PLAINS ART UNION.

Hauraki Plains Gazette, Volume XXXVII, Issue 5068, 22 December 1926, Page 2

PLAINS ART UNION.

. HEAVY LOSS SUSTAINED. CREDITORS TO BE APPROACHED. The Hauraki Golden Art Union, promoted by the Hauraki Plains A. ajnd P. Association to liquidate the debt of £1309 existing on the showground at Kerepeehi, resulted in a loss Of £774 7s. A balance-sheet was j?resented by the organiser, Mr W. Booth; at a general meeting of members of the association at Kerepeehi on Monday evening. Members present were: Messrs H. D. Jamieson, J. Murdock; A; J. Innis, W. Shilton; A. Middleton; H. Hoff, P. R. Henry; W. D. Nicholas, and the secretary (Mr W. Booth). Mr J. Murdock was appointed to preside. BALANCE-SHEET. The cash statement of the balancesheet showed : Grosjs proceeds, sale of tickets £1144 13s 10d; less agents’ commissions £lB2 Is lOd ; and admission to hall on night of drawing £7 15s. The expenditure items were : Purchase Of gold £5OO 12s; 6d, wages and audit fee £196; petty cash - , travelling; bank; and sundry £69 17s 8d , interest £2l 12s; insurance 10s, printing; stationery, and advertising £307 9s lid, ca ( r £57 Bs, prize- money for limericks, etc.; £l5. Total; £ll6B 10s Id. Balajnce, excess of' expenditure .£l9B 3s Id. This was the dealing in cash. The profit and loss account gave fuller details, as follows: Net proceeds o'f tickets £962 12s. Net proceeds of tickets due by Auckland agent £77 13s 4d ; admission to hall £7 l'ss; estimated amount realisable from gold £5OO. Balance, loss £774 7s. Tota ( l, £2322 7s 4d.

Petty cash, travelling; bank; and sundry; £73 6s 8d ; interest £2l 12s, Wages and audit fee £196; insurance 10s, printing; advertising; and stationery £lOl5 6s 2d ; prize money £5OO, prize money limericks;, etc.; £l5; alluvial gold £5OO 12s 6d. , Total, £2322 7s 4d. ASSETS AND LIABILITIES. The statement of assets and liabilities showed sundry creditors £7ll 5s 3d, car account £llB 4s less £57 8s paid; overdraft £l9B 9s sd, total £970 10s Bd. The assets were.: Cat £llB 4s, sundry debtors (Auckland .agent) £77 13s 4d; cash in hand 6s 4d, net loss; profit and loss account; £774 7s. The auditor’s certificate stated that he certified that the above balance was a correct statement o'f affairs as ,at November 29, 1926. The. secretary’s certificate with regard to the number of tickets sold had been accepted. Th'e auditor, Mr G. E. Allen; of Paeroa; wrote as. follows :— “In enclose herewith balance-sheet as at November 29, 1926; and regret that it shows a loss, of £774 7s. There are Several features in conne,ction with the figures to which I .would direct your attention, as it is possible that .the loss may be increased. “Car Account shows an asset at cost price o'f £llB 4s. It appears to me that unless your asspeiation can find a purchaser at this figure the vendors may possibly have to repossess, and your asset would naturally disappear from the books. There is still £6O 16 s to be paid on the car—payments of which extend over a period to July, 1927. "Sundry debteors , £77 13s 4d. This is art amount due by your Auckland agent for tickets sold. Mr Booth and I. examined the returns and estimated the net amount still to come, in at this figure. Credit for same is showing in profit and loss. “Bank overdraft, £l9B 9s sd. This will have to be met by the guarantors', but whatever amount is received 'from your Auckland agent must be paid into the bank, and will not only reduce the overdraft but also correspondingly relieve the guarantors. In connection with the overdraft the,re is a contingent liability for interest after November 29, 1926, which, based on the present figure, will 'ajmount to somewhere in the vicinity of Is per day.» “Sundry creditors, £7ll 5s 3d. This is unfortunate', but .the burden will have to be passed on from the Art Union account to your association and be dealt with as the members may decide.” In reply to Mr Shilton the organiser said that the Auckland agent had asked for time in which to ; pay his account. He had contended that the agents he had appointed had not yet paid up. Ip reply to a question Mr Booth said that the only other asset of the association’s was its showground, valued for rating purposes at £llOO and mortgaged for £l3OO. It was not possible to estimate the amount of outstanding subscriptions, as a roll of members had hot been kept. Mr Murdock voiced the opinion that these amounts should be collected. The association had had an uphill fight from the very beginning, and money borrowed for improving the land had been expended on the last show. This was combated by Mr Henry, who explained how the loa t n money had been expended. A block of land had been purchased and improvements had been effected. About £209 had been expended on annual charges such as interest and overdraft; during the time the land was noh-revenue producing. There was little doubt that thq lack of support since the headquarters of the association had been removed to Kerepeehi was largely accountable for the present condition. The first show arranged to be hqld at Kerepeehi had to be abandoned on account of the influenza yepidemic after a large sum of money had been expended on preliminary Expenses. Under the, present circumstances it appeared that the association would have to go into liquidation. A member asked whether, in that ■event, the Official Assignee would go through the books and call oh all past members who had hot resigned to pay up subscriptions to date. Mr Henry expressed the opinion that as. members had not signed an application for membership they could not be held liable. With reference .to the fate of the showground, the secretary reported i

that the mortgagee had, suggested asking the Government to take over thq mortgage. Mr Henry expressed the opinion that in view of the low valuation of the land the Government would not advance sufficient. There only r® - mained to endeavour to get someone to take up a mortgage or go into liquidation. Mr Shilton said it appeared that the matter lay in the hands of thg creditors. There was little chance of .the organiser’s car being sold for morq than the balance now due on it. Mr H. D. Jamieson said that the association had been very unfortunate in striking a very bad time to float an, art union. The committee had done its best and had given a very great deal of time to .the matter. Under the circumstances he was of the opinion that the position should be explained to the creditors before a decision to liquidate was arrived at. Mr Murdock pointed out that the Minister of Internal Affairs had stat-' ed that there would only be three more big art unions. As it turned but there; were many big art promoted at the same time. 'After some discussion a resolution was passed that the creditors be written to, pointing out the position on account of the failure of the art union and asking what they would take, provided finances could be arranged. It was also agreed that the •mortgagees. of the showground be asjked for a reduction. Mr Henry suggested that a copy of the general and art union balancesheets ba forwarded with the letters.