AMALGAMATION

Bay of Plenty Beacon, Volume 1, Issue 53, 23 August 1939, Page 5

AMALGAMATION

WINTER ANb A. AND P. SHOWS 'Jk[ PLANS TO BE DISCUSSED Plans for the amalgamation of the Bay of Plenty Winter Show and the Whakatane and Rangitaiki Agricultural and Pastoral p'he ed before the annual meeting of the and P. Society in the County Chambers on Monday evening, and after a discussion it was decided to •circulate figures tabled by Mr W. • Sullivan among the executive of the A. and P. Society, and that a meeting of the executive of the h\o bodies should be held when the matter could be discussed and a subcommittee set up to consider points of detail. gave the proposals a arable reception, any caution shown being on the grounds of finance. Mr Sullivan, in, bringing forward "the matter said amalgamation had always been the eventual object. Some .years ago a Queen Carnival hod been organised to raise funds to effect the amalgamation, but not enough money had been collected so the money had been divided between, the two bodies, as had been planned before the campaign was began, in * the event of its outcome being failure to reach the goal set. Each association had got about £350. The finances of the associations had now improved. The Winter Show — Association had considered the matter. The present liability of the A. •■and P. Society was about £500, and 'that of the Winter Show about £600. The total expenditure necessary "would be about £3500. It was estimated that the cost of bringing the Winter Show hall to the showGrounds would be about £650. It was •considered advisable to erect something in the way of a small concert hall for performances in connection with shows, and for letting purposes x —at a cost of about £500. General ■ground improvements and fencing -would be about £800, and sundry expenses about £450. These sums, with Hhe existing liabilities of £1100, totalled £3500. WINTER SHOW DEBENTURES. "The Winter Show debenture hold, 'ers had agreed to convert their de_bentures for a further term of ten or 20 if the association -thought best at four per cent in. terest ) so this sum would be deduct- • ed from the amount required to fin.ance the amalgamation. iFrom a study of the balance sheets of the associations, and by taking the results of the last three years, it had been conservatively estimated that hall rentals would amount to Vbout £120, paid subscriptions £200, Winter Show profits to £180, A. and P. profits to £150 ? so that the total ! income would be about £650. That did not provide for any increased revenue, or fon the £74 a year which the defence department was now pay ing for the Winter Show hall. Expenses had been fairly estimat- ' <ed at £140 as interest on the £3500 ' debentures, insurance £20, water iates £6, ground rents £25, . repairs : : and maintenance £50, lighting excluding show charges £10, and general £25, caretaker £25, secretarial £150. The total would be £451, and ; the excess about £200.

PAYING debentures. r . So far as paying debenture interest was concerned he said his association liad honoured their liabilities and wanted to honour everything in the future. The shareholders should not be asked to throw debentures in. They could give debenture holders sound secur_ ity ? and he favoured 50 per cent of the profits being set aside to pay off £ the debentures. Absentees and deceased estates could be paid off first, And others drawn by lot. In this way the inteicst charge would constantly fall. ' ' It had been suggested that they insure the life of a member for the sum of £1000. The premium would he £48 a 3 r ear and in 20 the policy would be worth £1422. RESTED WITH THEM. The whole thing rested entirely vwith them, said Mr Sullivan. Did they consider themselves competent to raise the money required for debentures? It was a fairly big hurdle but they could clear it. He did not think a, time would come when they could not pay interest on the debentures. C f> Nothin g could be done for about' n months, he said, and in that time. Ie associations would each have Id a show from profits would i probably have still further reduced c .'.mount required, .

Mr H. G. Rand supported Mr Sullivan. .<*•- Mr R. Ruddick said finance would be "the only difficulty. 'He thought, however, that debentures were a better way of getting the money than by going to the bank or getting people to guarantee the account, though raising the money might be hard. WHAKATANE'S GRASP. "''lf I went to Opouriao and asked them for money they would say "Do you want to put everything in Whakatane?'he added with a smile. '"Well, they must put it somewhere, " said Mr Sullivan. ''They can't take it with them von know.' "Whakatane's got it all now," said someone else. ''Opouriao can't afford a new bank like Whakatane is doing.'* Mr Rand pointed out that amalgaamtion would mean the elimination of many expenses. Tent and marquee hire would be one such. Mr W. A. McCracken agreed that the matter was worth going into. Debentures seemed the sound way of financing it. The old idea about worrying over institutions going to Whakatane was done with, Whakatane was the centre and the ground was a central and suitable one. The financial aspect would be the test, but surety the money would come in when they had the new guaranteed price. Then they would think nothing of it. A voice: You mean we'll all be unconscious! Mr Sullivan then put his motion on the lines referred to earlier. MiYeoman seconded it. As far as running the show was concerned, said Mr he thought there should be one secretary and two executives. Mr Sullivan's motion, was carried unauimouslv.