MEAT WORKS INQUIRY.

Manawatu Times, Volume XLIX, Issue 2670, 2 May 1925, Page 7

MEAT WORKS INQUIRY.

Further Light On Sale Negotiations

CONSIGNOR WHO LOST ON . SHIPMENT. [Per Press Association.] GISBORNE, May 1. The opening stages of the Meat Commission this morning were devoted to further controversy regarding the missing journal. Mr. M. Myers, ICC., intimated that a search of the National Bank premises had been unavailing. . , . Mr. George Witters, resuming his evidence, said he would admit that representations to the Meat Board regarding the Admiral Codn'Mgton had been left almost entirely to the chairman. There would have been a much better chance of selling the boat if U had been in commission. To Mr. Jones; He was not aware that Mr. Lysnar had declared to the Commissioner of Taxes that the company had no funds to carry on and even if the vessel was sold the shareholders would not get anything out of it. Mr. Jones read Mr. Lysnar s sworn statement to the Commissioner to that effect and asked was it true. Mr. Witters replied that at the time it was made it appeared to bo correct. He thought it was all assumption.

Mr. Jones: “What arc your grievances against the Meat Board ! Witness: “You have enlightened mo to some extent during the last day or two, but I think that from the outset you should have taken us Into your confidence as well as Mr. Lysnar.” Mr. Jones: “Was I not entitled to assume that Mr. Lysnar would inform his co-directors?” Witness: “1 don’t think so, because you said you had no confidence in Mr. Lysnar.” , , _ , “What do you think the Meat Board should have done ?" Witness: “That is not for mo to suggest. Until within 24 hours of the sale we thought everything would be right. We left you after the interview believing you would keep an open mind on the matter. On returning to Gisborne wo sent you a request to meet a deputation and in reply were informed that the board would be pleased to receive a deputation. Your communication saying you could hear our views was written after you had given consent to ithe sale; la that I think you were guilty of utter deception and for that I will never forgive you.” Mr, Jones: “You will do so! Then we will get a little further. More About Missing Journal. Regarding the missing jojurnal Mr. Porter, an whence-exam-ined, said he was still satisfied the journal was among .the books given to Mr. Hamilton, Mr. Lysnar’s secretary. Since yesterday, Mr. Lysnar had shown him leaves from the ledger relating to the Admiral Codrington. Mr. Lysnar said he was quite prepared to show thorn to the Commission.

The chairman: “You have told us that before, Mr. Lysnar, and we have told you we are hot satisfied. It is no use reiterating the position. The Commission is not going to have its hands tied by any conditions imposed by you.” . Mr.Lysnar said the only condition was that the Commission should not divulge to the other side information deterrent to the company. The chairman: "The commission is going to order the leaves to be produced before it. Whether the information will be disclosed remains to be seen, but the Commission is not going to bargain with you.” Mr. Myers said Mr. Witters had raised doubts whether Mr. Lysnar was entitled to appear o':i behalf of ,tho company. Word Without Bond Not Enough.

Mr. Lysnar; "I absolutely give you an assurance that I luive authority to appear.” Mr. Jones; "That is not enough. Mr. Lysnar: “You can have it under seal.” The ow'ncrs had said he was appearing before the Commission in a dual capacity and was entitled to be cited as a party. The chairman said the Commission had already considered the point and was not going into it further. He was quite certain Mr. Lysnar would mot appear before the Commission and have the books in his possession without authority. Mr. Wittor’s evidence was then resumed. On being questioned by the chairman, he said the financial position in 1923 was not as rosy as it was to-day, some of the directors finding it not easy to meet their calls and because of this, the directors were prompted to. endeavour to sell the works. To Mr. Lysnar: The delay in apcommission paid by Vestey’s to agents a desire to thresh the matter out with the Minister first. Vestey’s a Menace. Thomas L. Powdrell, farmer, of Waroa, director of the Wairoa Freezing Company was the next witness. Ho said that during the last two seasons Vestey’s had operated freely in the Wairoa district, and wore affecting th e company considerably. He regarded them as a very serious combine. The Wairoa works were losing business through Yestey’s and were faced with calls for further capital for killing away from the works. The Commission paid by Vestey’s to agents gave them a big advantage. He thought that if Vestey's continued to operate in the Wairoa, as they had been doing, the Wairoa works would go the same way as the Waipaoa works.

Mr. Powdrell, in continuing, said he thought the Meat Board had not functioned to the fullest extent; it should do something to protect the farmers from a combine. It should arrange marketing on the same lines as the butter control and could also assist farmers financially. His beef had been stored so long in Vostey's works in England that he had got nothing for it, but had paid SO/- per head tor the privilege of sending the moat Home. Most of this had gone to Vestey's.

To Mr. Myers, witness said that during the last two years, the shareholders' had been tempted to sell stock outside the district. Mr, Myers; “They are not loyal ,to the company ?” Witness: “Farmers are unable to nrotect themselves from the big interests." Board’s Attitude Over Sale. Alexander Sinclair, another director of the Wairoa Company, gave corroborative evidence. Ho agreed that Vwtcy’s were

to the freezing , company and the farmers of the district. Bank Insisted.

George Hartley, co-op director, Poverty Bay Farmers' Meat Co., gave evidence as to meeting Mr Jolly and offering to raise more shares. Mr. Jolly said shares In the Poverty Bay Company were not worth a snap of the fingers and urged the directors to sanction the sale of the works without the consent of the shareholders. ’Mr. Jolly insisted that the Bank wanted its money and said out of the loss ofl £BI,OOO, the Bank would carry £22.000. Both Lysnar and Jolly said they would tight to a finish, then the directors went to see the Meat Board and Mr Jessep said they were lucky to have Vcstey’a offer. Witness denied Mr. Jones’ statement that witness had said they were anxious for the sale to go through. They met Jolly next morning and he urged the importance of Jetting the sale go through; otherwise the concession of £22,000 would not be given. They gave Jolly .to understand they would sooner lose I'fthoir money than their reputation among the shareholders. To Mr. Myers, witness admitted he was prepared to sell the works at a reasonable price. Eustace Lane, a Wairoa farmer, said he sent a shipment of beef through the Wairoa freezing works, but didn't get satisfactory results. He not only lost his beef, but received a debit note against his account. He thought it was a fine opportunity for Mr Jones, of the Meat Board, to distinguish himself, but he didn’t do so. He simply got a letter referring him to the bank.

To Mr Jones: He admitted the bullocks were sent home just before the Meat Board came into office.