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[December 15, 1902.
Our
or
THE HONGKONG WEEKLY PRESS AND
of the members of the board of directors, and
There are no special indications of such now asked to buy in a single deal an we cannot for a moment conceive that they can a growth. The volums of trade at present extension of over 32 acres of rocks, bills, land, be all unanimously in favour of it, so wild, so shows no signs of increase. Competition and water. Should we not first find out whe- Utopian, so positively ridiculous are som1 of the for the existing trade my increase, ba thor we are in a position strong enough to reasons set forth for the adoption of the scheme is safer to as. ume that there will be little incur the enormous responsibility which it will in the circular issued to shareholders dat :d 22ud or no expansion of trade fo at all events some entail? We have lately had several changes in September last. We shareholders wish to be years to come. The ships that do the carrying the staff, and the former manager and sub- loyal to our directors, and we have a right tɔ business have been more numero is lately, but, manager have been removed by death expect them as the custodians of our common since the amonat of business is much the sime, present manager has, we know, had experienc2, property to be cqually loyal to us, but there are and cach live is cutting into other competing but he has yet to gain local experience, which limits to this sense of loyalty, which would reach lines, the limit of this increase in ships will is extremely nece siry, if not vital. 1 an led suapping point if a carb is not put to the suon be reached, if it has not already been to make these remarks because we shareholders apparent proclivities of some of the directors reache!. And whaterer this increase may be, hear that the Company has been losing a good whose election many of us are now reluctantly we have been much more than able to cope deal of business lately; that steamers which compelled to view with many misgivings. with it. In fac', notwithstanding this in should have docked here have gone to Shanghai (Applause.) The scheme as laid before us crease, we have had and are having some and other places and that that port and Japan might commend itself to suppliers of building very depressing sessous of slac'; business.
recently secured th building of 23 ganboats materials, or machinery, electrical or other The directors tell us that we have only for the American Government, who had pre- wise, but the more we study it the more it one dock capable of taking in ships of large vionsly been confining the orders practically passes our understanding how it could be beam, and supply us with the number of battle to us. No information has b.en vouchsafed to put before a commercial community like ours. ships in the British Navy 26-as if they are us on these points. How it happens that we In the scheme before us we are informed that all coming to be dorked with us. What is the are losing ground; how it is that we hare the Company, од one occasion, asked the Admiralty duck being built for? And what are alienated sach a good customer as the American Admiralty to contribute £150,000 towards the B. and 'S. docks-the largest in the world - Government; and how it is that Dock Ce's no construction of the proposed new dock wheu to be used for? As regards ships of Mercantile far away as Shanghai and Japan can manage to the cost was estimated at £175,000, and ou Marine our No. 1 Dock cau acccmin:date the bui d those boa's and we cannot? These ade all another occasion £120,000, when the cost was largest afloat bull for the Fastern trade legitimate matters for enquiry, and I maintain estimate at £150,000, taking the exchango When a stray b. at of a much larger size may we ought to ponder well over them before then roughly at $10 to the E, and the se happen to como into port and wants some lanuching into an expenditars of millions in proposals were made at a time when there was scraping and painting doue to her bottom, ia order to enable us to compete for new work, no idea of the Admiralty building a dock of that case let Butterfield and Swire get the that is at best occasional and uncertain. their own, or of any opposition dock being job. We have no need to compete for it If (Applause.) We are recommended by the built, and when our Company had practically a shareholders would take the trouble of going directors to d cide in the acqürement of the monopoly of the whole business. Now the in'o details and figures to find how our profis laud on its own merits, and are warned that if situation is completely changed. The Admir wore made for the last ten years and more, we miss the opportunity it is probable that the alty are building their own docks, aud a they will see that as a general rule the larger Government will be able to dispose of this land powerful competition, Butterfield nd Sw.re's, the boats are the less we make on them as fo. some icdust ial works, etc. We have, is coming into existence. Their dock wil not they only remain in dock for a couple of however, the stringent conditions of the only be the largest in the world, but they will days' painting, while our income is chiefly Government before us, and I have no hesita- also have slips to accommodate ressels of 5 to 6 derived from the smaller boats and coasting tiou i saying that these would deter thousand tons. In the face of these facts, it is steamers. Besides, the big liners generally any capitalist from buying the land difficult to understand how the directors can dock at their respective bases in America, even taking it as a gif. (Applause.) Besides consent to drop their request for the grant of Hamburg, Liverpool, or wherever else it may
the land is not suitable for any other purpose £150,000 or £120,000 which they asked eveu in Take, for instance, the big Hamburg- than that of a dock, and such a venture means the heyday of the Company when it was enjoy Amera liners. They have been running for simply ruin under the circumstances. The ing a monopoly. We ara astonished that the the past three years, and not oue of them has history of our Dock Co. teaches us a lesson directors should for a moment entertain the once entered our docks. In a very sensible which it will be useful to bear in mind to-day, absurd conditions which the Government annex leading article that appeared in the Daily Press In 1873 and 1974 we had very keen competition to the sale of the land, or think of laying before of the 18th August last the writer vory tersely to face from Captein Sand's two sips and the the sharehold rs the scheme which we arɔ now put the point I wish to impress on you to day, Cosmopolitan ok. The fight was a bitter If when there was no opposition and I hope I may be permitted to use ose, but as th opposition was losing heavily, discussing. staring the Co. in the face, as is now the case, language. He said :— It is true that it is the Board of Directors was persuaded to con. the directors did not feel justified in building a desirable to be thoroughly up to date, but if tinue the struggle with the result that theso new dock. costing according to their own this can only be accomplished at such an enor- concerns were ultimately, in 1879-8), acquired estimate £175,000 to £150,000 unless the mous addition to the capital of the Company as
Now on favourable terms by our Company. Admiralty contributed £150,000 or £120,000 to render the provision of such facilities a luxury if we are so rash es to adopt this scheme and how can they now, without any contribution that can never be made to pay as an investment, double or treble our capital to compete with whatever, think of proposing to build a duck to the wisdom of incurring such responsibility may Butterfield and Swire, our fate will inevitably cost double their former estimate? We are told well be doubted." I think he let the di:ectors be a similar one. Remember Butterfield and that the site of our new dock will be more con- down very gently. I should say it is noth. Swire's money does not cost them 6 per cent.
be the venientand that other things being equal that facting bat pure folly to incur such responsibility. Our Company will
losing 'party and To quote one sentence more from the same
will ultimately may frequently turn the scale 'n our favour in our
bj absorbed competition with the opposition dock.(Applause.) source. It is useless to expect & continuance extinguished. Our present position with our I don't think a m re feeble argument has ever of the monopoly hithert› enjoyed; that will 8 ball capital is absolutely unassailable and we been put before the shareholders. The distance soon be a thing of the pest, aud rates will no should be able to defy all competition without between the site of the proposed new dock aud doubt have to come down to some extent." I over showing a loss. (Applause) We now Butterfield and Swire's is about two miles across am sure, gentlemen, you realise that we must not come to the very important subject of cost. the water. Any steamer that can be towed into reckon on the profits we were earning formerly is approximately estimated in the scheme at two our dock, can be towed into Butterfield & when we had the monopoly and every ship was a half millions after a period of four years, Swire's, perhaps at an extra cost of $20. Will practically at our mercy. We have now to be This is expressly given as approximate only. this paltry saving prove a sufficient inducement prepared to cut down our charges. This we cau If you ask those with any experience of building- for the shipowner to give our dock the pre- do only when our position is strong as at pre- whether dock, houses, retaining walls, or any- ference? Of course, the board assumes that sent, unhampered with loans or with a heary thing el-e-one and all will tell you that the other things are equal-i e., both docks offer to capital. We were told some time
chances are ninety-nine in a hundred that the do the job for exactly the same amount-say there has sprung up a large demand for new cost, as well as the period, will be at least quite $50,000. If the shipowner can thus save $20 vessels for coasting aud inland river traffic as large again. Let us take a moderate view of by sending his boat to our dock, the directors which it is expected will increase enormously the matter and say the new dock will cost 4 think he will then certainly give us the when the restriction imposed on it by the millious and will be fioishel in 5 years. The ference. At least he ought to, if he doesnt. Chines, authorities are withdrawn. Our Com- interest on an average outlay of $90,000 per (Applause.) Equally feeble is the statement pany is well equipped for any demand that annum, whether bocrrowed from the bank or with regard to the approaches to the may be made upon it in this direction so that from debenture holders, will be as follows:- Cosmopolitan Do k, of which by the way, wa this branch of business may become a sp cial On 8 lacs at 6 per cout. for 5 years $240,000 192,000 source of revenue in the future working of the have only now for the first time been informed.
We can see that it
144,000 How many ships risk admi sion to this dock Hunghom establishment. drawing 20 feet? And what of its having to be reached round tonecutters' Island ? ships we are accustomed to would be full or nearly full of a deadweight cargo when drawing 20 feet, and what prudent owner would dream of docking his ship, with so much weight on board? In exceptional cases have we not other docks to accommodate such custome:s? Is it necessary to go to the expense of millions of dollars to meet such requirements and to save the trifling cost of towage round Stonecutters' (which is much nearer than to Aberdeen Dock). We are further asked to look forward chiefly to the growth of the trade with China.
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$725,000
is certain to ba very lucrative business and has a great futuro before it: why then look to docking and chiefly painting the bottom of some stray leviathan boats from which we can never expect to be repaid for an outlay of millions? If an Thus when completed the dock will, on an
and were to start nuder average estimate independent company
without reckoning existing circumstances and spead its millious compound interest, cost four and three-quarter on an enterprise of this kind, it is very clear it millions amount very nearly double would not live long but soon go into liquidation. the capital of all our six docks on which Why should our Dook Co, the, embark on Wa bave
been working for the last 35: увага. such a venture? The area of the three estab.
This is a mut gigantic enterprise for a little Colony like ours, with its capital-raising lishments, ie, G docks and 2 slips, on which we have been working steadily and cautiously power so restricted, and the wildest specula- for the last 35 years, is 6) acres.
Live venture ever contemplated here seriously
We are
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