"The manner and circumstances of his dismissal were such as to give the impression that he must have been guilty of serious misconduct, and, accordingly, there has been much local rumour and comment.
For the benefit of those who do not know my brother, I should say that he is a well-known man—perhaps one of the best-known men—in County Monaghan. He has an excellent record in both Irish wars; is an office-holder in the principal Fianna Fáil organisations in Monaghan, being vice-president of the North Monaghan Comhairle Ceanntair and joint treasurer of the Comhairle Dáil Ceanntair; has acted as Fianna Fáil election agent at all elections in Monaghan since 1932, including the Presidential Election of 1945.
So as to discover, without prejudice, all the facts, I have submitted to Mr. Darach Connolly, solicitor, the company's accounts, balance sheets, much correspondence, and memoranda, etc., for report and legal opinion. I attach herewith a copy of his report, and the astonishing disclosures therein require no comment, though I would like to draw the attention of the Minister for Agriculture and the Minister for Finance to paragraphs 4, 5, and 6 of the report.
It is reasonable for anyone to ask why my brother was dismissed, if it is true that he managed the company well. I have gone very closely into the question myself, and the reason appears to be as follows:—
Last January, when Dr. Ward took the first steps in this unwarrantable action, he was hoping in a very short time to be promoted to a Ministry in which case, I understand, he would have been compelled to resign his managing-directorship of the company. From Mr. Connolly's report it is obvious that Dr. Ward would thus have been at a serious financial loss, so he had to find some means of recouping himself. His son, an undergraduate in the commerce faculty in University College, Dublin, has already some experience of the business, acquired during the holiday periods at Clover Meats, Limited, Bacon Curers, Waterford. This young man, before there was any question of dismissal, stated to a reliable witness that he would be going to Monaghan to take my brother's position, and this was later confirmed by Mr. Corr, deputy managing director of the company. The managing directorship and the managership would have been merged, and a new plan adopted for profit-sharing, as the old one would no longer suit. My brother was an obstacle, so he must go, the only reason given being that it was ‘in the best interests of the shareholders'—a genuine enough reason when one remembers that 5/8 of the shares are held by Dr. Ward, and how better could the ‘interests' of at least the majority of ‘the shareholders' be served than by installing one of his own family.
This explanation seems more than reasonable, for it corresponds very closely with Dr. Ward's action some three or four years ago in ordering the dismissal of Mr. Matt Fitzsimons, an excellent agent of the company. The only reason in that case was to make room for Mrs. K. Ward, the lady mentioned in Mr. Connolly's report, as chief agent in the carrying out of undisclosed cash sales.
On a parallel with the system of conducting undisclosed cash sales in the curing company, is the method adopted by Dr. Ward for drawing by another hidden system, some 50 per cent. of the salary and emoluments attaching to the position of medical officer of the Monaghan Dispensary District. The system is as follows:—
A temporary medical officer is appointed by the Monaghan Board of Health to discharge Dr. Ward's duties, at the same salary to which Dr. Ward would be entitled if he were still dispensary officer there. (This rate is important from Dr. Ward's point of view, not only because of what he draws yearly from it, as shown hereafter, but also, by keeping up over the past 14 years, the higher rate of salary with the periodic increments, he has now reached his maximum salary, and therefore, as the pensionable officer, gets the benefit of it). The temporary medical officer appointed by the board of health is recommended for the appointment by Dr. Ward, who then lays down his conditions, namely; that all cheques for salary and emoluments paid to the temporary, medical officer must be endorsed by the medical officer and delivered uncashed to Dr. Ward, who then pays the temporary medical officer at a rate which has varied thus:—
1st temporary medical officer who acted from March 1932, to September 1935, at £4 4s per week.
2nd temporary medical officer who has acted from 1935 to the present date, at £5 5s per week from 1935 to 1943, but increasing since 1943 to the present figure of £29 per month.
As the salaries and emoluments have varied from, roughly, £450 per annum to £575 per annum, it means that Dr. Ward has drawn and continues to draw an annual sum of not less than £200-£250, while to all appearances the temporary medical officer is getting the entire amount. He is not ungenerous, however, for in return for the payment of this enforced tribute, he allows the temporary medical officer, after the first year, to keep the private fees earned in the district—where Dr. Ward himself has not practised for 15 years. During the first year he exacted half the private fees as well.
Dr. J.F. McGeough, Monaghan Street, Newry, filled the position for the first three and a half years. He was dispossessed in September, 1935, for lodging, in June of that year, the cheques for the April-June quarter to his own account, and informing Dr. Ward that he expected the terms of his appointment as temporary medical officer by the board of health to be fulfilled. Dr. Ward dispossessed him by the simple expedient of himself asking permission from the board of health to take up duty again. The permission was granted, and he did, nominally, take up duty (although he was then whole-time Parliamentary Secretary), until he found another doctor to consent to his conditions.
At least one doctor, named Murray, at the time refused the conditions, and this man I am trying to trace so that he may testify to the conditions submitted to him.
Dr. McGeough, who is now beyond Dr. Ward's ex-officio reprisals, is quite willing to prove, on oath if necessary, the facts governing the period 1932 to 1935. I could invite Dr. M.P. O'Gorman, the occupant of the position since 1935, to submit confirmatory evidence only if the Minister for Local Government and Public Health will guarantee him immunity against Dr. Ward's vengeance, for, in addition to acting as Dr. Ward's deputy, he has recently been appointed to a neighbouring rural dispensary district, and feels that if Dr. Ward had still official power over him, it would not be safe to disclose the position.
I hope that some means will be devised to ensure that restitution will be made to these two doctors. Until my brother sought my advice regarding his summary dismissal, I was unaware that the Monaghan Curing Company had been conducted in the manner disclosed.
Since 1932 there had been persistent rumours, widespread among the medical profession, that Dr. Ward was continuing to draw part of the salary of the Monaghan Dispensary District. I was aware that Deputies Dillon and O'Higgins had tried to get evidence of this, but it is only now that I fully understand why they did not succeed.
When the curing company affair came to my notice I decided to make a thorough and impartial investigation, for the reason that I felt that I was in a particularly favourable position to get reliable information. Having got it, supported by documentary and personal evidence, I now feel that it is my duty, before advising or taking any other steps, to submit it to the Government in the interests of the Government itself, and the country generally, especially my native county.
Amongst other matters which might profitably form the subject of inquiry, but about which I would find it difficult to get conclusive evidence, is the taking of funds—it is said some hundreds of pounds — from the Monaghan Public Utility Building Society to erect a Fianna Fáil Hall at Carrickroe, on land rented by Dr. Ward himself. I am told that it is known locally as the Ward Hall, and that he exercises the authority of a landlord over it. The funds were not returned to the society, nor any offer made to do so. This is my unconfirmed information.
I have dissuaded my brother from taking any action until the matters disclosed herein have been considered by the Government. Mr. Darach Connolly, solicitor, has custody of all the available documents concerning the curing company, and is authorised to submit them for inspection, if required. Dr. McGeough is prepared to submit evidence by way of affidavit or in person, if deemed necessary, and Dr. O'Gorman's supporting proof will be forthcoming, immediately he is assured of protection.
Mise,
le meas,
P. MacCarvill."
The other letter is as follows:—
"Darach Connolly,
Solicitor. 21 Parliament Street,
Dublin.
17th May, 1946.
Dr. Patrick MacCarvill,
8 Fitzwilliam Square,
Dublin.
Dear Dr. MacCarvill,
In accordance with your instructions, I have carefully examined the audited accounts and balance sheets, correspondence and memoranda relating to the Monaghan Curing Company Limited, placed at my disposal.
Since 1938, the company has had a share capital of £8,000, divided between the three directors, who are also officials of the company, as follows:—
Managing director, Dr. F. C. Ward, £5,000; deputy managing director, Mr. Joseph Corr, £2,250; manager and secretary, Mr. J. MacCarvill, £750—£8,000.
The audited accounts for the years 1938 to 1944 show that the company, on the average, has made extremely good profits, especially when considered in relation to the amount of the capital invested. I should perhaps, point out that the company has never paid any dividends as such, but the directors drew from the company, by way of salary and otherwise, in exact ratio to the amount of capital held by each. Since you expressly ask for a statement of the amounts drawn by Dr. Ward, the following is a summary of the amounts drawn by him in salaries during the periods stated:—
During ten months of 1938, £916 13s. 4d.; during the year 1939, £1,000; during the year 1940, £1,750; during the year 1941, £2,000; during the year 1942, £2,000; during the year 1943, £1,000; during three months of 1944, £250; total salaries during six years and one month, £8,916 13s. 4d.
In addition to the profits shown by the properly audited accounts, it is quite clear from the documents furnished, that a well organised system of undisclosed cash sales was in operation during most of the period under review. It does not appear how the bacon was made available for these ‘unofficial' sales, while the company was working on a quota basis, but it is obvious that some method must have been adopted whereby the extraction of bacon, and offal, from the pigs killed was not disclosed in full to the Pigs and Bacon Commission. If you should require specific details in respect of this practice, I could furnish dates and names of consignees in respect of some of these undisclosed cash sales, from the records to hand.
It is quite obvious that the proceeds of these sales were not passed through the accounts of the company, nor included in the audited accounts. From this you will understand that moneys derived from this source were not returned for taxation purposes by the company to the Revenue Commissioners.
It must be assumed from this, that the directors profiting by these undisclosed cash sales have not included them in their personal income-tax returns, since by doing so they would have to disclose to the Revenue Commissioners the source of this income, thereby involving the company of which they were the directors and officials. As requested, I have summarised—I think accurately—the total amounts drawn by Dr. Ward out of these undisclosed cash sales during the period under review, as follows:—
During the year 1939, £106 14s. 4d.; 1940, £12 19s. 5d.; 1941, £173 0s. 1d.; 1942, £368 10s. 9d.; 1943, £522 19s. 0d.; 1944, £1,027 9s. 9d.; 1945, £753 3s. 5d. Total during the seven years, £2,964 16s. 9d.
During the period 1938 to 1945, inclusive, therefore, Dr. Ward appears to have drawn from the company almost £12,000 exclusive of any salary which he may have drawn for the year 1945 and the nine months of the year 1944.
It is abundantly clear from the records to hand that Dr. Ward directed and ordered the carrying out of these cash sales. One of the letters sent by him to the deputy managing director, and apparently handed over to the manager and secretary for attention, reads as follows:—
‘Morven',
Nashville Park,
Howth,
13th December, 1943.
Dear Joe,
You might have two tons of Wiltshire sides dispatched to Mrs. K. Ward at Amiens Street. The consignment need not be entered up, but send her a note that you are sending her a certain quantity on a certain day. If you have more on hands than can conveniently be disposed of, you could send three tons. In calculating the quantity available you may assume that Pidgeon will not require any from us this month. I shall explain in detail when I go down. Please have these matters dealt with without delay.
I hope the stocktaking as on the 11th instant has been carried out.
Sincerely yours,
Conn Ward.
Mr. Joe Corr,
Church Square,
Monaghan.
P.S. The commission on this transaction can be paid in cash.
C.W.
(The underlining is not mine, but is in the letter, and the P.S. is written, not typed).
It would appear that the Mrs. K. Ward (Dr. Ward's sister-in-law) mentioned in this letter was one of the principal, if not the principal agent here, outside the local area, for carrying out these undisclosed cash sales.
An original memorandum, written by your brother as manager and secretary and dated the 7th September, 1942, shows that he raised objections to this practice of undisclosed cash sales. In spite of the views expressed by him, however, he was at fault in allowing himself to be overruled, and in carrying out the policy adopted, in this matter. I have discussed with your brother this matter, and its significance from his point of view, and he has intimated to me his intention of paying to the Revenue Commissioners such amount as may be due to them by him in respect of moneys thus received (which amount cannot be too great in view of his small share therein).
In this connection I would draw your attention to the fact that, in spite of the very large profits which the company paid, relative to the amount of capital therein, your brother received, as manager and secretary, a wage of £5 per week, reduced to £4 per week in October, 1945. The nature and extent of his work, and the moneys involved therein make this figure appear unusually low, though his co-directors may have considered it adequate when his small proportionate share in the profit-salaries and out of the undisclosed cash sales was added thereto. Although I am not perhaps the best judge thereof, his management of the affairs of the company seems to have been efficient and successful, if the returns obtained by the directors and the completeness of the complicated records kept by him are any indication. With reference to one of your queries, there is, in fact, no suggestion in any of these records, even in the somewhat offensive letters written to him by Dr. Ward subsequent to his purported dismissal, that he misapplied or misappropriated any moneys whatsoever belonging to the company.
With regard to his purported dismissal, the circumstances seem to be as follows:—On January 12th last, Dr. Ward telegraphed to Mr. Corr instructing him to give the manager four weeks' leave of absence with pay (your brother was then in hospital).
