TU) BDAY, AUGUST 22, 1922.
MR. PARKER NESS'S REPLY
TO THE REPORT.
Hou. Mr. A. C. M. Fletcher.
tary bad appointed a local Committee, of which Mr. March was a member, to consider and advise the Government on the question of increased rates, This Committee, like Meters. Lowe, Bingham and Matthews, found that they had been asked to undertake a task which required techinsel know ledge not obtainable in the Colony, but notwithstanding this suggested a
THE CHINA MAIL.
obsolete is erroneous. Bull allowance for depreciation has been made in re- peat of the plant in Mr. W.W. Cook's valuation.
them, according to Mr. W. W. Cook, £328,286 for the roconstruction of the present establishment, and upon this £326,286 reconstruction prica a retura
TO-DAY'S ADVERTISEMENTS.
CO., LTD.
Part I, Clauro 6-If Mr. Cole's would have to be made to the ebare- THE GREEN ISLAND CEMENT valuation is based on the replacement holders; yet the Committee describo it valuos supplied by the Company, its "grasping" when the Company must be assumed that he approved expects a dividend on £280 000 the Ttecertained value of the present under- of and made these values his own is difficult to understand the aluse taking. Whether part of the Capital
NOTICE.
of the Report of the joint Committee rate of $120.00 arrived at, apparantly, "He" (Mr. Cole) "considers that arises,ps it does here, from appreciation INTERIM DIVIDEND of Filty
Colonial Secretary. Hongkong 18th, August 1922. Sir-I have to thank you for your courtesy in furnishing me with a copy of the two Chambora of Commerce, on on no known baris, but as a midway £10,837 represents the preseas value in value of buildings necessary to the the proposed agreement with the figura between the old rate and that Telephone Company for an extension, asked by the Company. of its Licence. I have read this do- Neither of these reports were of cument with care, which to my mind such a niture as to guide the Gov. discloses no good cause for the co-ernment to a fatisfactory decision tinued postponement of the conclusion They then resolved to seek the gui dance of specialists in Telepone Con- of the new licence.
Let me, before calling attention instruction, and arranged with the Com. detail to ite terms, remind you shortly of the long drawn out negotiations to which this report is the latest con tribution.
of the undertaking. Mr. Cook, one of the best known authorities in London on telephone matters and the assessor to the recent frame of Commone Com mittes appointed to enquire into the subject
05
cents (50 cents) per share has been declared for the half year end- ing 30th June 1922.
The REGISTER of SHARES of the
Company will be closed from the 30th August 1922 unill the 11th September 1922 (both days inclusive), during which perfod no transfer of shares can be registered.
By Order of the Board of Directors,
SHEWAN, TCMES & CO.,
General Managers. Hongkong, August 21, 1022.
HONGKONG FIRE INSURANCE. CO., LIMITED.
NOTICE,
of the undertaking sold by one owner Company's business, or from a rise in
Such Jaterim Dividend will be pay. to another." The Reporters do not the value of a portion of its plant, is indicate where and when Mr. Cole said 69 irrelevant as it would be for the able on and after MONDAY the 11th this and I venture to think that Mr. Company to object to have its rates September at the offices of the Com- Cola has been misunderstood, for such furrd on a depreciated Capital. It pany, where shareholders are request
statement means that be followed no must be allowed that had the plented to apply for Warrants. legal bacie of valuation at all. The decreased in value, say to half of its clause within brackets introduced by cost the Company would not be pany to bring one specilizt to the the Reporters "with presumably an justified in va'ning its property for Colony, while the Government would extension of licence and power to in rate making purposes at its original bring another, who would confer to crease rates", indicating thereby that cost. The same principle of course ap- gether and furnish theif findings on part of Mr. Cole's valuation of plies if its property has appreciated. Two and a half years ago the T leiho amount of the rates and the valus £21,837 is to be attributed to any The method which Messrs. Lowe, phoax Company, suffering like others
thing outside the actual land, buil- Bingham and Matthews claim to be both here and elsewhere from the rise
dings and plant, is unsupported by the right one in valuing an under- in prices consequent on the War ap
anything within the knowledge of the taking, namely what it would cost to plied to the Government for a recon-
Company, and unless it appears as a construst and establish plant of equal sideration of the subscription rates
definite subject of valuation in his re- capacity, less an appropriate dedno- which-fixed many years ago under
of London rates, port the presumption bas no warrant. tion in respect of depreciation, is the different circumstances-were out of was invited by the Company Part 1. Clause 7. The Reporters scursa purened by Mr. Cool. The date and had become inapplicable to and Mr. Cole, the General Manager are in error in understanding that the "cost price" or "the money in- the present time. The Government of the Shanghai Telephone Company, Company's valuation of £279,687 is vested" bad rightly no place in arriv- acknowledged that our application was invited by the Government to their idea of a fair value for the un-ing at the "present value."
Part 11, Clause 3 (a). The exist deserved consideration, if it was visit the Colony for the abovndertaking transferred from one owner
a going concerning Company will retain an interest justified by facts, and set afoot purpose. These gen.lemen in due to another enquiries to get full information on time agreed on a basis for arriving at (with presumably an extension of equivalent to what it brings in to the
to powers increase new company side by side with the the subject In the first instance, a revised schedule of charges to licence and they appointed Meare. Lowe, raplace the one which the war rates). The valuation is as described local subscribers whom the Company Mr. Cook's schedules atdhape will be ready to co-operate as Bingham & Matthews to acquie and conditione had thrown out of perin furcich information on the valupective, and presented their new certificates, which include nothing for Directors and Share bolder.
(b) Has no relevance to the present of the Company's undertaking and the schedule to the Government as jointly a going concern nor the extension of figure of the rates that would return agreed on and recommended for licence. Mr Cook was never asked or situation.
(a) Thie is doubtful. fair and ressonable compensation for adoption. The Government there expected to take these into considera- the service. These Gentlemen pur upon adopted it, and introduced the tion in bis valuation of the plant, as suod their naquities over a period of schedule in the draft agreement ha text of his schedule more than a year, and, although their which was mainly drawn up by certificate proves. conclusions led to no settlement of the Mr. Cole, and you after consult- above questions, the Report made ation with H.E. the Governor an so important admissions which thorised the publication of these now bear ctarely on the situation to-day rates. It is true that, although no In answering & question put by you one seriously contemplated the ae to the value of the existing under postponement that has since taken taking Meere. Lowe, Bingham & place in the signature of the Agree Matthews stated:-
meat, it was mentioned that should anything befall ita due completion the notification would not in the mean time take effect. The scale of charges had at long last heen arrived at by experts who knew their business and was accepted by the Government and the Company.
"The work involved in this kind of valuation call for the services of a technical Telephone Expert moreover one who specialises in Telephone Con
struction,"
maliers
The rates question
was regarded on both sides as a closed bok. En passant, it may be remarked that the newly authorised rates are materially less t'an those authorised in India and el-owhere.
and was,
(d) The fall of prices, such as it was allowed for by the appraisers up to March when the valuations were made. The London Committen recently reporting of the rates there saw no likelihood of any waterial fall during the next 5 years.
There it ro amount of Cepreciation "estimated as necessary for the new The Draft Agreement company." provides for depreciation and reserves
(e Mr Cook's valuation was based, of a percentage" aut excerding 8%' the words in the Draft Agreement are as he says "on a sound basis which not amounting to", but anti am prepared to defend in the wit. exceeding," 8%, depreciation, quite a different thing.
Dera box based on legal decisions.” Hi+ cortificates indicate that it follow. The 8% pei antum depreciation ised the courra approved by Masare. an average figure which would not Lowe, Bingham and Matthews namely apply to avery item of the plant reconstruction cost less depreciation." individually. In the case, for instance of Steel Poles, the depreciation is slow nail the residual value high (40 % after 25 years' life), in the case of another item of the plant-Storage Batteries, for example-the deprecia to is rapid (about 14%) and the
residual value pil.
Che exampl fies the error into may when dealing with matters of a techuical
Part 1 Claure 3. The Company
NOTICE IS HEREBY GIVEN that 3 Scrip Certificates with respect 8 shares numbered 2652/2653. 5855/5857 and 7043/7045 respect ively in the above Company in the name of Miss Julita P. dos Remedios of Macan have been lost, and abould the same not be produced before the 6th September 1922, 3 new Certi firates will be issued in favour of the said Miss Julita P. dos Remedios. and no transaction taking place under the old Scrip Certificates will be recognised by the Company. JARDINE, MATHESON & CO., LTD.,
General Managers, Hongkong, August 22, 1922.
PUBLIC AUCTION.
HE Undersigned havo received instruc
dons to sell by Public Auction, -FOB 1000TAT OF THE CONGRAARD).
ON
FRIDAY,
August 25, 1922, at 10.30 am..
at their Bales Rooms, No
De Vosna Road, Corner of Toe House Straat,
And
Sundry Household Faruitare,
I know of no difference between the basis of valuation in care of the National Telephone Company and that adopted by Mr. Cook in the 150 Hammocks, 50 cases Patty, present instance. The eyet known as the Tramway Terms i e. proparty and plant at valuation, plus 10% for compulsory sale. ad plus goodwill, was the one applied to the present care without any addition for good- will, going concern of compulsory
ente.
It is not yet known what the depreciation will be in the future,
must not exceed 8% except that by the Agreement it
·
1 Hammerless Sporting Gun by Frederick. Williams, and General Sundries
Erme :-Cash on delivery.
HTORES & HOUGH
Á LAŠKONISTA. Angkang. August 21, 1922,
"It must be made clear from the outset that it is not the value of the plant according to the bocks that we are dealing with, and we have taken the words "value of the existing up dertaking" to mean the "present value" that is to say what it would
On the valuation of the under cost to construct and establish plent of equal capacity less an appropriate taking the appraises differed, Mr.hich nou exp s deduction in respect of depreciation, Cook certifying the reconstruction
"The Telephone Company based coet at £826,286 and the pre-ent day character. their claim on cost, plus an addition value i, e, after allowing for deprecia- of 190% representing the increased tion at £279,687. Mr. Cole on the cor tend that the increas d rates are cost of material and labour as com- other hand valued it at £210,867. already much overdue and that as no pared with prewar cost. Euquiries of You thereupon sent for the appraisers interruptin is to take place is the the Shanghai Mutual Telephone Co. and asked for an explanation of their service during the period of transition
Part II, Clause 5. The property TO SECRETARIES OF CLUBS AND
Decessary for 01 ER INSTITUTIONS. through our Shanghai office bave difference. Mr. Cook represented that fru ons system to another, and the confirmed this increase and other the valuation which lad been prepar wiring costs will be incressed during from its situation
connected with Telephone ed under his suprevision and carefully this period, there is no reason for the bus are being situated in near to the Telophone bim had been postponing the increase which it is or very Costs. Further, socording to the Re-checked by
sound basis contended should have been granted Centre. It is proposed in erecting port of the Departmental Committee conductori
1 Mr. the 17 building, to add two floors to to hem 2 years ago. WOB prepared on Telephone rates presented to Par- which liament in 1920 the following state- d-fend in the witness box, whereas Cule, subsequently to the publicafor puble offices which would be let ment stews the percentages by which the basis of Mr. Cole's valuation was tion by the Company of the until the time arrivee when the whole the present cost of the main it ma of open to attack as departing from proposed new rates, suggested that of the building might be necessary for the telephone plant exceeds the pro standard practice based on legal they should only come into forca 3 or the business. This should be a sonica war average cost," giving sa average decisions Mr. Cole is understood to 3 years hence the suggestion was not of revenue to the Company.
(Continued on page 8) increase of 204 peo cent. over prewar have said that his figure of $210,837 communicated to the Company; and was a sum on which he thought that indeed such a suggestion would be ia In another place in the same Re-negotiations between a willing buyer consistent with his actions and with port the Firm adds on the subject of and a willing seller might he hased the terms of the Draft Agicement in
of which Depreciation
You eventually approved of Mr. the preparation The dificulty confronting us is Cook's figures as being in your judg-waa the chief mover. No, such suggest- the amount of euch allowance, and ment the right one, and this you ion was never made when Mr. Chok we are not in a position to state what announced to the Chamber of Com- and be agreed upon the scale. it should be, as we have not the merce when you recently met them Part I, Clause 9. The Compaty is necessary technical knowledge to form to explain the agreement which con- not able with present rates to esin a a scientific opinion As betained Mr. Cook's figures and which fair return on the Capital necessarily foto atated, the real present value is the the Government were ready to con-employed in rendering the service, cost of construction less depreciation." clude with the Company. At the and it is, of course, upon this Cupita! meling the that the rate should be based, indred Again, "The Company, the Govern- termination of the
costs.
OD
be
ment itself will recognise is entitled Chamber of Commerce proposed the for
to
be
WG8
rate making purposca, an a fair remuneration fer their appointment of the prerrat joint additional
kum for the "going services, and the statement marked B. committee to consider and report on conceru" is generally admitted. The shews hon the Company will fare the Drait Agreement, a proposition profit re erred to IL 1991 was
London which on the basis of $100 per annum" in which you acquiesced. This Com- £16,928 in Referring to this $100 basis, they add mitte bas after a lapse of 2 months equivalent to comething under 2% on "It must be noted that the above seat in their Report and with some £280,000. essentially rough estimate is based on of its details I propose to deal with 10,000 subscribers" (the actual num-seriatim. to-day is under 6,000)".
ام
ALL preliminary notices of forth. coming meetings, lectures and entertainments, sent for insertion in the news columns of the Ching Mail, are charged for at the rate of $1 each,
La
(as announced in May and June of last year) providing that they do not Occupy more than four lines. future if this space is exceeded they will be placed in the advertising columns at the prevailing rates
THE TELEPHONE HANDBOOK.
THE SECOND ISSUE OF THE TELEPHONE HANDBOOK IS NOW ON SALE AT THE OFFICES OF THE PUBLISHERS:
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SPECIALLY CONStructed for thÍS OLIMATE
JUST UNPACKED
AT
ANDERSON'S
THE BLUE BIRD CO.
Hefreshment Parlour and Candy Store,
No. 16A Des Voeux Road, Central. (Opposite to A. 8. Watson Dispensary).
Large quantity in stock of Sego Evaporated Milk at 20 Cents per in. Meckintosh Toffee, Caramel and
American Pine Nuts.
There are no Cameras and Lenses that can do the work of GOERZ
Sole agetits in China Telephone 3217.
HALL, LAW & 00.
10, Des Voeux Road Central.
TRIALS SOLICITED BY JAMES STEER
THE CHRONOMETER AND WATCH Maker (Contractor to H, M, Naval Ward,) 8, los Hovan Breast, BaxorONG
CARS
TEL.
3552
THE NEWSPAPER ENTERPRISE, LTD.,
CHINA MAIL OFFICE,
66
5, Wyndham Street, Part I, Clause 10. The dividende payable to the Company since its commencement in
up-to-date 1883 BYA
The TELEPHONE HANDBOOK consists of an ZA
follows:-
and accumte index of Telephone Subscribers, the numbers 1906 1883
Dil
being given in sequence. -1907 1914 5% on £14,761 1915 1921 10% on £39,761
Part 1, Clause. The Ilongkong Ja abort the Report anounced and Kowloon Exchange Plants and that Messrs. Lowe, Bingham & Mat- the Subscribers' Station Plant wore thews were unable, for want of expert: especially designed for use in this knowledge. to ascertain the value of humid climate. The plant is of the Capital employed and on which standard design and exactly the same alone the rates which would give a type as at pres at manufactured by The true Capital has risen until fair and reasonable profit could be Mesars, L. M. Ericsson fee in tallation it is now £280,000 and the number of arrived at
is conjunction with new systems subscribers' stationa has grown from Before the Report came into the elsewhere. Within the last two a few hundred to 6746. It is ap Governmert's possession, you had years the Hongkong Exchange plant parent also that the value of the ser- gone to England, where you has been added to the extent of one vice to each subscriber has thus in- ascertained that there badi bers a third of its present. capacity. After orcased immensely since the £10 general rise in telephone rates, the installation of the new system now rate was first introduced,
Such divisible profits as were earn- and came to the conclusion that cesary to provide greater capacity, an increase of the Hongkong rate be the present exchange plants would be ed over the above dividend were put gizning at $150 00 per cub:criber was used for sailer exchanges in outlying into the business. Had the Capital reasonable and that the return to the areas during development. Many of been increased by now issues from time operating company should be 12% pur the present tungLeto instruments are to time. a lees dividend oven than annum, any excess beyond this per- of the convertible type and are suit the above would have been paid on centage being divisible equally be-able for see on the Central Battery the larger capital. The Company is, tween the Subscribers and the Com-system; Magneto instruments which and always has been, a private onG pany. All this you announced to Sir tre not of the convertible type would owned by the Oriental Telophone and Newton Blabb and myself in a letter, be used in the development of cutly. Electrio Co. Ltd. and seeing it had copy of which you read to the ing areas. The cables and other aut no outside hareholders it was not Chamber of Commerce here when your jaid plant are of the best design and called upon to periodically bring recently met them to explain the vonarruction and are entirely suitable its issued share capital into accord agreement the Government was pro- for use with Central Battery with its tuo Capital. 1. w tele pared to conclude with the Company. System. Therefore, the statement phone, company were ormed to set up; In the meatime, the Colonial Secre- that the system is to a great extent business in Hongkong, it would cost
The TELEPHONE HANDBOOK coste $1 per epy and ie sold on the strict understanding that on the publication of a new no the old ore wille returned to the publishers. This proviso is made in the interests of Subscribers in view of the frequent changes that take place.
ORDER
THE HONGKONG DOLLAR DIRECTORY CO. 5, Wyndham St
Please supply me with COP ......... of the July- December 1922 issue of the Telephone Handbook at $1 per copy. I agree to return this copy to you on application when a new Hand- book is published,
Cash enclosed $
Address
HIRE
482
TEL.
8652
DRAGON MOTOR CAR CO., LTD
(THE SUROPEAN GABAGIĮ Open and Closed FOR 483 in Hongkong and Kowloon,
'KING GEORGE IV." WHISKY
THE TOP NOTCH
OF
SCOTCH.
RIPE IN YEARS
RARE IN QUALITY.
The Distillers Company,
Limited.
Edinburgh.
SOLE-AGENTS :----
GANDE PRICE & CO., LTD.
WINE & SPIRIT MERCHANTS,
I, QUEEN'S KOND
Tel. No. 185.
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