FRAUD REPORTED

Hokitika Guardian, 5 July 1930, Page 5

FRAUD REPORTED

IN QUEENSLAND ALINING ENQUIRY.

(Australian Press Association.)

BRISBANE, July 4

The Royal Commissioner made his finding on the purchase by the former Queensland Government of the Al.un.gana Aline cases and the Oliillagoe smelters available to-day. The finding declares *that the Management for the state smelters by, and the conduct of Peter Goddard was generally censurable. Complete inuiirereme had Oeeu displayed to moral and legal obligations. There had been recklessness in expenditure, inin administration, and dishonesty jin advice, which conduct had been actuated by pecuniary and other personal advantage. The enterprise was disastrous to the State and the results were aggravated by faulty management, for which a Government of the day were responsible. There was a deplorable laxity by the Treasury over expenditure at the smelters and the associated mines. This was the outcome of improper business relations between Messrs Thcodorej McCormack, Goddard and Frederick Reid, Whom the Commissioner said lie believed guilty of fraud and . dishonesty for procuring the State to purchase of the Mungara Mine for £40,000, He also found that money shared between thorn was fraudulently obtained, The Commissioner added Air Theodore was also guilty of grossest impropriety in becoming associated with Goddard in the Flour Spur Mining Company and the Argentum Alining! Company, while Goddart was manager of trie State smelters, and therefore, debarred by statute from being associated with private ventures.

Discussing the report to-night Premier Aloore said the question whether any action would be- taken against the parties mentioned in the report was a matter for the Crown Solicitor, whose reports comes before Cabinet next week.

CANBERRA, July 4

Air Theodore stated to-night that he had no knowledge of the contents of the Commissioner’s report and he would have something to s»-.y in Sydney at the week-end when it had been read in London.

THE AIUNGANA REPORT,

NEWSPAPER COAIAIENT

(Received this day at 9.40 a.m.) . SYDNEY, July 5,

All the morning papers feature in a glaring headline the Alungana ■ and Chillagoe Commission’s report and findings such as “Theodore and AicCormifck guilty of fraud and dishonesty.” The “Guardian'’ says Air Theodore’s resignation . of the Federal Treasureship is’ likgly ns a result of the report, .