THE MEAT CASE

Evening Post, Volume CX, Issue 52, 29 August 1925, Page 8

THE MEAT CASE

"POLITICAL INFLUENCE"

Under the heading "Political Influence," the Royal Commission which investigated the position as between Mr. W. D. Lysnar, the Minister of Agriculture, and Vestey's, in its report states: —

"During Mr. Lysnar's closing address our notice was directed to certain correspondence and certain incidents. We havfc carefully considered the correspondence referred to and also certain documents submitted to us.

"We do not consider that certain actions of certain high officials of the National Bank displayed complete correctness or were in accordance with the conduct that we should have expected from officials well seized of the facts and of the legal position.

"It must, however, be borne in mind that prior to September, 1923, the Bank had experienced that the various promises and undertakings of certain directors of Mr. Lysnar's company—and especially many of the promises and undertakings of Mr. Lysnar himself—were not carried out as they should have been. The Bank officials had apparently come to the conclusion—and we think rightly—that the company was in an insolvent state; that it was in the best interests of trm shareholders of the Bank that a sale of the works should be effected to the buyer who could give the highest price; that Vestey's were the buyers from whom the highest pric c could piobably be obtained. "Lest there may be any misunderstanding as to the particular actions that we are speaking of, we now state that we do not consider that Mr. Jolly was wrong in showing indignation when he became aware that it was rumoured that Mr. Lysnar was—as Mr. Jolly put it—taking the transaction put of the field of business into the field of politics. We think that in that case Mr. Jolly was in the right, and that Mr. Lysnar was the person who, for his own private ends, was seeking to make use of the political power, which at that particular time, owing to the evenly balanced position of the political parties in the House of E«presentatives he (Mr. Lysnar) possessed. "Lest also there may be any misunderstanding, and that it may be thought or inferred that the Minister of Agriculture or the chairman of the Meat Board was concerned in, or party to, or privy to the actions which we consider incorrect, we state distinctly that there is no evidence whatever to connect these gentlemen directly or indirectly with the actions referred to, and we believe that neither of them was party or privy to such actions. "We also mention that at an early stage of the inquiry it was made to appear to your* Commissioners as if Vestey's in London had used influence with some high official of the National Bank in London in connection with or towards inducing the National Bank to call up this mortgage, so that Vestey's could obtain the Waipaoa works. "A very careful perusal of the files, and confidential files of the National Bank, submitted to us, and of the copies of correspondence submitted to us by Vestey's representative, convince us that there is no foundation for any such belief. "The correspondence between the various officers of the Bank and between Vestey's here and in Londoij, shows that it was the National Bank that was desirous that Vestey's should become a purchaser, and that the Bank in London approached Vestey Ts in London with a view to inducing Vestey's to make as high an offer as possible. "In reference to the attacks which, during, the inquiry and prior thereto, have been made by Mr. Lysnar upon the character and integrity of various people, including-attacks upon the conduct of the Minister of Agriculture in connection with his consenting to this transfer, we feel that we must make some allowances for Mr. Lysnar in view of the heavy financial loss which he admitted he- personally has suffered, and the feelings that he must have towards his friends and others who have also lost considerable amounts of capital, which they invested iinder his leadership. "While these may explain, we do not think they justify the state of mind into which Mr. Lysnar has evidently _ allowed himself to drift—a state of nvind in which he is prone to think that various persons, including officials occupying public positions, have conspired to ruin him personally and also his company. - "During the conduct of this inquiry Mr. Lysnar's attitude and point of view varied from time to time. "As an instance of this, that part of his final address which he read was, it seemed to your Commissioners, very different in tone from many of his extempore remarks. This, we think, is possibly accounted for by the statement made in the first fow lines of that final address, where ho said that: 'With the assistance of his friend, Mr. Johnston,' he had formulated notes!

"The main part of Mr. Lysnar's insin. uations and attacks was made when he was speaking without reference to his notes."