THE PETROL SCANDAL

Dominion, Volume 9, Issue 2740, 7 April 1916, Page 5

THE PETROL SCANDAL

"ILLICIT" COMMISSIONS . "SOFTENING" OPPOSITION CASE FOR THE CROWN. By Telegrapt—Press Association—Copyright Sydney, April ,6. At the Petrol Commission, the Crown counsel, in opening his case, detailed how Cabinet had instructed Mr. Griffith, Minister of Public Works, to obtain the necessary information and submit a scheme for. the nationalisation of petrol. Mr. Reed, then Superintendent of Stores, investigated the various schemes, and subsequently Mr. Griffith authorised Mr. Morgan to .'act as bis agent through Mr. Reed. Coming to the negotiations for the purchase c f thfi British Imperial Oil Corapanv, eouiisti said that in conversation with.the Syd ney manager of tho company, Mr. Morgan was represented as having said that, they could lest assured that tho c<.nv Dany which sprung tbo higlm.it illicit commision would bo .thy. cue to get the supply. Subsequently'there was a meeting at Melbourne between Rood and Morgan and'the Sydney;and';Melbourne managers of the company, when the question of commission was raised Reed said it did not intorest him.- At a second meeting Reed raised t) ; e same objection, but stayed by request. He pointed out that certain schemes would have to bo refused, and somebody placated, and that besides there was- a chance of opposition in Parliament, which could be softened by.,a. suitable provision. Counsel added that no infor- j mation as to the negotiations with tho British Imperial Company or the breaking off of negotiations had been communicated to Cabinet or to any individual member c-f the Government. Tho Attorney-General (Mr. Hall) gavo evidence as to being put in possession of certain facts;and documents. The Melbourne, manager of tho British Imperial Company had informed "him that the commission asked for vould amount to £32,000 yearly, which on a-ten years' contract, meant £320,000. Pressed for his reason for thinking this money would go to Ministers, the mainr.er. answered largeness of the .commission made him think- fo.-~ His- impression was that all the Ministers were involved. OIL COMPANY'S MANAGER GIVES EVIDENCE INTERESTING CORRESPONDENCE. (Rec. April 6, 9.55 p.-m.)-- '"... - Sydney, April 6. _, Mr. Wagstaffe, manager of the.: British Imperial Oil Company, examined, detailed the overtures to Morgan to take over the company's interests, and .the proposals Morgan made regarding the payment of commissions referred to yesterday. (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 aou' 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.) A letW (producecfj from Mr. Wagstaffe to his. London board, placing the scheme before them, ; was read? ' "It said:— "We are given to, understand that there are some members of tho Government of New South W r ales who ate out for spoil. In the event of the Government tak- ' ing up the matter seriously there will be various sundry parties who will expect substantial remunera- :. tion." . ' '■' In a second letter, Mr. Wagstaffe wrote:— •>. "The whole business seems to be a fair sample of Tammany practice. I regret having had to place before _ you such a proposition emanating from a responsible Government. However, wo may mention that tin s samo Government has concluded a ten million sterling contract with , the- NortonGriffiths_ Company, and it is openly mentioned that the Government Ministers and officials' got' about • £65,000 as their share of tho' spoil. Wc#are convinced that the present petrol proposal was not propounded for tho benefit of the State, but more for tho purpose of' securing a very nice income- for-some of them for years to come, whether in power or not." Mr. letter "to "Mr., Wagstaffe, authorising Mr. Morgan to act in the negotiations on'his behalf, was also read.