FINANCE OF RACING CLUB

Taranaki Daily News, 16 August 1929, Page 10

FINANCE OF RACING CLUB

THE GUARANTEE SYSTEM. NO CHANGE TO BE MADE. The advisability or otherwise of retaining the present system under which the Stratford Racing Club's overdraft at the bank is supported by guarantors who have a majority of representatives on the management committee was discussed at the annual meeting of the club on Wednesday night. Although no decision was made one way or the other, from the views expressed by members it was generally indicated that the majority were in favour of the retention of the guarantee system.

Air. W. 11. Young said that in view of the club's sound financial position he supposed the relieving of the guarantors had engaged the committee’s attention.

“I fail to see why a guarantee i% necessary at all, - ’ said Mr. J. 11. Robson. The club should be able to get advances from the bank without the guarantors. They had been agitating for an extra permit, but as long as the present constitution was retained he did not think they would be successful. The position was not us simple as *t appeared, said Mr. A. Coleman. Some years ago a financial move had been necessary and the bank would not advance the money on a mortgage on the property of the club, but only on condition that the money was vouched for by guarantors who, in their turn,, had the property as se&urity. The expenditure of £13,000 over nine years had been met out of revenue but that was for only nine years. He instanced that in one year'there had been a liability of £4OOO to £so'oo and it had taken some years to clear that debt off. The same had happened on another occasion. LARGE EXPENDITURE NECESSARY. “If we go on with the present proposed improvements to the grandstand it will be necessary for the club to spend many thousands, and when this is added to the present overdraft members will see the need for retaining the guarantee system,” Mr. Coleman said. It would take years to eliminate that indebtedness. With the Stratford club economy had been studied in even the smallest items, and it was by reducing expenditure that the club increased the profits. However, for a long time the club had been indebted to the bank and it would be for some years to come.

That members were satisfied with the manner in which the guarantors had conducted the affairs of the club was shown by the fact that as a result of an amendment to the rules two years ago memjbers had been permitted to elect four of tho nine committee members but had refused to displace the guarantors’ representatives, said the president (Mr. S. Pitt) in reply to Messrs. Young and Robson.

“I am sorry this question has arisen,” said Mr. A. W. Budge, “and I think the men who guaranteed the finances of the chib should have major control.” Every transaction between the club and the bank had been put through without the bank having to make any stipulations, said Mr. J. C. Allen, who thought that spoke volumes for the guarantors’ standing with the bank. “The club is deeply indebted to the guarantors and members have no grouch at all,” he said. . The older members would recollect, said Mr. D. J. Malone, that when the club first decided to build a track the expert advice of Mr. Hill, of Auckland, was secured. He proposed a comprehensive scheme that most thought was far too big to be practicable for Stratford, but a few members, among whom was Mr. Malone, fought for what was called “Hill’s scheme.”' To effect it a large expenditure was necessary and but for the introduction of the guarantor system the club would not be the proud possessor of a track equal to any in the Dominion. Men were bringing horses to the Stratford meeting who would never have done so had the track not been brought up to the high standard obtaining to-day. There had been a time, said Mr. Malone, when the overdraft had reached £7OOO and he hoped the same thing j would occur again. It was better to be j progressive and a little in debt rather j than free of overdraft and stagnant. When the proposed improvements to the grandstand were completed there would probably be an expenditure of £7OOO to £OOOO to face in one year and the guarantors would be necessary. Future prospects were bright and it was reasonable to suppose that the profits would considerably increase. It would be an error, he thought, to undo the good work that had been carried out under the present system. “The time must come when we will need a large siim of money in one year and the bank will not lend it without some system of guarantee,” he said. THE GAME OF DRAUGHTS. STRATFORD DEFEAT HAWERA, | t,. . i 1 laying in a championship match at : •Stratford on Wednesday night, the j Stratford draughts team defeated Ha- j wera by 15 to 3. Details, with Strut- j ford players mentioned first, are: — E. Walter 24 v. Craigie lj. R. Forbes 4 v. Dixon 34. E. Cole 2 v. C. King 2. . A. Boyd 24 v. S. Pivac IJ. J. Weston 14 v. W. Trenor 24. F. Weston 2 v. G. Mackay 2. F. Jepson 4 v. E. Standford 0. MOTOR-CYCLE KNOCKS BOY OVER. Run over by a motor-cycle near the intersection of Broadway and Opunake Road at about 7 p.m. on Wednesday, Colin, the 15-year-old son of Sergeant J. Power (Stratford) sustained a broken leg. Apparently the boy was crossing the road and failed to see the motorcycle approaching. The rider, F. J. Taylor, Eltham, swerved, but was unable to avoid the boy, who was removed to the Stratford Public Hospital. His con■ai*>.on is reported to be satisfactory.