THE AMUSEMENT PARE.

New Zealand Herald, Volume LXVI, Issue 20392, 22 October 1929, Page 7

THE AMUSEMENT PARE.

AN UNPROFITABLE ' SEASON. EFFORT TO REDUCE RENT. Tho third annual report of Auckland Amusement Park, Ltd., for the year ended July 31 shows a loss of £3577 as against profits of £767 in 1927-28 and of £10,415 in 1926-27. The gross receipts were £8371, as against £20,794 in the previous year, while salaries and wages, running cost and other charges amounted to £9901, against £14,291; and depreciation £2047, against £4735. Last year's account also provided £IOO2 for stocks for refreshment stalls and games. A debit balance of £776 was brought forward from last year; the preference dividend for 1927-28 amounted to £765 and the directors' fees for that year to £290, making a total, with the past year's loss, of £5408. Against the latter is set £3Bl from previous provision for income tax, leaving a deficit of £5027. In their report the directors say the past year has been a difficult ono for tho company. In previous years the park has done its best businoss over the Christmas holidays. On Boxing Day, 1928, however, rain fell all day long and rain marred the successful running of the park on tho other days during tho Christmas holidays as well. The ground rent to the Auckland Harbour Board, namely £2OOO per annum, has proved a very difficult burden to carry. The directors have already approached the board to consider a substantial reduction. The board lias met them in a fair and reasonable spirit, and, although no definite reduction has as yet been arranged, the directors hope this may bo possible before tho close of the present year. They hope to open tho park again this summer, and, with fine weather and tho easier tone of the money market generally, look forward with confidence to a better season than last year. The capital of the company remains at £35,654, including £7654 in 10 per cent, preference shares. Liabilities to creditors are higher by £l3O at £1463 and thero is a bank overdraft of £961. Assets total £33,051, against £37,089, tho reduction being duo to provision for depreciation and .the absorption of cash items. The principal entries are:—Buildings and plant, £28,904 (against £29,884); war bond investment, £2139 (£2046); flotation and preliminary expenses, £1855 (£2120). Last year the company had £2553 in cash at bank and on deposit; this has been reduced to £7 in petty cash. GOLDEN BAY CEMENT. PROFIT OF £49 FOR YEAR. FIRE AND EARTHQUAKE LOSS. A net. profit of £49 9s lid was made by tho Golden Bay Cement Company, Limited, for tho year ended Juno 30. Tho company's output was seriously curtailed by fire, which occurred in March, and in Juno the. works were again stopped by the earthquake. The directors report that the installation of new plant has at times very much hampered the staff at the works in operating tho present plant. They had considered the question of closing the presont plant and concentrating on erection of the new machinery, but decided it was better to retain the personnel, many of whom havo been years with tho company, rather than dispense with their services for tho period of reconstruction. Tho accounts show a profit of £49 9s lid for the year, and this, after writing off heavier depreciation than usual on machinery and plant. The directors recommend that this amount bo carried forward, together with the amount of £7952 13s lOd at present standing to tho credit of appropriation account, making a total of £BOO2. BRITISH-AMERICAN TOBACCO. INCREASE OF CAPITAL. At a recent extraordinary' general meeting of the British-American Tobacco Company in London sanction was given to the board's proposal to increase the capital by the creation of 6,000,000 of 6 per cent.*£l second preference shares. It is intended to issuo these shares at par and to givo preferential allotment to the company's ordinary and preference shareholders. Sir Hugo Cunliffe-Owen explained that the new money was required to finance tho growing business of the company, the sales of which had very largely increased since the last issuo of capital. During tho past three years the British-American Tobacco Company had invested more than £3,000,000 in subsidiary companies, and, in addition, substantial amounts of money had to bo provided for tho erection of new factories and the purchase of leaf tobacco, machinery and wrapping material to cope with the increased sales. No part, of tho proposed new issuo was required to meet present commitments. In answer to a question, the chairman said ho had no knowledge of any pending or contemplated arrangement between the company and Careras, Limited.