The judicial enquiry into the alleged leakage of Budget secrets con cerning the income tax and tea duty opened here to-day before a tribunal presided over by Mr. Justice Porter, one of the judges of the King's Bench Division.
'The Aulorney-General, Sir Donald Somervell, in" his opening speech, drew attention to the forecasts made by newspapers and the fact that me surances' had been placed against Kinds. of taxation" which had not eventuated, as well as heavy insur~ tuees against an ineresse in the me come tax and tea duty, He also mentioned that there were strong probabilities that the contents of the Budget were known to high 'oMeials and confidential stenographers early in April, In the course of a review of the Insurance business done, he said that the first business was effected on April 14 through Mr. Alfred ates, while three other transactions were Placed on the instructions of Mr. L. 'M, Thomas, son of the Colonial See-telary.
He added that Mr. L, H, Thomas was a partner in. the stock-broking rin of Belisha & Ca, with which transactions were made by Mr. Bates, who was an old fiend of Mr.
Thomas, the Colonial Secretary, and. hig son, Mr, Bates, the Colonial Secretary, and his son, he continued, tack all stated that, when they met during Easter week, no reference was made concerning what might happen in the Budget, and no disclosures of any kind were made by the Colonial Secretary. They were all ready to hasist the tribunal, he added, Replying to the Attorney-General, Mr, L, M, 'Thomas declared emphatic ally that' he never had the slightest Information from his father concern ing possible Budget changes, and had recollection of discussing the Budget with his father at any tim On Easter Tuesday, he declared, Mr, Bates had instructed him to sell £50,000 worth of gilteedge stocks. At the request of Mr, Bates, he got into touch with Insurance brokers concerning premiums on the risk of a change in the income tax, and later ffected insurances for £4,000 on be-halt of Mr, Bat He added that he now knew that Mr. Bates had also effected insurance
Text read from the printed page and cleaned; old type leaves the occasional error.