MATING SAYS TOOK £2000 'GIFT’ FROM ARNOT RELUCTANTLY

Manawatu Times, Volume LIII, Issue 6616, 22 May 1928, Page 7

MATING SAYS TOOK £2OOO 'GIFT’ FROM ARNOT RELUCTANTLY

Gives Evidence Money Transference Difficult

ROYAL INQUIRY INTO CIVIC GRAFT CHARGES

United Press Association —By Electric Telegraph—Copyright. Received Monday, 8 p.m. SYDNEY, May 21.

At the Royal Commission inquiring into civic affairs Mr. S. Y. Maling continued his evidence.

Ho said that when the matter of payment to the Aldermen was arranged with Mr. Arnot tho latter insisted on making witness a present of £2OOO for hinwclf. Witness reluctantly agreed to accept. The whole matter was being discussed w’ith Arnot. Maling asked Arnot what amount ho proposed to pay tho Aldermen and Arnot said £7500 with £IOOO for Alderman Holdsworth. Tho fonder then went before tho Council which approved it and the contract was given to Babcock-Wilcox. Fear of Detection. Mr. Maling continued that ho heard no more kbout tho money business for some time. Then Arnot came to his office and said ho could not get the money out ;■ no he was afraid to get it out for fear it should be detected.

Ho asked Maling if he knew any way out of tho difficulty. Witness promised to think it over for, a few days. Later ho met Mr. Albert in the street accidentally and told him that Arnot could not got the money out from England. Albert then said Mr Buckle had a much bigger account than his and would be better able to handle the 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 the total amount to £IO,OOO.

Tho next thing Maling heard was when Albert told him the money had arrived.

Maling then told how ho received various amounts through Albert and Miss Gordon which ho handed over to Alderman Green. Did Not Trust Holdsworth.

Cross-examined Mr Maling said ho told Arnot not to give Holdsworth any money if ho did the others would not get their shares.

Ho further statod that when he left Australia ho would have returned had he received reasonable treatment from the Civic Commissioners. Before ho left ho had asked for leave to consult a Harley Street specialist. But this was refused so ho then went to New Zealand without leave on the advice of his doctor.

At this stage Mr. Justice Harvey said ho would have to investigate tho allegations in connection with the International Combustion Company’s tender as it seemed to run right through the whole matter. Cables to London Office.

Aruot was recalled and cross-examin-ed on a number of cablegrams which had passed between Aruot and the London office of Babcock-Wilcox since tho Commission had been sitting. One from the London office stated that Sir James Kcnnall had instructed payment of £IO,OOO in Sydney, but there was nothing in the London office to show to whom the payment was made.

Arnot in reply to a question said he saw Haling 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 where, he could earn not £3OOO but £OOOO yearly.

Witness added ho could not recollect Maling having told him on previous occasions that he desired to give up tho position wit' - the Council. The. inquiry adjourned till Monday next.