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"I find a further letter of 11th June informing him that I was about to commence proceedings and asking for the name and address of his solicitor; at the same time I forwarded him a receipt for £10,000 which he paid on account."

"I might mention also that on 11th June I applied to the Watford Development Company for the payment of £748 0s. 7d. for goods sold and delivered, and the reply of 15th June from that Company's Secretary was to say that a number of items of the Board's account had been overcharged, and one of their directors who was well known to the Board [that is Mr. Blake] they understood, was dealing with the matter and that instructions had been given to such director to settle the matter with the Board."

"I also find in a file a letter, also of 15th June, addressed by Blake to Mr. Boyd, the Secretary, upon the subject, and enclosing a cheque for £600, and, in fact, on 8th July, 1920, I issued a writ against the company for the balance, and the matter was eventually settled. No proceedings were ever, in fact, commenced against Blake. There was, however, considerable correspondence with regard to the various details of his account, and matters were eventually settled by, I believe, certain items being taken back, as I have already stated in evidence, and as is also referred to in para. 92 of the 1920 report."

Mr. Fisher further stated that later on the Navy, Army and Air Force Institute refused to have any further dealings with Blake.

It would therefore appear that the Navy and Army Canteen Board allowed these delivery orders to remain in Mr. Blake's possession, notwithstanding the fact that they had found difficulty in obtaining payment from Mr. Blake for transactions completed. Your Committee feel that the Board of Management failed to exercise proper care and supervision in this matter.

Your Committee regret to state that they do not think any reliance can be placed upon the evidence of Major Van den Bergh, Major Boyd, or Mr. Blake. They are of opinion that Major Boyd and Major Van den Bergh failed to exercise ordinary care in disposing of the property of the Board, and it is a remarkable circumstance that most of the goods sold at low prices were sold to ex-officials of the Board, who were friends of these two persons.

Note. The marginal notes are references to the Minutes of Evidence and Appendices which will be issued together with the above report as soon as possible.

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Sir FREDERICK BANBURY was elected chairman, and in his unavoidable absence Colonel CAMPION was called to the Chair.

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Resolved, that the meetings of the Committee be held in public.

Resolved, that all witnesses be examined on oath.

[Adjourned till Tuesday next at 11 o'clock.

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Viscount WOLMER, a Member of the House, sworn and examined.

[Adjourned till Tuesday next at 11 o'clock.

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Mr. W. J. McGURK, sworn and examined.

Mr. A. WALLER, sworn and examined.
Mr. W. A. ROBERTS, sworn and examined.

Mr. J. G. GRAHAM, Sworn and examined.

[Adjourned till Tuesday, 5th June, at 11 o'clock.

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Mr. J. W. VINCENT, of Messrs. Sissons, Bersey, Gain, Vincent & Co., Chartered Accountants, sworn and examined.

Mr. J. W. DAVIES, sworn and examined.

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Sir WILLIAM PLENDER, G.B.E., of Messrs. Deloitte, Plender, Griffiths and Co., Chartered Accountants, sworn and examined.

Mr. C. STANLEY FISHER, of Messrs. T. F. Peacock, Fisher, Chavasse and O'Meara, late Solicitor to the Navy and Army Canteen Board, sworn and examined.

Mr. A. RAE SMITH, of Messrs. Deloitte, Plender, Griffiths and Co., sworn and examined.

[Adjourned till Tuesday next at 11 o'clock.

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Mr. C. STANLEY FISHER and Mr. A. RAE SMITH, further examined.

[Adjourned till Thursday next at 11 o'clock.

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Colonel W. GRANT-MORDEN, a Member of this House, and Chairman of Odhams Press, etc., examined.

Mr. A. RAE SMITH, further examined.

Sir GEORGE MAY, K.B.E., late Deputy Quartermaster General (Canteens) War Office, sworn and examined.

Sir ALEXANDER PRINCE, K.B.E., late Controller, Expeditionary Force Canteens, sworn and examined.

Colonel F. BENSON, C.B.E., late Deputy Controller, Expeditionary Force Canteens, sworn and examined.

[Adjourned till Tuesday next at 11 o'clock.

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Mr. P. B. DURNFORD, late Staff Manager, Navy and Army Canteen Board, sworn and examined.

Major H. E. VAN DEN BERGH, late Officer i/c Supplies, Navy and Army Canteen Board, sworn and examined.

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Major H. E. VAN DEN BERGH, further examined.

Sir FRANCIS TOWLE, C.B.E., late Controller Navy and Army Canteen Board, sworn and examined.

[Adjourned till Tuesday next at 11 o'clock.

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Major-General S. S. LONG, C.B., late Director of Supplies, War Office, sworn and examined.

Major ARTHUR BOYD, late General Secretary Navy and Army Canteen Board, sworn and examined.

[Adjourned till Thursday next at 11 o'clock.

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