WELLINGTON SHOW VENTURES

NZ Truth, Issue 1213, 28 February 1929, Page 9

WELLINGTON SHOW VENTURES

(By "Fiat Lux.") The Wellington Show Association for the 13 months ended October 31 last enjoyed the most successful period m its history, v both financially and m show achievement.

BOTH the chairman and a prominent member, however, utter a very serious warning against the danger of capitalisation beyond what is compatible with the potentialities of the district. •' The land upon which the Show Buildings have been erected belongs..to the Wellington City Council, and was known locally by. various appellations, the favorite being "Jam Tin Gully." It was a foul-looking, unsightly rubbish tip for years, but with the passing of the Wellington City Exhibition and Grounds Act. 1927, it was handed over, upon various conditions,

profits is, of course, so much for debentures (about' £3Boo per annum) and the ■ balance we are spending on improvements. "The further (capital) expenditure was estimated at about £15,000. To date we have paid on all contracts and work on hand , an amount of £62,500. "We are still faced with further substantial expenditure to complete the playing area with seating 1 for 10,000 people, making a total expenditure of some £78,000. "We are also negotiating with a view to accommodating 1 the Royal Show permanently ~at John Street, and at

WELLINGTON SHOW ASSOCIATION (INCORPORATED). ; ; Balance- Sheet, October 31, 1928. * , . , LIABILITIES. ASSETS. Debentures 40,674 Show buildings, gro.unds, ; . Creditors ....*. 667 fences, ioad«, etc. 54,264 Brink 20 Preliminary expenses 1633 Manufacturers' Association 1500 Furniture and equipment . . . 770 Accumulated funds 11,234 Debtors' 378 ( Cash 50 £57,095 £57.095

to the Show Association, and one year saw this bleak waste converted into magnificent grounds with a splendid show building, both of which undoubtedly do fill a long felt want m the capital city. Under the Act the Show Association was empowered to raise £50,000 for building and roading. As it was not intended to carry out the entire building plans immediately it was decided to proceed only with certain works, at an estimated cost of £48,000, of which £40,000 was to be raised on debentures under the £50,000 authority. A sum of £5000 was to have been found by the Association itself and £ 3000 by the Manufacturers' Association. From the annual, report, which is dated January 25, 1929, it appears that capital expenditure to date is £62,500, and further sums to complete the playing area will bring this up to £78.000. Speaking on this point the chairman stated: "The first charge '-against our BURNING POUND NOTES! Would you deliberately feet fire to money ? Not unless you were insane, you say. Yet, when you consider it, you are likeiy to burn REAL, money if through some cause or other your home or business property should be destroyed by fire and- you are not ADEQUATELY insured!. The Mercantile and General Insurance Company, Ltd.. would be glad., to review your policies with you and to show you how to obtain FULL coverage against flre loss. This New Zealand owned Company settles claims promptly. Head Office: Pa'hania Street, Wellington. Tel. 40-56 i. Branches and Agents everywhere. Subscribed Capital, £250,000.*

this stage I would suggest a word of caution. "That is that, with the works m hand; the works yet to be completed, and the further works contemplated, there may be a danger of over-capitalising the whole venture; also that careful consideration will have to be given to the matter." The venture is now on a really good footing, anil the revenue m future should steadily increase from lettings of the buildings and grounds. • But revenue is not inexhaustible, and great care appears to. be needed to see that the fixed charges do not become so heavy as. to endanger the life of the association.