#defalcations

[if-you-fan-a-fire]

“'U' FUND PROBE TO BE REOPENED HERE MONDAY,” Winnipeg Tribune. November 18, 1932. Page 1. --- Hon. Mr. Justice Turgeon To Return From West First of Week --- The sessions of the university investigating commission, interrupted for two weeks by a sitting of the Saskatchewan Court of Appeal, which required attendance of Hon. Mr. Justice W. F. A Turgeon, are to be resumed Monday at 10.30 a.m. 

Counsel for the commission, R. F McWilliams, K.C., and J. T. Thor non, K.C., announced today that Isaac Pitblado, K.C., chairman of the university board of governor from 1917 to the time he resigned in 1924, will be the first witness. Mr. Pitblado, In a previous two-day examination, told of the administration of the university trusts during his seven years in office and until he was succeeded by J. A. Machray.

More WitnessesOther members or former members of the board of governors, who have not given evidence, will follow Mr. Pitblado. These include R. R Riley, F. W. Ransom, T. J. Murray K.C., and Norman Lambert. Mr. Lambert is in Ottawa during the special session of parliament and if he has not returned by the time Mr. Murray's examination is completed, he will be called later.

This list of witnesses will be followed by members of the land board, who have not already been in the box. These include His Grace Archbishop Matheson, Edwin Loftus, K.C., Rev. Dr. A. B. Baird and Dr. W. A. McIntyre, principal of the Winnipeg Normal school.

Auditors To Be Called The order of examination subsequent to this will be J. R. Major, auditing accountant of the comptroller-general's department, who was in charge of the checking of the university trust account books; R. G. Murray, auditor of revenue; Dr. J. A. MacLean, president of the university, and Hon. R. A. Hoey, minister of education. 

Counsel expect all evidence to be placed before the commission by the adjournment for the Christmas holiday. About half of it is already on the record.

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“PROBE NEARS END,” Montreal Gazette. January 7, 1933. Page 3. ---- University of Manitoba Hearings Adjourned ---- Winnipeg, January 6. Nearing the end of its quest, a board of enquiry today adjourned after a brief resumption of its investigation into the loss of $1,000,000 in University of Manitoba trusts. 

The commission in a short session today heard F. J. Sharpe, partner in the investment firm which acted as agents of the college monies, disclaim any responsibility for the shortages. He never at any time knew his firm was using, trust funds for its own purpose, he said, and only learned of the deficit, when his partner, John A. Machray.'was arrested for theft. 

Comparison of methods, employed by the various universities of Canada to safeguard their trust funds was made on a statement presented by Alfred Rosevear, secretary of the commission. The statement showed presidents of these institutions also are members of the board of governors. unlike the president of the University of Manitoba. 

The board will resume its hearing Monday to listen to the summing up of evidence by commission counsel, R. F. McWilliams and J. T. Thorson.

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“Mystery Will Not Be Solved,” Kingston Whig-Standard. November 21, 1932. Page 1. ---- Machray Can Supply Little Information About His Financial Collapse ---- WINNIPEG, Nov. 21 — Mystery veiling the disappearance of $1,100,000 from the accounts of Machray and Sharpe, which left the University of Manitoba endowments short $1,000,000, will never be penetrated. Information which John A. Machray told a board of enquiry he would provide them will never materialise and the only clue left for Investigators to follow is a set of incomplete and un-audited books. 

According to reports to be submitted to the Board, which today resumed its investigation into the college losses, Machray can supply little information regarding the collapse of his financial business. He assured the Board, when interviewed at Stony Mountain Penitentiary, that he would be able to provide all required details when certain Information was procured from his old office records. But counsel and auditors say search for any such information would be futile.

Thus the Board will have to seek from witnesses any details of the defalcations which sent the 67-year-old lawyer and financier to prison for seven years. 

More than a score of witnesses will be heard before the Board adjourns to make its findings. It already has heard that many and some of them will re-appear with further evidence. Some of these are Isaac Pitblado, K. C., former chairman of the Board; Governors J. T. Sharpe, Hon. R.A. Hoey, Minister of Education, auditors, accountants, and brokers, all whom were associated in some way with Machray or the university.