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i
COMPANY MEETING.
HONGKONG AND SHANGHAI HOTELS, LTD.
NEW HOTEL PROJECTS IN SHANGHAI,
KOWLOON AND SHAMEEN,
sent
THE HONGKONG DAILY PRESS, MONDAY, MARUH 24mm, 1934
... OVERDRAFT INSTEAD OF DESENTURES. You will no doubt recollect it was the intention of your Directors to float, carly this year, a debenture issue of 50 lakhs at seven per cent per annum cover ed by the hypothecation of the central properties, owned by this Company both in Hongkong and the Northern port. Such action would have enabled the Board to pay of the debenture issue and mortgages of The Shanghai Hotels, Ltd... and the Company in Hongkong and thus
STRUCTURAL -15PROVEMENTS.
During its fifty-eight years of Hotel ex- Various alterations and additions were perience the Far East, the Company huts successfully forged ahead notwith- effected during the year, the most outstanding competitors who have come and standing of which was the construction of gone from time to time, and I trust there the new ball room in the Astor House for that I shall not be suspected of being Hotel at Shanghai, opened on the sad over confident if I say that our conser vative policy of setting aside liberally in December last, and it will interest you the master of depreciation and transfers to be assured that this addition has to reserves and at the same time main- already, by the patronage extended to taining and improving our properties has it, been proved fully justified. In Hong been mainly responsible for placing us in such a sound position to-day that kung alterations and improvements were the resources of the Company are such Repulse Bay Hotel of a nature that will must not be thought, however, that wa effected in the Hongkong Hotel and the that competition need not be feared. It to consolidate the indebtedness in one undoubtedly augment the earning powers are not alive to the imperative necessity
The ordinary yearly meeting of share holders of the above Company was held at the Hongkong Hotel on Saturday last Mr. J. H. Taggart (Maging Director), presided and was supported by the Hon. Sir C. P. Chater, C.M.G.. Hon. Mr. P.ability in the amount of $5,000,000. In of these establishments, I may mention, of keeping abreast of the times, but II. Holyoak, Hon. Mr. A. R. Lowe, Mr. this conection, our buskers undertook toen passant, that during the past year we having outlined to you the various pro E. M. Raymond and. Mr. J. Scots underwrite the whole of the proposed served in the Hotels under our manage-jects in the nature of improvements and issue, however, on reconsidering the ment no less than 1,490,000 meals exclu- extensions that are contemplated and in Karston (Directors), with Mr. P. E.
matter, it was deemed more advantage sire of outside catering, with the result hand, and you yourselves being witnesses Suckling (Secretary), shareholders pre-ous for the Company to enter into ather that it was found pecessary considerably to the improvements already effected in were Mesars. H. Birkett, R. I. arrangements with the result that the to extend the dining space in most of our establishments, I think you will are granted our establishments in order to cope with agree that your Board, in spite of the Bridger, N. V. Croucher. Felix Ellis, H. position now is that we
facilities with our bankers to the extent the constantly increasing demands made roubles and delays incidens to all building J. B. Norton, W. van Eps, P. K. Kwok, of an overdraft in a similar amount. As upon us in this direction.
and reconstruction work at the present Fung Tut Hang, J. White. A. W we shall be able to reduce the amount
THE CONSTRUCTION PROGRAMME, | time, are doing all possible to meet the Smith, W. J. Hawker, U. M. Omar, A,
of our overdraft from time to time when-
The major portion of the construction requirements of an evergrowing Hotel Nissim, Ha Gittings, J. B. Bourne, B. E
ever a credit balance is shewn on our programme in Shanghai has been in con- population and the demands of a public Maughan, E. E Ellis, C. Potts, shareholders will appreciate the undoubt. nection with the property acquired last only too ready to approve by the prac
year from the McBain Trust. This pro- tical evidence of its patronage. 1. A. Tobias, and J. M. da Rocha. 185,393 ed advantage which will accrue to the perty is in course of conversion and it shares were presented..
Company from these Arrangements, is anticipated that it will be ready to In conclusion, gentlemen, it may "in- effecting as they will a considerable sabe opened in the third quarter of the terest you to know that the number of thaing in interest-and this the more so
present year. I have every confidence employes in our organisation tetals slight- as our cash turnover is a larger one, that on completion the Majestic Hotely over 1,000 and it is a source of grati and that as a result of the new issue of will enable us to present to our patrona cation to know that the esprit de corp share for share at par we shall be dro an establishment offering a degree of that dominates our personnel makes it to receive 83.750.000 by the 30th June accommodation and service equal to the the constant endeavour of every member thereof,, notwithstanding the hard work and the prolonged hours of service that our business necessarily entails, to fur- ther the interests and welfare of the Company in every conceivable direction.
The CHAIRMAN, having read: Auditors' report, "snid:-
The liquidintion of The Shanghai Hotels, *Ltd., having been effected during the year under review, this is the first con- sion upon which you have been presented with the merged accounts of the amal gamated companies operating under the name of The Hongkong and Shanghai Hotels..Ltd. In the circumstances, share holdera will doubtless expert, me to analyse the profit and loss account and balance sheet with a view to indicating the financial position of the merged un- dertaking in rather more detail than can be shown in the printed statements of
account.
THE FINANCIAL POSITION.
Cuppy You will notice that Depreciation has been charged against Revenue to the extent of 8967.357.52 which, being item ize, is therefore self-explanatory. The ouly other item on the debit side that appears to me to rall for comment is that of bad and doubtful debts amounting $2.594.71, and I may mention that this amply provides for contingencies under this heading and, ulu-vis the gross turnover-which in a business such as ours necessarily runs into very large gures-is, I assure you, one that need cause no undue concern..
. י
current account, I Im confident that.
next.
Reserves stand at $4,033,787.48, of!
leading Hotels in Europe and America, whilst the building and the extensive grounds in which it is situate will provide for Shanghai a property worthy of and in keeping with its importance as the Premier commercial centre of North China
which mount the construction and development reserve accounts for five lakhs, and the general reserve for ten lakhs, the latter having been increased from 7 lakhs by the transfer of 2 lakhs from the profits for the year. It may here be as well for me to draw your at
In Hongkong, work on the construction tention to the fact that the allocations of the Peninsula Hotel at Kowloon is in respect of the balance of proft and proceeding satisfactorily, and we are pro loss account which your Board recomposed by our architects that the piling mend for the year under review have, will be completed by the end of April in anticipation of your approval, been and that thereafter the actual construe incorporated in the printed balance tural work will proceed with rapidity. sheet, as it was considered preferable a completion of this establishment, from the shareholders' point of view Hongkong will be equipped with a that the printed necounts should set forth hotel second to none between Suez and comprehensively what the Snancial posi- the Pacific Coast, and the Company will tiom of the Company will be after the be in a position to offer both to the local proposed distributions in respect of the resident and to the transient guest up to-date accommodation and service at year 1923 have been effected.
rates well within the range of the average purse,
made.
COMPANY'S ASSETY,
Plans have already been drawn up for erection of the Shameen Hotel, and work
In
OVER 4,000 EMPLOYEE
It is, therefore, with much pleasure that I now express to the staff on behalf of the Directors and, I am sure you will agree, on behalf of the Company gene rally, our thanks for the faithful and afficient service rendered by them during the past year which service has contri- buted in no small measure to the ex- tremely satisfactory results attained. In this relation I feel confident that you will endorse the action of the board in voting a bonus of 10 per cent. on their salaries to the European members of the staff and a bonus of an additional month's salary to the native staff, which, following the established custom. was paid to them at Chinese New Year."- (Applause.)
·SECONDER'A SPEZÓK. Mr. H. BIRLETT, in seconding he resolu
for all, those present when I say that we
will be commenced upon the construction tion, anid:-I am sure that I am speaking thereof in the immediate future. this connection I can only repeat my
APPOINTMENTS. *
Turning to the proft and loss account you will observe from the debit side that $200.913.38 was paid in respect of inter- est; this Sum covers such hendings as interest on Shanghai acquisition account taan, together with debeature and mort. gage interest in respect of both Hong- Long and Shanghai, and I would point out
Reverting to the figures before you. that with the exception of our indebted- ness to our bankers and two mortgages would point out that land and build of small amounts which will be paid off ng reserve stands at $3,153,767.48 and during the current year, the amounts out that this is chiefly due to the fact that standing in relation to mortgages and in view of the merging of the Companies, debentures have been repaid in order your Board deemed it advisable to have the properties re-valued by independent te fagilitate the merging of the two con- valuers and, such valuations having been remarks in reference to the Pepisania are listened with very great interest made, the appreciation. in book rale Hotel, with, however, this addition to the report which you have just gived thereof has been transferred to the that the Shameen building will naturally to us, which covers fully and yet con
cisely the position of the Company and credit of the land and buildings reserve. be of more modest dimensions.
the activities in which it is engaged. As a consequence of this, the annual de
THE GARAGE DEPARTMENT IN HONGKONG. peeciation to be charged in our accounts
I have no hesitation in saying that I Our Garage Deparement, I am pleased must be expressing what is in the minds in respect of buildings will be based upon the residual life value thereof in state, has shewn an increase in turn of all the shareholders in this Company, over, notwithstanding the advent of com- when I congratulate the Directors, and accordance with the valuations recently petitive means of automotive transit, but the staff who have ably assisted them, have for some time pass unfortunately upon the excellent results attained dur been severely handicapped by the lacking the past year. There is no doubt Turning now to the assets side of the of adequate garage facilities in which to but that the Company is to-day in an balance sheet, land and buildings are house the melera plant necessary to cope exceedingly sound position, and that the represented by figures based upon the with ever-increasing demands upon our re.extensions and improvements referred to Coming to the credit side of the hot valuations to which I have just referred, pairs department, and your Board there will not only considerably enhance the and. if I may be permitted to say so, I Fore took the opportunity of acquiring value of our properties and provide the and loss account, dividenils on vesi- think such valuations have been arrived a very suitable site at Happy Valley, increased accommodation required by the ments, $43,178.72. represents dividends at on conservative lines. Leasehold pro- comprising some 16,000 square feet. On public, but will in the course of time received, mainly in respect of our hold-perties 81,490,950 is in respect of Palace this site modern garage capable of bring additional revenue and profit to ing in the Grand Hotel des Wagons-Lits, Hotel property in Shanghai which we housing 150 cars, and providing for ap- the Company. With these few remarks, Ltd., in which undertaking our Company hold under a lease which is not due to to-date body-building, repair and paint- Mr. Chairman, I beg to second that the owns 3,534 shares or approximately sixty expire for thirty two years, and, as the per cent of the issued share capital expiration of that period we have the ing shops, is in course of construction, report and scounts be adopted and that thereof. Needless to say, no credit has option of purchase. Furniture and fix cations for permanent accommodation in proposed by the Board.
we have already received numerous appli- the profits be allocated in the manner been taken for anticipated dividends tures. linen,erockery and glassware, etc., the new premises, which will be situated accrued. Proft on sale of investments are all based upon conservative figures. at the converging point of what in the $100,933.88, is accounted for by the disinvestments $20.854.85 stand in
The resolution was unanimously car- posal at satisfactory rates of certain hooks at cost and I dare say that you doubtedly be pre of the main arteries the appointment of the Hon. Mr. P. E our course of the next few years will ried, as also were others: (1) confirming shares which, in the opinion of your will have noted that with the exception of the Colony. On completion Board, were no longer necessary in the of the small item of $2.337:19 we have road to Repulse Bay vid Wong Net Directors; (2) re-electing the Hon. Sir the new Holyoak and Mr. E 5. Kadoorie as interests of the Company to be retained. money invested in any business other Chong Gan, we look forward with plea A credit of $44,329.74, sewn as profit than that in which we ourselves are surable anticipation to being in a posi C.-P. Chater as a Director; (3) re-elect- |
sale of property, resulted from the isposal of the undertaking of the Shang-
and Messrs. Thomson & Co. as auditors ing Mears. Percy Smith, Seth & Fleming hai Sanitary Laundry in Shanghai, and of the land and property on the Sha.
for the ensuing year at the same re muneration as before: (4) fixing the fes mren, Canton, purchased in 1992 and sold
of the members of the Advisory Com in the early part of last year as referred
Tis. 1,200 each "per mittes at Shanghai o by the Chairman at the last yearly general meeting in this latter connection
Speaking generally, though one natu- you will doubtless recall that the site. Valley. The other items being self-ex-
uitable as it was for a small hotel, had planatory, I venture to think it unneces, rally hesitates to prophesy as to the 'this disadvantage that it would not sary for me to offer any comments in fature. I fenture to think that the re permit future extension; therefore, as a
I may add, how-sults of the past year are of such au connection therewith. "satisfactory offer for the property was ever, that as from the 15th of November encouraging nature (bearing in mind the we acquired the business and vicissitudes through which we have pass forthcoming and a more suitable site at last
a result of the prejudicial that time became available, your Direc- general assets, etc.. of the Hotel Kalee ed mainly tos disposed of the former property and in Shanghai, which proriously, although effect upon our transient business by acquired Lots 18 and 24 on the French the actual property was owned by The reason of the Lincheng outrage and the
A meeting of the Council of the Uni- Concession, Shameen, of an area of ap- Shanghai Hotels, Ltd., had been leased Japan disaster-both of which naturally
very much curtailed the Autumn travel) versity of Hongkong was held in the proximately 25,000 square feet, and by them to the Grand Hotel Kalee, Ltd. situated immediately opposite the main
Before closing my remarks in relation that we may look to the future not Legislative Council Chamber on Friday,
merely with equanimity but with a March 21st. to the profit and loss account and balaned degree of confidence, more especially as bridge.
The nett balance of profit and loss sheet, I desire to point out that the with the completion of our new hotels KC.M.G., presided, and the following His Excellency, Sir Edward Stubbs, acement (which includes the sum of doubtful assets with which The Shas we shall be in a position to deal with a members of the Council were also pre- £23,714.10 brought forward from the year
hai Hotels. Ltd., was encumbered have now been satisfactorily liquidated: con- greater volume of business and on more sent:-Mr. W. W. Hornell, C.I.E., Vice- 192) is, as you will note, $1,008,705.15, and as the balance of proft and loss ac sequently, it is gratifying to your Dirce economical lines than heretofore. In this Chancellor, the Hon. Sir Claud Severn connection it would perhaps not be pre K.B.E., C.M.B.. LLD., Hon. Mr. A. E enunt is quite naturally regarded as tors to be, able to present to you a an index to the propaperity of a Com-assets of a doubtful nature--the matters are in mind, when the Peninsula Hotel Dr. J. B. Addison, M.B.E, Mr. G.
balance sheet that does not include any have in mind, when the Peninsula Hotel Wood, M.A. Bcn. Mr. R. B. Kotewall, pany's business, your Ecard trust that which caused them a certain amount of un-old portion forming the northern block Professor C. A. Middletor-Smith, Pro- is completed, the reconstruction of the Orme, B.A., Professor K. E Digby, you will consider the results achieved in easiness during the past two years having the course of the past financial year as bees finally disposed of before the close of the Hongkong Hotel, that is to say fessor W. J. Hinton, M.A., and Mr. N. Being entirely satisfactory. You will observe from the balance sheet the issued of the last financial year, in which con- the portion fronting Des Voeux Road and Teesdale Mackintosh, M.A., Registrar.
The text of a resolution, passed at a apital of the Company was increased to noction I should like to avail myself of Pedder Stroet, with a view to erecting
this opportunity of $3,750,000 during the year. This was
as its position in the heart of the busheld in New York on February 5th, 1924, Committee and to our General Manager eas and banking districts undoubtedly was laid on the table as follows: in Shanghai or appreciation of their warrants and demands
"REPORTS OF THILIATESED COMPETITION.”
engaged. Payments on account of con- tion to considerably lower the charges for transportation to the south side of struction in progress $278,750.52 is ac counted for by payments on account of the Island and to render an efficient and with the constraction of the Peninsula work which is proceeding in connection more frequent service to our patrons. Hotel at Kowloon, the Shameen Hotel
at Canton, and our new Garage at Happy
RECONSTRUCTION OF PART OF HONGKONG HOTEL PURESHADOWED.
ADRUM.'
In closing the meeting the Chairman announced that dividend warrants would be ready today (Monday).
UNIVERSITY OF HONGKONG,
ROCKEFELLER GIFT ACCEPTED.
ccasioned by the issue of 17,560 shares gentlemen who constituting to the thereon an up-to-date establishment such meeting of the Rockefeller Foundation |
"
our Advisory
.
པྟཱཿ
"Resolved that the sum of one hundred and forty thousand dollars (140,000) be, and it is hereby appro- | priated, of which many as may be Recessary shall be used to purchase Hongkong dollars two hundred and fifty thousand (230,000) upon Indica- tion that the University of Hongkong has signed a trust agreement providing for the continuing use of this fund es endowment for the Chair-of· Obate- tries."
11
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TWEED SPORTS COATS 'OF THE LATEST FASHIONS IN. HARRIS, DONEGALS, BLIGETZ TWEEDS, ETC.
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DINNER SETS
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$75.00
$87.50 $97.50
DARK BLUE & GOLD LINE DINNER, TEA AND BREAKFAST WARE-
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Itd.
at pur to the holders of the balance of the issued share capital of The Shang Taluable advice and assistance, which bai Hotels, Ltd, in order to give effect have contributed in no small degree to I was recently approached by 2 to the agreement for amalgamation be this very satisfactory state of affairs. shareholder" who appeared to be some tween The Shanghai Hotels, Ltd., and The Hongkong Hotel Co., Ltd..
While the results of our operations what perturbed by reports of threatened during the year 1923 aro reflected in the competition, and I should like to take Loans and mortgages stand at accounts bofare you, it will doubtless add this opportunity of informing share. $5,510,811.09, principally by reason of the to your satisfaction to know that the holders that if they will just merely acquisition of practically ninety per sent. business of the Company is steadily ex-glance at the balance sheet of the of the shares in The Shanghai Hotels, panding on pound progressive lines, and Company wherein the assets total Itd., and the necessity of retiring. the there is no doubt that the amalgamation $16,298,012.00, and bear in mind the fact debenture issue and the mortgage, of which has been effected will result in that it owns, in every place at which our that Company upon the transforence of the economy prophesied by my prede business is established or will be carried On the motion of H.E the Chancellor, the assets and liabilities to this Company cessor in this Chair. You may, moreover, on, what are probably among the most seconded by the Vice-Chancellor, the in Hongkong. The figure referred to rely on your Board to leave nothing un centrally located and valuable sites, the Council authorised the acceptance of this abo includes the coat of redemption of done to administer the affairs of the majority of which were acquired years sure to be signed and the University scal
University, Mr. N Teesdale Mackintosh, The debentures of The Hongkong Hotel merged undertaking in the most econo- ago at rates incomparably lower than to be affixed thereto by the University signed by His Excellency, Sir Edward Mr. WE Shenton Lof the firm of The necessary documents were "the M.A. The signatures were attested, by Co., Ltd., optatanding on the 30th Jane mical manner consistent with proper those ruling to-day, they need have no officers.
maintenance and efficiency.
qualms in this, particular connection. (Continued as foot of ntal column.)
Zast
TEA SETS. TABLE GLASS.
Stabbs, O.M.G Chancellor, and Deacons," Honorary Solicitors to the countersigned by the Registrar of the University,