KILLING PREFERENCE

Manawatu Times, Volume XLIX, Issue 2672, 5 May 1925, Page 5

KILLING PREFERENCE

Poverty Bay Meat Works Inquiry

EVIDENCE OF EARLY SALE OFFERS.

[Per Press Association.] GISBORNE, Last Night.

The Meat Commission was resumed this morning, further evidence being called” by Mr Lysnax - . Alexander Watson Muir, buyer for some years for Vestey’s deposed that during 1921 he was instructed that if owners wished to freeze on their own account, they would have to do so under the consolidated rate and the moat went to Vesteys in England for retail sale. It was understood that Vestey’s clients could not freeze on owners’ account through any mercantile firm.

J. G. McCullough, sheepfarraer, of Whakatane, chairman of directors of the East Coast Freezing Company, deposed that Vestey’s sent the bulk of the stock purchases fx-om. the Whakatano district to Westfield, 150 miles away. The only time they sent It to the farmers’ workis was when it was sold on that express condition. During the past twelve months, 12,000 cattle and 60,000 sheep had been moved by rail from the district, the bulk of them by Vestey’s, whose operations were detrimental to the Farmers' Company, which was only cax - rying on with great difficulty. The farmers could not resist the temptation to take the higher price offered by Vestcy’s. It was essential that something be done to protect the farmer from himself, otherwise the whole stock business of the country would pass into the hands of proprietary concerns. Cecil Albert Delautour, for 21 years chairman of directors of the Gisborne Sheepfarmers’ Company, stated that from his experience ho viewed with the gravest apprehension the strengthening of Vestey’s in the district.

The chairman said he was not going to accept general evidence regarding trusts, and in the absence of counsel for the other side, the Commission was going to watch their interests carefully.

Mr Delautaour ■ said he desired to speak as to the effect on the farmers of the district of the consent of the Meat Board to the sale of the works by the mortgagee. Ey the acquisition of the Waipawa works, Vestey’s had so greatly increased their strength that co-operative companies could not possibly stand up to the opposition. The district had great possibilities for future development, and while two works by increasing their capacity could cope with the work, there were other aspects to be considered. On being questioned regarding his experience of the Meat Board, Mr Delautour said he did not believe the Board could successfully have undertaken the marketing of meat at Home.

Francis Stafford, sheep farmer, gave evidence to a similar effect. Charles Nelson Foster, stock buyer for Vcstey's, deposed that he bought on exactly the same basis here as anywhere else in New Zealand. There was no compulsion to ship through the firm. Frederick Tolerton, manager of the Gisborne branch of Nelson's, said it was true that in the 1920-21 season, an endeavour had been made to get a client to consign through the C. C. and D. Company. Clients who consistently consigned to that company would support the firm’s atcion, as they continued to secure good prices. Since that season open works had been kept. In dealing with the purchase of the Waipaoa works. Witness said in February, 1923, he had been approached by Witters and Matthews, who had asked if Vestey’s were likely to be interested in the purchase of the works. Witness said Rowlands was the man to deal with and asked if they had the authority of the directors. They replied in the negative, but said if Lysnar agreed, the other directors would agree. An appointment was made with Rowlands and witness. Matthews and Witters discussed the matter. Later in the year, Rowlands, Yestey. Trott (London) and Duncan, a construction engineer, visited the three/ local yyorks. but no mention was made of buying Walpao. At the latter’s place, Rowlands conferred privately with the directed At the sale of the works, witness bid £225,000, having received instructions [from (the Hastings office. Witness detailed the expenditure necessary since taking over the works, the total amount, involved being £29,000. To ’Mr. Lysnar, witness said they gave clients stock preference in killing. To further questions, witness said it was proposed to scrap trucks insulated with wood shavings. He was not aware the Railway Department provided half the trucks in this district and the company half. In fact, he did not know any other company works in New Zealand under such an arrangement. He had been unable to obtain an arrangement with the Railway Department for the supply of trucks.