SCANDAL IN SCOTLAND.

Waikato Times, Volume 116, Issue 19459, 26 December 1934, Page 7

SCANDAL IN SCOTLAND.

LOTTERIES AOT BROKEN. POLITICIANS IMPLICATED, SUBSTANTIAL FINES IMPOSED. United Press Assn.—Elec. Tel. Copyright. LONDON, Deo. 24. On charges of 'contravening the Lotteries Act under the auspices of the “School of Art Union,’’ Herbert Moss, Conservative M.P. for Rufiheriglen, Lanark, was fined £SO, or in default three months’ imprisonment, W. P. Templeton, Conservative MP. for ■Coatbridge, Lanark, £25, or in default three months’ imprisonment, Thomas Mackenzie, a former 'councillor, £lO, or in default 30 days’ imprisonment, and Mrs M. H. MacDonald was admonished in the Glasgow Sheriff’s Court. J. Baxter Peters, a member of the ■National Liberal Club, pleaded not guilty and will he tried on January 10. Sheriff Robertson declared that the scheme was a swindle. He said the iinion had violated its constitution and forfeited the Board of Trade’s sanction, of 'which 'faot the accused were warned.

A mysterious person started the scheme in London and interested two artists in it. Three fictitious companies were formed, said the sheriff. Moss became chairman of the School of Art and imported Templeton, who brought in Mackenzie. Mrs MacDonald was the ofilce assistant. It was alleged that a sum of £2500 was deposited in the name of one of the fictitious companies and was withdrawn,, also .that 735,000 appeals for subscriptions were sent out. Fortyfour thousand letters were returned but some people sent 12s fid and others 5s to 10s, totalling about £lO,000.

A sum of £1246 was lodged and £12*20 was drawn out of the union’s .hank 'account. The balance-sheet which was alleged lo be untrustworthy showed that £SOOO received •had been almost entirely disbursed on expenses, showing a net loss of £2276, but £3700 admittedly was never paid Into the bank account. Accused bought a number of -pictures at 22s fid ‘to 27>s 6d each, some winners of which felt they were unfortunate. Moss was the head and brains of the venture and acted with full knowledge .of tho situation, said the sheriff s