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Q.-Was there any other bank account shown at the Bank of Nova Scone; was there any evidence to Show there was an account in this British Loan Co.? A.-mo. a---was there anything to show there was a personal account being carried by Jarvis & Co. on behalf of Mr, Smith? Ae-No. Q.--Anartltirur ilCah,ow Oder & Hammond carried a personal ac- cognt tpr him? A.--No. Q-Except the cheques? tsv--- Nothing except the cheques. q.--And Just this: In the cheques they would not look as if he was checking out of their account and realizing on the brokerage business? A.--mtere were no other theme in his account that refezvea- Q.--qgo other items that you conga rererAto? A.--No. Mr. diu'ria2-kiiirat Y'all , tl, Ct Tcl',',',',',,',':.;',':',','-' {Eli'thI e amt! ' Cum-Ne. on I NN), Col. Q.---" showed there was an ac- count on the Bank of Nova Scotia. You were told that? A.--a think I way informed that. .0! June' the' iaiidii' aGiiuiriaiiaiiii out is 8600 even. IP-what date in June? A.-June it.-And what date in May? A.-- May 30, 1923. Mr. Currie-an your examination of the accounts was there anything to show Mr Smith carried an account in another bank? A.--There were transactions that--- From Bank of Nova Sootia. Q.--From where? A.-Appear to conga tam: the Bank of Nova Scotia. Mr. McBrientirtGri _ it' bGT, "31' Nova Scotia in Stratford? Ao-chat I don't know. 1928, the largest amount chequed 911t_ is $8,000 even. In the month e w. - v-Uv a". Lu. any large amount issued Enact that amount? A.--In the month of May, A.. I Smith': 1 Mr. .answer lot Aug iotedit l Q.--/rtttit account we are speaking of was current account ? W ere there any large sums to the credit of his Ewing: account? A.--prhe largest amount placed to the credit ot sav- inn was $6,189.40. 9r-Altotrtnher? A.---That was the largest individual amount placed to the credit. Mr. widdituld--ayo you know his ereditctrettirtnintrt A.-----), the cur- rent account would give us all that information. The Chairman-tred" balance ? A. --'1'he highest balance to Mr. Smith's credit. the current account. I would any that my recollection is around 811,000. (t.--'rtteae coupons were netro- tioble without the bonds? A.---) don't know,what the coupons were or 'utythintr. I only know they were marked as cannons deposited. Mr. Priee--Thesr are negotiable hot like money. Mr. Proinx---Mrtuu was the high- eat aTount on deposit during four M 'Ue5day. Apr" Mr. Currie expressed astonishment that the bank should have charged Mr. Smith commission for purchas- ing on the several occasions when Victory bonds were sold at the bank by Mr. Smith. He characterized it as "a mild form of graft." _ Mr. MeHattie said that some ot the bond coupons cashed were for Province of Saskatchewan bonds. Not to his ,knqwlque I""-""?':,",,?,:: _ .. . ' t -- A "Did you think they ran a print- ins office down here?" asked Mr. Currie. A.--a didn't know where they were coming from. I have ab. ways found Mr. Smith an honorable and upright man and never ques- tioned them. Mr. McHattie thought that the de- benture deal with the British Mort.. gage & Loan Co. was a personal transaction of Mr. Smith's, with no particular significance. Proceeding, Mr. McHattie said that, not to his recollection, did Mr. Smith have Mr. Penal! with him when he came in with that note, nor did he tell him that Pepali wanted the money. He did not have any understanding that the money was to be used by Mr. Papal] for financial transactions, nor did he know what the nioney was used for. Questioned by Chairman Finiayson as to any conversation he might have had with Mr. Smith subsequent to committee sittings. Mr. McHattie said that Mr. Smith had casually mentioned that Mr. McHattie might be subpoenaed. Mr. Smith on a couple ot occasions had asked t-- look over his deposit slips to cheek up his bank book. Mr. Currie asked Mr. McHa.ttie if he didn't think it queer that Mr. Sniith should deposit so many le- ga s. % "at "as proceeds or a note signed lby A. H. Pepall in favor of Peter l Smith. Q.----" note for how much? A.-- $6,250 came into our records. Q.--36,250? A.--Yea, sir. Q.--And what period did it run? A.--a don't know how long the note was drawn up, but I see with refer.., ence to our books that there Watt. $596 interest on it, which would; look like a two-months note. V Q.--Pald slightly before maturity? l A.---Discounted a few days after the! (date ortho note. f Q.-Girhat is that :That was proceeds, of [by A. H. Penal] in f Witness said Mr. Smith did not pu: up any collateral, but that he knew Mr. Smith, and knew that he was good tor it. . Pcpall Not With Him. air. 'e6.-TWt%e, " your A.--yea, air. The Chairman-bid Mr. Smith come to you, Mr. McHattie? A.-- I don't know whether he did or not, Q.--Well, did Mr. Smith have an authorized line ot credit? A.---No, sir, maven Bills of $1,000 Each Handed In for Deposit George L. McHattie. Manager of the Bank ot Toronto at Stratford since December. 1912, was the next witnem. He said he knew Mr. Smith intimately. He said the first occasion on which he saw legal bills! of a large denomination was Dev cember 12, 1919. when Mr. Smith brought in seven $1,000 bills and handed them to him for deposit. He made out the deposit slip. Mr. Smith took 8625 in cash. and there was another item of 8449. added by cheque, he thought. making a total 'deposit of $6.684. He did not re- member the occasion distinctly. and jtold Chairman Finlayson that there lwas no comment passed between ihim and the former Treasurer as to l thelegal tender. Jur. Currie-Who die note? A.--Mr. Smith. Q.---Mras it you? A.- The Chairman-bid come to you, Mr. Mer, I dPn't_lylpw whether l -- - "e-""""-'"""'" _"'."..'.. F (2.--That is in red; does that mean it was in savings? A.---That was in the savings account. Proceeds of Note From Penal]. The Chairman asked as to the port of an item on the ledge March 3, 1920, credited to Smith's accgunt. 89,189.40. met Deposit December, was. Q.--Jusrt one question, and that is: did your examination Show any similar deposits since Sept. 19 last, since the recent election in October of last year? A.--The last deposit that showed bills of 3500 was on Dec. 22, 1922. Mr. Currie-A year ago. Witness said Mr, Lagt .that, item ? pri discounted that we -ledsferGt Penal]. asked 15'! Pur- muoney go into cam 'rat _ q 'largest amount relating; "a". --q. ;transactions that he rememgmue was $6,051.51. and there were cred (giant) Sb"? connected with it no r. . mm"?! :2 yawn! Jrlven an on- Seven _V_V-.VV .Vu w] Mr. Smith was then ttr portunity to make a stat refused to he sworn, and quickly followed. even Years in Penitentiary Is the Maximum Penalty The information against Hon. Peter Smith is laid under the Criminal Code, and charges con. spiracy to defraud the Govern. l ment. For ottense, of this nature I the maximum penalty is seven years in the penitentiary. l BUSINESS 0F SESSION BROUGHT TO CLOSE IN SOLENIN ii1Slil()l1 Formal Prorogation of Legis- lature Fixed for Thurs- day Afternoon After gwing third reading so no ttwer than 58 private and Govern- ment bills. the Ontario Legislature concluded the business ot the. sos~ Mon at 6 o'cloek yesterday attet. noon, with the exception of the Puly.. lic Accounts Committee, which will Ht today and Wednesday, and the formal prorogation. which is Sch!"- duled for Thursday. SMITH INCIDENT DEBATED The news that the Pubii: Ap- counts Committee would sit for two days was given by Premier Ferguson shortly after the opening of the House, in reply to a request by Hon. Manning Doherty that the inquiry now proceeding be continued during lhe recess of the Legislature by a. subcommittee of the Standing Com- mittee on Public Accounts. Interim Report Muted. Owing to the general excitement over the events of the morning it was nearer 3.30 than 3 o'clock before the members got down to business. Their flrat duty was to listen to the presentation by W. H. Finlayson. Chairman of the Public Accounts Committee, of the interim report of his committee, which read: "Your committee has had pro- duced before it certain accounts, Vouchers, correspondence and par- ticulars in connection with the pub- lic accounts of the Province of On- tario for the fucal year ending Oct. 31. 1923. and during the course of examination ot the said accounts: it was moved by, Mr. Sinclair and sec- onded by Mr. Fisher. _ _ . ' "That the Honorable Peter Smith be summoned before this committee on Friday, April ll, to give evi- dence regarding commissions paid Provincial deposits in the Home Bank and also regarding commis- tsiont, paid on the sales of the Pro- vincia:1 securities and to produce be- fore the committee all books and documents in any way relating to such transactions. - ." "That in pursuance of said summons the Hon. Peter Smith ap- neared before the committee on Monday, April 14. when he was call- 6'd as a witness before the commit- tee and on being ordered to mke the oath as such witness. he stated to the committee that he refused to triv.t evidence, on the advice ot oouneel.' AU of which is respectfully trub- mitted. " "(Signecn W. Fin-Jayson. Chairman. . o'ch an op- statement, but "wuu. out his arrest