BUDGET INQUIRY

Manawatu Standard, Volume LVI, Issue 139, 14 May 1936, Page 7

BUDGET INQUIRY

WITNESS RECALLED. DEAL WITH AIR J. H. THOAIAS. PUBLICATION OF BIOGRAPHY. (United Press Association —By Electric Teleg rapli—Copy right.) Received Alay 14, 9.45 a.m. LONDON, Alay 13. Tendering evidence to the tribunal inquiring into the alleged Budget leakage, Sir Mauric Gwyer, ProsecutorGeneral and Solicitor to the Treasury, said he did not know of the income tax increase till the morning of the Budget. There had been no leakage in liis department. Alfred Bates, recalled, said that when he made the insurances he did not possess information as to the Budget’s contents. He had been a friend of Air J. H. Thomas for more than twenty years and had played golf with him during Easter. Air Thomas did not disclose anything about the contents of the Budget; bis only business transaction with Air Thomas was the offer of £20,000 for the exclusive rights of Air Thomas’s autobiography. Air Thomas had replied intimating that he had other offers of substantial sums but was influenced by the fact that Bates was prepared to make an instant advance on the autobiography. “If you can get a house in your district on which my wife is keen, and there is a clear understanding that does not prevent me from writing I will accept the terms.” Bates said he purchased a house and wrote Air Thomas on April 6, stating that the purchase and legal costs amounted to £15,100. The draft he sent Air Thomas was signed on April 8: “I hereby acknowledge that Air Bates paid out to me £10,16J in reduction of the sum payable to me for the rights of my autobiography. Replying to the Judge, Bates said he had never assisted Air Thomas to place sums on the turf. Air Thomas was to reecive £20,000 for writing bis life, plus half the profits beyond £20,000 to go to Air Thomas. Air 1 nomas died. Bates had not yet received an instalment of the book, but believed it was in preparation The Judge: Apparently Air Thomas asked you to complete the purchase of a house for £15,000 on the security ol the biography? Bates nodded assent. . The Judge: Is not that a considerable risk? He may die before the C °Bates said the wife and family would “fEITXT!;. you 11,ink « ki.gr,,phy of Mr Thomas by his wife and familv would make a profit of ovei £20,000? Bates : Considerably more. The hearing was adjourned.