THE HEYES AFFAIR

Taranaki Daily News, Volume LIII, Issue 83, 16 July 1910, Page 5

THE HEYES AFFAIR

SOME INTERESTING FACTS.

STATEMENT BY THE PREMIER. By Telegraph.—Press Association. Wellington, Last Night. In the House of Representatives this evening'. Sir Joseph Ward made a statement as to the facts connected with the resignation of Mr. Peter Heyes, late Commissioner of Taxes, and Mr. Dugdale, principal valuer. He explained the action that had been taken to investigate the matter, and the result of that investigation. Mr. Heyes, he said, had not been found guilty of bribery or corruption. The Premier regretted that an officer in the position of Mr. Heyes had been placed in a position of being called upon to resign. He read a verbatim report of the Commission, which showed that Heyes in September, 1!)0G, made application for a loan of £I2OO on a property in Wellington Terrace, which he had agreed to purchase for £IOOO. The Commission found that Heyes wrongfully procured a special valuation of this property in order to procure a £I2OO loan. He also took benefit of the rebates under section 35 of the Advances to Settlers Act. The valuation on which the loan was granted was made by Dugdaie at £2040. The Commission had no reasonable doubt that Heyes and Dugdaie acted in concert. On behalf of Heyes it was stated that immediately on the purchase of the property by him he was offered £200:1, and tho Commission was satisfied that Heyes was offered a loan of £ISOO by a private lender. Heyes also improperly obtained advances on a property at Karamea. on trie West Coast of the South Island, on 14th .TumKin, 1007. In the valuation bv the local valuer no account was taken of the timber. For some reason which did not appear he mistakenly valued the property as good for a loan of £!!.)0. being £2OO in excess of the maximum loan which could be granted on the valuation. The Commission found that H»yes, in co-operation with Dugdaie, falsely represented to the local valuer that the timber was taken into account by the Board in valuing the security. in consequence of which the valuer signed the document stating that the timber was valued at £SOO. This was not include:! in the local valuer's valuation. Eventually Heyes received a loan of £SOO. The Commission found that Heyes obtained an improper loan from the Advances to Settlers Office by misleading the local valuer, and by failing to inform the Board of the material circumstances, which would have induced I the Board to decline to make the advance.

In consequence of the report of the Commission, the Government had called upon Heyes and Dugdaie to tender thenresignations. He moved that the report lie on the table.

Replying to Mr. Massey, .the Premier said lie could not agree to place on the table the report of the Judges appointed to enquire into the irregularity in connection with the Income Tax Department, as this would involve giving publicity to the private affairs of taxpayers.

After some discussion the motion was carried.