PAY FOR "GANG."

Auckland Star, Volume LIX, Issue 173, 24 July 1928, Page 7

PAY FOR "GANG."

GRAFT IN SYDNEY. Maling Faces Corruption Charge. CIVIC SCANDAL. SYDNEY, July 23. The hearing was commenced to-day of the case in which Silas Young Maling is charged with corruptly receiving £10,600 in connection with the power-house contract between Babcock and Wilcox, of London, and the late Sydney City CounciL The former town clerk, Mr. Layton, described the receipt of the tenders for the work and Maling's recommendation that Babcock and Wilcox should be given the contract. Witness, however, said he was not sure whether that firm's tender was the lowest. The council's policy was to assist Australian enterprise as much as possible. The Electricity Committee's approval of Maling's recommendation was unanimous. That committee included three aldermen who were opposed to the Labour party. The former clerk to the committee, Mr. Moate, said the rccords would not show whether its decision was unanimous. He had heard suggestions of graft made in the council. The attorney and general manager in Australia for Babcock and Wilcox, Mr. A. J. Arnot, prodticed his credentials and then asked to be excused from answering questions. Legal argument followed, but witness eventually proceeded with his evidence. He said he had seen Maling several times about his firm's tender. In March, 1926, Maling said "the gang" behind him wanted £5000 and he wanted £2500 before Babcock and Wilcox could secure the contract. Witness said he urged that as his firm's tender was the lowest and it had works in Australia it should not pay anything. Later he suggested that £5000 should be enough. Maling replied that the sum named was no use; he had to have £7500. In April Maling told witness the International Combustion Company had put up £15,000 to secure the contract and that the money was in the hands of a third party. However, those behind him would give Babcock and Wilcox the contract if they received £10,000. Witness replied that there was no margin in the tender to pay that amount. Maling told him £7o00" to £8000 would go to "the gang." The hearing was adjourned.