H.— 44A

place, building-costs have been decreased very greatly owing to the depression. As a result of these factors the company's average rental per theatre will probably be considerably lower than that of the merger interests. 58. It has been stated above that the effect of the depression was to reduce theatre receipts considerably, and this is confirmed by the statement of gross rentals prepared by the Commissioner of Taxes. Information submitted to the Committee indicates that at the present time the renters' share of the gross theatre takings is lower than in 1929-30, but on a conservative estimate will still average at least 25 per cent, of the latter. The following table prepared on this basis shows the estimated theatre takings for the past four years. The renters' receipts for 1931-32 and 1932-33 are the Commissioner's figures, and those for 1933-34 are based on the return for ten months. No definite figures are available for 1930-31, and the estimate shown is based on the film-hire tax return for nine months, together with a consideration of the facts stated in paragraph 107 of the Appendix that for the first six months of 1930 the renters' receipts were approximately £300,000 :—

59. The theatre takings for 1929-30 would probably exceed those for 1930-31, and as stated previously the theatre-building programme of 1929-31 referred to above was apparently justified by the prosperity of the industry at the time. It wili be seen from paragraph 39 of the Appendix that despite this fact the three principal theatre companies then operating were in financial difficulties when the merger of interests took place. The further decrease in gross theatre receipts during the last two years does not indicate any justification for an extensive building programme. 60. In order to show the expansion of the business during 1932 and 1933, the following statement has been prepared showing towns in respect of which application for additional licenses have been received :— Amalgamated Theatres, Ltd. — Merger Interests— Independents— ( 2 )Dunedin. ( 3 )Parnell, Auckland. ( 2 )Dunedin ( 2 )Hector. ( 3 )Christchurch (Civic). HGisborne. ( 4 )Lower Hutt. ( 3 )Greenmeadows. C 1) Hamilton. ( 3 )Orepuki. (^Taradale. ( 6 )Herne Bay, Auckland. Kerridge Interests— ( 4 )Tuatapere. ( 2 )lnvercargill. ( 2 )Gisborne. ( 2 )Onehunga. ( e )Rotorua. ( I )Palmerston North. ( 2 )Tauranga. ( I )Napier. (^Thames. ( 4 )Wellington. ( 2 )Te Aroha. Since January of this year, when the appendix was written, the following applications have been received: — Amalgamated 1 heatres, Ltd.— Merger Interests—- Merger Interests—continued. ( b )Ashburton. ( 3 )Ashburton (His Majesty's). ( 4 )New Plymouth. ( 6 )Blenheim. ( 3 )Auckland (His Majesty's). ( 3 )New Plymouth (Empire). ( 4 )Christchurch. ( 6 )Auckland, Devonport. ( 4 )Sydenham (Christchurch). ( 4 )Christchurch. ( 4 )Auckland, Dominion Road. ( 4 ) Wellington. ( 6 )Dannevirke. ( 4 )Auckland, Great South Road. ( 6 )Wellington. ( I )Devonport, Auckland. ( 4 )Auckland, Greenwood's ( 6 )Westport. ( 4 )Dominion Road, Auckland. Corner. ( 4 )Woolston (Christchurch). ( 6 )Greymouth. ( 4 ) Auckland, Mt. Eden. ( 6 )Hawera. ( 6 )Auckland, Newmarket. Independents— ( 6 )Masterton. ( 4 )Auckland, Remuera. ( 4 )Auckland, Heme Bay. ( 6 )Nelson. ( 6 )Berhampore, Wellington. ( 6 )Christchurch. ( 4 )New Plymouth. ( 4 )Christchurch. ( 4 )Dunedin. ( 6 )Oamaru. ( 4 )Christchurch. ( 3 )Glen Eden. ( 4 )Te Kuiti. ( 6 )Dunedin. ( 3 ) and ( 4 )lnvercargill. ( 6 )Timaru. ( 4 )Greymouth. ( 4 )Morrinsville. ( 3 )Wairoa. ( 4 )Hawera. ( 3 ) and ( s )Nelson. ( 4 )Wellington. ( 3 )Oamaru (Opera House). ( 4 )Oamaru. ( 6 )Westport. ( 3 )Palmerston North (De Luxe). ( 6 )Ohakune Junction. ( 3 )Petone (Empire). ( 3 )Ratana Pah. Kerridge Interests— ( 4 )Ricoarton (Christchurch). ( s )Ruatoria. ( 2 )Paeroa. ( 4 )Rotorua. ( 6 )Te Kuiti. ( 4 )AVairoa. ( 6 )Napier. ( 3 )Wellington, Rintoul Street ( B )Whakatane. ( 3 )Nelson (Empire). (Star). ( J )New theatre built or building. ( 2 )Existing theatre reconstructed. ( 3 )Existing theatre. ( 4 )Application with draft plans. ( 6 )Final plans approved. ("(Application only for new theatre.

12

I ' I Renters' Gross I Estimated Gross Receipts. I Theatre Takings. £ £ 1930-31 .. .. .. .. .. .. 500,000 1,750,000 1931-32 .. .. .. .. .. .. 321,132 1,284,528 1932-33 .. .. .. .. .. .. 282,906 1,131,624 1933-34 .. .. .. .. .. .. 272,015 1,088,060