PROFITS IN AUSTRALIA

Sun (Auckland), Volume I, Issue 303, 14 March 1928, Page 14

PROFITS IN AUSTRALIA

The Melbourne “Herald” gives some very interesting figures, concerning the finance centred round station 3LO. The director of 3LO, Mr. Conder, commented recently on the figures supplied to Mr. Fenton, M.H.R., by the Postmaster-General, showing the revenue received by the chief “A” class broadcasting stations in Australia. “The figures have been lumped together in a way that makes it difficult to follow them,” said Mr. Conder. “They have been presented in the Press to-day in a manner which would lead the public to believe that 3LO in particular has committed the awful indiscretion of succeeding too well in building up an organisation that has made itself popular all over the Southern Hemisphere. Juggling Figures

‘‘The huge total of £111,052 is announced as the ‘cut’ 3LO shareholders have received from the service the company has given. I was staggered when I read it, and wondered for a moment whether I should not be back at Pentridge in a different capacity from that of governor.

‘‘A little reflection and arithmetic, however, soon showed me that the figure was arrived at by adding the paid-up share capital to the dividends and managerial and directors’ fees for the years we have been operating. Almost any successful commercial concern, which is all we claim to be, and which we are proud of being, would show a similar result. “The profit for 1925 is shown as £10,977. Reference to the profit and loss account here shows that it was actually £5,025, after deducting certain charges. This followed a pioneers* loss of £4,048. We paid a dividend that absorbed £5,000. Dividend the Same “The following year we are said in this statement to have made a profit of over £15,000. The profit and loss statement prepared by our accountants for our examination shows the profit to have been £7,103. We again paid a dividend of £ 5,000. Apparently the profit announced in the House was arrived at by adding to the figure the amount of directors’ fees and managerial expenses for the year. “It is interesting to note that, in the matter of management, 3LO succeeded in building up a national service with the sum of £6,250 —a result which stands by itself in the history of Australian broadcasting. Jobs Provided “From the amount received by us from subscribers we have paid out huge sums to others, giving constant employment to a great many people. Salaries to the studio staff absorbed £7,000, artists and lecturers got £14,000; orchestra and band maintained by the studio received £7,150; while for musical and theatrical services we paid out £2,000. “The Postmaster-General’s Department received what is perhaps the largest individual amount paid by a company in this State, if not in Australia — £1,364. At the University we maintain a research man. Research costs us £6OO, and composers of music have to thank 3LO for an addition of £ 5,7 44 to their revenues. “The figures published to-day have been before the Royal Commission on Wireless, charged specially to note anything wrong with the working of broadcasting stations. Our success struck the Commission from a different angle from that taken by newspaper critics. It is a queer experience to be told by implication that the road to blessedness in commerce is through lowliness, poverty and mismanagement. “We have made money; we are distributing our profits to the shareholders plucky enough to back this venture when it was a pure gamble whether we would come out of it with a whole skin; our directors are adequately paid, likewise our studio staff and artists; our programmes rank high; a special commission of inquiry commends us. We have undertaken huge liabilities to provide a service. We have paid Amalgamated Wireless in royalties £13,563, and in fees for transmission, another £4,433. Apparently our critics would have everybody prosperous except poor 3LO. Too bad, we can't oblige them!”