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Mr. Dnhvrty's Position. efforts out of make come make Mr. Lroherty--May I say LO you. Mr. tr'ctirtn.aui. that in the proceed- ings of this i-ommi'utce up to the "ll-SM); l have been directing any efforts or mino toward the bringing out of information which would "who: i: Doszibie for Mr. Smith to cum». brdove this committee, and makn il statmnent or give evidence. I: "do not until this morning that I Was aware. that MP. Smith had been advised by his counsel not to give evidcnui. My activities in this com. mince hau- been only along the line of bringidlg out such facts as would tnalo, 1; possible for Mr. Smith to givr- (-decnv-x umny mince any s; 0 givo madcm-n. i Mr. ts'nnth---5rip,ht I say that I mum'- this morning prepared to give' endow-c", but, after having been iid) formed of what. has taken place. and having hoard tho, evidence given hove. I decided. on the advice at my solicitor. not to give any evidence this, morning. The chairman---' quite under. stand that. m bl Committee to Continue Work. Mr. Hrirt---1 think we should re- port those proceedings as tar as they have gone to the House, so that the House will be cognizant of the blLUIHH'n. probably this afternoon: probably the Chairman could do that. It should take probably two or three days to get through with the rest of the evidence that should be placed before the commlttoe. I am hoping that we could meet all day tomorrow and the following day, and that all the witnesses who have been asked 'to appear before the eommitte" m be. heard. If it takes ARRESTED AND RELEASED ON BAIL OF $50S ut PETER SMITH. I:x-r'vovq1w1al Treasurer of Ontario, whose arrest at the Parlia- nu-m ledings yesterday on a, charge of conspiring with Andrew H. I'm-mil to defraud the Province of Ontario was the. climax of a, dra.. matic wsvion of the Treasury scandal probe. The photograph was whom as Mr. Smith was refusing to give evidence before the Public Anuums Committee. He will appear in Police Court this morning in t' HUM-vim" with further arrangements for bail. M: tet sta H ou t'yrswN will have to take cog- ' of the situation. and it will u: of the hands of the com- :mo the hands of the Crown, would like to feel that Mr. has been given a fair oppor- try appear before the com- and give evidence. or make and give trvideno tement he desires. 1mith---Thank4 IGngm, m coutMe, we will have to sit longer. Formally Taken Into Custody. As Mr. Smith. with scores of others, was walking down the hall as the committee adjourned. he was met by Provincial Folipg Ingpecgor A. 13.. Boyd. who shook hands with him and walked with him to tho door of Provincial Police Commissioner \Villiams's office. There Deputy Commissioner Cuddy handed a war- rant for Mr. Smith's arrest to Chief Inspector Greer, and the former Provincial Treasurer was taken into custody. The crowd surged around the doorway, but Provincial Police om- cr-rs quickly cleared the hallway leading to General williams's otfice. and Mr. Smith remained behind the closed door out of sight of all be- holders. Somewhat later a '.um:heon was carried into the room on a tray, but up to 5 o'clock and after there was no Sign of Mr. Smith leaving the room. It was announced that he was attempting to obtain the "(3.000 bail demanded by the Crown. Men From Home Give Mail. he remained until 9 o'clock, when he was released under bail to appear this morning. The 'mndsmen Were three men from Stratford, one from Bebringvil1e and one from Cheslcy. Mr. Smith then was released. Those who went l, il and the amount of surety in each case were: William Krug, manufacturer, of Chmley, Bruce County, $16,000, on his residence at Chesley, valued at that amount; Simon J. Grosch. manufac- turer, of 232, Water Street, Strat- "W' $8,000, on his house and lot, lvpdb9 LUA-n' - valued at $16,000. owned Jointly by his wife and himself; William H. Grouch, manufacturer. of 30 8ttrewtt- bury Street, Stratford, $10,000, on his house and lot, valued at $12,000; Aaron Christian Werner, merchant, of the Village of SebringviHe. Perth nannm $5000. on his butcher Store cretssion-duty-tree bonds." Only two witnesses worn heard before the Public Accounts Commit- tee yesterday, A. E. Nash and G. L. McHattie, Manager of the Bank of Toronto in Stratford. In the main, Mr. McHattie's evidence mere- ly was corroborative of tho testi- mony of Mr. Nash. Mr. Nash hat". been sent to Stratford by the com- mittee to go over the books of the bank and examine entries imminent to Mr. Smlth's account. He was in. structed to pick out hams from this' account of a public or extraordinary nature only. Some Notable Deposits. Mr. Nash's testimony was that on Aug. so, 1919. prior to the 1919 elet'- tions, Mr. Smith had a balance to his credit of $35.59. On Sept. 30, 1923, after he had left the office of Pro- vincial Treasurer, he had to his credit $5,341.84. He showed that on Dec. 22, 1919, there was a (if-posit made in Mr. Smith's account of tii,- 824. and the deposit slip showed seven items of $1,000 each. Mr. McHattie in his evidence said that these bills Were brought into h.s office by Mr. Smith and handed to him for deposit, less $626 for cash. Altogether. Mr. Nash produced something like 24 deposit slins be- tween Sept. 1, 1919. and Sept. :50. 193.). Several of these deposits were of "legals," that is, of Dominion of Canada bills of $500 or $1.000 de- nomination, which, Mr. Nash said. the bank record showed. On March 3. 1920. an item was credited to the Joint savings account of Hon. Peter Smith and Laura A. Smith of $6,- 189.40. Examination of the discount register ot the bank showed this was a note signed by A. H. Pepall for $6,250. Half the Jarvis Cheques to Young. Provincial Treasurer Price decluc ed that the cheque of Jarvis & Com- pany to A. V. Young for $12.500 was dated the same day. The sum of tii,- 250 was half this cheque. he pointed out. It was shown further that Mr. Smith also had an account In the Prank of Nova Scotia in Stratford, and this account is to be examined by Mr. Nash. - - a <ghetn n Hahn." was rnaue 01 .O.va. ---- - _ showed this consisted of a $4,000 item. lea $50. The cash item list of that day in the bank showed there was a cheque from Aemilius Jarvis AV annany of Toronto to Peter (SK July 2, It made of A3,triro. & Company or 1 Smith. Mr. Price June 30 the Prov cheque to A. H. P de nouxpnu; v. _.,V Smith. Mr. Price observed that on June 30 the Province had issued a cheque to A. H. Penall for $4.000. Mr. Nash said that the total of deposits in "legals" for the time he Girexarnlned the account had been $18,000, and the total of other items he had examined was about $26,000, or a total of about $45,000. Then he cave evidence as to the deposit of bond coupons. On July 6. 1920, they totalled $707.1."c on July Cl, 1920, they.., totalled $1.827.50. and on Feb. ti, 1921, they totalled $1,827.50. Other various deposits of a similar (-haracter were described by Mr. Other vari< character Nash. Smith Had Smith Had "Very Active Account." "During practically the whole of this period Mr. Smith had a very ac- tive account." he said. Mr. Smith's salary cheque, almost without excep- tion, had been deposited in this ac- count. but these salary cheque de- posits were not included in any of tho items he bad mentioned. An- swering a. question as to the $1,- 827.50 deposit of bond coupons, Mr. Nash said that on a half-yearly basis at 5% per cent. they represent- ed between $60,000 and $70,000 worth of bonds. Other deposits ex- plained, by the witness were of the proceeds of ttw disposal ot Domin- ton of Canada bearer bonds., LIIC LA-v'u» -- _ . A. V. Young tor $12.500 was he same day. The rum of tii,- 5 half this cheque. he pointed . was shown further that Mr. also had an account in the ot Nova Scotia in Stratford, In account is to be examined 1920. a deposit was o. The depotritiir? T h