ALLEGED CORRUPTION

Hawera Star, Volume XLVII, 24 July 1928, Page 5

ALLEGED CORRUPTION

POWERHOUSE CONTRACT. SYDNEY CIVIC AFFAIRS. CHARGE AGAINST S. Y. HALING. (United Press Association—By Electric Telegraph Copyright.) (Australian 'Press Association.) SYDNEY, July 23. The hearing of the case in which Silas Young Haling is charged with corruptly receiving £10,600 in connection with a contract for a powerhouse between Babcock, Wilcox and Co. and the Sydney City Council, opened today The town clerk described the receipt of the tenders for the work and dialing’s recommendation of Babcock and Wilcox, but witness was not sure whether it was the lowest amount. The council’s policy was to assist Australian enterprise as far as possible. The electricity committee’s approval of dialing’s recommendation was' unanimous. The committee included three aldermen opposed to the Labour Party. The clerk of the committee deposed that the records would not show if the decision had been unanimous. He had heard suggestions of graft made in the council. A. J. Arnott, manager for Babcock and Wilcox, produced credentials and then asked to be excused from answering questions. Legal argument followed, but witness eventually proceeded with his evidence. He said' he had seen Haling several times regarding the tender. In Harcli, 1926, Haling told witness the gang behind him wanted £SOOO, and he wanted £2500, before Babcock and Wilcox could have the contract. Witness urged that as his firm’s tender was the lowest and they had works in Australia they should not pay anything. Later he suggested £SOOO should be enough. Haling replied that that vas no use; he had to have £7500 in April. Haling told witness the International Combustion Company had put up £15,000 to obtain the contract. The monev was in the hands of a third party, but those behind Haling would give" Babcock and Wilcox the contractif they secured £IO,OOO. Witness replied that there was no margin in the tender to pay that- amount. Haling told him £7500 to £BOOO would go to the gang. The hearing was adjourned.