LICENSING TRUST

Nelson Evening Mail, Volume 80, 6 August 1945, Page 3

LICENSING TRUST

aspects of activities

EVIDENCE BEFORE COMMISSION Invercargill, Aug. 3. Conditions at the Grand Hotel, the Invercargill Licensing Trust’s financial policy and several aspects of the Trust’s activities were dealt with by Mr O’Leary, counsel representing the trade in his cross-examination of the chairman of the Trust, Hugh Ritchie, at to-day’s sitting of the Royal Commission. At the outset Ritchie mentioned the difficulties the Trust faced in acquiring hotels and then in reply to a question whether he did not think it was a mistake to buy «Newburgh’s buildings, witness said the best economic proposition was to effect a purchase rather than lease. Counsel: I suggest you should not have invested £43,000 on this when money was required for other buildings. Witness: We couldn’t buy hotels at the time and it was a very good investment. Counsel: Did any member of the Trust have practical experience in running hotels or lodging houses prior to becoming members? Witness: I had certain experience in controlling liquor at a military canteen and understand that one member who has lived at the Bluff before coming to Invercargill has had some experience. Witness further stated that the Trust was under an obligation to repay a loan of £50.000 to the Government in ten years, making the first payment next year. "We will have a net profit of £IO,OOO to £15.000. Mr O’Leary: On your present figures you have little or no hope of developing under that income. Witness: Oh yes we have. We will get it all.