Ted Theodore

In 1919 Ryan resigned and Theodore succeeded him as premier of what was then Australia's only Labor state government, following the great split in the Labor Party over the issue of conscription in World War I. He was a popular and successful Premier, and soon began to be talked about as a possible federal Labor leader. Important educational measures were implemented, which benefited the handicapped and isolated, adult franchise in local government was introduced, and the upper house of Parliament abolished. Workers benefited from the introduction of a compulsory unemployment scheme, changes in the Safety and Accommodation Acts, and the Profiteering Prevention Act. Improvements in housing were also secured through amendments to the Savings Bank Act, the Workers' Homes Act, and the Fair Rents Act. Agriculture also received much attention through measures like the Agricultural Education Act, the Irrigation Act, the Main Roads Act, and the establishment of an Agricultural Bank, a cold store, a state cannery, a Cheese Pool, and a wheat board. Orderly marketing and controls on price fluctuations were also carried out to develop agriculture, while the Theodore Government also involved itself in the marketing of Queensland fruit produce.[8]

In 1925, Theodore resigned as Premier and stood for the Queensland seat of Herbert in the federal election, but was unexpectedly defeated by Lewis Nott by 268 votes.[9]

Theodore with Prime Minister James Scullin in December 1929

During 1931 Theodore faced the greatest economic crisis in Australian history. The government imported an advisor from the Bank of England, Dr Otto Niemeyer, who recommended an "orthodox" solution, including sharp reductions in government spending such as pensions and unemployment benefits. The radical Premier of New South Wales, Jack Lang, on the other hand, campaigned for the repudiation of Australia's debt to bond-holders in London.

Theodore rejected both these alternatives and proposed instead an expansion of credit to farmers and small business, through the issue of "fiduciary notes" which could be redeemed after the Depression. His Fiduciary Notes Bill was denounced as financially unsound by orthodox economists and the banks. It was eventually defeated in the Senate, which was still controlled by the conservative opposition. Theodore has been described as a visionary proto-Keynesian for this proposal, although it cannot be known what effect his measures would have had on the Depression had the bill been passed.

In March 1931, Lang's supporters in Parliament deserted the main body of Labor. Combined with the defection of Lyons and his supporters a few weeks earlier, this cost Scullin his majority. In November, the UAP and Langites rose to defeat the government on a non-confidence motion, and an election was held in December. Theodore had no base of support in Sydney and he lost his seat to Lang candidate Sol Rosevear. This ended Theodore's political career, although during the 1930s several offers were made to him to return.

He was the only sitting treasurer to lose his seat until Josh Frydenberg in 2022.

Theodore left politics entirely after his defeat.[12] In 1932, Theodore began a business relationship with 25-year-old Frank Packer, the son of newspaper industry veteran R. C. Packer. The duo formed Sydney Newspapers Limited with the aim of acquiring The World, a daily newspaper published by the Australian Workers' Union that was known to be in financial difficulties. For £100, they acquired the rights to lease the masthead and plant for one year. It was subsequently announced that the newspaper would be re-branded as The Star and would be priced at 1d (one penny), compared with 1½d for its major rival The Sun, published by Associated Newspapers Limited. Hugh Denison, the managing director of Associated Newspapers, paid Theodore and Packer £86,500 in return for an agreement for them not to publish a daily or Sunday newspaper for three years.[13]

Theodore invested most of his profits back into Associated Newspapers, buying shares at a low price and selling them later for a 500–600% return.[14] He and Frank Packer subsequently decided to create a new weekly magazine for women, which they titled The Australian Women's Weekly. George Warnecke, an ALP acquaintance of Theodore's, was appointed as the founding editor. The new publication proved immensely successful, and in 1936 Theodore and Packer joined forces with Denison to form Australian Consolidated Press (ACP), which became the new publisher of the Women's Weekly and Denison's The Daily Telegraph.[13] Theodore served as chairman of the new company, but "interested himself only in the financial and administrative aspects" while Packer concentrated on publishing.[15]

In 1933, Theodore learned that gold had been found in Fiji on the island of Viti Levu. The area of interest had been pegged by Bill Borthwick and leased by Pat Costello, both of whom had connections with Queensland. Theodore contacted Costello, an old acquaintance, about the find, and offered to finance further exploration of the area. He formed a syndicate with Frank Packer, John Wren, and Wren's associate Patrick Cody, with each of them holding a quarter stake.[16] Geological findings were initially unfavourable. Eventually three mines were established – Emperor, Loloma and Dolphin – with Theodore as managing director of all three. Their success sparked a minor gold rush, but by the end of 1936 the three mines were the only ones remaining. By 1943 Loloma alone had yielded $10 million worth of gold and paid over $2 million in dividends.[17]

Theodore took a keen interest in the welfare of the miners. He advised the government on the creation of medical benefits and workers' compensation schemes, while the company town had three schools, a golf course, a bowling green, tennis courts, a dispensary and a maternity hospital.[18] Due to his success in Fiji, Theodore was approached by the British administrations in Borneo and the Solomon Islands to lead prospecting expeditions.[18] Neither were successful, and he contracted malaria while in Borneo; upon his return, he was presented with a tabua (polished whale's tooth) and elevated to the chiefly rank of ratu. Theodore took up full-time residence in Fiji, returning to Australia only for business trips and trout-fishing. He had a residence 10 miles (16 km) outside of Suva, and while at the mines lived in a bure.[19]

In March 1939, Prime Minister Joseph Lyons cabled Theodore in Fiji, asking him to return to Australia and co-ordinate the country's national resources for defence purposes. He declined, stating that "in the absence of some emergency involving the national safety, I would like to keep out of politics".[20] In May 1940, the Loan Council offered him the position of co-ordinator of works. This proved highly controversial among members of the government, and Prime Minister Robert Menzies issued a statement explaining that the offer had been made entirely by the Loan Council and would have to be ratified by cabinet.[21] Theodore eventually agreed in February 1942 to oversee the creation of the Allied Works Council, with himself as Director-General of Allied Works. He subsequently established the Civil Constructional Corps (CCC) to undertake construction work requested by the military.[22]

Theodore faced criticism and political interference from his former opponents in the ALP, particularly Jack Lang and Eddie Ward, the Minister for Labour and National Service. He requested that the Department of Labour and National Service provide the CCC with lists of men available for work, but Ward refused to allow the information to be issued. The corps had to resort to telephone directories and electoral rolls in order to recruit sufficient workers. Ward then attacked Theodore for calling up elderly and deceased men.[23] In September 1942, Theodore tendered his resignation to Curtin, citing Ward's lack of cooperation.[24] Curtin relaxed political controls and gave him additional powers, including the ability to prosecute men who refused to work. He rescinded his resignation and eventually left the position in October 1944.[25]

Theodore was a delegate to the Imperial Press Conference in London in 1946. He resumed his work in Fiji and considered moving there permanently. However, the following year he was diagnosed with a serious heart condition. His health declined rapidly and he began handing business responsibilities to his children; he resigned from ACP in January 1949.[25]

After several days in a coma, Theodore died at his flat in Edgecliff on 9 February 1950, at the age of 65.[26][27] His funeral was held at St Mary's Cathedral, Sydney, with the mass celebrated by his friend James Duhig, Catholic Archbishop of Brisbane.[28] He was buried at South Head Cemetery.[7]