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APPENDIX A. COPY OF LETTER PROM MR. W. DOUGLAS LYSNAR (ADDRESS, P.O. BOX 82, GISBORNE, NEW ZEALAND) TO THE RIGHT HON. W. E. MASSEY, PRIME MINISTER, WELLINGTON, DATED 14TH JUNE, 1924. Dear Sir, — I exceedingly regret that I regard it as my duty to apply to you, as head of the Government, to remove Mr. David Jones as Government nominee from the New Zealand Meat Producers' Board. I may say at once that I am very anxious that should not be prejudiced, as I recognize there are great possibilities for the Board to do good, but I am satisfied that with the personnel of the Board as it is to-day no practical good will be derived by the producers, for under the leadership of Mr. Jones the Board's attitude is how not to do anything for the producers, but how to placate the trust and combine elements. This application is made upon the following grounds (1.) That Mr. Jones and the Board are not carrying out the spirit and intention of the Act by protecting producers in handling and marketing their produce. (2.) That the Board has failed and neglected to handle producers' meat as originally contemplated and promised by the Board when established. That except in a few matters the action of the Board has favoured the big trusts and combines more than the producers. (4.) That, in connection with the sale of the Poverty Bay Farmers' works to Vestey Bros., Mr. Jones and the Board prejudged this matter and came to a decision without giving the farmers' company affected any opportunity of being heard or considered, notwithstanding that they applied to be heard. (5.) That through misleading and inaccurate information Mr. Jones got the Board to exclude the " Admiral Codrington" from this year's current freight contract, to the serious loss and detriment of the company concerned, and without giving the company an opportunity of being heard. (6.) That Mr. Jones and the Board are opposed to reduction of freight by competition, a.nd have eliminated from the freight contract a clause that was always provided in freight contracts prior to establishment of the Board, to the effect that if any other boat in the trade was prepared to carry freight at a less rate than the contract stipulated they must reduce the freight or the owner was free to ship by boats outside the contract. (7.) That the letter written by Mr. Jones to myself, dated the 16th April, 1924, a copy of which is attached hereto marked " Al," discloses a bitter, hostile, and reckless attitude unworthy of any person holding such important functions under such special authority as Parliament has given to the New Zealand Meat Producers' Board, and, rega.rdless of all other grounds, I respectfully suggest that the hostile tone, wording, and inaccurate statements in this letter are sufficient grounds in themselves to warrant the Government removing their nominee from office, as it is quite out of the question for any person holding such an extreme attitude as the letter discloses to impartially administer justice in accordance with the spirit and intention of the Act in connection with matters arising within the jurisdiction of the Board. Atta.ched marked " A 2 " is a copy of my reply to the above letter, and also attached marked " A3 " is my prior communication to Mr. Jones notifying him of the grounds I proposed to ask his removal upon. I have had no reply to my letter marked " A 2." Regarding Nos. J and 2 above : I draw your attention mainly in justification of these that it was one of the main conditions of the establishment of the Board that they were to handle and market the producers' meat, and for this purpose the Government were prepared to guarantee the necessary finances to give effect to the intention of the Act, and upon the appointment of the Board it was distinctly stated that they would as soon as possible take this matter up and not later than the following year aiter the Board's appointment—see letter signed by Mr. Jones marked "A 4 " attached —and up to the present day they have done nothing in the matter. I have on several occasions inquired from members of the Board when they are going to do this, but have not received any intimation ; and on the 29th March, 1924, I wrote the following letter to the Board, to which I have had no reply : — " As one who supported the establishment of your Board upon the understanding that you were to take up the question of selling our meat wholesale in England and make advances against same, I would be glad to know if it is your Board's intention to exercise its functions in this respect during the present year. "lam one who has little or no faith in the facilities for handling our produce in England at the present time, and am desirous of taking advantage of passing my meat through your Board's hands in accordance with the spirit and intention of the Act." I may say that the Board is taking no steps whatever to protect the producers in the present depressed condition of the meat-market in England. The discrepancy between the wholesale and the retail price of New Zealand meat is not warranted, and I suggest that it was one of the first duties of the Board to see that the producers were protected in this regard, while nothing whatever is being done by the Board in this connection.