GUARANTORS MUST PAY

New Zealand Times, Volume LII, Issue 12315, 9 December 1925, Page 7

GUARANTORS MUST PAY

LOSS ON WEMBLEY EXHIBITION SEVERE CRITICISM OF ACCOUNTS INQUIRY MAY BE DEMANDED Australian and N.Z. Cable Association. LONDON, December 7. According to a chartered accountant’s statement of accounts of the Empire Exhibition, it has been hitherto ascertained that the financial loss is nearly £1,600,000. The immediate liability of the guarantors is fixed at 15s in the £. , (Sydney “Sun" Cabled The guarantors are bitterly disappointed at the Wembley losses, and are likely to urge an inquiry into the whole financial administration. The auditors’ statement showed:— Capital expenditure, £2,739,954. Revenue, £2,814,935. Other expenditure, £1,657,246, minimum loss, £1,581,905. The Government’s share of the guarantee which is to be called up, totals £1,100,000. “HOPELESS FROM THE OUTSET” (Received December 8, 8.5 p.m.) There are indications tnat the Wemb ley accounts, which are given proxninenc© in all tb© papers, will b© very severely criticised. The “Morning Post” understands that the view of tbe directors is that their task was hopeless from .the outset. They found themselves committed to a huge expenditure. The stadium could have been built for £IOO,OOO instead of £500,000. Tbe “Post” states that it hopes the Government will not enforce the liability of the guarantors. If it is enforced, it is possible a controversy will be aroused, which would be inappropriate to a great Imperial concern.

WAS THERE EXTRAVAGANCE ?, “The Times” states that those who have a true conception of the meaning and the results of Wembley will not think the accounts represent too bad a bargain. Tbe “Daily Herald,” under the heading “Bad Management Somewhere,’! Says the House of Commons should insist on an investigation by a committee free of Government influence. The “Financial News” states that the taxpayer is entitled to know whether his share of the loss might not have been smaller.