THREE GROUPS

Evening Post, Volume CXXI, Issue 130, 3 June 1936, Page 9

THREE GROUPS

SOURCES OF INFORMATION INITIAL COMPLAINT BY LLOYDS (British Offlclal Wirelcss.7 (Received June 3, 11.13 a.m.) RUGBY, June 2. The report of the Budget tribunal is addressed to the Home Secretary and signed by the three members of the tribunal, Mr. Justice Porter, of the King's Bench Division, and Messrs. Gavin Simonds and Roland Oliver, both King's Counsel. The report recalls that the question of leakage of Budget secrets was brought to the notice of the Chancellor of the Exchequer by information derived from Lloyds regarding an undue amount of insurance against Budget risks. Preliminary inquiries showed that important business emanated from three groups. In the case of insurances effected in the name of Mr. W. J. C. Atkinson the tribunal unhesitatingly accepts the evidence that they were not prompted by improper information. Other business was done first by Mr. Alfred Bates or persons who were influenced by him or by his agents, and secondly by Sir Alfred Butt, both of whom, the report states, are old friends of Mr. J. H. Thomas..

The report, which is a document of over 8000 words, reviews in detail the evidence the tribunal received regarding these transactions. The tribunal's conclusions having regard to the evidence and demeanour of the witnesses is that "There was an unauthorised disclosure of information relating to the Budget for the present year by Mr. J. H. Thomas to Mr. Bates" and to Sir Alfred Butt, and that "use was made of this information for the purpose of his private gain by Mr. Bates" and by Sir Alfred Butt. The report refers to evidence ordered by Cabinet and Treasury officials, and con-, tinues: "We unhesitatingly accept their evidence as regards themselves, their subordinates, and those engaged in the Civil Service generally, including printers. We find no shred of evidence to suggest that any of these persons was ever in communication with any of those who effected insurances." "The observations," the t-ibunal adds, "apply to all Cabinet Ministers save Mr. J. H. Thomas, and to all those persons to whom information as to the Budget was supplied before its publication to the House of Commons. We think it right and in public" interest that our view in this respect should be openly and plainly, affirmed."

The report also records the unanimous opinion of the tribunal that Mr. Leslie Thomas, Mr. J. H. Thomas's stockbroker and son, neither knew nor suspected that Mr. Bates, for whom he placed certain insurances, had any improper information of Budget secrets.