CHARGE OF BRIBERY

Taranaki Daily News, 18 May 1928, Page 7

CHARGE OF BRIBERY

SYDNEY CIVIC SCANDAL POWER HOUSE CONTRACT DEMANDS ON TENDERER ALLEGATION OF BLACKMAIL By Telegraph—Press Assn—Copyright. Received May 17, 8.30 p.m. Sydney, May 16. The Royal Commission which is investigating the affairs of the late Sydney City Council resumed its sittings to-day. Mr. A. B. Shand appeared as counsel for the, Crown solicitor,- and Mr. V». A. Holman for the deputy-general manager of the city -electrical iepartment. The commission continued its investigation of the circumstances surrounding the letting of a contract to Babcock and Wilcox', Limited, of London, for a steam-raising plant for the Sydney power-house. At Monday’s sitting evidence was given that Mr. Haling had notified Mr. Arnott, Sydney manager for Babcock and Wilcox, that in consideration for the acceptance of the firm’s

tender certain aidermen required £.10,000, of which £BOOO was to go to them and £2OOO to Mr. Maling. A further £6OO would be required for expenses if the money were sent from London.

Miss Gordon gave evidence that shs was employed as a housekeeper, but as she was very friendly with Albert she frequently met him and transacted business for him. She also knew Buckle, but never discussed or mentioned Mr. Maling’s money to him and never had a suspicion or curiosity about it. She had two bank accounts of her own, but did not know whether Albert ever opened an account in her name, and did not know if he ever used her account. “FOP. THE GANG AND MYSELF.” Arthur Arnott, attorney and general manager in Australia for Babcock and Wilson, gave evidence that his firm’s tender for the power-house contract was prepared in London and copied in Australia. One day he went to the Town Hall to see if there was any good news, and an aiderman told him it was all right; his tender was the lowest. Later, in response to a telephone message, he went to see Mr. Maling as the tender was complicated and there were questions to answer. Mr. Maling, after discussing the tender, said he wanted £7500 to give his firm the contract, adding: “I am sorry I have got to do this, but I have got to find £5OOO for the gang and I want £2500 for myself.”

Witness said he tried to have the amount reduced, but Mr. Maling replied: “Those are my instructions; I cannot help it,” Witness neither accepted nor rejected the proposal. The next thing that happened was that witness received a telephone message from Aiderman Holdsworth, who wanted to see him. He went to Alderman Holdsworth's place of business and the latter said he wt s prepared to advocate acceptance of the tender by the council if witness gave him £lOOO. Again witness neither accepted nor rejected the proposal, realising that after what Maling had said about the gang it might be. useless to refuse! At another interview at Mr. Maling’s home Mr. Maling had said there had been a meeting of certain •uldermen and lit had been decided that unless witness agreed to pay £lO,OOO the contract would lie let to another firm, namely, international Combustions Limited, which deposited £15,000 with an independent party to be paid to the aidermen if they got the contract. After further discussion witness said, “1 see I must recommend my firm to pay your blackmail,” and the interview ended. Before leaving he told Mr. Maling about Alderman Holdsworth’s demand. Mr. Maling had said: “Don’t pay him; he is one of the gang and will get his £lOOO with the others.” A little later witness was notified that his firm’s tender had been accepted. “RUNNING FRIGHTFUL RISK.” After witness was advised of the acceptance of the tender he had a short interview with Aiderman Holdsworth and told Mr. Maling, who expressed the opinion that Alderman Holdsworth was hunting with the gang and also hunting for himself. Witness informed Mr. Maling that he did not wish to have anything to do with the payment and that if he would nominate somebody in Sydney who would receive the money, witness would communicate with the managing director and tell him where to send the money. He was told at ft later stage that Frank Bucklo would receive the money. Witness had said to Mr. Maling: “You are running a frightful risk and will get into trouble over this.” _ Mr. Maling then asked for an additional £6OO to cover expenses, and this was agreed to. In reply to a question by Mr. .Shand, witness said he wrote privately to Sir James Kennall, the firm's managing director in London, who had since died stating in his letter that the tender was a very difficult affair and witness did not want to have anything to do with it, adding that he would rather have Sir James Kennall come out ana witness resign, and that it would be better for the firm not to get the job under the existing circumstances. Sir James Kennall had replied that he could not come out and if Arnott was satisfied the firm’s tender was satisfactory in every way and that they were no bribing anyone to pay any. blacsmai necessary. Witness wrote again to Sir Janies Kennall, telling him that as he. had >-ir •James’ authority to pay blackmail ne had agreed to pay £lO,OOO and asked him to' send it with an addition®’ ia* l for expenses to Frank Buckle at a eer ’ tain bank in Sydney.