Financial Review's There Is Money In It

NZ Truth, Issue 1150, 15 December 1927, Page 4

Financial Review's There Is Money In It

Wellington Show Association,

Incorporated

£50,000 8-per-cent.Debenture Issue

(By "Fiat Lux.")

THE Wellington Show Association (Incorporated) is the most enter-

S per cent, will be paid. This interest rate of 8 per cent., from the investor's point of view, is an eminently satisfactory one, and should prove sufficiently attractive to promptly bring in the whole £40,000 required. <~ For the class of investment the rate is a fair one from the Association's viewpoint, since there is no mortgage security behind the advance. Shortly after the inauguration of the Association it was realized that to attain maximum efficiency with economy it would be necessary to acquire a permanent home for show purposes, and to this end negotiations were commenced with the Wellington City Council wi*th a view to obtaining a suitable area of Town Belt land. After very protracted negotiations an. agreement was reached regarding an area in John Street which con-

prising' and energetic public body born of the Empire City for many, years past, and its present efforts to raise funds for the provision of a permanent home for its activities merits the fullest financial support of all "who have the interests of the whole of the Dominion at heart. To date the Association has held four shows in temporary accommodation provided by the courtesy of the Wellington Harbor Board. Each show lias been run in conjunction with the Manufacturers' Association and has been a brilliant success and a liberal education in the manufacturing- resources of the whole Dominion. There is nothing- whatever about the Association itself, its ob.loots or Its shows I

in any way parochial except its

Worthy

name, which could with advantage be altered to give a

truer indication of the scope of its activities and service.

tains that evilsmelling, foul, rat-rio*den eyesore known contemptuously as "Jam Tin Gully."

For this reason alone the present financial proposals are worthy of the fullest support of manufacturers and others throughout the whole Dominion, quite apart from the fact that the investment in itself is a perfectly sound one. Regarding- the prospects ahead of this concern, following are some very interesting figures culled from the past three years' accounts, and from these "Fiat Lux" has arrived at the conclusion that responders to the Association's appeal for debenture money should not have any uneasiness regarding their interest or capital, although the debentures themselves are apparently "naked," since no mention is mafie in the prospectus of any specific security' therefor.

The total area is approximately 13 acres and is held by the Association under the Wellington City and Suburban Grounds Act, 1927, by lease from the Wellington City Council, which returns the freehold and also certain rights over the land Sind buildings, all of which ultimately revert to the Council.

Apart from the revenue from shows, which should, with the high-class conveniences of every kind provided in the new quarters, show a tremendous increase over past figures, the Association anticipates that when the building is not in use for show purposes it will be possible to let it continuously for indoor tennis, bowling, skating, boxing, dancing and all kinds of athletic games and sports. The total area of that portion of the building which it is proposed to proceed with at once is approximately 120,000 feet of floor space. It is anticipated this will be ready

to house the 1928 Winter Show. The dancing' floorage it is stated will be about four times the area of the Wellington Town Hall, and this feature alone should produce considerable revenue as it will fill a badly-felt want in the Capital City, which is woefully short of accommodation for :l really large gathering. The, Wellington Manufacturers' Association Incorporated, it is started, will affiliate with the Show Association in its new undertaking, and has empowered its executive to invest £ 3000 _____ > with the Show Association. Fifteen hundred of thig amount is to be applied to taking 8 per cent, debentures, whilst the

To the net profits for the last three years has to be added that for 1924. the year of the inauguration of the Association, when it would appear the surplus was £1722, thus bringing the net profits for the four years up to the very handsome total of £9505, which represents the accumulated funds of the Association at date. In addition to the profits set out above, the Manufacturers' Association has also received a comfortable surplus from each show, but that

profit does not of course appear in

Surplus

the accounts of the Show Association, which has

always brought to account only its net proportion of entrance, etc., money. Another big factor to be considered in arriving at the money value of the shows held by the Association is the very big amount of expense incurred each year in fitting up the Harbor Board's sheds for show purposes.

remaining- £ISOO is to be lent entirely free of interest and is not repayable until after the whole of the debentures now offered have been redeemed. Also the Manufacturers' Association undertakes to utilize a minimum of 12,000 feet of letting space at each Winter Show. In addition to the offer to the public of these debentures, the prospectus contains an appeal addressed to those citizens who are not in a position to take up these securities. The suggestion is made that in such cases a person should lend his money for a short definite period entirely free of interest to assist the Association to get the scheme under way. In return for a free-of-interest loan of £IOO for two years or its equivalent the' lender will be made a life member of the Association. Regarding repayment of debentures, although these are to be issued with a currency of twenty years, the Association reserves to itself the right to pay off any debentures at the expiration* of ten years upon giving six months' written notice of its intention to do so. The debentures to be paid off under this reservation will be decided upon by ballot. In conclusion. "Fiat Lux" believes the proposals of the Association to be sound; the benefits to be derived from the fullest consummation of the Association's plans will be Dominion-wide and therefore the proposals are worthy of the support of all classes of the community throughout New Zealand.

According to the published accounts this has amounted to well over £2OOO for the last three shows alone, and practically the whole of these moneys will be saved when the Association occupies its own permanent quarters.

Coming: now to the. Association's specific proposals for financing the new exhibition building and sports ground, governmental authorization has been given for the Association to raise ~£ 50,000 by way of debentures. Of this total £40,000 worth is now being offered for public subscription. The debentures are in denominations of £lO and £IOO and have a currency of 20 years, dating from April 1, 1928. The terms of subscription are particularly easy, being 10 per cent, on application, 10 per cent, on allotment and the balance in four equal instalments of 20 per cent, each, the first instalment being- payable not earlier than March, 1928, the balance at Intervals of not less than three months. A very wise provision has been added enabling any investor who desires so to do to pay up immediately the full value of the debentures taken up, in which case interest will be paid from date of receipt of the cash up to March 31 next at the rate of 6 per cent, and thereafter the full rate of

rncome from sources .. Expenses .. Net Profit .. all 1925 £ 63G3 37G9 2594 192G £ G395 3340 3055 1927 . £ 50G5 2932 2133