THE PETROL SCANDAL

Dominion, Volume 9, Issue 2733, 30 March 1916, Page 6

THE PETROL SCANDAL

PALM OIL FOR SOMEBODY

FURTHER DETAILS OF NEW SOUTH

WALES SENSATION

By Telegraph—Prcaß Association—Oonyriffht

(Reo. March 29, 9.35 p.m.) Sydney, March 29. It is anticipated that the Royal Commission set np to inquire into the petrol bribery allegations will get to work early next week. Its scope is to inquire into the negotiations and arrangements of the proposals on behalf of the Government of Now South AYales for the acquisition of the works and business of the British Imperial Oil 'Company, and the proposals made by Mr. Henry A. Morgan, as to the price payable therefor; also, if the demands or requests of Mr. Morgan wore prompted, instigated, authorised, or endorsed by any Minister of the Crown or other person.

According to the statement made by Mr. Holman in the State Assembly, Mr. Reed, the Government Superintendent of Stores in Sydney, who was engaged in the negotiations for the proposed establishment of a State monopoly in petrol, and Mr. Morgan, who was retained at ?lr. Reed's recommendation as an advising expert, were approached in Sydney and Melbourne by the managers of the British Imperial Oil Company, and an interview was arranged at which, allegedly, Mr. Morgan explained, in fixing the company's net price, that 1 per cent, was added as his (Morgan's) brokerage,- and an. other 3 per cent., the destination of which was not explained, but which apparently was used as bribery in carrying the scheme through the House, was either to go to the Minister with whose Department the , scheme was connected, or to the Minister, his colleagues, and such members as could be induced to support it. Mr. Wagstaff, the Melbourne manager, who, Mr. Holman said, was at the moment convinced that Messrs. R-eed and Morgan were acting with the connivance of the Government and the knowledge of the Government, had cabled those proposals to his London , principals, who repudiated the whole transaction, sad warned those who were a party to it that the seal of confidence under which it was conducted must be lifted. After further inquiries, Mr. WagstafF, in an intorviow with Mr. Holman, placed the facts before him.

Mr. Holman added: "Tlie appointment of the Royal Commission was made entirely .it the request and upon the initiative of Mr. Griffith. Pending the inquiry, Mr. Griffith, at his oivn request, has been relieved of all administrative work. Mr. .Griffith declared that he was not aware that •anything was the least bit wrong, and his first impulse was to suggest criminal proceedings, but tho steps which have been taken seemed the wiser course."