ELECTION EXPENSES MET BY GAMBLE.

Auckland Star, Volume LXVII, Issue 117, 19 May 1936, Page 7

ELECTION EXPENSES MET BY GAMBLE.

POLITICIANS' LUCK. Evidence at British Budget Leakage Inquiry. MR. THOMAS HAS A BET. United Press Association.—Copyright. (Received 10.30 a.m.) LONDON, May 18. At the Budget leakage inquiry, Bernard Davis, stockbroker, gave evidence that he had lunch with Sir Alfred Butt, M.P. (Con., Wandsworth) in his office on April 21, the day the Budget was presented. Sir Alfred had said he thought an increased income tax was certain owing to' rearmament and had instructed witness to sell large amounts of shares. Sir Alfred's son came in and said a lot of income tax risks were being covered. He added: "Berry—Lord Camrose, I suppose— covered a lot the previous day." Sir Alfred instructed witness to take out £2000 or £3000 worth and later 'phoned saying he expected a tax and wanted to go "bear" in tea shares. Witness, however, dissuaded him.

Sir Alfred Butt, in evidence, emphatically denied ever having received information from Mr. J. H. Thomas or any other Minister relating to possible changes in the Budget. He said he had been insuring against contingencies of various kinds since 1931.

When he saw Mr. Thomas on Budget day their two or three minutes' conversation had related solely to liorse-racing. The Budget was pot mentioned.

"Mr. Thomas always liked to discuss racing with me and to have a wager on what I told him," added Sir Alfred. "When I told Mr. Thomas that his son's name was being connected with the Budget rumours, Mr. Thomas was very upset and said: 'What a damned stupid rumour. Les. would not do a thing like that. He has not said a word to me about it.'"

Sir Alfred teutt disclaimed any Joint transactions with Mr. Thomas, but recalled a meeting with the Colonial Secretary on a racecourse last year. He had said: "Jim, I think I have done good on a gamble that will pay my election expenses. I've insured that Lloyd's pay if the election is held this year. The premium is about £30 per cent. Why don't you have a gamble ?" Mr. Thomas said: "All right I will have a gamble to the extent of insuring for £1000." Witness said that his son arranged the business, and after the December election Sir Alfred sent Mr. Thomas a cheque for £1000 less £307 premium. Counsel, interposing on behalf of Lords Cainrose and Kemsley, said that neither they nor their families had the slightest interest in Budget insurance.

The judge, Sir Samuel Porter, said there was not a shred of evidence that they had.