H.—3o

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that the Minister sent for Mr. Rowlands, the head of the Yestey interests in New Zealand, that the Minister conducted a searching inquiry into Vesteys' operations in New Zealand and their resources. The inquiries which he made included the asking of certain questions which had been prepared for him by Dr. Reakes. After further consultation with the Director-General the transfer of this license was ultimately consented to by the Minister. Nelsons (N.Z.) Limited have since then conducted freezing-works at Tomoana, and until November, 1923, they conducted operations at the freezing-works at Taruheru. Yesteys' operations in connection with the Westfield works extend to the north of Auckland, and also are said to be affecting the freezing-works at the Horotiu end of the Auckland Farmers' Freezing Company (Limited). The presence of Vesteys' works at Westfield is also alleged to detrimentally affect the works of the Whakatane Freezing Company (Limited) which are situated at Whakatane. Under cross-examination, however, various witnesses called by Mr. Lysnar had to admit that there might be other causes detrimentally affecting the successful operations of the Horotiu Freezing-works and the Whakatane Freezing Company (Limited). The reports of the before-referred-to Meat Export Trade Committee shows that Mr. W. D. Lysnar, the then Chairman of the Poverty Bay Farmers' Meatfreezing Company, gave evidence before the Committee at very considerable length. It is also apparent that, from the Committee's report, it was known to this Committee that Yesteys controlled the Westfield Freezing Company (Limited) the Whangarei Freezing Company (Limited) and W. and R. Fletcher (N.Z.) Limited. It is interesting to note that part of Exhibit X, put in by Mr. Lysnar before this Commission, is a copy of a letter dated the 25th September, 1917, from Mr. Lysnar, addressed to " E. P. Lee, Esq., Chairman of the Trust Committee." Exhibit X shows that the Trust Committee and the Meat Export Trade Committee were one and the same. The letter in question mentions mentions that the Westfield Freezing-works, the Whangarei Freezing-works, and W. and R. Fletcher (N.Z.) Limited were all operated or controlled by Vestey Bros. The report of this Committee also shows that the Union Cold Storage Company —mentioned during the course of the proceedings of this Commission—was referred to as being the parent company, and also that Yesteys had interests in the United States, England, Australia, New Zealand, and in the Argentine. After the passing of the Act of 1918 the National Government, through the then Minister of Agriculture, the late W. D. S. Mac Donald, thought fit to renew the various meat-export slaughterhouse licenses held in New Zealand by Yesteys. It is, therefore, evident that the National Government did not consider that Vesteys came within what Mr. Lysnar, during the course of this inquiry, frequently referred to as a " prohibited class." It is true that during Mr. Mac Donald's tenure of office the Farmers' Union at Poverty Bay made protests about Yesteys being allowed to acquire slaughterhouse licenses for the Taruheru works, and that it was after these protests that the transfer of the license was consented to by the present Minister of Agriculture, Mr. Mac Donald having died in the meantime. It must also be noted, however, that it was after trouble arose over the sale of the works by the mortgagee, and not by the owners, the Farmers' Union at Gisborne appear to have started active steps to get the Minister of Agriculture to exercise against Yesteys the powers conferred upon the Minister by section 7 of the Act of 1918. A perusal of pages 418 to 424 of the notes of proceedings shows that Mr. Lysnar's chief complaints against the conduct of Yesteys in New Zealand appear to be —(1) Payment of commissions ; (2) buying on the hoof ; (3) lowering the price of beef ; (4) that their own officers do the grading, and that they have the power to make it unreasonably stiff to the producer ; (5) have the opportunity of extracting more fat than they should. According to the evidence of Mr. Rowlands at page 216, Vesteys do pay commissions, but he says it is a practice of the trade not only in Gisborne, Hawke's Bay, but in Canterbury, where Vesteys do not operate at all. There is also evidence by Mr. Foster, who said something to the same effect.