COAL ENQUIRY.

Press, Volume XLIV, Issue 19391, 17 August 1928, Page 11

COAL ENQUIRY.

SILENT WITNESSES. SYDNEY GRAFT CHARGES. THE HEARING CONTINUES. (UNTIED PRBBS ASSOCIATION—BY SLECTBIC TELEGRAPH—COPYRIGHT.) (Received August 16th, 5.5 p.m.) SYDNEY, August 16. At the Coal Commission to-day, Mr J. Mostyn, former Lord Mayor of Sydney, flatly declined to produce an agreement between his wife and the Austral Investment Company and also flatly refused to answer any questions regarding the nature of the shares held by his wife. He submitted a medical certificate to say that his wife was too ill to attend.

He complained that lie had received his subpoena only last night.Mrs Slostyn entered the witness box later and declined to, produce the document.

Ex-Alderman English, who was called, also declined to produce a certain document, and declared that he would not answer any questions relating to the enquiry until he had received an opportunity of consulting counsel. He complained that while the authorities had been working for three months on the case he had received his subpoena only last night. Barry Moore, coal agent, gave evidence that he was informed in 1921 that unless a considerable amount of money were paid, his firm's tender for coal would not be accepted by the City Council. Witness told of a visit to ex-Alderman Holdsworth's hotel at Woolloomooloo, where he overheard a conversation in which it was stated that the payment of £SOO and a commission of Zs per ton were necessary to secure the Council contract. Witness also saw Silas Maling, who said that he could influence the placing of the contract if witness would pay 2J per cent commission on coal allegedly to be sold in Melbourne.

Moore replied that this was an improper thing to suggest, and he would only tender on the merits of his coal. His tender was rejected, Peacock securing the contract and asking witness to sell him 10,900 tons. Witness asked Maling what it all meant, and why, if his coal were not good enough for tender, it should go to the city through someone else. Maling said that he did not know that. Shortly afterwards Peacock cancelled his contract with witness's firm. At this stage the hearing was adjourned.—Australian Press Association.

RECEIPT OF MONEY ADMITTED. (Received August 16th, 11.5 p.m.) SYDNEY, August 16. Richard Woof, former superintendent of the electrical power house, admitted receiving payments of £8 to £lO monthly over a period of seven years to 1920. This was paid him by Johnston in notes. Once, in 1918, he received £3OO, which he Bhared with Maling. Witness had received money from other contractors, some of which was paid to Maling.—Australian Press Association.

THE ALLEGATIONS. GRAFT ON A LARGE SCALE. (j*OH OT7B OWN COBBESPONDBNT.) SYDNEY, August 9. " • It seems that the promise of sensational disclosures before the Royal Commission which has been appointed • to enquire into the City Council coal contracts over a period of 20 years will be fulfilled. The outline of the evidence by Mr Lamb, K.C., was staggering even to the people of v Sydney, for it appeared to be so circumstantial and involved so many well-known people, including a former Lord Mayor exAlderman Stokes, who was a m e . mDe £ of the Legislative Assembly until he was defeated at the last elections. Silas Young Maling, chief hgure in the power-house graft, is again evolved, as well as Richard Wooi, a former power-house superintendent. iae others are ex-Aldermen Holdsworth, Farrel, and Bramston, all of them leading lights in Labour's municipal politics over a lon e number of years. Mr Lamb's story was an intensely •complicated one, and it will probably take weeks to extract it from witnesses under strict methods of examination. Having recovered from the first shock, the people Will now display considerable interest in what is to follow with special regard u> the various witnesses who are to reveal the ingenuity with which an attempt was made to cover up the numerous transactions. It is certain s that all the graft that, has taken place will not be revealed, as it has been impossible to obtain the necessary evidence, and after the enquiry much will be left to the imagination. But if Mr Lamb succeeds m proving only the comparatively few instances of bribery mentioned in his opening statement, that will be surficent to reveal the serious state of affairs which has existed at the Town Hall for so long. For years people ■ have whispered of the graft that exl .stI ed, and now they are saying, with great satisfaction to themselves: ' told you so." . The firm concerned in the alleged corrupt dealings in coal is B. Byrnes, Ltd., a company formed by a number of collieries who purchased some years ago the business of one, Byrnes. ti "The evidence I propose to tender, said Mr Lamb, "will show that Mr Maling saw the manager of Byrnes, Ltd., and told him that unless he paid a certain sum of money the contract would not go through. Mr Maling said: "The people down below (meaning the Council) will not let it go through. I do not know that I will be able to state the exact sum of money! Johnston went away and worked out what his firm would be able to pay to get this contract (for 105,000 tons of coal a year for three years). When he came back shortly afterwards he told Maling that he was prepared to pay £ISOO cash. Maling said: 1 want £3OO for -myself. I don't want that £3OO mentioned at all. That is to be paid to me quietly. You go and see Woof, the superintendent at tne Jower-house, and fix it up with nun. ohnston then went and saw VVoot and told him that he would pay £I2OO Woof said: "Is that all? It is not enough.' Johnston then said: 'Of course, there will still be the penny a ton.' That and the £ISOO were apparently what Byrnes were prepared to pay for the contract. ''The way this business was carried on displayed considerable ingenuity. No traceable payment can be found in Byrnes' books. Johnston, it appears, went to a man named Sydney and borrowed £I4OO from him at 12| per cent for three vears. Sydney, therefore, was to get back £IBOO. He also borrowed from a man named Head at 7 per cent. The rest of the money was made up by a percentage out of the penny a ton. When Johnston got the money he went to the Paragon Hotel and handed Woof £I2OO in notes. In a statement to the police. Woof admits that he received £I2OO He kept £3OO for himself and handed £9OO to Maling for distribution. Later, Johnston met Bramston. who complained that he had not got his cut, and asked if the

money had been paid. Subsequently, Bramston told Johnston that the matter had been settled." Mr Lamb said that it was after Woof had resigned that he was sent for by Alderman Holdsworth, who asked him if he knew anybody in the Clifton Colliery who could be approached. He replied that he did not, and was asked to go and see "Paddy" at the Town Hall, "Paddy" being the Lord Mayor, Stokes. Stokes said that he and Holds. worth wanted £SOO from the company. Woof went to Byrnes' office, and saw Pringle, who arranged for him to meet Bragge, secretary of the Lithgow collieries. It was then that Bragge made the suggestion that they should ask for £750 instead of £SOO. This was arranged, and later Woof rang up the Lord Mayor and told him that he had the money. With Stokes he went to Holdsworth's hotel, and the money was paid over.