峻
HONG KONG AND SHANGHAI HOTELS, LIMITED.
CHAIRMAN EXPLAINS REASONS FOR PROPOSED
INCREASE OF CAPITAL.
RECONSTRUCTION OF THE PEAK HOTEL: 'BUSES
"AGAIN HAVE A GOOD YEAR.
Mr. J. H. Taggart presided at the annual general meeting of the Hing Kong and Shanghai Hotels, Ltd, which took place in the Company's offices, Exchange Building, yesterday. During the course of his spooch, Mr Taggart explained that the chief reason for the proposed increase in the Company's capital was that the. Board of Directors had in mind the desirability of re-conditioning and developing certain of the Company's properties which includ........ ed the reconstruction of the Peak Hotel,
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Continuing, the Chairnah said that there was also the fact that in a short time the extension of the garage in 'Stubbs Road wőnid have to be seriously considered and in addition to the many differ. unt schones in the Colony, ròquirements for the future as regards the Company's Shanghai properties must also be borno in mind.
COMPANY TURNS DOWN BIG OFFER
IN SHANGHAI.
The
HONG KONG DAILY PRESS SATURDAY MARCH 19, 932:
Accounta
that
charges in the Company's Accounts operation consequent upon tho de shareholder at the last annual in respect of such payments to the preciated value of the local durmeeting, is under consideration; In personnel involved alows no mate rency prevailing during the major this connection" I may add rial inequuse, the apportionment as portion of the year, coupled with it is highly improbable that between "alary' and "commisho high prices ruling for gasoline complete schome of reconstruction sion reveals a much heavier charge and the Government Taxation im will be undertaken at this juncture, under the Inter heading. It is Fosed thereon, rendered it difficult having regard to the fact that this
falure proposed, in
toto produce a profit on working, bay would necessitate b complote exavua- charge the whole of such remunerning regard to the fact that notion of the existing building involv- tion against the General Working increase in fares was sought. Suo ing- total loss of revenue suvering Accounts and confine the Profit and cessful exploitation by the Company A" period ostimated conservatively. Long Account item of "Commis of all possible avenues for effecting a two yours, whilst it is highly economies in operation during the improbable whether a modern esta- sions" solely to administrative pay. "monts which may occur under this year has enabled this side of the blishment-Incorporating the casen- Company's artivities to contribute dials of an up-to-date Hotel and bending.
& proft to the general Working Aoentailing the heavy capital outlay count for 1001 which, in the eir attaching to such a proje-would You will note that the past year's cumstances, can be considered high-ateract the volume of patronage and accounts disclose the provision of ly satisfactory. A reduction in degres of spending power, in what adoquate depreciation, before com-gasoline prices since the beginning is essentially a residential aren, mutation of the figure of profits be of this your, combined with a ro- necessary in order to make the före you for allocation, and duction applicable to the cost of venture a success insucially; ra would point out that, in addition, a tyros. and other equipment, renders ther is your Board inclined to the considerable pant of the work effect. moru furourable the operating proviow that improvements can be od in maintaining and moderizingpeuta of the current year. the Company's assets has been borne out of revenue. You will observe that the Profit and Less Account includen expenditus amounting to 8137,672,22 for the your in seilion, to this,
Further, out of the Balance
Depreciation,
1
standing to the credit of Repairs and Renewals Account to the begin-
Diesel Engines On Buses,
offcoled to the existing establish- ment. as opportunity permits with Aa foreshadowed Inst year, a resulting degree of modernizat zorious consideration has been given ion commensurate with the extreme 'to the usiliantion of the Dissal typefly reasonable rates-charged-the lab- engine in the Company's vehicles. ter factor being the prime attrac From the progress made in experi- tion of that Hotel, antal work during the year a de cision resulted to convert ong, of our buses from petrol to oil fuo,
After reading the auditors' re daring the preceding year. part, the Chairman said:-Dauling incidence of transfer from Shang- with the Profit & Loss Account, I hai guring the year of the sale am piensed to be able to call your proceeds of the Majestic Holal Pro- attention to the substantial increase party which stond to the Company'suing of the year 848,707,23 has been in ampunt, compared with the pre- credit there--funds do which I male absorbed in relation to the cret of vious year, of the Balance of reference at the last nenuat meer Working Account, brought to ing-ant the receipt of some geredit in the sum of $1,750,352.48. $2,000,000 in respect of the New The preceding yeir's working pro- | Issue of Shares made on the 1st capitalised. dated: $1,296,-139.35 under thia hong-|July last, contributed mujaly to ing, and the increases of 8457,044.00, this considerable saving in Inter-the balance sheet, there would in regular service and has fune displayed this year should. I feel, "ost,
evoke satisfaction, having regard to
the fact that operations over the Inat
...
part of the improvements effected to the ground and first floor areas of the "Hong Kong Hotel nol
In reviewing the assets side of
year.
This
מזון
Optimistio Outlook.
of
with a Crossley diesel type en gine. As may have been observed from recent reports in the local Press, this vehiclo was inspected by the police last month and passed all toste satisfactorily. Since that date the converted vehicle has been
War Risk Insurance.
sum
Property In Shanghai, *Consideration must shortly be given, however, to A scheme for! the extension and development of the Happy Valley Garage property, creasing restriction in view of the As the facilities here, suffer in
continued improved husiness'experi ones in the transportation depart ment,
year
to be
Was
Con!-
the past, the Company's business bas perforce "had trolled by a Board very restricted in membership.
In the circumstances it is deemed essential that steps be taken to al-
pear to be no outstanding feature,
Further requirements in conney upon which to comment, for the apcircumstances, steps are now being tioned most satisfactorily, In the Exchange Fluotuation Account."
tion with the Company's properties plication of the depreciation provi taken to effece similar conversion in Shanghai must not be lost sight, financial year did not embody a
I would here make reference tosion accounts, in mbet instances, to the other vehicles which, of com of The Astor House and Palaes normal vajume of transient tourist the iden of 880,719.27 Loss on Ex-for differences disclosed when completion, should bring about a very Hotels there continue to produce an
considerable saving in fuel costs, patronage, der to the somewhat change" borne by last year's Pro-paring respective figures of assetsa further factor tending to increase adequate return upon the Com stringent financial conditions which fit. and "Loss Account. At the An- with those appearing in last year's prospects with regard to the future pany's investment in those proper. prevailed in Europe and the G.S.A.nual General Menting held in accounts, with one exception, he.,operation of this Department.
With regard to the
ties, but consideration must sooner. establishments April, 1930, Shareholders, in deal the item Buildings," which this 2,087.11 out of the balance of struction of one or both of thes Nevertheless your
of or later be devoted to the recon- both in Hong Kong and Shanghaiing with appropriations of profit your is recorded at a
Profit and Loss Account, which your establishments. Your Board's faith experienced business, during the made in rrepect of the financial $150,000 higher than appeared Insi Directors recommend be carried lar.in the high valuce attaching to both ward to the New Account; as this of the properties in question con year of a volume sufficient to enable year 1920, adapted the Board's, re-
increase represents figure may appear to the minds of tinues to be justified notwithstand- Hotels, without exception, to pro- commendation that $180,000, out of mainly the capitalised portion of some Shareholders to be undulying the disturbed conditions in the vide the General Working Accounts the balance at credit of Front and the expenditure on the improve high, I would say that, at the time Northern part, and I think it well with a much increased quota of | Loss Account be transferred to an mentes carried out to the Hone your Directors' Repont and recom- to mention, in view of the various
inendations were, formulated, the profi.
"Exchange Fhatuation, Account" Kong Hotel Building in reconstruct situation at Shanghai appeared mers current from time to time With regard to the item of with a view" to affecting provisioning the ground foor and the first sufficiently uncertain, and grave ag with regard to this Company dis
to promote a certain degree of ap
posing of its Shanghai interests, $38,705.17: Dividend on Invest for losses ou exchange involved indoor areas,
prehension with regard to the prostor House and Palace Hotels and that Arm offer to purchase the As menta," this income has been deri making remittances from Shanghai
pects of our two establishments in contente for H.K. $6,500,000 ved from the Company's holding of to Hong Kong, having regard to
that pore for the current year. The refused by the Board during Insi shares in the Grind Hotel des the fluctuating cross rate between Whilst on this subject, I can re-
desirability appeared indicated of conserving resources against the Wagons:Lita, Limited, and, in a Shanghai Thels and Hong Kong port that the complation of this possible" detrimental influences on Board of Directors. mensure, refects the period of but. Dollars. During the your under work; which brought into productive operation, a lengthy continuance of
the disturbed conditions might pro- to be placed before you as a sub. Turning to the second Reanhition for business experienced by that review the exchange position be operation a hitherto dend Eren and
mote. Company in Peiping, which I vol- tween the Northern Port and Hong fulfilled the long apparent necessity
sequent meeting his morning. which is in regard to the alterna- tured to foreshadow from the Kong rendered difficule the brane of improving the grill room, restau- Chair last year. It will doubtless fer of funds standing to the credit rant and lounge facilities of the the Northern Port, your Board sanction is sought, those amend At the time of the Brat clan Association and for which your tions to the Company's Articles of prove of interest to shareholders of the Company in Shanghai. It Roug Kong Hotel, produced an in- deemed it advisable to effect Warments, if passed, will effect neces to learn that the Grand Hotel des was deemed advisable, however, to mediate increase in business, auf Risk Insurance covering the Bhangary restification to situations of Wagons-Lits. Ltd.-in which
hai properties, and this was effect-in the past in the conduct of the con-take advantage of opportunities fciently gratifying in volums to
ed in respect of the month of FebruCompany's affairs. carn your Company is n holding which arose during the year, when permit an optimistic outlook with ary at a cost, for both the Astor Company to the extent of 8 per the trend of exchange inclined regard to maintaining, out of the House and Palace Hotels, of some when leaving the Colony tempor Up to the present time Directory, cent of the issued capital thereof comparatively favourably, to make earnings produced from the recon
$28,000. During the earlier term of arily, either resign from the Board was enabled during the financial transfers, as the immediate, actuas structed property, an adequate remore particularly in view of the consequence, over many periods in
the disturbed times, the amulticu,
or apply for leave of absence. In pariod ending 20th June, 1831; not saving in Interest payments, etout-urn upon the expenditure made proximity of the Astor House to baly to retire completely throughed by the cousuenorks reuuction in respect of such work,
the moat seriously affected aren, in your Board's opinion, fully war its own resources the Debenture of our indebtedness to the Bank in With regard to the liabilities side rapted the precautionary insurance lague amounting to $231,000, at Hong Kong outweighed the Book of the balance sheet, you will ob monsure undertaken. As later, how was also in a position "to effect a loss such transfers involved.
surve that the authorised capital ever, the venue of the more dan distribution of 10 per cent, on its
gerous clashes became further re- Transference of approximately 38 of the Company, $10,000,000, now moved from the
ter the Articles of Association in International ordinary capital," Eurthermore, the lake of dollars from Shanghai to stands completely issued.
Sattlement, it was decided not to ment of alternate Directors, but it
order to provide for the appoint! financial position, at the afore Hong Kong was made during the
Loans accurod
renow the insurance cover and same by Morunge, mentioned dato
was permitted to lapse as at the is considered to be in the best in- was such that,inst hunncial year. The book to which, at the December 31 last,
end of February,
|terests of the Company that the amounted spart from being freed of all debt, involved. on these transaction ab- been reduced to the lowest level ex-
82,000,048.17, have There do not appear to be fur right to he vested in a Director of a roserve had been, bails up of the orbed the reserve of $150,000 and perienced by the Company during of the accounts upon which I can stricted to Directors holding a ma- ther matters. arising from a review during temporary absence be re- nominating another in his stend
equivalent of 50 per cent. of the necessitated, in addition, that a
the past twelve years.
5་ usefully comment, but before subterial stake in the Company. The paid up capital and of such 50 further 800,712,27 be borne out of count, as I have previous pointed proposal thereon, I will interpolate Board at this date hold or represent, The Repairs and Renewals Aemitting to you the usual formal shares, which the members of your servo 33-1/3rd per cont, via-a-vis the year's working. As a large out, Buffered depletion during the reference to the purposes for which total 254,000. the capital of the Company is int portion of the aforementioned year to the extent of $48,707.33 and the further incelings to be held at fore considered the power to nomi Your Board, there vested in first class securities, funds were not remitted until to your approval is sought to replenish the conclusion of this meeting have nate an Alternate Director should
this account out of last year's probem convened.... wards the end of 1931, the saving fit so as to bring again the credit With regard to the proposed in the Board who hold in their own. be restricted to those mauvers 01: ia Bank Interest charges in Hong balance thereof to $100,000, crease in the authorised capital of right respectively not less than Kong, resultant upon thews trans-
the Company from $10,000,000 to 28,000 shares in the ab par, a stake | fers, will, not be wholly reflected in
$15,000,000, should the resolution iu the Company's Accounts until the
that respect, to be later submitted in the Company of B250,000, It "I am again in a position to com to you, be duly passed; it is pre-to make further comment on the |would appear unnecessary for me Alguras for the year 1932 are dealt ment upon continued popularity of posed to offer 200,000 of the now subject of the proposed additions to on the open market-your Board with.
the bus services operated by the shares et par to existing sharehold- the Company's Articles, having re directed to be made of certain Basis of Salary Payment..
Company. The additional patroners at the ratio of one new share shares out of the Company's last
age extended to such services dur to every five old shares held, such gard to the fact that, in the best With regard to the item of ing the year have produced a satia new aliares to be taken up by shareholders, the merits of the pro interests of the general body of two issues of Capital which had 881,127.07 appearing às a
factory increase in revenue from June 30, 1982.
As I previously mentioned, the parent. the two major routes of approxim
posed amendment aro obviously ap not been taken up by those holders for Commissions, as, on compariately (10 per cent.) ton per cent. Company's mortgage indebtedness of old shares entitled to apply for son with figures appearing under over last year's figures. Comparing stands at a figuro just "Just over
Dividends. them.
The capital hending in past years, this item the year 1931 with the year 1930, two million dollars.
I how formally propose that the Divorting your attention to the
Over 730,000 additional passengers which will accrue to the Company Report of the Directors and the contre side of the Profit and Lots may appear heavy, I would state, were carried on all roules last year from the proposed new issue will, account for the financial year end- Account, I would comment upon the in explanation, that a re-adjust on a reduced mileage of 12,000 therefore, bring this figure of ined December 31, 1931, as present Item-Rant Rates, Taxes andment of the basis of remuneration miles, Buch reduction in mileage ba debtedness down to a comparative ed, be adopted, and that the fol Licóuces" 8107,635.80 Compari-of a large number of the Coming attributable to the utilisation ly negligible quantity. son of this figure with the lika pany's staff is accountable for this, of larger dype buses over routes item in last year's accounts reveals During the year it was found ox during the rush hours. It is an in- a reduced expenditure this year of pedient to effect an alteration wo teroating fact that, since the incep- somo 340,444. This reduction is the basis of salary payments to tion of the Queen's Road route in accounted for by the fact that last Managers and heads of depart the Autumn of 1028, nome 13 mi Iestio of Shares, your Board have "Old" Shares, 8480,000; to pay a year's figures included a charge for monts in the Company's various lion passengers have been carried in mind the desirability of plac dividend of 30 cents per share on rental in respect of the Company's establishments. Under the amended over the route and since Januarying the Company in a position to 200,000 New Sharon; 300,000; tớ nancy of the MAJUNTO HOI, ATTAIKOMINYS He remuneration 3 million passengers over the undertake the Inance involved in tramater to Repairs and Renewals Shanghai, during the first quarter paid comprises a smaller basic University route. The figures for the necessary reconditioning and Account, 848,797.23; to carry for- of that year
salary to the employee, but is authe your under review total over development of certain of its pro ward to New Account, 8232,997.11 monted by a large percentage by 7 million passengers for all routes.parties without recourse, to secured and I shall be obliged if a shaze- way of commission on the working. "In spite of the increased revenue, borrowing.
holder will kindly second such, pro- results shown by respective dopant- however, you will readily compre|__The reconstruction of the Peak: posal, whereupon questions as to ments. Although the combined hond that the enhanced cost of Hotel, a matter brought up by a (Vontnued on Page 10.)
է:
Reduced Expenditure. Returning to the Profit and Loss Account, the sum of $24,216.20, crc dited "in respect of "Premium on Bhares," was realised from the sale
The not charge for Mortgage and Bank Intereat is, for the period un der review, 8145,000 lower than the commitment under that heading
charge
to
The Buses.
lowing appropriations recommend- Peak"Hotel Rasonstruction. ed by your Directors, as incorporat, ed in the Balance Sheet, be carried" In recommending the increase of into effect:-To pay a dividend of Capital proposed and the Now 60 cents per share on ,800,000
New Stock of
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