OPERA HO USE COMPANY

Dominion, Volume 8, Issue 2452, 4 May 1915, Page 7

OPERA HO USE COMPANY

A LIVELY MEETING BALANCE-SHEET ATTACKED Mr. W. 11. P. Barber presided at tlio annual meeting of the Wellington Opera iJotiso Company held in the rehearsal room of tho now Grand Opera Houso at noon yesterday. Only a limitod Jiunibor of shareholders were present. Tho annual report was as follows;— "The directors, in submitting tho twonty-aoventh annual report and bal-unoo-slieet, regret that tnoy have to place on reoord tho loss the company lias sustained by the death of the late Mr. W. C. Gasquoine, who had occupied a seat on the board for over twenty years, and also the death last Augußt of Mr. William M'Lean, who had zealously carried out the duties of secretary for over twenty-six years. Mr. W. Broolin Taylor, who for many years had assisted tho lato Mr. M'Lean in carrying out tho duties of tllie oompany, has been appointed to tho position of iiecretary. The directors consider that, in view of the completion of tho Grand Opera House, the necessity for filling the vacancy caused by Mr. Gasquoine's death does not now oxißt, and recommend that no fresh appointment be made. Tho balance-sheet presented herewith shows a complete statement of Income and expenditure for the year ending March 31, 1915. Tho directors recommend a dividend of 3 per cent, 'lliis, together with 3 per cent, paid on October 15 last, makes the dividend G per cent, for the year; also that the usual bonus of £103 to the directors be declared; and that such dividend and bonus be made payable on or before Wednesday, May 5, 1915. It will bo observed, upon perusal of the balance-sheet, that the profit and loss account shows a credit balance of £2710 6d., and after paying the dividend and directors' honorarium, a balance of about £1200 will be carried forward. Shareholders will also notice that the amount ireceived of the now capital amounts to £26,454 12s. 6d., leaving still £3545 7s. 6d. to call up." In moving tho adoption of the report and balance-sheet the chairman said it was the twenty-seventh annual meeting Tho first paragraph in the report drew attention to tho loss sustained by the death of the lato Mr. W. C. Gasquoine, who was for twenty years a member of the board, and also of Mr. William M'Lean, who had been associated with the company as seoretary for many years. No appointment was made in Mr. Gasquoine's place, as the new theatre had been completed twelve months ago, and both houses being leased, it was agreed that there wan not enough business to warrant tne appointment of another director. The building known as Everybody's Theatre j has been leased for a long term, and J the new theatre bad been leased, and in occupation for the past year. The first lease of ond year lapsed oii April 11, and negotiations carried on until the renewal of the lease had been agreed upon, though tho papers were not yet signed.

Mr. M'Lellan: "For how long?" "For twelve months," replied Mr. Barber. Continuing, tho chairman said that with regard to the balance-sheet, the profit and loss showed a less amount to credit than last year, which was accounted for by expenditure that would be non-recurring. Then there was au unpaid proportion of insurance and expenses in connection with negotiations with Williamson's (the lessees) in Australia. The overdraft was now £4965, but that would practically disappear during the coining year. Although it may be said that the earnings did not justify a 6 per cent, dividend, the directors thought they were perfectly justified in paying that dividend in view of the prospects of tho coming year. The total cost of the building and land was £61,000, against the original estimate of £33,985, but he did not think that the money had been injudiciously spent. The company had determined to erect a theatre that would be a credit to the city, and which would accommodate tlie largest companies to tour New Zealand. Bad ! the thea,tre not been erected by the company, it- would have been built by someone else. Tho syndicate was in existence, and had approached Williamson's,' and had they not erected a new theatre shareholders might not now be enjoying a dividend at all. He reminded those present that even tho competition of the old Theatre Royal was such that at one time Opera House shares could be bought for os., and they had had to step in and take over the lease of the building to protect themselves. Over £3000 had been spent in renovating Everybody's Theatre, and that was now in a better state than it was twelve months ago. The sum of £250 was allowed for depreciation of carpets and furnishings in the Grand Opera House. No depreciation had been allowed on the new building, and here the chairman read a letter from the auditors (Messrs. W. C. Stephens and E. Bucholz) to the effect that depreciation should be provided for.

Tho motion to adopt the report was seconded by Mr. Osborn.

Mr. Jas. M'Lellan: "And if depreciation is added and brought into acoount it is, of course, value for money. I mention this merely from a book-keeping point of view." Continuing, Mr. Muiellun said that ho noticed the alteration in value of the freehold (Grand Opera House), -which had been reduced by £1638, as against the sum mentioned last year, and though that £1638 evidently went into the balance, it was not shown in the profit and loss account. The balance-sheet of the past year was a fearful and wonderful thing! Mr. Barber said that the amount. was interest accrued that had been transferred from the land to the building, and was included in the total of £63,000. It was the same as it was last year. Mr. M'Lellan said that they were paying a dividend when they were really not able to pay their way. There was an amount of £2021 set down as interest—interest on what? It would be 5 per cent, on £50,000. Where did they owe it? Strange to say thero was no interest shown last year. It was a fearful and wonderful business, taking it altogether. They were paying the dividends out of capital last year, and were doing the same this year. Ho would like to op--, pose the passing of the balance-sheet, but he knew how hopeless that was, as the shareholders were the greatest lot of nincompoops he had ever come across. Mr. C. Plimmer: "You include yourself among 1 them?" Mr„ M'Lellan; "Oh, yes, I'm one of them." Mr. Barber, replying, said it was the usual thing for Mr. M'Lellan to complain about the balance-sheet, but it showed how much he knew when lie did not know what dividend was paid last year. Mr. M'Lellan should know as a business man that preliminary charges were set clown as capital charges. Mr. M'Lellan: "No." Continuing, Mr. Barber said the Amount referred to had simply been removed from the land to the building. The total value of the land and building (New Grand Opera House) was £(>3,000, and nothing had been written off. Mr- M'Lellan was intervening again when Mr. Barber applied the closure by stating that he would only allow a personal explanation or a question. The chairman announced that Messrs, Barber and Klockton retired by the effluxion of time, and offered themselves for re-election. On the motion of Mr. M'Lellan. seconded bv Mr. T. S. UoniMson, they were re-r,Wud.

change of auditors, and proposed Messrs. Kember and Son. Tins was a | shareholders' matter, and should bo carried. , Mr. S. Gilmer proposed as an amendment that the old auditors be retained. Mr. Osborn was inclined to agree with Mr M'Lellan that "in view of (he discussion a change was needed." He suggested Messrs. Badham and Biss as .auditors. Thereupon, Mr. M'Lollan, who said he had no preference, withdrew his nominees in favour of Mr. Osborn's. On being put to tho rote five votes wore recorded in favour of _ tho change, and five (including the directors present) in favour of retaining tho present auditors. Tho chairman gave his casting vote in favour of Messrs. Stevens and Bucliolz. "Poor shareholders," said Mr. M'Lellan. "It's a disgraceful thing—the ' directors should not have voted!"