TO RESTRAIN SYDNEY S.M.

Sun (Auckland), Volume II, Issue 541, 19 December 1928, Page 11

TO RESTRAIN SYDNEY S.M.

FIRM SEEKS A WRIT BABCOCK’S AND £I,OOO FINE (United P.A.—By Telegraph Copyright) Reed. 10.10 a.m. SYDNEY, To-day. Mr. Justice James lias granted to Babcock and Wilcox, Ltd., a rule nisi calling upon Mr. Gates, the stipendiary magistrate, to show cause why a writ of prohibition should not be issued to restrain him from further proceedings upon convictions under the Secret Commissions Prohibition Act, upon which the firm was fined .£I,OOO, and ordered to refund to the City Council £10,600. Mr. Justice James also granted stay of proceedings as to the magistrate’s order. The case in which Babcock and Wilcox, Ltd., of England, were charged with having corruptly given to Silas W. Maling, formerly deputy-manager of the city electricity department, the sum of £10,600, was concluded on December 11 at the Central Summons Court at Sydney. The stipendiary magistrate, Mr. Gates, imposed a fine of £I,OOO, and also directed Babcock and Wilcox to refund to the Civic Commissioners within six months £10,600.

Counsel for the defendant company applied for a stay of proceedings. Mr. Gates: I must say that a company with such a world-wide reputation should be the last to be associated with a transaction such as this.

Counsel for the company contended that the court had no power under the New South Wales statutes to convict his clients. He added that the corporation had no body or mind of its own. Therefore, he asked, whose action could make it liable? , . . ... Mr. Gates reserved his decision on this point. _____________