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INTRODUCED HIMSELF TO DRURY TREASURER M YS TERIO US SNYDER JUST A CONVENIENCE FOR BLIND BOND KING Harris Pocketed All the Profits, Totalling $25,000 or $30,000--Bought at 90 From Insurance Com. panies and Sold at Par to Peter Smith, Taking No Risks Testifying last night before the Public Accounts Committee of the Legislature. George R. Harris, bond broker. of Hamilton, told of how, in I921, he went into the office of the then Provincial Treasurer. Hon. Peter Smith. absolutely unknown. and negotiated a transaction whereby he sold at par Bueceatrion-duty-free bonds which he knew at the time he could acquire at a price around 90. Mr. Harris, under questioning by various members of the committee, also told the story of the Provincial Securities Company, which, he said. was himself. although it was sup- posed to be Charles Snyder. Snyder. he explained. was a clerk in his brother's office in The Mail and Em- pire Building, and Snyder gave Har- ris power of attorney to sign cheques, in the name of the Provincial Securi- ties Company. All the letters writ- ten and signed "Charles Snyder" actually were dictated and signed by George R. Harris, witness said. and when asked how it was the signa- tures seemed to vary from time to time he replied that perhaps' he had used a different pen. Profits $25,000 to $30,000. None of his partners in Hamilton had received any ot the proflts, Harris said. Asked to produce vari- ous books and documents in connec- Hon with the Provincial Securities Company, Harris said he would do so if they were "available." The last he had seen of them they were in his oftlee in Hamilton. he said. and he already had looked for them for the meeting last night and was un- able to find them. He was ordered to make careful search and produce all documents possible. Tall. Dark and Cool. Harris said the profits of the Pro- vincial Securities Company amounted to between twenty-five and thirty thousand dollars in the few months in which it was in existence. He had divided the profits with no one, he testified. and Snyder had received. All told, only about 8300 or $400. Tall. dark, with hair slightly grey- inc, Harris. absolutely self-possessed and equable in temper. told his story from hours of question" from various members of the vommittae. He said besckay that the firm in Hamilton of Mor- Ran, Dean & Harris in 1921 was in a "tate of disorganization" and that he had read in the papers of the dealings of Aemillus Jarvis & Co. in /udcession-duty-free bonds and he had decided to see if he himself could make any money. He made a visit to Toronto. he testified. and calling on the omees ot the Canada Life Assurance Com- pany and the Manufacturers Life he produced the card of Morgan, Dean & Harris and asked for the price of kueeession-duty-free bonds. He was told, he said. that these oompanies would sell these bonds to them at the book-price value. which was then below par. - -- - _e_t=2--. n..--...'. He made a visit teatified. and calling ot the Canada Life J pany and the Manuf: "I'll!" pun. Harris then told of visiting Queen's Park and calling on the Provincial Treasurer, Hon. Peter Smith. Introduced Himself! He was introduced by no one, and Mr. Smith did not know him and he uid not know Mr. _Sm_ith. Harris told tht? committee. Asked what the con- versation with Mr. Smith was, Mr. Harris said he asked him if he "still was in the market for buying suc- veasion-duty-frec bonds." Mr. Smith told him he was still open to offers. Mr. Harris said. Asked by the Pro- vincial Treasurer In what capacity he appeared before the Provincial Treasurer, Mr. Harris said he ap- peared there as the Provincial Se- vuritiea Compgny. ' Tr . Returning downtown, Mr. Harris. then. he explained to the commit-i tee in anuwer to questions, wrote a letter to Mr. Smith. to which refer-' r-nce already has been made, with thei letterhead typewritten, with thel address as 21 mm in The Mail and. Empire Building. and With no date; nn the letter. Mr. Harris explain-, ed to the committee that tho omis-, sion of the date was an "ina.dver-' tence"; that he had overlooked it purely 'by chance. This letter made an offer to the Provincial 'Preaaurer to sell succession-d'uty-free bonds at par. with par of exchange and with accrued interest. Mr. Harris and he could not recollect how long it was after he had seen Mr. Smith in his office that he had written the letter. Does Not Recall Details. Neither could Mr. Harris explain to the committee in what form this offer to Bell these bonds had been accepted by the Provincial Treasurer, whether by letter or by telephone. Pressed on this matter. he said that no one had telephoned him, but that he himself might have telephoned to the Provincial Treasurer's office. Under questioning by Hon. Charles McCrea, Minister of Mines, Mr. Har- .'lL'UIKu, n.........',. v- '7', 7 _ ris was asked If the acceptance of his offer had been received from the Provincial Treasurer: before he had bought any of the bonds from the Manufacturers' Life. "I think so," said the witness. The Provincial Securities Com- pany was formed ot Charles Snyder. who was a draftsman and clerk in "arr-18's brother's office. "Snyder had no interest In the firm. but Snyder was the firm so far as the bank was concerned. and I had '. 25'2 Mr. Harris explain wn, Mr. Harris to the commit- [power of attorney," witness Aid. 'Asked why Snyder was in the firm at all, Harris said he had made what (tirti?:)1isrls?i'itr,r'l't',s,i he had as m "eonvemi- ence" to himself. Having obtained power of attorney' from Snyder, witness said he made) arrangements then with the Bank of Toronto to tintuttte the transactions. He did not think that the power of attorney to himself from Snyder had _hetsrt Siam-d in the bank; as long as 'it was HignOd. it made no difference iwhm-r- it was signed, Harris said. iWhon ho went to see the Provincial i'l'rmsurm' ho owned the bonds he ivms offering to sell in the sense that iho had an option on them. Later he 'explnined that he had been informed by the insurance companies that them bonds would be sold to him at their' book value. Mr. Harris showed the only sur- pris" of tho evening when Mr. Price, Wading from blue book re- turns. showed that he had paid the Canada, Life Company $55,845.13, whom tho, book values showed them to ho $50,814. Mr. Price asked him if he had known that the Canaga tnite; had "put it over him" for $5,000.} Mr. Harris replied that that was the! first intimation he had that it had) done so. Tho bonds from the Canada Life had boon bought at 91.38, witness said. and he had made 8.43 points on the transavtion. "And you didn't tarturors' Life were bought at 85.29 ---ahout $34,000. in round futures. Ho Sold these bonds, he admitted, at about 339.000, making a profit ot uhnut $3,000. _ Deivinx into blue book roturns.' "tho Provincial Treasurer showed that those bonds were returned as! having been sold to Morgan, Dean &I Co. "You bought these in the! Annmc of Morgan. Dean & Co"! lhnt when you wont to sell you sold; ito tho Province under the name ofi (tho Provincial Securities Company,": isri'id Mr. Price. 'r, No Delay in Cashing Cheques. In all cases cheques: had bean leashed or deposited in the bank the day they were received. the evidence showed. and vouchers in many cases were signed for the cheques at the Provincial Treasurer's office. Some- }times these vouchers were signed by IISnydpr, and on one occasion at least hy G. M. \Vehrele. Asked who {\Vehrcle was, Harris said he had no idea. unless he was a messenger 'from the bank. Finally. he said he :thourzht maybe it was a stenographer tin his brother's oMce in The Mail "Building. where Snyder worked. State Loss try Province. Reforc Mr. Harris was called .to pay u c "No, si Harris. Before Mr. Harris was (emu-u w the stand Provincial Treasurer Price called william N. Douglas, Chief Clerk in tho Provincial Yreasurer's Department, who produced and iden- tified several documents bearing on the case. Mr. Douglas said he had "omputed and compiled the cost of the securities bought from the Pro- vincial Securities Company and those bought in, of similar kind, and at practically, the same time, by the Bank of Montreal for the Govern- ment. The total loss to the Prov- ince in the deals. he said, was $51,- 181.85 on purchases totalling t42,- 850. He did not know who Snyder "as. and never had seen him, to his knowledge, witness said. Charles Mathews, Deputy Provin- vial Treasurer, went over all the Akanncc icgued to the Provincial Se. Charles Mathews, may", = .-. vial Treasurer, went over all the cheques issued to the Provincial Se- curities Company, which "ore en- dorsed either by the guarantee of the Bank of Toronto or Charles E. Snyder by his attorney. Geme Har- ris. On one occasion the signature was Charles E. Snyder. and some- times the name of the attorney was placed as G. Harris. Harris. in his evidence, said he had endorsed the _.-.........-. ,,rvaptm the power of at- times the name 191 um w placed as G. Harris. Ha evidence. said he had an cheques under the po" torney given him by Snyi Harris said that a wee knew that Snyder was He did not know whet! had any relatives in Tore and 'did not know whe now, he said. The Pt" of his firm in Hamilto father-ln-law. A. G. Bro' who had been appointed of O. T."A. cases by Mr mm'sgr sin-der- LUI B.'.r' - rasion the signature Snyder. and some- of the attorney was --'- "atria. in his JW "Inc-r. --- The present Nead Hamilton 1Vas his G. Browningv K.C., __AA1I§II'I' Dy W"J"'"' . a week ago he , whether Snyder in Toronto or not, Phe present, we}! uvu--a -- m over all the no Provincial Se. which "we en- he guarantee of to or Charles E. ...u Gem-ire Har- 'iyixr-o'é'ecutor Raney