MEAT WORKS SALE.

Ashburton Guardian, Volume XLV, Issue 10385, 2 May 1925, Page 3

MEAT WORKS SALE.

ENQUIRY INTO ALLEGATIONS. YESTERDAY'S EVIDENCE. (Per Press Association.) GISBORNE, May 1. The opening stages of the Meat Commission's sittings this morning were devoted to a further controversy regarding the missing journal. Mr Myers said that a search of the National Bank premises had been unavailing. George Witters, resuming his evidence, said he would admit that representations to the Meat Hoard regarding the Admiral Codrington had Ik en left almost entirely to the chairman. There would have been a much better chance of selling the boat if it had been in commission. To Mr D. Jones: He was not aware that Mr Lysuar had declared to the Commissioner of Taxes that the company had no funds to carry on, and even if the vessel was sold the shareholders would get nothing out of it. Mr Jones road Mr Lysnar's sworn statement to the Commissioner to that effect, and asked if it wari true. The witness replied that at the time it wa's made it appeared to be correct. Ho thought it was all assumption. Mr Jones: What are your grievances against the Meat Board ? 'Witness: You have enlightened me to some extent during the last day or two, but I think from the .outset you should have taken us into your confidence- as well as Mr Lysnar. Mr Jones: Was I not entitled to assume that Mr Lysnar would inform his co-directors ? Witness: I don't think so. because you said you had no confidence in Mr Lysnar. "Mr Jones: What do you think the Meat Board should have done ?

Witnevss: That is not for me to suggest. Until within 24 hours of the sale we thought everything would bo right. We left you after the interview believing tnat you would keep an open mind on the matter. On returning to Gisborne we sent a request to meet a deputation, and in reply were informed that the board would be pleased to receive a deputation. Your communication saying you could i hear our views was written aftor you ! had given consent to the sale. In that I think you were guilty of utter deception, and for that I will never forgive you. Mr Jones: You will do so when we get a little further. Vesteys' Operations in Wairoa. Thomas L. Powdrell, farmer, Wairoa, and a director of the Wairoa Freezing Company, said that during the last two seasons Vesteys had operated freely in the Wairoa district and were affecting the company considerably. He regarded them as a very serious combine. The commission paid by Vestevs to their agents gave them a big advantage. If Vesteys continued in Wairoa as they had been doing, the Wairoa works would go the same way as the Waioaoa works. Mr Powdrell, continuing his evidence, said lie thought the Meat Board had not functioned to its fullest extent, and should do something to protect the farmers from a combine. It should arrange marketing on the same lines as the butter control, and it could also assist farmers financially. His beef had been stored so long in Vesteys works in England that he had got nothing for it, but had paid 30s r>er head for the privilege of sending the meat Home. Most of this had gone to Vesteys. To Mr Myers, witness said that during the last two years shareholders had been tempted to sell stock and go out■side the district. Mr Myers: They are not loyal to the companv. Witness: Farmers are unable to protect themselves from the big interests. Alexander St. Clair, another director of the Wairoa Company, gave corroborative evidence. He agreed that Vesteys' operations were detrimental to the freezing company and farmers of , the district.

A Missing Journal

Regarding the missing journal, Mr Porter, accountant, was re-examined. Ho said he was still satisfied the jour nal was among the books given to Mr Hamilton, Mr Lysnar's secretary. Since yesterday Mr Lysnar had shown him leaves from the ledger relating to the Admiral Codrington.

Mr Lysnar said he was quite prepared to show them to the Commission. The chairman: You have told us that before, Mr Lysnar, and we bave told you we are nbt satisfied. It is no use reiterating the position. The Commission is not going to have its hands tied by any conditions imposed by you. 'Mr Lysnar said the only condition was that the Commission should not divulge to the other side information deterrent to the company. The chairman: The Commission is going to ordor the leaves to be produced before it. Whether the information will he disclosed remains to be seen, but the Commission is not going to bargain with you. Mr Mvers said that Mr Witters had raised doubts whether Mr Lysnar was entitled to appear on behalf of the company. Mr Lysnar: I absolutely give an assurance that I have authority to appear. . , Mr Jones: That 13 not enough. Mr Lysnar: You can have it under The chairman said the Commission already had considered the point and was not going into it further. He was quite certain that Mr 'Lysnar would not appear before the Commission and have the books in his possession without authority. ~ Mr Witters' evidence then was resumed. Questioned by the chairman be said the financial position m 1923 was not so rosy as it was to-day, some directors finding it not easy _ tc, meet their calls and because of this the directors were prompted to endeavour to sell the works. To Mr Lysnar: The delay in approaching the Meat Hoard was due to the desire to thresh the matter out with the Minister first. A Director's Evidence. Georo-e Hartley Coop, a director of , the Poverty Bay Farmers' Meat Co., gave evidence as to meeting Mr Jolly and offering to raise more shares. Mr Jolly said shares in Poverty Bay were not worth a snap of the fingers, and uro-ed 0 a directors to sanction the sale of the -r:>rks without the consent of the shareholders. Mr Jolly insisted that the hank wanted its money, and said that out of a loss of £84,000 the bank would carry £22,000. Both Mr

Lysnar and Mr Jolly said they would fight to a finish. Then the directors went to see the Meat Board, and Mr Jessep said they were lucky to have Vesteys' offer. Witness denied Mr Jones's statement that witness had said they were anxious for the sale to go through. They met Mr Jolly next morning, and he urged the importance of letting the sale go through, otherwise the concession of £22,000 would not be given. They gave Mr Jolly to understand they would sooner lose their money than their reputation among the shareholders. To Mr, Myers, witness admitted he was prepared to sell the works at a reasonable price. Mr Jolly was perfectly fair in refusing to agree to extra capital. Jo Mr Taylor, witness admitted a sale to Vestey's at £500,000 would have oeeu to the benefit of the shareholders, but he never really thought the Government and tne Meat Board would have agreed to the saie going through. SiuiemaritG in Wellington. Jarnes Copeland Meld, farmer, a director of the company since its inception, gave evidence of the .visit of me- deputation to Wellington to ask tne Mea-c Boaid to mcluue the vessel m tne Height contract. At Wellington cue/ saw Mr Jolly, whose statement to tlie directors was that tiie vessel was not to return to l\qw Zealand under the company's control. Witness denniteiy denied that at the same time Mr Matthews, another director, questioned Mr dolly concerning tne uncalled capital, asking if, - alter the calling up of all the capital of the company, it was the bank's intention to wind it up. Mr Jolly replied in the negative. t o Mr Myers: Witness admitted that with calls not coming in, the bank had cause for anxiety. To Mr Jones: Witness said he did not think the bank had stopped the company's account when the directors interviewed the Meat Board over the Admiral Codrington. The chairman of the Commission announced that loose leaves of the ledger hud been produced, and were now in possession of the Commission. Buyers and Freezers. Otto Hansen, fat stock buyer, gave evidence as to dissatisfaction with the management, after Mr Elliott's control of the works. Witness said Mr Lysnar paid the butchers over the award rates, which caused a strike as soon as Vesteys took over. Witness said that during the slump the company advanced £15,700 to some of their clients on account of meat. Witness said the manager arranged about an advance and bought 48 head of cattle, but subsequently told him no more advances were to be made. Eustace Lane, of Wairoa, said he sent a shipment of beef through the Wairoa Freezing Works, but did not get satisfactory results. He not only lost the beef, but received a debit note against his account. He thought it was a line opportunity for Mr Jones, of the xVleat Board, to distinguish himself, but lie did not do so. He simply got a letter referring him to the bank. To Mr Jones: He admitted that the bullocks were scut Home just before the Meat Board came into office.