POVERTY BAY WORKS.

Wairarapa Daily Times, 2 May 1925, Page 5

POVERTY BAY WORKS.

MR. LYSNAR’S CHARGES. HEARING CONTI XFED. (By Telegraph —Press Association.) GISBORNE, Friday. Before the Meat Commission to-day, George llantley Coop, a. director of the Poverty Bay Farmers’ Meat Co., gave evidence as to meeting Mr.'Jolly ami offering to raise more shares. Air. Jolly said the shares in the Poverty Bay Company were not worth the snap of the fingers, and urged the directors’, sanction to the sale of the works without the consent of shareholders. Air. Jolly insisted that the bank wanted its money and said that, out of the loss of £B4,ooo,the bank would carry £22,000. Both Alessrs. Lysnar and .lolly said thov would light, to a. finish. Then the directors went to see. the Aleat Board and Air. Jessep said they wer lucky to have Vestev’s offer. Witness denied Air Jones 1 ’ statement that witness had said they were anxious'"for the sale to go through. Air, Jolly.-.urged the importance of letting the sale go through; otherwise the concession of £22,000 would not be given. To Air. Mvers witness admitted that he was prepared to sell the works at a reasonable price. He admitted that Mr Jolly was perfectly fair in defusing to agree to the extra capital. To Air. Taylor: The sale to Yestoy’s at £500.000 would have been to the benefit of shareholders, but he fleyer really thought the Government and tile Aleat Board would have agreed to the sale. James Copeland Field,' farmer and director oFthe company since its inception, gave evidence on the deputation’s visit to Wellington to ask the Aleat Board to include the vessel in its freight contract. They saw Air: Jolly, whoso statement to the directors that the vessel was not to return to New Zealand under the company’s control, witness definitely denied. At the same time, AD. Matthews, another director, questioned Air. Jolly concerning the uncalled capital, asking if, after calling up all the capital of the company, it was the bank’s intention to wind it up. Air. Jolly replied in the negative. To Mr. Myers witness admitted that,’ with calls not coming in, the bank had cause for anxiety. To Air. Jones: He did hot think the bank had stopped the company’s ac-’ count when the directors interviewed flu* Aleat Board. The chairman of the Commission announced 'that the loose leaves of the ■ledger Ii: cl been produced and were now in possession of the Commission. Otto Hansen, fat stock , buyer, gave evidence as to dissatisfaction with the management after Elliott’s control of the works. Air. Lysnar paid the butchers over award rates ,which caused ■ a strike as soon as Veste.v’s took over. During the slump the company advanced £15.700 to some of their clients. Eustace Lane,-a Wairoa farmer, said he sent a shipment of .beef through the Wairoa. freezing, works, but did not get satisfactory results. He not only lost the bepf, but received a debit note against his account. He. thought it was a fine opportunity for Air. .Tones, of the Aleat Board, to distinguish hinv self, but he did not do so. He simply got a letter referring him to the bank. To Air. Jones he admitted that, the bullocks were sent Home just before the Meat Board came into office. DISCREDITING THE COMPANY. GISBORNE, This Day. The Commission was engaged from 5 p.m. till 30 p.m. yesterday hearing the evidence of S. Bowen, an ex-director of the Poverty Bay Farmers’ Aleat Company. He claimed that tlffi shareholders of the company hail lost £408,000, and with the bank’s loss this made the total £541,000. The loss was due to inefficient management, the, purchase of an unsatisfactory steamer, and the laxity of the National Bank in controlling Air Lysnar in connection with the overdraft. Air Lysnar dictated to everybody. Out of 42 works in the Dominion, theirs was the only one which quarrelled with the Government during the commandeer. After the Admiral Codrington purchase, Air Lysnar wanted to buy the other steamer, and also to open vl coal mine at Codrington, on the West Coast, and construct a railway to it. The claims on the shipment of meat sent to America amounted to £20,000, and Air Lysnar delayed a settlement for two years. Aleanwhile the buyers would not operate at the works. Witness detailed the conversations of the local manager of the bank regarding the manner in which the finance to purchase and insulate the Admiral Codrington was obtained. He had not the knowledge of the business and did not think the other directors had. He hail criticised the management and detailed the steps Air Lysnar had taken to have him excluded from the directorate. The directors had pressed Air. Lysnar to produce a properly audited balancesheet of the Admiral Codrington, - and 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 the works werp operating Mr Lysnar presented six balance-sheets showing a profit ,and two showing a loss. He alleged that Mr Lysnar’s friends had got preference in the meat shipments. Witness was satisfied the company could have been more successful by good management. The works were recklessly run. Cross-examined by Air Myers, witness said that he did not pose as a financial expert. He was one of the stoutest advocates for the purchase of-the steamer provided it was a first-class vessel, but when the Admiral Codrington arrived he saw his.money was gone. He did not know that it was contrary to .the bank ’s advice that the steamer was bought. Cross-examined by Air Lysnar, witness said that he had suppdjt’ed the resolution thanking Air--Lysnar for his efforts in connection with the steamer at the annual meeting. He put the ■ facts before the shareholders, and was at the bottom of the poll, That.was not a fair statement of what the shareholders thought. He admitted unwittingly makinf a ‘statement’ to the inspector of the bank that the company would lose £20,000, and that he had gone about discrediting the company. The Commission adjourned at 30 p.m.

an interesting- CABLE. , GISBORNE, This Dny. On the resumption of the sitting '-of the Commission this morning, Mr LySr nar read a cable sent by Mr Jones to Mr Forsyth Fraser, regarding Vestcy’S purchase of the Waipaoa works, stating that the Gisborne would prefer Vestey’s to talcc. oyer, Mr Lysnar’s works than to build new works. . :W. F. Cederwell, manager of the Gisborne Sheep-farmers’ Meat .Company, said fnat 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;