THE HONG KONG DAILY PRESS, MONDAY, APRIL 7, 1930.
́BATHING PAVILION AT REPULSE BAY the revenue derived from that route and homes, at least, affords us
PLANNED BY HOTEL COMPANY.
'BUS SERVICES ON ISLAND MAY BE AFFILIATED, THOUGH NOTHING SPECIFIC HAS EVENTUATED.
HONG KONG AND SHANGHAI HOTELS TURN THE CORNER.
BANK
INDEBTEDNESS IS NOW LARGELY REDUCED.
In connection with the proposed affiliation of the 'bus service with the tram service, the public will be interested to hear that at the annual meeting of the Hong Kong & Shanghai Hotels, Limited, the Chairman intimated that although pourparlers have already taken place, nothing definite has materialised up to date."
Another interesting announcement made by the Chairman was to the effect that the Board of the Hotel Company was considering the question of an augmentation of the bus service to Repulse Bay at reduced rates, during the, coming bathing season, and the establishment of a -bathing pavilion at that resort offering dressing rooms, and refreshments to the public at moderate
terma.
ד "י
The sale of the Majestic Hotel was also mentioned. The Chairman, in this connection, stated that the receipt of the purchase price had had the effect of largely reducing the Company's indebtedness to the Bank and would effect considerable saving in interest charges. It was also mentioned that the Company had no large programme of extension in prospect.
Mr. J. Scott Harston was in the chair and was supported by Mr. J. H. Taggart (Managing Director), Mr. E M. Raymond, Mr. Allan Caneron (Directors) and Mr. F. C. Barry (Secretary).
Shareholders present were:-Mr. J. T. Bagram, Mr. A. Brearley, Mr. Choy Wing Hay, Mr. N. V. A. Croucher, Mr. W. E. Van Eps, Sir Robert Ho Tung, Mr. Firdos Khan, Mr. Lee Coon, Mr. Li Yat Choi, Hon Dr. R. H. Kotewal, Mr. S. A. Lopes, Mr. G. C. Moxon, Mr. 1. M. Omar, Mr. T. R. Parsons, Mr. A. H. Potts, Mr. G. H. Potts, Mr. E. Sadick, Mr. Kelly Sayre, Mr. F. X. A. da Silva, Mr. P. M. X, da Silva, Mr.A. W. Smith, Mrs. M. T. Taggart, Mr. J. F. Whitham, M. F. A. Xavier, Mr. M. A. Xavier, Mr. Yeung Yau. Mr. Low 'rence Kadoorie and Mr. Horace
Kadooric.
THE CHAIRMAN'S SPEECH.
17
C+
its inception, and has resulted in becoming almost double that pre- viously obtained therefrom.
Your Board has under considera- tion the question of an augmenta tion of the bus service to Repulse Bay Beach at reduced rates, in the coming summer season, and the catablishment of a bathing pavilion at that resort, offering in the mat- ter of dressing rooms and the pro- vision of, refreshments, facilities to meet
the growing demand for transportation and accommodation. at rates within, the scope of those with moderate means.
if not actually flowing with milk better fare than of late, and opens up brighter prospects than have heen our lot for some few years past.
When you consider that we ow own six well equipped hotels, an excellently conducted and well patronised motor bus service, and that our indebtedness to our bank- ers has been reduced by some three million dollars coupled with the fact, as the Chairman has just in- formed us. that there is every in- dication that such indebtedness will be materially reduced out of earn It is interesting to note in cunneeings in the future-I think I may tion with our bus services that the say that it bears excellent testimony number of passengers carried over to the fact that the earning powers all routes during the year 1929 ap of our undertaking are consider proximated 3 millions.
able, and under moral conditions, should be cap. able of material expansion.
Majestic Hotel.
more or Jess
inside the borders
of our great neighbour does dis appear as disappear it undoubted ly will then, I think, the owners reward for their far-sightedness. in of our fine hostelry will reap a rich embarking upon this great under. taking.
serves,
In view of the statement made by the Chairman of the Hong Kong Tramways, Ltd., at that Company's. As I said two years ago, we are, annual general meeting held recent-in effect, a publie utility company, ly, shareholders will doubtless ex- and I consider that, with the com- pect me to make some reference to pletion of the Peninsula Hotel, we the subject of the possible affiliation not only have an asset with great pf. the transportation services of the possibilities from a revenue produc- respective companies. In this con- ing viewport, but, furthermore, the nection, although pourparlers
Colony has also gained an asset of have already taken place, nothing which it should be justify proud. definite has materialised up to date. In spite of many gloomy predic- In the circumstances, it would options, this Hotel has proved a great pear imprudent for me, at this success and, if I were an Irishman, juncture, to offer any comments as I might say that our white elephant to the possible outcome of negotia has turned into a swan; and I am with its bankers. The various other Turning to the matter of the opportune to assure shareholders that on, the Peninsula Hotel at Kowloon tions; nevertheless, I deem it up firmly convinced that, as years go items constituting the debit side propriations recommended by the the policy of the Board in this will become world-famous, and that of profit & loss account do not ap- Board for the year under review, matter is one of conciliation to when the state of chaos that seems pear to call for further explana-shareholders will doubtless {tion" on my part; I deem it neces pleased to see the Company in the probable that-provided some mu-
bewards the Tramway Co., since it is perennial sary, however, to draw your atten- position of being able to revert to tually beneficial arrangement can tion to the two iteams (to a dividend paying basis after he entered into an affiliation of read in conjunction with period of four years, during which the respective services would be to our another) maintenance and nu distribution has been made; the benefit alike of the interests of repairs account"
amounting nevertheless, I think I may usefully the two Companies concerned and to $141,358.29 anil deprecia: inform you that during that period tion amounting to $320,788.59, the Company has transferred a sum Board is not disposed to lose sight of the local community; but your making A total of $482,174.88 of no less than $2,300,000 to
If I may add a personal note, f the of the fact that this Company were chargeable against "working" in augmentation of its reserves, de-
may say that have at all times respect of maintenance and repair spite the difficult times through motor-hus transport in the Colony misapprehension the matter of our for many years the pioneers of viewed with a certain amount of and depreciation of your Com- which it has passed (due very large and incidentally for a lengthy embarking upon ventures outside pany's properties and equipment. ly to financial stringency entailing period operated unprofitable routes; of Hong Kong. In the circum- In this connection, I may add heavy demands in regard to in-eonsequently your Board is not prestances, I may add that I speak that not only have your Company's terest payments in respect of bor-pared to entertain the handing over feelingly when I congratulate the properties, together with their con rowed capital, and enhanced by the of this portion of your Company's Board on their sale of the tents and equipment, been
Majes- well series of events connected with the activities without adequate com- maintained; but in addition the disturbances in China, which have pensation.
tic" property.
I am glad to see our bus and depreciation provided for in re-naturally acted as a strong deter spect of these assets is such as to
garage department has reaped the rent to its earning power) and I more than fulfil the adequacy de- think I am justified in claiming as
measure of success, it so justly de- "As most shareholders are aware, anded by the nature thereof. adequate testimony to the stability the Majestie Hotel, Shanghai, open pioneering work embarked upon by having regard to the Coming to the assets side of the of your undertaking the fact that,ed in 1924, has, under this Com- our Company in this particular The Chairman said: -Gentle balance sheet, you will see that un in the past four years, its business pany's management, achieved dur portion of its business, and, whilst men,The report of your Directors der the respective headings "land has not only been able to cope with ing the past five years a world-wide on this subject, it is gratifying to and statement of accounts for the and buildings," and "furniture and all its difficulties, but has also dur-reputation for its accommodation, hear from the chair that this asse! financial year ended, December 31, fixtures, etc.. there is a material ing that period never presented you service and appointments. and the will not be parted with unless for 1999, having been in your hands for decrease compared with the previ- with an adverse balance at profit brilliance of the innumerable fune a substantial quid pro quo. Our the prescribed period, I will, with ous year, which is accounted for & loss account. In reference to the tions pertaining to many nation transport business has proved a your permission, follow the usual by the disposal of the Majestic matter of "reserves." I would in- alities which have been staged great boon to the public, and I progedure," and take them as read, Hotel, Shanghai, and its contents. cidentally point out that your there. When the property was pur- think all will agree that the ser
The auditors report is as fol- The increase in the item stacks Directors recommend that the sum fchased by this Company, it was vice it readers is excellent and its lows:-"We have audited the above and stores" is mainly accounted for of $1,000,000 which has been voted intended that the extensive grounds management most efficient, in which account and balance sheet with the by the garage department having from time to time from profits to in which the hotel building is connection "F. may add that it is books and documents of the head perforee to carry heavier stocks of the credit of the "construction and situate should be developed by pro- not the first time in our history office, and the accounts and balance equipment and spare parts in con- development reserve be transferred viding extensions thereof; but the that this Company has served the sheet of the Shanghai branch, rannection with its augmented automo to a "reserve for depreciation," situation which arose in June, 1925, Colony faithfully in fact, in my dered by Messrs. Thomson & Co, tive transport vehicles. The only since the designation of the former postponed the progress of your considered opinion, there is a big as accountants to the Company, in other item on the arts side of the reserve would now appear irrele Board's policy in this matter, and score to our credit-Repulse Bay Shanghai, certified by them as cor-balance sheet upon which I feel vant in view of the Company havainer that time financial conditions and its development, cheap meals rect. We have obtained all the in-comment is needed is that relating ing no major constructional pro- have failed to warrant the develop for all in the "strike" day's, formation and explanations we to "aundry debtors balance of pur-gramme in hand.
ments previously contemplated efficient transportion services, and, have required, In our opinion, Fehase price, Majestic Hotel pro- There being no further items Moreover, the general conditions last but not least, the Peninsula' such balance sheet is properly perty. 82,100,000, as to which I which appear to call for explana-obtaining in North Chinn during Hotel-a great attraction" to tour- drawn up so as to exhibit a true am pleased to inform you that tion. I trust that the appropria. the past few years have not been ists, who are welcomed here by most and correct view of the state of the
funds in complete fiquidation of tions recommended by the Board such as to inspire your Board with sections of the community. Company's affairs according to the this item were received and lodged will meet with shareholdere" ap. the confidence necessary to justify. In the circumstances. I have no best of our information and the ex- with the Company's Bankers on the proval.
their sinking further funds in the hesitation in saying that this Com- planations given to us and as shown
date fixed for the completion of the
property. When, therefore, a cash pany, to my mind, deserves success. by the books of the Company-purchase, viz., January 6, 1930.
Peninsula Hotel,
offer for the purchase of the pro-and I think is now on the high road Perey Smith, Seth & Fleming, In-
Exchange Fluctuatious,
Although formally opened in the perty was reocived towards the end to attain it. corporated Accountants, auditors, In this connection, I would draw middle of December, 1998, und
of last year, your Board consider- attention to
operated throughout the whole of the notification a the year 1999, it was not until dur-circumstances, proper. The receipt ed that its acceptance was, in the of the credit side of the profit & Pended at the foot of the balance ing the latter months of the last of the purchase price has had the loss account for the year 1029 that sheet indicating that Shanghai the balance of the working account currencies are converted at the rate mentioned year that this establish- effect of largely reducing the Com amounted to $1,358,968.16 against By way of explanation, I would limit, to cope with the situation to
of taels at 72 and dollars at par.ment demonstrated its capacity, pany's indebtedness to the Bank even when alled to its utmost and will effect considerable saving 1,113,867.15 for the preceding year
in point out that the assets in Shang- the complete satisfaction of its which, I may incidentally add that. interest charges, regarding -being, an increase of 8245.102.01. which I think may in the circumst., are carried in the Company's patrona--a state of affairs which as the Company has no large pro especially as this result has been book rats is converted at the during the recent "travelling sea- and as the greater portion of its has occurred on so many occasions gramme of extension in prospicet, ances be regarded as satisfactory-books in Shanghai dollars and that obtained in spite of the adverse
son," that the action of your Board revenue is in the nature of cash rate of 72 vis-a-vis taels the aver in embarking upon the construc- trananctions, it should henceforth summer season experienced at our Hong Kong establishments, duenerate prevailing on transfers in tlon and complete equipment of this be able to effect further materia! principally to the unfortunate Shanghai which must not be con- fine establishment has already-al-reductions of its overdraft from water shortage in the Colony dur- ing the summer of 1929, which led
taels and Hong Kong dollars. On though the Hotel has only recently time to time.
Hong Kong, March 20, 1930.”
You will observe from a perusal
to conditions detrimental to success- ful hotel operation, particularly in relation to transient patronage.
The additional revenue respon- Bible for the increase of the work
ed from the Peninsula Hotel, our
Shanghai establishments and from the augmented bus services brought inta full operation by our garage department during the period ua- der review.
Majestic Hotel Sale, You will observe that the working profit for the year has been aug ineated by the sum of 8389,185,23 in respect of the profit on the sale of the property occupied by the Majestic Hotel, Shanghai, a sub- ject to which I propose to make further reference later.
Shanghai ussets
fused with the cross rate between
of
'Bus Service.
4
་
Pay a dividend of 50 cents per share on
With these few remarks, Mr. seconding the adoption of the re Chairman, I have much pleasure in
port and accounts.
The retiring director, Sir Ell, Kadourie, was re-elected on the pro- position of the Hon. Dr. R. H II. Potts. Kotewall and seconded by Mr. G..
Messrs. Perey Smith, Seth and for the ensuing year at a fee of Fleming were re-elected auditors
L. Kadoosie and seconded by Mr. $3,000 a year.on the proposal of Mr.
J. T. Bagram.
THE VOLUNTEERS.
•
MAJOR DOWBIGGIN TO BE TEMPORARY COM- MANDANT.
The current number of the fizette notifies that H.E. the Officer Administering the Govern- ment has appointed Major Hugh Blackwell Layard Dowbiggin to act 790,337 shares....... 8393,178.50 as Commandant of the Hong Kong Transfer to exchange
Volunteer Defence Corps, during fluctuation...... 130,000.00 | the absence on leave of Lieut. Col. Transfer to repairs and renewals account... Carry forward to new
necount
Lennox Godfrey Bird, D.S.O., 100,000.000.B.E., or until further notice,
with effect from April 25,
143,114.93
8701,203.43
this point I have also to state that tion-met with exceedingly gratify to which I can usefully refer, I now completed its first year of opera- There being no further matters exchange fluctuations between
ing results.
Experience during the formally propose that the report Hong Kong and Shanghai do not affect this Company, except at such past season has shown that this of the Directors and the accounts times as remittances are made be Hotel is well established as the for the financial year ended Decem
venue for all local functiong and ber 31, 1029, as presented be adopt. tween the respective offices, ол ing account balance has been deriv which occasions the differences in festivities of importance and aire-ed, and that the following appro exchange transactions are debited ady holds a premier position in the priations recommended by your lists of travel bureaux and others Directors, as incorporated in the or credited. as the circumstances responsible for the mapping out of balance sheet, be carried into effect, require, to the profit & loss account itineraries of travellers to the namely: for the particular years to which Orient. The presence of this, the the transactions appertain. In this relation, you will observe that most modern hotel in the Colony, your Board have made provision to the Port and a factor of very is undoubtedly an added attraction for the future by creating an "ex material inanence in the prolonga- change Auctuation account" and, tion of the visits of transients bere if yon endorse the recommendations with the consequent benefit to in- before you in the matter of the terests, other than its own in the allocation of profits for the year Colous. under review, ER amount $150,000 will be credited to an ac- count to be opened under that par
I am pleased to say that the ticular head, with a view to mak measure of support accorded to the ing provision for any possible fu Queen's Road Motor Bus Service ture loss on exchange operations.
during the past year has fully Turning to the liabilities side of justified the optimism I expressed the balance sheet, I would remark from the chair last year in connee- in reference to the item "loans setion with the necessity for the in- cured by mortgage" that, although auguration of a de luze 'bus service only a comparatively small reduc through the central part of the tion of our liability under this head city. Evidence that such necessity has been effected since the previous existed, and that the expenditure accounting period, nevertheless the involved in the provision of the fine Company's liabilities included un-fleet of vehicles your Company now der the item "sundry, creditors" owns was justified, can be obtained appear at the reduced figure of at any time from casual observation $291,0M.30 as compared with those of the buses in operation. of the previous year. Reduction of our indebtedness in respect of the first mentioned item was affected early in the current year on receipt
Total
holder will kindly second such pro- and I shall be obliged if a share- posal, whereupon questions as to the report and accounts may be raised.
Better Times Ahead. The report and accounts were unanimously adopted after they had been seconded by Mr. G. C. Moxon, who said:—
You will also notice an increase over the figures for the previous financial year in the item of income "rentals of shops and officer," in which connection the tenancies granted at the Peninsula Hotel are in the main responsible.
Turning to the debit side of the pront & loss account, you will notice that considerable increase is shown over the previous year's figures in the main item under the
Mr. Chairman and Gentlemen, heading "bank interest." During
When I say that I rise with plea the construction of the Peninsula
sure to second the adoption of the Hotel the interest accruing on the
report and accounts now before this monies expended, in respect thereof
An increase in the number of meeting, it is no empty, formula. was debited to capital account, but
vehicles ranning on the "Univer- | For a variety of causes, over many on the bringing into operation of
sity" route was made as from the of which our Board has had no con- that establishment, this capitalisa
beginning of September last. This trol, this Company has been in the tion of interest necessarily ceased, of the balance of the purchase price increaSO coincided with the in-wilderness for a matter of five and consequently revenue for the in respect of the sale of the Mastitution of a 10-cent fare over that years, and it must be a source of no period under review has borne the jestic Hotel property, and it con- route instead of the previous rate little gratification to my fellow full charge in respect of all the sequently follows that our indebted of 20 cents. It will be gratifying shareholders as it is to me person, interest paid by the Company in ness to our bankers stands at a con- to shareholders to know that the ally to bear that, at length, we relation to its overdraft facilities 1 siderably reduced figure to day, new system has been a success from have been brought to a land, which,
|
LOCAL APPOINTMENTS.
the Government has re-appointed
་ ་
H.E. the Officer Administering
the Hon. Mr. Ts'o Been Wan, O.B., LL.D., the Reverend Arthur Dudley Stewart and the Reverend Frank Short, as members of the Board of Education for a further period of two years, with effect from April 9, 1930.
Mr. Quentin Allison Ashby Mac- fadyen has been appointed to be an Assistant Superintendent of Im- ports and Exports, with effect from April 1, 1930.
Mr. Hugh Blackwell Layard Dowbiggin has been reappointed a member of the Board of Education for a further period of two years, with effect from April 15, 1930.* ..
Mr. Thomas Henry Robert Shaw has been appointed a member of the Harbour. Board. vice Mr. Robert Sutherland, O.B.E., with effect from March 27, 1930.
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