ANOTHER SCANDAL IN AUSTRALIA.

Hokitika Guardian, 24 December 1918, Page 2

ANOTHER SCANDAL IN AUSTRALIA.

EXTRAOR DIN ARY DETAILS. SYDNEY, Dec. 5. Enquiries are at the present time proceeding into charges which, if proved, will gravely compromise Mr Jensen, a member of the Federal Government. They have to do with the purchase by the naval authorities of the Shaw wireless plant. Another ugly scandal arises from charges made in the Senate last week by Senator Pratten, and which are now also under investigation. Boiled do\vn, Senator Pratten’s accusation amounts to this: Before the war, all tin scrap in Australia —mostly the waste from the factories —was bought by the Germans at about £2 per toil. When war broke out, the scrap accumulated. A factory for the treatment of the waste was started in Sydney. In 1917, a company for Hie treatment of scrap tin was formed in Melbourne, and registered on May 26th. Five hundred of the 8000 shares issued were held by Colonel J. N. 01dershaw, who was also reported to be Chairman of directors. Colonel Oldershaw was a Commonwealth official in a high position and drew £6OO and allowances per annum. There was far more tin scrap in the Commonwealth than could be used by the Australian de-tin-uing factories and an accumulation piled up, A couple of years ago, the Japanese began to make enquiries, and finally offered £4 15s per ton f.o.b for the metal A large contract was made. How over. Sir John Higgins, chairman of the Wool Central Committee and Metallurgical adviser to the Government was inchiced, probably by a laudable desire to protect new industries —to place an embargo on the export of tin scrap. Thus arose an extraordinary position, ihe owners of the tin could not sell to the Japanese aud the two Australian factories could not absorb half the supply. Much of it was sent to the rubbish tips. Other owners offered the scrap to Colonel Oldersliaw’s company at- £2 15s per ton, but this was refused. Instead, the "owners were asked to band ovor tho metal to the company, they to receive 25 per cent, and the factory 75 per cent, of the profit, and tho owners to pay all the working costs. Senator Pratten called it an “impudent and outrageous proposal,” and said tho whole proceeding had cost Australia thousands of pounds besides constituting a grave scandal in so much that Government institutions wer used to holster up a private enterprise at the public expense.