MUNGANA TRIAL

Taranaki Daily News, 23 July 1931, Page 5

MUNGANA TRIAL

COURT OPENS HEARING GOVERNMENT CLAIM £30,000 PURCHASE OF MINE LEASES EX-PREMIERS INVOLVED FRAUDULENCE ACCUSATION By Telegraph—Press Assn. —Copyright. Rec. 7.35 p.m. Brisbane, July 22. With two former Queensland Premiers defending their honour, the Mungana lease case opened at the Brisbane Supreme Court to-day in a tense atmosphere. Theodore and McCormack had to thread their way through a narrow lane of humanity which struggled to gain admission to the court. The Attorney-General, Mr. N. F. MacGroarty, and Messrs. A. D. Gill and G. Seaman are appearing for the Crown to prosecute, and Messrs. Ross Philp, Neal Maorossan and A. J. Mansfield are for the defendants. The statement of claim consists of 1600 words. The Queensland Government is suing for the recovery of £30,000 from the Federal Treasurer, Edward Granville Theodore, William McCormack, also a former Queensland Premier, Peter Louis Goddard and Frederick Reid. Briefly the claim is one for damages for alleged conspiracy, or alternatively, damages for that Theodore, McCormack and Reid agreed to give Goddard “a certain benefit in consideration of Goddard as ag&nt for the King recommending or procuring the purchase by the Government of certain mines at Mungana known as the Lady Jape and Girofla, whereby the three defendants procured the purchase of the mines by fraudTho Crown also seeks an account and repayment of nil profits made by McCormack and Theodore arising out of such purchase, “in breach of their duty as agents of the King.” Alternatively the State seeks damages for conversion. ~ Mr. Mansfield applied to have Reid dismissed from the action, owing to the fact that his estate bad been sequestrated. The Crown was the Creditor, and in any judgment given against him it could* not recover, The Chief Justice, Mr. Justice Blair, reserved judgment on the point. Mr. Philp made the objection that the present action was technically wrongly founded under the Crown Remedies Act. The Chief Justice again reserved judgment. Mr. Gill eaid that Reid in 1917 acquired certain mining leases, including the Lady Jane and the Girofla, at Mungana in the electorate of Chillagoe, then represented by Theodore, and that he disposed of a half interest to McCormack, then Speaker of the Queensland Assembly, and Theodore. Neither McCormack nor Theodore by virtue of their, parliamentary positions were entitled to hold such an interest in these ventures. Goddard became manager of the State smelters at Chillagoe, to which ore was taken to be treated from the Mungana mines. The Crown submitted, said Mr. Gill, that Reid induced the Government on Theodore’s recommendation to advance £2BOO for the development of the mines, part of the profits from which were lafer paid to Theodore instead of being used in repayment of the £2BOO. Finally the Crown contended that Goddard in 1920 was authorised by the State Executive, of which McCormack and Theodore were members, to negotiate with Reid for the purchase of the Mungana leases, while Reid, acting on behalf of himself, McCormack, Theodore or any other members of the Mungana syndicate, offered and sold them the leases for £40,000. The Crown claimed that McCormack’s and Theodore’s share of the proceeds amounted respectively to £13,328.

The defendants’ formal defence is a denial of conspiracy or other offence. They claim that the'mines were bought for the Government on the recommendation of competent valuers and other experts, two of whom assessed a value in excess of £40,000. The cose may continue for a fortnight.