The hundred thousand dollar kickback
The fact that Liquor Control’s Chief, John Meaney, had a deeper involvement than investigators had first thought and his role as “bagman” became apparent as the evidence accumulated.
Evidence surfaced of his involvement in negotiating kickbacks with companies doing business with the Newfoundland Government. In December 1921, he accompanied Squires to Montreal to meet with a top official of the British Empire Steel and Coal Company (BESCO).
The official wanted: a reduction in export taxes, the government to withdraw its demand for installation of blast furnaces, and an adjustment in time requirements on government contracts.
In a separate conversation with Meaney, a contribution of $100,000 to Squires was suggested.
The official refused after claiming $50,000 had already been paid. When Meaney passed this information to Squires, the Prime Minister packed his bags and returned to Newfoundland.
During January 1922, the official agreed to advance the money and the Bell Island Mining Company got the agreement it wanted.
Squires had promised Meaney the top position with the Liquor Board.
When it seemed Squires was dragging his heels, Meaney contacted Miss Jean Miller, asking her to remind Squires of Meaney’s role in negotiating the $150,000 contribution to Squires.
Miss Miller telegraphed the message in code. Sir Richard ignored the message.
Several coded messages between BESCO officials and their accountant on Bell Island followed.
A particular damning one for the Prime Minister was sent by a BESCO Vice-President to their accountant at the Bell Island office on March 29, 1922.
It stated that the company would advance payment when the promised concessions were legislated.
Sir Richard Squires was later convicted of larceny of $20,000 and fined.
He was free to return to politics. Soon after, he was behind a new city newspaper The Globe which opposed the administration of Walter Monroe then in office.
Hollis Walker left Newfoundland feeling that justice was not done in the case.
Walker was convinced that Squires was a crook.
As for Squires, he insisted on his innocence and claimed that Hollis Walker had totally misinterpreted what had taken place.
On March 24, 1924, the Evening Telegram observed in its editorial:
“The lust for power has ended in a climax which has no precedent in the history of England’s Oldest Colony and which is more in keeping with the political records of a Spanish-American Republic than with those of a British Dominion. Our political system has been shaken to its base; our departmental system has been condemned.”
Next week-Riots and Shooting on Water Street