THE CHINA MAIL, APRIL 15, 1937.
NEW
HOTEL FOR
Mooted At Meeting Of Hotel Company
THE BUILDING OF A NEW HOTEL ON THE PEAK TO RE- PLACE THE ABANDONED PEAK HOTEL WAS MOOTED AT TO-DAY'S MEETING OF SHAREHOLDERS OF THE HONG KONG AND SHANGHAI HOTELS, LIMITED, AT. WHICH MR. LAWRENCE KADOORIE PRESIDED.
MR. FRANK AUSTIN URGED CONSIDERATION OF THE SCHEME AND DR. F. KEW EXPRESSED THE HOPE THAT THE SHAREHOLDERS WOULD BE CONSULTED BEFORE ANY- THING WAS EMBARKED UPON.
The Chairman said:-My task in sub-in acquiring and fixing silencing ap- mitting for your consideration the paratus for passenger lifts, meeting the Accounts for the financial year 1936 cost of repairs due to such typhoon is, I feel, undertaken in happier cir- damage sustained in August last as eumstances than those which existed was not covered by Insurance, and re- for my colleagues who presided at An- constructing and embellishing certain nual General Meetings of the Company suites of rooms at the Peninsula Hotel held during the past few years, inas- and the Repulse Bay Hotel. The last expenditure has had the much as the results shewn appear to mentioned
'accommodation denote that the persistent decline in effect of placing the revenue, compelled by the adverse trad- dealt with in the category of "de luxe." ing conditions then encountered to be A demand for this type of accommoda- successively reported. has at last been tion had been detected, and its popular-
ity checked.
since completion evidenced
by tenancies, at very lucrative rates, tho- roughly justifies our expenditure on it. BANK OVERDRAFT The
year.
Page
PEAK?
A striking picture of the. Night Star after she had settled down last night following her collision with the Meridian · Star. It was the first major accident to Star Ferry craft in the history of the Company. For- tunately, the boat did not make water rapidly and she was able to return to the wharf and disembark her 350 passengers safely before she sank.
("China Mail" photo).
with more modern and up-to-date ones.
shares
which
INCREASED PATRONAGE During the period under survey your
the matter should be referred - to Hong Kong Establishments (with the exception of the Peak Hotel) have en-
Bank Overdraft figure at the
At the Annual Meeting of our Com- | shareholders."
Chairman: "Mr. Kew, the directors joyed patronage in all departments of 31st December, 1936, you will, I think, pany held on May 27th last year, the a substantially increased volume over agree is negligible, and at $10,398.25 Reorganisation Scheme was fully dis- have powers under the Articles to deal that experienced during the previous denotes a reduction in our indebtedness cussed. and finally passed by Share with this and other matters and if
Acceleration of increase has under that heading during the year of holders; as a result of
our you are suggesting that these powers been marked in respect of the revenue $279,000.
were reduced from $10.to be relinquished, I have to state that derived from the Restaurant and Cafe The net profit for the year amounted $7.50 each. At a time when opinion it cannot be done.”
added to the regarding the advisability of business conducted at the Hong Kong to $220,064.39, which
Mr. J. P. Braga said that there Hotel. Transient patronage also imbalance brought forward from last year scheme was very divided, it fell to my were two points of view and much He con- proved considerably even during the of $339,261.11 (after the small reor- lot to advocate the proposed reduction; to be said for either side. Summer months and thereby the ratio ganisation deduction) provides an and, among other things, I then stat- cluded with an expression of confidence of occupancy applying to our Hotels in amount of $559,325.50 available for ap-ed that:
in the Board and stated that although the Colony attained consistently apropriation.
the matter could be safely left to their discretion, he was sure that they would welcome any suggestions from share- holders that might guide them.
frequency.
re-
the
"the Reconstruction proposed, given only fair trading conditions in the near future, should bring the time nearer when the Company, we hope, may be placed again upon a Divi- dend-paying basis."
tion.
higher figure than that shewn for some Your Board recommends that $298,- years no accommodation vacant" 466.75 be utilised to pay a dividend of turns having been received from re-twenty-five cents per Share on 1,193,- sident Managements with gratifying 867 Shares, and that the balance then
Mr.Kadoorie then assured those remaining $260,858.75-be carried for- Your Directors
present that the Board would give the Towards the middle of the year your ward to New Account.
After going carefully into the pro- | matter every attention and considera- Board decided that the Peak Hotel, for appreciate that the carrying into effect
their recommendation involves posed scheme, those were my consider- many years a popular Residential of Establishment, had passed its period of utilising from the previous carry for ed opinions, but I confess I did not utility. The cost of upkeep due to the ward some $78,000, being the amount expect that a dividend, however small, age of the structure had been mount-by which the actual profit for the year would be forthcoming in less than a ing month by month until operation falls short of the amount of the pro- year's time.
SHAREHOLDER'S COMMENT ceased to be an economic proposition. posed dividend. They are of opinion,
Dr. Fred Kew: "With reference to Accordingly, it was decided to close however, in view of the ascertained im- the Hotel on the 31st August last. The proved earnings for the greater part of Mr. Austin's suggestion that a entire contents have since been remov- the first quarter of this year coupled hotel be built on the Peak, I feel that ed and disposed of and the future of with a rapid accumulation of the cash before the directors decide on anything, the property is still under considera-resources of the Company now being
tion.
experienced, that such a step could pro- perly be taken having regard to the interests alike of the Company and of its Shareholders.
be
CUT RATES IN SHANGHAI Our Shanghai Establishments main- tained a satisfactory turnover during
I now formally propose that the Re- the year, but competitive conditions port and Accounts, as presented again necessitated operating at cut adopted, and that the balance of $559,- rates, and in consequence the contribu- 325.50 be appropriated as follows:- tion from the Hotels in the Northern To pay a dividend of 25 Port to the General Working Account was again a meagre one.
cents per Share on 1,193,867 Shares
$298,466.75
260,858.75
$559,325.50
Account
The Hotel operated by our subsidiary To carry forward, to New Company in Peiping enjoyed excellent business during its last accounting period ended on the 30th June, 1936, and I am pleased to state that current returns shew still further improvement. The improved conditions upon which
SECONDER'S SPEECH Mr. Frank Austin, seconding, said:- from
I have commented permit me to direct The turning point üpwards your attention to an enlargement in the long period of depression that we amount of the item "Balance of Work- have been through, followed after the ing Account", which is included in the Profit and Loss Account before you at fixing of Exchange at about its pre- a figure of $688,287.48. This result is sent level by the Chinese Government, better by $158,000 than the Working and similar action on the part of the Account produced in respect
Lower Ex- of the Hong Kong Government.
change is an attraction for Tourists, and previous year. The enhancement may
freely be contemplated with a certain amount induces them to spend more of satisfaction, but I would remind you when visiting Hong Kong and China. that the result depicted does not yet From these conditions our Company conform to the standard which should directly benefits.` be achieved in periods of normal trad- ing.
PEAK HOTEL
I trust the Directors will find it
· DEPRECIATION
possible at an early date to build a Ample provision for Depreciation Modern Establishment on the site of has been made at rates endorsed by the old Peak Hotel as I am convinced commercial practice on the residual that if proper economy is exercised it values of the various Assets after the the building of a rew Hotel on the application thereto of the reorganisa- Peak, it will prove to be a satisfac- tion measures, and amounts for the tory investment. There is a strong year to $134,742.03.
In the document in your hands the residents in Hong Kong, who are not proportion of demand by a certain Balance Sheet details appear much en-necessarily here for any great length larged this year. To preserve -con- tinuity of record the provisions of theries and responsibilities of running of time, to be relieved of the wor- reorganisation scheme, which was pass their own establishment, and who would ed by Shareholders on the 27th May, welcome a first-class Hotel on the 1936, and approved by the Court on the 30th July last, have been particularised Peak, provided the rates asked are
reasonable. against the items effected.
Referring to the listed
Liabilities,
{
The situation in Shanghai is still you will observe that the special Re difficult, and it is
It is probable that the pairs and Renewals Account suffered contribution of our, Shanghai Hotels depletion during the year to the extent will not be a substantial one until the of $15,738.16. This sum was absorbed existing old buildings are replaced
new
The adoption of the report and ac- count was then put to the meeting and passed unanimously.
Confirmation of Mr. Lawrence Kadoorie as a director and the re- election of Mr. J. Scott Harston were passed unanimously and Messrs. Percy Smith, Seth and Fleming.. were elected auditors.
HONOURED
THROUGHOUT THE WORLD
American Express
Travelers Cheques
The safe and convenient means
of carrying travel funds.
THE AMERICAN EXPRESS CO., INC. Incorporated with Limited Liability in U.S.A.
4, Des Vœux Road, Central.
· ré-