MUNGANA CASE

Hokitika Guardian, 23 July 1931, Page 6

MUNGANA CASE

HEARINC BEGUN.

(Australian Press Association.)

BRISBANE, July 22

With two former Queensland Premiers defending their honour, the Mungana mining lease case opened at the Brisbane Supreme Court to-day in a tense atmosphere. Mr Theodore and Mr McCormack had to tread their way through a narrow lane df humanity, which struggled to get admission to the Court.. The Attorney-General, Mr N. F. MacGroarty, along with Mr A. D. Gill and Mr G. Seaman are appearing for the Crown to prosecute.' \ Mr Ross Philp, Mr Neal Macßossan and Mr A. J. Mansfield are appearing for the defendants. A cable yesterday, stated that the case is likely to last for a fortnight.

GOVERNMENTS CASE

BRISBANE, July 22. Regarding tile Mungana case, the briefest outline of the Crown case, which was opened by Mr Gill is as follows: —That Reid, in 1917,- acquired certain mining leases, including the “Lady Jane” and, the “Girofia’ at Mungana in the electorate of Chillagqe, then repersented by Mr Theodore, that he disposed off the half interest to Mr McCormack, who was then the Speaker of the Queensland Assembly, and to Mr Theodore, by virtue of their holding Parliamentary positions, were entitled to hold such an interest in these ventures; and that Goddard ,became Manager of State smelters at Chillago 0 to which ore was taken to be treated from Mungana mines. The Crown submitted that Reid induced the Government on Mr Theodore’s recommendation, to advance £2,800 for the development of the mines, part of the profits (from which were later paid to Mr Theodore, instead, of bing used in repayment of the C 2,80().

Finally, the Crown contended that Mr Goddard, in 1920, was authorised by the State Executive, of which Messrs 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 and other members oif the Mungana Syndicate, offered and sold them for £40,000. The Crown claimed that Mesrs McCormack’s and Theodore’s share of the proceeds amounted respectively to 010,928. THE DEFENCE. The defendants’ formal defence is a denial of conspiracy or any other offence.

They claim that the Mimgami mines I were bought for the Government on j the rcc(>inniqnd;iti()ii f s i pf ypmpc.qpi , tiers, and of other experts; two -of whom assessed the value of the mines in excess of forty thousand pounds. Mr Mansfield (for the defence), anplied to have the defendant, Reid dismissed from the action, owing to the fact that his estate Ims been sequestered. The Crown was the creditor and in any judgment given against him, could not recover.

Chief Justice Blair reserved judgment on the point. Mr R oss Philip then took t lie objection that the present action was technically wrongly founded under the Crown Remedies Act. The Chief Justice again reserved judgment on the point raised.