Maudling's Fall

The British Conservative Party's "class of 1950" was perhaps the most impressive collection of young Tories ever to enter the House of Commons at one time. In its ranks were Edward Heath, Iain Macleod, Enoch Powell and Reginald Maudling, who together were to hold most of Britain's top offices of state during the next two decades. Yet now, only two years after the Conservatives' return to power, Prime Minister Heath has lost the services of all three of his longtime colleagues. Macleod died in 1970, shortly after becoming Chancellor of the Exchequer. Powell was excluded from the Cabinet because of his racist views. Last week Maudling, 55, certainly one of the ablest members of the 1950 class, fell. He resigned abruptly as Home Secretary and Deputy Prime Minister, the innocent if disappointingly naive victim of a private business scandal.

Maudling's resignation came as Britain's Metropolitan Police were about to investigate the affairs of a Yorkshire architect named John Poulson, who declared himself bankrupt last year with debts of $595,000. During the bankruptcy proceedings, Poulson said he had paid more than $800,000 for "services rendered" to two Members of Parliament, four government officials and Maudling.

Maudling's business dealings with Poulson appear to have been perfectly legal. While serving as an opposition M.P. in 1965, Maudling became board chairman of one of Poulson's many companies. He accepted no salary for his services, but instead arranged that Poulson contribute $52,800 to Maudling's wife's favorite charity, the Adeline Genee (ballet) Theater. In addition, Maudling accepted $1,837 worth of company shares for his children. What precipitated Maudling's resignation last week was not the nature of his dealings with Poulson but the fact that he could not properly remain as Home Secretary while the police under his jurisdiction were delving into Poulson's affairs.

No Rejoicing. Many Britons were dismayed, however, at the poor judgment Maudling has sometimes shown in business matters. In 1969, he became director and, for a few months, president of a Bermuda-based investment company called Real Estate Fund of America. The company was run by an American named Jerome Hoffman, who is currently serving a two-year prison sentence for fraud in the U.S.

TIME Correspondent Honor Balfour writes: "There has been no rejoicing, not even among the government's opponents, over Maudling's resignation, for he is the most popular man in politics. He is honest, sincere, good-tempered, a genial and competent parliamentarian, tolerant and broadminded, yet capable of tough action where necessary, self-confident, a highly civilized man and a most experienced Minister." Colleagues sometimes joked that "Reggie's only trouble is that he is still in love with his wife," meaning that he had remained more wedded to his wife Beryl, a former dancer and actress, than to his job. But between 1952 and 1964 Maudling held seven ministerial posts, including Chancellor of the Exchequer, and in 1965 he was narrowly defeated by Heath for the party leadership.

Maudling's subsequent relations with Heath have been described as being occasionally on "iceberg to iceberg" terms. But Maudling remained loyal to the party and its leader, and in 1970, after the Tories' return to power, accepted the politically sensitive post of Home Secretary. He has a widespread reputation for conciliation and consensus, and his easy manner provided a welcome contrast to Heath's gritty obstinacy. Within the Cabinet Maudling argued against certain Heath policies. He favored wage controls and a more strenuous fight against inflation, and he opposed Heath's policy of direct confrontation with organized labor. But in public he staunchly supported the Prime Minister. Ironically, his resignation came at a time when Heath is being forced by events to tack in the direction of Maudling's line on those issues.

Heath accepted his resignation with genuine regret, describing it as a "bitter blow to us all." Maudling may yet return to the Cabinet once the Poulson investigation is completed. But the whole affair has probably put an end to whatever chance he still had of becoming Prime Minister. That is a pity, for, as the London Times noted, "as a businessman Mr. Maudling was often mistaken, but as a politician he had the useful habit of often being proved right."

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