PETROL DEAL

Evening Star, Issue 16082, 6 April 1916, Page 3

PETROL DEAL

ILLICIT COMMISSIONS SUGGESTED

£32,000 A YEAR

INTERESTING REVELATIONS

OF ABANDONED NEGOTIATIONS,

Press Association—By Telegraph—Copyright.

SYDNEY, April 5. Mr Justice Pring, sitting as a Royal Commission, has commenced an inquiry into the allegations involving tho honor of Mr Griffith, a member of the Ministry, in connection with the negotiations for establishing a Government monopoly of petrol in New South Wales. Tho taking of evidence was begun. According to the opening address of counsel for the Crown, Mr Homy A. Morgan (the advising expert) was represented to have said that in any installation under tho scheme for nationalising tho petrol industry it would bo necessary to add something between £IO,OOO and £15,000 for the Minister, and provision would also have to be made for £2,000 or £3,000 for Morgan himself.

April 6. (Received April 6, at 8.15 a.m.)

Counsel went on to detail how Cabinet instructed. Mr Griffith, to obtain the necessary information and submit a scheme for the nationalisation of the petrol supply. Mr Reed, at that time Bupe'intendent of Stores, investigated various schemes, and a paper was signed by Mr Griffith, who authorised Morgan to act as his agent through Reed Coining to the negotiations for the purchase of the British Imperial Oil Company, counsel said that in conversation with tlio Sydney manager of the company Mr Morgan was represented to have said that they could rest assured that the company which sprung the highest illicit commission would be the ono to get tho supply. Subsequently there was a meeting in Melbourne between Reed and Morgan and tho Sydney and Melbourne managers of the company. When the question of commission was raised, Reed said it did not interest him, and at a second meeting Reed raised the same objection, but stayed by request. He pointed out that certain schemes would nave to be refused, and somebody would have to be placated. Besides, there was a chance of opposition to the scheme being raised in Parliament, which could be softened by suitable provision.

Counsol added, in conclusion, that no information concerning the negotiations with the British Imperial Company or of the breaking off of negotiations had been communicated to Cabinet or to any individual member of lire Government. •—The Evidence.—

The New South Wales Attorney-General (Hon. Mr Hall) gave evidence as to his being in part possession of certain facts and documents. The Melbourne manager of the British Imperial Oil Company had informed him that the commission asked for would amount to £32,000 yearly, which, on a 10 years’ contract, meant £320.000. On being pressed for his reason for thinking that this money would go to Ministers, the Melbourne manager answered that the largeness of the commission made him think so. his impression being that all the "Ministers were involved.