TAKAPUNA JOCKEY CLUB.

New Zealand Herald, Volume XLIX, Issue 15110, 28 September 1912, Page 10

TAKAPUNA JOCKEY CLUB.

THE ANNUAL MEETING

A REPLY TO MR. RUSSELL.

The annual meeting of the Takapuna Jockey Club, was held yesterday afternoon, when there was a fair attendance of members. Mr. E. W. Alison (president) occupied the chair. The annual report, submitted by Mr. Robt. Wynyard (secretary), set. forth that during the past racing season two; meetings were held, extending over four days, stakes to the amount of £4000 < being paid away. The profit and loss account showed that receipts for the year totalled £7268 15s 9d, and expenditure reached £6686.45, leaving. a surplus of £582 lis 9d. The totalisator investments amounted to £68,850, and the taxation paid to the Government upon to'talisator and other receipts amounted to £1755 12s 3d. - T - The President, in moving the adoption of the report and balance-sheet as submitted, remarked as follows: ' "I have to congratulate members upon the succcss of the season just concluded, notwithstanding the unfair reduction by the Racing Conference of the club's racing days frorii seven to four. , The quality of the racing generally was of a. high order, and the meetings, as a whole, successful.. The weather on the second day of the Spring Meeting. became so exceptionally inclement after, three events had been run, that the remainder of the races on that day's programme had to be postponed, but, were subsequently run oft under , most favourable circumstances.

" Compared with the previous year, the financial results show a substantial fallingoff—tho surplus for the past racing season being £585 Is Id less than that of the' previous one. This fallingroff in mainly due to the reduction of receipts. Members might opine that consequent upon tho curtailment of the number of the club's racing, days, and with a reduction % of days, racing and receipts, there would be a somewhat proportionate decrease of expenditure. But this is not so, because there is certain fixed annual" expenditure, such as salaries of officials, caretaker, rates, insurance, upkeep of ouildings and appointments; and other requirements, the cost of which, cannot be reduced.

. " You will observe from the report that whilst the whole of the' club's, surplus for the year amounted'to £582 lis 9d. the Government tax amounted to £1755 12s 3d. The existing system of taxation , of- 2£ per cent, on all receipts is manifestly unjust, and • operates unjustly.. Its unjust operation has been seriously felt by some country clubs, which, through uncontrollable circumstances, have had the misfortune to run meetings at a loss. Yet,, however great the loss, the Government tax of 2£ per cent, on all receipts must bo paid. Imagine the effect of such a system of taxation if applied to business undertakings. Imagine a company, firm, or business man, through unforeseen or unavoidable circumstances or conditions, making.a loss upon the year's operations, and yet being compelled to pay to the State a tax of 2£ per cent upon the great bulk of the annual receipts,* or, imagine either of such business concerns having made a profit for the year of £582, being compelled to pay taxation to the State of £1750, over three times the amount of profit made. Would such a system of taxation be defended ? Would such a system be tolerated ? Certainly not, and yet that is the existing mode of taxation imposed upon the racing clubs. Such a system is bad, and is indisputably wrong in principle—an amendment of the law should be made.

" By reference to the profit and loss account you will see that the stakes paid last season amounted to £4000, equalling £1000 per day. This season the committee pro-, pose to raise the stake money from £4000 to £4500. which will make an average of about £1100 per day. . " By reference to the balance-sheet you will observe that the assets of tho club are /shown at £21,622 9s 3d, of which amount the properties, 1 buildings, plant, and stock total £19,980 15s sd. V In connection with these valuations, I may state that recently the Government Valuation : Department valued the capital value of the club's properties for taxation purposes at £21,750, which valuation, on appeal to the "Assessment Court, was reduced to £19,500, the unimproved value being reduced to £3050. " ' . .;, " The total liabilities of the club, include ing mortgages, amount to £12,650 3s 2d, which leaves a surplus of assets over liabilities of £8972 6s Id.

" My special reason for referring to these valuations is because of a statement made in Parliament last month by Mr. G. W. Russell, the member for Avon, who said: ' Everyone knew that tho Takapuna Club was to all intents and purposes a proprietary, club, < and that the proprietors were the" people who owned the Auckland and North Shore Ferry Company.' . The statement made by Mr. Russell is absolutely unfounded* and why Mr. Russell made such a mis-statement, is unexplainable. In no one respect is the Takapuna Jockey. Club a proprietary Club, and this fact should, and must, have been known to Mr. Russell, for on May 1 last, an official letter was forwarded by the committee of this club to Mr. Russell, who, at that time as Minister for Internal Affairs, had notified 'That country clubs, which were unable to obtain permits under the Racing Commission's report, and all clubs in receipt of more than one permit per year should not make any commitment beyond July 31, without making certain that they will receive tho necessary permits .to use the totalisa tor.'

"In the club's official letter referred to the committee applied rfor a restoration of totalisator permits and days' racing, which for a period of 18 years had been annually granted to the club, and set out a number of reasons in support of the club's application, on© of which was: — " ' That my committee has Been informed that statements were privately made to members of the Racing Commission, indicating that the Takapuna Jockey Club was a proprietary club. Such statements, if. ade, are absolutely devoid of truth. The whole of the club's properties are owned by the club, and all surplus moneys derived by the club are expended either on course or building improvements, in providing improved facilities to convenience the public, or upon reduction of the club's indebtedness.' <;

" I have to-day made particular reference to Mr. Russell's statement, as the opportunity is given at this annual meeting of the members of the club, to refute in your presence a statement which has evidently been circulated in the Southern part of New Zealand, and which, though utterly untrue, has obtained some credence. I now publicly state that the Takapuna Jockey Club is in no respect a proprietary club, and that the whole of the receipts are expended in connection with racing, and that no person other than officials and workers, receive any financial benefit whatever in connection with the club. Further, the Devonport Ferry Company does not reap any harvest in conveying • people from Auckland to Devonport to attend the meetings of the Club. But even if the company did reap a harvest what bearing has that on the question? As you all know, a through ticket, _ including steamer return faro and admission to the course, is issued at Is, | the cheapest combined travelling fare and' I admission to course ticket issued, not only in Australasia, but probably in the world. I trust this public denial and refutation of the assertion • made by Mr. Russell, ' that the Takapuna Club was to all intents and purposes a proprietary club' will prevent a repetition of euch an unfounded statement." The report and balance-sheet were then adopted unanimously, and-Jhe following office-bearers were elected for the coming season: —President, Mr. E. W. Alison ; vice-presidents, Messrs. J. Bollard, MP.', L. Phillipps, and W. Handley; committee, Messrs. E. W. • Alison, E. R. Ford, J. Mays, R. S. Reynolds, E. Alison, R. H. Duder, A. Alison, W. J. Ralph, G. S. Lintot, Major W. Covle, and Dr. Grattan Guinness; judge, Mr. W. J. Ralph; treasurer, Mr. W. J. Ralph starter, Mr. C O'Connor clerk of the. scales, "Mr: F." Marks ; clerk of the course, Mr. A Selbv ' handicapper, Mr. G. Morse; timekeeDer' Mr. R. Speight; hon{ veterinary surgeon; Halsteadj secretary, Mr. R,