BREWERY COMPANIES

Grey River Argus, 8 September 1945, Page 2

BREWERY COMPANIES

FINANCES DISCUSSED.

BEFORE LICENSING COMMISSION

WELLINGTON, eptember 7.

The finance of brewery companies was discussed before the Royal Licensing Commission, in Wellington, when counsel for the Crown, Mr J. D. Willis, called the Assistant Registrar of Companies, Wellington, to prove certain particulars relating to New Zealand Breweries, Ltd., and J. Staples and Co., Ltd. Introducing the evidence, Mr Willis said that Staples and Co. was incorporated in 1889 to acquire the breweries and hotels of J. Staples and Co. and Hamilton Gilmer, the capital being £60,500, and the principal shareholders John Staples, Martin Kennedy and Hamilton Gilmer. Between 1897 and 1917, the of the company was increased to £350,000. In 1923 the Company sold its brewery to New Zealand Breweries. Ltd., receiving 57,000 one _ pound shares in New Zealand Breweries and approximately £143,000 in cash. In 1937 the Company’s twenty-three freehold and two leasehold hotels were sold to New Zealand Breweries for £496,000. Its business then being substantially at an end, the Company went into voluntary liquidation. Particulars would be given of payments made to date by the liquidators to the shareholders, said Mr Willis. They would show that including the 116,391 shares in New Zealand Breweries distributed in specie and valued at 50s a share, shareholders have to date received by way of capital distribution no less than £925,352. Mr Willis then traced the financial development of New Zealand Breweries from its formation to date and submitted figures relating to the ownership of hotels in a number of land registration districts. The following are the figures he submitted, showing the number of hotels in each district with (in parenthesis the number owned by, leased by, oi- .mortgaged to brewery, wine and spirit and other similar companies: Marlborough 28 (11), Westland 92 (49), Nelson 98 (47), Gisborne 36 (29), Hawke’s Bay 67 (28), Taranaki 53 (17), Wellington 166 (73). , , Mr Willis also stated that of the 219 hotels in Auckland registration district it was probably correct to say the trade was interested in 160 in one of the recognised forms. Mr Willis also produced figures relating to the number of privately-owned hotels. In one case after spreading goodwill over the term of the lease, the effective rental was at the rate of £5,176 yearly on a property whereof the Government valuation was £17,500. In another case similarly treated effective rental was £2,060 yearly on the capital value of 14,550. After giving figures in respect of other hotels, Mr Willis said these large sums must come from somewhere, and he submitted they came from the pockets of the public.