MEAT WORKS.

Press, Volume LXI, Issue 18371, 2 May 1925, Page 13

MEAT WORKS.

ENQUIRY INTO SALE.

YESTERDAY'S EVIDENCE,

(r*BSB ASSOCIATION A*.>

GISBORNE, May 1

Tho opening stages of tlic Meat Commission's sittings tliis morning wero devoted to ft further controversy regarding tho missing journal. Mr Myers said that a soarcli of tho National Bank premises luul been unavailing. George Witters, resuming his evidence, said he would admit that representations to tho Meat Board regarding tho Admiral Godrington had beeu left almost entirely to tho chairmanThero would liavo been a much bettor chance of selling tho boat if it had been in commission.

To Mr D. Jones: Ho was not awaro that Mr Lysnar hfld> declared to tho Commissioner of Taxes that tho company had no fluids to carry on, and even if the vessel was sold tho snareholders would get nothing cmt of it. Mr Jones read Mr Lysnar's eworti statement to the Commissioner to that effort and asked if it was true.

The witness replied that at tho timo it was made it appeared to be correct. He thought it was all assumption. Mr Jones: What are your grievances against the Meat Board? Witness: You have enlightened mo to some extent during the last day or two, but I think from the outtot\vuu should have taken us into your confidence c.s well as Mr Lysnar. Mr Jones: Was I not entitled to assume that Mr Lysnar would inform his co-directors? Witness: I don't think so, becauso you saidi you br.U no conlidoncc in -Mr Lvsnar.

Mr Jones: What do you think tho Meat Board should have <iono?

Witness: That is not for mo to suggest. Until within twenty-four hours of the falo we thought everything would be right! We left you after the interview believing that yon would keep an open mind on the matter. On returning to dishorn©, we sent a request to meet a deputation, and iu reply were informed that the Board would he pleased to receive a doputa* t-ion. Your communication saying you could hear our views -was written after you had given consent to the sale, in that I think you were guilty of utter deception, and for that I ""'ill never forgive you. Mr Jones: You will do so when we get qi little further. Veateys' Operations in W&iioa. Thomas L. Posvdrell, farmer \Voiroa, and a director of tho Wairoa Freezing Co.; eaid thr.i during the last two seasons Vesteys had, operated freely in the Wairoa district anil were affecting the company considerably. He regarded them as a very serious copibine. The commission paid by Vesfeyf to their agents gave them a big advantage. If Vesteys continued in Wairoa as they had "been doing, tho Wairoa works would go the same way aa the \Vaipaoa Works. Mr Powdrell, continuing bis evidence, said he thouglit tho Meat Board ha<i not functioned to its fullest extent, and' should do something to protect the farmers from a combine. It should arrange marketing on the Fame lines as the butter control, and it could also assist farmers financially. _ His bcof had been stored eo long in Vesteys works in England that he hod got nothing for it, but had paid 30s par head for the privilege of" sending the | meat Home. Most of this bad gpne to Vesteys. ; ' To Mr Myers: "Witness said that during tho last two years shareholders liad been tempted to sell stock and kfi outside the district'. . : i Mr Myers: They are not loyal to the company. Witness: Farmers are niwjWe to proI tect themselves from tho big interest*. Alexander St. Clair, another/director of the Wairoa Company, gave corroborative evidence. He agreed that Vestey's operations were detrimental to the freezing company and farmers of the district.

A missing Journal. Regarding the missing Journal; Mr i Porter, accountant, was re-e*amined. He said he was still' satisfied the journal was amdng the books given to Mr Hamilton,' Mr Lysnar's -secretary. Siuoe yesterday Mr Lysnar had shown him leaves from the ledger relating to the Admiral Codrington. Mr .Lysnar said he was quite prepar. Ed to'show thonji to ..the-Commission., The chairman : You havo told us that before, Mr Lysnar, and we have tojd vou we are not satisfied. It is no use reiterating the position, The Connnission is not going to have its hands tied by any conditions imposed by you. Mr Lysnar said the only conditipn was that the Commission should not divulge td? the other side information deterrent to the company. lie chairman,; The Commission is going to order the leaves to be produced before it. Whether the information will be disclosed remains to be seen, but the Commission is not going to bargain with you. . Mr Myers said that Mr Witters had rained doubts whether Mr Lysnar was entitled to appear on behalf of the I company. Mr Lysnar: I absolutely give an assurance that I have authority to appear. Mr Jones: That is not enough. Mr Lysnar: You can have it under seal.

Tlie chairman said the Commission already had considered the point and was not going into it further. He was quite certain that Mr Lysnar would not appear before the Commission and have the books in his possession without authority. ' Mr Witters's evidence then was resumed. Questioned by the chairman he said the financial position in 1923 was not so rosy as it was to-day, somo directors finding it not easy to meei their calls, and because of this the directors were prompted to endeavour to sell tho works.

To Mr LvEiiar: The delay in proaching the Meat Board was due to the desire to thresh the matter out with the Minister first.

A Director's Evidence. George Hartley Coop, a director of the Poverty Bay Farmers' Meat Co., gave evidence aa to meeting Mr Jolly and offering to raise moro shares. Mr Jolly said shares in Poverty Bay were not j worth a snap of the fingers, and urged 1 th; directors to sanction the sale of the works without' the consent of the shareholders. Mr Jolly insisted that the bank wanted its money, and said that ont of a loss of £84,000 the bank would carry £22,000. Both Mr Lygnar and Air Jolly said they'would fight to a finish. Then the directors went to see the Meat Board, and Mr Jessep said they were lucky to have Vcsteys' offer. Witness denied Mr Jones's statement that witness had said they were anxious for the sale to go through. They met Mr Jolly next morning, and he urged the importance of letting the sale go fihrough, otherwise the concession of £22,000 would not .be given. They gave Mr Jolly to understand they wonld sooner, lose their money than their reputation among the shareholders. To Mr Myers, witness admitted he was prepared to sell the works at a rear aonable price. Mr Jolly was perfectly fair in refusing to agree to extra capital. To Mr Taylor, witness admitted a sale to Vesteys at £500,000 wonld bete to the benefit of the shareholders, but he

(Oostlnuad a* foot of not cohana* |

never really thought the and the Meat Board would to the sale going throagb. Statements to W«Bftt|fWfr James Copelaad director of the company W wptlos, ga?o ovWence of tg the deputation WelHngtwi^ [Meat Board, to include tfcoJffjM'J* f the freight contract. At w»lpjjt«%.« they saw Mr Jolly, whose ItotroWF m) the directors was that the «pf • |£* * to return to New Zwui wfrow* 'f company's control Wto* WJW , denied that, at the sqme thews, another director, 4BWmew|s*f *J Jolly concerning the WttlW - asking if, after the calling * the capital of the company, it bank's intention to wind it Bf. JSr Jolly replied in tbc negative. " > . To Mr Myers: Witness admitted that with calls hot coming in, the bank W cause for anxiety. - , ... To Mr Jones: Witness said he aid not think the hank had stopped th« company's account when the efarectws interviewed the Meat Board over «® Admiral Codrington. The chairman of the Commission announced that loose leaves of th* Wp had been produced, and were newia possession of the Commission. Buyers and IMWt. Oito Hansen, fat stock buj«r> evidence a£ to diasatiafaetian W management after Mr JSlwtt'i Wtliw of the works. Witness said Mr l4*aar paid the butchers over the award ****** which caused a strike as com as >«*• teys took over. Witness said tM* daring the slump the company advanced £15,700 to some of their dtenis m account of rreat. Witnesa aaid th«»*nagcr arranged about an adiUM mh bought forty-eight head of hnJ» subsequently told him no mora, a^JfWkca®.... Iwere to be made. j" ' * Eustace Lane, of Wairoa,- h» • sent a shipment of beef tbwu'vjw' ; Wairoa Freezing Worka, J •; get satisfactory resnlta. H« i-• lost tlie beef, but received s dflssk«tf>*. against his account. B« tlmqjj* *t» . was a lino opportunity for Hr Jam, ef the Meat Board/ to dutinndait MepdF* but be did not do so. m aisq|r a letter referring him to the musk. To Mr Jones: Ho admitted fktt the bullocks were sent home jaafcbefore tin Meit Board came into ofioe.