ALLEGED BRIBES.

Auckland Star, Volume LIX, Issue 119, 22 May 1928, Page 7

ALLEGED BRIBES.

SYDNEY SCANDAL.

Royal Commission Continues Inquiry. MR. MALING'S STORY. SYDNEY, May 21. The Royal Commission which is investigating the affairs of the late Sydney City Council resumed its sittings to-day. Mr. A. B. Shand appeared as counsel for the Crown solicitor and Mr. W. A. Holman for the former deputy-general manager of the city electrical department, Mr. S. Y. Maling. The proceedings again concerned the payment into the banking account of Mr. F. Buckle of £10,600, said to have been remitted from England in consideration of the letting of a contract to Babcock and Wilcox, Ltd., of London, for plant for the Sydney power-house; and the alleged handing over of that sum in instalments to Mr. Maling, through Mr. Albert, a moneylender, and his woman clerk, Miss Gordon. Mr. Maling continued his evidence. He said when the matter of the payment, to aldermen was arranged with Mr. Arthur Arnott, attorney and general manager in Australia for Babcock and Wilcox, the latter insisted on making witness a present of £2000. Witness said he reluctantly agreed to accept the money. The whole matter was being discussed with Mr. Arnott. Witness asked him what amount he proposed to pay the aldermen and Mr. Arnott said £7500 and £1000 for Alderman Holdsworth. The tender of Babcock and Wik-ox was then placed before the council, which approved it, and the contract was given to that firm. Witness said he heard no more about the money business for some time. Then Mr.. Arnott came to his office and said he could not get money out from England. He said he was afraid to do so for fear it should be detected. He asked witness if he knew any way out of the difficulty.

Witness said he promised to think it over for a few days. Later he met Mr. Albeit in the street accidentally and told him Mr. Arnott could not get the money out from England. Mr. Albert then said Mr. Buckle had a much larger banking acount than he had and would be better able to handle the transaction.

Subsequently, Mr. Albert told witness Mr. Buckle was prepared to let the money go through his account and that he (Mr. Albert) wanted £100 for his services in making the arrangements with Mr. Buckle. This was agreed to. It brought the total amount of the payment to £10,600.

Witness said the next thing he heard was when Mr. Albert came to his office and told him the money had arrived from England. Witness then told the Commission how he had received various amounts through Mr. Albert and Miss Gordon, which he said he had handed over to Alderman Green.

Cross-examined, Mr. Maling said he told Mr. Arnott not to give Mr. Holdsworth any money, as if he did the other aldermen would not get their shares. He further stated that when he left Australia he would have returned had he received reasonable treatment from the Civic Commissioners. Before he left he had asked for leave to consult a Harley Street (London) specialist, but this was refused, so he then went to New Zealand without leave on the advice of Lis doctor.

At this stage Mr. Justice Harvey, chairman of the Commission, said he would have to investigate the allegations in connection with the tender of International Combustions, Limited, as it seemed to run right through the whole matter.

At a later stage Mr. Arnott was recalled and cross-examined as to a number of cablegrams which have passed between him and the London office of Babcock and Wilcox since the Commission has been sitting. One message from the London office stated that the late Sir James Kemnall, formerly managing director of the firm, had given instructions for the payment of £10,000 in Sydney, but there was nothing in the London office to show to whom the payment was made.

In reply to a question Mr. Arnott said he saw Mr. Maling just before the latter went to New Zealand! Mr. Maling told him he had decided to resign from the City Council position and he asked witness to procure him another position where he could earn not £3000 but £0000 a year.

Witness said he could not recollect Mr. Maling having told hiin on previous occasions that he desired to give up liis position with the council.

The inquiry was adjourned until next Monday.