“GRAFT” INQUIRY

Hokitika Guardian, 18 May 1928, Page 1

“GRAFT” INQUIRY

BLACKMAIL PAYMENT ADMITTED (Australian Press Association.) SYDNEY, May 17. At the Royal Commission, inquiring into Civic Affairs, Miss Gordon gave evidence. She stated that she was employed as a housekeeper, hut as she was very friendly with Mr Albert, she frequently mot him and transacted business for him. She also knew Mr Buckle, hut had never discussed or mentioned Mr Maling’s money to him, and had never had any suspicion or curiosity about it. She had two bank accounts of her own, but she did not know whether Albert had ever opened an account in her name, and slice did not know if lie ever used her account. >. Arthur Arnot, Attorney and General Manager in Australia for the firm of Babcock and Wilcox. Loudon, gave evideiice i hat his firm’s tender for the power hou-o contract was prepared in London and was copied in Australia. One day he went to the Town Hall to see if there were any good news, ami an Alderman told him that it was all right, as his tender was the lowest. Later, in response to a telephone message. he went to see Mr Moling, as the tender was complicated, and there were questions to answer. Air Mating after discussing die tender, said that he wanted £7,.100 to give, his firm the contract, adding: “I am sorry that T have got to do this, hut I have to find five thousand for the gang, and I want £2,500 for myself.” Witness tried to have the amount reduced, hut Muling replied: “Those are my instruction*. I cannot help it.” Witness neither accepted nor rejected the proposal. The next thing that happened was the witness got a telephone message from Alderman Holdsworth, who wanted to see him. He went to Ifoldsworth’s pilacs.' of business, and the latter said that he was prepared to advocate the acceptance of his tender by the Council if witness gave him £IOOO. Again witness neither accepted nor rejected the proposal, realising after what Mating said about the “gang” that it might he useless to refuse. At another interview at Maling’s home, Muling said that there had been a meeting of certain Aldermen, and it had been decided that. unless witness agreed to pay £IO,OOO the contract would be let to another firm, namely, International Combustions, Limited, which had deposited £15,000 with an independent party to he paid to Aldermen if they got the contract. After further discussion, witness said: “I see T must recommend my firm to pay your 'blackmail!” and the interview ended. Before leaving he told Maling about Holds worth’s demand. Maling said: “Don’t pay him. Ho is one of the gang, and will get a thousand with the others.” A little later lie was. notified that his firm’s tender was accepted. "Arnot continued that after he was advised that the tender had been accepted, he had a short interview with Holdsworth, and told Maling, who expressed the opinion that Holdsworth Was hunting with the gang, and also hunting for himself. Witness informed Maling that lie did not wish to have anything to do with, the payment. and if he would nominate somebody in Sydney who would receive the nifc/ney, 'witness would communicate with his Managing Director and toll him where to send the money. He was told, at a later stage, that Frank Buckle would receive the money. Witness said to Mating: “You are running a frightful risk, and will get into trouble over this.” Maling then asked for an additional £6OO to cover expenses, and this was agreed to. In reply to a question by Air Shand, witness said ho wrote privately to Sir .Tames Kendall, the firm’s Managing Director in London, who had since died, stating in his letter that the tender was a very difficult, affair, and that he (witness) did not want to have anything to do with it, adding that he would rather have Sir James Kcnnall come out and tliat witness should resign, and that it ho would be better for the firm not to ge;t the job under the existing circumstances. Sir .Tames Kennall had replied that he could not come out. and that if ho (Arnot) was satisfied that the firm’s tender was satisfactory in every way, and that they were not bribing anyone to pay any blackmail 'moeessary. Witness wrote again to Sir James Kennall telling him that as he had Sir James Kennall’s authority to pay blackmail, he had agreed to pay £IO,OCO and asked him to send it, with an additional £6OO for expenses to Frank Buckle, at a certain bank in Sydney.