FINANCIAL AID GIVEN

Southland Times, Issue 24108, 23 April 1940, Page 6

FINANCIAL AID GIVEN

Government’s Part In Exhibition

LOSS OF REVENUE FROM PLAYLAND (Special to The Times) WELLINGTON, April 22. It now appears that without the large financial assistance given by the Government to the Centennial Exhibition Company, it would by now find itself in a parlous position. Wellington business people will no doubt be well pleased with their monetary returns resulting from the holding of the Exhibition, as there has been a large amount of foreign capital expended in Wellington by visitors from all parts of the Dominion. The taxpayers of the Dominion, who have never had an opportunity to see the Exhibition, will be called on to pay a material contribution, and it is this contribution through the Government which will save the Exhibition Company from financial chaos. The Government made a straight-out gift to the company of £50,000, and it also took up shares to the value of £35,000. In addition, it guaranteed a bank overdraft for £125,000, and spent about £75,000 on the Government exhibit. In the face of these figures, the capital of about £lOO,OOO subscribed by the ordinary shareholders does not seem a very large amount. It is not anticipated that either the Government or the shareholders will receive any return from their outlay, but it is thought that the bank overdraft should be liquidated from revenue and the salvage of the buildings. LOSS OF PLAYLAND REVENUE There was a distinct cleavage of opinion among the directors about whether the company should itself run Playland, or sell the rights, and it would seem that an error of judgment was made by those -who decided to sell the rights to the English company. The Dunedin Exhibition paid a dividend of just over 16/- in the £l, and it was really enabled to do this by the revenue it received from the amusement park. The Double Grip Steel Devices Company, Ltd., controlled all the major amusement attractions, such as the big switchback, the crazy house, the trick motorcar arenas and so on, and it will do well from its venture. It was stated last week that the crazy house alone had up to then taken £17,000, and that the house had cost to erect something like £7OOO.

The English company sold the privilege of conducting the minor attractions coming under the general heading of “chocolate alley.” Some of the concessionaries will do moderately well, but the majority of them have lost or will lose their money. At least two residents of Dunedin who operated in “chocolate alley” have lost their money. One of them said that his venture had proved a “wash-out,” and this phrase can be applied to many others. What the position would have been had war not broken out cannot, of course, be stated. It is held with some authority that the Exhibition covers far too much ground, and that it lacks the composite character of the Dunedin Exhibition.