AUCKLAND TROTTING CLUB.

NZ Truth, Issue 946, 12 January 1924, Page 13

AUCKLAND TROTTING CLUB.

A Wonderful Balance -Sheet.

Marvellous Bond Issue.

That trotting is f&Bt beeomihf * most popular form of outdoor sport m this country Li made clter by the wonderful progresa shown m the bal-ance-sheets issued by the various clubs throughout the Dominion. Tear after year the Income grows, and year after year Bill Ma&sey's utter failure m financial matters obtrudes Itself upon the notice of the people. Nothing has struck "Cambist" so forcibly as the amount which our plea-sure-loving people have to hand over to this incompetent Government as taxation upon their pleasures and to meet the interest r due to. the bondholders who have this country In pawn. : The sum of £34,591 is the amount which has been lifted from the pockets of the patrons of the Auckland Trotting Club during the twelve months ended last July.- Because Of the liberal sporty nature of the persons from whom this crushing taxation is gathered, Very little protest is made by these enjoyable folk. But! it must not be forgotten that while the rigorous demand of fiscal folly is submitted to without murmur by our horsey public, the others, who perhaps never reach a racecourse, have also to put up with the heaviest taxation of any other colony or Dominion m the Empire. The burden of unnecessary taxation Ib fast becoming

A MENACE TO HOMELY COMFORT, and to the more exuberant section of the public who rightly desire some enjoyment as a relaxation from the daily grind, also to the proper func~ tioning of business enterprise. In spite of the foregoing weight of heavy taxation tho Auckland Trotting Club presents a splendid balance-sheet. It has accumulated a capital account of £38,900, has only £11,933 of outside liabilities owing on mortgages, and on the other side. shows assets set down m the bank amounting to £8743. A very solid position, indeed. But there is something that does not meet the eye here, namely, the.' tremendous undervaluation of the assets m thJe shape of properties and equipment. These particular items are worth, on the most conservative valuation, over £100,000, bo that the. position induced this humble writer to draw.- some in-' teresting conclusions upon the splendid situation at Which the clUb has arrived. Two things have happened m the growth of this club. First, it has never written up Its properties, but has held* them m the books at cost price, less depreciations written off from year to year. Secondly, all of Its profits are put back Into the business, so to speak, and because no better word occurs to "Cambist." There are no dividends to eat up the growing surpluses which have followed the course of yearß covered In the unincorporated existence of this joyful proposition. There is . I A FINE LESSON to be learned from, tbis kind of man* agement, and, strange to day, that lesson needs to be applied to every co-operative institution m the Dominion, namely, that all "profits" or surpluses gained through the operations of such societies should be capitalised to a greater extent than has ever been the case with such bodies. In the instance just before us every bit of profit has been capitalised, and this working with the increased values of the property has brought into being a very strong institution. On the strength of the revealed values of the assets of this club, it has made an appeal to investors for £00,000 mortgage debenture stock, bearing interest at the high rate of 8 per cent, per annum. The whole issue was taken up within a couple of days' time, and many later applicants had to be refused. The security for this issue is, of course, undoubted, and In this writer's opinion the rate of Interest should have been between 0 and 7 per cent, per annum. There Is neither common-sense nor good business m throwing away tv fraction m matters of finance whenever a security so amply secures the lenders as m this case. However, the issue is now well held, and buyers are on the lookout for these debentures at £107 to £108. The margin is £100,000 over the total issue, £ 00,000, bo that explains a lot. The debentures can be paid off by the clubrirf 1980, though the full currency is to March. 1934. This is one more instance that there Is PLENTY OF MONEY m the country to take up sound investments or to promote good enterprises. Heavy taxation hangs like a dark cloud over, all our affairs. Its shade makes people timid, and it In the curße of the times. The best cure for these matters is to turn the present Government out of office and get some people m who do not work tht country for the benefit of banks, shipping rings, mercantile combines, and wowsers. ' The management of this club and its committee have every reason to be proud of the success attained. That tho public will support it goes without saying, so long as the public confidence is not slighted through the fiUßh of prosperity It enjoys. The course Is becoming more comfortable, which, with reduced entrance charges, should greatly Increase the patronage of tho public. The latter process introduces a fine co-op-erative principle, which is to make the prlvlleßOH a» wldosproad as possible, thoroby saining more goodwill, more political power, and more human enjoyment.