MUNGANA INQUIRY.

New Zealand Herald, Volume LXVII, Issue 20596, 21 June 1930, Page 13

MUNGANA INQUIRY.

EX-PREMIER'S DEALINGS. PROCEEDINGS NEARING END. (Received June 20, 8.55 p.m.) BRISBANE, June 20. Mr. A. D. McGill, counsel for the Crown, to-day delivered liis closing address before the Royal Commission which is inquiring into the Mungana leases, and into the appointment of Peter Louis Goddard as manager of the Chillagoe smellers and his management of the works. Counsel submitted that it was beyond doubt that Mr. E. G. Theodore, Federal Treasurer, formerly Premier of Queensland, shared in the proceeds from the Mungana mines. " After the purchase by the Government of two mines," said Mr. McGill, " we find that every time Mr. W. McCormack, then Premier, was paid his share of what might be called 'dividends' he paid a share to Mr. Theodore, which has been traced into Mr. Theodore's account, and approximates half the amount Mr. McCormack received from Mungana." The hearing of evidence has been concluded, but the commission is to be kept open until June 28 to enable Mr. Theodore to give evidence if he so desires.

Mr. Theodore was invited to give evidence, but recently notified the Royal Commission that his duties in connection with the Federal Budget would prevent him doing so. Mr. 11. J. Henchman, Crown solicitor, Brisbane, thereupon notified Mr. Theodore that the Royal Commissioner would keep the inquiry open till June 24, and would like to know whether Mr. Theodore intended to avail himself of the opportunity to give evidence.

The full terms of reference of the commission are:—To report on the appointment of Mr. P. L. Goddard as manager of the Chillagoe mines and smelters and his conduct as manager, and dealings with certain leases; the operations of Mr. Frederick Reid in connection with Mungana leases; the formation and activities of the Fluorspar Mining Company and the Argentum Mining Company; the dealings of tho firm of Dunlop and Reid, sawmillers and hotelkeepers, in connection with the Chillagoe smelters; and the conduct of any Minister of the Crown in relation to all the above matters.

It is alleged that the Muneana leases wore sold to the Queensland Government in 1921, at a time when Mr. McCormack was Premier, also, that the Government paid £40.000 for the leases and that Mr. MrOormack held a considerable number of the shares. In regard to the Chillagoe smelters the inquiry is based upon statements that they were assisted by Mr. McCormack's Government some years ago. Copies of Mr. Theodore's bank account, for 1920 : 25 were produced to the commission by his bankers.