THE LYSNAR CHARGES.

Auckland Star, Volume LVI, Issue 66, 19 March 1925, Page 12

THE LYSNAR CHARGES.

THE SALE TO VESTEYS. A POLITICAL ISSUE. (By Telegraph.—Press Association.) WELLINGTON, Wednesday. The Royal Commission inquiring into Mr. Lysnar's charges continued its sittings to-day. Resuming the presentation of his case, }Jr. Lysnar said that owing to the slump the Poverty Buy Farmers' Meat Company lost money. Sufficient data was put before the bank to justify the bank authorising the company to hold its hand after the capital of the company hud been fully called up in 1922. No direct intimation was received from the bank that extreme steps would be taken against the company, or that any attempt would be made to force the sale of the works. The first definite intimation was a telegram from the Gisborne branch of the bank that Vesteys were about to make an offer of £225,000 for the works, and that the company should accept it. Following that, the directors were advised that if they did not accept the offer, extreme steps would be taken. The directors did everything to avoid selling the works, and made an ofler to the bank in writing to find another £100,000 worth of shares and place them on definite terms, but that proposition was turned down. There was talk about Armours making a better ofler.

Mr. Lysnar referred to unauthorised negotiations between individual directers of the company with Vesteys' representative. He stated that he was afterwards invited to see Mr. Rowlands, Vesteys' manager at Auckland, with them, and did so. Later, on August 25, 1023, he wrote to Mr. Rowlands offering to buy Vesteys' works. Mr. Rowlands replied that Vesteys were not sellers. Six days later the Government got an offer from Nelson Bros., really Vesteys, their "one final offer" Mr. Rowlands called it, for their works. Mr. Lysnar alleged that Vesteys were introducing various trust methods at their works, and, remarking on the unscrupulous chaVacter of trusts, said they all knew the "Big Five" had a secret fund used to bribe legislatures, etc.

The chairman remarked that the only information the commission had about the "Big Five" was that negotiations had taken place between the PovertyBay Meat Company and one .of the '•Big Five" about borrowing some money on terms under which they would virtually become the owners. Mr. Lysnar, he said, was getting nowhere, but simply blackguarding trusts. Mr! Lysnar contended that the power of preventing trusts holding works in New Zealand was too great to be vested in a Minister. Pressure, he did not say improper, but influential pressure, was brought to bear, and the Ministers could not stand it. He urged that Parliament itself should take the respon-, sibility of dealing definitely with the matter. As showing the pressure to which the directors of his company had been subjected, he quoted the following telegram from the general manager of the National Bank of New Zealand, Wellington, to the Gisborne manager: "Inform Witters (Co-op.) .and Williams that W.D. Lysnar, having admitted to mc he had made consent of the Government a political issue between him and the Government, I informed him that the bank's offer of ■• September 13, : re settlement between the guarantors and the bank no longer held good, and that our consequent action will be governed by the attitude of the directors and shareholders to-day. (Signed) Jolly." I Mr. Myers: The .bank was not prepared to be Mr. Lysnar's political football. Mr. Lysnar: Mr. Jolly wanted mc to be the bank's political football. Mr. Lysnar added that the offer of September 13 contained a concession of £22,000 to the guarantors, and that was to be withdrawn. Mr. Myere said the political issue was introduced by Mr. Lysnar, not by Mr. Jolly, the former having told Mr. Jolly that lie proposed to make the stopping' of the sale of the works to Vesteys a political issue, thus causing the 'bank' to lose its a only opportunity of a' sale. Mr. Lysnar declared his banker had no right to endeavour to bind him as regarded his political action. Sir John Findlay I should think he could say that you have no right; to threaten political action to serve your private interests. The Chairman: Don't you put yourself into the position that the bankers would say_ that members of Parliament should not go into commerce or borrow large sums of money. Mr. Myers: And then threaten to use their political influence!

Proceeding, Mr. Lysnar strongly maintained that the Meat Board did wrong in sanctioning the sale to Vesteys, especially before the board had heard fully tho case of the Poverty Bay Farmers' Meat Company.