MEAT WORKS COMMISSION.

Otago Witness, Issue 3713, 12 May 1925, Page 32

MEAT WORKS COMMISSION.

EVIDENCE OF MR LYSNAR. GISBORNE, May 5. The Meat Works Commission resumed yesterday afternoon, when further evidence was called by Mr Lysnar. Mr Frederick Tolerton, manager of the Gisborne branch of Nelsons, dealing with the purchase of the Waipaoa works, said that in February, 1923, he had been approached by Messrs Witters and Matthews, who asked if Vesteys were likely to be interested in the purchase of the works. Witness said that Mr Rowlands was the man to deal with, and usked if they had the authority of the directors. They reElied in the negative, but said that Mr •ysnar had agreed and the other directors would agree. An appointment was rnado with Mr Rowlunds, and witness, Mr Matthews, and Mr Witters discussed the matter. Later in the year Mr Rowlands, Mr Vestey, Mr Trott (London), and Mr Duncan (construction engineer) visited the three local works, but no mention was made of buying Waipaoa. At the last-named Blace8 lace Mr Rowlands conferred privately with tie directors. At the sale of the works ► v witness bid £225,000, having received inL\itructions from his Hastings office. Witness ■ /detailed the expenditure necessary since W /taking over tho works, the total amount in•'Volved being £29,60''. To Mr Lysnar: Viey guve their clients’ Btoclc preference in ! Uing. To further ns witness said it Was proposed to - up the trucks insulated with worn. livings. He was not •ware that the 1 !uay Department provided half the ti.ui.* in this district

A discussion arose on a point raised by Mr Lysnar that when the Taruheru works were transferred in 1919 from Nelsons to Vesteys, ihe laiter did not take the proper steps to secure authority to carry on. The Chairman said he wanted to be perfectly fair to Vesteys, and would like to hear someone on their behalf to express an opinion as to the admissibility of evidence which might result in a charge being brought against the firm for illegal action. Mr Lysnar contended that Vesteys had been operating twelve months before it took tho necessary steps under the Slaughtering Inspection Act to secure a transfer of the license.

Mr Taylor said he felt certain that the required evidence could be procured from the Government records at Wellington, and these would show that the Government’s action bad been quite correct. Mr Lysnar proceeded to put questions to Mr Tolerton, Vesteys’ local manager, in regard to commissions paid to merchants. The Chairman said they were concerned with what happened at the time when Vesteys were the owners. Other works were not now concerned with Vesteys’ present action, whic-Ji might be the subject of another tribunal, which might have to consider whether Vesteys’ license should be renewed or revoked. He ruled, therefore, that Mr Lysnar could not obtain evidence in regard to commissions. Mr Lysnar, giving evidence, said lie desired to contradict the assertion made by Mr Bowen in regard to the letter alleged to have been given to him by Mr Irwin concerning tallow. Witness denied that there were any terms or conditions made by Mr Irwin concerning the giving of the letter. In connection with tallow Mr Bowen had spoken of Mr Elliott’s gcod management. Witness produced an account between Messrs W. and R- Fletcher concerning a consignment sold to them in June, 1919. ’lhe company had recorded a minute that all by-products were to be sent Home, and while he was away Mr Elliott had made negotiations for the sale of a large quantity of by-products. Although tne sale was incomplete when witness leturned, it was doubtful if it could be rescinded, and as a compromise the company allowed Fletchers a number of casks at £77 per ton. The portion sent Home brought £l2O. and there was a considerable loss to the company on the tallow sold in New Zealand. There were general instructions to ship everything. Mr Jones: What date were the instructions given? Mr Lysnar: At various times. Here is a minute in 1917 that frozen sundries should be sent Home. Witness: Instructions were given later. Mr Jones: But this minute is specific. Witness: That was in 1917, and those instructions still stand, but further instructions were given in later years. The Chairman: Who was chairman when those minutes were confirmed.

Mr Jones: The -witness (Mr Lysnar) was. The Chairman (to Mr Lysnar): There ara initials where the alteration is made. Are they yours?

Yes. It is evident that the minute does not coincide with your recollection. Witness: The instructions were to ship everything. But the word by-products is struck cut, so that Mr Elliott was not instructed to ship this product. Witness: The general instructions were to ship everything. To the Chairman: There was a minute on the books asking Mr Bowen to resign from the directorate. It was seconded, but an amendment was carried that no action be taken.

Mr Bowen: Did you instruct Mr Borham in August not to show the offers to to Win. Anderson and Gordon Woodroofe of £lO7 and £IOB per ton, saying you could get £l3O per ton for the same fat in Germany for making margarine? I deny it. I never told anyone that. Was it not a fact that all the by-products were to be shipped.

Yes. Did you ever break that resolution ? The directors might have disregarded it before selling in some instances. Was it not tho object of putting the resolution on the books to take the power out of Mr Elliott’s hands and relegate it to vourself ? No. He went near to losing us between £15,000 and £20,000 at one time. The commission then adjourned to Wellington sine die.