PURCHASE OF PETROL.

New Zealand Herald, Volume LIII, Issue 16203, 13 April 1916, Page 4

PURCHASE OF PETROL.

-v • <1 •SjSjtsj'GOVERNMENT PROPOSAL . % :§g MINISTER'S EVIDENCE. -'/S NO IDEA OF COMMISSION, t - By Telegraph— Association—Copyright. ' (Received April 112, 9.55 p.m.) , Stdxey, April 12." Evidence was given to-day by Mr. A. H. Griffith, Minister for Education, beforo the commission appointed to investigate the negotiations for the acquisition of tho British Imperial Oil Company's interests. Mr. Griffith said he understood the charge was that, through his agents he asked that a secret commission should be paid to himself or to his colleagues by the company, and that the charge was supported oy strong evidence, both <ral and written. He was absolutely unaware that thft brokerage asked for was to be shown ia any document to go before the Cabinet. The whole gravamen of the charge was that there was to bo a document to ba kept- secret in Australia while sat'-sfying the company's auditors in England. Mr. Griffith said that had he known there w&j no charge of secrecy, but merely a scheme of open brokerage to be paid on a contract he would not hare stood down frcm hie administrative v 'ties and abardoned his work in Pari. 1 nt. Giving details of the scheme, Mr. Griffith said he chose the best ,'o?n . , could get to make inquiries, li-i told Reed, the Government superintendent of stores, not to bother him with details, and also that if a scheme was formulated it would be possible that charges of corruption against the Government by the peop'.s might be expected. Reed introduced Morgan, and, "after Interviews, witness appointed Morgan as agent for the Govern* ment because he impressed him as a man knowing all about the oil business. Nothing was said about payment to Morgan because he was representing the vendors.

Mr. Griffith declared he was never « party to getting a- commission in connection with the petrol proposal nor any other in the wide world, nor was any othef Minister. He had absolute confidence in Reed, who had 25 years' service as a Departmental officer. Morgan had no power to bind the Government and there was absolutely, no agreement to pay him broker* age. He was merely authorised to act at agent, and not as broker. Witness did not for a moment contemplate that Morgan should have asked a commission from the company. The Government would have paid for his services. Reed never mer ii-ned the question of brokerage 07 co'u lission, Beyond casual reports mads In- ed regarding the progress of the na- £<■ ': ;iou„',. Mr. Griffith s&id, he was un..tow of tLu jral position of iffairs until an °r '"V? -J .< the -, r, Air. Kc-lrm. .= ■ Gained the char^-3.

Further -. '2 in-:e 1 -as gifsa bj Morgaa. He said ha s r', ~nfid 3 -yj- cent, as his commission. He looked on the nntvJJ as an ordinary commercial 'deal, and was out to make as much as possible for himself. The whole thing would have been submitted w Cabinei, and, in'the event of t,bf- praring knife ba,ng u. Ed he wanted to ; ensure a substantia' broirerige. He dio." not care if the world knew that he received 10 to 15 per cent. He stated Mr. Black, Sydney manager of the British Oil;. Company, said it would, ccma pretty rough on him if the Govrrament took over ths company, as he ha i made the New South Wales agency a pretty good thing for hiss*, self.