BUDGET SECRETS

New Zealand Herald, Volume LXXIII, Issue 22424, 21 May 1936, Page 11

BUDGET SECRETS

INQUIRY CONTINUED EVIDENCE OF BROKERS INSURANCE SPECULATIONS By Telegraph—Press Association—Copyright LONDON. May 19 The tribunal set up to inquire into allegations of the leakage o£. ; Budget information sat again today, Sir Samuel Porter, Judge of the King's Bench Division, presiding. Kenneth Butt, son of Sir Alfred Butt, was recalled. He admitted having made a statement to his employers which included a number of untruths and gave the impression! that he had effected insurances for a Mr. Harrison, whose order was unlimited for any specific amounts and rates. Tn replv to counsel's question whether he did not see anything serious in making and signing such an untrue statement, witness added: "Yes. I went straight to my father. I had not any motive except to prevent the firm from knowing my father was the true owner of the insurances." Statement Regarding Mr. J. H. Thomas Philip Ambrumenil, chairman of the firm which employed Kenneth Butt, gave evidence that he told Butt he took a serious view of his action in effecting Budget insurances through other brokers without his firm's knowledge or consent. Witness might have dismissed him but asked him for a signed statement, which Butt considered privately before signing. Witness added: "I had no idea that Butt's father was concerned in the insurances." Sir Samuel Porter closely questioned a witness, Waterton, a member of a stockbroking firm, in relation to a statement he was said to have madeconcerning Mr. J. H. Thomas, Colonial Secretary. This was to the effect that he had heard from a friend that the income tax was to be increased and that the information had come from Mr. Thomas. Witness explained that he thought Mr. Leslie Thomas was a friend of Sir. Albert Davis, who speculated on an increase in income-tax. "It was not very ethical, but I connected the two and did it entirely on my own," he added. Means oi Obtaining Information The Judge: Having done that you went and told Mr. Marriott (another stockbroker of witness' firm) that your information was from a friend who had a friend who was Mr. J. H. Thomas < Witness: Something to that effect. Dr. Reginald Hearn stated in evidence that Mr. Vergottis had said he. had means of getting hold of information from a Cabinet Minister and mentioned Mr. Thomas. Witness regarded this as being in the nature of gossip and not to be taken seriously. Mr. Morris, for Mr. Thomas, interposed, stating that Mr. Vergottis was completely unknown to Mi;. Thomas. The Judge said he was grateful to Mr. Thomas for producing his private accounts, but he would also like his accounts with his bookmaker or anything of that kind. The hearing was adjourned. Counsels' addresses will be given to-morrow.

NORTHERN IRELAND LEAKAGES ALLEGED INVESTIGATION ORDERED BELFAST, May 19 A Labour member of the Northern Ireland Parliament, Mr. Midgley, complained to-day of leakage of information prior to the presentation of the Budget earlier this month. He saijl the newspapers were in possession of the proposals long before the announcement was made in the House and details had been telegraphed to England. The matter was referred to the Com* mittee on Privileges.