BUDGET INQUIRY

Dominion, Volume 29, Issue 199, 20 May 1936, Page 11

BUDGET INQUIRY

Witness Denies Receiving News From Mr. Thomas ELECTION INSURANCES By Telegraph—Press Assn.—Copyright. London, May 18. Giving evidence at tlie Budget leakage 'inquiry, Bernard Davis, a stockbroker, stated that lie lunched with Sir Alfred Butt at his office on April 21. Sir Alfred said ho thought an increase in the income tax was certain owing lo rearmament, and he instructed witness to sell large amounts of shares. Sir Alfred Butt's sou came in and said "A lot of income tax risks are being covered,” adding that Berry—- " Lord Camrose, I suppose,” remarked the witness—had covered a lot on the previous day. Sir Alfred instructed witness to take out £2OOO or £3OOO worth, and later telephoned saying that he expected a tax and wanted to go “bear” in tea shares. Witness, however, dissuaded him. Sir Alfred Butt emphatically denied that lie ever received information from Mr. J. 11. Thomas, Colonial. Secretary, or any other Minister relating to pos sible changes in the Budget. Sir Alfred said be had been insuring against contingencies of various kinds since 1931. When he saw Mr. Thomas on Budget day their two or three minutes’ conversation related solely to horse racing, and the Budget was not mentioned. “Mr. Thomas always liked to discuss racing with me, and to have a wager on what I told him,” said the witness. When the witness told Mr. Thomas that his son’s name was being connected with the Budget rumour* 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 Butt disclaimed any joint transactions with Mr. Thomas, but recalled a meeting with Mr. Thomas on a racecourse last year when be said, “Jim, I think I have done a good gamble to pay my election expenses. I’ve insured with Lloyd’s to pay if an 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 gamble to the extent of insuring for £1000.” Sir Alfred Butt’s son arranged the business, and after the December election Sir Alfred sent Mr. Thomas a cheque for £lOOO, less £36 premium. Counsel, interposing on 'behalf of Lord Camrose and Lord Kemsley, said that neither they nor their'families had the slightest interest in Budget insurance.

The judge said there was not a shred of evidence that they were.