SYDNEY CIVIC SCANDAL.

New Zealand Herald, Volume LXV, Issue 19962, 2 June 1928, Page 11

SYDNEY CIVIC SCANDAL.

MORE EVIDENCE HEARD. GRAFT CHARGES DENIED. EX-ALDERMEN'S AFFAIRS. QUESTIONS ABOUT MEANS. (Received June 1. 11.35 p.m.) SYDNEY, June 1. The Royal Commission which is investigating the affairs of the lato 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. S. Y. Maling, formerly deputymanager of the city electricity department, through Mr. A. F. Albert, a moneylender, and his clerk, Miss Martha Gordon. Further evidence was given by Mrs. Green, wife of Mr. Frank Green, a former alderman. She denied that her home had been thoroughly renovated, in 1926. She admitted that she had had some improvements made, but said shj 'could not remember the names of the firms who carried out the work. She also denied that she had a separate banking account in her maiden name. Witness said she had asked her husband whether he had anything to do with the £10,600 payment, and lie had replied that he was not mixed up with it. She might iiave thought there was graft in connection with tho £10,600. Ex-Alderman Denies Allegations. Mr. William Holdsworth, who was formerly an alderman from 1918 until December, 1927, said he was now a hotelkeeper. He owned no property, and had accumulated no profits. He had only been able to make his income meet his expenditure. His wife had saved money, principally out of his salary, when he was a member of Parliament. She also owned property. Witness denied that Mr. Arthur Arnott, j attorney in Australia for Babcock and Wilcox, Limited, had ever given him a penny. In reply to Mr. A. B. Shand, K.C., counsel for the Crown Solicitor, he said he knew about the allegations of graft. He declared it had been going on for the past 30 years—much more so when the Civic Reform Party was in power in the council than when Labour held the reins—but witness had always kept himself clean and clear of suspicion. He also denied that he had ever telephoned to Mr. Arnott or that he had ever had a conversation with Mr. Arnott about money. It was a deliberate lie for Mr. Arnott to say witness had asked for £IOOO, and that Mr. Arnott had asked him to take £SOO. The only reason ho could give for Mr. Arnott fabricating such a story was that Mr. Arnott wanted the money for himself. Allegation Against Mr. Arnott. Sir. Shand asked witness whether Mr. Arnold had told him that Mr. Maling had advised him not to make a payment to witness because lie would get his share with the others. Mr. Holdsworth replied : Never in his life did he utter those words to me, or anything like them. Witness said his idea was that Mr. Arnott represented to his firm that he had to pay out the money, and that he kejit it himself At'the time the Labour Party in tho City Council gave the contract to Babcock and Wilcox, they could not have given it to anybody else. They would not have dared do so. The Trades Hall would not have allowed it. The inquiry was adjourned until Tuesday.