THE CHINA MAIL, APRIL 30, 1940.
TELEPHONE CO. MEETING
CHAIRMAN ON THE NEW TELEPHONE ORDINANCE
"THE OLD DISABILITIES IMPOSED BY THE TELEPHONE ORDINANCE IN ITS ORIGINAL FORM HAVE DISAPPEARED, WITH A CONSE-
IN QUENT STRENGTHENING
THE FINANCIAL STRUCTURE, WHICH LATTER HAS BEEN THE GOAL AIMED AT BY YOUR DIRECTORS FOR MANY YEARS," SAID MR. J. SCOTT HARSTON, CHAIRMAN, AT THE ANNUAL MEETING OF THE HONG KONG TELEPHONÉ CO., LTD., HELD IN THE EXCHANGE BUILDING AT NOON TO-DAY.
Mr. Scott Haraton was supported by Sir E. M. Bryden of Messrs. Lowe, Bingham Shou-son Chow, Sir Róbert Kotowall, and Matthews and to your company's man- Messrs. S. H. Dodwell, D. H. Blake, A. Lager-Mr. J. P. Sherry-together with your Shields, and H. V. Wilkinson, directors; Managing Director, who were associated in. Mr. J. H.. Taggart, managing director; Mr. bringing these difficult and somewhat pro- A successful con- J. P. Sherry, manager: Mr. W. L. McKen- tracted negotiations to
evidenced from clusion, as
the following zie, secretary.
Bummary of the principal results achieved: The Government will, in effect, take the place of the subscriber with the modifica tion that shareholders will participate on an equal basis with Government after a di- vidend at the rate of 12% (without maxima) has been received by them;
The chairman sald:—
in
The company will supply the Government with 500 lines tree of rental charges-and with additional lines (if and when requir ed) subject to a discount on standard rates;
Before analysing the Agures shown the Accounts, I would like to make brief reference to the Telephone Amendment Ordinance which came into force on April 5, 1940. A perusal of the specches made from this chair, since the Inception of the company will show that your business has developed far more rapidly than could have been foreseen when the original ordinance
framed. Your WOB
directors have, of course, been cognisant of this trend through- out the years of their stewardship, and have foreseen that some adjustment of the Tele- phone Ordinance in its relation to the fin--the total depreciation arising therefrom ancial structure of your company would re being deducted from general reserve, and quire to be made if the business was to be the amortisation of the authorised capital allowed to continue to expand along lines being placed on a Sinking Fund basis; consistent with accepted standards of sound commercial practice.
The investments of the company in res- pect of the depreciation and general re serves were revalued as at August 31, 1939
B
The bill, as you are no doubt aware, was introduced as Government measure-its terms being previously agreed to by your directors.
ex-
The company is given the right to de- preciate (where necessary) its investments The Government has been approached from other than those made on behalf of its ca- time to time on one or other special as-pital reserve. pects of this subject, but it became evi- dent that no satisfactory progress could be expected until the problem as a whole was considered. Consequently, your Board au- thorised the Managing Director to open negotiations with the Government, with the object of reviewing the whole field and making recommendations as to how best the matter could be adjusted without im- pairing any of the statutory rights of the company. In this relation and having re- gard to the somewhat complex questions at issue, involving as they did, discussions of a financial and highly technical nature, your board is desirous of paying tribute to Mr.
TOO MANY SCOTS?
(Continued from Page 10)
it deserves, and we, who are quite ready to put a Jew in any position that he is qualified to fill, have deserved and got the best,
. Having, to the best of my ability. plained the sallent details of the foreging matters, I feel I can now proceed to the accounts for the year under review, which reflect, I would point out, the effect of the provisions of the Telephone Ordinance 1940.
Amendment
has
SATISFACTORY RESULTS In general, the result presented is, by comparison, highly satisfactory, and made possible the recommendation of your, Board that the final dividend be increased from 8% to 10% thus making 14% for the year 1530.
Turning to the debit side of profit and loss account, royalties to the Government are shown in the sum of $272,551.97 88 against $56,995 for the previous year. This enhanced contribution to the public revenue is a very material one, but is one which is especially necessary at the present june- ture.
as
Depreciation allowance is $256,703:00 against $521,524.38 for the previous financial period, but it will be apparent from my earlier remarks that, in future, the neces sity for providing
a for depreciation on scale in excess of normal technical re- quirements should no longer exist. I would in add, however, that adequate provision this respect has been made.
We are, of course, wise in not dis- criminating in favour of what used to be called Anglo-Saxons. We do not look each other in the eyes to see whether they are of the proper Nor-change" are less by $25,172.02. It will be dic blue. A foreign diplomat, talking to a friend who had just been appoint- ed to a London Embassy, said, "You will like these people. They are not en- vious; they are not jealous." I think this is true.
On the credit side, it will be observed that the balance from working account is higher by $123,501.11, and that receipts un- der the heading "Interest dividends and ex- reallsed, however, that the adjustments made necessary by the Telephone Amend- ment Ordinance render direct comparison rather difficult. The increase, however, of $127,754.86 in the net profit carried down after including such adjustments, amply de monstrates the eminently successful result of the year's working.
An Englishman loves his country as
Turning now to profit and loss appropria- he loves his wife. He knows that she ton account, it will be observed that, sub- is the best woman in the world, a Ject to your approval, a capital réserve in thousand times too good for him; but stalment is proposed In the sum of $92,577. This, it approved, will replace, the former he is quite willing that ohter men annual appropriation of $170,482.00 to gen should have the same opinion, how-eral reserve, and is the yearly instalment ever, mistakenly, of their own wives calculated at a rate sufficient to amortise and their own countries; and if he the present authorised capital over the re- sidual period of the franchise on the basis thinks them the best men for some
of a sinking fund accumulating at an inter particular job, why should he not vote est rate of 3% per annum. for them?
*
瘸
DISABILITIES DISAPPEAR
been
that
I now come to the balance sheet, which displays a position of such financial stabil- Ity as must be gratifying to all. The old At the same time it is a little igno- disabilities imposed by the Telephone Or minious that only four Prime Ministers dinance in its original form have disappear. out of fifteen have been Englishmen.ed, with a consequent strengthening in the Are we after all rather stupid, and financial structure, which latter has
the goal aimed at by your directors for only redeemed from failure by our many years. For example, on reference to unquestionable moral superiority? the assets side, it will be observed That is what we think of ourselves; investments which showed a depreciation we can almost take to ourselves the of $550,408.38 for the year 1838 now show an appreciation of $108,447.48 over the mater words of Holy Writ ""Blessed are the fally lower market values ruling at the 15 meek, for they shall inherit the earth." end of 1938. The result thus achieved But this is not at all how we appear equivalent to the provision of an investment fluctuation reserve the desirability of the to foreign nations. They think that establishment of which has frequently been we are wickedly successful humbugs. | emphasised in previous: references from On the whole, I think we are right; this chair. The remaining items on the balance sheet are of a self-explanatory char- we mean well, and are not very bright, acter, and I feel, therefore, that I may now We owe a great deal to the Lowland deal with the general trend of your Com- Scots, who are really closely akin raci-pany's business. ally to the North-country English,
I once asked a Scot who had been a professor, first at Aberdeen and then In Yorkshire, what he thought of my fellow-Yorkshiremen,
"They are very
like
the Lowland Scots," he said; "perhaps rathe der. But when I was
Aberdi
felt myself in
Highlanders
foreign
At the last annual general meeting, my predecessor in the chair referred to the
continued expansion of the business of the company and to the steps which were be ing taken to augment the capacity of your equipment (more particularly in the matter of automation exchange plant. I am glad to be able agatate, that the action thus fore
into affect and an order. placed in Lond
Protiniaitasplauft, on Notwithstand.
red th
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