Australian Royal Inquiry As To Whether Minister Of The Crown Received Certain Money

Wanganui Chronicle, 23 February 1949, Page 5

Australian Royal Inquiry As To Whether Minister Of The Crown Received Certain Money

Echo Of New Guinea Timber Lease Transactions

SYDNEY. Feb. 22 (Rec. S.IU p.in.)—The Royal Commission appointed to inquire into allegations that the Minister of External Territories, E. J. Ward, received part of monies paid by a Brisbane timber firm, Hancock and Gore, for a timber lease in the Bulolo Valley, today heard evidence by Edward Farrell, aged 60,

mining engineer. Witness said that he stopped Ward outside the latter’s office, and said he was dealing with John Smith Garden in the Bulolo

Valley timber deal. He alleged that Ward replied. “I know all about it. Garden has full power to deal with the matter. You

follow out any instructions he gives you very carefully.”

Farrell said that the head of the Army Investions Directorate had offered the assistance of his department in any action that might be taken to obtain timber for Australia from New Guinea, and placed an office at the disposal of the members of the syndicate and representatives of Hancock and Gore for discussions on the deal.

Questioned by th e Commissioner, Mr Justice Ligertwood, Farrell said he had wanted a concession for himself, but Garden told him that the Minister would not grant it to him. but would grant it to Raymond Parer for services rendered in New Guinea. During a police court case last year Farrell heard the allegation for the first time that Harcourt Garden, son of J. S. Garden, was acting as a dum-

my for Ward in the syndicate. J. S. Garden had confirmed this and had added that Mrs Ward was a fifth party to the syndicate. i Witness added that he later said to ,Garden: "I don't believe Ward got ■anything. I don't believe your son is I dummying for anyone. It seems to |m e that if you and Ward are trying |to put it over Hancock and Gore you I have only put it over Ward.” | Witness said that the company was [to buy Parer’s concession for £lOO.OOO j— £12,500 in cash on the signing of the agreement and the rest over a period. i Later this was altered, with consent, 'to a further payment of £37,000. I The Commissioner: What were you 'selling? Witness: A concession which we believed Garden could and would obtain for Parer. The Commissioner: That is what you sold—Garden’s promise? Witness: He made it clear he was ■ ! acting with the full power and auth- ■ I ority of the Minister. | Questioned by Mr W. J. Shand. K.C., ■[who is assisting the commission, wit- . | ness said he believed Garden had told ■ him that if Hancock and Gore paid i £37,000 the Minister would giv e the ■ concession to them free of royalties, but he would not swear to this.