THE PETROL SCANDALS

Dominion, Volume 9, Issue 2744, 12 April 1916, Page 6

THE PETROL SCANDALS

REED AND MORGAN GIVE EVIDENCE ' GRAFT CHARGES DENIED V By Telegraph—Press Asftjoiatibn—OopnJcM (Bee. April 11, 9 p.m.) Sydney, April 11. Before the Petrol Inquiry Commie* sion, Mr. Heed (the Government Engineer), oros6-examined, said that he had suggested buying out the BritishImperial Oil Company as a good business proposition. When the engagement of Morgan was discussed, Mr. Griffith (Minister of Education) said that whatever 'was done ho wanted, him (Reed) to be careful of anything leading to , the idea of graft. Witness was under the impression that Morgan looked for. an appointment, if the negotiations were successful, as liis remuneration. ■ Morgan, examined, denied that in. anything he had dene in connection with the scheme he had ever shared, or. agreed to share, or give any money to a public' servant or member of Parliament, nor had he ever said anything about any amount having to go to a Minister or Ministers. He did mention £3000 for his own commission, as the Government was not paying him' anything. He was acting merely as a.' broker. [According to the statement made by," Mr. Holman in the State Assembly, Mr. Reed, the Government Superinten-. dent of Stores in Sydney, who was engaged in the negotiations for the pro-' posed establishment of a State monopoly ; in petrol, and Mr. Morgan, who was retained at Mr. Tteed'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 another 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 cither to go to the Minister with whose De-' partment the scheme was connected, or to the Minister, his colleagues, and' such members as could bo induced to' 6upport it. Mr. Wagstaff, the Mel-' | bourne manager, who, Mr. Holman said, was at the moment convinced thatMessrs. Reed and Morgan were acting - with the connivance of the Government and the knowledge of the Government, had cabled these proposals to his London principals, - who repudiated the whole transaction, and warned those who were a party to it that the seal of. confidence under which it was conducted must be lifted.!