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Witness : In the early days in the Waikato we had only one works —Hellabys and Co. —and they had a monopoly. The farmers at the time made a strenuous effort to get capital together, and they succeeded in establishing a farmers' freezing-works on purely co-operative lines. The works did not traffick in meat at all. Mr. Lysnar: What was the position regarding the value of stock in the district before you established these works ? Witness: Very low indeed. The farmers had very limited markets and very poor freezingfacilities. Mr. Lysnar : What is the approximate value of the works ? Witness : At the Horotiu works, which are very up to date, the killing-capacity is put down at 3,000 sheep and 220 cattle per day, and the storage capacity at 260,000 carcases. Mr. Lysnar : What is the approximate value of those works ? Witness : I should say, easily a quarter of a million. Mr. Lysnar : How far are these works away from the Auckland works ? Witness : Between seventy and eighty miles. Mr. Lysnar: After they were built, what sort of prospects had they ? Witne. s : Very good. Sir John Findlay : When was this place built ? Witness : The works were started in 1915, and killing commenced in January, 1916. Mr. Lysnar : Have you a record there of what they did kill ? Witness : No. They were practically full for the first season or so. Mr. Lysnar : And the company did all right financially ? Witness : Yes. Of course, this is not a separate company. It is a branch of the Auckland Farmers. Mr. Lysnar : Are they operating these works to-day ? Page 250. Witness : They have not operated lately except as an abattoir in connection with the supply of meat to Hamilton. Mr. L,ysnar : Why are they not operating ? Witness : The other company go out into the paddocks and buy stock, offering spot cash. The chief reason is that the farmers have been hard-pressed for money lately, and want to get all the cash they can immediately. The opposition company is at Westfield. Mr. Lysnar : Vesteys ? Witness : Yes ; and they are able to buy stock and pay cash for it in the paddocks. They have buyers canvassing farmers for that purpose. Mr. Lysnar: With the result that they are taking all the stock away from the locality and making the works of no value to the farmers ? Witness : Yes, except as abattoirs, and that is only temporary. I understand that the works are too far from Hamilton for use as abattoirs permamently. Mr. Lysnar: Yesteys have a way of buying fats and stores ? Witness : Yes. They have one man who is the chief, and a number of buyers acting under him. Mr. Lysnar : What do they buy ? Witness : They buy for killing. Mr. Lysnar : What class of stock ? Witness : Sheep and a certain amount of beef. Mr. Lysnar: Included in that stock do they sometimes buy stock that is not properly fat ? Witness : I am not prepared to say that. Mr. Ijysnaf : The farmers experience sometimes that Vesteys stop buying ? Witness : I cannot say as to that. But they certainly have been very active this season. <So much so that Horotiu has not been operating at all this season. Mr. Lysnar : And they rail them down to their own works ? Witness: Yes. Mr. Lysnar : Do you know anything about Vesteys' method of giving commissions ? Page 251. Witness : No. I may say that the feeling of the farmers is that Vesteys are acting detrimentally —that is, to manipulate the markets. Mr. Lysnar: You are feeling the effect in Auckland ? Witness : Yes. The farmers are very perturbed as to what is to happen. I would like to ask whether it is considered relevant that I should state the reasons that we have been caused great perturbation on account of the sale of the Gisborne Farmers' Company to Vesteys. The Chairman : We are here to hear facts, Mr. Duxfield. Possibly the same sort of controversy is going on about the Butter Board at the present time. I have no doubt that the merchants apparently have one view, the butter companies another, and some other sections of the community another. You can understand we have a duty to perform, and that duty is to inquire into and report regarding certain questions. We would not be performing our duty if we went into all the side roads, listening to evidence not regarding facts. Mr. Lysnar : Might I suggest that the matter be left at this : they as a union in the Auckland Province object ? We will not press the point. Mr. Slcerrett: Your works were built and opened during the period of the war ? Witness : Yes.