THE COFFEE PALACE COMPANY.

Otago Daily Times, Issue 7056, 26 September 1884, Page 4

THE COFFEE PALACE COMPANY.

TO THE.EDITOB. Siß,—Your correspondent "E. Hudson," replying to "Inquirer" recently, acknowledged that the Coffee Palace business •• has drifted to the proprietor" (R. Hudson). The latter also say B: (1) "That Mr Warren has now taken it in hand, and I hope ha will receive sufficient support from the public to justify my often-expressed opinion that under proper management the business is a thoroughly sound one' ; and (2) " I,- have shown what has become of the creditors' money: what has become of the other half and the shareholders' money it is not my province to say. I have only been connected with the directors or management of the Company for such a brief period that I must leave the explanation to be made by those who are better acquainted with it, ♦ ' :.

as one of the largest shareholdsrs in the. Company, I have already pointed out that it suffered considerably during the first three months of its existence. However, over two years have lapsed since Mr Hudson and myself were elected to the directorate of the Company, and it therefore follows that he has been connected with its management for more than "a brief period." Will Mr Hudson show that the Company would have been successful if ha had displayed more interest in it? Can he indicate where savings might have been effected, and where the revenue of the Company could have been increased? I may say that the directors have charged nothing for their services, and members of the finance and other committees did a great deal of work for which they have received no pecuniary consideration! whatever. .

At the last-annual meeting of the Company Mr Hudson adopted' my suggestion^ that ha should rejoin the directorate.' He shortly afterwards accepted the position of managing director, and generally entered into an agreement whereby he guaranteed the shareholders against loss for the ensuing 12 months, indicating that under his experienced direction the Company should prosper. The agreement was duly signed, &c. It is sad to think that the first experiment ia connection with a coffee palace here nas been a complete failure, but an old proverb Bays, 'Its an- ill wind that blows'' nobody !Zb!'- Company has expended' about *4UOO in the furnishing and management of tha Dunedin Coffee Palace, which originally promised so well as "a good investment," with a guarantee by Mr Hudson of 10 per cent, per annum on two-thirds of the capital of the Company for a period of three years, v ~* fctiok that in justice to the shareholders Mr Hudson, as managing director, should place before the Board & complete statement re tha Company, including the cost of management since he signed the guarantee, itho cost of repairs, and the amount allowed far building improvements, &c—lam, &c, . . , W. A. W. Wathen. Dunedin s September 23.