MR. THOMAS EXAMINED

Dominion, Volume 29, Issue 196, 16 May 1936, Page 11

MR. THOMAS EXAMINED

Disclosure of Budget Secrets Denied DECISION NOT TO RESIGN By Telegraph—Press .-ssn.—Copyright London, May 14. Giving evidence at the Budget leakage inquiry, the Colonial Secretary, Mr. J. 11. Thomas, declarer! that he knew nothing of the Chancellor’s proposals until a Cabinet meriting on April J, and he supposed that nobody else did. lie plaved golf on three consecutive days at Easter with Alfred Bates, whom he had known for 20 years. Asked bluntly whether he had disclosed any information concerning the Budget, Mr. Thomas replied: "Absolutely none.” He added: “Shortly after the Budget was presented pointed reference was made about me and I received anonymous letters. I told Mr. Baldwin. I don’t know what Cabinet will do, and do not want to know; but I insist on an investigation of my son’s transactions.’ Mr. Baldwin replied: ‘lt is hardly a matter for me: it is the concern of the Chancellor.'” Interview with Chancellor. Proceeding, Mr. Thomas said: “I saw the Chancellor and repeated my conversation with Mr. Baldwin. MrChamberlain replied: 'I have not heard from Lloyd’s yet.’ I said: ‘I am not concerned with that, Neville; I am con center! with my name and with my boy’s honour. I want yon to investigate my son’s transactions.’ I also saw ray’ son immediately his name . was coupled with the affair. He said he had merely acted for good clients, and saw nothing wrong in it, as his firm was Bates’s brokers. I asked. ‘Have von done anything for yourself?’ and he replied, ‘Not a copper.’ I then sent for Bates and said, 'What <lo you mean by letting Leslie in in this way?’ Bates replied, ‘What do you mean? Leslie, as my broker, is entitled Io my business.” . Referring to his autobiography, Mr. Thomas said: “I was offered large sums to write it, and I was influenced absolutely on account of a house I wanted. Continuing, Mr. Thomas said that in the interval following his seeing Dlr. Baldwin and the Chancellor, lie was worried as to whether he should resign, and he consulted a friend, who said: “For God’s sake, Jimmie, don’t resign. All manner of constructions would be placed on It.” He thought the advice was sound, and carried on. In reply to Mr. Justice Porter, Mr. Thomas declared that Bates did none of bis financial business except tlie transactions already related. He agieed that he had ample opportunity for telling Bates Budget secrets, but he did not recall any discussion of financial matters on the days he saw Bates. To Furnish Bank Accounts. Mr. Thomas agreed, at Mr. Justice Porter’s request, to furnish tlie tribunal with his banking accounts and investment books, and Mr. Thomas, after half an hour in the witness box, left the court to take refreshment with a friend. Reginald Marriott, stated in evidence that Mr. Waterton, a member of his firm of stockbrokers, told him he had heard from a friend named Eves that the income tax was to be increased by 3d., and added that Eves got the information from a friend who was a great friend of Mr. Thomas. Marriott instructed Waterton to place £75 in insurance, promising him £lOO if it came off.

The next witness was a man named Vergottls, a financier and former ship owner, who said that Waterton told him on April 20 about, the income tax rise as a rumour Waterton had heard from his solicitor. He obtained insurance for £2500 at £l5/15/- per cent. He afterwards had a discussion with Mr. Randolph Churchill, who regarded a rise of 3d. as most unlikely, increases being invariably 6(1. The inquiry was adjourned.