STATION 1ZB

New Zealand Herald, Volume LXXIII, Issue 22574, 12 November 1936, Page 12

STATION IZB

PROCEEDS OF SALE MR. SCRIMGEOUR'S POSITION LEGAL OWNERSHIP r FRIENDLY ROAD MOVEMENT A statement of the financial situation created by the sale to the Government of the Friendly Road radio station IZB is made by Mr. 1. Meltzer, a public accountant, who was treasurer of the IZB Radio Club, which recently decided to disband in view of the fact that the objects had been attained. Mr. Meltzer, who is closely in touch with the affairs of the station, was asked to comment thereon in view of the following letter received by the editor of the New Zealand Herald from a correspondent: — "Sir. —It would be interesting to learn who has received the proceeds of the sale of the IZB radio station to the Government. I am one of the many thousands of hysterical women who, carried away by the sob-stuff put over the air at the time the late Government shut down the IZB station, scraped up a few pounds to contribute toward the purchase of a station for Mr. Scrimgeour. These donations were given mostly by widows and little children (e.g. Little Kim's Six Pennies). Somebody must have received the purchase money, and I should like to know by whom it is held. There may be many people like myself who, having been deprived of the major portion of my income by Government taxation and Government fiddling round with mortgages, could make use of the money that was given to provide some cheer for sick and lonely people, and which they never dreamed would form the nucleus of a present to the Labour Government.—Disillusioned." ' Two Points of View "The position can be summed up under two headings—the iegal and the moral," said Mr. Meltzer. "From the legal point of view Mr. Scrimgeour is the legal owner of the Friendly Road and any negotiations ror the sale of the Friendly Road have been conducted by him. From the moral point of view Mr. Scrimgeour is merely trustee on behalf of the people who have in the past contributed toward the building up and the maintenance of the Friendly Road. "I understand the purchase price for the station has not yet been finalised, but when the matter is completed my understanding of the position is that the proceeds will go to Mr. Scrimgeour, who will use them 011 behalf of the Friendly Road. Indication ol Public Opinion "The Friendly Road is still a popular movement as evidenced by ths fact that on Mr. Scrimgeour's return from Australia when he announced to about 7000 people in the Civic Theatre and the Town Hall, and also to countless thousands over the air, that he had asked the Government for £SOOO for the station, his remarks were accorded a cordial reception. This seems to indicate that from the point of view of general public opinion there is no hostile criticism worthy of note. There will always be individuals who take the opposite view. It is a well-known fact that as soon as an individual reaches the limelight, all and sundry desire to have a shot at him." Mr. Meltzer added that the accounts of the Friendly Road had always been subject to audit by the Government and a reputable firm of public accountants.