THORNYCROFT
AND CO. LTD.
SHIPBUILDERS AND ENGINEERS
London, Southampton and Basingstoke
THE HONGKONG DAILY PR§88, FRIDAY, 0010BER 13,5, 192.
PARSENGER AND CARGO VESSELS OF ALL TYPES UP TO 6,000 TONE. OCEAN-GOING TUGS, MOTOR BOATS (SEA OR RIVER) UP TO 30 KNOTS. TURBINES AND RECIPROCATING MACHINERY AND PEOPELLERS. MARINE AND STATIONARY OIL ENGINES 8' TO 90 B.H.P. MOTOR VEHICLES 2 TO 6 TONS.
WATER-TUBE BOILERS,
FOR QUOTATION, #APPLY---
Dress Wear.
for
110. KIUKIANG": HOAD.
SHANGHAI,
ཝཱ*
Dinner and Theatre
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Price complete in Caso and 3 hisdes and leather Strop $2.
WHITEAWAY,
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LAIDLAW & CO., LTD.,
HONGKONG.
STORE FOR VALUE”.
HONGKONG LEGISLATIVE
COUNCIL.
THE TELEPHONE QUESTION.
GOVERNMENT'S » PROPOSALS UNANIMOUSLY ADOPTED: ILLUMINATING SPEECHES.
HON. MR. A. "O. LANG.
In March, 1920, Mr. Parker Ness came The Government replied to that
τρ
pany has come to no decision regarding the type of apparatus which it proposes to inatal. In the circumstances, this Government is not, prepared to make a definite proposal regarding the rates to be charged to subscribers. It must be apparent to your Directors that this Government,, with no knowledge of the initial cost or operation cost of the intended telephone system, in not in position to form an opinion as to the capital sum which is required or the rates which will be necessary to pro- vide an adequate profit upon the under- taking. What fe wanted is the best possible installation and, sa. Boon a your Company is able to supply th necessary information on this point, the Government will put forward its pro- posals."
to the Colony for the first time. HeThis Government understands thas brought with him a draft agreement which, you are now in receipt of telegraphic information to the affect that your Com- be informed us, was exactly on the lines of the agreement, recently signed in Singapore. That agreement allowed him an extension of 60 years and no limit as to the rates to be charged. The Com pany confirmed later, in writing, that they had obtained this concession in Singa pore. Mr. Parker Ness was informed. that this proposal could not even form a basis of negotiation, that the Government would have nothing to do with it. Ha then put forward an alternative proposal, that the rate should be $110 and 10 per cent additional because of increase in In all districts not included in the above working expenses and of cost of material ING THE GOVERNMENT (Mr. CLAUD boundaries the same rates apply with the after the end of the war. The Govern- SEVERN. C.3.0.) H.E. the General Offer in Command of exception that (until such time as it is ment drew his attention, again, to the the Troops (Major-General Sir Jos economically practicable to open further balance sheets and the state of the Com FOWLER, K.C.M.G., "C.B., D.S.0.).
exchanges) thera shall be an extra charge pany as shown in them. They said that Hon. Mr. A. G. ML FLETCHER, C.M.G.. of 250 per annum per route mile (or part they regarded it as a very prosperous
C.B.B. (Colonial Secretars). Hon. Mr. J. H. KM, K.C., C.B.Ethereof), from the nearest point on the concern and the monopoly a most valu boundary of the areas mentioned in this able one in a Colony growing so fast; (Attorney-General).
had been made out for any increase ca Schedule or of any exchange hereafter and they did not consider that a case completed.
these lines. The Government then asked Mr. Holyoak, Sir Newton Stabb. Ma.
A meeting of the Council was held in the Council Chamber yesterday. Freseat: HIS EXCELLENCY THE OFFICER ADMINISTER-
:
Hon. Mr. D. W. Truax (Colonial
Treasurer).
Hon. Mr. E. R. HALLIFAX, O.B.E.
(Secretary for Chinese Affairs). Hon. AE. A LEVING (Director of
Education).
Hoa Nr. T. L. PERKINS (Director of
Public Works).
Hon. Mr. E. V. D. PARL Hon. Mr,, A. O. LANG.
Hon. Mr. Crow Saou-SON. Hon Mr. A. H. Lowe Hon. Mr. H. W. BED. Hon. Mr. No Hoy Taz.
Mr. A. DYER BALL (Clerk of Councils).
MINUTES.
The minutes of the last meeting of the Council were approved and signed by the President."
FINANCE
Kowloon includes the area South of the old boundary line..
1
On the completion of the exchanges at Victoria, Peak, Shankiwan, Kowloon Parr and Mr. Hay to advise it on the Taipo hereof the annual rates of subscrip- tion and other charges for subscribers within the areas of such exchanges shall be at the same rate as those in the abovearious points, including a reference to schedule mentioned.
question is general; and after consulting then it was decided to put before the Chambers of Commerce a reference on
We have already stated in our ketter of the 9th inst. that the Company is not prepared to assure the installation of ang particular system of telephone anteed a minimum subscription rate of 8130 per annum, when they will consult plant until the Government has guars
expert opinion and adopt the system advised, ... s. B
The Company replied.
The exact positive of affairs is as follows The Government is not pre- pared to state the rate which will pro
vide an adequats profit until the Com pany has decided upon the plant to be installed. The Company declines to. guarantee any particular type of plant: until & minimum rate of $150 is assured. This is the lowest sum which will give them an adequate return even with the plant in its present form, and when this. sum is agreed upon the Company will take expert opinion and instal the plant- advised. In this case the rate of sub- scription may be higher. As we have already pointed out, the rate of $130- compares favourably with telephone. rates in other parts of the world." We replied:
"This Government is unable to in- crease the present subscription rate until your Company is in a position to inform it of the type and approximate cost of the installation which its con- sulting engineer advises it to adopt." A deadlock was again reached, In
Li
the effect that a local company should The COLONIAL SECRETARY said: Sirtake over the undertaking. I may men It may, I hope, assist honorable members tion that in 1918, when the Conipany was in getting into perspective the various representing to us the difficulties of ex aspects of this difficult question if I in change and of carrying on, we were in- form them briefly of the history of the formed that certain local financiers were Telephone Company and of the various in negotiation with them, and the Com negotiations between it and the Govers pany were saying they could not negotiate ment. The Company was registered in at a lower rate than £9 for a one pound Lordon in 1883. In 1991 it had 49 sub- share for purchase. The Government The COLONIAL SECRETARY, by command scribers and, ten years later, this number considered the question, in 1020, of a of H.E. the Officer Administering the had risen to 43. It then decided to local company being formed to take over "Certain requests were Government laid on the table Financial reorganise its business on the metallic the concern. minutes Nox 74 to 60, and also a financial circuit, put its main lines underground, made to the Chamber of Commerce to March this year, Mr. Parker Ness came- minute relating to the redistribution of and open an exchange in Kowloon go into the figures and they appointed back to the Colony and he increased his the votes, under Public Works Extra-Accordingly it approached the Gotern-Messrs. Lowe, Bingham and Matthews in demand to $175 for subscriptions and he put the capital value at £325,000, the ordinary and moved that they be referred ment for some security of tenure (which April, 1920. The report was handed in
it bad not at that time) and the result in March, 1921. I do not propose to deal same figure he had named in London. to the Finance Committee.
was the present agreement, signed on the here with the report, except to say that The Government said it could not con- is proved of the very greatest value to sider the matter at all. It appeared that 1st February, 1905, under which the Goy the Government m considering further Mr. Cook, the Company's expert advisor ernment grants to it what is, in fact, though not in words, a monopoly and points that had been put before it; also, was due here early in May. As both Mr.
that the Company would be bought out had advised the Government that they Report of the Finance Committee (No, the Company undertakes to maintain that the report was based upon the idea Lowe in his report and the Committes
throughout the 25 years of the agreement
by a local company. The rate recom- quired certain expert information in 11), and moved that it be adopted.
The COLONIAL TREASURER seconded, and good and efficient telephone service mended was $110 per telephone. in order to come to a definite decizion, we
with approved and modern appliances at
Messrs. Lowe, Bingham and Matthews asked Mr. Cole, of Shanghai, to meet Mr. the motion was agreed to.
a reasonable rate of subscription which
report. They said they could not give Cook and go into the question. They had. PAFEZE
shall not exceed £10 for the first mile very definite figures in certain directions, various meetings, at one of which Mr. the expert Lang and Mr. Barlow. were invited to be from exchange and £2 10. for every because they had not
knowledge available. The Government present, and they presented their report additional half mile.
In 1907 the dollar went temporarily referred that report to the Chamber of Their capital value differed by some over two shillings and the Company Commerce, who considered that owing £70,000, but they were in agreement as to approached the Government for per to the slump, and the falling exchange, the rates to be charged, 8140 for private
The COLONIAL TREASURER seconded, and the motion was agreed to.
The COLONIAL SECRETARY, by command of H.E the Officer Administering the Government also laid on the table a
The COLONIAL SECRETARY, by command of. E.E.. the Officer Administering the Government laid on the table the follow- ing papers: Abstract showing the dif ferstices between the approved estimates of expenditure for 1922 and the estimates
of expenditure for 1993; the estimates
ment
TARY, HON, MR. LOWE, AND HON. MR. LANG,
Commerce:....
was not opportude to go. on telephones and $15 for business tele
A PERSONAL EXPLANATION.
the Penk
of revenue and expenditure for the year mission to charge $100 instead of £10. the time 1923 and Anancial statement in connec. This was refused. There the matter with the idea of a local company, and phones, throughout Victoria, Kowloon and tion with the Estimates for 1993,
rested until 1917, when the Company the Government again turned to its
sufficient data on which to brac a decision THE TELEPHONE QUESTION. came forward with further representa unofficial advisers and appointed. Hon. The Government felt that it now had SPEECHES BY COLONIAL SECREtions about the losses they were suffering Mr. Perkins, Colonel Davy, Mr. Barlow, and it began to consider the matter afresh through the rise in exchange. The M. Dodwell and Mr. Marsh to consider with Mir. Cook's and Mr. Cole's rates as Government called for the balance sheets the question of the terms that should be a basis for a new agreement. This was stated in-swer to a question in this Council, but, before the Government had got any distance in the matter, Mr.. The COLONIAL SECRETARY moved the which they had not seen hitherto and offered to the Company by way of rates. following revolution standing in his name were impressed by the apparently pros
I may mention, by way of personal Parker Ness pressed for publication of an the Orders of the Day
perous state of the Company, and replied
explanation, in view of the fact that a these new rates. The Government was Whereas the China and Japan Tele-that it regretted it could not grant any statement has been published that I agreed extremely reluctant to allow it. There phone and Electric Company, Limited, has requested the Government of Hong concession, and pointed out that a para- in London to a figure of $150 as a rate, were a number of outstanding points in kong to grant to it a new Agreement in graph in their Directors Report for the that, at the request of Sir Newton Stabb, connection with the agreement which was place of the Agreement which now exists year ended 3187 December, 1916, stated who had been very closely connected with not even in draft there was this differ me in 1920 over this question, I met Mr.ence of £70,000 to be cleared up. It was between the Company and the 'Govern that in accordance with the resolution Parker Ness in London in June and dis- recognised, however, that publication was And Where & Report upon the Com. passed at the extraordinary general cussed the matter very fully. Mr. Parker the quickest way of getting the matter pany & request has been furnished to the meeting held on the 21st June, 1915, the Ness put forward a statement that the before the pubile, and permission, there value was £325,000 and that the subscrip fore, was given to publish, but by direc Government by the joint Chambers of sum of £31,000 odd, being a part of the tion should be $150. I said I had notion of the Government Mr. Parker Ness And. Whereas a Representative of the Reserve Fund of the Company, was, in figures available to check his; I had not was particularly told that the Government Company bas intimated that the Company the following August, distributed to the will not be able to erter spod a new Agree i shareholders by way of bonus. It was ment upon the terms recommended in the
suggested that this money would have said Report:
It is hereby resolved that no sew Agree. been better applied to the Reserve Fund ment shall be entered upon between the or to the Equalization of Dividend Fund, Company and the Government, unless the Company is prepared to accept the rates, to meet this temporary rise in exchange. of subscription recommended in the said The matter then reated till 1019, when the Report and set out in the following Company again came forward and stated Schedule:
that they were practically unable to carry on, as they were suffering very heavily from exchange, which was, at that time, at a very high rate. We then pointed 84 84 84 out, again, that in the report for 1917, An application by Com- 1923-08 06 90 which had then been recently received,
pany
to. Committee
the Directors, in passing a resolution on who must satisfy 1924-108 108 108 themselves the "ac-3-3
the death of Mr. Carter, who was Man- 114 114 114 ager for many years, said. The period counts submitted and 11925 -currico conditions 1 Justify same
1920 120 120 120 of Mr. Carter's management coincided Extension Telephone: ( (Laternal
with the great development of the pros. Wall or •Dess
30.30 Extension
perity of the Company's business." That Telephone ternal
according to distance impressed the Government and we said Krension Bell or Single Switch Private Branch Exchange
we were not satisfied that the Company Switchboards per 1îne
was making losses, and we suggested that the service was not all it might bo. We also proposed, that in order to get rid of this trouble, through the fluctuation of oxabange, the Company should move its headquarters to Hong kong and work on a dollar basis.
Annual Subscription Tay. able Monthly in Advance
Wall or Desk Telephone
capacity Removals Telephone lines and zingte telo
phone. In the same house. From aan boase, to another Extension telephone YAN Private Branch Exchange. Switchboards peri lins capacit
Peak
sten Mr. Lowe's report, which was then had not accepted the rates that the out; and I was convinced that the terms matter had not gone before, the Executive given would not be better than those given Council, and that until the agreement was to the Hongkong Electric Company, which signed the rates would be inoperative. Ee were being negotiated when I left the then published the rates, and this led to Colony. The only way in which I com various questions in the Council, and at mitted myself was to say that, taking Mr. the request of my honourable-friend who Parker Ness' figure of £325,000 as correct represents the Chinese (Hon, Mr. Chow and haring regard to the fall in exchange, Shou-son) the Government put the whole a subscription of $150 Chambers of Commerce. They asked that here seemed to be a prima facie case for case before a joint Committee of the Towards the end of 1921 this Committee small Committee two members from reported and they recommended rate each Chamber should be appointed to go of $120. There were various points in into the matter and the Government their report which were being considered agreed. and the rate was not formally given to I am afraid I am taking some time to the Company, but the main headings of explain those preliminary matters. the report were read over to the local wish to emphasise the point that the manager. The Company refused to accept Government has not gone about this in this rate of $120 I may quote the follow hole and corner manner without the 10g correspondence of January of this advice of business men, and also that the year. We had referred to them the ques Governemat has not bound itself in any ion of an automatic exchange, and the way to the Company in the matter of this Company wrote Agreement. I may say that at the meet
We hasten to point out that this ing of the joint Chambers of Commerce question is a highly technical one and the matter was so far not settled that it can only be decided by expert opinion there was not even a draft agreement. which the Company wilecek on a satisThe Government, hurriedly got together factory conclusion of our application the various points which had been co for a revised license The Company's sidered in various departments the Pub attitude towards the installation of an ic Works, the Attorney General's the automatic plant is as follows We Crown Solicitor's and so on-and put will not be bound to instel an automatis these inte print. The next step was the system, but, provided the rate of subreport of the Committee. The rates given. Boription which, we consider to be a fair in that report were endorsed by the joint. one is granted, we are prepared to reler Chambers, and the Government is content the subject to our consulting engineer, to socept them The Chambers of course, whose decision in that matter will be represent the subscribers who have to pay
for the telephone. acepted by the Company."