THE PETROL SCANDAL.

Taranaki Daily News, 7 April 1916, Page 3

THE PETROL SCANDAL.

EVIDENCE BEFORE THE COMMISSION. By Cable.—Press Association—Copyright Sydney, April 6. Before the Petrol Commission counsel for the Crown, in opening the ease, detailed that the Cabinet instructed Mr. Griffith to obtain the necessary information in order to submit a scheme for the nationalisation of petrol. Reed, who was then superintendent of stores, investigated various schemes, and later Mr. Griffiths authorised Morgan to act as his agent through Reed Coming to the negotiations to purchase the British Imperial Oil Company, counsel said that, in conversation with the Sydney manager of the company, Morgan was represented to liave said that they could rest assured the company which sprung the highest illicit commission would lie the one to get the supply. Subsequently there was a meeting at Melbourne between Reed, Morgan and the Sydney and Melbourne managers of the company, and, when the question of commission was raised, Reed said it did not interest him. At a second meeting Reed raised the same objection, but stayed by request and pointed out that certain schemes would have to he refused and somebody placated, besides there was the chance of opposition in Parliament, which could be softened by a suitable provision. Counsel added that no information of the negotiations with the. 'British Imperial Company or of the breaking off of negotiations was communicated to the Cabinet or any individual members of the Government.

The Attorney-General (Mr. Hall) gave evidence of having been put 'in possession of certain facts and documents. The Melbourne manager of the Imperial Company informed him that the commission asked for would amount to £32,000 yearly, which on a ten year's contract meant £320,000. Pressed for his reason for thinking this money would go to Ministers the manager answered that the largeness of the commission made him think so, His impression was that all the Ministers were involved.