TIN HARE SCANDAL.

New Zealand Herald, Volume LXIX, Issue 21234, 14 July 1932, Page 11

TIN HARE SCANDAL.

COMMISSION SITTING.

REVIEW OF EVIDENCE.

ALLEGED CORRUPTION.

BRIBERY ALSO CHARGED.

LANG REGIME INVOLVED.

By Telegraph—Press Association —Copyright

(Received July 13, 11.25 p.m.) SYDNEY, July 13

Mr. Justice Halse Rogers, the Royal Commissioner appointed by the Stevens Government to investigate the allegations regarding tin hares and fruit machines, today resumed the inquiry which was opened on June 13. Mr. W. W. Monahan, K.C., and Mr. L. S. Abrahams, instructed by the Crown Solicitor (Mr. J. E. Clark) appeared to assist the Royal Commissioner, and Mr. W. A. Holman, K.C., and Mr. T. Conybeare, instructed by Mr. H. L. S. Havyatt, for the Greyhound Coursing Association.

Mr. Monahan, in a lengthy opening address, said the evidence in regard to fruit machines would indicate that there had been bribery and corruption to secure immunity from prosecution. In December, 1930, there was deliberate Ministerial sanction for the use - of machines in hotels in spite of their illegality according to a Crown law ruling. Other phases of the inquiry would reveal bribery and corruption in connection with the proceeds, which should have been earmarked from the machines for hospitals. Alleged Payment of £9OO. Continuing, Mr. Monahan said the evidence would disclose that a sum of £3OOO was paid to somebody able to ensure that a large number of these gaming machines would be installed in various hotels. Such an offer was made to Mr. Traut-' wein, licensee of a city hotel by Mr. L. Smith, one of the directors of Automatic Machines, Limited, which possessed these machines.

Mr. „ Trautwein told a detective that Mr. Smith actually gave him £9£X) to be paid to Mr. Bird, or Mr. Graves, Trades Hall officials, for getting legislation through. Mr. Trautwein also told the detective he had handed the money hack to Mr. Smith, for which he got a receipt. Evidence would also be given in regard to relations —extremely friendly at first—between Mr. Smith and the Hospitals Commissioner, Mr. Loye. Gaming Machines in Hotels.

Mr. Monahan went on to say that Mr. Love played a prominent part in getting the machines back into the hotels after they had been banned. Although they were illegal, a member of the Lang Ministry, Mr. W. T. Ely, recommended that their reintroduction be approved for a temporary period, providing that 45 per cent, of the gross proceeds of the machines went to hospitals. For the two months in which they were in operation in the hotels the collections were in the vicinity of £20,000, and there were no fewer than 40,000 tokens, or discs, for the machines unaccounted for. . Thus, charity had been made a kind of stalking horse. Publicans bought the tokens for 4£d and sold them to the public for 6d.

Evidence was then opened in regard to the reintroduction of mechanical hare racing.'

The terms of reference to the Royal Commissioner are as follows: s (1) Whether any improper or corrupt practices were used or attempted to be used by any person or company to procure legislation authorising greyhound racing and, if so, who were the persons implicated in such improper or corrupt practices. t

(2) The administration of the Gaming and Betting Act, 1912-31, by Ministers of the Crown with regard to the granting of licences for racecourses for greyhound races, and of permits for such racecourses.

(3) The persons, firms, or companies to whom such licences and permits were issued.

(4) All applications for licences and permits, whether the appliactions were granted or refused or not dealt with, and all circumstances connected with such applications, licences and permits. (5) Whether any improper or corrupt practices were used or attempted in connection with the applications for licences or permits for greyhounS racecourses, and, if so, who were the persons or companies implicated in such improper or corrupt practices.

(6) The formation, constitution, management and membership of companies and syndicates which applied for licences or permits, (7) The shareholders, or members, or persons beneficially interested in such companies or syndicates, the consideration paid by such shareholders, or members, or persons for their shares or interests, and the consideration paid to them in respect of shares or interest transferred by them. (8) Whether any shares in such companies or interests in such syndicates were issued or created in pursuance of an improper or corrupt agreement, and whether any dealing in such shares took place in pursuance of any such agreement.

(9) Whether any practices were used by any person or company holding such licences or permits to evado taxation or to defraud the public revenue. (10) The circumstances in which machines known as fruit machines or jackpot machines came to bo installed and operated on premises in the State before and subsequent to January 12, 1931. (11) How many of such machines were in use in the State, and who wore the owners, lessees, or distributors of the machines so used. What companies or persons purported to be authorised to sell, lease, hire, license or ilistal or use such machines, and who were the shareholders during 1931-32. (12) Whether any improper or corrupt practices were used or attempted to be used in regard to the sale, lease, hire, license, installation and the use of such machines, and if so, by whom. (13) 'Whether the stipulated proportion of the takings of such machines was accounted for and paid by the person in possession of such machines to the autb orised collectors. (14) Whether the revenue from such machines received by the authorised collectors has been properly accounted for and, if not, who is responsible. (15) Whether any discs were improperly or fraudulently used for any of the machines sind, if so, by whom were such discs made, used or issued. (16) Whether any improper or fraudulent acts were done in regard to any such machines or the operation thereof.