DIRT-TRACK RACING

Dominion, Volume 31, Issue 140, 10 March 1938, Page 7

DIRT-TRACK RACING

Experiences Of Promoters At Stadium SUPREME COURT CASE Experiences of the promoters of dirttrack racing atKilbirnie were described in the Supreme Court, Wellington, yesterday, when evidence was continued on behtrif of plaintiff in .the hearing Of the application Wellington Speedways, Ltd., is making with the object of obtaining a renewal of its lease of Kilbirnie Stadium from Association Football Grounds, Ltd., which renewal tire former claims the Itrtter has unjustifiably refused. Much of the evidence was aimed at rebutting the allegation of defendant that plaintiff broke the terms of the lease by not using its best endeavours to carry on business, llie fact that the use of the stadium is desired by the promoters of the Centennial Exhibition, the site of which is near by, was mentioned. The Chief Justice (Sir Michae. Mvers) is on the bench. Mr. 1. B. Cooke, K.C„ who has with him the Hon W Ferry, is appearing for pltnntilt, and Mr. D. W. .Virtue, with him Mr. J. Meltzer, for defendant. Continuing his evidence from the previous day, Thomas Coltman, chairman of directors of Speedways from January 28, 1929, to May 28, 1931, and from November, 1932, until the present, and chairman of directors of Wellington Stadiums, Ltd., sub-lessees, during its existence, said that of Speedways £9OOO capital, £BOOO had been called up. The capital of Stadiums, originally £llOO, was increased to £l6OO. Stadiums lost the whole of its capital, paying in liquidation 1/6 in £l. In the season ended in August, IJ-J, Speedways made a net profit of £2690. A net profit of £6052 was shown by the accounts for the year ended August 31, 1930, and a net profit of £546 for the period from September 1, 1930, to May 25, 1931. A net loss of £1221 was incurred for the year ended August 31, 1932, and a net loss of £147 in the following 12 months. The company did not hold races in the summers of 1932-33 and 1933-34, considering that it was not an appropriate time to conduct speedway racing or any other amusement in the stadium. Auckland Speedways lost money in those two seasons, and the Wellington company could not see hope of a profit. Speedways paid rent based on 5 per cent, of the net profit, but paid no rent if there was no profit. Stadiums Ltd. operated in the 1934-3 a summer and in 1936, the arrangement being for it to pay Speedways £l5 a meeting -as rent, half x of which the latter was to pay to defendant. The experience of Stadiums bore out witness’s opinion of what would have been Speedways’ experience if it had operated. Stadiums had exceptional riding talent and made every endeavour to attract patronage, but the times were still not good enough. A wrestling match was arranged, but rain prevented its being held at the stadium. About six mouths ago, said witness, the manager and secretary of the exhibition company haH inquired the terms on which the stadium could be used for band recitals and athletic sports, but witness had replied that he was not in a position to discuss the subject. Cross-examined by Mr. Virtue, witness said new hope'given him tjy the exhibition project was not the only reason for asking for an extension of the lease.

Answering his Honour, .witness said Speedways was formed partly for the altruistic purpose of promoting sport and partly to make a commercial profit. It was not a company in which the profit distributable to shareholders was limited. It now had £4O to £6O credit in the bank. The shareholders had been called on for 17/6 of each £1 share and had received 8/6. That was paid as a dividend in the year in which the profit was over £6OOO. The largest bolding by one person was 1100 shares.

After asking further questions, his Honour remarked that there did not appear to be much altruism about the company’s operations. Speedvvays seemed to be simply a profit-making concern.

Witness pointed out that riders were trained at the stadium, some going on to success overseas. One of these was Wally Kilmister. * Re-examined by Mr. Perry, witness said the dividend was paid in respect of two seasons’ operations. The defence will open to-day.