“GRAFT” INQUIRY.

Hokitika Guardian, 15 May 1928, Page 3

“GRAFT” INQUIRY.

MYSTERY OL £IO,OOO EXPOSED

(Australian Press Association.)

SYDNEY, May 14, Before the Royal Commission inquiring into the civic administration to-day, Air W. A. Holman (ex-Premicr) appeared ns Milling's counsel. All Holman requested permission for his client to have access to the material dates associated with the Babcock-A\ ileox tender for the Bunncrong, Power House plant.

Mr Shand (counsel for the Crown solicitor), surveying the circumstances in connection with the tendering, declared that when the tenders were due to come before the late City Council, the Sydney manager for the BabcockW'ilcox firm was informed that his company would have to pay ten 'thousand pounds to get the contract, eight thousand being for an Alderman and two thousand for Alaling. Air Shand, counsel Who is asisting the Commissioner, sAid in collection with the Bimiierotig power house that in Sontember, 1925, Air Miickav (General Man ager of the Electricity DepUrtnveiit of the City Council) recommended that tenders he called for the supply of steam raising plant at the power house. The tenders closed in February. 1920. and later the time was extended to fourteen days. The tenders. were then opened, and were referred to Air Alaling, as Air Afackay was abroad. Afr Alaling recommended t-hp acceptance of (paheoek-AVilcox’s tender for £022,877.

Continuing, Afr Shand said that it was proposed to prove that-, some time hofoAe tiie tenders were opened, Air Alaling suggested to Afr Arnett, the. mu linger of Bii.lKViok-Wileox’s. establishment. that lie take eight alderman to see their works after the tenders were opened, Air Alaling rang Air Arnott up and told him that the aidermen wanted £7,500 ns a condition of the acceptance of his firm’s tender. Afr Arnott protested, and lie was told that he would not get 1 1 is tender accepted unless the money was paid. Later on Alderman Holdsworth telephoned Mr Arnott that he wanted one thousand sterling. Air Arnott then interviewed Afr Afaling. who said: “Do nut deal with Holdsworth. He will get liis share out of the rest.” Afr Alaling added that the Internationa] combustion Company, which also tendered , had paid fifteen thousand into a Trust Account for the purpose of getting the tender. The Aldermen wanted ten thousand, of which two thousand was to go to Afr Alaling, and eight thousand to the Aldermen. Afr Arnott- then agfeod to pay this amount, and Mr Alaling >tiid that if the money was to tonic Imm abroad, six hundred sterling would have to he added as expenses. .Mi* Shand said Air Afaling interviewed a man mimed Albert, who was a driver with whom he was friendly, and had eon tracts from the City Council. Alaling asked him if he would mind if certain moneys which wore

coining to him (Afaling) should pass through his (Albert’s) account, instead of his own. Albert was called .suddenly to .Melbourne, and said that he would he unable to adjust his account, hut he arranged with a friend named Buckle to it through his (Buckle’s) account.

Afr Shand continued that Scotland Yard was then comniim ieated witli. and had ascertained that £IO.GOO had been sent by Babcock—-Wilcox of London, to a trust account in Sydney from which Albert bad banded over to Afaling CO,GOO. and a lady clerk in Albert’s offieo passed over £4,000 in instalments, making a total of £lO.GOO. Air Shand detailed the manner in which the money was paid out at different times, and concluded l>v staling that Afaling afterwards went to New Zealand without first securing leave, and a default assessment was issued by the Taxation Commissioner. The result was that an olfieer of the Criminal Investigation Department was sent to New Zealand to interview Alaling. Alaling had stated that he knew all about it, and that tiie money was given him as a present by Arnott in recognition of liis firm securing thp contract; that fie had been taken down by Albert for two thousand, and that lie bad paid eight thousand to Alderman Green.

Francis Buckle gave evidence that, in response to a request by Albert, lie arranged to have the money, which Albert said was for a friend, passed through his account, and lie had at various times drawn cheques totalling £10.600, which lie had paid to Albert without knowing whom the money was for. nor anything about the details of the transaction, but lie did not think that there was anything wrong. Witness concluded by saying that he. had never seen .Milling until today. Albert, giving evidence said lie was a marine driver, and a registered money lender. He had known Afaling for a good number of years. The latter saw him in the street one day and asked him if ho would allow a. sum of money, which was to conic fronr England, to pass through his account. He arranged with Buckle to receive it through Buckle’s account, as lie (Albert) had to go to Melbourne, but neither Buckle nor himself knew where the money was com ing from. When the money arrived. Ik- told Afaling that Buckle had italic! would Milling take it. The latter said that ho would take it in periodical amounts from one thousand to two thousand at a time. Tie then detailed how he had paid Afaling at various times, lint he never at any time knew where the money came from, nor what it was for. He had remained friendly with Afaling until he went to New Zealand, and there was no suggestion that lie owed Afali„g money. He saw Aialing just prior tcThis departure. Milling said lie was going away, and il lie could get a passport, he would not return. He wrote to Afaling while the latter was in New Zealand, asking him to get himself (Buckle) and Miss Gordon out of the trouble, caused by receiving tho money, as none of them : knew anything about it, ami had reI ceived no benefit. The hearing was adjourned till ■Wednesday.

DENIAL OF BRIBERY. (Received this day at 12.25 d.t0.1 LONDON, Afay 14. The newspapers are giving prominence to allegations of corruption during the Labour regime in Sydney, made, before the Royal Commission investigating the municipal power house contracts. The “Daily Chronicle” informed the London office of BndcockAYilcox of the nature of the cabled statements. The deputy-general manner promptly denied the allegations of bribery. He states: “ Tins is the first we have heard of it and shall cable our Svdnev manager for full details. Meanwhile we arc glad the public have our emphatic denial. We have never done anything of the sort either m Australia or anywhere else. There must "he some mistake. It is true we secured a contract and arc now iulfilling it. hut it is untrue we paid any one ten thousand for it. Those are not our business methods. AVe take a most serious view of the allegation and shall take the matter up immec]iately.