SYDNEY CIVIC AFFAIRS

Hawera Star, Volume XLVII, 19 May 1928, Page 5

SYDNEY CIVIC AFFAIRS

ALLEGED BRIBERY CASE.

PAYMENT FOR TENDERS.

COMM ISSION’S INVJSSTIG ATLON

(UMTKI) I'UESS ASSOCIATION'—BV KLKI.TJih I'EL EORA I'll—COß IB I CHIT.) (AUSTRALIAN I'RESS ASSOCIATION .)

SYDNEY, May IS. -Further evidence was given to-day beioi© the lloyai Commission inquiring into the administration of Sydney civic attains, wit.i .particular reierenoe to the tenders for the construction or tint powerhouse.

Aitnnr Arnott. attorney and general manager in Australia for Babcock and Wilcox, Limited, continuing his evidence, said that after,tne money wow cabled to Buckle, witness asked Mating u he had received it and was told it was nil night. That was all that was .said aoo..'t the money at the. time. About a mouth later a woman, Mrs I’-ttotk. went to witness's office luicl told him the income tax people had found out all about the money sent to Buckle, and had made demands for the payment of £2600 taxation. Mrs Pittome then asked witness if he would pay it. Witness replied that he would have nothing more ito do with the matter, and would rather the whole facts were, made public. The woman rep'fed that it was very unfortunate, as she would have to pay the money and was going foi consult a solicitor. Tlie woman later telephoned him, and he made an appointment to meet her in the vestibule? of a. city hotel l , where Mrs Pit took informed him that the position was very serious, as detectives were investigating the whale matter. Witness' repeated' to her that he could not help and 1 would rather have the whole facts made public. a,s his firm was disgusted with the whole thing. In reply to a question, Arnott said he had been approached on another occasion for. money in connection with getting the contract, but further questioning on the subject was disallowed Witness then admitted that he was armed with authority from, hils head office in London to make the payment in connection with the contract- before he was approached by Malang. At this, stage the names of certain aldermen were mentioned, and in reply j to counsel, who asked him if he was not ashamed of his part in the transaction, witness said he was sorry to. be mixed up in it, but he was ashamed of the citizens of Sydney for putting .such opople on the council to represent them.

MALTNCr GIVES EVIDENCE. Silas Young Muring gave evidence that when fie was deputy-general manager of the electricity department of the City Council there were eight tencDens lor the powerhouse contract, and .after investigation of them there never was any doubt in his mind that Babcock and Wilcox should be recommended to the committee. 1 This information was cabled to 'Mr. Forbes McKay, general manager of the department, who was th?n in London, and he replied that he thought the tender of the International Combustion Company was a better commercial proposition. When the town clerk eablpdl Mai mg’s reasons for recommending the Babcock and Wilcox tender. Mr Mac. Kay .replied that Muling was in the .best position to judge. In reply to Mr Shand. who. asked how muchl of the £10,600 b? got, Mailing replied £9500, of which he gave away £7500 to Alderman Green. Maling said, he bad heard from Arnett about the time of the tendering that a sum of money hadi ba?n put up in the town to secure acceptance of the tender by the International Combustion Company. Witness added that after he had recommendfd that the Babcock and Wilcox fender be accepted, Arnott, who appeared greatly alarmed, repeated l to him that he had heard’ about the Combustion Company’s offer of £15,000 for the acceptance of their tender.

Arnett told witness that lie had been spoken to by Alderman Ho, Vis worth in connection with the payment, but witness told him no payment was necessary as he had recommended the l acceptance of the Babcock and Wilcox tender, but ho added that the payment to the alderman would exepdite the acceptance of the tender. Witness told Arnott that Alderman Holds-worth was unpopular with the aldermen, and he should not deal with him in such a transaction.

Arnett than told witness that he d’d not know any other alderman whom, he could approach,, and witness promised to approach Alderman Green for A.rnobt, which he did. When witness saw Alderman Green he said that Babeock and Wilcox were concerned about the tender, ns they had heard about the offer made to an alderman by another firm, and witness asked Alderman Green if he cared to act' in such a transaction. Alderman Green Tcplmd that he preferred. not to deal with witness. Mating consented to this. "Witness added that "he <lid th.’S in the interests of the onblie. as he knew it would result in the matter hetng expedited. •The inquiry was adjourned till 'Monday.