SUMMARY OF THE CASE

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

SUMMARY OF THE CASE

EVIDENCE AT INQUIRY The fact that there had been a leakage of information about the provisions of the British Budget was disclosed on April 24. A special meeting of Lloyd's Committee had shown that while Budget insurance did not amount to more than £10,000 to £,15,000 in the usual course of things, tne market had been swamped this year with orders amounting to tens of thousands of pounds, and that on one day the rate of insurance against an increase of income tax rose from 15 guineas to 45 guineas. Sir Assheton Powell, a member of Lloyd's, declared that there had been a leakage for the first time in his experience, and said that "no one pays 45 guineas per cent, unless they are certain they are backing the horse after the race is won."

The Chancellor of the Exchequer, questioned in the House of Commons on the leakage of information, declared that the whole matter would be sifted. On May 5 he moved for the creation of a tribunal to examine the situation, and the inquiry opened on May 11. The Attorney-General then mentioned certain insurances taken out against Budget alterations by Sir Alfred Butt, and business which had been transacted on April 15 (six days before the Budget was brought down) on behalf of Mr. Alfred Bates, an old friend of Mr. J. H. Thomas, the Secretary for the Colonies, and of his son, Leslie, who is a member of a stockbroking firm. Both Mr. Bates and Mr. Leslie Thomas saw the Secretary for the Colonies on Good Friday or during Easter Week. Sir Maurice Hankey, the Secretary to Cabinet, gave his opinion that the leakage could only have been from a member of the Cabinet. No record of the details had been taken, and no memorandum about them circulated after Mr. Chamberlain's statement to Cabinet.

Mr. Bates denied possessing information about the Budget when he took out his insurance, and revealed that he had agreed to advance Mr. Thomas £20,000 againsts expected profits from his autobiography. A house had been purchased for Mr. Thomas, the cost of this and the legal expenses amounting to £15,000. Sir Alfred Butt was revealed by Mr. Bernard Davis, a stockbroker, to have placed from £2000 to £3000 worth of insurance against Budget risks, but Sir Alfred himself denied ever having received any information from Mr. Thomas, whom he had seen on Budget day. He admitted having gambled with Lloyd's last year on behalf of himself and Mr. Thomas, on an election being held that year, and that his son had arranged the business and sent Mr. Thomas a cheque for £964 after the election. Mr. Reginald Marriott, a stockbroker, stated that a member of his firm had told him that he had heard pf a possible increase in the income tax from a friend named Eves. This man was supposed to have had the information from "a friend who was a great friend of Mr. Thomas." On May 22 Mr. Thomas' resigned.