Meat Works Inquiry

Hawke's Bay Tribune, Volume XV, Issue 126, 4 May 1925, Page 4

Meat Works Inquiry

An Exporter’s Evidence COMPANY’S .NEGOTIATIONS WITH ARMOUKS. (Per Press Association.) Gisborne, May 2. The Meat Works Commission resumed its sitting this afternoon. William Richmond, sheepiarmer and meat exporter, living in Hawke’s Bay and operating also in Gisborne, gave evidence in regard to the practice with killing sheets. He stated that sheets for works killed sheep were usually sent where required, but on a per pound practice the custom was different. In that case his clients accepted his pay note. He claimed the right to say where his killing sheets should go. His clients would get sheets direct from him. The works were not supposed to divulge his killing sheets without cansent. In February, ]923, witness met Messrs Witters, Cooper, Lysnar, and Carney in Napier to discuss a proposal that Armours should advance money toward paying the bank off and take security over the works. Mr. Carney said he could not undertake a proposal of any description unless Mr. Lysnar got the consent of the Premier. * At that time witness was a partner with Armours in the Hawke’s Bay business, but he was not a partner now, nor bad he been for two years. ’ • At a later interview at Hastings Mr. Carney was against the acquisition of the works by Vesteys, as it would interfere with arrangements for the season. In October. 1923. witness was in Gisborne, and with Mr. Carney met Mr. Lysnar. There wa s a general discussion on the same lines, except that tho price offered by Vesteys to the bank was known and Mr. snar’s suggestion was that Armours should offer tho same sum. That proposal was referred to, and it was suggested that a joint proposal be made bv Borthwicks, Coopers, Vesteys and Armours, but that also was turned down. At no time did Mr. Lysnar suggest selling the works. The only suggestion was a mortgage and preference shares. In regard to the management of the Poverty Bay Farmers* Meat Works, witness had no cause for complaint. He had arrangements to kill 20,000 sheep and was contemplating an increase to 150,000 if the works had been earned on. To Mr. Taylor: At the meeting in Gisborne the suggestion was that Armours should advance £225,000 on loan. He and Armours were to get the advantage of the lowest rate prevailing at the works. If they put through 150.000 they could get a rebate on that number, but they got this concession from other works. Witness admitted that he and Armours would be getting an advantage compared with the actual shareholders. George David Lidgett, formerly chief engineer at the Poverty Bay works, gave evidence that the machinerv in the mechanical portion was in excellent condition. He got all be required for stores. He did not agree with Mr. Jolly’s statement that the works had been starved for some years. In as far as his department was concerned there had been several improvmonts in the works during his term of office. To Mr. Taylor: It was possible Vesteys might have to spend some money on the works, but he could not agree with Mr. Rowlands’* estimate that £30.000 would be required.