OPUNAKE RACING CLUB

Taranaki Daily News, 1 August 1932, Page 3

OPUNAKE RACING CLUB

LOSS ON YEAR’S OPERATIONS CARRYING ON” CONSIDERED. PROPERTY VALUED TOO HIGHLY. The annual meeting of the Opunake Racing Club was held on Saturday, Mr. E. S. Forsyth presiding over an attendance of about 20. The annual report stated that it was discouraging to have to report for the second year in succession a loss on the race meeting. Weather affected the attendance considerably, only £2os' Ils 6d being collected at the gates. The reduction in the amount given in stakes, no doubt influenced the number of nominations received, but it was difficult te see how any fixed programme could be maintained when the totalisator, which was supposed to provide all monies needed for stakes, was showing such a serious drop in turnover. The profit and loss account disclosed a loss of £423 17s Bd, to which .must be added the allowance for depreciation of £225. Needless to say this drain on a club’s resources could not continue inde finitely and a number of country clubs would face bankruptcy if racing revenue continued to decline. The committee regretted to report the death since the last annual meeting, of Mr. Rua Moetahuna, a very old member of the club, and a once well-known personality of the Turf. Also recently the club suffered a loss through the death ot Mr. W. L. F. Chambers, who for over 20 years held the position of fees clerk.. The following were nominated as officials, and not being in excess of the number required, were declared elected: Pre sident, Mr. A. Good; vice-president, Mr. E. S. Forsyth; hon. treasurer, Mr. G. BarrBrown; stewards and committee, Messrs. J. P. Burton, F. Julian, A. H. Stevenson, G. Hammond, C. O. Edmonds, H. Young, S. J. Richards, J. Young and J. Hickey Jnr The balance-sheet showed receipts £1405 Is lid and expenditure £2053 19s 7d, leaving , a loss of'£423 17s Bd, in addition to which should be added £225 allowed for depreciation. The assets were set down at £ll,OlB 8s 2d, representing land £2450, buildings £7300, nlant £250, inscribed stock £lOOO, cash £lB 8s 2d. The liabilities were mortgages £4OOO, overdraft £343_ 13s 2d, balance capital account £6674 15s. The income .was represented by subscriptions (members and entrance fees) £69 .2s, nomination and acceptance £133 ss, privileges and gates £332 17s 6d, totalisator £626 16s 9d, interest £55 12s 3d, rents £lO2, sundry receipts £3l 0s sd, jockey fees £54 Bs. . The i outgoings included stakes £650, official payments £62 16s lOd, salaries and attendance at meetings £157 6s Id, maintenance and repairs £l4 9s lid, advertising, printing and stationery £73 Ils 6d, Government taxes £287 4s 2d, rates £57 5s Id, insurances £37 0s 3d, commissions £6O Os Bd, New Zealand Racing Conference Levy etc., £96 8s 2d, general expenses £22 Ils, interest £260 7s, audit £5 ss, petty cash £l4 3s lid, luncheons £l2 18s, band £7 10s, depreciation £225, 1 .nk charges £5 2s, dishonoured cheque £5. favourable Comparison. Mr. A. Good said that the balance-sheet compared very favourably with that of other similar racing clubs, and the position might be a great deal worse. He thought the question of Government valuation might be investigated. The valuation, he considered, was very high on a property that was subject to such heavy depreciation. Mr. P. S. Riley said that they had objected to the valuation and had received an allowance of £l5OO. ■

Mr. Good considered that for property used once a year the valuation seemed ab surd. . ' ... . Mr. J. Young asked if the, valuation for rating was reduced each year, but Mr. Good explained that that was not so; it was only the depreciation allowed on the buildings that represented a lower value. He considered they would be justified in calling for a revaluation. In answer to Mr. C. N. Hallett the chairman stated that the club would receive a benefit from the 20 per cent, re duction in interest.

Mr. Good moved that it be a. recommendation to the incoming committee to go into the question of obtaining a revaluation of the property. Mr. D. Markham was re-elected auditor. Mr. J. N. Stephenson said he heard that there was to be the question of carrying on.

The chairman: I think we can carry on all right—at least for another year (laughter). As Mr. Good has said we-are in a pretty good position compared with many other clubs. Mr. Stephenson indicated that he was in agreement with carrying on. and pointed out that if they stood still it would cost the club £5OO a year. The chairman stated that there would also be great loss by depreciation of the track if there were no racing for two years. To Mr. J. Young’s question the chairman said the land was valued at about £2's per acre, whereupon Mr. Young, asked if there were a forced sale could they get the amount of the mortgage. b The chairman said he did not think so on present values. Nor did he think it possible for the rent of the property to pay all other expenses if they did not race. The secretary pointed out that with the reduction of interest their expenditure under this heading would amount to about £2OO a year. The chairman said he did not think their revenue apart from racing would cover the standing outgoings. - Mr. B.- Duffy asked if something could be done to augment the attendance. He suggested the distribution of a greater number of ladies’ complimentary tickets. Mr. Stephenson suggested that perhaps lower charges for admission might stimulate attendance. EWE TO FACE FACTS. Mr. C. O. Edmonds said that the bal-ance-sheet was likely to give a false impression and they would have to go very carefully into the financial question. He suggested that the committee draw _up comparative balances both with and without a race meeting. They, would then be able to consider the position better. .It was far too early yet to talk of doing without a meeting. They had not anything like the surplus of £6674 that was shown in the balance-sheet. It was perhaps a pessimistic way of talking, but they had to face facts and be honest about it. The chairman said that the matter of ladies’ complimentary tickets had been threshed out before and it was decided that it was better to cut them down. Other clubs were cutting them out altogether. The secretary pointed out that Wellington held a one-day meeting on March 17 and this, he considered, acted detrimentally to the Opunake meeting by attracting the best jockeys. Mr. J. Young said that Opunake showed the highest returns for a one-day country meeting in New Zealand, and he attributed the financial difficulties solely to the depression. Dr. T. N. Watt considered that it was not good sportsmanship for Wellington to hold a meeting on March 17, and he urged that the committee make a strong protest to the racing conference against this allocation. He believed that . both meetings would be comparative failures if held on the same day, whereas if Wellington drop-

ped out Opunake might have a successful dS The chairman added that while they believed in catering for the apprentices owners undoubtedly would prefer to employ good jockeys. , Mr. Young: They cannot expect racing clubs which are losing money to keep on losing money until they are bankrupt. Mr. Stephenson reiterated that it would cost £5OO if they did not hold a meeting, while even if they held one the cost would be but about £l3O mgre, so it appeared that they might as well hold the meeting. Mr. G. Hammond (optimistically): Little birds will sing again. Mr. Stephenson in moving a vote of thanks to the committee and officials said that the balance-sheet could be lookecj at in an optimistic as well as a pessimistic manner. , , , « Thanks were also accorded the non. surgeon (Dr. Watt) and auxiliary stewards. Mr. Forsyth was re-elected chairman at a subsequent meeting of the committee. The following new members were elected: Messrs. P. Brophy, A. E. Brunette, E. Edwards, R. Hikaka and E. D. Whittle.