Ontario Community Newspapers

Ontario Scrapbook Hansard, 8 Apr 1924, p. 2

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Andrew Penal]. who drew at least one Commission of $7,500 on the Jar- via bond purchases that Mr. Rogers knew of, is the same Pepall who went to England as representing the Provincial Government on bond pur- chases, and who was paid something like $80 a day for his services, which amounted in all to about $4,000. Although Mr1fto.trtrt' wee drawn into a statement that Pepall was to use his influence to get the business for Jarvis at their price and without competition, he qualified the inter- ence that seemed to be drawn by committee men by saying that the Jarvis concern always bid what they thought the market Justified. and he had no doubt that Mr. smith called " every bond man in the city on the same deal to get his terms. He did. however, interest the com: mittee hy relating the details of an; (arrangement made by himself with; Andrew Penal}, brother of Harry G., T'eptul, omee man of the company,j who had been introduced by Harry; Penal! as able to influence Provincial; bond business in the direction of the! Jarvis concern. Mr, Rogers said that) he had made the arrangement of? pay Andrew Pepall one-quarter of; i per cent. on all bond business that itrs was able to direct to the Jarvis "orltlern " the Jarvis price. Although the story is on. having been brought out before the Public Accounts Committee two years ago, new members showed merriment in the recounting of the circumstances of the friendship of Andrew Penal] and Peter Smith. The former Treas- urer, it was stated_ was formerly an a.gent under Mr. Pepall for a, farm-lighting apparatus, and they used to make sales tours together, on which occasions Mr. Peppan used to occupy a room in Mr. Smith's home-a fact which prompted Sam Clarke to comment that that was how the former Treasurer "got tht." Went to England for Peter. Inftuenee Bond Business. Province of Ontario inscribed mack purchases in England'. and upm: which.' the department contends half a million dollars' protit was made by the bond concern. Mr. Rogers. however. 'had severed his connection with the flrrn before the deans were completed. he said, and vouid not go into details for the com- mittee. Price examined VRJNR. Rogers. for.. merly General Manager of Aemilius Jarvis & Cg..Ain connection with the 1tesidktilttir.000 cheque. the stub of which has been produced in I_orpmittee, Provincia; Treasurer Peter Smith failed last night when Plexander Rosa. former Manager of the Home Bank bond department. stated he had no recollection of ever Landling' the cheque or of' seeing it. The cheque was a refund on pluytits from nn Ontario Government bond pale and it had been hoped that the former bond debarzmez: manager would be able to throw some light nn_th_e_ mystery. ' Further efforts on the par; ot the Public Accounts Committee to trace the mining $15,000 cheque sup- posed to have been made out to Hon. FURTHER EVIDENCE AT TREASURY PROBE 'Undo," Pepall and Smith Used fo Sell F arm Light- ing Apparatus Together and "Andy" 'Stayed at Peter's House -- Got Quarter of One Per Cent. FR [END OF PE i'jijji? IS DRE W co MMISSION FOR AID TO DEALER Commission on Business Secured From Aemilius Jarvis & Company Treasurer uesda" April To aiettle the dispute as to the accuracy of Mr. Douglaa's titrurea, Mr. Price read a. telegram from the Bank of Montreal, London, eirnd1rm.. ing the bond prices which were sub- mitted to the committee for pure new of oottu1tu%gtn,._.._-,,-.L. Mr. Fisher asked where the circu-l lam which had been prodtwed came from. Mr. Pt"ictx said they can"! [from the Bank ot Montreal, Gavan. H in"lllt agents in London. , The committee. however. decided that Mr. Douglas's opinion was not evidence. I L' "Do you know it anything We. bought at that price?" asked Mr. Fisher. Mr. Douglas said he did hot know the price. Finally it was decided to permit Mr. Price to go on with his examination of the wit- Worthless, Says Dohcrty. The committee generally aban- doned the larger items of the evening in a. pursuit of that $15,000 cheque, :ho atu'b of which purported to Show that former Treasurer Smith got it, Ross mud he had no knowledge of who '%bertraxyted" the cheque from me files. swore he did not do it, and stated that any of the bank em- ployees would have opportunity to steal it if they so desired. That Elusive Cheque. During the night's proceedings Slam Clarke, Liberal member for Weut Northtrmherland, the veteran of the Legislature, brusquely com- mented that it Hon. Peter Smith trot $15,000 one month after he came mm offtce, he got "ten millions" be- fore he went out, whereupon Mr. Clarke was cal-led to order by the Chairman for "making a speech." Chief Clerk Testifies. W. Douglas, chief clerk in the 1reasury Department, was first call- rd to prove an Order-in-Council of Feb. 24, 1920, authorizing purchase ot three lots of inscribed tstock--- 'i200,000 3% per cent., purchase price to be 80: fl,640,647 and 2817,- 244 of 4 per cent., authorized pur- u'hase price 90 in both cases of 4 per cent. issues. Provincial Treasurer Price pro- duced London quotations showing that at that period tho stock was quoted at 66% for 3% per cent. Issue. and 75 to 82 for the 4 per cent. issue. He produced an Aemilius Jarvis & Company Circular offering TS for 3% per cent., and 82 and $414, for 4% per cent. Those pres- ent at Cabinet Council meeting that day were listed as: Hon. Messrs. Drury. Haney, Nixon. Smith, Bow- man. Doherty; Grant. Rollo, Car- michael and Biggs. Bought at " and Sold at 80. - Mr. Douglas produced computa- zmns showing that the total amount purchased by Jarvis & Company, 13 1-2 per cent.. due 1946, was 2655,- 989 17s 8d bought from holders at 75 and sold to Government at 80. Four per cents. in the circular were asked for at 82. and £798,141 were sold at 90 to the Government. The market: price was even less. Mr. Price said. Another class of bonds. offered to be purchaSed in the cir- rulam at 84 1-2, were sold to the Government at .90. Mr. Price said the total profits to the Jarvis firm was f117.188. or about $570,000 on transaction of £1,826,729 worth of bonds bought. These fttrurea were subject to searching questions from Messrs. Make and Fisher of the committee. Mr. Clarke 'elieited from witness tinat he did not know what price Jarvis & Company paid. Q.---Do you think Andy Pepw bad influence to " that price. without competition, that you would (at a. bitrtrer price? A.---wt, would " ways be prepared to pay the Prov- lnce the market on the bonds. _ Q.---Do you know of any other buaixgss Andy got for your ttrent A.- o. Mr. C1arke--Thttt. is when he lot the light. _ He was the same Andy Pepatt, Mr. Rogers believed. who wag paid $4,000 to represent Hon. Mr. Smith. as brought out two _ years ago in Public Accounts. Q.---Were there other deal. on which the commission was paid? A. w,--rTha,t is the only deal I hum m- 'trlletttion of, became an soon u Andy Papal] came in and started to 'innuence the Province the nutter was really taken out of my hand; The Same Pepe". 1 house , Mr. Price brought out tint Andy Papal! was the same Papal! for whom Hon. Mr Smith used to .011 Delco lights. L "Anflnhe lived for a. time in Andy's Mr. Rogérs said' he never our tho entry in his books, nor tho returned cheque. Q.----M'hy was this cheque handed to Harryto pay Andy? A.--Hu-ry was, looking after it. Q.--mow was that 17,600 payment made? A.--BY currency cheque. My bookkeeper drew the cheque. I an the cheque to Harry. The chequo' was on the Canadian Bank of Com- merce. Q.--When was that arrangement? A.--As far as I can recollect. that was made shortly after Peter Smith came in. Q.---Do you remember when the flrst payment was made? A.-Tho only cheque I remember was one for $7,500 on a $3,090,901 pyretuoe. l Q.---That is, if the Government gave you a Treasury bill of one mil- lion dollars you would pay Andy Papal] a quarter of 1 per cent? lar." he were in a position to to: t at. Q.----And before you made that ar- rangement with Andy PepaII. you say you had a, tank with Harry? A. ---well, as I remember. Harry came to me and said Andy was a. personal friend of Peter Smith's and he could influence certain buai- ness for the house, and would we he prepared to pay vommiulon, and I said Bure--l quarter of 1 per cent. On anything he could turn our way'on our purchase price. After Smith Came In. 12.--And".' A.--ie. I said I would give him a quarter of 1 per cent. on any business he could turn our way. Of course, the price would have to be fixed by us. _-__ ---ruwu. wuu broker. mid Hm had been in the bond buuneu for ',15 years. In 1919 and 1920 he had 'been with Aeminua Jarvis & Co. In Ahat particular period he was man- 'ager-of the item. At that time Mr. Jarvis was the only member or the Virm. Others working with him {then were Mr. Jarvis Jr., Mr. Harry H'epall and Mr. tTykes. Av-when I was manger of the company, Harry PM?! intnoduoed his brother, Andy. to me, and Andy was a personal friend of Peter Smith's. , Q.--How do you know that? A.-- I don't know. except what Andy and Harry told me, and that they could 'influence a certain amount of Dimmers. I told him I would give him a quarter of 1 per cent. was made In your ofN.ti, reiaritiU Government business?" A Friend of Peter% Quite a commotion was caused by the frantic efforts of several photoc- raphers to wheel in an appantul for taking a photograph. Hon. Dr. Godfrey protested at the fumes that would he 1treuttdu---"ooiaon4rur People," he said. The Chairman ordered them to "hurry up" and the committee halted tor five minutes while the picture was alum. After fighting through the crowded ml. the photographers couldn't get the apparatus out and there was seam! ll proar during another struggle down the jammed aisle. "Shortly after the Drufy Govern- ment ca_me_ in what, arrangement "I had nothing? whatever," he said, "to do with the European (led. I wasn't consulted about it." Photographers Cause Cormotlon. T" a 3989'"), bond broker. said

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