DIRTY LINEN.

Star (Christchurch), Issue 17527, 2 May 1925, Page 2

DIRTY LINEN.

DISCLOSURES AT MEAT INQUIRY. MR LYSNAR’S BALANCESHEETS. Peu Press Association. GISBORNE, May 2. The Meat Commission was engaged from 5 p.m. till 10 p.m. yesterday in hearing the evidence of Air F. S. Bov.en, an ex-director of the Poverty Bav Farmers’ Meat Company. He claimed that the shareholders of the company had lost £498.000, and with the hi nk’s loss this made a total ui £sll 000. The loss was due to inUikienfc management, the purchase of an unsatisfactory steamer, and' ths" !:u\it of the National Bunk in ccntbo overdraft." Mr Lysnar dictated to everybody. Of the forty-two works in the Dominion, • theirs, was the only one nl.wh quarrelled witii the Government during the commandeer. After the Admiral Codrington purchase, Mr Lysnar wanted to buy another steamer one also to open a coal mine at Codrington, on the West Coast, and to construct a railway to it. Mr Lysnar uts after an utter impossibility. The claims on the shipment of meat'sent tj America amounted to £200,000, and Mr Lysnar delayed the settlement for two years. Meanwhile the buyers would not operate at the works. The directors had pressed Mr Lysnar to produce a properly audited balancesheet for the Admiral Codrington. He presented a statement showing a credit of £27,000. The directors pressed for an audited balance-sheet, and when this was presented it showed a loss of £24.000. During the time tho works were operating Mr Lysnar presented six balance-sheets showing a profit, and two showing o loss. Ho alleged that Mr Lysnar’s friends had got {Reference in tlie meat shipments. Cross-examined by Mr Myers, witness said that he was one of the stoutest advocates for the purchase of a steamer provided it was a iirst-cTass vessel. When the Admiral Codringten arrived he saw that his money was

Cross-examined by Mr Lysnar, witness said that he had supported the resolution thanking Mr Lysnar for his efforts in connection with the steamer, at the annual meeting. He admitted unwittingly making statements to an inspector of the bank that the company would lose £20.000. and that he had gone about discrediting ttT. com-

TO-DAY’S PROCEEDINGS. Per Press Association. GISBORNE. May 2. The commission resumed this morning, when W. f. CederweJl, manager of the Gisborne Sheepfariners’ F. M. Company, stated, in reference to Mr Jones’s statement that the Meat Board had been responsible for the reduction in killing charges, that lie did not think that the hoard was entitled to any credit fur that, as the company had entirely fixed its own charges. His company did not pay any commission to merchants for buying, -and this placed them at a disadvantage. Mr Lysnar read a cable sent by Mr Jones to Messrs Forsyth* and Fraser regarding Vestey’s purchase of the Waipaoa works stating that the Gisborne sheepfarmers would prefer that Y esteys should take over Lysnar’s works than build new works.

Witness said he had made a careful search and could find nothing recorded to give anyone authority to make such a statement on behalf of his company. Cross-examined, Mr Cederwell agreed that there was no room in the district for three large works. If Vesteys had constructed new works he believed two farmers’ companies would have gone out. If Vesteys had remained at Taruheru the purchase of Waipaoa would not have been a good investment for anyone. This being so, he thought a correct valuation was the market value at the time, and it might have been hard to 1 find a purchaser. Two works could easily handle the stock of the district. He did not think it profitable to have one ship to transport the output of the works. It was essential that early and regular shipments should be made. A. C. Steele, sheep farmer, called by Mr Bowen, said that when he was taking shares in the company Mr Lysnar informed him that the shipping would be kept entirely free from the works account. He considered the shipping department was largely the means of wrecking the company. He was not satisfied about the way the works were being run, and sold his stock elsewhere. Even the directors of the company did that, so that shareholders could not be blamed for disloyalty.