MEAT WORKS SALE

Greymouth Evening Star, 30 April 1925, Page 8

MEAT WORKS SALE

EVIDENCE AT GISBORNE 1 (Per Press Association ' ■ GISBORNE, April 29. At the Meat Commission of Inquiry George Withers, Deputy-Chairman of the Poverty Bay (Company stated that in May, 1922, he had been present -at the conference with Mr. Jolly, and he the lattet’s statement the Directors agreed that the steamer Admiral Codringt.on should not return to New Zealand under the control of the Company. The Meat Board was then waited upon to make a contract for the ship. When, the directors met Jolly >in May, Matthews had asked if the Bank intended winding the Company up, and Jolly had replied in the negative. After Vesteys had made their offer, witness, Lysnar and Coop went to Wellington and met Jolly on September 11 and 12. The conference had been opened by Lysnat, who said they wanted to go into this miserable business. Lysnar" said,/too, that only the action of the Bank could force the company to bankruptcy. Jolly tried to persuade them to accept Vestey’s offer amicably, and without making the Bank do the dirty work. Jolly told them they could agree to the sale without Tpfprnnc.p to the shareholdeis. Wit-

reference to *. ness told him he would not agree to 1 such a proposal, just to save his own , skin. The legality of Jolly s sugges- ' tion was also questioned, and even ’ when it was confirmed, witness iei peated his assertion that he would , not betray his fellow shareholders. > The directors were prepared to do l anything rather than have the works sold, and, it was suggested that fur- ■ ther shares be issued. Jolly asked for i time to think the matter over, and the conference adjourned until the following afternoon, when Jolly said he would not consider the alternative proposal. Reference was made to the serious loss' to the guarantors, and Jolly' said the Bank, too, would be a heavy loser. He offered them a con-, cession of £22,000, but the Directors refused to agree, and expressed a determination to fight to a finish. Lysnar had said he would stop the sale, he, Jolly being in a state of keen excite’ment. Jolly had said. “Lysnar, you have as much chance, of stopping the sale, as you have of leading Gabriel’s choir in. Heaven, The conference had lasted until about 5 o’clock in the afternoon, when witness and Coop ,left Lysnar with Jolly. Later they left and in the office of the Board they met David s Jones and Lysnar. The latter said he was determined to stop the sale, and asked Jones to keep an open mind

e upon the matter until the Company s side had been placed before them. “ Jones appeared to favour a sale to s Vestey’s, but had given the Directors r to understand that nothing would be i done until the Company’s side had been heard. They were told in re-. t gard to the works that the company would get a fair deal. The followi ing morning Jolly said that any offer made on the previous day would [ be contingent upon their efforts, in i connection with the other directors. ; Jolly was wrong when he said that ■ r either witness or Coop ■ had met him in the street and said they had come to the conclusion that the bank was doing the right thing in forcing the sale. ’ Following a suggestion made by Black to witness and Matthews, that Vesteys would buys the works, they went and saw Tolerton, who would assume no authority in the matter, but arranged an appointment for them with Rowlands in! Auckland. Witness and Matthews were acting “ without the authority of the Direc- _ tors. Witness then telegraphed to Lysnar and arranged for him to meet them in Auckland on February 20. They met in Auckland, and interviewed Rowlands. Lysnar asked Rodlands if Hetley was acting for Vesteys, and received a reply in the negative. After they had gone to grips, they asked £650,000 for the works and the ship, this representing £400,000 for the works, £150,000 for

5 the ship, with £lOO,OOO for the good--5 will. Rowlands had contended that ' there was no goodwill, and the other values were also disputed. Lysnar 1 then asked for a price to be put on ; the Taruheru Works. It was intended ’ to endeavour to arrange, in conjunction with the Gisborne Sheep Farm- ‘ ers Co., to buy the works out and ’ close them down. Lysnar had said he would endeavour to stop Vesteys rei building, as there was no room for three large works in the district. The ■ works had not been definitely offered L to Vestey’s .at that interview, Rowlands being told that nothing could be dong without the sanction of the" > shareholders. His next meeting, with i Rowlands was in May, when they accidentally met in Gisborne, Rowlands ' being accompanied by young Vestey. Rowlands had said he would like, to 1 go over the works, and witness ar1 ranged for an inspection. The inspection was made, and subsequently Lysnar asked Rowlands if he had ' been advised of price put on the Taruheru Works, and received a reply in the negative. On that occasion witness' had never suggested that Vestey’s should make an offer for the Waipaoa Works. He denied emphatically that he had said to Rowlands, “For God’s sake, get an offer for the works!” At no time had the bank indicated that it intended pushing the Company to extremes. When • the steamer Admiral Codrington agreed to give a strong concession at Home she got a full cargo. Then the Board complained. The directors! took legal advice, which was in their favour, and eased their consciences. He didn’t know a concealed shorthand writer took notes of their interview with the Board until afterward. Mr. Lynsar said: What took place showed what befel deputations to the Meat - Board. Mr. Jones: We are not sorry we took notes. Witness said he couldn’t say the Admiral Codrington had wrecked the Company. After the Board was established they intended selling her if the price were favourable, but to run her in the meantime. Witness denied that Lysnar alone was responsible for the purchase of the ship. He said other Directors favoured the proposal. He himself was easy. His opinion was the Meat Company would have recovered if the Meat Board had not found a ready buyer in Vestys. Mr. Myers: Would you have sold the vessel to Beelzebub, if you had had a chance? Witness: I don’t know that chap'! (Laughter). The proceedings welre adjourned till the following day.