A GUSTY INTERLUDE

Dominion, Volume 9, Issue 2762, 4 May 1916, Page 8

A GUSTY INTERLUDE

LIVELY ANNUAL MEETING

OPERA BOUSE COMPANY

The annual meeting of the Wellington Opera House Company was held yesterday at noon, Mr. W. H. P. Barber, chairman of. directors, presiding. . In moving the adoption of the report (already published), the chairman . said that tho company was in a rather different position to other companies, inasmuch as the revenue was fixed, and the cxDenditure was practically fixed. Unfortunately t.he number of theatrical companies visiting Wellington had fallen off consequent upon the war, but that, of course, did not affect tho shareholders, who, however, would liko to see the theatre utilised- as fully as possible. There was a difficulty in getting companies and plays, not only in New Zealand, but in Australia also, where some of, the largest theatres haa been converted into, picture houses, just owing to not being able to secure artists and ,up-to-date plays. Respecting that regrettable falling off, the lessees could not be blamed. It .was owing to the shortage of travelling companies at tho present -time. It would be seen that an appropriation account had been provided now to ■ which the revenue wonld be transferred. Dividends would be paid. out of that nc- . count. Ths leaEe of the Graud • Opera House to J.- 0. Williamson, Ltd., had just expired, and negotiations were proceeding for a continuance of the lease, but nothing liad been settled so far.

Mr. Jas. M'Lellan: I thought wo lad a- longer lease. Wasn't the original lease five years? . Tho chairman: No, for one year. Mr. M'Lellan: But you stated when you were about to build , that you had'a long lease. That was the bait held out to shareholders to get the money. You wcro to get the lease, but I learned afterwards that it was never signed. The chairman: There .havo been only two leases of one year each. Mr. Wm. Ferguson: You said that the company had a fixed incomc and expenditure. How can that be if the lease has expired? The chairman: We are only dealing with the balance-sheet for tho year April X. 1915, to March Jl, 1916. In the revenue received from Williamson's and Fuller's there was no alteration at all. . Mr. M'Lellan: Then there's no fixed income for this year? . The chairman: Negotiations are being conducted, but there is nothing fixed up yet. Mr. M'Lellan: Do you expect to get tho same rent? The chairman (smiling): Oh, yes, if not more! Mr. Ferguson referred to a circular he had received from the company's auditors.. Tho chairman intimated that tho directors wero not responsible for the circular issued by the auditors. If they had anything to- say .it should- be said in the certificate attached to the balance-sheet. If they had anything to say outsido the certificate he had no objection. Mr. Stephens was a, shareholder, and an auditor, and could if he liked speak as ono or both. Mr. W. O. Stephens: In tho reports of the meeting in the Press last year— The chairman: I cannot' allow you to reopen the business of last year's meeting, or in connection with tho balance-sheet Which was adopted. Mr. Stephens said that was tantamount to gagging him. Tho chairman: You can epoak about anything else, but I cannot allow you to reopen a discussion on last year's ■ balancesheet. Mr. Stephens: Then I'll speak about depreciation. We are only doing our duty as auditors of this company to point out that no depreciation is being allowed on this : building. The directors do not consider it necessary, but we would point it out to shareholders and leave it to their judgment. Tho auditor? do not and never have made up the balance-sheet of the company. The directors issue the balancesheet—not tho auditors. The chairman said that Inst year's bal-ance-sliect had been adopted and could not be re-disoussea. Mr. Stephens: It is a pity you didn't rule that way last year when Mr. M'Lellan referred to the 1914 balance-sheet. The chairman then went back himself to last year to explain that the alteration in the value of the Opera. House laud from £25,631 in 1914 to £23,993 in 1915 had been brought about by au alteration mado by the auditors in readjusting the balancesheet. It was not a serious thing, and he did not wisli to say anything about it, but hero were the auditors' own figures in the margin (showing last year's original balance-sheet).

Mr. Ferguson: You. probably mean that those alterations were made at the instigation of the auditors. The alterations would be made by the secretary of the company. Mr. M'Lcllan: If the building had increased in value and the land decreasedattention should have been drawn to it, but there "was no cross entry anywhere—in any shape or form. It wa:» a simple matter of debit and credit, and wo ought to know all about it. It was reprehensible of the directors to publish such a balancesheet and contend it was due to tho auditors. The auditors are our safeguards, not the safeguards of the directors at all. The directors had voted for the auditors at the last meeting, and they were reappointed- only on the casting vote of the , chairman. Mr. Barber contended that he followed the usual practico in voting for the present auditors. Mr. Ferguson wished to know if the auditors had signed the 1915 balance-sheet as printed.: / Mr. Bucholz said it -was not customary for an auditor to sign the printed balancesheet. Ho_ only signed the orijinaL He had not signed the printed balance-sheets then in the hands of shareholders nor had-he seen one. ■ Mr. Ferguson contended that auditors ought to see tho printed',balance-sheet-erase tho printed names and sign for it. Mr. Bucholz: Can you produce any authority for it? Mr. Ferguson: ,No, but in my opinion you'ought to do it. Is it not a fact that tho audited balance-sheet contains fuller details, and that the printed one is usually a summary only? The chairmau: This (the 1914-15 balancesheet) is ail exact copy of that signed by the auditors.

Mr. Bucholz: Tho 1914 balance-sheet -was not printed as -we - signed it! The chairman: Will you show us what alterations were mode Mr.. W. C. Stephens: I -ivill! With that he came forward to the chairman's table, examined the original and printed 1914-15 balance-sheet, and returned. to his seat "without having shown any ■ alteration, and admitting that they were "practically the .same. ,

The chairman said that it was quite clear that the alteration had been made by the auditors in accordance with the figures in the margin. However! they' were all out of order in re-opening tho whole thing, but ho had allowed it -owing to one of the auditors saying that he was being gagged. He hoped that they were satisfied with the form of the balance-sheet this year. Mr. Ferguson: I hopo you-don't refer to what I said as bickering. There were certain statements made in a circular issued by tho auditors, and I thought it better to com© along to the meeting. Mr. Barber explained that the only depreciation allowed was on furniture and stage fittings. It -would not be long before that was alt'-written off,-when tliey could commons to -write something off tho building. Mr. Ferguson ashed if they thought £250 was suflicicnt to -write off on property worth over £62,000—the old and new Opera Houses • Mr. Barber said that between £3000 and £4000 , had been spent on the old Opera xlouso 'by the lessees, and to-day the building was worth more than was shown in the balance-sheet. Ho did not think the Grand Opera House had depreciated at all, indeed,,a. good deal of money had been spent on it by the lessees. tax l ?' Fcr&USOU: Do y<m 110t W income The chairman: No, this (the land) tax was the only one wo've been paying for years. Williamson's paid the rates. Messrs. 0. Pliinmer and S. Gilmer were re-elected directors, and Messrs. E. BuHi. olz QJjd W. C. -Stephens were re-appointed