THE N.S.W. SENSATION.

Taihape Daily Times, Volume 8, Issue 78, 31 March 1916, Page 6

THE N.S.W. SENSATION.

ALLEGED BRIBERY. STATEMENT BY MR. HOLMAN. SYDNEY, March 29. It is anticipated that the Royal Commission into the petrol allegation will get to work early next week. Its scope is to enquire into negotiations, arrangements of proposals on behalf of the Government of New South Wales' in the acquisition of the works and business of the British Imperial Oil Company, and the proposals made by Henry A. Morgan as to the price payable therefor; also if the demands or requests of Morgan were prompted, instigated, authorised, or endorsed by any Minister of the Crown, or other person.

According to a statement made by Mr. Holman in the Assembly, Mr. Reed, Government Superintendent of Stores in Sydney, who was engaged in negotiations for the proposed establishment of a monopoly in petrol, and Mr. Morgan, who was retained at Mr. Reed’s recommendation as advising expert, approached the Sydney and Melbourne managers of the British Imperial Oil Company. An interview was arranged, at which ( it is alleged, Mr. Morgan explained that in fixing the company’s net price, 1 per cent, was added as Mr. Morgan’s brokerage and another 3 per cent —the destination of which was not explained, but which apparently was to be used as bribery in carrying the scheme through the House —either to go to the Minister with whose department the scheme was connected or the Minister and his colleagues, and such members as could be induced to support the scheme. Mr. Wagstaff, the Melbourne manager, who, Mr. Holman said, was at the moment convinced that Feed and Morgan were acting with the connivance and knowledge of f he Government., cabled these pronosala to the London principals, who repudiated the who’e transaction, and ~ra rned those who were a party that, the peal of confidence under which it was conducted must be lifted. Mr. Ho,irn"n added that the appointment of a Rcval Commission was entirely at the reouest, and unnn the initiative, of A/r- Griffith. Pending the inouirv. Mr Griffith, at his own request, had been relieved of all administrative work. Mr. Griffith has declared that he was unaware that anything was the (oast bit wrong. His first impulse •vas to pugs'est criminal proceedings, but the steps taken seemed wiser.

RE-ARRANGEMENT OF PORTFOLIOS. SYDNEY, March 29. Mr. Holman will administer the Education Department during Mr. Griffith’s temporary absence.