H.—3o,

4

The questions referred to us are wide and varied in character, and counsel dealt very exhaustively with the subjects. It was stressed repeatedly that several of the principles involved were of high importance. While we have endeavoured in dealing with the matters to be as succinct as possible, we have experienced difficulty in our attempt to deal with the great volume of evidence given, and exhibits tendered, and to make our report as short and concise as we should have desired. Trusts generally. During the proceedings Mr. Lysnar made observations to the effect that unless our report expressed dissatisfaction with the action of the Minister of Agriculture, and the Chairman of and the Meat Board, in the one case consenting to, and in the other case acquiescing in, the transfer of the Waipaoa license to Vesteys, we were approving generally of trusts operating in New Zealand. Lest our findings may be thought to be an expression of opinion upon the general question as to whether or nor trusts should be allowed to operate in New Zealand, we definitely state that we did not consider we were directed to report upon this general question. We considered that we were directed to inquire into and report upon the facts and circumstances surrounding a particular sale of a particular freezing-works to a particular firm, and the consent to, or the acquiescing in, the transfer to that particular firm of the license attached to the particular freezing-works. The purchasing firm in this case being a firm which held a license in respect of a freezing-works close to Waipaoa, and which held and had held for years,' and under successive Ministries, licenses for freezing-works in other parts of New Zealand. Conflicts op Testimony. The charges made in Parliament and elsewhere, and which appear to have been the main cause of the setting-up of this Commission, are principally charges made by Mr. Lysnar. It naturally followed that his evidence dealt with a large and varied number of subjects, and included dealings and interviews with a considerable number of people. In a number of cases conflicts of testimony arose during the course of the inquiry, and in most instances they were conflicts between Mr. Lysnar's testimony and the testimony of some other person. In a number of cases the witness whose recollection varied from that of Mr. Lysnar was an entirely disinterested person. The testimony of these independent witnesses seemed to us in most cases to be the more correct, and that Mr. Lysnar's recollections of the matters were at times defective. So, in the main, where there was a difference of testimony between Mr. Lysnar and other witnesses who were interested parties, Mr. Lysnar's recollection was that which at times appeared to be at fault. Erection of Freezing-works in Poverty Bay District. Taruheru Works. —About the year 1885 Messrs. Nelson Bros, erected at Taruheru, which is about fifteen miles from the wharf at Gisborne, the first freezingworks in the Poverty Bay district. These were known as, and in this report are referred to as, the " Taruheru works." As will be mentioned later, they passed from the ownership of Nelson Bros, to one of the Vestey group of companies in 1920 21, and Vesteys continued to carry on operations therein until 1923, in which year they were dismantled. Kaiti Works. —The next freezing-works to be erected in this district were what are known, and are herein referred to, as the " Kaiti works." These works were erected in or about the year 1900 by the Gisborne Sheep-farmers' Co-operative Freezing Company (Limited), and operations therein have continuously, to present date, been conducted by that company. Waipaoa Works.—ln the year 1915 the Poverty Bay Farmers' Meat Company (Limited), was incorporated. The foundation-stone of its freezing-works at Waipaoa, situated some fifteen miles from the wharf at Gisborne, was formally laid on the