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At the cross hall, by the elevator, Inspector Boyd met Mr. Smith and walked with him to the door of Gen. Williams's office. There -- Deputy Commissioner Cuddy handed Chief Inspector Greer the warrant for Mr. Smith's arrest. Mr. Smith walked " into the office, accompanied by Cuddy. Greer and Boyd, and there was served with the warrant danu formally placed in custody. While his counsel, H. H. Dewart, K.C., who sat beside Mr. Smith dur-- ing the last hour of the proceedings in the Public Accounts Committee, was endeavoring to secure bondsmen in the city, Mr. Smith and the Pro-- vincial officers remained at the Pro-- vincial Police office tondsmen to the full amount of the sum demand-- ed by the Crown-----s50.0')0----001)111 not be secured in Toronto, and word was sent to Stratford. Taken to Police Headquarters. Mr. McHattie, in his testimony, when asked about Mr. Smith de-- positing legals, declared that he al-- ways had found Mr. Smith "an hon-- est and upright man,'" and never had questionel him in any way. Only last Saturday, he said, he had ascertained that in one case_ the coupons deposited by Mr. Smith were from 6 per cent. Saskatchewan bonds. 4 is thblcs 1 U 0 Th mAWKKNIEEInT At 5.15 p.m., after the offices were closed for the day, Mr. Smith was taken by the police officers through various offices of the Attorney--Gen-- eral's Department, and out to the quadrangle, where he was quietly slipped into a police car and taken to the Detective Department at the City Hall. Al the afternoon the ballway outside General Williams' office had been crowded by persons anxious to catch sight of the former Provincial Treasurer. Many had A place of vantage on the floor above looking over the railing of the sky-- light shaft. The quick manoeuvre of the officers enabled them to get w.-f\-l;i before leaving the CoOmIiITUCCC room Hon. F. C. Riggs shook Mr. Smith's hand. Then all walked slowly down the hall together. Placed in Custody. Mr. Smith to the City Hall virtually unobserved. Mr. sui.ih remained in the inner office of the Detective Department aweiting the arrival of his bondsmen on the train from Stratford, avriving about 7.20 o'clock. It was toward 3 o'clock when his counsel, H. d Dewart, K.C., strolléd _ in, closely followed by Assistant Crown Attor-- ney J. C. McRuer and Magistrate '.Jacob Cohen. The Stratford party, numbering about fifteen altogether, lcame in a body and all went into the detective office. Deciding on Bondsmen. A short delay occurred, at the close of which the whole party moved G@ownstairs to the Police Court Clerk's office, where Messrs. Dewart, McRuer and Magistrate Cohen had already begun the prepar-- 'ation of the necessary bail papers Hon. Peter Smith, with Chief In-- spector Greer and Inspector BRoyd, remained inside the railing, while iMr. Dewart interviewed the Stratford party as to bail bonds. While police oficers refused to admit that only the ordinary for-- malities were followed, the proceed-- ings seemed to take an unusually Long time. Mr. Dewart sat at one desk. and as he obtained the con-- sent to a bondsman he handed the name to Mr. McRuer at his left. The Assistant Crown, Attorney had a personal interview with each man, inquiring as to his property holdings anmd if he was in any way interested in the proceedings before the court, and if he was acting as bondsman for gain or profit. In every case these questions were answered to the sat-- isfaction of Mr. McRuer, the only in-- terruption in the proceedings being when a man admitted that his prop-- erty was held jointly by himself and his wife. This necessitated his bail bond being cut in half, and another man stepped forward to make up the balance. While these formalities were be-- ing gone through, Mr. Smith moved around the room, having a word with ith the warrant and who were to go on the o | ue,Sda.~/ ; this one and shaking hands with| others. He seemed to be in better spirits in mecting these persons from his home town, and to be cheered by the confidence they displayed in him in comfg to Toronto. He said to The Globe man: '"See that man there? He is one of the most prominent Con-- servatives in Stratfond." Mr. Smith was told that a great number of persons wanted to go on his bail bond, but they were unable to catch the early train from Strat-- ford last night. They arrived at 10.20 p.m., and were mei at the station oYy Mr. Smith, and then went to the Fote!. Thore wi'l bhe now bond--mon on the bail papers this morning; amount reduce zance. "That will do for tonight," said Mr. McRuer, and the party sepa-- rated, Inspectors Greer and Boyd for-- mally givwing Mr. Smith his liberty. For the proceedings the Police Court Clerk's oflice was formally turned into a courtroom. By 9 o'clock last night al! the formalities were -- completed and Magistrate Cohen called Hon. Peter Smith and his bondsmen around him. Each bondsman was asked if he was content to be bound for the amount of his bond to ensure the appearance of Hon. Peter Smith in the Toronto some 0 Police Court this morning. Each man nodded assent. The same ques-- tion was put to Hon. Peter Smith and he, too, nodded assent. Again at Liberty. The arrest of yesterday was a di--| rect development of the evidence given to the Public Accounts Com--| mittee by Messrs. Nash and McHat-- tie. During the hearing of yester--| day morning Attorney--General}| Nickle, who was present for part of| the hearing, learned that Mr. Smith! was being advised not to testify be-- fore the committee. Mr. Nickle im-- mediately conferred with the Pre-- mier, and then instructed Deputy Commissioner Cuddy to swear to an ; information charging conspiracy to defraud. The papers were prepared | and the information laid before Gen. | V. A. 8. Williams, who is a Justice | of the Peace. Thus the law was set, / in motion. | Auditor Turns Searchlight On Smith's Bank Account Called to the stand, Albert E. Nash stated he was of the firm 'of Clarkson & Co.. which firm wase re-- quested to examine the account of the H#n. Peter Smith in the Bank of Toronto at Stratford. -- "x\irr.'Priée----Pursuant to that order of the committee, did you examine Mr. Smith's account? A.----1I -- did, sir. Q.--It was the intention of . the committee, Mr. Nash, that any of the private dealings of Mr. Smith be not brought before the committee; have you looked into the other deal-- ings which appear to be of a public or extraordinary nature? A.--I have tried to pick out from the accounts those items of a public or an ex-- traordinary nature only. Q.--Have you looked at the de-- posit slips in the bank at Stratford ? A.--I examined every deposit slip from Dec. 1, 1919, until the end of September, 1923. h m aralh ; .Q-;_I';I'x:s't ;)'f--S'éptem'ber, 1919; that would be a few months before Mr. Smith became Provincial Treasurer? A.--Yes, sir. Bank Manager Assisted. Q.--Did you have the co--opera-- tion of the Manager of the bank in going over those deposit slips? A.-- Yes, sir, the Manager of the bank assisted me in getting the slips out and was with me when I made the examination. % Q.--Well, then, give us the first item which geemed to need expla-- nation? A.--On Dec. 22 of 1919, the current account of the Hon,. Peter Smith showed a deposit of $6,824. An examination of that deposit slip shows that it consisted of seven items of $1,000 each; one item -- of $49, and that there wase deducted $625. The seven items of $1,000 are, I am informed by the Manager of the bank, likely to be items of bills--large bills. f those h ' g last nirht the amount of wWo their recogni --~A & D* One--Thousand--Dollar Bilis, Q.----Did you trace those seven 1'$1,000 bills? A.--We examined the Q.--On this deposit slip which you produce, dated Dec. 22, 1919, we have six one--thousand dollars. That would be six one--thousand--dollar bills? -- A.--That is what I am in-- formed it means by the Manager. tceller's specification of cash on that mmight; that is, the night of Dec. 22, '1919, and it showed no large bills iis carried in the cash. But on Dec. 22, on the same day, the remit-- tances despatch book of the branch showed that $7,000 was remitted to Toronto on that day. + ",Anothcr Deposit Dec. 27. Q.----And latterly put in in writ-- ing one $1,000. A.--One $1,000. Q.--Making altogether seven $1,-- 000 bills? A.--Seven $1,000 bills. Q@Q.--As far as you can gather from the deposit slip and in the 1;1- formation you have received? A.-- Yes, sir. F The slip was entered as Exhibit 137. Q..--What is the next item? A.-- On Dec. 27, 1919, the savings ac-- count of Hon,. Peter Smith in the Stratford branch of the Bank of Taronto shows a deposit of $1,-- 143.98. Q.----Mr. Nash, you produce de-- posit slip dated Dec. 22, 1919, in the name of Peter Smith and L. A. Smith, Now, Mr. Nash, when you produce that, Dec. 27, 1919, I see that it is for P. Smith and L. A. Smith, or either? A.--That is right. _ Q@.--What is that? A.----The count was a joint account. I informed that L. A. Smith is informed that L. A. Smith is the wife of Hon,. Peter Smith, and that is a joint account in the savings de-- partment of the bank. Q.--And in this deposit slip we have one $1,000 bill? A.--Yes, sir. Exhibit 138 is entered. Mr. Proulx--Mr. Nash, does the deposit slip indicate who made the deposit? A.--I can only tell the in-- formation I have; the Manager of the bank tells us he wrote out the first deposit of $6,824 himself. Q.--And this is the second one? A.--The second one does not apnear to be in the same handwriting | | don't know who wrote it out. Note for $6,250 From Pepall _ Note for $6,250 From Pepall. Mr. Price--Then in 1920, March 3, 1920, appears to be your next item? A.--On March 3, 1920, there is an item credited to the joint ac-- count of Hon. Peter Smith -- and Laura A. Smith in the savings «d4e-- partment of th> Stratford Bank of ,Toron'to of $6,189.40. An examina-- tion of the discount register of the bank shows that this was a rote |\signed by A. H. Pepall for $6,259, |\ the difference between that and the |$6,189.40 being the discount taken | by the bank at the time of discount-- i ing the note. i Q..--What length of time was that? A..--The note was made for itwo months. I didn't gsee the note, | presumably it having been returned | on payment. | Q..--But the note was for $6,250, s t LiX an AUsmnch §2 A.----Yes, Itinat? A--Int UUOLC, L ihs RAOLG. |two months. I didn't sce the note, f presumably it having been returned | on payment. ' Q.--But the note was for $6,250, 'i digcounted on March 3? A.--Yes, | sir. \ _ Q..--Coming due in the latter part | of April, wasn't It?" A--I believe \the note was actually due on the | 1st of May, but there is an item on |\the 28th of April, which _ we will | come to later, which will clear that | up. 1Pepall Note to Peter Smith Half of Cheque to Young? qo ces c auic Nee and L. A. Sm 3ra of March, | gives $6,189.40, d --Just s0o members of the will grasP the signif-- at, I may Ssay that the Jarvis & co. to 4: V. ea March 3 1920, for ; on the same day as this, is exact!y half. --What date? --March 3, 1920; $6,250 alf of the cheque. is the deposit slip refer-- 1920 which in the latter part 2 -- A.--I believe ally due on the re is an item on which we will h will clear that f'";}{d credit ' is the dis--