MEAT WORKS COMMISSION.

Otago Daily Times, Issue 19472, 6 May 1925, Page 7

MEAT WORKS COMMISSION.

EVIDENCE OF ME. LTSNAU. THE PROCEEDINGS ADJOURNED. (Pxa United Pbess Association.) GISBORNE, May 5. The Meat Works Commission resumed yesterday afternoon, when further evidence was called by Mr Lysnar. Mr Frederick Tolerton, manager of the Gisborne branch of Nelsons, dealing with the purchase of the Waipaoa works, said that in February, 1925, he had been approached by Messrs Witters and Matthews, ■who asked if Vesteys were likely to be interested in the purchase of the works. Witness said that Mr Rowlands was the man to deal with, and asked if they had the authority of the directors. They replied in the negative, but said that Mr Lysnar had agreed and the other directors would agree. An appointment was made with Mr Rowlands, and witness, Mr Matthews, and Mr Witters discussed the matter. Later in the year Mr Rowlands, Mr Vestey, Mr Trott (London), and Mr Dun >n (construction engineer) visited the thn- jocal works, but no mention was made of buying Waipaoa. At the last-named place Mr Rowlands conferred privately with the directors. At the sale of the works witness bid £225,000, having received instructions from his Hastings office. Witness detailed the expenditure necessary since taking over the works, the total amount involved being £29,600. To Mr Lysnar: They gave their clients’ stock preference in killing. To further questions witness said it was proposed to scrap the trucks insulated with wood shavings. He was not aware that the Railway Deportment provided half the trucks in this district A discussion arose on a point raised by Mr Lysnar that when the Taruheni works were transferred in 1919 from Nelsons to Vestoys, ihe latter did not take the proper legal steps to secure authority to carry on. The Chairman said he wanted to be perfectly fair to Vesteys, and would like hear someone on their behalf to express an opinion as to the admissibility of evidence which might result in a charge being brought against the firm for illegal action. Mr Lysnar contended that Vesteys had been operating twelve months before it took the necessary steps under the Slaughtering Inspection Act to secure a transfer of the license. Mr Taylor said bo felt certain that the required evidence could be procured from the Government records at Wellington, and th<ae would show that the Government's action had been quite correct. Mr Lysnar proceeded to put questions to Mr Tolerton, Vesteys’ local manager, in regard to commissions paid to merchants.The Chairman said they were concerned with what happened at the time when Vesteys were the owners. Other works wore not now concerned with Vesteys’ present action, which might l>e the subject of another tribunal, which might have to consider whether Vesteys' license should ho renewed or revoked. He ruled, therefor.., that Mr Lysnar could not obtain evidence in regard to commissions. ‘ Mr Lysnar,. giving evidence, said he desired to contradict the assertion made by Mr Bowen in regard to the letter alleged to have been given to him by Mr Irwin concerning tallow. Witness denied that there were any terms or conditions made by Mr Irwin concerning the giving of the letter. In connection with tallow Mr Bowen had spoken of Mr Elliott’* good management. Witness produced an account between Messrs W. and R. Fletcher concerning a consignment sold to them in June, 1919. The company had recorded aminute that all by-products wore to be sent Home, and while he was away Mr Elliott had made negotiations for the sale of a largo quantity of by-products. Although the sale was incomplete when witness letumed, it was doubtful if it could be rescinded, and as a compromise the company allowed 'Fletchers a number of casks at £77 per ton. The portion sent Home brought £l2O, and there was a considerable loss to the company,,on the tallow sold in Now Zealand. There were general instructions to ship everything. Mr Jones: What date were the instructions given? Mr Lysnar; ‘At various times. Here i* a minute in 1917 that frozen sundries should be sent Home. Witness: Instructions were given later. Mr Jones: But this minute is specific. Witness: That was in 1917, and those instructions still stand, but further instructions wore given in later years. The Chairman: Who was chairman when those minutes were confirmed. Mr Jones: The witness (Mr Lysnar) was. The Chairman (to Mr Lysnar): There are some initials whore the alteration is mode. Are they yours? Yes. It is evident that the minute does not coincide with your recollection. Witness: The instructions were to ship everything. But the word by-products is struck cut, so that Mr Elliott was not instructed to ship this product. Witness: The general instructions wore to ship everything. To the Chairman: There was a minute on the books asking, Mr Bowen to resign from the directorate. It was seconded, but an amendment was carried that no action bo taken. Mr Bowen: Did you instruct Mr Borham in. August not 'to show the offers to to Wm. Anderson and Gordon Woodroofe of £lO7 and £lO3 per ton, saying you could got £l3O per ton for the same fat in Germany for making margarine? I deny it. I never told anyone that. Was it not a fact that all the by-products were to bo shipped. Yes. Did you ever break that resolution ? The directors might have disregarded it before selling in some instances. Was it not the object of putting the resolution on the books to take the power out of Mr Elliott’s hands and relegate it to yourself? No. He went near to losing us between £15,000 and £30,000 at one time. The commission then adjourned to. Wellington sine die.