ART UNION SWINDLE

Poverty Bay Herald, Volume LXI, Issue 18589, 27 December 1934, Page 5

ART UNION SWINDLE

DISCLOSURE AT HOME

TWO M.P.s. AS PRINCIPALS

(Elec. Tel. Copyright—United Press Assn.) LONDON, Dec. 24. Herbert Moss, M.P., was fined £SO, in default three months’ gaol; W. I’. Templeton, M 13.,l 3 ., £25, in default three months; ex-Councillor Thomas Mackenzie, £lO, in default 30 days; and Mrs. M. H. MacDonald was admonished when they were charged in the Glasgow Sheriff’s Court with contravening the Lotteries Act with a lottery under the auspices of trie School of Art Union. J. Baxter Peters, a member of the National Liberal Club, pleaded not guilty and will be tried on January 10. Sheriff Robertson declared that the scheme was a swindle. He had evidence that the union had violated its constitution end forfeited the Board of Trade sanction, of which the accused had been .warned.

A mysterious person started the scheme in London and interested two artists in it. Three fictitious companies were formed. Moss became chairman of the School of Art and imported Templeton, who brought in Mackenzie. Mrs. MacDonald was office assistant. ■

In all £2500 was allegedly deposited in the name of one of the fictitious companies and was withdrawn. Some 735,000 appeals for subscriptions were sent out and '44,000 letters returned. Somo people sent 12s 6d and others 5s to 10s, the aggregate totalling about £IO,OOO. In all £1246 was lodged and £1212(3 drawn out of the union’s bank account.

The balance-sheet, which, allegedly, was untrustworthy, showed that £SOOO had been received and almost entirely disbursed in expenses, showing a net loss of £2276, but £3OOO admittedly was never paid into the bank account. The accused bought a number of pictures for from 22s 6d to 27s 6d apiece for prizes, and some winners foil that they had been unfortunate. Moss was tho head and brains of tho venture and acted with a full knowledge of the situation.