CHARGES OF BLACKMAIL

Northern Advocate, 19 May 1928, Page 9

CHARGES OF BLACKMAIL

FURTHER EVIDENCE OF ARNOT

MALING- IN THE BOX

SENSATIONAL DISCLOSURES

(Australian Press Association.) (Received 5.40 a.m.) SYDNEY, This Day.

The Royal Commission, which is investigating the affairs of the late City Council, resumed its sittings yesterday. The matter under investigation is the alleged payment into the banking account of Mr F. Buckle of £.10,000.

Continuing his evidence, Mr Arthur Arnot, attorney and general manager in Australia for Messrs Babeock and Wilcox, Ltd., said that after the money was cabled to Buckle witness asked Maling if he had received it and was told it was all right. That was all that was said about the money at that time.

DETECTIVES GET BUSY,

About a month later, a woman, Mrs Pittock, who said she came from Maling, went to witness' office and told him that, the income tax people had found out all about the money sent to Buckle and had made demands for the payment of £2600 taxation. Pittock thqn asked witness if he would pay it. Witness replied that he would ih'ave nothing more to do with the matter and would rather that the whole ft of the 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 a solicitor. The woman later telephoned him and he made an appointment to meet her in the vestibule of a city hotel, where she informed him that the position was very serious as detectives were investigating the whole matter. Witness repeated to her that he could not help it and would rather have- the whole facts made public, as his firm was disgusted with the wdiole thing.

AN AVENUE CLOSED;

In reply to a question, Arnot said he had +)een approached on another occasion for money in connection with getting* the contract, but further questioning on this subject was disallowed.

Witness then admitted that he was armed with authority from his head office in London to make the payment in connection with the contract before he was approached by Maling.

ARNOT'S REGRET.

At this stage the names of certain aldermen were mentioned, and in reply to counsel, who asked him if he was not ashamed of his part in the transaetiott, witness said ho was sorry, to be mixed up in it, but he was ashamed of the citizens of Sydney for putting such people on the council to represent them. MALING SECURES £2OOO.

Silas Young Maling deposed that when he was general manager of the Electricity Department for the City Council, there were eight tenders for the power house contract and, after investigation of them, there was never any doubt in his mind .that Messrs Babcoek and Wilcox should be recommended to the committee. This information was cabled to Mr Forbes Maekay, 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 Maekay- the reasons for recommending Messrs Babcoek and Wilcox's tender, Maekay replied that Maling was in the best position to judge. In reply to Mr A. B. Shand, who asked how much of £.10,600 he get, Maling replied £9500, of which he gave away £7500 to Alderman Green.

ARNOT ALARMED

Maling, continuing, said he had heard from Arnot, about the time of tendering, that a sum of money had been put up in town to secure acceptance of the tender by the International Combustion Company. Witness added that after he had recommended that Messrs Babcoek and Wilcox's tender be accepted, Arnot, who appeared to be 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 that 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 Messrs Babcoek and Wilcox's tender, but added that payment to aldermen would expedite acceptance of the tendor. Witness also told Arnot that Holdsworth was unpopular with the aldermen and he should not deal with him in such a transaction. Arnot then told witness, that he did not know any other alderman whom he could approach, and' witness promised to approach Alderman Green for Arnot, which he did. When witness saw Green he said that Babeoeks were concerned about their tender, as they had heard about, an offer made to aldermen by another firm, and witness asked Green if he cared to act in such a transaction. Green replied that he preferred not to deal with Arnot as he did not know him, but preferred to deal with wit- | ness. He consented to this arrangement, but did it in the interests of the public, as he knew it would result in the matter being expedited. Tho inquiry was adjourned till Monday.