PETROL MONOPOLY SCANDAL

Otago Daily Times, Issue 16663, 7 April 1916, Page 92

PETROL MONOPOLY SCANDAL

ROYAL COMMISSION SITTING, TAKING OF EVIDENCE.

Press Association—Bv Telegraph—Copyright, SYDNEY, April 6.

Mr Justice Pring is sitting as a Royal Commission to inquire into the allegations involving the honour of Mr Griffith, a member of the Ministry, in connection with the negotiations for establishing a Government monopoly of petrol in New South Wales.

Counsel for the Crown, continuing his statement in opening the case, detailed how Cabinet instructed Mr Griffith to obtain the necessary information and submit a scheme for the nationaliation of the petrol supply. Mr Reed, at that time Superintendent of Stores, investigated various schemes, and a paper-was signed by Mr Griffith,' who authorised Morgan to act, as his agent through Reed. Coming to the negotiations for the purchase of the British Imperial Oil Company, counsel said that in conversation with the 'Sydney manager of the company Mr Morgan was represented to have said that the;- could rest assured that the com' pany which sprung the highest illicit commission would be the one to get the supply. Subsequently there was a meeting in Melbourne between Reed and Morgan and the Sydney and Melbourne managers of the company. When the question of commission was raised, Reed said it did not interest him, and at a second meeting Reed raised the same objection, but stayed by request. He pointed out that certain schemes would have to be refused, and somebody would have to be placated. Besides, there was a chance of opposition to the scheme being raised in Parliament, which could be softened by suitable provi-, sion.

Counsel added, in conclusion, that no information concerning the negotiations with the British Imperial Company or of the breaking off of negotiations had been communicated to the Cabinet or to any individual member of the Government.

The New South Wales Attorney-general (the Hon. Mr Hall) gave evidence as to his being in part possession of certain facts and documents. The Melbourne manager of the British Imperial Oil Company had informed him that the commission asked for would amount to £32,000 yearly, which, on a 10 years' contract, meant £320,000. On being pressed for his reason for thinking that this money -would go to Ministers, the Melbourne manager answered that the largeness of the commission • made him think so, his impression being that all the Ministers were involved.

(Received April 6, at 9.55 p.m.) Mr Wagstaff, manager of the British Imperial Oil Company, examined, detailed the overtures made by Mr Morgan to take over the company's interests, and the proposals Mr Morgan made regarding payment of commission, as already stated. A letter was produced, written by Mr Wagstaff to his London board, placing the scheme before them, in which he said : "We are given to understand that there are some members of the Government ofNew South Wales who are out for spoil. In the event of the Government taking up the matter seriously, there will be various and sundry parties who expect substantial remuneration." In a second letter .Mr Wagstaff wrote: "The whole business seems to be a fair sample of Tammany practice. I regret having had to place before you such a proposition, emanating from a responsible Government. However, -we may! mention that this same Government concluded a £10,000,000 contract with the Norton Griffiths Company, and it is openly mentioned that the Government Ministers and officials got about £65,000 as their share of the spoil. We are convinced that the present petrol proposal is not propounded for the benefit of the State, but more fox 1 the purpose of securing a -very nice income for some of them for years to come, whether in power or not." Mr Griffith's letter to Mr Wagstaff, authorising Mr Morgan to act in the negotiations on his behalf, was also read.