CIVIL AVIATION ROW

Sun (Auckland), Volume II, Issue 582, 7 February 1929, Page 11

CIVIL AVIATION ROW

DEFENCE SECRETARY'S SUSPENSION INQUIRY IN MELBOURNE (Australian and AT.Z. I*rcss Association MELBOURNE. Wednesday Remarkable evidence was given to-day at an inquiry into the suspension of M. L. Shepherd, secretary of the Defence Department, which was opened before Mr. H. P. Brown. Director-General of Postal Services. first allegation against Shepherd arose out of a remark he is alleged to have made at a dinner given to Mr. Bert Hinkler. Captain H. Larkin, managing -director of the Australian Aerial Services, stated at the dinner in question that he was reluctantly forced to the conclusion that it was necessary to bribe Lieut. - Colonel H. C. Brinsmcad, Controller of Civil Aviation, in order to secure even a fair hearing. To that Shepherd is alleged to have replied: “Why do you not pay? You will not get on if you do not pay.” The second allegation arose out of a peace gathering in October. 1928, at the house of Air. Herbert CampbellJones, managing-editor of the Sun Newspapers, Ltd., of Sydney. Shepherd is alleged to have said to Captain Larkin: “I know how to handle Cabinet Ministers. I arrange documents in two piles. One they sign without reading, the other I advise them to read. Now, it rests with you which pile I put your stuff in.” Captain Larkin stated in evidence that he had asked for an inquiry into the methods of the Civil Aviation Department and for the publication of air contracts. On a later occasion at Air. Campbell - Jones’s house, the host appealed t«* witness and Colonel Brinsmead, as honest, able men, to try to pull together. Colonel Brinsmead then complained that his differences with witness in the past three years had been “perfect hell.” Colcmel Brinsmead. at one stage, threatened that he would resign. Air. Campbell-Jones said he could only describe Captain Larkin’s statement about the suggestion of bribing Colonel Brinsmead as “a damnable lie.” Air. J. Cussen, counsel for Shepherd : It has been suggested that you brought pressure to bear on Captain Larkin in order that his company should bribe Shepherd and Colonel Brinsmead, and to make some money for yourself. Witness: I did it entirely on my own initiative. The hearing was adjourned.