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Mar ch 22 was no objection to the irregularity -- in truck payments. Deputy Minister of Highways R. M. Smith produced two cheques paid to P Fife, and endorsed by him in order that they might be cashed by Gun-- ning. They were for amounts of $44 DENY WRONGMING and $37.95. The first represented 40 hours' use of the truck. W ut eivirraeerrre y § "Was there any indication that the s Province was being defrauded out of . Testify Road Foreman _ asthing on this deal?" Mr. Macaulay & asked his peputy. Found Not Guilty of "No, sir," affirmed Mr. Smith. D. h t | _ Mr., Munro lx;eemaxkf:d: 8';)Y¢;'t the ibexg |is thawn as being for ours, an ishonesty 'm; sheet is signed by W. Fife and t certified as correct by Gunning, and . CLAIM FAM'LY QUARREL %was not certified by the resident engi-- neer." | Wilieeiin i ie acems en ns On thesecond cheque, Mr. Emith | again denied that there had been any | Full support of the Ontario De-- defrauding of the Government. Mr., partment of Highvays was thrown Macaulay asked him: "Has there ever yesterday beohind James R. Gunning, been any suggestion of graft by Gun--| its Elgin County rord forman, who ning since he has been in the depart-- is the principal figure in Liberal D. ment's service?" P Paul Munro's allegations of payroli«-- "No," said Mr. Smith. "I think him padding. F:om Hon. Leopold Ma-- an honest man." caulay, the Minister, down, depart-- Mr. Smith tabled a batch of corre-- mental officers testificd that Gun-- spondence with Foley & Myers of Lon-- ning had been fourd guilty of no don, who, Mr. Macaulay suspected, dishonesty, and that the Province had "while acting for Walker, really had not lost a cent through the irregu«= been building up this case." larities which admittedly appeared in Turning to the allegations that a his pay sheets. dead man and fictitious people had The Legislature's Public Accounts been included in pay sheets, Mr. Mac-- Committee, vested with the task of aulay drew from his deputy a denial | investigating the Liberal charges, to-- that any such circumstances had beer | day will continue the inquiry, in the revealed by departmental investiga-- | course of which, Mr. Munro hopss to tion. | prove that highway cheques were paid The Minister turned next to the to a dead man, to fictitious persons, matter of Talbotville United Church, | and to people who did no highway "@a Cclassic case in this cause cel%bre.' i work. gettert th?n G(;'ln;m'sil"alr,v Tarss."!, ne statutory declaration concerning :' | Closely Questioned. this incident, published in Friday's| Yesterday, to expedite the probe, Globe, Mr. Munro claimed never to the readily available Government wit-- have secn. ' nesses were heard first. The Ministcr '"Do you mean that The (Globe closely questioned his subordinates printed a false statement?" asked Mr.-- and received front them accounts of Macaulay, Mr. Munro did not reply. the departmental investigation of the The declaration in question was that case and denial that wrongdoing had of Jolhn Brown, Secretary--Treasurer existed. "I found there had been a of the church, and whose name al-- family quarrel between Walker (who legedly appeared on the payroll. Mr. alleg:d graft) and Gunning." said Smith's explanation was that rental Highways Accountant W. H. Brown. of the church shed had been paid Mr. Munro's thirty--nine witnesseos through Gunning. from the St. Thomas area will be Accountant Brown of the depart-- heard either today cor at a subsequent ment also stated that his investigation meeting of the committee, it was had revealed no misuse of funds. agreed at the opening of the in At the start of yesterday's com-- quiry. rQnmee session, Dr. George A. Mc-- uibban, Liberal House Leader, press-- Produce Wcm. in ed further his investigation of trans-- As the first witness of yesterday's fer of Liquor Board moneys to the, hearing, Mr. Macaulay produced & Treasury Dopartment. James Mc-- mass of documents bearing on the Geachie, Board Auditor, regrettrd| case, beginning with the correspon-- that he had not brought with him| dence becween the Prims Minister and the papers showing liquor purchases | Henry M. Walker of Talbotville, orig= during the past twelve months, but ital complainant in the matter. In a they filled thirty big filing cabinets. letter to the Premier sctting forth his If necessary, however, he would have allegation, Mr. Walker said one Web-- a truck bring them to Queen's Park ster had written the Minister of High, in fifteen minutes Meanwhile, he 6 ways with regard to the matter. "Ho filed a summary. * never wrote to me," commented Mr. Dr. McQuibban recalled the fact Macawlay. "That's mistake number that at a previous hr--aring Mr. Mc-- one, and there will be a lot more." Geachie had revealed that on Oct.} The only irregularity, and this im.= 31 the board had a $450.000 overdraft | plied no wrong doing, was the use and cred!t balance of about $25.000 in ; of Wilfred Fife's name on the pay-- the banks. Mr. McGeachie explained | sheets, said Mr. Macaulay, As con-- further that on the date in qu"st!cml tended by the Minister and other wit»« * $250,000 was in the hands of the| nesses from the department. Gunning various stores and in transit to board had bought a truck in the expec-- head office. | tation that it would be used in road~ Attornev--General Price suggested | work,. He had believed that, as fore-- that Dr. McQuibban and Mr. Munro, man, he could not appear as truck for convenience sake, cexamine the owner in the paysheets, and so he board's books at the board's head of-- had entered the item under Fife's fice. This was acceptable to the Lib-- | name. But the use of trucks at that erals. ks ' time was discouraged by the depart-- ment, with the result that one truck was entered on the sheet as two teams, and paid for at that rate. Irregularity Found. In mn:'ltnc th:he Gov:arrmem's in-- vestigation case, . Macaulay said that, after Walker's complaint fiui:h Deptrt:;d t mot H'tant t ent accoun . wen $ to Lmn. and asked the assistance * of the Provincial Police in making his inquiries. All that Walker had brought % to the constable's attention was the m'nhmy in the payments to Wil-- Fife instead of to Gw';tnlnc. There was then no suggestion payments ' & to those who did no work or to a dead | man. Provincial Constable E. C. Sher-- vill submitted his m@u 41. 1932. He found no in evi«-- dence, and was informed by Resident + Engineer H. E. McPherson that there