SALE OF U.S. VEHICLES

Grey River Argus, 27 August 1946, Page 3

SALE OF U.S. VEHICLES

217 FETCH £76,810 Gillies’ Realisations P.A. WELLINGTON, August 25. The Royal Commission which is investigating the Government’s acquisition and sale of used American war vehicles resumed to-day. A statement was placed before the Commission for Messrs G. T. Gillies and Sons, whose tender for 1234 G.M.C. trucks parked at Seaview Road, at £2'1,010, was accepted' by ,the War Assets Realisation Board. The statement, which the head of the firm, George Thomas Gillies, placed before the Commission was to the effect that the firm have sold two hundred and seventeen out of the 1234 trucks, for £76,810. Mr Gillies' produced the statement to-day in accordance with an instruction given by the Commissioner, Mr R. Bartholomew, when he was giving evidence last week. In his earlier evidence, Gillies said that the disposal of the vehicles had cost him and his sons £33,000' to date. The statement showed also that seven trucks had been sold on terms for £2643; and that 43 incomplete trucks, which were dismantled, together with parts from the scrap, realised £7704, making a grand total of £87,157. Mr D. R. Hoggard, counsel for G. T. Gillies and Sons, requested that the figures should be withheld from publication. The request was rejected by the Commissioner. Mr W. E. Leicester, who is appearing, with Mr R. E. Tripe, for Messrs W. T. Goosman, R. G. Gerard, W. J. Broadfoot, and W. A, Sheat, Nationalist M.’sP., in their private capacity, questioned witness. In reply, Gillies said that it would be impossible .to give an estimate of the return which they would receive when their eightyear disposal project was completed, because nobodj 7 knew what importations of trucks would be made in the future. To Mr P. B. Cooke, K.C. (for the Crown), witness said that tenders could be called for five blocks of trucks in the park, but it would have been impossible for five purchasers to work at the park at the same time. The getting of the trucks out was a tremendous job. His firm had to start by dragging them out. Others had to be lifted out of their positions, because their brakes were seized, and the tyres were flat. His firm had been without competition, but had the trucks been sold in five lots, five firms would have been competing on the market at once, and the proposition would not have been so attractive. Practically the whole of to-day was occupied with the evidence of Mr W. P. Warner, one of the Board’s motor vehicles valuers. WELLINGTON, Aug. 26. Before calling evidence to-day from William Percy Warner, part-time valuer of motor vehicles for the War Assets' Board, Mr. R. E. Harding expressed the opinion that some who had spoken at the commission had gone outside the scope of the inquiry for .the sole purpose of casting aspersions at his client, who had never been an officer of the board. In evidence, Warner said he had first seen the vehicles at Seaview Park last December. In the following month, Levick, motor vehicles officer of the board, asked him to help him to make up a rough schedule of the junk parked there and the frames. Levick told witness that tenders were to be called for the vehicles and the scrap. In the previous October Archibald had told witness he and Raymond Eder were trying to purchase from the Americans direct. Archibald told him he would be prepared to put £20,000 into each syndicate. Witness had told Archibald that if a syndicate got the lot for £lOO,OOO it would be a good buy. That was a rough estimate only. When Archibald successfully tendered for the Dodges and jeeps, witness told Levick he would be engaged in selling for Archibald for about three weeks and Levick did not object. He left his address to enable his recall if the board needed him for urgent work. He was under no obligation to the board preventing his undertaking such work for Archibald. His engagement with the board was by the day at three guineas. MANY CONTRACTS SECURED Witness was then provided by Archibald with a petrol licence to get about the country among dealers. In five days he had contracted to sell 231 Dodges and jeeps. The prices for the jeeps were £BO for the best and £4O for poor ones. The Dodges were contracted for at an average of £lB5. After a few days Archibald said by telephone that he had reason to believe he had overbid. Witness told Archibald how well the sales were going, but the latter had dropped the contract. Warner considered Archibald had made a fool of him throughout the North Island. At 2 per cent, commission he had earned £l,OOO and there was £3,000 to £4,000 in sight. Mr. .Harding: So I take it you were pretty sore with Archibald?—-I was sore both ways. If you have driven 200 miles in a jeep, you will know what I mean. He had thereupon informed the W.A.R.B. that he was again available for valuing duties he added. His only activities on Archibald’s behalf had been over a few days after March 20. Witness did not know that after Archibald had repudiated his first tender, he had tendered a Second time. On April 23 Warner was recalled to assist with the valuation of the Dodges and jeeps. He had expected to receive instructions to go ahead and value, but nond was received. Interviewed in May by the police, witness had denied that he had inside information about the disposal of the vehicles or had {given Archibald any such information. He had told the police that in getting around among dealers he had discussed tenders. He had known of no instance of bribery or graft in W.A.R.B. dealings. '. ENGAGEMENT TERMINATED On July 3. continued Warner, he was notified that his engagement with W.A.R.B. as a part-time valuer would cease forthwith. No reason i ever been given him for the can * lation. He had learned in the last few days, however, that the Acting i ister had required. this move owing to an allegation that witness had

received a secret commission. Replying to Mr. Harding, witness said he never received a secret commission in dealings for the board or elsewhere, oi' been charged with having received one, nor had it ever been indicated to him that such a charge might be made. In reply to Mr Leicester, Warner said he inspected the vehicles in December for his own satisfaction. After Archibald’s tender had been accepted, he was in the park three days and a-half to make an inventory preparatory to selling the Dodges and jeeps, but not to access their market value, though Archibald did that. Warner stated that he assumed that an incident referred to in Mr McLagan’s letter was his acceptance of money from C- R- Vincent foi putting Vincent in touch with a buyer for tractor parts found in the scrap heap which Vincent had purchased. Witness' was cross-examined by Mi Leicester about the report of the Board of Valuers of which he was a member, which the Board had obtained at the instruction of the Prime Minister. Witness stated that it was within the Board’s instructions for it to advise the bulk sale, as it had advised. , • Witness denied he had any interest in the sale in bulk, so that he could pursue his sales campaign, having by then no connection with Archibald. He assumed that a reference in Mr McLagan’s letter to the General Manager was to the Camp Bunn incident.

Tn the course of cros-examination by Cooke, witness denied that he had ever received any payment from anybody for giving confidential information about the vehicles. _ The Commission is' expected to finish the hearing of evidence tomorrow.