THE CHINA MAIL,
CONSUMERS WILL ECHO HOPE: CHAIRMAN'S SPEECH AT H-K. ELECTRIC MEETING
“IT IS ONLY RIGHT TO warn Customers that the rising costs of freight, and, to a smaller extent of coal, to- gether with the possibilities of increased taxation, may force us to increase prices to consumers, al- though I trust this will not be necessary," said the chairman, Mr. H. V. Wilkinson, at the annual meet- ing this morning of the Hong Kong Electric Com- pany, Ltd.
THE MEETING APPROVED THE INCREASE OF THE COMPANY'S AU- THORISED CAPITAL FROM $6,000,000 TO $18,000,000, AND THE INCREASE. OF THE ISSUED CAPITAL TO $9,000,000. BY THE CREATION OF BONUS SHARES, BUT NO INDICATION WAS GIVEN OF ANY INTENTION IN THE IMMEDIATELY FUTURE TO MAKE AN ISSUE OF CAPITAL.
Mr. H. V. Wilkinson, D. S. O., (Chairman of Directors) presided, and was supported by Mr. T. E. Pearce, Mr. Stanley H. Dodwell, Mr. T. N. Chau, C.B.E., (Directors) and Mr. V. Sorby M. I. EE. (Manager). Share- holders were represented by Messrs. Ko Koon Fan, Gibson Fahnestock, S. T. Williamson, F. L. Ball, Leung Fattin, A. McKellar, Wong Chi Po, Wong King On, L. E. Guterres,
G. G. N. Tinson, Wong Ping Sun, B. Wong Tape, Lo Kal Wing, Capt. F. L. Brown, O. B. E., Messrs. Kwok Hin Wang and G. G. Wood.
The Chairman said:-
The net profit after providing for Depreciation is $2,676,599.54 and with $267,880.85 brought forward from last account we have the sum of $2,944,- 480.39 for appropriation.
On 7th September 1939 we paid an interim dividend of $1.00 per share which absorbed $600,000.00 and with the balance we propose:-To pay a final dividend of $1.50 per share ab- sorbing $900,000; To pay a cash bonus of 75 cents per share absorbing $450,- 000; To place to Reserve $400,000; To carry forward to next account $594,- 480.39 which I hope will meet with your approval.
The proposed dividend and bonus are the same as last year and we have added $400,000.00 to the Reserve.
The carry forward is a good deal larger than in previous years, but in view of the possibility of the Govern- ment imposing a Corporation Profits Tax we think it advisable to increase
the amount.
INCREASED PROFIT
•
units, an increase of nearly 8 million units or 12% over 1938, and you will notice that the profit on working is $625,521.45 more than last year.
This satisfactory result has been obtained without any Increases In our charges for current, a pro- cedent which we hope to be able to continue, but I think it is only right to warn consumers that the rising costs of freight, and, to a smaller extent coal, together with the possibilities of Increased taxa- increase tion, may force us to
prices to consumers, although I trust this will not be necessary.
Bad debts at $352.88 are the lowest on record.
turbo-alternator
of a high tension cable to link up
"Pokfulam and Aberdeen Sub-stations and thus complete the "round the Island" supply circuit and the equipment of a sub-station at Tai Tam Tuk.
Meters connected increased by 2,646 to 49,158; as I remarked last year I think that part of this increase is due to the abnormal times through which the Colony is passing and I am afraid we must be prepared for a falling off in the number of meters .connected when Peace returns to China--at the moment meters are still increasing but not at the rate during last year.
new
The outbreak of the War in Europe has brought with it anxieties but I am happy to be able to tell you that, so far, it has not caused your Company any very serious losses; just previous to its outbreak we had decided to pro- ceed with the laying of four feeder cables; most of this cable has now been delivered to us at com-. paratively small increases in cost; we find that our happy relations with suppliers in Great Britain are now standing us in good stead as manu- facturers are doing all they can to meet our requirements tiously as is possible under the rather as expedi- difficult conditions now ruling.
CHECK ON ACCOUNTS
Full depreciation has been allowed for at $798,979 an increase of $74,602,
It may interest Shareholders to The expenditure on Capital account know that a check up on our lighting this year has been $560,499.
During the year under review the accounts for the month of September 100,000 lbs. per hour Stirling boiler,
last revealed that 54% of these ac- which I mentioned last year, was put month; 38% consumed under 160 units
counts into commission; the repairs to No. 7 per month and only 8% took more were for $3.50 or less per
May and the machine has been back to power accounts
were completed in
than 160 units per month. Turning in service since that month; all the
33% of the ac- counts were expenses in connection with
for less than 21 units this breakdown have been charged to re-monthly bills were
which means that these consumers' venue. A new well to accommodate No. 5 circulating water pump, which between 21 units and 200 units and less than $1.50; 48% of our power consumers took per minute, has been constructed, a will have a capacity of 25,000 gallons new intake and wells for two Brackett circulating water screens were com- pleted; also a 20,000 gallons per hour boiler feed pump was installed and
put into service.
ROUND THE ISLAND CIRCUIT
The output from the Generating The principal items in the Dis- Station during 1939 was 72,337,702 tribution Department were the laying
Easter
At the
REPULSE BAY HOTEL
TIFFIN CONCERTS
(1—2:30 p.m.)
SUNDAY 24th MARCH
&
MONDAY 25th MARCH
WITH
GEO. PIO-ULSKI'S QUINTETTE
Table d'Hote & a la Carte
Reservations 'phone 27775
THE HONGKONG & SHANGHAI HOTELS, LTD.
during the month to put it another only 19% consumed over 200 units way about half the 49,000 odd ac- counts sent out monthly, are, for un- der $5.00 each- will agree with me when I claim that I think Shareholders
we are giving a very efficient and cheap service.
Recently we have been making en- quiries about the charges made by our contemporaries in India and the Far East, and we are gratified to find that our charges compare favourably with those made by other supply au- thorities whose outputs are similar to ours; it must not be forgotten that two thirds of our coal has to be car- ried nearly 500 miles by steamer and the remaining third over 3,000 miles.
The cost, per ton, of the coal used during the year under review showed a slight increase over the correspond- ing Agures for the previous year, but as most of you will be painfully aware, the prices of coal and steamer tonnage are on the up grade and consequently we have found it necessary when budgetting for the present year to make provision for a very consider able increase in our expenditure on coal, and without doubt during the year 1841-much greater increases are bound to be added to our coal costs."
SHOP CLOSING
In this connection I desire to men- tion a misapprehension which appears to have arisen in connection with the Shops (Hours of Closing) Ordinance 1940.
I am informed that in some of the Chinese papers Shopkeepers are warn- ed not to keep their shops open after 8 p.m. and to shut off as many lights as possible after that hour! As a matter of fact shopkeepers and others; are still at liberty to use as much light as they like in any way they may desire; the Ordinance I have just referred to is only intended to prevent shopkeepers serving customs- ers after 8. p.m.
Notwithstanding the good and cheap service which we have 'always-en- deavoured to give to our Consumers the Company has expanded large sums of money on development of the Un- dertaking and your. Directors feel that the capital of the Company should be increased to a gure a little nearer to the actual value of this Company's properties.
Owing to the considerable expan-
E
21, 1940
RUBBER FOR REICH VIA VLADIVOSTOK?
London, To-day.
Mr. Ronald Cross, Minister för Economic Warfare, gave an as- surance in the House of Com mons yesterday in connexion with the fact that there had been a considerable increase in ox- ports of rubber from the Dutch East Indies to Vladivostok since the war began.
He was replying to a question by Mr. H. J. Parker · (Labour, Romford).
Mr. Cross sald the likelihood of part of the consignments being re-exported to Germany had not been overlooked—Reuter,
sion in the Company's operations I feel that some increase in the fees paid to Directors and Auditors is due and suggestions to implement this will be submitted to you at this meeting for approval.
INCREASE IN CAPITAL
pany's output necessitates correspond- The steady increase in your Com- ing increases in plant, and this costs money; looking to the future we fore- see heavy expenditure on plant and the time has come buildings and your Directors feel that when the Au- thorised Capital of the Company must be increased consequently It has been decided to ask your authority to take the necessary steps to increase the Authorised Capital to $18,000,000 and at the same time to increase the Issued Capital to $3,000,000 now standing to the credit the capitalisation. of $9,000,000 by
of Reserve.
SECONDER'S SPEECH
Mr. S. T. Williamson, seconding the proposal, said:
been my pleasure to second the adop
This is not the first time it has
once again I have to congratulate the tion of the Report and Accounts, and
Chairman, The Board and the Agents on the very excellent report ́ which sure that Shareholders will also wish has been placed before us, and I feel
me to thank the 'Staff on their behalf for all the good work they have done during the year.
its'
I have listened with particular in- terest to the remarks which deal with the cheap and efficient service which the Company renders to its' consum- ers, and I venture to express the opinion that it has only been possible to build up this undertaking to sults in 'such a high standard of ser- present state of efficiency, which re-
policy of the Board and Management. vice, by the sound and far sighted and I feel we are much indebted to them for their untiring efforts.
I am sure Shareholders will ap- prove of the proposal to increase the authorised Capital and welcome the proposed bonus issue, and also that they will approve of the increase in Directors' and Auditors Fees.
I now formally second the adoption of the Report and Accounts for 1939 as presented at this Meeting.
Carried unanimously.
DIRECTORS' FEES
Mr. G. G. Wood said: There is a his hire and I feel sure Shareholders saying that the labourer is worthy of will agree with our Chairman that the time has come when the remunera- tion paid to our Directors should be increased to a sum which is a little more commensurate with their sponsibilities.
re-
I am informed that the present re- muneration of $10,000 per year was fixed at the time the Company was formed in the year 1880, 50 years ago, when our issued capital was $300,000. That remuneration does not appear to have been thought ex- cessive even in those days but I am consequently I have much pleasure quite sure it is not adequate now
be increased from $10,000 per annum in proposing that the Directors' fees to $18,000 per annum. Carried unanimously.
AUDITORE FEES
Mr. G. G. Wood said: “As our work- ing profit has increased from $2,498,-
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