BREWERY SHARES

Sun (Auckland), Volume IV, Issue 948, 15 April 1930, Page 10

BREWERY SHARES

STRONG CRITICISM BY ALLIANCE THE SUN’S ATTITUDE PRAISED Prominent on the table at j meeting of the Auckland Council of the New Zealand Alliance, held last evening, was a copy of the prospectus of Dominion Breweries, Limited. This document formed exhibit “A,” while exhibit “B” was a copy of the Auckland SUN newspaper of March 31. The Sun playing an article entitled “Beer and Water, What the Public Pays For.” • The Sun had published a fearless and candid criticism of the prospectuse of Dominion Breweries, Limited. A copy of the prospectus had been handed to him, and it certainly was an amazing document, both as regards* to what it stated, and what it did not state. The most amazing feature was the proposal that the promoters should receive £39,000 for two small liquor concerns, while not one single figure was given to show the value of these businesses. A sum of £20,000 was to be paid for the Waitemata Brewery at Otahuhu. This was a small unpretentious wooden structure which certainly could not have cost much to erect. The sum included £3,000 for the licence, which probably cost £lO a few months ago, and £3,000 for the goodwill of this concern, which had been in active operation for only a comparatively few weeks.

Provision was also made for the promoters to draw salaries and large directors’ fees, with power to vote themselves, “for services rendered,” further sums, limited only by their modesty. The Alliance was not much concerned about investors who bought brewery shares knowing what the product of the brewery was responsible for. The Alliance, however, objected to the trafficking in the brewery licence, and it was proposed that representations should be made to the Minister of Customs, urging that as the Prime Minister had stated that this licence should not have been granted, and as the proprietors of the brewery did not now propose to retain it, the licence should be cancelled forthwith. It would be in the nature of a public scandal if the berwery proprietors were permitted to sell for £3,000 a licence granted to them only a few months ago. The prospectus also made provision for the_ establishment of distilleries. The secretary stated that he had been informed that distilleries formerly existed in Now Zealand, but that the Government had found them undesirable and had paid compensation in ord£r to close them down. It -Would be a retrograde step if distilleries were again allowed to be established in New Zealand. Strong opposition would be offered by the New Zealand Alliance to any such attempt.