POLITICAL PRESSURE

Evening Post, Volume CIX, Issue 65, 19 March 1925, Page 9

POLITICAL PRESSURE

INFLUENCE IN BUSINESS

DEALINGS

"WHERE IS COMMERCIAL MOR. ALITY DRIFTING TO ?"

Political pressure and the principle of using one's political influence to gain certain business ends were points raised in the course of yesterday afternoon's proceedings before the Meat Commission.

Mr. Lysnar contended that Vestey Brothers were responsible for the present depression in'the meat market. The slump, he said, started in March, 1921. The Imperial authorities had been buying largely, and Vestey's bought the whole output. Having gained a monopoly, the firm dropped the price, and had held it down ever since. It had been said that the meat concerned under the commandeer was old beef, but that was not so; it was new beef. He hoped as a result of the Commission's report that sort of thing would be prevented in the future. Vestey's were becoming, the largest buyers in the Dominion, and the farmers were suffering. Parliament was determined, as "Hansard" showed, that something should be done to prevent such operations. At this stage Mr. Lysnar sought to put in a document which he spH was a report of a Committee of the *iouse of Representatives containing recommendations for legislation. 'It was approved, he said, by a majority of the members of the House- • • ' Mr. C. P. Skerrett, K.C.: "I have no great admiration for members of Parliament."

Air. Lysnar: "I can't help that."Sir John Findlay, X.C, protested strongly against the introduction of matter not admissible under the Order of /Reference. If such documents were to be put in the Commission would be sitting for months.

After some discussion, the document was put in without being read.

PRESSURE BROUGHT TO BEAR;

Proceeding, Mr. Lysnar said that it was too great a responsibility for a Minister to have the administration of legislation bearing upon the operations of trusts. "Very strong influential pressure' is brought to bear upon Ministers," he said, "and they can't withstand it. The matter' is one that the House should take responsibility upon. It might be a fair and proper thing for the Commission to say that in view of the circumstances, Parliament should deal with the matter definitely. We, may have a strong Minister or Cabinet one day, and' a weak one at another time. I don't know what pressure was brought to bear in this matter, but I do know what pressure was brought to bear upon the directors of the compa'^- and myself." Mr. Lysnar reud the following telegram forwarded on the 2nd October, 1923, by Mr. Jolly, general manager of the National Bank of New Zealand at Wellington, to the manager of the Gigborne branch: — Inform Witters, Co-op., and Williams that W. D. Lysnar, having admitted to me he had made consent of. Government a political issue between him and Government, I informed him!that bank's offer of 13th September re set-, .'-.. tlement between the guarantors and bank no longer held good, and that our consequent action will be governed by the attitude of the directors and I shareholders to-day. Mr. Myers, K.C.: "The bank was not prepared to be Mr. Lysnar's political football." Mr. Lysnar: "It is clear from that telegram that because of my political attitude, it so displeased Mr. Jolly -that he withdrew his offer of the 13th September. My friends cannot question that," Mr. Myers: "Of course'that is not so." Mr. Lysnar: "This offer of the 13th September contained a concession to the guarantors of £22,000. In other words, because I would not allow this matter to interfere with my political position, the offer of £22,000. allowance was with- ' drawn. Mr. Myers: "That is not so." The point, he said, was that Mr. Lysnar had informed Mr. Jolly that he was making the question of the sale to Vestey's a political issue. In.other words, he was going to use his political position for the purpose of endeavouring to prevent the bank from selling to what might be the only possible buyer, and thus cause the bank to lose a large sum of money which it ought not to lose.

Mr. Lysnar: "I will leave the Commission and the public to draw their own inferences. ■ . . I don't agree that the of Mr. Jolly's telegram is cor*rect. My understanding of the position was that he wanted me to promise I would not make this a political issue, and that I declined to make hnn a promise. . . "When one finds an attempt being made to use a position in such a way it shows the. danger there is in allowing a provision like this in any Statute." Mr. Myers: "But it was you who threatened to use what you thought was your political influence." "It was nothing of the kind," disagreed Mr. Lysnar. "I was~asked if I would ...

Sir John Findlay: "Refrain."

' "Yes, refrain. I would not give a statement one way or the other. —I did not consider it was a matter on which the Government should be put out. . . What has a banker got to do with politics? Where is our commercial morality drifting to? Have we not enough to fight against without having that sort of thing?"