“GRAFT” INQUIRY

Hokitika Guardian, 19 May 1928, Page 2

“GRAFT” INQUIRY

(Australian Press Association.)

SYDNEY, May 18. The Royal Commission of Inquiry into -civic affairs, continued to-day. Silas Young Muling gave eviednee seating that when lie was Deputy General Manager of the Electricity Department lor the City Council there were eight tenders for the Power House contract, and alter an investigation of them, there never was any doubt in his. mind that Babcock and Wilcox should bo recommended to the Committee. This information was cabled to Air Forbes Muckay, the General Manager of the Department, who was thou in London, and he replied that lie thought that the tender of tlio international Combustion Coy was the 'better commercial proposition. When the Town Clerk cabled his (M’niiug's) reasons for recommending Badcock and Wilcox’s tender, Air Muckay replied that he (Muling) was in the best position to judge. In reply to Mr Shaiul (counsel for the City Commissioners), who asked how much of the CIO,601) he got, Milling replied £9300, of which lie gave away £7500 to Alderman Green. Mi- Mailing continuing his evidence said that lie had heard front Arnot about the time of the tendering that a sum of money would he up in town to secure the acceptance of the tender put in by the International Combustion Company. Witness milled that, after lie had recommended that ibe Babcock and AVilcox tender be accepted, Arnot, who appeared to bo greatly alarmed, repeated to him that lie had heard about Die International Go inbustion Company’s offer of fifteen thousand sterling for the acceptance of their tender. Arnot fold witness that lie had been spoken to by Alderman Holdsworth in connection with the payment, but witness had told him that no payment was necessary, as lie had recommended the acceptance of the Babcock and AYilcox tender, but added that a. payment to Aldermen would expedite the acceptance of the tender. Witness also told Arnot that Holdsworth was unpopular with the Aldermen, ainl he should not deal with him in suc h a transac atioii. Arnot then told '■‘witness that lie did not know any oilier Alderman whom lie could approach, and witness promised to approach Alderman Green * for Arnot which he did. When witness saw Green, he '.said that Babcock's were concerned about their tender, as they had heard about an offer being made to Aldermen by another firm, and witness asked Green if ho cared to act in such a transaction. Green replied lie preferred not to deal with Ai-iiot, as lie did not know him, and that he preferred to deal with witness. Muling consented to this. "Witness added that ho did this in the interests of the public, as he knew that it would result in the matter being- expedited. Arnot continuing his evidence said after the money was cabled out to Buckle, witness asked Milling ii lie hid received it. and was told that it was all right. That was all that was said

about the money at the time. About a month later, a woman Mrs Pittock, who said that she came from Mating, went to witness’s office, anil told him that the income tax people had found out- all about the money sent to Buckle, and had made demands for a payment of £2,001) sterling in taxation. Mrs Pittock then asked witjness if lie would nay. A\ itness replied that lie would have nothing more to do with the matter, and would rather that the whole of the fa.cts were made public. The woman replied that it was very unfortunate-, as she would have to pay the money, and she was going to consult a solicitor. The woman later telephoned him, and he made an appointment to mo®% her at the vestibule of the City Hotel, where Mrs Pittock informed him that the position was very serious, as detetives were investigating the whole matter. Witness repeated to her that lie could not help, and would rather have the whole facts made public, as his firm was disgusted with the whole thing. In reply to a- question, Arnot said that he had been approached on another occasion for money in connection with getting a contract, hut further questioning on this subject was disallowed.

Witness then admitted that he was armed with authority from his head oili.ee in London to make a payment in connection with the contract bcloiv lie was approached by Maling.

At this stage the names of certain Aldermen wero mentioned, and in reply to counsel, who asked him if ho were not ashamed of his part in the transneat ion, witness said that he was sorry to lie mixed up in it, ’but ‘lie was ashamed of the. citizens of Sydney for putting such people in the council to represent them. The inquiry has adjourned until Monday.