J. C. WILLIAMSON, LTD

Hokitika Guardian, 22 January 1930, Page 8

J. C. WILLIAMSON, LTD

DECREASED PROFITS

A serious state of affairs in the Australian theatrical world is revealed in a statement made in Sydney recently by Sir George Tallis, chairman of directors of J. C Williamson Limited. The linn’s operations during the year ended June 30th, 1929, had resulted in a profit of £50,804. Sir George said, but this was a drop of £34,198 when compared with the profits of the previous year. He blamed the State and federal amusement taxes for the decrease rather than the invasion of the “talkies” and predicted that the activities of the firm would have to be reduced bv half.

Sir George attributed the falling off in profit to financial depression, keen competition, and heavy taxation. Gross' returns for the year were £165,352 and expenses £114,548. Dividends on 8 per cent preference shares absorbed £12,000, while the ordinary 10 per cent shares absorbed £37,500. It has been thought necessary to transfer £1304 to reserves, which now stood at £352, 090 in addition to a special reserve fund of £20,000.

“Talkies,” are being shown at the Theatre Royal Sydney, “Sir George said. “We are now seriously considering the advisability of reconstructing Her Majesty’s Theatre, Sydney, as another “talkie” house. In this event at least £300,000 to £400,000 which used to be spent and distributed among Australians will be sent to the other side of the world. The Theatre Royal, Melbourne, may be sold to a drapery firm and the reconstruction of His Majesty’s Theatre, Melbourne, which was recently destroyed by fire, has been abandoned.

“A KNOCK-OUT BLOW.”

“In South Australia we have received a knock-out blow by the imposition of the double tax during the last three years Our business in Adelaide lias been absolutely ruined. We have definitely proved that the public will not pay 11s 8d for a 10s ticket, or 9s 4d for an 8s ticket, or 8s 2d for a 7s ticket. A large number of our patrons have either ceased coming to the theatre or have patronised the cheaper portions off the house. Our operations have become commercially impossible. “During the last few year's we have distributed more than £1,000,000 a year throughout Australia. We have had very frequently directed from twelve to fifteen companies at a time, representing hundreds of thousands of pounds in wages to artists and other employees We have also been the best customers of the railway in the Commonwealth “The Grand Opera season two years ago involved the firm in a loss of £35, 000. We willingly accepted that very heavy financial sacrifice as we felt

that we owed it to our patrons to give them from time to time the very best that the world could provide. With the introduction of the double entertainment tax, grand opera and such great enterprises are no longer possible as far as this firm is concerned. NEED FOR RETRENCHMENT. “Last year our profits amounted to exactly 5 per cent, of our gross receipts. This year we shall show a substantial loss on our undertakings; yet we are now engaged in the task of reconstructing our prices of admission in order to see how and where we can possibly bear this aditional 8 per cent of the gross which the State Government has just imposed, as we realise that the public cannot and will not pay increased prices. Obviously it can only be met by retrenchment and dismissals, most regrettable at a time when it should be the object of all wise legislation to encourage employers to maintain wages and conditions, and avoid wholesale dismissals. 1 Sir George suggested that a small tax might be placed on the lower-pric-ed tickets which at present escaped both the Federal and State taxation, and that entertainment tax should be levied on all forms of sport. The revenue from this source would be greater that that received from the double tax on the higher-priced tickets. , i LOSS TO GOVERNMENTS. “Last year we collected for the Goernment from our patrons more than 980,090 in entertainment taxation and wo paid more than £20,000 in land tax alone,” he said. “In addition to these larger commitments, the revenue

of the Federal and State Governments have considerably benefited by tbe large amount of income tax paid by our artists and employees throughout Australia. With the shrinkage of our business, at least -50 per cent, of this will now be lost to the various Government.” New Zealand relies on Australia for its theatrical fare, and oven though entertainment taxation in the Dominion is not nearly a.s heavy as it is in the Commonwealth, playgoers hero will also be elI'ected by the state of a H airs brought about by conditions in Australia. With lower theatres in Sydney and Melbourne there will be proportionately fewer companies visiting New Zealand.