CEMENT ENQUIRY.

Hokitika Guardian, 9 November 1921, Page 1

CEMENT ENQUIRY.

fI»V TKLEGRABH PER PRESS ASSOCIATION 3 WKUJNGTOX. Xov. 8. At to-day’s silting of the Cement Commissiuii, G. Elliutt. managing-di-roetor of Wilson’s Portland Cement Company, was ciaYss-cxamined by Mr I'errv regarding the allegation by Mr Masters t-liiit: cement was sold in 1918 ■it £2 Ms at tlie works. Witness said that Masters being an agent knew the position and what the market price was. His company nitty have sold cement perhaps under .-'Hi-l-raet liken over juna the Doniiaion ('run| any .-l C2 lII.*, free on jail, Auckland. lii 1 1 '.-.as cqlilt I- 1.1 to C2 os at tlie works. Ice , ompguy Hid mt pay a dividmul that viar. and W's not prosperous. It war tint the policy "I the cmir.iaay to hui'd nn its reserve and ass-'ts rather thin p.tv dividends. It was only after the Ib-artl of Trade 111111 1111 is'si lir e increas,that -be company was able to pay a dividend in 1929. but the dividend was not solely due to prices, but to tbe fact that tbe consumption of New Zt'aland-niade cement had increased from 1i.i.000 tons in 191'J to 92.t‘0t 1 in 1921. The rises in price hid merely lellowed ths mereas.e 111 costs.

Mr Elliott , nntinued that the amount

set nil' for ilepfce'zlion by his voiH]-any wa* about ClinOll more than ill the prtvimis year, in which it had been impossible t.- set aside i-nmu'li. In 1921. the company bad bought a real mute for i'-YOdHllk but that, xvas not a s-gu ot gie.n prosperity. The company paid C32.0R0 in cash and C 18,009 in finv.-rii--1,,• - 11 1 lii henuires. fin- pqretmse of the 'mine was select'd as form ol investment 11 o' tile Iminc, -->1 asid- ior depreeintion. W itlioul •' riw in tile piii-,- the eomp-iiiy '.oiild have had a mio-h I'-tter yen than the voir be--1.■,, but it w-'iild i-rtaiidy not have l-. il , -1 pi-, ).-|-erolls ' tt wou-d not liave 1 i.iitl a dividend, 00l the -diarelmblers were entitled tc interest on their money. Tbe Mil-on fottitiany would have apidicl for • rise in price, if it bad not- known tin Golden RayCompany bad applied tor it. 1 In' 1-oatd of Trade was insisting on an increase el output of cement and a rise was impel-. itivi it tile \\ at " "t'tb ' t'l• -'e|( to be reopened. Witness declined to agree with counsel that cement would have been cheaper to-day it the three works had been kept going.

HEARING CONCLUDED. WELLINGTON, Nov. s The Cement Inquiry was continued this afternoon.

Edit ard -Sitldey Luttrell, areUitoid ami builder, in isu-litir- said bis firm, Luttrell Bros., was a large consumer of cement. Last year it could have used 10(H) tons, bad it been available. lie lirst became interested m the Gulden Bay Co., early in 1919. Owing to the cement distribution heir," controlled by tlie hoard of Trade, it was not a profitable venture. Be bought out Hansford ami .Mills iciest lor tin,BOIL Because the ciinpattv was being so badly managed, lie saw’ bankruptcy ahead, and bad regretted it ever since. He had applied for an increase in the price "I cement. This was because be did not

SCO him the work- eouM possibly go otherwi-e. lie gave instructions 1 Iml all infoi malum be given to the Board of Trade. Theic was nolliiug to coiD-eal. 'I lie iiiiiultintM\ in dreadful slate. When he spoke to Elliott about Wilson's decision to reduce the price, be told him it would mean the closing down of the Golden Bay works, lie suggested to Elliott that 0 the works were closed and the com pane's tiade we if bamb-d over to others, U would nay them to pay imaltv oi As. Tin* agreement was coin-pi,-led on May -'>th. Ml- Masters’ speeidi ill I’ai'liainein. V. i- lie .- said, did m I *nrp' i-e 'mm. cause Mr Mastei s bad warned him at an interview at the G. hlen Ray ollne. His chief grievance was the 'losing of the works, which meant a M-s to Mr Mast.'.sol Cl-'it 111 a year. lie Mastei s> asked if witness was not very loulis 1 ami hasty, and witness icplied that 1 1 was impossible to carry on. Mastels had .said : "I don’t think so. \\ dson s Cement Company tire tbe octopus, and are going to acquire all the cement works. 1 all! going to stop that. lam going to bring Elliott to bis knees." Mr Masters went on in a 1 iilieulotts manner, and asked whether lie was not ell hit led to consideration, seeing that lm bad made tbe Golden Bay Compary i„ Taranaki. Witness continued Hint |,e , Ltillrell) was then rapidly losing bis temper. He told Masters be was t lying to get the other companies n. supply Ids agents with cement. .Masters went on to describe the agiccnu nt as a very sinister one. and said: “D I don’t get satisfaction, I an. goiii-- t > a 1 tack it in the House." Witness (who appeared very angry whilc lecounting this incident 111 iL' box) said that be told Masters to Go to bell and attack it in tbe I louse It was quite mil rile that tlieie was no beat, lie, himself, was in a rage. As witness continued very angrily. Mi Myers intervened and witness was asked to .-online liimsel! to answering

questions. lie declared that Rmillon. Gerald Fitzgerald, and Masters weie till acting together. Mr M vers : I can understand you getting angry, but you musn l gel angry. Witness said lie thought that be bad further said, either to Mlisters or to Boulton, that an attack could be viewed i„ no other light than that of a blackmailing attack. Mr Myers: 1 think the debenuiieholders look exception to the agreement. Witness: Yes, alter the secretary had made a false statement. Witness continued that, as a result, he approached the other companies, pml ascertained tlnn they were quite

agreoahh.' to a renewal ol tile old allocation agreement. Mr Myers: We may take it t!.lithe workers felt sore about closing.

Witness: Yes, and 1 was very sorry mvself.

Witness said he saw the men, and lie suggested that they should try to induce the Covermiicitt to keep the works going, paying the Company nothing but interest H. the d.-bvi.uire-holdel-s. lie did this in spile oi t! • lac that he bad signed an agreement #1 dose. Tins wa because In know tjic other (ompanim did not .are two straws about the agreement, gild would lie |H ilectly willing to endorse lieaction a: a right thing 111 tlie eirounislauccs. He paid tbe exjrenae of a deputation to Sir l-'rant is 8011, but nothing came of it. Had the Government accepted the proposal, n would have cost the company about L".-’fHlO.

Witness declared Boulton bad given Masters information' about the agreement. Masters’ brother bad shown that to be so in his evidence on Friday, and witness had taxod Boulton with it. He confessed that he had. Heultou bad given witness his resignation as secretary of Hie company.

Mr Berry contended that, as the agent of the. company, Mr Masters was entitled to ask why the company lin'd closed down its works, and Mr Boulton had a right to tell him of the agreement.

Witness said he had given hint details. He had been instructed that it was a private agreement, and that it was not to be shown to anybody.

WELLINGTON. Nov. 8 Tbe Content Commission concluded its sitting to-day. George Elliott, -Managing Director of Wilson’s Portland Cement Co., was cross examined by Mr Perry, regarding tbe allegation of Mr Masters that cement was sold in 191 s at T- -Is at the works.

Asked whether the Wilson Company would have applied for a rise in the price of cement, it' it bad not known that the Golden Bay Co. applied for it. witness said it- would.

Kdwaid Sidney Luttrell gave cvideuce as to his connection with the Golden Bay Co. The Solicitor-General addressed the Court at some length, criticising wlml he termed Mr Masters’ “wild, extra-va-mut charges.” He submitted that, in "view of the facts disclosed in the evidence Mr Masters should he ordered to pav the costs of the inquiry. Snell ( -.„;-so might have the effect of maki,„, Members of Parliament and others forbear from making slanderous and unfounded charges, under the sliohei of pi-ivilo-'e against public officials, am P,-ivate individuals, who bad strenuously striven to do their duty by the community. . . ... Tin- report of the Commission will he rendered shortly-