faults and not extol virtues. We have .looked for lading, and recorded them herein; but on the *av we found admirable work o much heater quantity. Therefore, when ite strong points are weighed against .its weaknesses, especially bearing in mind ow scarce competent and experienced assistance was, the Department may well comport itself proudly.' , THE MINISTImOfiIENTS SUGGESTIONS TO BE CONSIDERED. The following memorandum by the Minister of Defence is attached to the IC,P 'l l The report of the commission 'that in all essentials the Administration has succeeded' will, I am sure be received with satisfaction throughout New Zea"i The Government appreciates very imicii the susKDstions and Vecommendal.ions set out in tho report, These will be "iven every consideration, and where not already in operation will bo adopted, if found economical and applicable in prineiole. , "3 (n)~The suggestion to abolish the office' of the Adjutant-General arid appoint an. Officer in Charge of •Administration would not do away with the duties or work of the Adjutant-General 3 Branch. ' , "(b.) To- tnmsfer certain of Adju-tant-General's duties to the. General Staff would he in conflict with agreements which have been come to at various Imperial Conferences and which nim at securing uniformity throughout the Empire in regard to methods and equipment. "i. 11l regard to nomenclature, the designations are in accordance with tho Imperial arrangements to standardise all matters naval and military. Imperial Army Orders for April, 1916, indicate this. •'5. The questions dealt with m paragraphs 3 and I will, however, bo placed before the Imperial Army Council for advice. "(i. In regard to tho battalion system, early experience led to the adoption of' the present reinforcement system as the best suited to meet local conditions of recruiting administration, etc. Moreover, it is deemed to be the most economical under tho many varying conditions to which our reinforcements arc subject. This matter is, however, being further considered, and those who advocated the battalion system will be invited to compare details of their contention with details of the present system, which has placed the New Zealand Forces abroad in tho proud position they occupy to-day. . "■ "7. A conference of district commanders and other officers will meet without delay to consider how Use suggestions in tho report dan be applied to secure greater efficiency and economy."