MESSAGE RATE SERVICE FOR H.K.'S TELEPHONES?

Issue Under Discussion

A HINT THAT the introduction of a form of message rate service is engaging the at- tention of the management of the Hong Kong Telephone Company was given by Mr. J. Scott Harston, presiding this morning at annual meeting of shareholders.

Payment of a final dividend of $1 share making 14 per cent. for the year approved.

con-

A Mistake

the

per

was

present intention that your Com- pany should take over the bal- ance of the lines which are still maintained by Government, as soon as this can be arranged. However, the further modernisa- tion of the Government system cannot be proceeded with until the necessary new equipment is available.

Higher Profits

Turning ROW to the Accounts, it will be seen that the balance $38.-

from Working Account is previous financial year. The item

120.62 higher than that for the

"Profit on Sale of Investment” relates mainly to the result of of your Shanghai investments. Your

the sale in May 1940 Board considered it wise, having

regard to the then existing con- ditions, and taking into account

re-

THIS IS REAL COURAGE

(By A Special Correspondent)

SHE CALLS THEM Phyllis and John. And when the stumps, all that is left of her legs, begin to hurt Mary Taylor, seventeen, smiles and talks to them.

"Oh dear, Phyllis, I wish you would stop ach- ing," she says. "Now John, do be quiet."

Although Mary faces life without legs, am- putated after a train accident, she laughs—and the world is laughing with her.

She has a soldier sweetheart.

And she has vowed to walk to meet him when he returns home from the East.

!

Mary's sweetheart is Eric, a soldier serving in the East.

When he returns she will want those legs more than anything else in the world, her life 19 Mary is to devote children.

She knows that she will walk She lost her legs

to meet him. while bringing happiness to her brothers and sisters.

future probabilities, to liquidate Before proceeding to analyse therefore, to subscribers. to res your Shanghai holdings, and the Accounts. I will take the optrict the use of their telephones subsequent events have. as I portunity of referring to several as much as possible during those think you will agree, Justified matters of general interest to periods of the day when the bus-the action taken. shareholders, In the first place 1ness load is at its peak, and, in

Referring to the Debit side of have to report

with regret the particular, to take such steps as Profit & Loss Account. Royalties retirement on Februmy 14th, 1941, are possible to restrain their ser-

at $296,453.73 represent the of Mr. J. H. Taggart, O.B.E., vants and non-subscribers from sult of a full year's working un- from the position of managing dir indiscriminate use of the telephone

der the Telephone Amendment rector. As you R perhaps service.

Ordinance, and are $23,901.70 in aware, Mr. Taggart had been

excess of the amount paid to indifferent health for some

So it is fitting that the chil- Government in respect of the dren of Piisley, Derbyshire, are siderable time, and the continued

1939. Corporation year

Profits

giving their Saturday's pennies deterioration thereof made it 1111- It is a mistake for subscribers to

Tax appears in the Accounts for

to buy new legs for Mary. perative for him to leave the imagine that it will cost then.

the first time in the subs'antial

Mary is the daughter of Mr. and East as soon as travelling facili-nothing to allow non-subscribers

Her father 1. ties could be obtained. Your dir-

SUITE of $86,697.40. to use their telephones, as

Depreciation Mrs. Percy Taylor. the

scale as in the a miner. Mary is one of thei ectors hud hoped that

cost of providing service increases is on the same

of ten children, The Taggart would postpone his in proportion

10-

to the number of previous year, and the final re-, family

|sult shows an increase in The youngest is not yet two. Five are signation pending a return to nor. calls rade.

the year mal health, but he himself felt,

carried still at school. Traffic

carried nett profit for observations having regard to medical advice,

periodo the balance sheet of $23,705.78. that he ought to retire forthwith from active participation in the affairs of your Company, and your board, therefore, had no op- tion but to regretfully accept his resignation.

Progressive Results

Mr.

out over an extended show that in the interest of lelephone subscribera, the time has come when a form of mes- sage rate service must be con sidered, and this matter is now engaging the attention of

your Management.

Capital Reserve

For years the Taylors, through unemployment, had a hard strug-

gle.

wore

For she has Soon a woman her.

been told that will call to see

Thanks to a Derbyshire doc. tor will go across to her bed - side and say, "I was like you: once Mary but can walk now. You will do the same."

certain that And

is Mary Phyllis and John will help her.

HER JOB IS TOO EASY!

Because

she felt that she was

When Mary became maid at a Turning to Profit & Loss Ap- Nottingham hospital, she made life be happier for her brothers and sis- propriation Account, it will Iobserved that, subject to

your ters.

Her arms

loaded with approval, a Capital Reserve In- s atment is pronosed in the summ

Christmas gifts for them when In this relation, I would point

she fell from the railway plat- out that Hong Kong is one of the of $92,577.00, thus bringing the It is Btting that I should like very few remaining telephone tata[ amount at credit of this form at Pilsley and was injured.faking money for nothing, a girl

book-keeper has thrown up Mary joked about Phyllis and this opportunity of recording the systems of any magnitude which account to $706,404.43.

Government job. I now come to the deep sense of loss which your continues to operate on a flat rate!

Balance John then I saw her recently.

She worked for the Milk Mar- directors feel at the departure of, basis. Furthermore,

"message | Shret, which I submit, reflects "I got so sick of calling them

keting Board at Thames Ditton Mr. Taggart.

provides the only he soundness

decided to give for £2 18s. a As you, no doubt, tate" service

of the policy un- stumps that I

war week, plus them Christian names." she said. of to the "wrong| derlying the administration ALTE nwar,

Was Mi Taggart practical solution

With overtime, she often bonus. "All the nurses and the doctors, earned more than £5 a week. who conducted negotiations for number" problem.

your business-which lutter con- ! the formation of your Company

Notwithstanding higher operat- tinues to display the financial now ask me how John and Phyllis She wrote to the Kingston Em- in 1925, and it was he who

ing costs, your Company is en-strength and stability which in- are getting along. and my alwer keen subsecration vestors have cmue to regard as to-day is, "Very well indeed, thank primarily responsible for bringing deavouring to such negotiations to a successful | rates at their present low level, synonymous with your undertak-you." conclusion. The progressive

Land hopes to be able to contin ing. Investmerits show an sults submitted to shareholders

to do so. as your Directors feel preciation of $157,021.78

over! that if this can be achieved, it al-, market value as at 31st Decem- each year since the inception of the Company, bear ample test-fords a practical, if indirect, me ber, 1940, and the Cash position mony to his outstanding business thod of helping the genera warlaust be 2 source of gratifien-she added, "and as soon as I left cam, and from 3.45 to 4 p.m.

il

w its

IC-

accumen and devotion to duty, and I feel sure you will desire to

yourselves with

effort.

the

been

upon Mr.

Equipment Lacking

the

some-

followed,

ap-

been

the

War-

**

Loves Babies

"Though I was only a maid, l helped to look after all the tiny

¿ bables.

ployment

|

Committee: "I was there for three weeks and I can honestly

that say that, during time. I did not do more than one day's work."

She stated, that there were

"Half an hour after the girls arrived at the office. tea and coffee were brought round," she added.

The first application for unem-

"I made up my mind to workployment benedi was rejected. hard and perhaps they would have. let me learn to be a nurse.

"Don't you think I have given up the idea of being a nurse be- to have some cause I am going new legs soon."

YUGOSLAVIA LIVENS STOCK MARKET

LOCAL SHARES

BANKS

Hong Kong Bank $1335 b. Bank of East Asia $70 b.

INSURANCES

Canton Ins. $2221 b. Union Ins. $430 b.

H.K. Fire. Ins. $181 b.. $186 s.r

$183 sa.

SHIPPING: Indo-Chinas (Pref.) `$80 b. OOCKS, WHARVES, GODOWNS,

ETC. H.K. and K. Wharves $86 b.,

X.D.

HK Docks (Old) $151⁄2 b., X.D. Providents $5 b.

"I have always loved children." "smoking times" from 10.45 to 11

[tion to all Shareholders. It should school I went to work at a ma-

of course, he borne in mind that ternity hospital in Nottingham. associate

the cash balance would have been j sentiments I have just expressed,

substantially reduced had ship- In accordance with the consis-ments of the new automatic ex- | Mr. coupled with the hope that Taggart will soon be restored to tently progressive policy adopted change equipments come forward

by your normal good health,

Company. plans wer

as originally anticipated, prepared for the establishment of In view of the invaluable na subsidiary automatic exchanges at

Before concluding my remarks, I would like ture of Mr. Taggart's services to Repulse Bay and Stanley to take

to pay tribute to the Company, your directors un- care of the rapid development in loyal cooperation has made

your staff, of all grades, whose animously decided to vote him these districts, but although

it retiring allowance of $50,000, buildings were completed

possible to present you with such which I am

"I think I should like to be conlidem you will time ago, the equipment has not satisfactory results on the finan- readily recognise was only fiting yet been received from England.

cial year under review.

with crippled children, so that in the circumstances,

After the accounts had

I can cheer them up by telling Information regarding shipments is not very positive in these times, passed and the business of

them how I made jokes about Mr. Sherry's New Post but latest advices tend to show Meeting completed, the Chairman

my John and Phyllis." But Mary's new legs will cost that manufacture had reached the announced that Dividend Consequently

fortune seemed rants may be obtained on ap- about £80 -

to the Tag-stage where completion gart's retirement, your board

plication at the Registered Office Taylor family. probable at an early date.. appointed your Manager, Mr. J. P. Trunk service with Canton re- of the Company.

Already many gifts have been At an extraordinary General sent to Sherry, to succeed Mr. Taggart as mains suspended, and there ap-

Mary in hospital. The Managing Director. Mr. Sherry pears to be

which no immediate pros-meeting

the miners have started a fund. has been with your Company and beet of this service being re-estu- Chairman said:-Having regard to its predecessors in business forblished. In the meantime, it hus the expansion of your business, some 22 years, of which 15 have been deemed advisable to take up: it has been deemed necessary to number spent in the capacity of for safe custody, those sections of increase the maximum manager, and is, therefore, fully the trunk cable which are in close of your Directors from 8 to 10. qualified to all the position.

proximity to the border of This requires an alteration to Article No. 95 with a consequen- Speaking from the chair at the Chinese territory.

tial amendment to Article No. last annual meeting, 1 referred to the steps which had been taken

101 limiting the action of Direc-

The Yugoslav developments dis- tors if at any time the number | pelled an early drooping tendency in the placing of a contract

for

also falls below 6 instead of 4; and on the London Stock Exchange extensions to your main automa-

al-the special resolution now before yesterday and caused a general tic exchange plants to provide for future growth; and indicated that though your Board think it might you is framed for the purpose of cheerful sentiment together with a

well be argued that under exist-giving effect to although advice then to hand

the proposed larger volume of business: In- promised deliveries in accordance | ing circumstances the resump amendments. I would add that terest continues to be mainly cen- with the terms of the contract, it lon of the service to, say, Man- the consent of the Governor-in-tred in gilt-edged which advanced was impossible to

both Council to these amendments has strongly, with war Loan closing predict what, would prove beneficial effect war conditions would have from the Government and com- already been obtained. now at a new high level. Home rails

The mercial s'andpoints.

fact formally propose, as a thereon. In fact, serious delays

Special were also a good feature have already occured an i although that direct radio telephone ser-Resolution, that the Articles of industrials recovered from early ac-small declines. Kars met with the manufacturers are doing their vice has recently been establish- Association be amended in utmost to speed up deliveries, ed between "Manila and Austra-cordance with the terms of the Cape and local buying while oils corroborate Notice to Members dated 5th encountered more activity.-Reu- there are obvious reasons why the lia would seem to desired results have not been this view.

March, 1941, a copy of which❘ter. achieved.

During the year under review, has been signed by myself BS

Company, In All that can be done la being

conformity Chairman for purposes of identi- done, but in the meantime, your with the terms of the Telephone fication, and I shall be obliged if Hon. Mr. S. H. Dodwell, the Hon. Company is unable to satisfy Amendment Ordinance 1940, pro-a Shareholder will second this. Mr. A. L. Shields, Mr. D. C. Ed-| the demand for additional ser- vided the Government with an Mr. Chow, Ping-un... seconded, mondston, the Hon, Sir Robert

Automatic Exchange with a Carried unanimously,

Kotewall, C. M. G. Menirs, D. H. 1 The shortage of equipment has capacity for 500 lines, free of The appointment of Messrs. D. Blake, L. Davies, P. H. Suck!-| led to extremely heavy Lover-rental charges. The bulk of the C. Edmondston and P. H. Suckling, (Directors) Mr. J. P. Sherry loading of existing lines, and this lines on the Government telesing, who have been invited to (Managing Director) Messrs. A. constitutes a very grave danger to phone system in Hong Kong were fill the two additional seats on Vaswani, Wong Min Hin Wong the service as a whole as well as duly transferred to the new the Board, was confirmed. making the work of your staff system, and the resultant im- Those present included Mr. much more exacting than is zor-provement in the service became Scott Harston, (Chairman) mally desirable. I would appen), | immediately apparent. It is the Hon. Sir Shou-son Chow,

vico.

Radiophone

service Radio telephone continues to be suspended

your

1.

while

Chi Po. C. Hatt, A. N. Braude, J. D. Tollan, W. G. Griffin, Chow the Ping Un and Chua Seng Choo the (Shareholders.

LANDS. HOTELS & BLDGS.. HK, and S. Hotels $3.15 b. H.K. Lands $31.90 b. Humphreys $6.70 b. H.K. Realties $3 b.

PUBLIC UTILITIES H.K. Tramways $16.30 b., $10 Yaumati Ferries $234 b., $24

ST.

S..

China Lights (Old), $6.20 b.,

$6.20 sa.

China Lights (Now) $1% b. H.K. Electrics (Old) C. Rts.

$394 b., $39 sa.

"

- Macao E'ectrics (Old) $18 b.

Maçao Electrics (New) $17% b. Telephones (Old) $23 b., X.D.

$244 Ba.; CID. Telephones (New) $8.85 b., X.D.

INDUSTRIALS Cements $172 b. $18 s., $17.80

H.K. Ropes $7.40 s...

sa.

STORES, &c. Watsons $9.70 6. XD, -

MISCELLANEOUS Entertainments $7`b.

¿LAST DAY'S SALES 9 HK. Banks @ $13971⁄2 ***K HK Fire Ins. @ $183 ·

150 Trams @ $101⁄2

1688 Lights (Old) @ $8.20・・ 150 Electrics C. Rts. @ $30% 200 Telephones (Old) @ $2414 300 Cements @ $17.80

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