THE PETROL SCANDAL

Dominion, Volume 9, Issue 2739, 6 April 1916, Page 5

THE PETROL SCANDAL

ROYAL COMMISSION. OPENS

CASE FOR THE CROWN

2/ TelegiapE—Press Assoolatlon—Copyright

(Rec. April 5, 10.86 p.m.)

Sydney, April 5. The Royal Commission has commenced taking evidence on the petrol allegations. According to the opening address by counsel for the Crown, Mr. Morgan was represented to have said that in any installation | under a scheme for the nationalising of the petrol industry it would be necessary to add something between £10,000 and ; £15,000 for the Minister, and provision would also have to be made for between £2000.and £3000 for Mr. Morgan himself. . . [The scope of the Royal Commission is to inquire into the negotiations and ' arrangements of the proposals on be-/ half of the Government of New South Wales for the acquisition of the works "ind business of the British Imperial )il Company, and tho proposals made )y Mr. Henry A. Morgan, <js to the" pee payable, therefor: also, if tho de(lands or requests of Mr. Morgan were 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 Gov- ■ eminent ■ Superintendent of Stores in Sydney, who was engaged inflie negotiations for the .proposed establishment ■ of a State monopoly in petrol, and Mr. Morgan, who was retained at Mr. Reed's recommendation as an advising expert, were approached in Sydney and. Melbourne by the managers of the Bri- ; tish Imperial Oil Company, and <uv interview was arranged at- which, allegedly, Mr. Morgan explained, in fixing the company's net price, that 1 per cent, was added a? his (Morgan's) brokerage, and another 3 per cent., the destination ■of which was not explained, but which apparently'was used as bribery fti 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. TVagstnff, the Melbourne manager, ■who, Mr. Holman said, was at the moment convinced .that Messrs. Reed and Morgan were acting with the connivance of the Government and the knowledge of the . Government, had cabled these to hi* London , principals, who repudiated the whole transaction, and warned those who ■ were a party to it that the seal of, con- ■ fidence under which it was conducted must be lifted. After further inquiries, Mr. Wagstaff; in an interview with Mr. Holman, placed the facts before him.l