MEAT WORKS INQUIRY.

New Zealand Herald, Volume LXII, Issue 19031, 30 May 1925, Page 10

MEAT WORKS INQUIRY.

MR. NOSWORTHY'S DEFENCE. AGREEMENT TO TRANSFER. /RIGHTS OF BRITISH JUSTICE. / NO REASqN FOR REFUSAL. [DY,TELEGRAPH. —I'IIESS ASSOCIATION.] . .. . 7 / v WELLINGTON, Friday. Evidenco relating to tlio salo of the Poverty Bay Farmers' Moat Company to Vestcvs Was given before the Royal Commission by Sir Francis Bcli and t he Hon. W. Nosworthy to-day. Sir Francis 801 l said that on September 17, 1923,, while ho was Acting-Prime .Minister in the absence of Mr. Masscy in England, ho received Mi". Lysnar in his room. He and Mr. Lysnar were on \ery friendly tonus; Mr. Lysnar at considerable length set. out his relations with the National Bunk. It. was not a discussion, as witness took no part in :t. Mr. / Lysnar was not very coherent in his state* . meat. He. said tho bank had unduly pressed the salo of tho concern, which was quite solvent and able to carry on if given time. He also said the bank was selling to Vcsteys, which was a meat trust. Involved in the. first point was an allegation that they were selling at an undervalue. Alt", Lysnar pressed upon him that he should withhold an export license or. refuse to agree to the transfer. He thought Mr. Lysnar misunderstood witness' position. The export license was purely a departmental matter, entirely at the descrction of tho Hon. W. Nosworthy, and the only right witness had was to request his colleague to refer tho matter to Cabinet. He told Air. Lysnar so, and also told him he would not lift his little finger to stop tho bank's action and Air. Lysnar assented. As to the assertion that the bank was selling at undcr-value Sir Francis Bell said he agreed to write to the bank and, pending the arrival of Mr. Nosworthy from'the South, to have it deferred. Had he known, however, that other works wore operating in the district the letter would not'have been written. Mr. Lysnar did not cross-examine Sir Francis Bell.// Mr, Nosworthy's Procedure. The next witness was the Hon. W. Nosworthy. With regard to an interview with Air. Rowlands, general manager in New ' Zealand for/vesteys, Air. Nosworthy said: "I examined Air. Rowlands- on every point and I warned him if there was anything I considered contrary to public, interest I would exercise tho powers whieji I held under Uio Act. If I had "been satisfied in my own mind that all was not \yell I would have had no hesitation in cancelling the license without even referring the matter to Cabinet, or any of my colleagues. I would bo prepared to stand up to my actions." What ground did Air. Lysnar offer in objecting to transfer of the license?—Ho objected to their becoming the purchasers of the works, as they were a meat trust. Mr. Lysnar said the financial position of the company was all right ? —Yes. He indicated that that was so. Later Mr. ; Nosworthy said that Mr. Lysnar had tried to get him to make a statement that he would do what he could to stop the transfer, but he would not commit himself. Sir John Findlay: Was anything said to you by Air. Lysnar as to your duty?— I pointed orit to Mr. Lysnar that I had a duty to perform and' that to tho best of my ability I would do that. I told him I could not interfere between debtor and creditor, and that if I did so it would be against the principles uf British law. Tho Minister stated that he had obtained a/report from Dr. Iteakes, and that the report made no recommendation that the license be cancelled. When he returned from the South Island he decided without reference to Sir Francis Bell to refer the matter to Cabinet. He did this because he knew what the political position was and that there would probably be more trouble over this license than over any other. The matter was considered by Cabinet ptt September 25 and referred to the Acting-Prime Minister and himself to take action. Ho and Sir Francis Bell discussed the whole position and they came to tho conclusion that there was no reason why the license should not bo granted.. Sir John Findlay: It is suggested by Air. Lysnar/ that you did not give him an opportunity of being heard '!■— l gave him every opportunity. I do that for everybody. Government Pledges Kent, Air. Lysnar suggested that the pledges of tho Government have not been kept in regard to trusts?— That is absolutely incorrect. I have described the precautions that we took. Tho previous Government let Vesteys into the country. The present Government has control over . trusts and the result is that at present we have no justification in regarding Vesteys with suspicion. Tho policy of tho Government has been to see that no trust is acting to the detriment of. the interests of this country. Legislation on tho Statute .Book enables you to control them?—l do not think there is any more arbitrary legislation against trusts in any country in the, world than tho legislation passed between 1908 and the/ present time. I do not think any other country has anything so drastic by a long way. Another charge made against you is that you haVO listened to big financial institutions and not to the farmers ?—I would like to ask Air. Lysnar to name one financial institution which has even tried to bring pressure to bear on me. His statement is absolutely untrue. How about the farmers?— All my political life I have been doing all I could to assist the primary producers. When Air. Lysnar rose to commence his cross-exam iiiatioi;< Mr. Nosworthy remarked: " Now, come on, let me have it. all. You liavt the opportunity, and I am ready for you." Mr. Lysnar began with references to speeches in the House. Ho quoted Hansard and took what the chairman said and Air. Lvsnar agreed was a preliminary canter. The chairman gnfve a hint that the commission was not to be used as a preliminary to the general election, and , Mr. Lysnar agreed to limit his cross- • examination as much as possible. Financial Landslide Proventocl. Questioned as to why he did not refuse 1 a transfer of the Poverty Bay Company's ' license to Vesteys, Mr. Nosworthy asked : "Why should 1 bo any more unjust to. ] Yestey Brothers, who had not broken the law, than to anybody else?" If any- ' thing had been done wrong, he added. Jet 1 Air. Lysnar take action against the Gov- ( eminent-. * Mr. Lysnar: Von knew of complaints by farmers that Vesteys were eating their ' vitals out? (Laughter.) f Mr. Nosworthy: I know enough about ! farmers trt know that their complaints are 1 not. always, correct. You said in' the ' House that Vesteys were eating the vitals ' out of everybody, but you were dealing ' with Vesteys yourself. What about your 1 vitals? (Laughter.) " I Mr. Lysnar: We won't discuss thai. (Laughter.) ' 1 1 ATiv Nosworthy said he realised that if a sale to perhaps the only purchaser was missed it. might lead to n liimneial I landslide that would be most, detrimental ! not' only, to the farmers of (be Poverty Bay district but to the Dominion as a whole. He felt that if the Government interfered with the bank's right' to sell tho works it would have a most important, effect on farmers who wanted to bot'row and upon the credit of the Dominion as a whole. |[« w -as of opinion that a transfer of ihe Poverty Bay license to Vesteys was in the best interests of the Poverty Bay farmers and the Dominion as a whole. In spite of all the criticism lie had received he would under the sfium circumstances do tho same thing again. The commission adjourned till Monday. ,