£20,000 OFFER 10 CABINET MINISTER.

Auckland Star, Volume LXVII, Issue 113, 14 May 1936, Page 7

£20,000 OFFER 10 CABINET MINISTER.

TERMS ACCEPTED. Rights for Autobiography Of Mr. J. H. Thomas. BUDGET LEAKAGE INQUIRY. United Press Association.—Copyright. (Received 10.30 a.m.) LONDON, May 13. The inquiry by the tribunal appointed by the Government to investigate alleged leakage of Budget information was continued to-day. Sir Maurice Gwyer, Prosecutor-General and solicitor to the Treasury, said he did not know of any income tax increase till the morning of the Budget. There was no leakage from his Department. Mr. Alfred Bates, recalled, said that when he made insurances with Mr. Leslie Thomas he did not possess information of the Budget contents. He had been a friend of Mr. J. H. Thomas, Colonial Secretary, for more than 20 years. He played golf with him during Easter and Mr. Thomas did not disclose anything about the contents of the Budget. The only business transaction with Mr. Thomas was an offer of £20,000 for the exclusive rights of Mr. Thomas' autobiography. Mr. Thomas replied intimating that he had other offers of substantial sums but was influenced by Mr. Bates being prepared to make an instant advance on the autobiography. Mr. Thomas had added: "If you. can get a house in your district, on which my wife is keen, and there is a clear understanding that does not prevent me writing, I will accept the terms."'

£15,000 House Purchased. Mr. Bates said he purchased a house and wrote to Mr. Thomas on April G, stating that the purchase and legal costs amounted to £15,100. The draft he sent to Mr. Thomas was signed on April 8, and stated: "I hereby acknowledge that Mr. Alfred Bates has paid out to me £15,100 in reduction of the sum payable to me for the rights of my autoof the autobiography? Replying to the judge, Sir Samuel Porter, Mr. Bates said he never assisted Mr. Thomas to place sums on" the turf. Mr. Thomas was to receive £'20,000 for the writing of his life plus half profits beyond £20,000, the profits to go to Mrs. Thomas if Mr. Thomas died. Mr. Bates said he had not yet received an instalment of the book but believed it was in preparation. The Judge: Apparently Mr. Thomas asked you to complete the purchase of the house for £15,000 on the security of the biography? Mr. Bates nodded assent. The Judge: Is that not a considerable risk ? He may die before completion of the book. Mr. Bates: His wife and family would supply the data. The Judge: Do you think the biography of Mr. Thomas by his wife and family would make a profit of over £20,000 ? Mr. Bates: Considerably more. Mr. Bates said that in making insurances he hid his identity to get better rates, using in this connection his knowledge of betting transactions. Five different names appeared in his policies. The tribunal, says a British official wireless message, heard evidence from Sir Warren Fisher, Secretary to the Treasury and head of the Civil Service, who described the procedure adopted for safeguarding confidential information. The tribunal will continue its sittings to-morrow.