PUBLIC ROUSED.

Auckland Star, Volume LXV, Issue 56, 7 March 1934, Page 5

PUBLIC ROUSED.

PETROL SAMPLES.

ALLEGATIONS OF FRAUD. EVIDENCE OP COMMISSION". (From Our Own Correspondent.) SYDNEY, March 1. After a session in Melbourne lasting several months, the Royal Commission set up to investigate the state of the petrol industry, has returned to Sydney, and is now conducting operations here. The proceedings in Melbourne, though extremely long-winded, started in a rather sensational way with the refusal of various companies to produce certain relevant books and papers. When the necessary pressure had been applied certain inferences, by no means creditable to the companies, were drawn by counsel. Then certain witnesses made charges of coercion and illegitimate pressure exercised by the companies "in restraint of trade," and counsel for the companies was reduced to the expedient of questioning the motives of the wit-; nesses and charging them with vindictive intentions. The general impression produced by all this was that a monopoly of a very dangerous kind had been established and was being maintained by some of the companies. To Evade Customs Duties. No conclusion has yet been reached by the commission, and the whole investigation has been so prolonged and wearisome that the Melbourne public probably heaved a eigh of relief when it heard that the commission had moved or. to Sydney. What has happened this week has stimulated the public interest again and has aroused public expectation to a high pitch of interest once more. A witness named Cusack, an ex-employee of the Texas Oil Company, testified that, to his certain knowledge, a large amount of lifhtin"" kerosene had been mixed with power "spirit, on importation, so as to evade Customs duties. Cusack asseited that the Customs officers simply relied.

and that ono of tlie Texas Company officials, in his hearing, said, "The Customs people are going to get 110 £3000" (tlio amount of duty due on 100,000 gallons thus treated). When Mr. Field, general manager of tlie Texas Company of Australia was called, he said in evidence that he knew nothing of this, and that he had been assured by Mr. Beverly, a former manager, that such charges as Cusack was making were absolutely untrue. Mr. Winston, secretary of the company, also assured the commissioner that he knew nothing of these matters till he was informed of the charges that Cusack was now laying. . Commissioner's Firm Attitude. Having listened to these astounding statements, the commissioner asked Mr. Field, the general manager, whether lie did not think that Beverley, his predecessor, had lied to him, and Mr. Field answered in the affirmative. This brought Mr. Abraham, counsel for the

company, to his feet, and he made a strong protest against the method of examination adopted by the commissioner. Mr. Lamb, who is himself a K.C. and a lawyer of wide experience, told Mr. Abraham that he understood the legal position thoroughly, that he refused to be bluffed, and that he would not allow any legal quibble to stand between him and the discovery of the truth. Mr. Field and Mr. Abraham are both trying to convince the commissioner and the general public that if this fraud was actually perpetrated, it was the work of some of the inner employees, and that "the high officials of the company" knew nothing about it till the commission This sounds vastly improbable, but no doubt it would be wise to reserve judgment till more evidence is forthcoming in regard to this accusation, also the charge _of deliberately adulterating spirit sold to tin S S ara S cs {or the purpose of crafting private companies and out of business.