Dealt in Fraud

Sun (Auckland), Volume IV, Issue 1016, 5 July 1930, Page 9

Dealt in Fraud

EX-PREMIERS HELD GUILTY Queensland Mine Scandal / MR. THEODORE MAY 7 RESIGN POSITION RESULTING from exhaustive inquiry into financial transactions over mining leases, two ex-Premiers of Queensland, Australia, Messrs. B. G. Theodore, now Federal Treasurer, and William McCormack are held by a commission to have been guilty of fraud and dishonest practice. Action may be taken against those involved, whilei the resignation of Mr. Theodore from the Seullin Cabinet is predicted in Sydney.

United P.A.—By Telegraph—Copyright Reed. 10.40 a.m. BRISBANE. Today. Tlie findings of the Royal Commission on the purchase by a former Queensland Government of the Muu gana mining leases and the Chillagoe smelters have been made available. ’Ehe Commission declares that the management of the State smelters by, and the conduct of, Peter L. Goddard generally were censurable. Complete indifference had been displayed for moral and legal obligations. There had been recklessness in expenditure, unscrupulousness in administration and dishonesty in advice, which conduct had been actuated by pecuniary and other personal advantages. The enterprise was disastrous to the State and the results were aggravated by faulty management for which the Government of the day was responsible. There was deplorable laxity by the Treasury over expenditure at the smelters and the associated mines. This was the outcome of improper business relations between Messrs. E. G. Theodore and William McCormack, ex-Premiers, Goddard and Frederick Reid, whom the Commission believed to have been guilty of fraud and dishonesty for procuring to the State the purchase of the Mungana mines for £-10,000. ACTION MAY FOLLOW The Commission also found that the money shared between these men was fraudulently obtained. Mr. Theodore was also guilty of the grossest impropriety in becoming associated with Goddard in the Fluor Spar Mining Company, and the Argentum Mining Company, while Goddard was manager of the State smelters and therefore was debarred by statute from being associated with private ventures. Discussing the report this evening, the Premier, Mr. Moore, said it was a question whether any action would be taken against the parties mentioned in the report. It was a matter for the Crown Solicitor, whose report would come before the Cabinet next week. A message from Canberra says Mr.

Theodore stated that he had no knowledge of the contents of the report, but would have something to say in Sydney at the week-end when he had read it. All the morning papers feature in glaring headlines the Commission’s report and findings, such as: “Theodore and McCormack Guilty of Fraud and Dishonesty.” The “Daily Guardian” says Mr. Theodore’s resignation from the posif tion of Federal Treasurer is likely as a result of the report. It was alleged that the Mungana leases were sold to the Queensland Government in 1921, at a time when Mr. McCormack was Premier, also, that the Government paid £40,000 for the leases and that Mr. McCormack held a | considerable number of the shares. In regard to the Chillagoe smelters the inquiry was based upon statements that t hey were assisted by Mr. McCormack’s Government some years ago. Copies of Mi'. Theodore’s bank account for 1920-25 were produced to the commission by his bankers. “DASTARDLY!” MR. THEODORE REPLIES TO INQUIRY EXPERTS Reed. 2.15 p.m. SYDNEY, Today. Interviewed here today, Mr. Theodore characterised the Mungana commission report as “a dastardly piece cf partisanship.” The commissioner, he said, condemned him without hearing him probed his bank accounts and privafp affairs and closed the inquiry without giving him an opportunity of speaking for himself. Mr. Theodore considered the findings unjust and based on ex-parte statements of his political enemies, who pursued him relentlessly with the object of driving him out of politics. Mr. Theodore said he never had an interest in the Mungana property or leases. He had been unjustly treated and the matter could not be allowed to rest. As to his intentions politically, he must place himself in the party’s hands He would do anything that was considered necessary to avoid embarrassing the Labour ijiovement on his own account.