Exhibition Amusements, Ltd.

NZ Truth, Issue 473, 11 July 1914, Page 2

Exhibition Amusements, Ltd.

Where has the Money Gone?

A Warning to Investors

The balance-sheet of the above concern has just come to hand, but the report of the directors is apparently held over until the Sth inst. when the ordinary general meeting of shareholders is to take place m Auckland. As a rule the directors' report is printed and accompanies all such documents. In a properly managed concern the directors' names are printed as an evidence of good faith on some conspicuous part of the balance-sheet. In this case not one director's name appears, and even the blessed auditor has forgotten to put the usual string of "Tommy rot" 'letters to .the end of his. It is. very plain that the results of this plundering concern dp not give satisfaction to the people who are responsible for its management. Everyone seems to wish jo keep out of the light arid there is icS'lot of loriging m the following tnqlloh which is to be proposed at the meeting: — That it has been proved to the satisfaction of the shareholders ,tha ( t the company cannot, by reason of. its liabilities, continue, its business and that it is advisable, to wind up the same, and that a . liquidator be appointed. Yes, get the dashed thing out of the way as quick as possible. Unfortunately this scribe has not "the prospectus of the company at hand, but he is open to bet' that, the inducements to the people who put the CASH INTO THIS BURSTED ■-, CONCEKN had a rosy tale put before them. There must have been some special treacle served out to the deluded ones who we.re' induced to pay a premium for their shares. It appears that' 16S0 shares were issued at a premium of £1 per share; and these do not seem to be preference shares. If they 'are, then, the fact Is not mentioned m the balance-sheet. It Is to assume" that such an important fact could not be allowed to pass by the auditor. Such .being : the case, it appears that the people who paid a premium on the shares have been sadly gulled." It. is to be hoped that they will take all the legal steps they can against the directors and promoters of this busted business. Too many rotten companies have thefr origin m Auckland city and it is. time a star| was, made to shake the tar out of the people responsible. It is possible that the directors may have a good story to pitch those who are on the losvhg side of things— the shareholders — but the pity is that they did not print it m the tisunl manner. The people who put their good money into this concern have no chance to weigh; matters before they go to the meeting and are thus forced into a most unfair position. Once again, "Cambist"' draws attention to tho rotten state" of our company laws. There (s no Stale official to keepMirectors up tp the mark, or to see that shareholders get a fair go for their money. Everything is left to find its owji level, and > no ,, s Qi\G need fear, prosecution.^ , .balance-sheet, shows 'that the 'company have lost £3820 during the short 'period It ..was m business, and the way trie money, went was a caution! . In all £21,099, were taken from

the public who made themselves glad at the Exhibition, and this was disposed of as follows: "Wages" £3145; "Exhibition Commissioners" £5260; "Proportion of takings paid to sublessees" £3320; "Running expenses, etc." £431. The balance — £S93S, is^ all that was left for the profit and loss* account of this concern. It appears that the Exhibition Commissioners COLLARED TWENTY-FIVE PER CETJT OF THE TAKINGS, and one way and the other more- than fifty per cent, of the gross income went m disbursements. '• The profit and loss figures show that the gross profits were the above mentioned £ S93S, while expenses eat up £2761; and £10,000 had to be written off for rights expired. The balance-sheet paid up capital is quite the, large sum of £15,276, plus premiums, £1689 already mentioned. Bills' payable and sundry creditors total £3722. ; On the assets side; buildings, plant- -and machinery are £19,---560; bills "receivable, £216; cash m bank, £91. The principal assets arc m the buildings and plant. What these will fetch under liquidation is hard to say 7 There* is bound-to be a heavy loss m any case, which, when added tp the one now. disclosed, will leave but |ittlc , for shareholders. The latte* should be told who got the benefit of the £10,000 writtert off for Exhibition rights. Did that suni go into the <?offers of the Commissioners as well as the £5260? If such is the case, then ' the Commissioners made a fine, hard bargain that explains where a lot of the, alleged success came from m the running of the weird contraption knqwn as the Auckland Exhibition, What a place for biting the pocket it was to be sure! "Cambist" will never forget the way he was .hit up for sundry "bobs" while chasing after merriment" last Christmas. It whs bite all the time, so now we see that the side-shows were bitten hard as well, and m biting the public the Amusements Company arid everyone else, a small lot of people have been pretty well "done m" for close on £19,000. It js to be hoped the- duped shareholders will be real nasty at the coming meeting. The names of all concerned should be treasured up for future reference. .