Charles E W Bean, Diaries, AWM38 3DRL 606/255/1 - 1916 - 1937 - Part 10

(COPY)
Headquarters
2nd A. & N.Z. Army Corps
1st June, 1916.

Major-General H.G. Chauvel, CB., CMG.

On my departure from Egypt I leave to you the
administration of the A.I.F. in Egypt. Colonel Tunbridge,
as you know, commands the Branch office of the A.I.F. in
Cairo, and you will, therefore, carry out the functions
hitherto performed by me, and he those hitherto performed by
Brig-General Sellheim. You have already powers of promotion
&c. for the A.I.F. of your Division.

The Govt. of Aust, does not desire that in
future any disciplinary cases should be returned to Aust.
except those under sentence of Court Martial. In any case
which may arise, when in your opinion it may be necessary to
modify this decision, please send a full explanation to the
Defence Minister.

The reinforcements arriving in Egypt en route
for France from Australia and any in the Training Units &c.
that remain at Tel-el-Kebir, will be under the control of the
Commandant of the Branch Administrative Office, subject to your
general superintendende.

(Sgd) Alex Godley, Lt-General.
Commanding 2md Australian & New Zealand Army Corps

Defence AIF. 272/1/1891

10.8.15 - Defence to A.I.B.D., Cairo

Col. J.B. Laing, Chief Accountant and Finance Member will leave
Melbourne on 24.8.15 on visit of inspection. Has been directed by
the Minister to look into and report upon financial matters connected
with AIF. in Egypt and also to take steps to clear up and adjust
outstanding questions of a financial nature between Cent.Admin. &
Army Pay Corps.

Similar memo was also sent to Col. J.G.Legge, CMG.

Col. Laing's appointment was for 3 mos only but it was
extended for a month on account of cable from "Stralis" - "Laing's
work greater magnitureand progress materially slower than anticipated"

Defence AIF. 170/2/276

Col. Laing submitted a report dated Cairo 2.12.15 consisting of
81 pages typewritten matter -
Part 1 of Report deals with "Cash Services" for which Staff Paymaster
(Major Farr) was wholly responsible - i.e. method of keeping books,
state of accounts &c.
Part 11 deals with Financial questions generally.

Much of report especially Part I is technical but the following
extracts are of general interest and give idea of how pay matters
stood at that time -

Page 8 - para 27 "In order to obtain funds for use in his General
Advances Account the process employed by the Staff Paymaster is
to requisition on the Imp.Command Paymaster MEF Alex. for the
amt. required during the succeeding month, and the Imp.Com.P.M.
upon receipt of such, returns a cheque to the S.P.M. on the date
required, for the amt. involved. On its receipt it is lodged to
the credit of the Gen.Advances Ac. in the Anglo-Egyptian Bank Ltd.

Page 14 -para.47 - "Before closing part 1 of this my report it is
necessary to report that the S.P.M. was called upon to make pay-

ments and advances, particularly with regard to wounded soldiers
in hospitals, convalescents &c. as well as supplies & rations
at the front, on account of Canadian, Indian, N.Z. & Imperial
troops. It can readily be understood that, under the conditions
obtaining in Egypt at present, where all of the Forces are under
control of the Imp.authorities, circumstances have arisen where
troops have been separated from their regular command, that such
payments are compulsory.

Page 23 para 33 - deals with difficulty of adjusting accounts of
men returned to Egypt after absence therefrom.

Page 26 para.4 - "Early in my examination it was quite apparent that
the system of accountancy in relation to cash service in the
S.P.M's office was weak & inadequate" Recommends re-organization
Accountancy Secn. to be formed under qualified accountant.

Page 30 para.16 -"In consequence of the difficulties met with in con-

ducting the audit and exam. of the S.P.M's accounts, together with
the coming to hand of evidence of the absence of audit of receipts
& issue of valuable stores, supplies equipment &c. I saw that it
was essential, if the best regsults were to be obtained from my
visit to Egypt, that the work initiated by me should be continued
and extended, hence that part of my cable of 20.10.15 as under - 
"Considered most essential that audit work initiated by Laing
who strongly concurs in this recommendation should continue, and
to include stores equip. & Hosp. stores x  x   x"
Defence Cabled 23.11.15 "Jolliffe has been appointed
charge audit sub-secn. leaving Melbourne 30th Nov." 

Page 31 para 18
The Pay Ledger system of keeping accounts of members of the
AlF is in a transitory stage i.e. from records in bound books to the
initiation of the new card system which should when all entries in
the Pay ledger accounts and the debit & credit balances are duly
arrived at and checked, prove to be an excellent means of economising
in time and expense.

Recommends Lt.H.S.Evans be promoted Capt. & appt. Accountant
also other changes in Pay Staff

Page 43 - Hours and quartering &c. of staff - Given allnce of 5/=-
per day for off. 4/6 for W.Os. 4/ for N.C.Os. and 3/6 others -
arranged for their own messing & quarters - stated to be very
satisfactory

Page 46 para.2 "The general method of obtaining supplies is through
contracts let by the Imp.auth.in Egypt, the Aust. Forces making use
of such contracts where practicable” - Contractors & supplie^rs
are local residents of different nationalities with a general reputa

tion of a regard for honest and straight commercial dealings the
reverse to that which obtains among Australians.

"I made a special visit to the Maadi camp where there are
to date nearly 6000 horses and over 3000 men. Out of 108 tons (about)
of barley obtained from the contractor 33 bags with an average of
2 cwt or over per bag of stones, dirt &c. were screened from the
quantity of barkley delivered. Then followas other instances of
fraud and alderation. adulteration.

Recommends scheme as used in Aust, to completely check
receipt, issues and expenditure for forage.

Page 49 para 19 "Six of the Conv. Hosp. are being catered for by
contract at the rate of 2/6 or 3/- per diem per head. Two Gen.Hosp.
are rationed with supplies purchased locally and not under contract"
Recommends appointment of. Inspectors to visit camps &c.
inspect rations &c. and also compiling of black list of contractors.

Page - 52 - Instances given of mistakes in Nominal rolls received
from Australia and also of difficulties with regard to allotments.

Page 55 - Errors in paybooks - duplication of paybooks.

Page 59 - "The duties of the Field Cashiers are to provide units at
the front with such funds as may be required. The practice has been
for Divnl.or Brigade unit to cable to the Field Cashier that a
specified sum will be required on a given date. The Fld.Cashiers
whose H.Q. are at Alex. make payment at the front or at rest camps at
Mudros &c. bey means of Treasury notes overprinted with Turkish
characters denoting the equiv.value in Turkish piastres, and by
English & Asuust, silver. Treasury notes are obtained on requisition
from the Command paymaster MEF and are for circulation only at
Gallipoli, Mudros, Imbros & places adjacent thereto.

Procedure re obtaining receipts, acquittance rolls &c.

Page 68 - Cancellation of Aust, notes to save insurance.

Page 68 - Canteen for Lemnos - agreement for

Page 69 Motor cars & ambulances - "On bringing the matter of motor
cars under the notice of the Commandant, AIB, he stated that about
90% of the cars were at Alex. (in charge of Major Lynch) and about
10% only were in use in Cairo. x x Of the cars originally
brought over a number were presentation cars to different C.Os &
on proceeding to the front, these officers made their own arrangements
as to custody and care of the cars. x x No undue use being made
of departmental cars at Govt. expense for purposes other than those
which might fairly be termed "duty".

"Note - The Imperial & N.Z.auth, have the use of our ambulances,
but there is no quid pro quo to us in consequence")
App. 24 shows motor cars & amblnces in use or on charge to
AIF in Egypt.

Page 71 - Payment of troops in hospital

Page 79 - Conclusion -

"In concluding this report, I regret to have to express
my disappointment at the condition of the Cash and Accounts of the
S.P.M. as at the 30.9.15 after 5 weeks notice of my visit to Egyt
and which are, even at this late date of nearly 11 weeks after my
arrival at Cairo still in a tentative state of proved balancing and
adjustment, indeed I am afraid that several months at least must
elapse before exact positions can be actually determined, I therefore
have no other course but to leave the finalising of those
accounts to Major Jolliffe and his staff. It is regretted that the
essentials which at all times relate toCash Services were not more
fully realised and given effect to.

There was nothing upon which I was able to reach finality
so as to be placed in the position to make the statement that it
is correct and proved to my satisfaction.

The state of the cash intermixed as it is and unbalanced
with books produced showed "prima facie" that no other balance
appears to have been attempted and that such books, proved subse

quently to be incorrect, contained items of disembursements which
are not supported by vouchers, are some of the unsatisfactory facts
disclosed earlier in this report.

The overdrawal of the Bank Account and the using of
Trust Fund for General Expenditure show negligence.

In addition, the crude system of the registration of ac

counts, the lack of a proper check upon the passing and payment of
them, resulting in many overdraft overpayments, also disclosed a
most unsatisfactory state of affairs.

Further the non-balancing of the Imprest Accounts causes
delay in the adjustment of the various Imprest Holders' Accounts
and may eventually cause serious losses to the C'wealth.

In time of war, and more especially in one of the magni-tude of that which is affecting the whole world at present, the main
objective to be kept in view is to provide the greatest facilities
for creating the highest standard of efficiency for the fighting
forces in all branches relating thereto. In consequence, it is
realised that many provisions which are of great value in times of
peace must be sacrificed in times of war, and in reviewing the work
of the Pay Corps during the past 12 months due allowance is given to
the difficulties under which the Pay Corps worked, but the time has
arrived, in my opinion, when, as is done by the fighting forces
after taking a position, consolidation of means and measures should
be instituted with the least possible delay.

With that only purpose in mind all suggestions whichare
made in this report are so made after very careful consideration
and are the essense only of that which is required to provide the
standard of efficiency in finance and pay matters desired by the
Commonwealth, and if my recommendations are given effect to in their
entirety, without delay, with due regard to accuracy, I feel per-

fectly confident that the result will prove satisfactory to all con-

cerned.

Copy of Sec."B" Part II of this report has been handed to the
Comdt.AIB, for his infn. so that he may be fully siezed with my views
on matters relating to the estab, and personnel of the A.A.P.C.

Copy of report & notes, as directed by Defence Cable No.
W.31150 received this day has been left in the hands of Col.Sellheim.

AIF. 323/4/1a.
AIF. H.Q., 1st March, 1915. 6?

Q.M.G., Melbourne
(Through Commandant)

"New system of accounts - There is so much to do here that we almost
invariably work on Sundays, and it so happened that your cablegram
ordering the institution of a new system of accounts reached me on
that day and emphasised the chastening influence of the Sabbath.

To refresh your memory, I quote this message in full -
"W. 3341 reference Laings report staff payoffice. Instruct
Jolliffe take immediate steps verify allbalances not adjusted
by Laing particularly Imprest accounts. Inform Farr system
of accountancy recommended by Laing to be adopted forthwith.
Jolliffe holds copy of report. Question of Appt. of Accountant
not decided yet".

I feel that the sender of this cable did not realise the
seriousness of its import. To direct any system 8000 miles away by
cable indicates a finer courage than judgment.

1. Major Jolliffe has been hard at work verifying balances and
Imprest accounts ever since his arrival, and as that is the principal
work he was sent to do, the cable infers that he has been standing
idly bay waiting for permission or instruction to start.
2. Lt-Col. Farr had not been favoured with the slightest information
as to what Col. Laing had decided to recommended nor had he been
extended the courtesy, usual in such cases, of a copy of this report
for his opinion or his remarks.
3. The inference is that you will assume the responsibility of
appointing our accountant rather than leave it to the people here
charged with the proper conduct of the work, and, therefore, far
better qualified to judge of the abilities and merits of the staff
available. For you to decide details of this nature is to assume a
grave responsibility, carrying as it would in large measure the
efficiency of the future working of this important branch. Either
we here are responsible for efficiency or central office is. Which
is it to be? So long as we are clearly invested with the conduct of
it we are responsible, and the day you take the conduct out of our
hands by telling us what system we are to employ, and who are to
carry it out, the responsibility is on you. A glance at the figures
enclosed for last months and previous transactions will show you
what that responsibility means, and I admit that I approach it with
the fullest sense of its gravity.

Since receipt of your cablegram Lt-Col. Farr and Major Jolliffe
have been busy reading and digesting Col. Laing's very voluminous
report. Much of it ^is of an elementary character, setting forth what
must be done in any accountancy office small or large, and so much
detail is gone into that it is surprising that he has omitted to say
that, where amounts are to be added up, figures should be carefully
placed one under the other to enable that to be done.

At present neither Lt-Col. Farr nor Major Jolliffe approves
of it on the whole and, while I shall express no opinion until I have
the results of those officers' investigations jointly and severally
before me, I can see that to adopt it in its entirety would mean a
large additional number of men (about 50) without any corresponding
benefit. It will be 2 or 3 weeks before my officers have finished
investigating the matter, because they naturally have much else to do
in the mantime but I will address you further on the matter then. Of
course I wish it made clear that whatever orders you give, however
crude they may appear to us xxxxx here will, if insisted upon, be
carried out, but responsibility for carrying them out will not only
rest with you but absolution for unsatisfactory results will be
afforded us to an extent that it seems unwise to allow. For myself,
personally in charge of this section of your work, I feel it fair
to point out that my usefullness will necessarily be impaired if I am
to be constrained and cramped by directions from your end of the nature
contained in the cablegram under review. Few men are competent to come
here to a strange country under novel surroundings and decide upon a /

2.
upon a system without reference to the local experts most suitable
to our needs. This report might suit an Army in peace time but
this is war time. Men are moved without notice on to fields
where many die or are wounded and there are not the facilities
foraccounting that exist in peaceful sciene scenes. The Bn.
Commanders are soldiers first and accountants afterwards, some
are careful others are not, but they will not be judged so much
by the care they give to their disbursements as by the care they
display in developing to the utmost their men's martial qualities
You can take it for granted that you will lose money under such
circumstances, but the percentage in loss will be so trifling in
the aggregate as to be negligible and the system syuggested, while
it may minimise losses to some small extent will cause worrying
friction not only incompatible with the results obtainable but
quite intolerable in a military machine under such circumstances
as they were at Gallipoli or are likely to be at Flanders or
elsewhere.

Motor Garage - We have had to re-organize this entirely, the off-
in charge were keen but inexperienced, Medical and Transport
Services were dissatisfied and generally things were not good
but we are not on the right track now. In the meantime please more
carefully inspect "Gift" cars coming forward as Motor Ambulances
&c. as some are of poor quality and up to 8 years old. They have
been done up and painted with perhaps a new body put on an old
chassis and presented to the Army to secure advertisement. Where
there is a bad body with a good chassis and a bad chassis with
a good body we scrapp the bad and join the good meaning less
cars but better capacity.

(Sgd) R.McC Anderson Colonel.
D.Q.M.G.
A.& I.F. H.Q.

AIF. 323/4/14.
Cairo LONDON 30th June, 1916.

QMG., Melbourne
(Through Commandant)

Manugfacture future clothing supplies -
The cables passing between us have xxxxx been confirmed
and I need not therefore repeat them here at length. I note that
you refer to manufacturing out there but if at any time you decide
to have same manufactured here just let us know and we are ready
to start having had the patterns and nec. preliminaries completed.
We are carefully looking into the question of our reserve stocks on h
hand and if we find it necessary to replenish those before others
can arrive from you we shall have sufficient made here.  In most
items we can quite satisfactorily accept the British patterns but
I feel that it would be your opinion as it most certainly is mine
that we should stick closely to the Aust. pattern of jacket. I had
quite an amusing experience in this regard when enquiring about the
possibility, cost &c. of manufacturing here. I had to see the
Chief of the Ord.Secn. - Gen. Sir John Steevens. He is known to be a
very peppery man but very capable, and he dismissed my humble and
modest appeal for leave to manufacture here (the W.O. having commandeered
all sources of supply) with a blunt refusal. He pointed
out in direct soldierly terms unencumbered with unnecessary politeness
that it was one Army and that it was quite ridiculous that we
should be different from anyone else and that anyhow he would not
have it. In my meekest of meek voices I suggested that we were
not quite one Army, for instance there were Russians, French,
English and Australians and that anyhow the person that paid the
piper, in our country at least, felt that he had some right in
selecting the tune. He seemed struck more by my audacity than my
reasoning but adopted a more conciliatory attitude in reassuring
me that it was quite unreasonable for us to have a different coat
[*?our*] from other people. I pointed out that while admittedly our coat
consumed ¼yd more of cloth it was a much superior garment to the
British and that it was quite clear to me than within a year or two
the British would be copying the pattern and it would then be
the universal pattern so that I was only forestalling things by a
short period. I ventured to point out also that the Highlanders
wore kilts and that was a variation of the usual pattern of trousers
and that when he stopped the Highlanders wearing kilts that we would f
feel it incumbent upon us to seriously consider whether we should wear
a different type of coat. In my vanity I have to confess that this
seemed a shot between wind and water and caused if not loss, serious
confusion. ! His retort was inelegant but expressive "Pshaw" those
damned Highlanders simply hang on to that ridiculous kilt of theirs
from sentimental reasons". I smiled when I rejoined "What do you
think has brought some hundreds of thousands of men 12000 miles to
fight here" at which he laughed and we became from that moment firm
friends, and we are in danger of becoming pals.

(Sgd) R. McC. Anderson Colonel.
D.Q.M.G., A.I.F.Hdqrs.

AIF. 323/4/9.

Cairo, LONDON, 1st June 1916

Q.M.G., Melbourne
(Through Commandant)

Finance Section - This is the only dept. that is now behindh and
and giving me any concern. I have specially refrained from doing
anything in regard to it or even troubling you about it because
I have been waiting for the Auditor's report on the various Depts.
Until recently it was much understaffed, the Army was gradually
growing and no means were taken to cope with the extra work involved.
If we were up to date we would be able to send out with each man
that goes back to Aust. a sort of acquittance sheet showing exactly
how he stands which would save you trouble at that end and cost of
cables which would then be rendered unnecessary. We can only
patiently wait- now happily not very much longer - to have this
defect remedied - one that worries me whenever I think if it. The
Colonel and Major, the Chief officers in command of the Pay Corps did
good work under discouraging circumstances but they are jaded and need
a long\rest. Luckily if we thought it advisable to return them to
Aust. there are excellent young men in that Branch trained to carry
on the work vigorously and the others will be of use to you out
there. We have your cablegram today agreeing to the new Estab.
in this Branch. Certain small amendments have been made to our scheme
and it seems an awful pity. You have given us more than we asked for
in some lines and you have defined the detail in others. What good
can possibly come of alterations of this nature? Some members of
your Dept. cannot get out of their head idea that they can run this concern
10,000 miles away better than we can on the spot or else they become
so accustomed to altering on principle any suggestion that comes
forward from anywhere outside themselves that they do it naturally
on a sort of misplaced principle.

It was foolish of us to ever trouble you with this
matter and it was originally referred to you by oversight. The responsibility
should be on us to carry out the work in the best way
according to our knowledge. To be quite frank with you if you amend
any suggestion of mine in a way that will interefere with the work
here I shall carry out my own views and, of course I shall not saddle
you with the responsibility which I am quite willing to take, and
which, as a matter of fact, I must take if the work is to be
efficiently and economically performed. Also you can rest assured
that if you authorise a certain expenditure at our request and we
find afterwards that we can do without, or with less, the money
will not be spent, it will be saved.

(Sgd) R. McC. Anderson Col.
D.Q.M.G., H.Q., A.I.F. 

AIF. 323/4/12

130 Horseferry Rd., London.
Cairo, 30th May, 1916.

Q.M.G., Melbourne.
(Through Commandant)

We arrived here on the 23rd inst. and commenced duties
straight away. It requires a good deal of tactful handling
to work in with the High Commissioners' Office - they have been
running things pretty well on the whole but they have easy going
methods that wont suit me but we do not want to make ourselves
unnecessarily unpleasant. One thing I am determined on and that
is to reduce the enormous numbers that we have run into London
and Egypt for doing the work. We did a good deal to straighten up
the business matters in Egypt and I want to again say what I
have said so often before that I do not wish to cast any
reflection on the people who were here before - they simply had
not the competent people to carry out the work and it is wonderful
how well they did under disadvantageous and even distressing
circumstances. Here we have a lot of women who have been doing
the work well at a small price and to have men highly paid and
well equipped as soldiers costing nearly £4.0.0 a week each as
Privates doing most common place clerical work which women can
do so much better at 30/ a week when men are so badly required
either at the front as soldiers or in Australia pursuing their
lawful avocations is extravagant in the highest degree

(Sgd) R. McC. Anderson Col.
D. G.M.G., H.Q., A.I.F.

(Attached to file is pa are particulars of financial arrangements
between C'wealth & Imperial Govt. (AIF.170/1/397)

AIF. 323/4/7
Cairo, 27th April. 1915.

Q.M.G., Melbourne
(Through Commandant)

Cooking - Lieut. Simons arrived here today and action is being
taken to get him to work straight away. It is anticipated that
much good will result from his work in the direction of better
and cheaper service in our Army's culinary department.

Motor Ambulances-
I was surprised today to receive a telegram from
A.S.E.O. at Suez saying that 5 motor ambulances and one touring
car which had been sent from Australia would reach Cairo today.
This is absolutely the first intimation I have had that these
cars were coming, surely you were aware some time before they
left Australia that you would be sending them. If so, it does
seem a pity that the usual business method was not adopted of
sending advice in advance. As a matter of fact in these six cars
there are four different makes, and we have now so many makes in
our garage that it is a very difficult matter to get spare parts
for them. If you are sending any motor ambulances in future it
would be well where possible to restrict yourself to the Wolseley
and Overland. Outside types are inclined to be more nuisance
that they are worth.

With regard to further supplies of Motor Ambulances
I have been in consultation with DMS., AIF and I find the position
is a little difficult because it has not been decided yet as to how
many, if any, are to be sent to France for our troops there. Under
the circumstances, I think you would be well advised not to send
any more motor ambulances outside of those provided for in the
Estab. of the 3rd Div. We would have a number in the Garage now
lying idle awaiting despatch to Europe or elsewhere where their
services may be required. Had we known they were coming we would
have sent them straight on to France; now probably they will
ultimately fall to the use of the British remaining here

(Sgd) R. McC. Anderson. Colonel
D.Q.M.G., A.I.F. Headquarters.