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Mr. Lysnar : If you put that in there it goes into the contract. Mr. Jones : It is not in the contract. Mr. Lysnar : We want to cable that you have consented to her being in the next contract. Mr. Witters : We want something from you that does not need a lot of explanation. Mr. Jones : What are you going to cable Home ? Mr. Witters : We can condense that and still convey the same meaning. Mr. Jones : That is a matter for yourselves. This letter is a matter between the Board and your company. So far as dealing with Great Britain is concerned, you say you can still convey the same meaning. Mr. Witters : It is vital. . . . Mr. Jones : The position is that this Board must safeguard itself with the cable that you are sending Home. Mr. Witters : Reinstate that clause. Mr. Jones : That is a matter to be considered ; but 1 would like to be clear on this point as to what is being cabled Home, because if you arc cabling Home your interpretation of this, then — Mr. Lysnar : We want to be in a position to cable, " The Meat Board has definitely agreed that we will be included in the 1924 contract under the same terms and conditions as previously." Mr. Hunt: You want a proviso that the boat is owned by the Poverty Bay Company and that the company is solvent. Mr. Lysnar : The fact that we are able to run our boat proves that we are solvent. Mr. Jones wants to ascertain that. I told him that the bank have a debenture on which they exercise their powers to appoint receivers, which specially excludes the " Codrington." Mr. Hunt: Haven't they got a lien on the boat ? You have an unsatisfied creditor, and he does not abandon any security lightly . . . abandon the second mortgage on your ship. Mr. Lysnar : I said they did not refuse to take a charge because they could not get anything out of it ? Mr. Hunt: Why did they not take it t Mr. Lysnar : We made other arrangements. Mr. Jones : Has the bank no security whatever over the boat, Mr. Lysnar ? Mr. Lysnar : It has no legal security . . . They have got a letter to say that anything over and above the bank's mortgage we will see is not hampered so far as the guarantors are concerned. They don't hold a security. The guarantors hold a security. The guarantors to the bank hold a security. Mr. Jones : Which bank ? Mr. Lysnar : The New Zealand bank. The guarantors gave a letter to the bank to show that they will stand aside so far as the bank is concerned in the company's estate in connection with that ship. The guarantors will stand aside. If there is a surplus and the bank ask for it they will not object to it going to the bank. Mr. Jones : The bank— — Mr. Lysnar: The bank has no power after that letter. There is no security. They have an equitable security which shall be respected as far as a legal security, as far as we are concerned. Mr. Jones : Let me point out, Mr. Witters, we have given you an opportunity of discussing this with us for a month. Mr. Witters : We have taken most of your time this afternoon in discussing matters which have no bearing on the subject. If we can assure our people that the boat will be included in the next contract it will go a long way towards helping the situation, and getting an extension of time at the other end. * * * % ❖ * Mr. Hunt: Would you ask us to step in and prevent a creditor realizing on his security ? What power have we to stop the bank from selling to Vesteys or any other company ? Mr. Lysnar : ... . Mr. Jones : You would not agree to their terms, and the terms were to load the meat from their works, which they would have granted you any day. . . . Mr. Lysnar: Prove it by your action. Mr. Hunt: They don't sell them with a contract attached to them. Mr. Jones : If we were opposed to your company we would say to you to-day, " Gentlemen, we are not prepared to let you go into the contract at all," and you could not say a word. Mr. Lysnar: If a Board constituted as you are and set up by Parliament .... ruin a farmers' concern.

APPENDIX K. NOTES ON CONFERENCE HELD SATURDAY, 18th OCTOBER, 1924, RE S.S. "ADMIRAL CODRINGTON." Present: Messrs'. Lysnar, Perry, Hunt, Eraser, and Smith. Mr. Lysnar: . . . We are having cables with our agents at Home to arrange a freight rate J, ert £ — W( , are now negotiating. We recognize it is a little early to bring . . . she has been idle so long through being cut out of the New Zealand trade, and we have been negotiating to try and get an intermediate freight. That will take some little time, and we may get cabled advice at any