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THE PETROL DEAL

MR GRIFFITH'S EVIDENCE

HAPHAZARD METHODS

LOOSE ARRANGEMENT WITH

MORGAN,

COMPLICITY DENIED

Press Association—By Telegraph— Copyright,

SYDNEY, April 12. plyingevidence befoio tho Royal Commission inquiring into the negotiations with tho British Imperial Oil Company, Mr Griffith (Minister of Education) said ho understood tho charge was that through his «i'jccn(« he asked that a secretcommission ehould be paid to himself or liis colleagues by the company through whom th-ey were doing business. That charge was supported by strong evidence, both oral and written, lie was absolutely unaware of -tho brokerage, and asked for it to be shown in any document to go before tho Cabinet. Tho whole gravamen of tho charge was that there was to be a secret document, to be kept secret in Australia, while sa-fisfyinir the company's auditors in England." Had ho known there was no charge of secrecy, but merely a schemo of open brokerage to be paid" on contract, ho would not Jiavo ttood down from bis administrative duties and abandoned bis work in Parliament.

Giving details of the scheme, Mr Griffith Eaid ho chose the best man be could get to make inquiries. Ho told Mr Reed, Government Controller of Stores, not to bother him with details, and. also if a scheme was formulated there would Ijo a possibility of a charge of corruptwn against tho Government by some people bo expected. Mr Bc-ed introduced Mr Morgan, and after interviews ho appointed Mr Morgan as agent, because lie was impressed with him as a man knowing all about the oil business. Nothing was'ea.id about payment to M.r Morgan, because ho was representing tho venders. Mr Griffith declared that iw was never a. party to getting commission in connection with the petrol 2>ropceal, nor any other in the. wide world, nor was any other .Minister. Ho had absolute! confidence* in Mr Reed, who for 25 years had been a, departmental officer. Mr Morgan had ik> power to bind tho Government. There was absolutely no agreement to pay him brokerage. Ho was merely authorised to act as agent, not as broker. Ho did not for a moment contemplate that Mr Morgan should ask for commission from the company, The Go vennix-nt would have- paid for his services. Mr Reed never mentioned the question of brokerage or commission. Beyond casual reports mad© by Mr Reed on'progrcss of tho negotiations, he (Mr Griffith) was not aware- of the real position of affair** until the interview in which, Mr Hohnan explained tho charges.

MORGAN CROSS-LXAMIXED,

AIRY ADMISSIONS,

SYDNEY, Apnl 13, (Received April 13, at 0.45 a.m.)

Morgan, cross-examine<l, said ha had heard rumors that possibly commission mighty be asked tor in gathering in any big tli'ing. It had been mentioned that there was a big sum paid for securing a big Public Works contract, such as- tho Norton Griffiths scheme. Rut ho declared that ho would have nothing to do villi secret commission. Had commission in connection with the petrol scheme been knocked off the question would have, been how much ho could get out of the- Government. Had the commission been 1 per cent, it would have meant £S,C€O a year. He would havo been satisfied with'this, but it would not, have remunerated him so very well. He wanted just ae much as he could make. There might havo been two or thi-co other people to pay, but he. had no ono in particular in his mind. Reed wanted no commission, and weald not havo taken any. Prior to Ills taking up negotiations witness was makibg- £3OO or £4OO a- year in s-aiarv aud commission.

Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/ESD19160413.2.43

Bibliographic details

Evening Star, Issue 16088, 13 April 1916, Page 6

Word Count
598

THE PETROL DEAL Evening Star, Issue 16088, 13 April 1916, Page 6

THE PETROL DEAL Evening Star, Issue 16088, 13 April 1916, Page 6

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