N.S.W. PETROL SCANDAL.

Stratford Evening Post, Volume XXX, Issue 5, 8 April 1916, Page 3

N.S.W. PETROL SCANDAL.

( REMARKABLE DISCLOSURES. I j INCRIMINATING LETTERS. I i , lUnited Press Association.! .i Sydney f April 7. 1 At the Petrol Commission,' Mr WagI staffs gave evidence that one per cent, commission meant at least £BOOO pier annum for Morgan. He expressed the opinion that Reed was holiest at heift't but had been very foolish. A letter written by Black, the Sydney manager of the company, to Wagstaff, was read expressing the opinion that the Labor Party was falling from grace in wanting to rush into the petrol business. 'They would get the pickings, and would thus be secure in the event of defeat at the elections. Black described Morgan's ideas as hellish, and it was degrading to think that Ministers would stoop so low as to sell the country for personal gain. He trusted to God the Company's London hoard would turn the proposal 'down..

' In, another letter, informing Wagstaff that the company's solicitor had placed the whole facts'before Mr HoL man and Mr Hall. Black said the solicitor was convinced Mr Holman and Mr Hall were, absolutely ignorant °f any move that would lead the Government, into such a position as the Minister of Education had landed them. ~ Both were greatly cut up, and .1. can assure you they know nothing of the proposition, j A letter from the Company's Eon- j dm Board turning down the proposals, [

-' saidrAVe are absolutely astounded thai - ; such proposals should be put forwari by the responsible Government of a ; British Colony through a broker ack j Jiowledged by Mr Griffiths as his ofl't- , cial agent. .' The Attorney-General, Mr Hall, in • the course'of Ids evidence, said there was no trace of Government roimtner- . ation or payment to Morgan, but Heed . had mentioned that if the scheme ,' came off Morgan would expect a good . Government job. I Wagstaffe, cross-examined, said that . neither Reoi] nor Morgan had objected to his statement that any brokerage or commission would have to be shown elearlv on any document recording the i -':'• * ' ~ j Amongst several letters read was one I from Wiixraan. the British Ilnpernd Company's Solicitor, to Wagstafle, ' wherein he declared that Messrs Holman and Hall would feel intensely the ' Hear possibility of Morgan's proposal filtering through to London as having emanated from them or from the Gov- ' eminent as such, and urging that) these gentlemen should be freed as far as possible from a taint that would j Otherwise .affect their names and reputations in London. | Wagstaffe, writing to Black After ; the facts had been placed •before 1 Messrs Holman and Hall, said,: "It looks as though we have won, hands down, defeating the Government on this particular plank of their plat- ! form. I intend to put the matter before Waxman in such a wav that I

j will be able to show the Premier the advisability of committing to black and white that this monopolistic idea is not to be proceeded with, because I won't send that to London. Such a l'declaration by him will leave him his freedom in London, and permit his having the-entree to our principals, i which under the existing circumstances are most certainly closed against him." •'

"MY WORD! THEY ARE HOT!" (Received 8.10 a.m.) Sydney, April 8. ■Waxman gave evidence that when , the papers referring to the case were I shown tojMr Hall, the latter exclaimed "My word! They are hot!" Cross- ■ examined. Waxman said the whole matter had been placed in his hands to use his unfettered discretion. He knew Wagstaffe wanted to break up the petrol scheme. Hall told him that tlie nationalisation scheme had been killed. He regarded that as a very good achievement, but still it was merely incidental to his duty, as citizens were disclosing the scheme. Black gave evidence that when discussing tlie scheme with Morgan, the latter said: "There will be an amount to go on for the Minister ; perhaps there will be more than one Minister in it." Black pointed out that if the Company wanted £90,000 for the plant, there would he £3OOO commission for Morgan, £15,000 for the .Minister, or £IOB,OOO altogether. Morgan replied that Wright asked where Reed came in, and Morgan replied, "He does not expect he will take anything. ' -Morgan pointed out that as a couple of .schemes were going, the' Minister would have to care for the disappointed Ministers, as only one scheme could get through, and when it got before the House, there were members whose support would probably have to be bought. Morgan thought that when the scheme was through Heed might be made president, .Morgan vice-presi-dent, and Black superintendent.