CIVIC AFFAIRS

Wanganui Chronicle, Volume LXXXIII, Issue 20150, 19 May 1928, Page 7

CIVIC AFFAIRS

THE SYDNEY INQUIRY MALING GIVES EVIDENCE [ Australian Press Assn. ] Received May 18, 10.30 p.m. SYDNEY, May 18. At the Royal Commission inquiring into civic affairs, Silas Young Maling gave evidence, stating that when ie was Deputy-General Manager of the Electricity Department for the City Council, there were eight tenders for the power-house contract, an 1 after they had been investigated there was never any doubt in his mind that Babcock-Wilcox should be recommended to the committee. This information was cabled to Mr Forbes Mac Kay, 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 bettee commercial proposition When the Town Clerk cabled Maling's reasons for recommending the Babcock-Wilcox tender, 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. Ashamed of Citizens Arnot, continuing his evidence said that after the money was cabled to Buckle witness asked Maling if he had received it aud was told that it was right. That was all that was said about the money at that time. About a month later a woman, Mrs Pittock, who saiid she came from Mating. went to witness’s office and told him that the income tax people ha/1 found out all about the money sent to Buckle, and had made demands for payment of £2600 taxation. Mrs Pittock then asked witness if he would pay it. Witness replied that he wouid have nothing more to with the matter and would rather that the whole of the facts were maide public. The woman replied that it was very unfortunate as she wouid have to pay the money and she was going to consult a solictior. The woman later telephoned him and he made an appointment to meet her at the vestibule of a city hotel where Mrs 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 tdisgusted with the whole thing. In reply to a question Arnot said he had been approached on another occasion for money in connection v»-th gutting the contract, but further questioning on this subject was disallowed. Witness then admitted that he had been armed with authority from hit, 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 askod him if he were 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 bydney for putting such people in the Council to represent them. Other Company’s Offer Maling said he had heard from Arnot. about the time of the tendering, that a sum of money had been put up in town to secure the acceptance of a tender by the International Combustion Company. Witness added that after he had recommended that the Babcock-Wilcox tender be accepted, Arnot, who appeared greatly alarmed, repeated to him that he had heard about the Combustion Company’s offer of £15,000 for acceptance of their tender. Arnot told witness that he had been spoken to by Alderman Holdsworth in connection with the payment but witness told him that no payment was necessary, as he had recommended. acceptance of the BabcockWilcox tender, but added that payment to the Aidermen would expedite acceptance of the tender. Witness also told Arnot that Holdsworth was unpopular with the Aldermen and he should not deal with him in sucli a transaction.

Arnot then told; witness he did not know any other Aiderman whom he could approach, and witness promised to approach Alderman Green for

Arnot, which he did. When witness saw Green he said that Babcock’s were concerned about the tcnid-er, as they had heard about the offer made to Aidermen by another firm, anri witness asked Green if he cared to act in such a transaction. Green replied that he preferred not to deal with Arnot as he did not know him, anr I prefeftred 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 Alondav.