CIVIL AVIATION SCANDAL.

New Zealand Herald, Volume LXVI, Issue 20175, 8 February 1929, Page 11

CIVIL AVIATION SCANDAL.

SUSPENSION OF OFFICIAL

EVIDENCE AT THE INQUIRY.

SUGGESTIONS OF BRIBERY

INDIGNATION OF WITNESSES

(Received February 7, 10.15 p.m.) MELBOURNE, Feb. 7

The inquiry into the suspension of Mr. Malcolm L. Shepherd from his post as secretary to tho Defence Department was continued to-day, before Mr. H. P. Brown, Director of General Postal Services.

There are two allegations against Mr. Shepherd. The first arose out of a remark he is alleged to have made at a dinner given to Mr. Bert Hinkler. Captain 11. Larkin, managing director of the Australian Aerial Services, stated at the dinner in question that he was reluctantly forced to the conclusion that it was necessary to bribe Lieutenant-Colonel H. C. Brinsmead, Controller of Civil Aviation, in order to secure even a fair hearing.

To that Shepherd is alleged to have replied: "Why do you not pay? You will not get on if you do not pay." The second allegation arose out of a peace gathering in October, 1928, at the house of Mr. Herbert Campbell-Jones,, managing editor of the Sun Newspapers, Limited, at which Captain Larkin and Colonfcl Brinsmead were present. Shepherd is alleged to have said to Captain Larkin: "I know how to handle Cabinet Ministers. I arrange documents in two piles. One they sign without reading, tho other I advise them to read. Now, it rests with you which pile I put your stuff in."

Denial of Both Allegations. In the course of his evidence, Mr. Shepherd stated that when he heard of the friction between Colonel Brinsmead and Captain H. Larkin, he sent for them and heard their complaints. He told Captain Larkin to put his complaints in writing, but the latter failed to do so.

Witness described as i> malicious lie Captain Larkin's charges concerning the manner of arranging official files. Neither was there any truth, he declared, in the allegation that he had suggested bribery. He disliked intensely being on unfriendly terms with anybody. Mr. W. Ham, K.C., counsel for Captain Larkin: I understand that the fatherly advice you gave Captain Larkin was that a man of his type should be a hypocrite : n order to prosper in business?

Witness: Yes. You really mean that a man should be a hypocrite?— Yes. Do you really suggest that Captain Larkin thought it advantageous to his company to quarrel with the head °f the department ?—Ho said so himself.

Colonel Brinsmead's evidence included references to various air contracts, chiefly in Western Australia. Witness c ave details of his relations with Captain Larkin. He denied everything in the nature of bribery and declared that he never at any time gave preference to other aviation firms.

Witness continued: "For many years Captain Larkin made my life unhappy, with the result that I had to convince successive Ministers I svas not an unmitigated scoundrel. I may have said I was prejudice;! against Captain Larkin's company.

''This man Larkin is the only man in the whole aviation world frcm whom this sort of thing comes." The inquiry was again adjourned.