J. D. WILLIAMS CO.

New Zealand Times, Volume XXXVII, Issue 8348, 7 February 1913, Page 11

J. D. WILLIAMS CO.

STATEMENT BY MB WILLIAMS. BLAME FOE CRISIS ATTACHED TO OTHERS. In view of the cabled report published yesterday of the reinstatement of Mr J. D. Williams as the managing director of tt Greater J. D Williams Amusements Co., Ltd., the following statement by Mr Williams, taken from the Sydney press, will bo read with interest: “About July 3rd in last year a director informed me that the best thing to do was to have a Royal Commission appointed to inquire into the affairs ot the coaipanv. I said, “That will suit me. 1 want investigations. I court the inllest investigation. Xt is necessary that there should be investigation.’ That, be it remembered, was in July —early m July of 1912. I said, 'That will certainly be the best thing to do. If the actual facts aro all pubUshed, X am sure the Australian public will exonerate me, and fix the blame where it really belongs. Another director said it would bo foolish to appoint a Royal Commission. I still urged that it should bo done. “A couple of days later—that w-ould be on July sth of last year—there was a directors’ meeting, and one director spoke of the matter of the dividend. He spoke about amounts brought forward from tho approximate return books. These amounts concerned the theatres and film exchanges only. They did not include tho head office .expenses, the writing off of leases, legal expenses, auditors’ fees, and other items ot expenditure that were very heavy. “After a lengthy discussion, tne directors declared a dividend of Is fid per share. That was the beginning of tlxe trouble that has led to the present crisis. One or two directors thought that the whole matter of the dividend should be left over till tho report was out. Other directors, however, nad their own way, and in spito of myself, it was decided to pay this dividend. My explanation of this dividend proposition was placed on the minutes, and is there recorded, now, as follows: .... “ ’Mr J. D. Williams, managing director, said that he wished it placed on the minutes that he was against the payment of a dividend till the half-yearly report had been issued. There were a lot of outstanding liabilities to be met. and though some of them had been arranged to be paid for in three months’ time, he did not know how much money was required at present, and could not understand that sort of finance—paying dividends before the half-yearly report was issued.’ “Now, that is my opinion about this disastrous dividend, as expressed on the minutes. But this was not the first time the same sort of thing has happened. The same thing had occurred several times before; aud at these different times the company was in such a flourishing condition that it did get over the difficulty. It is suggested that I had. as managing director, power to veto this dividend proposal. I only wish that _ i had possessed that power. Be assured it would have been unhesitatingly exercised. But I had not any such power. “Another thing. Had I called a general meeting of shareholders at that time to consider the question of the dividend, it is certain that the price of tho shares would at once have dropped to something like their present market value. I told the directors that 1 would not place my views as to the dividend proposal before the shareholders, thinking it best in the circumstances not to do so. But this present crisis has compelled me to speak,, in justice to myself and the company. “After going thoroughly into the amount of outstanding accounts, 1 saw that the company was over £30,000 in debt, taking into consideration the amounts that should have been written off lor leases in the first six months, aud the amounts that would have to be paid at, the end of the year, such aa auditors’ fees, legal expenses; etc; ' “The payment of the dividend was our big trouble. It put the company in q hole. It left the company without cash in hand to carry on with. It started this present crisis. It was a hole that the company, solid though it was, has never been able to clamber out of. To-day many of the accounts that wo are paying are those representing liabilities which, were incurred at that disastrous time. . , , “The directors later endeavoured to borrow £20,000 to make up the deficiency caused by the payment of the dividend and to carry on. But they were not successful. I, on my part, arranged the matter with Mr Sol. Green. The Crystal Palace at the time this serious trouble was brought about was iot bringing in the profits anticipated, and the slack season of the year for all “indoor” entertainments would scon set in—a factor of considerable moment, and one that should have deterred the board from paying the “Is Gd” dividend. “The company was getting further and further into debt. I tried my best twice to save it, and failed in both attempts. One attempt was to try and pool the shares, with, the co-operation ot one of the two directors responsible for tho declaration of the dividend and the assistance of some of the leading shareholders. That attempt failed. In trying to make it a success, I may mention, I myself incurred heavy personal loss. 1 also tried to bring about an amalgamation, in which ever way I could, of all the film interests, and after spending some £BOOO succeeded in doing it. “T> further help the finances tf ihe company, I agreed to give £SOOO for the use of my name in connection with the Luna Park 'enterprise. Also, 1 made £4OOO for the company in New Zealand. I wished to assist the company all 1 could. It was losing steadily, being the dull time of the year. “I have repeatedly, during the last two weeks, urged the directors to call a meeting of shareholders in order to adjust the affairs of the company. They have on each occasion refused. Things have latterly become so bitter between myself and the directors responsible for the payment of the dividend, to which I objected to, that I now positively refuse to sit with them. They are, I consider, the men responsible for all the trouble, and I cannot see my way clear to be associated with them any longer.” Mr Williams then proceeds to relate the difficulties ho has had to face since the declaration of tho dividend.