LYSNAR’S CHARGES

Hokitika Guardian, 2 May 1925, Page 1

LYSNAR’S CHARGES

KVIDK.VCK AT (USBORXH (tv TKr.Kcrt.M'ir— i'umss assn., coppmcm. OISBORXK. April .’ft. The Royal Commission of Inquire into the sale of the Poverty lkiy Farmel''' Meal Company's works at. AA'ttipaoa io Yestey Urn-, was eout iniletl to-day. In the morning. tin- Commi--mission made an i iispeet ion of th" works. U hen the • iitiug r. -ui:ic<l the (jlies! ion aniso in, ho 1 1:,. mm-prodne-tion of a private journal. The Ciiinini:-simi Imd previously taken time !■• loiisliter whether eertain loose ledger sheet-, si onld he produced. .Mr l.v- ;ct hi, m eiittni ani. Mr I’hiilip llatitilton were examined, hut they denied all kitov. ledge of the e.xi.-f----enee of a private journal. Frank I‘ortef. formerly aeoniintnni lo the Hoveriy Ray .Me.it Co.. washout! certain ledger entries, and said thal they had lieen derived from entries in 11 ie missing private journal; IF- had handed all t!m hooks in 1:possession io tiie receiver, lie dc'scrihI'll ihe dilltetl.-'ie';. ol't he missing hook . W hi' !i vas -tippnsed in lutVO le i'll phlc- • -1, with other hook', in Mr Lysiinr's strong room. For the National Hank, Mr Myer-. ami for ilm (.'overunmut. Alt' Taylor, insisted (hat the missing journal was nil"! import ant. as ii contained lim closing entries in regal'd io the Admiral Cndnugioii up to August. Hil-’H. Hamilton Irvine. Receiver to tho Company, staled that he had given tlie journals and ledger to Philip I lami 1 rou. but Oi.ln’L know wlmuliov Hi" journal refem'd to was amongst, those j hooks.

fu reply to the Chairman, witness said tho missing hook contained import am. ipte! at toils as to wiiy the transfers of certain habitues were made. The iuformti I ion utts important. Ceorge Witters resumed Ids evidence mi certain parts of the works, staling th,at after inspection, when \ estev's look over the building-', they were in reasonably good condition. Witness denied a si at omen! of Tolly's tha i the works had I starved prior to Ve>jcCs taking them ov-tg Had Yc.-t.y--efi'cl'cil to buy the verbs at efioO.llOO. ai d laid tiie .Minister of Agriculture agreed to it, Ito fwitness! would not have oka-eio'l. a- it was only a qUcsiion of price. Answering Mr Tom's, witness said he personally hadn't examined Fa charges made hy Mr i.ysimr. ttml ilidn'l, know if the Din tors had discussed them. Ill' contended the Meal Hoard had not tided fairly In regard to the Admiral ('■. driiigton. staling Mr Tones had not included the vessel in tin sloping contract. .Mr Tones had contended application was not formally made. Wilhe-s .submitted Mr I.Vsn.ar had made a verb;:! application to Mr Too .: for Ihe inclusion of th" vessel in Fa.' n tract, hut the itll’er hadn't I. vu given l l ' • consideration II lor,Hr peeled Air Tut:,- to have 'Died .‘he Company when -out reds wr, mid, r Witters .'lid F at ill May . ltd'-’, h" had been pf'-'el't at ihi' cotilel'eeeo with Mr Tolly . ami lie < mtl radi.-t "! t k - la tier's .statement I lie I 'it - eid'" t'gl’e.' l l tha I I lie -I Adm it al ( "dt'i *e Rut should not ret ttl n io New Realm;,! an ■ dec the emit 10l 'it' Foe C a"pany. Ihe Meal Hoard Wa then wait'd upon to make n eoni rttel lor Ihe ship. A\ la n Hie direeiel's till! J"ll.\ it May. Ma tthev.'. ;,.-k"d if til" I'.' ait intended iniii a o up the t'"iiii‘i'!y, a 1 .!"dy had replied in the negative. U'ei V- lev. had made I'-.-ir a •!-. v. itu—s. |., an,l Co. I I!' Mi Wellim ioi, niui n ■ i .lolly on Si-pl• a -r ! Dh. ' 'al 101 iI . 'it:. had I eel! "P'O- , I !,y !.'. who aid lie > .Vail! "I to ihi' oI 1 - "I"! t 1 a' la,-lie I.Vsoar said, too, Iha I only the ad hm ,:l t ... e , .1,1 I,the Company io halikriiplev. .liiiic Hied to pers. e,!"l diem ... V' olfmthem Ilu-y agree to Fa- -al ' '.'.ids Won, s iold loin he '.'.mild ti"i ~ t,, sileh a proposal. .ill--1 to ana I,]', on -kin. Ihe legality of dolly'-. s u.goest ion nils ai-o I| nest lolled. and ~v , || when i i v. a rhi tinned. v. i l ne-x 1,.,1 hj. os-er! 101 l I hat tie V eaiid not 'b'irny hi- fellow “ha reholde.-. Tie- Directors were prepared I" do ■insdi io ■ rat her than have I lie work-; j’,] w.-e- suggested that fur ■i;,,;'.hares he issued. Tolly asked for time i.> think tit" maDer over eliee adioUl lied until Hie following afternoon, when Tolly said !u would not consider Foe aI! et'tia ti Ve prop.isal. Rofet'ence

was made to Hm serious Ins to tli" guarantors, and Tolly said the Hank would be a heavy loser. H" ollVre.l ihein a eonee.-slot, of f'ild.lHl' l , bill the Direeiors refused to agree, and oxt res—- ,,,| a ih-lerminal: m to light to a finish, t.ysoeir Imd ".aid be would stop the sab'. : H . : .n,I Tollv being in a “tali' of keen excitement. ' Telly had -aid: M.ysnar. von have IN mm Ii ' hatue of stopping Hm sale as you have of leading Onhriei's . heir in I leaven ! I hey met ~... | ami after they had gone grins, thev asked JCo-TO.ItVI for the

the ship, this re], resenting £p:OfOU for the work.-. Af 1 TOTuK) for ,l, t , D,ip. with £lo*l.fltY> for the gooil■Al! IFwTands ita.l contended that there was no goodwill, and Dm oilier ■ ■.goes were also disputed. I.ysnar then ;v .ked for a price to be put'- on Mm

Tarulmru Works, ft was intended io endeavour to arrange, in conjunction wiH, tiie (iisl-orim Slmep Farmers Co., to iiuv th- works out and close them down.' I.ysnar had said he would endeavour t" stop Vestevs rebuilding, ■is there was no room for three large in the district. The works had not been definitely offered to A esters !lt that interview. In May they met Rowlands accidental !y in Cishorno, Rowlands being accompanied by young Vosiev. Rm.Hamls had said he would lik„ go over the works, and witness arranged for an inspection. The ins’'.,"tion was made, and Mihseeiuently t'vsnar a-i-md Howlands if he had been advised of ilm pri, e rut on the Tantl;eru Works, and received a reply in Fee negative. When the steamer Admiral Codrington agreed to give a e-sion at Home she got a fvlj cargo. Then M.m Heard eomplain'T|.„ directors took legal advice.

which wags in their favour, and eased their consciences. He didn't know n ' "ii gated shorthand writer look notes i f their interview with the Hoard until after', tit'd; Air Lysitar said: AVltat. took place showed what hoial deputations to the Meat Hoard, Mr Tone;: \\V ate not sorry we took nates. Witness said lie couldn't say the Admiral Codrington had wrecked the Company. His opinion was the Meat ('"inpany would have recovered if t.l:e Meat Hoard had not found a- ready onyer in Yes toys. AH' Alyer,s: Would you liavc sold the vessel to Recltsebub. if you had itaei a elittnee ? Witness: I don't know that- chap! l l/anghteid. Tin* pro-eediugs were adjourned till the following day • C rSHDHXF, May 1. The opening .stages of flic Yfont Commission this morning were devoted to a further eontrovorsy regarding the missing journal. Mr Myers intimated that a search of the National Hank premises had been unavailing. (merge Witters, resuming his evidence:, said lie would admit that there •.'.V'l'e representations io meet ilm I! cit'd regarding, the Admiral Codringi, 11 v,hi, If had iieen left almost eniiri'lv io the diairmaii, There would I,'ne lieen a mm-h heiter ehaneo of selline ill" hint if it had been in eommiss'-

T , Mr Tones: ffe wa.- lint aware that MY l.v.siiar had declared to the Com-mt-soliter of Taxes that The company had no funds to carry on, and, even if tl»i* vossr-l w; i .b* sol.l. tlio- fttluvrolioLior.* would get nothing out oT it. Me Tones read Mr Hy-snarks sworn I 'emeni io the Commissioner io that , |i',s i and asked whether it was true.

Mr Witters replied that at the time it was made it appeared to lie correct, lie thought it was all assumption.

Mr Jones: What are your gnevam cs against the Afeai Hoard. Witness; You have ettlighlened me to some e.xieiit during the last day or two, but 1 think from the outset iltat von slioitld have taken us into your , ~j; ;,s well as Mr T.ysnar. \j r Tones: Was 1 not entitled to ;l -mne Mr l.vsiiar would inform his ru-di rectors. Witness: I don't think so: hceaitse you said you had no confidence in Mr 1.-ysna!'. What do von think the Meat Hoard should have done. Wiim- : That is not for tne lo suggest. Ciitil within H! hours of the sale we i Imught that every thing vouhl 1.. right. We left, you after the inter- ■ i,,-.. p,.liming that you would licep an ; ~, , M Hie mat ter. On ref urn- , (.!.!,, rue we sent a N'o-esk to I ; lie ,|. natation and in reply v.-cr.-ruled Hie Hoard Would lie pleased to ,t .. deputation. Your com- ■ ~ ~; vi ng yell eon 1,1 hear mil' , , ... win uritYen after you had given ( ~,, g,,,j, ,tie .-a!e. to Fiat I think v . .. guilt \ei 111 i,'V ept i- U aU" and I" r I hat I Wl'l ' f-ir'fiiVf vU. \j r .1,,,. - : You V. ill do so win'll ' e art a little I'll ri ilef . •IT, Mia- !.. HoudtiTl. farmer. Wairo:,. a dit'et,"t' of tie W or, a Freezing j| v wa- the next witness ami ■ .i.| tji;,t during the last two seasons -fees had o]MU'aied freely in the Wai,o.l (iistrii t and were aiferiing the company i oitsideruhly. He regarded ihein . ;l V ery serinti.s comlii lie. The AA a iron v ,irks were losing liu.siuess through Yes--1," - and they were fared w itli rails for 1,nu11.-r eapil al. Killing a"uy front the corks on a commission paid hy Vi le, - lo aei'iits gave Ihein a liig advauiag!', I hough if \'esle.v.s <'onlinued , operate in the AYairoa r-. tlayv had j i doing the Wait'oa works would go jhe im' 1 'ay .ie the Vi nipnon works. . vj ,■ I■!j said lie ihought. the >i : 11 p, ,i hail n„l I uni t ioned to its nil'll! ami should do conictliiug j •!,. farmers irom a i-ondune. D should arrange marl:, 'ting on the game lines as halier mulrol. It c.mld al ~ as-isi. farmers financially. Mb--1., had still"! "O long in ' ''-teys ,!„i'l;s ill I'd i gin in I that lie had got mu him.' for it. hut paid AOs. a lead j.. r ih" privilo of sending Ids meat 1.. Al.r.i of this had gone io Vestel s . To Mr Meet's : Had said ihnt .luring 111.. la-i (wo Vent'S the • h.irehohlers had ten,lt.,l jo .sell ,stock lo go Oltl- ■ id.' the disil'iet. Mr Myer.: Th-v are loyal to the Company. v, it ness : The farmers are unable I" prate, i F rm~r!ve from lit" big inierests. Alexander SI. Flair anoiher director ~f ihe Wairoa Fempuny gave eorrol.oraiive eviden-e. II" agreed that Vestevs' oration.' were detrimental to the freezing company and farmers ol Hie dislriet.

Ceorge Hartley, a direel, ,r of Hie p,evert v Hay Meat Company, deposed that when the sale of Hie works was ~l H| er ennsidera I ion, witness, v.it-li the etlier dire,lot's, went to AD' Tolly and , .If,.red io meet t!,,' position by raising more shares. Mr .Tolly replied that the share., in dm Vuvorty IV'.y Meat F„mpaitiv were not worth a sita|> ol the ftm'ei's and kept urging the directors to sn>wtion the sale without the consent nl' the shareholders. Air Tolly insisted 11.. the bank wanted its money. They the’,l went to the Meat Moan! and wore 1.. by Mr .[.mop that limy were lucky io have out A'estevs' ofief.

AV it ness deni,' ! absolutely Mr -Tones' t.'ii,unoiii that witness luM said lie was anxious for the sale l„ go through. !!:,,I Mr .tones said that the Hoard had arrived ai i' : “ decision. all trouble might have been avoided. Mr Tolly met them at breakfast next morning and urged the directors lo let. ilm sale go through, saying the concession of ymo. IIPO would not I"' given otherwise. They gave Air Jolly to understand they would miner lose their money than i hoi r repntat i, m among the share-

holders Regarding the missing journal. Honor. the accountant:, re-examined, said V vis- still satisfied the journal wns among the books given at Hamilton lo Air l.vMiar's secretary. Since yesier,F,v Afr l.vsnar had shown him leaves from a ledger relating to Mm AdmitV Fodrington. Al" f.ysnar -aid he was quite pro , ~,.,,) to show them to the ( ommitN-

ission. , , The Chairman: Von have toh. no that before Mr Hysnur and wo have . i t v-.. .re net satt.'lied. It is no th- position. The Ootn- • • • . to have its hands mission ts no. going n, He,! I)-- anv conditions imposed A"’ 1 - Air l.v.'nar said the only condition the Commissi,an should nor divulge to tlie other side information

detrimental to the company. The* Chairman: The Commission t>

min,' to order the leaves to Ik> produced before it. AYhcther the information will be disclosed remains to bo -ecn, but the Commission is not going to bargain with yotl. Mr Alvers said AYitters had raised doubts as to whether Mr Hysnar was entitled to appear cm behalf of tho < otnpany. Ah- I.ysnar: I absolutely give you assurances that I have authority to apAir Jones: That is not enough. Air I.ysnar: You can have it nudes SOM i. The owners said Mr Lysnar was appearing before tho Commission in a dual capaetity and was entitled to bo cited ns a party. t . The Chairman said the Commission had already considered the point and v, as not going into it further. He was quite certain Mr Hysnar would not appear Itefore the Commission and havo tho hooks, in his ftossession without authority. Air AYitters’ evidence was then resumed. Questioned hy the chairman Witters said the financial position in R)-jg was not as rosy as it was to-day. Some directors were finding it not easy to meet their calls and U'eause of this tlie directors wore prompted to endeavour to sell their works. To Alt' I.ysnar: The delay in approaching tiie Meat Hoard was due to a desire to thresh the matt,o' out wtili ihe Alinisier first.