WEDNESDAY, AUGUST 20, 1930,
THE QUEENSLAND yearly balance-sheets of the enter
MINE SCANDAL..
What the Commission Alleged.
SENSATIONAL FINDINGS.
prise, and cynical transgressions of the law, even for the pretended benefit of the enterprise.
THE
"I have come to the conclusion, on the whole evidence, that the formation of the company was part. of a design already conceived, of selling mines to the State with the "There were other ways, also, in secret co-operation of Theodore which Rold benefited more than and other suppliers.
Costly Timber.
"A conspicuous example of sacri fice of State intercat, to say noth- ing worse, for the benefit of Reid, was the order giyen by Goddard in May, 1926, to Dunlop and Reid, na Details of the findings of the owners of the Tarzall sawmit,
M'Cormack, through the Instrumentality of Goddard and the State smelters,
"Some of the facts, among others, pointing to this conclusion, are, that no serious attempt appears. to have been made to obtain the necessary capital to re-start the
CHINA MAIL.
ARCHITECTS AT DINNER.
Flourishing Society in Singapore.
for the kind way in which you drank our health just now.
"If I may sound a personal note for a moment or two I would like to say that I personally have always taken
a very great Interest in architecture. I did not say archi- tects, but architecture (laughter) and I feel very proud to belong to the same family which produced BUILDING LAW REFORMS.such well-known architects as Mr. Gilbert Scott, now many years dead; his more famous and brilliant) grandson, Sir Giles Scott, the architect of Liverpool Cathedral;;
Commission of Enquiry into the without calling for tenders for mines on anything like an adequate Singapore Society of Architects and also I think I may, claim rela-}
allegations of corruption by former Labour Ministers of Queensland and others in connection with the Mungana and chilingao mining
leases, are as follow:
timber for Mt. Mulligan scule of production, sawn mine, of the value of £2,500,
"Refd stated in
"During that time Goddard and Reid were associated as partners expenditure required to get the in the building of the large Pacific mines Into proper production was In submitting his report, the
Hotel at Cairns.
£15,000, yet a total of only £3,100] Commissioner said he would.deal! "Not only in this association, was obtained from the State, and with the different subjects in order, but also in his open connection £200 from M'Cormack, of which
The first annual dinner of the
(Incorporated) took place at Raffles!
Theodore in March, 1918, that the
letter to Hotel, on August 2, when the chair tionship with the talented lady who was occupied by the President, Mr. designed the Shakespeare Memorial A. Gordon F.R.I.B.A.
Theatre at Stratford-on-Avon. That is to show you that I take, person- Following the toast of "His Majesty the King," the Presidently a very great interest in (Mr. Gordon) proposing the teast architecture. As a corollary I ne of "Our Guests" auid:—
cepted the invitation of the Singa- pore Society of Architects, which what I said
Firstly, the appointment of Peter with the Argentum Mining Co., and half appears to have been supplied I have the privilege of propos", only serves to stress L. Goddard as manager of Chillagoe, the Fluorspar Mining Co., in which by, Theodore, 200
and some There was-no-conclusive avid Theodore was largely interested. -machinery-from Reid, and-another ence as to what was the determin-: Goddard was openly transgressing £1,500 which Reid said he borrow- Ing factor in Goddard's selection. the provisions of the Act under ed from his wife. There must have been some undis- closed factor in his case sufficient
which he held his appointment, i "With these limited resources
ing the health of our Guests.
"We are honoured to-night by the presence of Mr. John Scott at this, our first annual dinner, and looking
before, that it is a great pleasure to me to be here to-night among you. Signs of Prosperity. and by his sets had rendered his the start was made, and at the end around I am very pleased to see our sident has said, has been in being "Now your Society, as your Pre- to outweigh the apparently higher, office of general manager vacant. of 1920 £3,000`was divided betweengineers well represented. We also to the conclusion that the Society is
kindred profession the Civil En-
for about eight years. I have como "I am satisfied that half of the have a goodly number of contractors in a flourishing condition, because £1,500 paid to M'Cormack went to with us, and in spite of the fact that you are holding an annual dinner. I Theodore.
aome
There could be
no doubt that Reid and M'Cormack.
these facts were known to hla official superiors, Theodore, M'Cor- mack and Jones; but it was not to
they are often the cause of most of
general qualifications of other competing candidates.
There were at least three other applicants whose wider experience, more assured technical equipment,
to expected, perhaps, that these "It is a painful thing to have to our worries, we welcome them to
I think that is one of the signs of and higher personal standing en superiors would show any particu- say of men who occupied high and our table.
prosperity, and a very good sign titled them to more attention than lar concern for his transgressions. responsible positions in the State,
Import Merchant too. they received.
Theodore and M'Cormack, said that they betrayed, for personal friends are also wall represented.
"I am privileged to receive every The Minister for Mines, Mr. the Commissioner, were sharers in gain, the trust reposed in them, Now they have my sympathy. The Journal which your Society pub-
imonth a copy Jones, stated in evidence that God. his transactions, and the former and acted corruptly and dishonour.`do take up a great deal of our valu jishes, and for which, I believe, Mr. of the admirable
dard was selected because of his had himself ignored the explicit ably. Yet that is the invidious able time endeavouring to introduce wilson is responsible as editor. I
general efficiency.
It was impossible to accept that
as a serious statement.
Goddard's technical qualifica- tions, as far as any member of the Government knew, were not greater than might have been acquired by any intelligent foreman smelter.
"Theodore Knew..."
Members of the Government who appeared to have been directly con- cerned in the appointment, Messrs. Theodore, M'Cormack, and Jones knew that Goddard had no
.1
terms of the same Act and expend- ed some 200,000 in defiance of: statutory prohibition.
"I sce Our
duty I feel to be imposed upon me, new materials and to prove that
"I find it impossible to avoid the their particular chop is the best, read it with considerable interest, conclusion that Theodore, M'Cor- and they have in many cases a most to understand. all the technicalities even though I may not be ablo maek, Reid, and Goddard had heen, disheartening time, but they are alof hip roofs, for instance. At the collectively and severally, guilty of persevering crowd, and to them we dishonest exploitation of the State really owe the introduction of the same time the Journal is in the sale to the State of Mungana many new materials used in the Mines for £40,000.
buildinga being erected to-day; in fact they keep us up to date.
"The Singapore
Auditor-General's Silence. "Not the least serious of 'mat tera referred to as charged against Goddard's management is the systematic suppression or misre- presentation of truth in regard to "Lang concealment of Theodore the yearly results of the combined of his interest in Mungana Leases, operations of the smelters and and failure to obtain direct evid- mines, as shown in the yearly, ence of his complicity in the de- balance sheets.'
aign to bring about the purchase, This misrepresentation of the strong as the influences might be. perience in the administrative, economic position and the resulta invested the known history of the economic, or commercial require of the enterprise, I am obliged to whole matter with an appearance ments of the general management Bay, could have been sustained only of indefiniteness compared with of an enterprise such as Chillagoe, by the tacit connivance, or, at least, what it has now assumed in the Mr. Jones, in his evidence, re- the accommodating silence of the light of revelations of Theodore's ferred to the first balance-sheet of Auditor-General." the smellers as at June 30, 1920, which purported to show a profit of £1,375.
ex-
Over A Million Loss. Examination of the whole of the figures, stated the Commissioner, showed there was a loss of £518,462 not disclosed through the profit and loss account. When to this was added the loss disclosed in the balance sheet In the profit and loss
exclusive was quite
of interest,
The Commissioner then proceeded to show by close analysis, that the simplest analysis of the balance, sheet, with an elementary know ledge of the facts, would show that the supposed profit illusory, and that one item alone, cost of ore at grass, purchased but not treated, would have turned the of supposed profit into a loss £3,085,
account,
namely £508,727, it was shown that the total lesa, exclusive of interest, was £1,027,190. If interest was in- cluded, the accumulated loss on the enterprise would be shown as £1,142,323.
Reid's "Relations,"
banking account.
Regular Payments. "When it was established on that evidence, unimpeachable as it is, that Theodore received, promptly and regularly from time to time, one-half of McCormack's share of fruits of the Mungana transaction, the whole of the antecedent facts nequired new significance.
Society of
another indication of the flourishing condition of the Society. If any further indica- tion is required your President has Architects was founded in 1922, and branches are springing up all over mentioned to-night the fact that it was the means of obtaining Regis the country. They have been start tration for Architects in the Straits cd at Kuala Lumpur and also at Settlements, which has had much to Ipoh and Penang, and I hope you do with the improvement that is will see before very long, the forma evident to-day in the majority of our new buildings,
a, Malayan Society of Architects. of our members I take this opportunity of expressing has begun, so perhaps I had better "Gentlemen, the music outside oar gratitude to the
Honorary not continue any longer. I wish to Secretary, Mr. Oscar Wilson for thank you on behalf of my fellow editing the Society's Journal so suc-guests and myself very sincerely for cessfully. It is full of technical your hospitality to-night. If my papers which are very members.
useful to fellow guests will rise and fill their glasses I would like to ask them to drink health, prosperity and success Architects." to the Singapore Society of
"On behalf
the
+*
School Needed.
know is affiliated with the Royal "The Society as you all probably
Institute of British Architects, and "On proof of that cogent fact, during the last four years examina which explains most of the earlier tions have been held here for the correspondence, there is in my Associateship: but opinion only one reasonable
Society The "impossible" person who had, clusion on this part of the inquiry, a School of Architecture attached to of an exclusive West End club, ar- con- would like to see in the near future somehow or other, become a member A more serious matter, and one
and that is that Theodore was a Railles College where local architects rived for dinner one evening, and, bearing directly on the question
party from the beginning to the could obtain the necessary training seizing his napkin, tied it carefully: whether the smelters made a profit Referring to the acquisition of design to bring about the sale to to qualify them to sit for the In- round his neck. In the first year, is the allocation the Mungana leases by Reid, the the State of the mine that every-stitute's examinations. of the proper portion of the total Commissioner said the evidence one concerned knew, or ought to
There was a gaap of horror-from purchase money to the different disclosed nothing wrong or irregu- have known, had no absolute, and obtain uniformity of the Building head walter, determined to deal "One of our main objects is to the other members, and then the) subjects acquired should be made lar about the forfeiture of the probably no relative, value remote Bye-laws in the three Settlements. adequately with the situation, went by the person appointed by the mineral leases, but Dunlop admit- jy approaching the price which it Minister, and that the total pur- ted he told Reid the lenses had be- was intended the State should be may have the local Bye-lawa by shave, air?" he inquired suavely.
At present, a Singapore architect to the offender's table. "Hafrcut or chase money, £701,000, should be come forfeited which did not re-induced to pay for it.. allocated in proportion to the flect very creditably on the Mines
heart, but if he gets a job in valuations.
plain Penang or Malacca he has to learn DI its responsible language, Jones, Minister for a new set of Bye-laws all over
Mines, had neither strength of again Further, Reid's proved relations character nor mentality to valued: 1, Ballways, rolling stock, later with M'Cormack, and, with the situation. He had to ad-I welcome Mr. Hedges and other On behalf. of the parent Society mit that, about the date of the pur members chase, he heard from several
of our Kuala Lumpur people that McCormack had an in-founded this year, yet it has already Branch. This branch was only terest in the Mungana Leases.,
"He would not say that he heard had its first annual dinner!
department officers.
Valuation "Wangle." There were four subjects to be etc.; 2, smelters and ore reduction through him, with Theodore, give and treatment works, etc.; 3, min. rise to a certain amount of suspi ing plant and machinery; 4, all clon in regard to' and of the whole other property acquired under the matter. Act.
A few months after Reid obtain-
1.
1
"When it
comes to
cope
No. 4 obviously. included the ed exemption from labour condi- Theodore was interested. He made
"I want to say that Singapore Einusleigh mine. Only one valuations in October, 1927, he had a no Inquiries as to the fact.. It was architects of to-day have been given tion was obtained, that being No. meeting with M'Cormack, and it his curious conception of his duty great opportunities of improving the was agreed, according to Reid, that as Minister, to use his own words,
architecture of the town. The Im Chillagoe and Etheridge rail- M'Cormack was to have Reid's in- but he was not there to inquire provement Trust with the Govern waya, etc., valuation was £500,500. Corest in the Munganu leases on into the private actions of his colment and Municipality behind it are
Three other subjects were not condition that he backed him that leagues.
planning a new Singapore, and naw valued, and Mr. Theodore, then was to say, to do the financing. "He was apparently willing to roads are being built to provide for Premier, in flagrant disregard of) M'Cormack's Half-Share, subordinate his plain duty to the expansion, and the old shophouses the law, allocated £30,000 only to "At this time," continued the State to a misconceived and are being demolished in the con- No. 2, £1,000 to 3, and £9,000 to Commissioner, "M'Cormack was spurious loyalty to his colleagues. gested areas. Now we architects the Elnasleigh mine, and arbitrarily Speaker and Theodore Was "Improper and Inexcusable." must not be found wanting: The and Illegally instated on the Rail Treasurer, In the Ryan Ministry, "One improper and inexcusable replacement buildings. especially way Department aasuming the bur "On January 25, 1928, Reid feature of Theodore's secret con- must be worthy of the new dinga- den of the remainder, 4661,000, in executed a declaration of trust of nection with Goddard in the pore, and our architects must build respect of property taken over, of one-half share of Mungana mines Flourspar and Argentum mining up a town that future generations a total value of £300,000.
for M'Cormack. At that time the companies was that both companies will be proud of; not only for Ite This the Railway Department reopening of the smelters by the obtained from the Government ad- civic planning but also the architec did, only after protest.
State was being discussed, and the vances in aid of their mining ture for its buildings, and it is very Act giving authority for the open- operations which, conceivably, encouraging to see that the new The only reasonable.explanation ing received the Governor's assent; were influenced by the fact that expansion areas are being developed was that Mr. Theodore evidently on November 14, 1918.··
Theodore bad. a personal interest. on new, lines, and that the old desired to make the capital burden
"In March, 1928, Reid, having Goddard's connection with the shophouse tradition is dying out. that the mines and amelters were got the option from Mungana Mini Flourspar Company became of st!!!
"In conclusion it la our hope that to bear as light as possible. ing Co. to purchase the plant then more questionable propriety when, we shall be able to welcome our on the mines for £2,870, wrote to Inter, other markets having failed, Guests next year to the first annual Theodore, asking for the Govern for the flourspar produce, it was dinner of the Malayan Institute of ment advance of $10,000 towards conveniently discovered that, the Architects." restarting the mines.
material had an important utility
Guarding The Profit.
If an equitable adjustment had been made, It would have rendered any pretence at proft difficult, if, not impossible. and
On a careful review of the whole "Theodore wrote to the Minister value as flux for use in the State circumstances, before and after for Mines asking for favourable smelters.
"Being referred to Cabinet, the £2,800 was granted, and a further $300 Inter.
A
"Designing People."
The Hon. Mr. John Scott" (the) Colonial the appointment, the Commissioner consideration of the grant, urging "It does not require any observa-sald:- MERGAN
Secretary) replying, stated, "I am forced to the con- that there was ample security. tions of mine to Indicate the grors clusion that Goddard was chosen "Reid's application was referred Impropriety, to say the least of it, the Singapore Society of Architectes "Mr. President and members of principally because it was thought to Horsley, Inspector of Mines, of Theodore's and Goddard's secret. The fact that the Society Invited by Theodore and M'Cormack that who reported adversely on the mat connection with the Argentum me to be present at your dinner to- he would be useful in ways and ler.
Mining Company. directions not contemplated by the
night, and then having secured my statute.
"That very secrecy shows that promise to attend, has jumped on they themselves were, conscious of me for my speech, confirms, a slig picion, which I have always had at the back of my mind that architects are very designing people,«L.hops you will not take that to mean that I am ungrateful for your invitation to me to attend your dinner. I am in fact very grateful and it has given the very greatest pleasure to accept the invitation, and to be present with the members of the Society who are here to right
Suppression of Trath." Referring to the conduct of the smelters generally, the Commis Bloner said
"It is quite clear now from sub- sequent disclosures that Theodore, M'Cormack, and Goddard all had,
"While recognising that the substantial interests in the leases, Abomi avowed purpose in restarting the and that Dunlop 'probably slso had smelters and the mines was some definite expectations of bene primarily politséo-Indúst
int from that source
which economic laws may be said "Becret Co-operation."
possess no that does not palikite
Lady: Can I send a telegra
Clerk
Asia
sanction,A company called Mungana
excuse Mines Ltd. was formed for the pur- bere ckless extraysgance in adminis« pose of acquiring from Reid leases tration, unscrúpulous exploitation, beld by him with all the plant *for private: besént, i
consideration of 10,000
બાના ને
I feandiderity also a very great privilege to have been asked to respond, on behalf of the Quests. cross-word puzzle.", for your very cordiki hospitaRY
tch
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