£5000 GRATUITY OF NO USE AT ALL TO MALING AND ‘GANG’

Manawatu Times, Volume LIII, Issue 6669, 24 July 1928, Page 9

£SOOO GRATUITY OF NO USE AT ALL TO MALING AND ‘GANG’

£10,600 Had to be Found By Babcock-Wilcox Co. ‘CORRUPTLY RECEIVING’ CASE OPENS United Press Association —By Elcctria Telegraph—Copyright. Eeceivcd Monday, 8.35 p.m. SYDNEY, July 23. The hearing of the case in which Silas • Young Maling Is charged with, corruptly receiving £10,600 in connection with the powerhouse contract between the BabcockWilcox Company and the City Council has opened. Mr Layton, Town Clerk, described the receipt of tenders for the work and Maling’s recommendation of BabcockWilcox, but witness was not sura 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 Maling’s recommendation was unanimous. The Committee included .three Aldermen opposed to the Labour Party. Mr. Moatc, clerk to the Committee, deposed that the records would not show if the decision was unanimous. Ho had heard the suggestions of graft made in the Council. Mr. A. J. Arnot, manager for Bab-cock-Wilcox, produced credentials, then asked to be excused from answering questions. Legal argument followed, but witness eventually proceeded with evidence. ; ) Ho said he had seen Maling several times regarding .the tender. In March, 19aG, Maling told witness the gang behind'him wanted £SOOO .and ho wanted £2500 before Babcock-Wil-cox could get the contract. Witness urged that as Ms firm’s lender was the lowest and they had works in Australia they should not pay anything. Later ho suggested that £SO o should be : enough. Maling- replied that that was no, use. He had to have £7500. In April Maling told . witness the International Combustion Company had pUt up £15,000 to get the contract. The money was in the hands of a thirdparty, but those behind him (Maling) would give Babcock-Wilson the contract if they got' £IO,OOO. Witness replied there was no margin in the tender to pay tha.t amount. Maling told him that £BOOO. would go to the gang. The hearing was a.djourned.