THE PETROL SCANDAL

Timaru Herald, Volume CIV, Issue 15937, 13 April 1916, Page 7

THE PETROL SCANDAL

"A PRETTY GOOD THING." P«m Association—P.t Tel.—CopyrlgM. SYDNEY. April 12. In the course of his evidence before the Petrol Commission Mr Morgan mentioned 3 per cent, as his commission. He looked oil the matter as an ordinary commercial deal, and was cut to make as much as possible for himself. Tlte whole thing would have to bo submitted to the Cabinet, and in the event of the pruning knife bliing ns-ed he wanted to ensure a substantial brokerage. He did not car© if the world knew ne received 10 or 13 per cent. He stated that Mr Black s;<id it would -come pretty rough on him if the Government took over tho company, as ho had made the New South Wales agency a ''pretty good thing for himself." MR GRIFFITHS EVIDENCE. PROVISION FOR "COMMISSION DENIED. Received 9.5-5 p.m., April 12th. SYDNEY, April 12. Before the petrol Commission Mr Griffith, Minister of Education, was examined. He said that ho understood the charge was that through his ag.Ttts he asked that a secret com-missii-n should be paid to himself or his colleagues by the c-mnpany through whom they were doing b-.usiness. That charge was supported by strong evidence, both oral and written. He was absolutely unaware that a brokerage commtssron was asked lor, to be shown in any document to go before the Cabinet. The whole gravamen of the charge was that it- was to bo a secret document, to be kept secret in Australia, while satisfying tho company's auditors in England. Had he known that ihero was no charge of secrecy, but merely a scheme of open brokorage to b-j paid on tho contract ho would not have stood down from Ids administrative duties, and abandoned his work in Parliament.

Giving details en" the scheme. Mr Griffith said ho those the best man he could get to make inquiries. Ho told Mr Iteed not to bothvr hiin with details of the progress of tlio sciiemo. iiN-o if a> scheme was formulated thero v/okUI bo a possibility of a chargo of cornsntion against, tln> Government. Mr Heed introtlured Mr Morgan, and after tho interview lio appointed Mr Morgan agent, because, ho impressed him a.> a man knowing all about th» oil bttsinesi. Nothing was said about payment to Mr Morgan, hov::wo ho was representiu;; the vendors. Mr Griffith declared that he never was a party to getting; a comnnssion in connection with tlio petrol proposal, nor any other in tlio wide world; nor was any other .Minister. He had absolnto confidence- in Mr V.vvJ, who for 23 years had been a, Departmental officer. Mr Morgan hud no power to bind the Government. Thero \vas at solntofy no agreement- to pay him a brokerage fey. Ho was merely authorised to act as an agent, not as a broker. lie did not for a moment; eon template that Mr Morgan should hr.ve asked for a commission for the company. The Government; would have paid him for his services. Milked never mentioned the question «>! br.jkerr.go or commission. JiVyond casual r.ports made by Mr Peed on the- prosr t .« of the negotiations, he (Mr Griffith) was unaware of the real position of affairs until the interview in which Mr Hohnan explained to hi:n the charges.