CHARGES OF GRAFT

Taranaki Daily News, 19 May 1928, Page 13

CHARGES OF GRAFT

SYDNEY CIVIC CONTRACT PAYMENTS BY TENDERERS THE ALDERMEN INVOLVED REVELATION AT INQUIRY By Telegraph— Press Assn.—Copyright. Australian Press Association. Received May 18, 8.10 p.m. Sydney, May IS. Furl her evidence was given to-day before the Royal Commission inquiring into the administration of Sydney civic affairs, with particular reference to the tenders for the construction of the powerhouse. Arthur Arnott, attorney and general manager in Australia for Babcock and Wilcox, Limited, continuing his evidence, said that after the money was cabled to Buckle, witness asked Maling if he had received it and was told it was all right. That was all that was said about the money at the time.

About a month later a woman, Mrs. Pittock, went to witness’ office and told him the income tax people had found out all about the money sent to Buckle, and had made demands for the payment of £2603 taxation. Mrs. Pittoek then asked witness, if he would pay it. Witness replied that he would have nothing more to do with -the matter, and would rather the whole facts were made public. The woman replied that it was very unfortunate, as she would have to pay the money and was going to consult a solicitor. The woman later telephoned him and he made an appointment to meet her in the vestibule of a city hotel, where Mr. Pittock informed him that the position was very serious, as detectives were investigating the whole matter. Witness repeated to her that he could not help and would rather have the whole facts made public, as his firm was disgusted with the whole thing. “ASHAMED OF THE CITIZENS.” In reply to a question Arnott said lie had been approached on another occasion for money in connection with getting the contract, but further questioning on this subject was disallowed. Witness then admitted that ho was armed with authority from his head office in London to make the payment in connection with the contract before he was approached by Maling. At this stage the names of certain aidermen were mentioned, and in reply to counsel, who asked him if he was not ashamed of his part in the transaction, witness said he was sorry to be mixed up in it, but he was ashamed of the citizens of Sydney for putting sueh people on the council to represent them.

Silas Young Maling gave evidence that when he was. deputy-general manager of the electricity department of the City Council there were eight tenders for the powerhouse contract, and after investigation of them there never was any doubt in his mind that Babcock and Wilcox should be recommended to the committee. This information was cabled to Mr. Forbes McKay, general manager of the department, who was then in London, and he replied that he thought the tender of the International Combustion Company was a better commercial proposition. When the town clerk cabled Maling’s reasons for recommending the Babcock and Wileox tender, Mr. Mac Kay replied that Maling was in the best position to judge. In reply to Mr. Shand, who asked how much of the £10,600 he got, Maling replied £9500, of which he gave away £7500 to Alderman Green.

ANOTHER COMPANY'S OFFER. Maling said he had heard, from Arnott about the time of the tendering that a sum of money had been put up in the town to secure the acceptance of the tender by the International Combustion Company. Witness added that after he had recommended that the Babcock and Wilcox tender be accepted, Arnott, who appeared greatly alarmed, repeated to him that he had heard about the Combustion Company’s offer of £15,000 for the acceptance of their tender.

Arnott told witness that he had been spoken to by Aiderman Holdsworth in connection with the payment,' but witness told him no payment was necessary as he had recommended the acceptance of the Babcock and Wilcox tender, but he added that the payment to the aidermen would expedite the acceptance of the tender. Witness also told Arnott that Aiderman Holdsworth was unpopular with the aidermen, and he should not deal with him in such a transaction. Arnott then told witness that he did not know any other aiderman whom he could approach, and witness promised to approach Aiderman Green for Arnott, which he did. When witness saw Aiderman Green he said that Babcock and Wilcox were concerned about the tender, as they had heard about the offer made to an aiderman by another firm, and witness asked Aiderman Green if he cared to act in such a transaction. Aiderman Green replied that he preferred not to deal with Arnott, as he did not know him, and preferred to deal with witness. Maling consented to this. Witness added that he did this in the interests of the public, as he knew it would result in the matter being expedited. The inquiry was adjourned till MonJay.