REPLY OF THE Y.M.C.A.

Evening Post, Volume XCVIII, Issue 38, 14 August 1919, Page 8

REPLY OF THE V.M.C.A.

■- ITS OPERATIONS SUMMARISED. ; The National Committee of the V.M.C.A. submits the following reply to the letter of the R.S.A. Executive :— ■; To enable members of the public to appreciate the position, it is necessary to refer briefly to the extent of the war work of the V.M.C.A. From the time when the first secretary was sent overseas in the early, part of 1915, the operations of the organisation expanded, through the exigencies of the war, in an ever-increasing degree, and in directions not originally contemplated. Such operations may be summarised as follows:— (a.) The maintenance in New Zealand of its work at all military camps, ;at military hospitals, and at the Soldiers' Hut in the city of Welington and other centres in the Dominion, (b) The work on troopships voyaging i' from and to New Zealand. ; (c) Operations in Egypt and Palestine, including the conduct of the well- ~~ known Soldiers' Recreation Club at Esbekia Gardens, Cairo. '(d) Operations in England at all the v New Zealand camps and military hospitals, and in London, which was the centre from which the work in England and France was con- ; trolled. In London itself, apart from the administrative work, the operations included the Shakespeare Hut and other hostels, also entertainment and hospitality work. - (c) Operations in France from the Now Zealand Base to the firing-line. (f) Operations at Colon, Panama Canal. :It requires no great effort of the im-

a programme, and to appreciate the difficulties of carrying it out with efficiency. That the operations of the association met with the hearty commendation and support of General Russell, then commanding the New Zealand Division in France, and General Richardson, then in charge of administration in England, is sufficient evidence that the programme referred to was faithfully carried out. The statement issued by the executive of the U.S.A. to the press makes reflections on the Y.M.C.A.'s administration of the funds entrusted' to it by the public of New Zealand. Why this organisation should be singled out for special mention in connection with an agitation, whose professed purpose is to ascertain what should be the ultimate disposal of war funds raised' in New Zealand is not evident. 'It is still less evident, if the Returned Soldiers' Association is sincere in its statement that a satisfactory explanation by the V.M.C.A. of the questions raised would please nobody better than the R.S.A. itself, why the obvious course should not have been adopted of making direct application for such explanation to the V.M.C.A. That such a course was not followed, but that the R.S.A., through its executive, on the contrary, first approached the Minister for a Royal Commission, and then (not having secured its object) issued its statement to the press without notice of any kind to the V.M.C.A., are facts from which the public may draw their own conclusions as to the sincerity of its motives. It will be seen that the charges against the V.M.C.A. are based upon certain deductions from its balance-sheet, by the Executive of the Returned Soldiers' Association. The various points are enumerated in a statement accompanying the letter, dated 6th June, 1919, addressed by the general secretary to the Minister. The letter admits the possibility that the deductions may be erroneous,' and from the nature of the case, it is obvious that the deductions made from intricate accounts in the absence of an intelligent appreciation of the surrounding circumstances, are singularly liable to error. The following replies are made, 'seriatim, to the points raised : Paragraph 1. Since the beginning of the war, the V.M.C.A., through its National Committee, has made a continuous appeal to the public for the furtherance of its war work. The basis.of this appeal has at all times been of a general nature. Its pamphlets in the year 1915 specified that the V.M.C.A. War Fund was for work among New Zealand soldiers in camps in New Zealand, in training camps in Egypt, } n hospitals and . convalescent homes, in rest camps, and in the firing line. The generality of the appeal was preserved throughout the whole, period. RED TRIANGLE DAY APPEAL. In March, 1918, an appeal on a large scale was made to the New Zealand public, in connection with what was known as r "Red Triangle Day." The contributions on that day, and as a result therefrom,, total the sum of £219,293, which includes the big Auckland effort .of May, 1917, It is not true that the primary basis of appeal made on that occasion was' for comforts for men in the trenches ; on the contrary, the advertising matter put out at that time from the National Office shows clearly that, while special stress was naturally laid on the comforts' work, the appeal was made for the general war work of the association, which cared for the interests of the soldier in New Zealand, on troopships, in the base camps in England and Egypt, in the hospitals, and in. France, from the base camps,to the.firing line. The appeal known as "Red Triangle Day" was expressly authorised by the Hon. G. W. Russell, Minister of Internal Affaire. The Minister's permission was sought in a letter from the chairman of ,the -National Committee, and his reply, dated 11th January, 1918, was ml the following terms :— "I am in receipt of your letter of the 3rd instant, stating that it is the intention of your association to hold a Red' Triangle Day on ISth March next throughout the Dominion, in the interests of the Association's war work at home and abroad. In replying, I have very much pleasure an heartily supporting this appeal. The association has, by steady, reliable work, secured for .itself the confidence of the people of New Zealand, and I am satisfied that it will only be necessary to announce that this farther effort is about to be made, to ensure a munificent response from our people. "The Association has my fullest approval and support in carrying out the proposal." An appeal was thereupon made in full conformity both with the spirit andi letter of the Minister's authority. It is true that certain substantial contributions were specially earmarked for trench comforts,' and. the total of these appears as a separate item on the association's balance-sheet, and the expenditure on trench comforts has far exceeded the amount of those special contributions. As to the assertion that no statement was available from the V.M.C.A., the answer is that a full balance-sheet up to 31st March, 1919, has been complet--ed and audited, and is now in the hands of the committee. Moreover, a full balance-sheet of the operations in England and France from Ist May, 1916, to 30th November, 1918, was issued from London in the, early part of the present year, and was published in the New Zealander, the British Australian, and copies sent to leading newspapers in New Zealand. A balance-sheet of the operations in England and France up to 31st March, 1919, has reached New Zealand, and will be published shortly. Paragraphs 2, 3, and 5. These paragraphs all deal with specific items of expenditure in the balancesheets, with the object of endeavouring to prove: — 1. That the percentage of the moneys spent on comforts for the soldiers was so small as to be out of all proportion to the total funds raised. .2. That the administrative expenses were extravagant and entirely disproportionate .to -the results achieved. An unbiased scrutiny of the balancesheet will show that the actual administrative expenses have been extremely low. The R.S.A. executive to arrive at ite final conclusion in paragraph 5 has included as administrative charges totals which are clearly running expenses and part of the free service to the men on active service. TOTAL INCOME FOR WAR WORK. The balance-sheet up to 31st March, 1919, discloses that the total income for the V.M.C.A. war work in New Zealand and overseas was £361,451 14s 6d. Up to 30th November, 1918, the sum of £163,800 had been remitted to London for expenditure in England and France, as is shown by the balance-sheet under discussion. Further sums had been remitted to Egypt, but quite a large amount was still earning interest in New Zealand, as it was required for the winter's work of 1918-19, and the policy was to hold the money in New Zealand until actually needed at Home. It is alleged that only £31,290 was disbursed in trench comforts. ActuaDy, £46,505 was disbursed as trench comforts up to 30th November, 1918, tho difference of £15,214 being made up of canteen profits, returned to the men in the form of comforts. The R.S.A. executive erroneously assumes that the sum ao expanded in

of the free service rendered by this association, whereas, as a matter of fact, the sum of £57,650 was, up to the same date, used in providing buildings, tents, and equipment, all of which were for the free use of the men, and, in addition, the sum of £14,625 was expended for free stationery, literature, and cinema and other entertainments. The foregoing items represent a total of free service of £118,780. These figures show that 72.5 per cent, of tho moneys sent overseas was expended in free service to the soldiers, without including items totalling £14,728, representing working expenses of huts (including • lighting, heating, transport, and salaries of field secretaries and workers). The actual administrative expenses at London headquarters tip to 30th November, 1918, as shown by the same balance-sheet, were £3426, which works out at 2.02 per cent, of the total London income of £169,579. Furthermore, the same administrative expenses covered the whole of the trading operations referred to in a subsequent paragraph. As_ regards the consolidation of the English and New Zealand balance-sheets, the necessary adjustment has now been made by, bringing them both down to 31st March, 1919. ADMINISTRATIVE CHARGES. In paragraph 5, the R.S.A. executive treats certain running expenses as being administrative expenses. The actual administrative charges in New Zealand up to the 30th September, 1918, were £8711. The item £9910 is a field working expense, consisting mainly of salaries to field secretaries on active service. It must be clearly understood that the military were in no way financially responsible for any V.M.C.A. men, and as these men were serving the soldiers in France, England, and-Egvpt, this is certainly not an administrative charge, but a part of a free service. The amount £8416 has been dealt with in our remarks on the English balance-sheet, and is included in the total of £14,728 which is a proved running expense, and a part of the free service to the soldiers. The item £6456 is a New Zealand item, and includes fire insurance on buildings and property, travelling and haulage expenditure, and Red Triangle Day expenses, only part of which are administrative charges. The amount of £1713 is for travelling and transport expenses, the bulk of which was spent in France, in our free service there. The item £4599 lias previously been dealt with in our remarks on the English accounts, and it is made up of heating, lighting of huts, etc., which can in no way be called an administrative expense. The amounts £1307 and £2119 constitute the sum of £3426, which was the administrative charge for the London headquarters office. Therefore, our total administrative oharges over the period of two years was £12,137, this total covering both New Zealand and England. As the total income during the same period was £315,086, the cost of administering the fund was 3.8 per cent. This result shows that the sub-comimdttee of the executive of the R.S.A. has overstated our administrative expenses by £25,867. This is possibly the result of this committee's lack of intimate knowledge of the V.M.C.A. service hi the fighting zone during the fast two years.

• Question 4. Wdth regard _to sums remitted to Egypt, the position is as follows :— .In the early days of the war, when there was no military department of the New Zealand V.M.6.A., much valuable work was done by the War Emergency Committee of the British V.M.C.A. in Egypt, by carrying on work among the New Zealand troops. On the arrival of the first New Zealand field secretary in Egypt, in May, 1915, it was decided to work under the direction, cf the War Emergency Committee, as it' was obviously impossible for one man to create a distinct New Zealand organisation. . The money remitted fjom New Zealand was paid to the hon. treasurer of the War Emergency Committee, on condition that all the help necessary for the maintenance of the New Zealand V.M.C.A. work was given, and New Zealand soldiers were the gainers thereby. This policy has been continued . throughout the war. Money sent to Egypt, specially earmarked for comforts, has been tspent on New Zealand soldiers. Up to the present it has been impossible to get full .statements from Egypt, but wo are advised that the Egyptian accounts are audited, and are on their way out to New Zealand. The Egyptian, accounts were supervised by officials of one of the leading banks in Cairo. Paragraph 6, Wellington Soldiers' Hostel. These accounts are all audited to 31st March, 1919, and will be published: with other balance-sheets in a few days. Shakespeare Hut. The position in regard to the above hut is as follows:— The hut was built in 1916 by the British V.M.C.A. before the New Zealand Division was transferred from Egypt to France. When leave was granted to New Zealand soldiers from France and from | the camps being established in England, it became imperative for the New Zealand V.M.C.A. to make suitable provision for hostel accommodation in London. At that time the New Zealand V.M.C.A. had not the necessary personnel or- resources to establish a hostel of its own in London, and an arrangement was made with the British V.M.C.A., whereby the Shakespeare Hut became the headquarters of the New Zealand V.M.C.A., and popularised as the New Zealand Y-M.C.A. hostel for men on leave. The administration, of the business side of the hut remained in the hands of the British V.M.C.A., and as soon as a New Zealand V.M.C.A. representative became availableiie was attached to the hut for developing the social activities. From time to time the New Zealand V.M.C.A. paid a proportionate amount of the cost of additions found necessary in consequence of the increasing popularity of the hut amongst New Zealand soldiers. The amount paid out of the New Zealand V.M.C.A. fund totalled about £5000, representing approximately one-third of tlie total cost of the hut. All financial responsibility for the running of the'canteen side of the hut was- assumed by the British V.M.C.A., who had recruited a voluntary staff of over 400 women and London business men for the purpose. The service rendered to New Zealand soldiers by this hut is incalculable. A soldier could get a bed and breakfast for ls 9d, in addition to the many social attractions of the hut. The same accommoation without the social facilities would cost 6s-6d at the cheapest hotel. The hut was open continuously night and day, and, had sleeping accommodation for over 500. Fully 80 per cent, of the men occupying the hut were New Zealand soldiers. When the hut is finally disposed of the New Zealand V.M.C.A. War Fund will receive a .proportionate amount of tho sum it realises. Paragraph 7, re tho Red Triangle Hut, Lambton-quay. The information needed is in the 31st March, 1919, balance-sheet. Paragraphs 8 and 9. The question here raised is one that has been decided by our auditors in London and New, Zealand. Both these firms are of high standing, and well known to the public. We feel that their decision-should be quite satisfactory to the R.S.A. On the other hand, wo have in London an Assets' Realisation Board, which is now realising our assets to the best advantage, and the proceeds will revert to the War Fund. We are not concerned with other toicoiaUons' b«li»ice>/sbnst/i, but would Jjftte.Jww,, SYJiteaee,to,haj}d' t thftiJfea,

British V.M.C.A. still retains confidence. ''• Paragraph 10.—Coupons. The Executive of the Returned Soldiers 'Association has evidently not noted in the balance-sheet (England) a debit of £22,088 9s 4d against the_ Coupon Account, thus showing that this amount of coupons had been redeemed in London prior to 30th November, 1918. The March, 1919 balance-sheet shows that coupons to the value of £28,283 9s 7d had been redeemed in England. £25,000 was drawn from the Coupon Trust Account and despatched to London on 6th February, 1919. Every effort has been made, and is still being made to redeem the coupons returned to New Zealand. The association has advertised in the Returned Soldiers' Association journal, Quick March, and also in the three Wellington daily papers, notifying that unredeemed coupons may be exchanged for cash at the National Headquarters' Office, Wellington. TRADING POLICY. Paragraph 11. It has already been shown that the money raised for the war work of the V.M.C.A. was for the general „war work of the association in all fields, and was not only for free distribution. The Returned Soldiers' Association Executive I questions the right of the V.M.C.A. to , use funds for trading purposes. It is submitted that the V.M.C.A. was within I its rights to adopt, any policy that had for its object the rendering of a real service to the troops. The V.M.C.A. adopted a trading policy with much reluctance —the profit element was bound to enter, because all prices were fixed by an Army Order, with which the V.M.C.A. had to abide, and the association knew that it laid itself open to criticism on the part of those who were unfamiliar with the situation. The association took ample measures to make known among the men that the only motive in adopting a trading policy was to render a real service, and that any profits made would revert to them in the form of free comforts —a policy, it will be observed from our bal-ance-sheets has been faithfully carried out. The limits of space make it impossible to elaborate the many reasons that prompted the New Zealand V.M.C.A. to adopt its trading policy. It is sufficient to say that! it had the hearty approval of Major-General Russell and Brigadier-General Richardson, and, not the least, of the men who really know the conditions that obtained overseas, particularly in France. If tho V.M.C.A.. had not carried on trading operations, the men would have been debarred from obtaining a large quantity of necessities that they_ urgently needed, and which they otherwise would not have had. THE WORK OF SECRETARIES. Paragraph 12. Our work for the New Zealand troops will not, we trust, finish until the last soldier has returned to civil life. The troopships are officially met at Auckland and Wellington, but this service by no means represents the full work of the secretaries concerned. For example, the Wellington Troopship ' Secretary has charge of the collection of war stores from returning troopships, passing same through the Customs, unpacking and preparing same for their final disposal. Tho association has also a draft secretary at Colon, Panama, whose duty it is to provide for the entertainment and care of the troops while ashore, and to adequately provide fresh fruit and other comforts for the remainder of the voyage. If further information is required as to the need and value of this work, we refer to the officers commanding returning troopships. Paragraph 13. Huts have been established as stated, although no staffs have been attached, at Waipukurau, Invercargill, or Somes Island. As soon as Waipukurau is ready for occupation it is proposed to carry on a similar work to that in operation at the Cambridge Sanatorium. The huts are staffed and maintained wherever necessary out of moneys collected for our general war work, not out of funds specially ear-marked for trench comforts. Conclusion. In conclusion, we desire to assure the public that the National Committee has administered the funds so generously given, for the benefit of New Zealand soldiers, and not in any case for its ordinary Y.M.CiA. activities. So anxious has the committee been to faithfully carry out its trust, that Messrs. Jameson, Smeeton, Lascelles, W. H. George, and J. M'Eldowney (members of the committee) have, at their own expense, and at great inconvenience, spent considerable periods of time overseas in order to satisfy themselves and their committee that the moneys were spent in accordance with the wishes of the donors. Other members of the committee have, toiled unceasingly during the war period in connection with the work. The Y.M.CrA. has done its best both at home and at the front, and is content to leave its case to the judgment of the contributors.