MINING LEASES

Southland Times, Issue 21090, 23 May 1930, Page 7

MINING LEASES

QUEENSLAND INQUIRY

EVIDENCE OF AUDIT INSPECTOR THE CHILLAGOE SMELTERS * press Assn.—By Telegraph—Copyright.) • Brisbane, May 22. The interest of the ex-Premier, Mr. W. McCormack, in the Mungana mining leases and his Government’s assistance to the Chillagoe smelters some years back was the subject of further evidence before the Royal Commission. Mr. Peter McCaffrey, senior inspector of the Audit Department, related that while Mr. McCormack was Premier in 1926 he told Mr. McCormack that the Chillagoe smelters were an absolute white elephant, the losses on which were £lOO,OOO a year. Mr. McCormack asked him to make a thorough investigation and to furnish a report to him and not to the Auditor-General. Witness also told him that Goddard, who was closely identified with the Mungana leases, was greatly worried about, the Mungana capital cost, which had risen £200,000. Mr. McCormack replied: “What has he to worry about over Mungana? That is my pigeon and Theodore's, not his.” Mr. McCaffrey expressed the opinion that the Auditor-Gener-al’s report in 1923-24 concerning the Chillagoe smelters was falsified.