MR. THOMAS WISHED TO RESIGN OFFICE.

Auckland Star, Volume LXVII, Issue 114, 15 May 1936, Page 7

MR. THOMAS WISHED TO RESIGN OFFICE.

BUDGET INQUIRY. Colonial Secretary in the Witness Box. TO PRODUCE BANK BOOK. United Press Association. —Copyright. (Received 11 a.m.) LONDON, May 14. The tribunal inquiring into the alleged leakage of Budget information, under Sir Samuel Porter, continued its sittings to-day. Evidence was given by Mr. J. H-. Thomas, Colonial Secretary, who declared that lie knew nothing of the Chancellor's jiroposals until the Cabinet meeting 011 April 9. He supposed nobody else did. Mr. Thomas said lie played golf on three consecutive days with Mr. Alfred Bates at Easter. He had known him for 20 years. Asked bluntly whether he had disclosed any information 011 the Budget, Mr. Thomas replied, "Absolutely none." He adcled: "Shortly after the Budget was presented pointed reference was made about me. I received anonymous letters and told Mr. Baldwin that I did not know what Cabinet would do. I did not want to know but 1 insisted 011 an investigation of Jll3' son's transactions." Continuing, Mr. Thomas said: "Mr. Baldwin replied, 'It is hardly ft matter for me. It is the concern of the Chancellor.'" Mr. Thomas proceeded: "I saw the Chancellor and repeated the conversation 1 had with Mr. Baldwin. Mr. Chamberlain replied, 'I have not heard from Lloyds vet.' I said lam not concerned with that, Neville, I am concerned with my name and my boy's honour. I want you to investigate mv son's transactions. Son Acted for Client. "I also saw my son immediately his name was coupled with the affair. He said he merely acted for the good of his clients and saw nothing wrong in that as his firm was Mr. Alfred Bates' brokers. I asked, 'Have you done anything for yourself?' and he replied, 'Not a copper.'

"I then sent for Mr. Bates and said, TVhat do you mean by letting Leslie in this way V Mr. Bates replied, 'What do you mean? Leslie, as my broker, is entitled to my business.'"

Boferring to his autobiography for which Mr. Bates offered him £20,000, Mr. Thomas said he had been offered large sums to write it. "I was influenced absolutely on account of a house I wanted and which Mr. Bates purchased."

Mr. Thomas further said that in the interval following his interview with Mr. Baldwin and the Chancellor, he was worried whether to resign. He consulted a friend who said, "For God's sake Jimmie don't resign, as all manner of construction would be placed on it." He thought the advice sound and carried on.

In reply to Mr. Justice Porter, Mr. Thomas declared that Mr. Bates did none of his financial business except the transactions already related in connection with the autobiography. He agreed he had ample opportunity of telling Mr. Bates Budget secrets but he did not recall any discussion of financial matters on the days he saw Mr. Bates.

Banking Account to be 'Produced. Air. Thomas agreed, at Mr. Justiec Porter's request, to furnish the tribunal with his banking accounts and investment book.

After half an hour in the witness box Mr. Thomas left the Court to take refreshment with a friend.

Mr. Reginald Marriott gave evidence that Mr. "VYaterton, a member of his firm of stockbrokers, told him he had heard from a friend named Eves that income tax was to be increased 3d. He added that Mr. Eves got the information from a friend who was also a great friend of Mr. Thomas'.

Witness said he instructed Mr. Waterton to place £75 of insurance, promising lim £100 if it came off.

Mr. Vergottis, a financier, and former shipowner, said that Mr. Waterton told him on April 20 about the income tax rise as a rumour. Mr. Waterton said he heard from his solicitor that he obtained insurance for £2500 at £15 15/ per cent. He afterwards had a discussion with Mr. Randolph Churchill, who regarded a rise of 3d as most unlikely, increases being invariably Od.

The hearing was further adjourned.