PARLIAMENT.

Wairarapa Age, Volume XXXII, Issue 10039, 13 July 1910, Page 5

PARLIAMENT.

THE E. A. SMITH AFFAIR. EXPLANATION BY THE PREMIER. By Telegraph—Press Association. WELLINGTON, Jnly 12. In the House this afternoon the I Premier, referring to the E. A. Smith case, said certain statements bad been made by a section of the press reflecting on Mr Kennaway and criticisms were directed against the Government and himself which were a misrepresentation and distortion to the extent of falsity. In a lengthy statement Sir Joseph Ward quoted numerous letters m reference to the case. Jt'riefly, the correspondence showed that Smith had been originally appointed to a position in the High Commissioner's office, as Emigration Officer under Dr. Featherston. Subsequently, when the sys-

tem of assisted immigration was discontinued, Smith was appointed as Government Shipping Agent under the signature of the late Sir John Hall, *«ho was then Premier, and during Sir Julius Vogel's - term of office as Agent-General, that appointment and the shipping rates then agreed on had continued without interruption and without alteration up to the date of the present Government taking over the ship Dine business in October last. On the recommendation of Sir Joseph Ward himself, some few years ago. Smith retired from tbe business, but before doing so he had taken Mr Kennaway into partnership, while he himself; retained a five years' interest in the business. Sir Joseph said that on his last visit to England he had, in consequence of a suggestion made to him by an experienced man in London that New Zealand should undertake its own shipping business, ( recommended this to be done. No fault was then found with the High ! Commissioner's office in ;onnection with the conduct of the shipping business, but it was found that a saving could be effected by the new arrangements. Smith was retired. He received, in (common with other shipping offices, by way of commission and bonus 16s per adult passenger, boosed for New Zealand. In addition to this Kennaway received 4s per adult from the Government in consideration of correspondence and work done in connection with arranging the berths and assisting the emigrants generally. The amount of bonus for assisted emigrants during 1906 received by Smith was £674 17s 3d, of which Kennaway received £473 17s 3d, the balance being paid to other agents who had introduced passengers. In 1907 the amounts were £525 and £41»3 respectively. In addition he received fiom the shipping companies commission amounting in the years 191)6-7-8 to £2,450. Against these figures had put expenses of staff and eighteen clerks, and rent of offices. In no case did Smith receive a bonus and commission o«i a passenger intro * duced by other agents who were afterwards declined by the Commissioner. In regard to freii hts, Smith received ten per cen<\, for primaee, five per cent going to the broker and the remainder to the stripping agent. Continuing, Sir Joseph Ward declared that the imputations against Sir Wm. Reeves and Mr Kennaway and bis son were entirely unwarranted. All the talk of mystery and sectecy was directed against the Government, and the whole outcry was made fnr political purposes. It had yet to be found that the present system would result in enormous savings as alieged. He moved that the correspondence lie on the table.

Mr Massey, replying to the statement that the Opposition press had worked up the Smith affair with the object of attacking Government, said some of the independent papers had taken ari interest in the subject. Much of the information gi"en by the Premier was beside the point, and much of it ought to have been before the House long ago. Had this been done the unfortunate discussion on Smith might never have arisen. The whole trouble arose from the fact that Smith, the Government shipping aajent, tiad ceased to exist, and his place had he?n taken by the son of the most important official in the High (lommissioner's office. The arrangements whereby bmiih acted as ship ping agent for the Government appeared tc him to be highly improper. It would he more satisfactory to do away with shipping agents altogether, and the roundabout system of commission and rebates should be abolished.

Mr Allen could not agree that there had been no secrecy regarding Smith. Information had been refused to Mr Mac Donald in the Upper House in 1917-1908. The debate was interrupted by the evening adjournment. In the evening, Mr Fisher, in continuation of the debate, said no exception could be taken to Mr Kennaway's action, but the Government were to be blamed for their reticence and prevarication in connection with the matter. One letter had not been laid on the table. He asked the Government to lay before the House a return bhowing the prices obtained for iron.

Mr Russell declared that base insinuations underlay the Opposition press criticism of the Smith affair. The whole thing looked quite different after the Premier's explanation from what it did when dealt with by the press.

Mr Herries said the affair revealed an extraordinary ignorance on the part of the Ministry. The statement of the Premier, *hat an important letter i,from the AgentGeneral had gone astray, was most disquieting. He regarded the arrangements whereby Kennaway, son of the principal officer in the High Commissioner's] office, took ]* over Smith's business, as improper. Mr Taylor Premier on his gcompletef replvßto the charges of impropnetyflin A regard to the Smith affair. Messrs Buchanan and Wright also took pare in the discussion. "* Sir Joseph Ward, gin replying, said he never for' a moment believed there was anything improper in connection with the Smith affair. Regarding the letter despatched by Sir Wm, ticptemuer, 1906, this was dune " atJ'the time when he was absent from Welling- | ton, and correspondence from the High Commissioner's office • was opened by the Secretary to the Cabnet. The Premier drew the Secretary's attention to the fact that be had not seen the letter, and the reply received was that it had not come to hand. The motion was carried. The House rose a 1£11.30 p.m.

GOVERNOR'S MOVEMENTS. By Telegraph—Press Association. AUCLKAND, July 12. Lord Islington, accompanied by Captain Maitland, A.D.C., and; Mr Kerr-Clark, Private Secretary, arrived by the Main Trunk express from Wellington this morning. Be was met at the railway station by Captaib Boscawen, hon. A.D.C., and driven to the Grand Hotel. After breakfast His Excellency went to Government House, wheie he received several visitors, including the Hon. G. Fowlds, the Mayor, Mr L. J. Bagnall, John Logan Campoell, the father of Auckland. Later on the members of the standing comm ttee waited sented him with an address of welcome on behalf of, the [diocese of Auckland. "*

Ibis afternoon [the Governor was officially welcomed at a big gathering at Victoria Park, and presented with an address from the City, and he afterwards inspected the Cadets.