Page:1930 QLD Royal Commission into Racing Report.djvu/47

 There is no limitation of members.

The moneys received from all sources have been applied in upkeep, in prize money, and improvements, in taxation, in payment of interest on over-drafts, and in payments to Messrs. Nathan and Wren.

Proper books of account are kept, which disclose the manner in which, and the purposes for which all moneys are expended, applied, disposed of, or used.

The profits, without deduction for income tax, realised since 1st July, 1923, are as follows:—

It will be noted that much greater profits were made in 1924 than in subsequent years, and that since 1927 the profits have decreased.

The annual profits, without deduction of income tax, have thus averaged £8,280. Income tax paid over the same period was £10,110, an average of £1,685 per annum. The net average annual profit available for meeting an annual obligation of £10,000 was thus £6,595.

There are no reserves or liquid assets. There is nothing to warrant the expectation of any greatly increased profits in the future.

On this material the Commission, while not anxious to hazard a guess as to the future, does not feel justified in finding that the "club" is financially able to complete and carry out the obligations imposed upon it by the agreement of 24th August, 1923, even as now reduced by the amending agreement of 5th February, 1930.

(b) Coorparoo Turf Club.

This is not a club, but a proprietary business conducted under the above name by the owner of Coorparoo Racecourse, Brisbane Amusements, Ltd.

This Company was incorporated in 1920 with a nominal capital of £10,000, in shares of £1 each, to acquire the property. The consideration for the purchase, £3,325, was satisfied by the issue of 3,325 of these shares.

The original members of the Company, who were residents of Queensland, were able for some time to carry on the racing business of the Company in competition with and independently of the Southern interests controlling the other unregistered courses.

In November, 1922, however, after stubborn resistance, the Company was forced to capitulate, and the majority of its shareholding passed into Southern hands, the vendors receiving about £1 12s. a share in cash and a guarantee of 15 per cent, dividends for the next three years.

Mr, Burke, the original Chairman of Directors, still retains that position.