Among those from whom your Committee have heard evidence are: Officers charged with the control and administration of the Sir William Plender, G.B.E. The Members of the 1920 Committee of Enquiry. Viscount Wolmer, M.P., and witnesses suggested by him. The Order of Reference falls naturally into two parts:- This part of the Enquiry has been dealt with in Sections II to (b) The conduct, administration, trading accounts and See 18. Your Committee found that the Order of Reference did not embrace the question of the propriety or otherwise of State Appendix trading, and consequently they have not considered evidence dealing with this subject. Your Committee resolved to conduct their enquiry in public and to examine all witnesses on oath. HISTORY AND FINANCE. II. THE HISTORY OF EXPEDITIONARY FORCE CANTEENS AND In January, 1915, an organisation called the Expeditionary Force Canteens was formed by the co-operation of the two largest canteen contractors to conduct canteens in temporary war areas overseas. It was ultimately agreed that after the payment of all necessary working expenses and the repayment of loans, any profits earned were to be devoted to the general welfare of the soldier, under the Orders of the Army Council, and in such manner as they in their absolute discretion should think fit. This agreement applied to both interim profits and final profits on the cessation of the business. 42161 a 3 Appendix 1 Appendix 1 Appendix 1. 114. The actual provisions were as follows:-The War Office letter of the 12th January, 1915, in which the offer made by the Canteen and Mess Co-operative Society, Limited, and Messrs. Dickenson and Co., Limited, to establish a Co-operative Society for the purpose of forming canteens overseas without profit or gain to either of the two firms, contained amongst other things the following provisos :-" After paying all necessary expenses, any profits earned are to be devoted to the general welfare of the soldier, under the Orders of the Army Council, and in such manner as they in their absolute discretion shall think fit. When the organisation shall cease to carry on business it shall account and pay over to the Army Council all surplus assets that may remain after the discharge of all liabilities, such assets to be devoted, as already provided in the case of interim profits, to the general welfare of the soldiers in such manner as the Army Council in their absolute discretion shall determine." On the 8th March, 1915, the Financial Secretary of the War Office made a statement in the House of Commons to the effect that the whole of the profits would be devoted to the good of the soldier and his dependents. Again in the War Office letter of 29th July, 1915, to the Field-Marshal Commanding-in-Chief, British Expeditionary Force, announcing the decision of the Army Council to form a Board of Control, it was stated:-“ That all profits which are made in such canteens shall be available for a fund to be used for the benefit of the soldier after the war or for securing such benefits to the soldier as may appear desirable before the conclusion of hostilities." In April, 1916, the powers and the duties of the Board of Control were transferred to the Army Canteen Committee, which continued for the time being to act as an Advisory Body only, and under Army Council Instruction No. 1388 of 13th July, 1916, after the Army Canteen Committee had taken over the powers and duties of the Board of Control, it was stated that the fund was to be primarily devoted to alleviate the sufferings of disabled ex-soldiers, the allocation of the remainder being notified in Army Orders. In the price lists of the Expeditionary Force Canteens the same statements were made. The actual words were as follows:"The whole of the profits made by the Expeditionary Force Canteens will be passed to the War Office and devoted to the good of the soldier and his dependents under the Orders of the Army Council." It will therefore be seen that the contention of Lord Wolmer, Q.5, 40 and in his evidence before this Committee, that the profits of the Expeditionary Force Canteens were to be handed over in their entirety to the ex-soldier (the ex-soldier meaning the ex-soldier of the late war) is unfounded. The profits were to be handed over to the Army Council to be dealt with primarily to alleviate the sufferings of disabled ex-soldiers, no statement being made limiting the distribution to soldiers disabled in the great war, and the allocation of the remainder was to be applied by the Council in their absolute discretion to the benefit of the soldier and his dependents. Here again this was not confined to the soldier who had served in the great war. 2124. It has been stated in evidence before Your Committee by Q. 2120Sir Alexander Prince that the word "soldier" in this context was understood by him to mean any soldier, whether such soldier had served during or after the great war; and as regards the distribution of profits, he understood the Army Council to be the sole arbiters. III. THE HISTORY OF THE NAVY AND ARMY CANTEEN BOARD The Navy and Army Canteen Board commenced its operations about the 1st January, 1917, under the name of the Army Canteen Committee, and in June, 1917, on taking over the Naval Canteens, the name of the organisation was changed to the Navy and Army Canteen Board. The function of this organisation was the supply of the troops at home and in permanent areas abroad, as opposed to the temporary war areas supplied by the Expeditionary Force Canteens. It was later decided that the buying for the Expeditionary Force Canteens should be transferred to the buying department of the Navy and Army Canteen Board on behalf of the Expeditionary Force Canteens at cost, plus a payment which was to be made each six months. The profits made by the Navy and Army Canteen Board were to be dealt with as follows: 1. "After payment of administrative expenses and monthly Appendix IV. TERMINATION OF EXPEDITIONARY FORCE CANTEENS AND In April, 1919, it was decided that the Expeditionary Force Canteens, as being a war time organisation only, should go into liquidation and hand over the remainder of its business to the Navy and Army Canteen Board, which was at that time intended to become the permanent body for the supply of the troops after the war. At that time the business of the Navy and Army Canteen Board was vested in a Board of Management which consisted of the following: Sir George May, K.B.E., D.Q.M.G., representing the War Appendix 11 (para. 10.) 42161 a 4 Appendix 2 (a). Appendix 2 (b). Sir Francis Towle, C.B.E., Chairman and Controller; Paymaster Captain Hargreaves, R.N., representing the Admiralty, in charge of the Naval Department of the Board; Brigadier-General Cockburn, and Brigadier-General Moore, from July, 1919, to July, 1920, representing the Air Council. A Conference was held on the 6th April, 1919, at 8, Eaton Sir George May, K.B.E. (D.Q.M.G. (Canteens) War Office); Lieut.-Colonel Maxwell Hicks, C.B.E. Lieut.-Colonel Morten, O.B.E. Captain Wise, and Mr. Williamson for E.F.C. }for for N.A.C.B. for N.A The object of the Conference was to discuss and agree as far as possible the general lines of the proposed transfer of the Expeditionary Force Canteens undertakings to the Navy and Army Canteen Board. It was agreed that the Expeditionary Force Canteens would make up their balance sheet to 30th April, 1919, and that they would carry on the business for May and June, 1919, ultimately handing over to the Navy and Army Canteen Board on the 30th June, 1919. The desire of the meeting was to settle as far as possible the basis on which the Expeditionary Force Canteens' assets should be brought into the new books as at the 1st May, 1919, and to settle the basis of transfer. Sir George May pointed out that as the Navy and Army Canteen Board would be taking over the final winding up on the Continent, some share of the reserves made by the Expeditionary Force Canteens for loss on liquidation should be allocated in the Expeditionary Force Canteens balance sheet for the relief of the Navy and Army Canteen Board should they make a loss when it came to their turn to wind up. The remainder of the Minute relating to this meeting will be found in the Appendix. A Conference was held on the 23rd July, 1919, to decide generally as to the disposal of the surplus stocks of the Expeditionary Force Canteens in France and elsewhere and the basis on which a fair working stock should be taken over by the Navy and Army Canteen Board from the Expeditionary Force Canteens. There were present: Sir George May, K.B.E., D.Q.M.G. (Canteens) War Office, Sir Alexander Prince, K.B.E. (Controller War Office), E.F.C., Lieut.-Colonel Sir Francis Towle, C.B.E., Controller (War Colonel P. R. Nelson, C.B.E. (Chairman E.F.C. Disposals and Lieut.-Colonel Maxwell Hicks, C.B.E., Officer in Command Lieut.-Colonel Morten, O.B.E., Officer in Command Admini- Major E. E. White, O.B.E., Secretary E.F.C. Colonel Benson stated that the original intention was that all surplus Expeditionary Force Canteen stocks should be got rid of during the months of May and June. Owing to various circumstances and the conditions prevailing this had not been possible, and the present position, in pursuance of previous decisions, was that the Navy and Army Canteen Board should take over the equivalent of 16 weeks' stock, the balance to be treated as surplus and disposed of by the Expeditionary Force Canteens Disposals Board. For this purpose it was necessary that a date should be fixed by which the Expeditionary Force Canteens should know its liabilities and obligations in this connection. It was generally agreed that in deciding what goods should be taken over by the Navy and Army Canteen Board a fair working stock should be taken, that is a suitable stock in quantity and quality to provide adequate stock-in-trade for the proper carrying on of all existing canteens and installations, and that this should be the basis of the decision in deciding what stocks should be taken over by the Navy and Army Canteen Board. Sir George May proposed that it would be better to agree a figure representing the value of the stock to be taken over by the Navy and Army Canteen Board, and suggested that stock equivalent to £2,000,000 sterling would be a suitable basis. This was agreed. It was further agreed that the Navy and Army Canteen Board should render to the Expeditionary Force Canteens Disposal Board full and complete lists of all surplus stocks, after allowing for the above stock to the value of £2,000,000 sterling-equipment, machinery, motor vehicles, etc. The Expeditionary Force Canteens' assets under the above headings came under discussion, and the previously agreed basis of absorption by the Navy and Army Canteen Board was confirmed, that is to say, that all transport in commission and on the road for the Expeditionary Force Canteens' services as at 30th April, 1919, would be considered necessary for the Navy and Army Canteen Board services, and would accordingly be taken over by the Navy and Army Canteen Board with all spare parts and accessories. A further meeting was held on the 21st July, 1920, at 8, Eaton Square, when Sir Alexander Prince and Colonel F. Benson, for the Expeditionary Force Canteens, and Major Boyd, for the Navy and Army Canteen Board, were present. Sir George May and Sir Maxwell Hicks were also present, when the question of the price at which the goods were to be taken over was discussed and an agreement arrived at. Appendix 2 (c). |