workers press

The Socialist Labour League's press: The Newsletter, Workers Press, Labour Review and Fourth International, 1952–1973. A searchable archive of the scans

MEANWHILE BANKRUPTCY COURT IN WAKEFIELD...

By Alex Mitchell

Workers Press no. 877, 25 September 1972 · scan page 7

Topics: Tory government, Labour Party

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The cast in an amazing court room melodrama will gather in the Yorkshire town of Wakefield today. Shortly after 10 ơ'clock the county court in bankruptcy will go into session.

Into the witness box will step John Garlick Llewellyn Poulson, a bankrupt architect. After the formalities the QC for the trustees in bankruptcy, Mr Muir Hunter, will resume the relentless interrogation of his adversary.

In the four public sessions held since July, Poulson has given an extraordinarily graphic and frank account of his business activities, which at one time made him the head of the largest architectural practice in Europe.

While Poulson has been describing the rise and fall of his empire. the political reper*felt cussions have been throughout the country.

Reginald Maudling, deputy prime minister and Home Secretary, resigned while Edward Heath sent in Sco tland Yard's fraud squad to in vestigate the Poulson affair.

Heath explained to House of Commons that Maudling had thought it was inappropriate for him to stay as Home Secretary with Commander James Crane, head of the fraud squad, hunting through the files and accounts a group of companies in which he had played such an important decision-making role.

Although the Tory press wailed and screamed that their •Reggie' had been hounded from office, it is now clear that their can be no return to power for Maudling in the foreseeable future.

It was announced only a few days ago that Maudling will not attend the Conservatives' annual conference at Blackpool next month, the first he has missed for decades. Maudling was chairman of Poulson's overseas company and a director of two others; at one stage almost the whole Maudling family-Mrs Bery! Maudling, daughter, Caroline, and son, Martin-were shareholders in various subsidiaries.

After the Commons heard the Prime Minister's statement there was a series of unctious and sick-making speeches from the Labour Party benches. The Labourites extended their sympathy to Maudling, and James Callaghan even suggested that perhaps the House was acting too quickly in accepting his resignation. In Callaghan's view there seemed no need at all for Maudling to get out.

It is not difficult to see why the Labourites were so over-generous with their understanding. Because if the hierarchy of the Tory Party nas important connections with the Poulson case, so too has the Labour Party.

Take T. Dan Smith. During his evidence Poulson said that more than £155,000 in various fees were paid to Smith.

Mr Muir Hunter had to press Poulson for an explanation of Smith's relationship with the companies. Asked if the vast sum was 'a gift', Poulson replied: 'Well, I haven't got any details, and never have, of any accounts for him.' Hunter: you are under obligaof this rchitect running an enormou and idea as to purpose and very even year, to a man seven years, Ra hat no as Mt Dan Smiry doim the Poulson organization' Yes?

I can't think of any sir, I just can't. It's по good.

Hunter: Look, know this man, not? You 1969.

the ship the drink ran gesting?

Poulson: No.

Hunter: Poulson, you not doing yourself justice The vala to Mir wa Poulson: I see that now, sir Hunter: You mean that you sort spending money, as the saying is, like for?

Poulson: there is no Hunter:

money to Smith for no that vou can re like to that. was a gifi as well? were gifts?

oulson: No. no lunter: Not gifts? You wil not ols on: Weh, I denso Know what to sir. iust con't know what were except ridiculous.

at one stare thought that Dan you to anc said: 'It didn't work out, never got anything out of it Nothing and yet you any other reason to Mr Poulson? (Poulson's reply was inaudible)

Hunter: I think the witness is not feeling very well. Would this be a convenient moment to rise, sir?

The registrar: It would certainly be a convenient moment to rise.

Poulson was taken to a local hospital where his' condition was diagnosed as 'severe shock' No doubt there was shock also in the top echelons of the Labour Party, to which T. Dan Smith had easy access for such a long period.

At the height of his career Smith was appointed by Harold Wilson as chairman of the North East Planning Council and in the 1964 and 1966 General Elections he was a public relations consultant to the party.

At various times in the 1960s it was rumoured that, like Frank Cousins, Smith would be drafted into the Labour government. Although this remained an unfulfilled proposition, Smith enjoyed the closest reiations with the Labour leadership and it was said that 'Mr Newcastle' had a 'hot line' to Wilson at No 10 Downing Street.

In a nine-day trial at the Old Bailey last year Smith was acquitted of corruption charges involving the Labour-controlled Wandsworth Council. The leader of the Labour group, Alderman Sidney Sporle was given six years in a separate trial.

Smith, who protested his innocence throughout the case, said afterwards that he would return to the north-east to serve the people of the region.

The other leading Labour figure linked with Poulson is Alderman Andrew Cunningham, the Newcastle - based regional officer of the General and Municipal Workers' Union.

Since 1967 Cunningham has been on the 28-man National Executive Committee (NEC) of the party which is headed by Wilson.

The NEC is the highest policy-making body in the party and Cunningham served as chairman of its all-important finance committee.

Apart from being a union bureaucrat, Cunningham is a man of many parts. For instance he is chairman of the Newcastle Airport Committee and chairman of the Tyneside Passenger Transport Authority -both of which employ members of his union. So he shares the distinction of being both union representative and boss at one and the same time. A fervent spokesman for law and order, Cunningham also heads the Durham Police Authority. Last week at the quarterly meeting of the police authority two attempts were made to have him removed from office because of the 'bad publicity' surrounding his connections with Poulson.

But chairman Cunningham ruled the resolutions out of order and then stormed out of the meeting.

The resolution seeking Cunningham's removal was made by a local magistrate and backed by 14 other members. Afterwards Cunningham said: *I have nothing to say. Consult your lawyer.' (?)

If the police authority is concerned about Cunningham, then it can be stated that his union, the giant G&MWU, isn't.

At the most recent meeting of the regional committee a motion was unanimously passed voting complete confidence in their local officer. The passing of the resolution The cast of Poulson people. Top: Mr and Mrs John Poulson. Above 'Mr Newcastle' T-Dan Swith. Left: recently resigned Mr Roninald Maudlina. Riaht: Mr and Mrs Andy Cunningham. wasn't without a touch of the bizarre. Instead of holding the meeting at the union headquarters in Newcastle, members of the committee were ferried in cars to an unknown destination to conduct their deliberations.

There have been demands that Cunningham and his wife. Freda May Cunningham (Mrs Cunningham is a local magistrate), should give up all their public appointments.

Their links with the case are considerable. Crossexamined by Mr Hunter, Poulson admitted that Mrs Cunningham was employed in his office as an adviser on interior decorating although she had no training in this work; Andy Cunningham drew a salary from the Dan Smith organization; and there were records that the Cunninghams had been on two holidays abroad paid for by Poulson, the one to Estoril, Portugal, costing £256.

When inquiring about Mrs Cunningham's job, Mr Hunter was at his most waspish.

Hunter: To be quite frank about this, was it a sort of sinecure that you created for Mrs Cunningham?

Poulson: No sir.

Hunter: Just let :290 Mr Poulson, the date. According to Mrs Cunningham, she was so employed for the period October 21, 1969, to January 31, 1970. Well now, in June 1969, which you will remember, you were informed by your three senior assistants that you were insolvent. Do you remember?

Poulson: Yes, sir.

Hunter: And then during the rest of the year there were increasingly feverish attempts to restructure the business?

Poulson: Yes, sir.

Hunter: And, of course, there was a great shortage of money, was there not!

Poulson: Yes, sir.

Hunter: At a time when the whole business was running into the ground •• • you thought fit to employ a retired schoolteacher and the wife of an alderman, as an administrative assistant and adviser on interior decoration — is that what you are saying?

Poulson: Yes, sir.

When the last hearing on August 7 was being wound up, Poulson promised the court that he would spend the adjournment sifting through his remaining papers to try to find answers to some of the more baffling aspects of the affair.

The four public sessions held so far have been expensive for the ruling class—one deputy Prime Minister has resigned, two senior civil servants have been suspended, a member of the Labour Party's NEC is being called upon to resign from all public posts, a leading Tahour nawer-heaker PUWEI UIVAEI is placed under a cloud, two MPs, Norman Roberts, Labour MP for Normanton, and John Cordle, Tory MP for Bournemouth, are called upon to account for their business interests.

On previous form, will be more news from Wakefield today.

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