WAR FUNDS

Dominion, Volume 12, Issue 290, 3 September 1919, Page 9

WAR FUNDS

R.S.A.'S ATTITUDE

COMMISSION PRESSED FOR

Y.M.C.A.'S STATEMENT AND BALANCE-SHEET

DETAILED CRITICISM AND COMMENT

Tho general secretary of the Now Zoaland. Eetur'ned Soldiers' .Association issued the following statement last night:— It is now close on a, for,night since tie National Exeoutivo of iho young lien's Christian Association promised to eeouia for Dublication the report of the auditors (Messrs. "Watkins, Hull,-Hunt;'and Wheeler) on their war funds' balance' ■sheets, published iti the Wellington daily ■papeie on August 18. The Y.M.C.A. has ''never satisfactorily explained why it did not secure this report for publication •»"ith the balance-sheet, seeing that all 'alike wore the property of-the War Funds I)ei>artinent. 'further, it has not reported the result of , its promised etforta .to secure this report, which is really thu Isev.to the financial statements, without which' the public and the Ii.S.A. iira j alike working more or" less in the dark '.The K.S.A. is. consequently .unable to , de'■lavdny longer in the publication of its lanswerinK statement, and, in submitting this now. desires to point out how the Controversy arose., '■ .

l''or a.long time past it has beon interWed in the whole matter of patriotic v funds, and , it .must be aduiitled that 'every •' /body of war workers would, it' Btartuie. de novo to-day, avoid by reason 'of the experience of the Jast iLve years ninny mistakes which have been jaa.de .-during that time., it was therefore feit that the experience should be suruniarls'ed. and co-ordinated plans arrived at for the disnosal of any unexpended funds, esDeciallv in view of- the Government's new Efforts in the matter-of repatriation. .The result of-the investigation of the JT.H.C.A. adminis'-ration occasioned some. «oncem and ; tho Minuter in charge of .war funds , was. written to without result. ■Subseciueutlv .tho-Cabinet, was asked to 'set ud a- Koval Commission to consider Jend investigato tho whole question. It then transr/ired .Ib.at a "powerful organfisation" (to quote-the Hon. Q. W. ;Rus{sell'e own words) had waited upon that Minister, protesting against a demand for information.-...-■ The- E.S.A. had then to'substantiate its' claim for a commission, and nroceeded to publish tho deduc'tious drawn from; tho Y.M.C.A. accounts .supplied. This', drew from the Y.M.C.A. ja lenathy explanation and on incomplete lest , of balance-sheets, which the E.S.A. ihias carefully considered. , ■ : : Two Sets of Balance-shests. '.As the Y.M.CIA.'s "■ published statement contains later figures'-than: those previously suimlied-Uie : R.S.A.,- and. so tot lbs thn transactions in New Zealand are 'concerned, it is certified to, even though Hu a Qualified manner, tho general public (have luid the opportunity'of'scrutinising Jit. and will therefore be ablo to follow She statement .now submitted with some 'decree of acouracy. : ■ Tho unaudited balance-sheet orevioueiy Supplied in May last to the H.S.A. not published;by the Y.M.C.A., tha advantage was previously denied contributors to thß war fund. : . The li.S.A. Togrets that the mass of figures" now published fall, short'Of, what ■they, are supposed to represent, viz., a full statement ot income and expenditure of the patriotic account controlled •by the trustees and executive - of tho ,Y.M.C.A. war fund,- and a balance-sheet of Dominion transactions. The subsidiary accounts in connection with coupons end tho Soldiers' Hostel in Boufcott Street see the light.for the first .time, Vhile the London statements ;cover ' a different period from 1 the Dominion accounts, and prove worthless in any attempt to arrive at a reconciliation witli "the main account. : ■"''■'■'j,. "l.Thn deductions made; .by/;the'-'K.S-A--. Hvero largely based oil percentage's ■■ot <&■• jcenditura 1 to- the gross revenue' of., the' fund, aud the statement • now published would appear to havo.been designed to defeat this logical means' of criticism, and to bring about an advantage td the y.M.C.A. in every, comparison' made. ■ ' f The Y.M.C.A'. mado- its first appeal early in 1915 and the published incomo end expenditure account docs not commence till October, I'JIG. Tho Muro to supply "earlier figures consequently omits receipts and disbursonjents for a" period of at least eighteen months, during ■which many thousands of pevnds must ia,vo boen' handled by the Y.M.C.A. executive. ' . . •' .."..'■ • R.S.A. Assertions Maintained. The K.S.A. viewed with satisfaction the published reply,- to its deductions' based on tho figures supplied-' by. tho Y;M.C.A., and the "statement', now before tho , public strengthens the opinion {previously held that an independent in- 1 quiry into the management ot patriotic funds is needed in the interests both of the subscribers (i.e., the generaLpublic) und ;of the. men whom -it was .intended to relieve. After examining this reply, tho 11.5.A. feels 'fully- - justified in main-; tainiug that the explanation made by the Y.M.C.A. executive not only does liot prejudice the attitude of the'E.S.A. in its demand for a commission of inquiry, but actually strengthens the li.S.A.' oase by admitting.. careless ' and faulty accounting and the use of funds for'* other purposes than they were originally subscribed for. ■ •■ The R.S.A. .apponds brief comment on each part of tlio Y.M.C.A.. explanation' as published on Augilst 14, simply bringing the figures into line with,the h'nauoiai statement to March 31 last, and using the numbers quoted i by the iY.II.CA. for eaey reference. The E.S.A. deductiqns are the legitimate result of close scmtiny of figures supplied by the Y.M.C.A. executive, ajid may therefore be accepted by tho public 03 worthy of inquiry at tho hands of acommission Biipli as is proposed. . It is recognised that-,the Y.M.C.A. is in a paramount position to enable it to meet oritlcism of- its' adtniniatratioa of publicly con-' tributod funds, hence-the weaknesses and admissions contained in the explanation are all tho more astonishing, The' E.S.A.; on tho other 'hand, had nothing "but an incomplete balance-sheet before it, and confidently leaves it to any one competent of. framing an opinion to judge whether its contention that the ■ ,\var funds of tho Dominion need investigation (at the hands of an independent and competent commission) has not been fully justified. Y.M.C.A. Answered in Detail. ' *■' ■ ■ \ ' (1) M Tiangle Day.-It is noted that the Y.M.C.A. can now supply a partial statement of account in connection .with an effort which took- place seventeen montte ago, <md to tho persistency of the.E.S.A. such result is apparently entirely due.. Still, only the net receipts .are shown, tho method used failing to disclose the cost of raising the money as .'well as'the .true, .amount contributed. The -E.S.A. is quite prepared to admit that, as the appeal in question was a Dominion-wide one, tho Y.M.C.A. probably found it almost impossible to secure returns from many country districts in proper form, aud therefore that the ■statement made is as satisfactory as could reasonably be expected. It has to be pointed out, howov.or, thnt tho iY.M.C.A., which has laboured the question of the purpose for which funds wore raised oh Rod Triangle Day, should remember that tho subscribers (i.e., the general'public)'are the best judges of what they handed in their donations for. Tho E.S.A., after careful examination of the special advertisements published at the time, is convinced that the appeal made to tho public was distinctly for ■"trench comforts" for tho boUUcts sit the front, , and that these were intended to bo frco gifts to tho men. Tho statement of the Y.M.C.A. on the subject k naturally an interested one, and one mode on defence and therefore cannot bo accepted as conclusive. The point is a mosl imnortiwt one. and should be decided by an independent commission such us the E.S.A. siiiweals. (i) Comfort for Soldiers.—For some inexnlioable reason tli2 Y.M.C.A. executive bunched the Ii.S.A. dqrlnc'.iniss 2, 3, and 5 tosether, thmi«li iherc is little, in enni; mon between tho latter and the two former ptatements. Whatever tho object oi

this amalgamation was, the effect is to oloud ii direct issue aud shirk explanation of tho comparatively small amount handed free lo New Zealand soldiers from a huce fund provided for trench comforts for our men. The B.S.A. attaches very (treat importance to tho question involved, but. as the details nro extremely complicated, it prefers at this stage to refrain from statistical criticism, which, though meant to enlighten tho nublic eoneralty, might easily hnvo the effect of impnlinif to the Y.M.C.A. motives which tho E.S.A. ha« no dosiro to impute, and has,not imputed. A commission of experts is vitally nocessnrv to investiimtft the data in all 'its bearings.

(3) The London statement, now published, shows that from May 1, 1916, to March 81. 1919. the English officials of the Y.M.C.A. received .£183,805, plus j>25.000 not taken to account, or a total of X 208,fiflS from the New Zealand executive; and. to bo ouite fair to tho Y\M.C.A., the- fact that it had received XGII7 fiom other sources has not been taken into acomvnt in Hie deduction. Taking' the ..•"ishursement of free comfoi+s at the figurn shosvn in tho English statement (■£40,885). ■'tho percentage of New Zuaknd monev.disbursed freely amounted to less than 20 ner cent.

H) Failure to Account for Disbursnmont of Moneys Sent to Egypt.—The admission that the sum of .£18,158 sent to thii reriroaentnfives of the trustees of tho Y.M.C.A. War "Fund in Egypt during the two years ended September ■ 30, 1919, is still unaccounted for, and that tho trustcfts are unable to produce statements of accounts, at this late date as to how i!26.55p was: expended up to March 81, 1!)19. ir -dietnrbing. There is no need for th'3.]*t.S.A. to otress the position. On the evidence uiven in the Y.M.C.A. explanation a lack of ordinary safeguards to nrofect trust moneys and failure u> apply rudimentary rules of accountancy nro fully .esiablished. The Y.M.C.A. ailmission is acrin'avated by the irrelevant exnlanation civen reßarding something that oconn-ed in May," 1915. The E:S.A. nomment is confined to Hie period trom Ootobsr 1. 1916. to March 31. 1919, during 1 which."'.the suni previously mentioned <M&.tii) ■ was' triinemitted.' How mucb money was sent to Egypt or auywhero else betireen March, 1915. and September 80.. 1918. has not yet been disclosed' by the Y.M.C.A.. rjnd the pertinent question arises as to what amount of money >Yas rfifieived nnd disbursed during the'ninotefln months referred to, and why the information has not beon pfiren. The position, revealed and mirevealed, adds further ius'ificiition for the deninnd made fnr-a comnnVi ~>n of inquiry. . (h) Administration on Working 'Bxnenses.—This is an item which the R. 5.4.. was verv careful, when dissecting the hqfiires. to allow a wide margin for, by oraittinir doubtful items in tno totals sot out in the comment forwarded the Minister of War' Funds. No finality can be reached bv rditeratin.a , that the deductions made by the K.S.A. are fair, and such as will be borne out by any'comDetent, accountant to whom the figure's ar« eubmitted;' but now the inquiring contributor can refer to the published statement and make his own deductions, which will promptly shatter the claim of the Y.M.C.A.' as put forward in its esolasation ■ that the working expenses of the fund in New Zealand and in - England, added together, reached but 3.8 per ennt. of the total revenue received. The onlv fair method of criticism of/administration .expenses appears to be by'dissp.ctina, the. actual expenses, wliidi in thin ca<so certainly appear to be hijjh, more eeueciallv aa all other txpsnses have been charced'against .the particular ventures set ■■out.'in the iriconw and expenditure account. Finality on this qmistion can only be reached by independent investigation bvn commission.

(6) Wellington Soldiers',''Hostel—Why stalements of account, in : connection with'this branch of Y.S[.C.A'. war work should not have been presented to the opntributins , -public (whose money estnb : lished the-hosrel) during the' past three years cannot airily be explained away. Other ■Datriotic funds, including tlie Red Cross;' ' Salvation Army, ' Church Army, Liverpool Fund, ' etc., submit / annual reports and audited ktlanc'e-slieote to the public. The Y.M.C.A. owed a similar duty to tho people -who provided its revenuo. The It.S.A. claims that it has forced tho. YiM.C.A.' to account for the . money earned by the • Bonlcott ' Street Hostel; and the failure- of. the .exocutivo to 'fexplain' why-., the large sum involved was not brought, to account earlier carriea its own condemnation. In saying • this, the'B.S.A. does not overlook tho fact that the'accounts-in'question appeal' to have been quite well, kept; Tlie U.S.A. finds that the money expondod from the war fund on this venture has beenbrought "into account throughout, and is shown in the balance-sheet amongst tile assets under tho heading of "Soldiers' Hostel, Boulcott Street, .£3150," this apparently representing vhe total moneys paid over to the hostel account out of tlie main war funds account.

(CJ—continued-4ihakespea.re Hut.— Failure to account for the revenue earned by the'erection of dormitorice, etc., in tills establishment in London at a cost of'."about. X' 5000" to the New Zealand War Fund, which was raised to benefit New Zealand soldiers, is not adequately met by the explanation made bj the Y.M.C.A.' executive. "Diggers" know that nothing was supplied without payment at tho establishment, "and that it 'was a purely business concern; therefore part ot its' revenue m proportion To the amount invested in the venture belongs to.the isew,Zealand fund, and should bo recovered' to it and disclosed in the bal-ance-elieet. If a sum approximating ■£5000 was spent in this way, and it is accounted for in the London balancesheet, then it is presumably ya-nt of the item, «£tib,sls.' whiohia distinctly shown as written off and not taken to account, as an assot.. Tho promise that when the hut is disposed of that tho New Zealand fund will yot "a proportionate amount of the sum it revises" therefore appears to be a decision recently arrived at, nnd was no doubt brought about by the , action of the B.S.A. It is at least in'keeping with the general tenor of the OXplanation, and aione justifies the independent inquiry requested. ' .

(?) Bed Triangle Hut.—This ,vontnro was ruii at a. continuous loss, and money that plight have gone toward providing free comforts for the boys at rim front was thus wasted month after month. It was. a lavishly. furnished semi-club restaurant, which competed rather weakly with-the midday, dining saloons of Lnmbton Quay, and tho figures now set out show that its total earnings reached but i£435, while the actual loss on working expenses account was £659. The furnishing.and lighting cost over J3IOCO in., addition. It is not suggested that no. use lias been made of. the furniture since, or that'there has been a total lose of 'oCIBG3, but it cannot be denied—the Y.M.C.A. does not deny it—that there was ,a. heavy loss, and, despite ife c;itidour in the balance-s-heot published on August 18, the Y.M.C.A. has yet to oxplain why this information was not shown in the unaudited , balance-sheet sent to tho U.S.A. three months <ijo. (8 and 9) Asscte Amounting io J;22,:H9 in New Zealand and ,£GB,GIf) in England and France, totalling d£90,9(il written off.—Tho R.S;A. is anxious to take Hie must charitable view of the wholi; position, aud, though (as the result of llva inaction of the Government War Funds Department) it has been forced to criticise many seeming anomalies and obtiißO statements, which were the molt; anomalous and obtuso in that tho Y.M.C.A. was so foolish as to work behind i , . "smoke-screen," it is prepared to ninl; allowances whero somo real cause i , - shown. The B.S.A. is, therefore, prepared to admit that quite probably tli nintliod adopted was the only satisfuclor.v one that could liavo been Tollnweil in regard to this matter. It is clearly evi dent that a veiy sinflll portion of Hi expenditure on buildings and equipment ciui bo recovered. Many of tho buildings are on. Government . ami otlu ground, and much of the equipment mil?,! now bo useless. The E.S.A. would like to know, however, whether the uiipuliliehwl auditors' report referred to this muttw, ami in tho meantime is of tlio opinion that it has called attention to a sitiuilion thnt wns fraught with tlir risk of loss of valuable assets. It l-ruela Hint tlii' AliirnU" , i" eh.iru« of W'ni funds will tii.ko adequate steps to onsnyo satisfactory tabulation of llin iissets, in ordw that their siil*K?(|tn.«nt dis[p(i#al may hi. , traced.

(10) Coupons.—The coupon account sewiis to have boon (Silisfactoi-ily. kept.

' (II) 'I'lailiiiu'.—Tins unci. lull can ba «fitI led i/iilv by an inquiry, unci in tlio meantime the U.S.A. pvop;»js In make no furIlior comment on it beyond statin;; ilint in its oninion the T..M.C.A. should publish tlio trading accounts covering this venture. They really form a part of the

accounts covered by the certificate of tho London auditors, but were not published with tho others. The U.S.A. cordially inviios the Y.M.C.A. to take the public fullv into its confidence m this as in olJier matters not yet made clear.

(12) Secretaries.—The K.S.A. is satisfied that tho stair paid from tho Y.M.C.A. Wnr li'und in Now Zealand is (or was) not wholly employed on war work, and contend that tho Y.M.C.A,. war organisation has •■not been demobilised in ratio with tho troops. . (18) Huts—The Y.M.C.A. explanation begs the question at issue, mid only close scrutiny of the Trench Comforts Fund by independent inquiry will settle tho matter. • Further comment in the circumstances would then-fore bo futile. ' Conclusion. In submitting for publication the points upou which information had origliiallv b«;en sought irom the Minister, ihe It.S.A, had made no excisions from itti oritfiual letter, even in ra-uect \o ouerißii-to which it knew thnt the Y.M.C.A. ooulu furnish a strong defence. It did i>o because these matters had been the subject of unfavourable Aoinmciu. ot which ihe Y.M.C.A. seemed to be unaware. These matters have been indicated above, and they throw into stioiiL' relief the numerous respects in which the reply of the Y.M.C.A. hud been extremely unsatisfactory.

' The following points in me inlrouuc. Hon to the di'leuce oi the Y.M.C.A. call for coiuniwit:— ,

(It Tho Y.M.C.A. professes profound icuoranco of auy reason why its adminis. {.ration should ue calliivl in qiiestion. In askina for' n commission thu U.S.A. desired that it should be »iveu tho widest nossiblo order of roference. If ' tho Y.M.C.A. can show uny other body lvlioso noaountfl jfivo rLso to such persistent cilleries as its own, the EmS.A. will bo'onlv too dad to know of them. So far. it is aware of no body charged with tho administration of largo war funds which is able only after four long years (and then only, after au inquiry had been 'Dressed foTj iio produce a general bal-anco-sheet.

i' 2) Tlm-Y.M.C.A. professes not to be nine, to undei'stand why the K.S.A. did not Teulv direct to it. The E.S.A. had honed that it had made its reasons clear, but is now obliged to recapitulate them, ns follow:—(a) The responsible'body is the War Funds Office, and to them npolication was made. Had the K.S.A. eone direct to the Y.M.C.A. tho hitter liodv would have been justified in reforrinir it to 'he War. Funds Ofliee. . (b) Tiie Y'.M.C.A. bows very well that only the fullest inquiry—whi.ih until chalien'irod it. "co'urtcd" ; -could decide whether the iustificatio'u which it would put forward .was souiid. Ihie would have had to cover an examination of the Y.M.C.A. books generally, and ''would jiavfi entailed considerable 'work, which tie R.S.A. could not have been expected ho .undertake. . . '. '' .

It is noteworthy . that tho Y.M.C.A... whan it suite ite own purposo, realises very clearly the difficulty which, thn K.S.A. has in expressing an opinion on its. balance-sheets, as witness the follow--ins from its statement:— "... from, the nature of tho casn, it is obvious that "the deduction's niado from intricßto accoiints in tho absence of an intelligent appreciation of the surrounding circumstances, are singularly liable to error."

It ,is a?so worth, remarking that the possibility of. error is .intensified when such "intricate accounts" aro interpreted by "an interested party, but the limits of sephistry are-euroly reached when the ■y.M.C.A. invites its contributors (i.e., the general public) to pronounce judgmont upon an issue of whioh they know at least no more than the R.S.A., upon whose i°norance of tho facts tho Y.M.C.A. insists. . , - . • . '

The "R.S.A. had hoped thnt by. the appnintm'oht of a commission the whole niattor would-be disposed of finnlly and nuthoriintivf|y.. !te first statenipnt askcil for information ami expressed no opinions. The-Y.MiC.A. has, however, .adopted a policy of "Its-inn low," evidently in Hie expectation tliat tho necessity for iiivMtipation might he .forgotten. It has declined to support a commission, and h?.B not sliown any reason for its failuro to publish tlio auditors' Teix>rt. Therefore, the U.S.A. had bsen obliged to ro fwHier and .oonun'ent in detail on. tho .Y.M.C.A. reply.

The continued , reference of theT.M.C.A. Executive in tho "oxiilanntion , " to Generals Tinssell nnd Richardson cannot be passed by without comment, as the officers concerned nr» being used (is a niraua of misrepresentation to the pnijlic. Tim pi'tit'cnon nomcl have nn doubt noticed ths "(forte of the secretaries from limp to lime, and nolxyl they did Rood service, bnt neither of them are lilcelv to have any knowledge of the Y.M.C.A. Wnr T'liml ns fnr. ni its constitution, financial responsibilities, administration or its trust* are concerned., and without (inch intimate knowledw their expression o? opinion of'good work cannot, by any of 'Uniurinaticvn. bn taken as a ppvtifie,itfl that the- affairs of the Y.M.O.A. "Wnr Funds are Iwyoivl criticism, or flint the'executive ia'cjip'-iWe of .sivintr a (jiitisfn'etory. account of its stewardship. [A copv. of .th<> ahovß st-itoaiisnt w.is i'elivered .tin tJi-e. Nntioyinl Pecrptmr of the ■Tf-imtr Men's Hlirigtian Association at 2 n.ni. yesterday.l . BITUATIONK VACANT. THE TAIERI AND PENINSULA MILK SUPPLi , COMPANY. LTD. . BDTTEESIAKER WANTED. WANTED, first-class Bnttemaker to take charge of Dunedin Factory. Applicants to furnish Grade Notes and stiUei. salary required. Particulars on application. Applications to bo lodged with the Secretary not Inter than September 24, 1919. A. H. TEMPLETON, Socrotary. . King Street, DuiHxlin, MACHINERY FOR SALE. ONE Two-stand U'olseloy Shearing Plant aud Engine; one Donakl Saw Bench (new); one "Cockatoo" Woolpreee; one-Metal Cart (3-inch tyres); one large Butter Chum; one 50-Rallon IMabolo Separator; ono Steel lisiyrake; one Clipping Machine; and one Hand-Shearing Machine and Grinder. All first-olass order. J. P. LETT, "Bliuley," Tancru, Maete*ton. 'Phono 4-12. LEGAL NOTICES. STATUTOia iN'OTICD TO NEXT-OF-KIN, Bβ ■ PK-EDBBICK WILLIAMS, late of Kanynroo Point, in the Stele of QueDJwland, deceased. NOTICE IS IIEREBT GIVES that all persons claiming to be uext-ol'-kin of tho abuve-iiiiiuol l'Vedcrick Svilliame, late of Kungaroo Point, in the Stuto ot Queensland, deceased, who died on or about tiie 59th. day of iTay, lfllfl, A.D., at Brißbnne, in the said State, are hereby requii-eii to forward proof of their relationship to The Public Curator, Brisbane, on or before the "25th day of November. 1U1!I. Ami tli.it .at(qv tlie exjjjmtioii of the last -mentioned date The Public Curator will procooil to (lislributo Mie ossofa of the said deceased anioiigst (lio parties entitled (mei'elo. having rorard only to the claims of wMcli ho bliall then have 'had notice. Dated this 20th day of Atiguat, 1919. R. J. S. BARNETT, Official Solicitor in tho Public Curator Treasury Buildings, Brisbane. FINANCIAL. £30ft0 AT 6 i>er cent 5 or 7 years, f" , "" 1 ' wanted by a farmer in order to complete purchase of a farm now held on lease. Good Turaauki .Dairy It'iirm. . Uciily to "FARMEI!, ,, C/o Box Kill, Hawera. £4000 ■ AT G P ° r COllt - for 5 yem ' 8 ' wanted on IMS acres, near Elth.im. Good security. "DAIRY FARMRR," Box 163, Hawera.