COMPANY’S ATTORNEY ADMITS MONEY PAID

Manawatu Times, Volume LIII, Issue 6614, 19 May 1928, Page 9

COMPANY’S ATTORNEY ADMITS MONEY PAID

Maling Says He Acted In Interests of Public

FURTHER EVIDENCE IN GRAFT SCANDAL

Tailed PreM Association— By IlMtria Telegraph —Copyright. Received Friday, 8.15 p.m. SYDNEY, May 18.

At the Boyal Commission inquiring into civic affairs Silas Young Maling gave evidence stating that when ho was deputy-general manager of the Electricity Department for the City Council there were eight tenderers for the power house contract and after investigation of them there was never any doubt in his mind that the Babcock Wilcox Company should be recommended to the committee. This information was cabled to Mr. Forbes Mac Kay, general manager of the Department, who was then in London, and he replied that he thought the tender of the International Combustion Company was a better commercial proposition. When the Town Clerk cabled Mr Maling’s reasons for recommending.the Babeock-Wilcox tender Mr. Mac Kay replied that Mr. Maling was in the best position to judge. In reply to Mr. Shand, who ashed how much of the £10,600 ho got, Mr. Maling replied £9500, of which he gave away £7500 to Alderman Green. Told Money Was Alright. Mr. A. Arnot, attorney and general agent in Australia of the BabcockWilcox Company, continuing his evidence said that after the money was cabled to Buckle witness asked Maling if ho received it and was told it was alright. That was all that was said about the money at the time. About a month later a woman, Mrs Pittock who said she came from Maling, went to witness’ office and told him the income tax people had found out all about the money sent to Buckle and had made demands for payment of £2600 taxation. Mrs Pittock then asked witness if he would pay. Witness replied he would have nothing more to do with the matter and would rather the whole facts were made public. The woman replied that it was very unfortunate' as she would have to pay the money and was going to consult her solicitor. Position Very Serious. The woman later telephoned him and he made an appointment to meet her at the vestibule of a city hotel where Mrs Pittock informed him the position was very serious as detectives were investigating the whole matter. Witness repeated to her that he could not help and would rather have the whole facts made public as his firm was disgusted with the whole thing. In reply to a question Arnot said he had been approached on another occasion for money in connection with getting a contract. Further questioning on this subject, however, was disallowed. Armed With Authority to Pay. Witness then admitted that he was armed with authority from head office in London to make payment in connection with the contract before he was approached by Maling. At this stage the names of certain Aldermen were mentioned and in reply to counsel, who asked him if ho wore not ashamed of his part in the transaction, witness said he was sorry to be mixed up in it but ho was ashamed of the citizens of Sydney for putting such people in the Council to represent them. , Mr. Maling continued his evidence. Ho said he had heard from Arnot about the time of tendering that a sum of money had boon piA up in town to secure the acceptance of the tender by the International Combustion Company. Amot Greatly Alarmed. Witness added that after he had recommended that the Babcock-Wilcox tender be accepted Mr Arnot ,who appeared greatly alarmed, repeated to him that he heard about the Combustion. Company’s offer of £15,000 for acceptance of their tender. Arnot told witness he had been spoken to by Alderman Holdsworth in connection with the payment but witness told him no payment was necessary as he had recommended the acceptance of the Babcock-Wilcox tender. But ho added that payment to the Aldermen would expedite acceptance of the tender.

Witness also told Arnot that Holclsworth was unpopular with the Aldermen and he should not deal with him in such a transaction. Behind the Scenes.

Annot then told witness he did not know any other Alderman whom ho could approach and witness promised to approach Alderman Green for Arnot, which he did.

When witness saw Green he said that Babcocks were concerned about the tender as they had heard about the offer made to the Aldermen by another firm and witness asked Green if ho cared to act in such a transaction. Green replied ho preferred not to deal with Arnot as he did not know him and preferred to deal with witness. Maiing consented to this. Witness added he did this in the interests of the public as he knew it would result in the matter being expedited. The inquiry was adjourned till Monday.