CORRUPT BARGAIN MADE

Sun (Auckland), Volume II, Issue 388, 23 June 1928, Page 9

CORRUPT BARGAIN MADE

SYDNEY CIVIC SCANDAL

COMMISSIONER REPORTS

CITY INTERESTS UNHARMED

(United P.A.—By Telegraph — Copyright) SYDNEY, Friday. Mr. Justice Harvey, the Royal Commissioner who investigated the allegations of graft in ccnection with certain contracts of the late Sydney City Council for the supply of plant for the electrical works, has submitted his report. Ho finds that Mr. Arnott, the Sydney representative of Messrs. Babcock and Wilcox, had, as a result of his interviews with Mr. Maling, who was then deputy-manager of the electricity department, committed his company to make a payment for distribution between Mr. Maling and certain unnamed Labour aldermen, as the price for securing the Sydney City Council’s acceptance of Messrs. Babcock and Wilcox’s tender. The Commissioner says he finds a difficulty in tracing the moneys after they reached Mr. Maling’s hands, but the evidence leads to the belief that the money was paid to ex-Alderman Green, as Mr. Maling suggests. The judge says he prefers to rely on the witness, Mr. Albert’s, account of the financial dealing in connection witli the receipt of moneys from England, than on that of Mr. Maling, who proved to be an untrustworthy witness. Regarding the former alderman, Mr. Holds worth, the Judge says he believes Mr. Holdswortli did approach Mr. Arnott with a request for a money payment to secure his suport for the firm’s tender. There is no evidence to support th© suggestion that the International Combustion Company was privy to its Sydney manager, Mr. Hutchinson’s, action in asking the company to cable £15,000 for "preliminary expenses.” The Commissioner considers the citizens’ interests were not harmed by the corrupt bargain between Mr. Arnott and Mr. Maling, and that the tender of Messrs. Babcock and Wilcox would probably have been accepted if no bargaining or promise of money had been made.