The Observer from London, Greater London, England • 4

THE OBSERVER. 4 DECEMBER 1966 How Cadco betrayed the hopes of the jobless TONY McGRATH by PETER DEELEY Wartime food depot at Partridge Green, where Royal Victoria Sausages began. CADG0 GROUP Named after George (' The Cad ') Sanders. 21 CADCO INVESTMENTS Registered in Curagao to handle Sanders's affairs. THE question of prosecuting some of the leading personalities involved in the 1,250.000 collapse of the grandiose Cadco pig venture is still being considered by the Director of Public Prosecutions.

A note appended to the Board of Trade investigators' report on the scheme said that, after considering the circumstances, the Director of Public Prosecutions has decided that there is no action he can take at the present At the moment two of the main figures are involved abroad in unrelated court cases and others of the named men are living out of the country. All the men abroad are in countries with which Britain has extradition treaties. The report made specific allegations against five men Dennis Loraine, now on bail in Los Angeles pending the hearing of his appeal against a six-year prison sentence for smuggling forged dollars; Thomas Roe, who has been in prison in Lausanne, Switzerland, since July 1963 on similar charges film star George Sanders, currently rehearsing in New York for a starring role on Broadway; James McKee, Cadco group accountant, and Joseph Kinsley, an accountant for Royal Victoria Sausages. The Board of Trade investigators recommended that the Director of Public Prosecutions should consider whether criminal proceedings should be brought against: Roe, Loraine and Kinsley for factoring false invoices to obtain 131,000 (later repaid with 'smuggled' money) from International Factor Ltd for meat deliveries which had never been mado; Roe, Loratnb and Sanders for the Romney's Mexican birth may be bar to Presidency from our own Reporter Washington, 3 December GOVERNOR George Romney's legal eligibility to become the Republican Presidential candidate in 1968 is being challenged. A group of lawyers, mainly former supporters of Senator Goldwater, has drawn up a brief arguing that since the Governor was born in Mexico where his father was working at the time as a Mormon missionary he is constitutionally disbarred from ever becoming President of the United States.

They cite Article II of the US Constitution as stipulating that only a natural-born citizen can be President So far as the office of chief executive is concerned, this, they maintain, overrides a revised statute providing that US citizenship is automatically acquired by all children bom outside the US of American fathers previously residing in the country. It looks as if the matter may now have to be put to the test in the Supreme Court Some urgency is lent to the issue by the fact that Governor Romney is currently shown in all the polls not only as the clear favourite for the nomination among Republican voters, but also as the one Republican who at least at the moment out-distances President Johnson in popular support. 11 1 LOCHNESS FOODS CADCO DEVELOPMENT No more than a channel to divert Lost 36,000. CADCO ITALIANO A sausage and vegetable processing scheme. 'The diversion of money to it from Scotland was ROYAL VICTORIA SAUSAGES It marketed the Royal recipe, failed because of 'gross inefficiency and tost' 641 ,000.

1 Pig farming venture of Mrs Mollie Loraine formed after she had left her husband to live with one of his former employees, a van-driver. (ri Benita Home (Mrs George Sanders) deception played upon the Glenrothes Development Corporation to enter into contracts with a Cadco subsidiary (the Development Corporation paid over Roe, Loraine and McKee for false statements' made to the Royal Bank of Scotland (which gave an overdraft of 460,000) McKee and Rob for their part in Cadco's 374,000 application for a building grant from the Board of Trade the most serious aspect of this whole the report comments, referring to fraudulent documents and accounts which had been very materially altered; Roe, Loraine and McKeb for 'misappropriations of money (398,000 was diverted from one VICTORIA WHOLESALE MEATS Front company formed when Victoria Sausages could not get credit. LBK Ltd. Another front purely a name, did not even have a banking Cadco subsidiary to other companies in the group by these three men, says the report). Dishonest criminal fraudulent discreditable untruthful unjustified.

These are the adjectives liberally sprinkled over the ISO pages of the Board of Trade report drawn up by Mr Owen Stable, QC, and chartered accountant Mr Horace Coulson. (The report, published by the Stationery Office, costs 16s.) Dennis Loraine started life in Bristol, the offspring of humble but respectable his father a railway gate-keeper. He has two previous convictions for dishonesty; ono for coaxing money out of a widow, for which he served a six-month prison sentence. Thomas Chambers Windsor Roe, OBE (military), MBE (civil), has a very different background. Well-educated, a former lieutenant-colonel (Loraine was an aircraftman second class) holding a War Office appointment, he is a solicitor, lives in Switzerland and handles personal investment companies registered in Liechtenstein and Curacao.

George Sanders, film star, at one stage Cadco group public relations officer, was not, says the report, an innocent tool in the Yet it is Loraine, rather than Roe or Sanders, who emerges as the architect of the rise and fall of this pig empire. He bought a little butcher's shop, 'discovered' a royal recipe and began business at Partridge Green, Sussex, as Royal Victoria Sausages. From the day it moved into the ex-Ministry of Food depot, RVS 'incurred continuous and heavy losses." Everything about it was calculated to deceive." There was the mystery of the letter from King Edward VII, extremely complimentary to the sausages, Mrs George Sanders (actress Benita Hume) described her inquiries into its existence. 'I said to Dennis one day: "I wonder you had the nerve to produce that document. I bet the ink wasn't dry." He giggled and said: "Wasn't it a shame.

I was in this aeroplane-and it fell out." In the first five months of trading at Partridge Green, RVS suffered practically every known company But Loraine thought the company was ripe for expansion 'and he found a willing ally in the report adds. 'A real rsty of sunshine They looked at Ireland, where Government grants were available for development. That fell through and to did a scheme to build a second factory at Partridge Green. So they turned to the Glenrothes Development" Corporation at Fife, where, a factory site was available. At this moment in February.

1963. un-tne-peg' companies formed or acquired as part of the group expansion plan ,11 II Dennis Loraine George Sanders Thomas Roe CADCO BUILDINGS Ought to have made a substantial profit'; owes creditors gross 813,000. ANGLO ITALIA FILMS Some of the 280,000 lost in Cadco by Mrs. Margaret Elliott went into this company through Dennis Loraine to film Give My Love a Gun but the inquiry found, nobody who had seen the film, CADCO ENGINEERING PROTOTYPES CADCO REFRIGERATION CADCO HAULAGE CADCO LIVESTOCK CADCO CIVIL ENGINEERING CADCO ELECTRICS SUPERFINE FOOD PRODUCTS CRESTELLA FOOD PRODUCTS ANDROMEDA FILMS brake (on conventional tyres): v.t.: To chance a loss of grip: to risk a sliding stop. brake (if on X) v.t.: To stop securely: to have maximum control of stopping: to employ the full area of grip.

out in a statement that although on 26 June 1963 the Royal Bank had expressed doubts about the project, to the Glenrothes Development Corporation, the chief executive of that Corporation had said that he did not think that the Development Corporation could do less than strain every nerve' to. assist those who were going to provide employment for some 2,000 Mr Robertson said it was against this background that the bank ient the money to the building company to help a depressed area. Building workers employed by Cadco appear to have had httJe difficulty in getting other jobs, and Glenrothes does not appear to have suffered unduly by the crash. Instead of processing pork in the Cadco food processing plant on die Queensway industrial estate, women now make micro-circuits and wire baskets for supermarkets. Only the piggeries on the perimeter of the town are still empty.

They are on a care-ami-maintenance basis. When Cadco arrived there were six industrial firms at Glenrothes occupying 250,000 sq. ft of factory space. Since then a further 23 firms, occupying over a million sq. ft and employing 1,600 people there is a prospect of this building up to 25,000 people have gono to tho town.

Only a small part of the Cadco processing plant remains unoccupied. The Development Corporation has now acquired a new industry for the town, but neither its name nor its nature will be revealed until early next year. There is a good deal of anger in the Glenrothes area and among Scottish MPs Mr William Hamilton. Labour MP for West Fife, has indicated that he will have questions for Mr Jay, President of the Board of Trade, and Mr William Ross, Secretary of State for Scotland. Sir John Giunour, Conservative MP for East Fife, is also going to question Mr Ross.

Steps have already been taken by the Government to prevent another Cadco disaster among new town development corporations. Mr Ross has told MPs that in future where development of a non-standard building project is awaiting Government grant, other commitments should be held back for investigation by the Board of Trade advisory committee; and for other difficult cases expert help must be called in by the departments. Thers are three different MlcheHn tyres on this page. Each has a tread designed for a particular, specific, motoring In construction they're all basically the same. They're all fiat-looking tyres.

Flatter than conventional tyres are or ever could constructional progress that affects your braking very much. When you brake on an An tyre is strengthened, and made supple, by a set of radially-laid plies. It also has a steel-braced tread support that is totally independent of the wall plies totally unaffected by wall movements. And this tread, because it's braced, can't distort; its blocks can't bunch-up. The whole working surface of an tread is supported to stay firm and fully open; to bittrdown hard into the road.

That's grip. The sort of all-over grip that takes much of the sliding hazard out of And mil on set of plies circles the wills then continues on right underneath the tread of the tyre. Which means it has two jobs to do 1. strengthen the walls which, ideally, should be as supple as possible. 2.

steady the tread which, ideally, should be braced to grip as stably aspossible. Result: Compromise walls that are stiffer than they ought to be a tread less stably supported than it ought to be. How all tyres are made All tyres are built on a totally different principle. Instead of having just one all-over set of general purpose plies, they have a. separate wall plies b.

a separate tread brace. Wallplies These have only the one.job to do. To strengthen the walls. Not to support the tread. Just to strengthen the walls.

So the plies of an tyre, instead of being thickly, stiffly, crisscrossed are laid radially to follow the natural profile of the tyre. A construction which gives an tyre very strong, but very supple walls. (Hence, that flattish look). Tread bract This is something the conventional tyre just doesn't have. A specific tread support.

A steel-braced support totally independent of the wall plies and put there to do one job and one job only: to hold die tread stable and flat on the road with the tread partem fully open. Result: Uncompromising efficiency: Result: Very supple walls and a very stable tread. When you brake on conventional A conventional tyre, because it's strengthened by a dense mass of criss-crossed plies, has fairly stiff walls. The' Only support its tread has is a circular continuation of these wall plies. This means the tread must be affected by every movement the walls make.

It also means that, since the conventional tyre has no independent tread brace, its tread blocks can distort and bunch-up as they meet the road. And when a tyre has bunched-up blocks it can't be gripping as effectively as it should. braking. How a conventional tyre is made No tyre is made out of just rubber. Rubber, in itself, is neither strong enough, nor adaptable enough to measure up to modern driving standards.

So all tyres have a strengthener built into them. Look at the diagram below and you'll see that what strengthens the walls of a conventional tyre is one set of textile cords, embedded in rubber, arranged in criss-crossed layers, eenerallv called 'nltc What two years at Welbeck College can do More about Fill in the coupon for a free book on all the supple secrets of tyres. Or ask your garage man for 8 copy. To Technical Information Michelin Tyre Co. I6b Brompton Road, S.

W.3. A book, please, on all the supple secrets of X. Lieutenant Peter Hill (First Class Honours, Cambridge) talks of what a 16 year old could gain from the Army's 'Science Sixth' no tread brace MICHELIN criss-cross plies rather stiff walls tread braced radial plies CONVENTIONAL very supple walls 254,000 borrowed money-rffluch of it injected by Roe from die personal Investment companies I he handled was irretrievably sunk into Partridge The firm had nothing to spare in Scotland for any project; yet they called a Press conference in Edinburgh (sausages were the edible part of the free hospitality) in May the same year to announce a 3 million investment in Glenrothes. It was 'a real ray of said the chairman of the local Board of Industry a newspaper headline declared '3 million project means work for If the downfall of the Cadco scheme is largely a personal grieving over lost wealth; here it touches the community. The report reflects the promise of a great industrial complex bringing job to a.

part of Scotland suffering from a serious unemployment problem was greeted' with Here, more than money hope was betrayed. In November 1963 came the Italian vegetable and pig-processing project; again in a Government development area where die Italians would provide four-fifths' of the capital. Money was ploughed into the Italian subsidiary from the Scottish venture. But much of.it found its way into financing a film in Germany. The Italian scheme was not even legitimate, says the report Loraine had an apartment In Rome, a chauffeur for his car, he entertained on a considerable scale and he talked to Mrs Margaret Elliott, a successful business woman, of the 4 million loan he was getting from the Italian Government and his film company.

Loraine defrauded and largely ruined her, the report says bluntly. She lent him 272.000, a further 8,000 after the bubble had burst and after the official inquiry had begun die Board of Trade investigators say they learned that Loraine was trying to borrow another 1 0,000 from her. Tome hell or high water', Perhaps these comments about Loraine sum up the Great Sausage Fiasco: Roe: As a negotiator-salesman, he is, a past Mr Philip Marsh (who introduced Roe to Cadco): 'Loraine was an absolutely impossible man and any attempt to control him on the spot was almost doomed to failure: to try and control him from Lausanne was a hopeless Mrs George Sanders (talking about the sausage recipe that fell from the aeroplane): 'The villainy in question was that of a young man, a youngish man who had a wonderful product, that he was going to get over come hell or high water I thought he had a lot of And the Board of Trade investigators' conclusion: 'Those who soon recognised him for what he was were themselves people of obvious integrity; those who were impressed by him lacked A number of public bodies in Scotland were anxious for an industry to come to Glenrothes with the prospects of employment. This enabled the Cadco project to get the necessary support. This is underlined in a statement issued by the Royal Bank of Scotland which advanced 460,000 to the Cadco group.

The bank's general manager, Mr Q. P. Robertson, points "I went to Welbeck when I was 1 6. The idea of 'Sixth Form' Colleges is in the news just now, but few boys and their parents know that in Welbeck the country has had just that for a good many years. You'd call it a Science Sixth, really, I suppose anyway it got me into Sandhurst with pretty good marks, and gave me a good grounding in what I needed to know to win a place at Cambridge to read engineering.

I was very happy at Welbeck, and the building's marvellous. There's no doubt that boarding school gives you a flying start in the Army, so Welbeck is a terrific advantage for anyone who hasn't been to one before." Lieutenant Hill might have added that he won the Queen's Medal at Sandhurst, and that his Cambridge degree is First Class Honours in Mechanical Sciences Tripos. Welbeck Colfege can be the first step in 3.fMeUlX'-'. New Michelin XAS New Mich tue-gnpping zig-zag tread for family motoring, the first and only radial tyre with an asymmetric deep, self-cleaning, winter-type tread for tread. For high performance cars.

the countryman. the process of turning a schoolboy into an Officer in orie of the Army's Technical Corps. It is followed by 2 years as a cadet at Sandhurst, and, for those qualified, a degree course after being commissioned. Boys born between 1st July 1 950 and 1st December 1951 can enter Welbeck College in September 1967. They must be up to pass standard in GCE 'O' level (SCE in Scotland) in Mathematics, Science (preferably Physics), English Language and some othersub-jects of which Chemistry and a foreign language are desirable.

Parents may be asked to make some contribution to expenses, according to their means, up to 60 per term. There are virtually no extras. Last application date for this entry is 1 0th January 1 967. For complete Prospectus write to: The Bursar, Dept 815, Welbeck College, Worksop, IMott3. YB2HEB.nrJ THE WORLD'S LEADING RADIAL TYRE.