BUDGET LEAKAGES

Gisborne Times, Volume LXXXIV, Issue 12865, 20 May 1936, Page 3

BUDGET LEAKAGES

Silt ALI RED BUTTS EVIDENT* TALKED ONLY RACING WITH MR. THOMAS 'U.t’.A. by Elec. Tel. rropylght). LONDON, May IS.

The judicial' tribunal inquiring into the alleged leakage of Budget information continued its proceedings ti>dav.

Air. Bernard Davis, a 'stockbroker, gave evidence that lie lunched with Sir Alfred Butt at his office on April 21. Sir Alfred said he thought an in encase in income tax was certain owing to the rearmament plans. lie instructed the witness to sell large amounts of shares.

Sir Alfred’s son came in and said a lot of income tax risks were being covered, adding: “Berry—Camrose I suppose—covered a lot” on the previous day. Sir Alfred instructed witness to, take out £2OOO to £3OOO worth and I'fltcr telephoned, saying he expected the tax and wanted) to go “bear” in tea shared. Witness, however, dissuaded him.

Sir Alfred emphatically denied that ho ever received l information from Mr. J. 11. Thomas, the Colonial Secretary, or any other Minister, relating to possible changes' in the Budget. Sir Alfred said lie had been insuring against contingencies of vtinV ous kinds since 1931.

When he saw Air. Thomas on Budget day their two or three minutes of conversation related solely to horse racing. The Budget was not mentioned.

“Mr. Thomas always liked; to discuss racing with mt and. have a wager on what I told him,” he continued. When the witness told Mr. Thomas that his son’s name was beingi connected with Budget rumours, AirTlliomabi was very • upset and: said: “What ui damned stupid rumour. Lea would not do a tiling like that. Ho has not said a word to me about it.” Sir Alfred disclaimed any joint transactions with Air. Thomas, but recalled meeting Air. Thomas <>u a racecourse last year, when he said : “(Tim, I think I have done a good gamble to pay' niv election expenses. I have insured at Lloyds. They will pay if a,n election is held this year. The prenrUnn is about 30 per cent. Why don’t you have a gamble?”

Air. Thoma-s had said in reply: “All r : ght. I will gamble tot the exH tent of insuring for £1000.” Sir Alfred’s'son arranged' the business, and after the December ejection Sir Alfred sent Air. Thomas «i cheque for £IOOO, less £207 as premium. Counsel, interposing on, behaEi of Lords Cam-rose and Kemsley, said tliat neither they nor their families had the slightest interest in Budget insurance.