THE PETROL SCANDAL

Dominion, Volume 9, Issue 2775, 19 May 1916, Page 5

THE PETROL SCANDAL

}■* I - NO EVIDENCE, OF MINISTERIAL CORRUPTION

«'WIDESPREAD SUSPICIONS"

OF GRAFT

"fly Telegraph—Prees Association-Oonyrtelit , .. _ . Sydney, May 18. jur. Justice Pring has delivered tie findings of the petrol inquiry. He stated there was- no evidence that Mr. Griffiths had been guilty of corniption or any intention 'to 'share moneys , illicitly paid; that Morgan," on three separate occasions, to • Messrs. Black and Wagstaffe, made improper and corrupt proposals, that certain moneys should ha provided for a Minister or Ministers; thai Air. Heed was fully cognisant of these proposals, but had not reported them to his superiors. Mr. Justico Pring onmmented later: "After hearing the evidence, I cannot' help thinking that there is a widespread suspicion that Ministers and officials have their price." -■ Mr. Griffiths states that he will, not resume office until the suspicious circum. stances are cleared up. He has been advised to take criminal ' proceedings. . MORGAN ARRESTED. Sydney, May 18. Morgan has been arretted on a charge of .inciting a conspiracy to bribe. [According to- the statement made by Mr. Ilolinan in the State Assembly, when he proposed that a Commission should lie set up to inquire into the circumstances of this case, Mr. Heed, the Gov"rnment Stores in Sydney, who was. engaged in the negotiations for the proposed establishment of a State monopoly in petrol, and Mr. Morgan, who .ires.retained at Mr.. Heed's recommendation as an advising expert, wero approached'in Sydney and' Melbourne by the managers of the British Imperial Oil •Company, and an interview was arranged, . at which, allegedly, 1 Mr. Morgan explained, in fixing the company's net price, that 1 per cent, was added as his (Morgan's) brokerage, and another J) 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 ttie scheme was connected, or to the Minister, his colleagues, arid such members as could be induced to support 'it. Mr. . Wagstaffe, the Melbourne manager,} who, Mr. Holman said, was at. the moment convinced that Messrs. Seed and 'Morgan were acting with the connivance of the Government- and the knowledge of the Government,' had cabled these propr-sals 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. . Mr. A; H; Griffiths, Minister for Public Instrucion, resigned his •portfolio, pending the result of- the inquiry.] __________ '