ALLEGED GRAFT CASE.

New Zealand Herald, Volume LXV, Issue 19959, 30 May 1928, Page 11

ALLEGED GRAFT CASE.

COMMISSION IN SYDNEY. ms. PITTOCK'S EVIDENCE. VISIT TO NEW ZEALAND. INCOME-TAX MATTER. MALING'S TRANSACTIONS. (Received May 29, 11.5 p.m.) SYDNEY. May 29. The Royal Commission which is investigating the affairs of the late Sydney City Council resumed its sittings to-day. The proceedings again concerned the payment into the banking account of Mr. F. Buckle of £10,600, said to have been remitted from England in consideration of the letting of a contract to Babcock and Wilcox, Limited, of London, for plant for the Sydney power-house; and the alleged handing over of that sum in instalments to Mr. Maling, through Mr. A. F. Albert, a moneylender, and his clerk, Miss Martha Cordon. Mr. A. B. Shand, K.C., and Mr. P. D. Shortland (instructed by the Crown Solicitor), appeared to assist the Royal Commission; Mr. S. Mack, K.C., and Mr. G. Turner appeared for Babcock and Wilcox, Limited, and Mr. Arthur James Arnott; Mr. W. A. Holman, K.C., and Mr. A. J. de Baun for Mr. Maling; the city solicitor, Mr. T. W. K. Waldron, for the City Commission; and Mr. Brian Fuller for Mr. Albert. Mr. R. Windeyer, K.C., and Dr. Evatt watched the interests of certain ex-Aldermen. The cross-examination of Mr. Maling was continued by Mr. Fuller. Witness said it was only after bis return from New Zealand that ho had fixed the amount of money he had left with Mr. Albert at £llOO. Before that, while he was in New Zealand, he had told Inspector Mackay that Mr. Albert had received £2600 of the £10,600. In reply to further questions witness said he did not tell Inspector Mackay tho real facts in New Zealand, because he was trying to protect himself until he could Consult his solicitor. He had also had in mind the fact that he might make public the facts of the tender transaction. Maling's Companion on Trip. The next witness called was Mrs. Pittock. In reply to Mr. Shand this witness said that after she returned from New Zealand she interviewed ex-AMerman Green and told him the money transaction between himself and Mr. Maling had somehow become known, and that there was trouble about it. Mr. Green appeared to be greatly alarmed, and said ho would make inquiries and see if he could find out anything. Later Mr. Green suggested that the best thing Mr. Maling could do would be to deny the whole matter.

Continuing, Mrs. Pittock said that while she was in Wellington Mr. Maling received a letter from Mr. Albert in which the writer said Mr. Maling had used him, and that hj« (Mr. Albert) had been an old fool. Witness then told of the interview she had with Mr. Arnott in Sydney, when she asked him if he Avould pay income-tax on the £10,600 for which Mr. Maling had received an assessment. An Effort to Reach America. Mrs. Pittock said Mr. Arnott replied: It, strikes me Mr. Maling is "in the soup." Witness replied: Yes. and you are "in the soup," too. Mr. Arnott then said: I wish I had handled the transaction myself. It would have been cheaper. I gave Mr. Maling a substantial sum to handle the transaction and now he has gone and "mucked the whole thing up." Why docs not he pay the ■money ? Witness said she replied that. Mr. Maling was not going to pay the money, and Mr. Arnott said he had nothing to fear, as he had handed the matter over to his directors to deal with.

In reply to a question by Mr. Shand, if attempts had been made to hook passages for witness and Mr. Maling to America, or to England, from New Zealand, witness said Mr. Maling had made inquiries, but he could not secure berths on board the Tahiti. That was six weeks before he left New Zealand.