EACH BLAMES THE OTHER.

Horowhenua Chronicle, 22 May 1928, Page 6

EACH BLAMES THE OTHER.

ROYAL INQUIRY INTO CIVIC GRAFT CHARGES

Received Monday, 8 p.m. SYDNEY, May 21

At the Royal Commission inquiring into civic affairs Mr. S. Y.

Maling continued his evidence,

He said that when the matter of payment to the Aldermen was arranged with Mr. Aruot the latter insisted on making witness a present of £2OOO for himself. Witness reluctantly agreed to accept. The whole matte; was being discussed with Arnot. Milling asked Aruot what amount ho proposed to pay the Aldermen and Arnot said £7500 with £JOOO fqy Alderman Holdswortii.

Tho tender then went before the Council which approved it and the contract was given to Bnbcock-Wilcox. Pear of Detection. Mr. Maling continued that hehea:.! no more about the money business for some time. Then Arnot came to his office and said he could not get the money out an-, he was afraid to got it out for fear it should be delected. He asked Maling if lie knew any way out of the difficulty.’ Witness promised to think it over for a few days.

Later he met Mr. Albert in the street accidentally and told him that Aruot could not get the money out from England. Albert then said Mr Buckle had a much bigger account than his and would bo better able to handle tho transaction. Used Buckle’s Account. Later Albert told witness that Buckle was prepared to let the money go through his account and that he (Albert) wanted £IOO for services in making arrangements with Buckle. Maling continued that this was agreed to and brought thc # total amount to £10,(500, The next thing Maling hoard was when Albert told him the niohey had arrived.

Haling then' told how, ho received various amounts through Albert' ami Miss Gordon which he handed over to Alderman Green. ‘ ' Did Not Trust Holdswortli.

Cross-examined Mr Mating said he told Arnot not to give Holdswortli any money, if ho did the others-would not get their shares.

Ho further stated that tvhen he left Australia he would have returned had he received reasonable treatment from the Civic Commissioners. Before ho left he had asked for leave to consult a .Harley Street specialist. But this was refused so He then went to New Zealand without leave on the advice of his doctor. _ At this stage Mr. Justice Harvey said he would have to investigate the allegations in connection with the In ternational Combustion . Company ’& tender as it seemed to run right through the whole matter. Cables to London Office. Arnot was recalled and cross-examin-ed on a number of cablegrams which had passed between Arnot and the London office, of Babcock-Wilcox since the Commission had been sitting. One from the London office stated that Sir James Kennall had instructed payment of £IO,OOO in Sydney, but there was nothing in the London office to show to whom the payment was ma'dc.

Arnot in reply to a question said he saw Maling just before the latter went to New Zealand and Maling told him that he had decided to resign from the City Council position and asked witness whore he could earn not £3OOO but £OOOO yearly. Witness added he could not recollect Maling having told him on previous occasions that he desired to give up the position wit’ the Council. The inquiry adjourned till Monday next.