HONG KONG DAILY PRESS, THURSDAY, APRIL
COMPANY
1934.
MEETINGS
Hong Kong And Shanghai Hotels
CHAIRMAN REVIEWS A DIFFICULT
YEAR: PROSPECTS BETTER
Surplus On Disposal Of Buses
Presiding at the annual general meeting of the Hongkong and Shanghai Hotels Limited, Mr. J. Scott Harston in the course of his review of the year said that transient tourist busi- ness during the year failed to record any appreciable increase, and generally speaking, restricted spending power was notice- ably prevalent among those whose
the patronage benefitted Company's establishments.
Supporting the Chairman were Mr. E. M. Raymond, Mr. J. H. Taggart and Mr. W. H. Bell (Directors), Mr. P. H. Suck- ling (General Manager) and Mr. F. C. Barry (Secretary). The following shareholders were also present:-The Hon. Mr. J. P. Braga, and Messrs, T. R. Parsons, H.J.M. de "Figueiredo, J, J. Cameron, G. H. Potts, Lo Kal Wing, G, C; Maxon, K. C. Mark, "F. Austin and L-Col. M. H. Logan."
The Bus Service Continuing my comments the credit side of the Profit and
upon
ا
the Bus Department Assets al- ready, referred to, the result where- of was that depreciation on 29 ve- hicles ceased for a period of over six months.
The Balance Sheet Dealing with the Balance Sheet, I would explain that with a view to providing Shareholders with full information, that document has been drawn up in a form which, in addition to embodying require- ments imposed by the Companies Ordinance 1932, constitutes, as you will observe, a considerable ampli- Scation of the Balance Sheets pre- viously presented.
With regard to the variations in the "Assets” items appearing therein. I may inform you that, generally speaking. Depreciation has been written off "Assets" at the same rates as hitherto in regard to the adequacy of which I would refer Shareholders to the Special Reserves for "Land and Buildings" and "Depreciation." appearing on the contra alde of the Balance. Sheet, and aggregating $3,318,349 - 14.
INDO-CHINA STEAM NAVIGATION CO., LTD.
SUBSTANTIAL DECREASE IN PROFITS REPORTED
Chairman Reviews Conditions
In China
1i
A substantial decrease in profits was reported by the Hon. Mr. J. J. Paterson, the Chairman, at the fifty-third ordinary annual meeting of the Indo-China Steam Navigation Co., Ltd. held at the board room of Messrs. Jardine, Matheson & Co.. Ltd. yesterday.
The reasons for the decline, said the Chairman. were partly, due to the world depression but largely because of politics! in- security and tariff increases.
Chairman's Speech
old and esteemed resident of the Loss Account, would refer to the Colony. Mr. R. G. Shewan, who in item "Surplus on disposal of Bus the course of his long and active Department Assets" brought in at that the figures given cover addi- opened under fairly satisfactory 'vance in' Chinese Customs Duties business career here, on several the net figure of $100,000. At the occasions, as a Director of this date of the last annual meeting Company, devoted his time and negotiations between the Company energy to its affairs. Some eight and the successful tenderers for years have passed since the last the licence to operate the" bus occasion upon which Mr. Shewan transport services on the
Island
Flushing Facilities
Mr.. Scott Harston said: appearing in respect whereof is Gentlemen.
approximately three lakhs less The Report of your Directors than the credit under that head- and Statement of Accounts foring for 1932. This is undoubtedly the financial year ended 31st a serious decrease, but I would
As to the various Items of "Ad- December, 1933, having been in emphasise that even this result ditions" during the year, those your hands for the prescribed has only been obtained by rigid | pertaining to Buildings, $36,850.39-
Addressirig the meeting the
Unmanifested 'Cargo period. I will with your permis- adherence to the measures of cover capitalised expenditure on chairman said:-
At our last annual meeting, I sion follow the usual procedure economy" which were introduced at new Lounges and Nurseries' at the
Gentlemen:-When I addressed referred to the helpful spirit of and treat them as read.
the beginning of the year, and to Repulse Bay Hotel, the First Floor Before proceeding to report which I referred at the last An-Verandah Canopy, a Pump House. you from this Chair last year I co-operation shown by the local upon the affairs of your Company | nual Meeting.
and Cafe Kitchen extension at the expressed the hope that Share-Government in introducing the for the past Anancial year, 1
Peninsula Hotel,
holders would gain some con- Importation and Exportation, Ordi- desire to refer with profound re-
The items of additions to "Fur-solation from the fact that our nance, 1932, under which proceed- Ings could be taken against the gret to the recent death of a very
niture and Fixtures and Linen, recent losses had been diminish- additions to Hotels equipment, is I am unable to say the same on This is another word for smuggling etc." I would describe as routine ing progressively. Unfortunately. Owners of Unmanifested. Cargo, regard to which it should be noted
this occasion, for though 1933 which has increased with each ad-
ions for six Establishments.
conditions it did not full these until to-day it is a menace fac- early promises and the year closed tng every Shipowner in the Får
Plant relate to the installation of The additions to Machinery and
with a profit on the working of East. I am not aware how far the steamers of £29,836.15.02. as smuggling. depletes the Revenues a spare boller at the Repulse Bay compared with one of £97,208.2.44. of the Country' but it must be very Hotel and Similar item at the in the previous year. The reasons considerable. Responsible Com- torate, but we none the less re- by such tenderers of our vehicles, expenditure in connection with a served as a member of our Direc-were in train for the acquisition Astor House Hotel, Shanghal, plus; for this decline in our fortunes panies are doing their utmost to tain vivid memories of his capable, etc. in use up to the 11th June, pipe line and pumping apparatus of trade in China declined in com- but until China is prepared to are not far to seek. The volume control this evil on their steamers assistance with equal admiration 1933-the date whereon our per- for conducting sea water
to the parlson with 1931 and 1932 due tackle the culprits, direct smug- for the outstanding merit of his mit to operate terminated. Those Peninsula Hotel for flushing and partly perhaps to world depres- gling will go on unabated. So far, "advice during "the various periods negotiations when he held office as a Director protracted, but eventually our fleet item of expenditure was, vitally tical
unexpectedly refrigeration purposes. This last sinn, but largely because of poli- the fines inflicted under the Hong of our Company, and in recording of 29 Vulcan buses together with necessary in
insecurity and tariff - Kong Ordinance have not proved order to "overcome creases. The past year has been a deterrent and it would seem our deep regret at his passing, certain spare parts and accessor- the serious inconvenience exper- gioomy and while I sense a better astonishing how promptly these Tes was transferred to the success-fenced in the past during dry feeling at Home, yet I feel the are paid were it not known that ful tenderers on the 11th June
seasons in relation to the mushing | bottom of our Far Eastern depres- the fines are met by the Organisa- last. I wish also to refer to the recent For the purpose of the negotia- Peninsula Hotel with its 230. guests'
facilities and refrigeration, at the sion may not yet be reached. tions responsible for the amag- departure from the Colony on ions in question, the
Chins has benefitted by low silver, gling. valuation retirement. of Mr. Allan Cameron, assessed upon those vehicles
rooms.
but at the same time political in- had who had been a member of this as its agreed basis a life of seven Cars, Coaches, and Trucks," my creasing
With regard to the Item "Mator stability is having a dire and in- Company's Board since the year years, whereas in the Company's previous remarks have explained taxation destroy the purchasing effect. This and high 1926, and who, at all times, gave books. Depreciation had been writ- of his best in the
the Sales and Depreciation invol-power of the individual and with Company's Ten off the capital value of the ved. The additions totalling $60,- it China's domestic trade on which interests. Mr. Cameron's genial vehicles upon the basis of a ve 349 cover the acquisition of 5 Bed- we so largely depend. There is no presence will be sadly missed by years life. In consequence, a large circle of friends, but by residual value ascertained upon Service. Hong Kong to Repulse commercial
the ford Buses for the Inter-Hotel doubt, however, of the Immense none more than by his former application of the above mention-Bay, and the provision of six new Country which are recognised not possibilties of this colleagues in this Company.
ed seven years basis of deprecia-passenger cars for the Motor Hire only by the Government of China The Year's Business
tion resulted in a valuation figure Service which were necessary With regard to the Report and in excess of the amount of the place that number of vehicles of to seek new markets for their own but by those Governments anxious Accounts under review to-day. I residual value. appearing in the old model withdrawn.
productions, and with the will on regret to have to state that no Company's books at the date of better
bath sides" to tap these resources trading conditions were transfer, which accounts in the experienced
the outlook can be hopeful, during the period main for the surplus of $127,986.16 covered by such Accounts than appearing in the Profit and Loss those obtaining during the pre- Account. vious year. Unfortunately, the conditions under which we had
I feel that I am giving expression to the unanimous feelings of the Company's "Shareholders.
11
to
were
The Garage
accessories were transferred to successful tenderers,
our
N
to
Some Other Items Stocks of Stores stand at a greatly decreased figure this year; this decrease amounting to some $172,000 being attributable to the disposal of the Garage Department spares, accessories, etc. previously referred to,
Government to encourage domes-
Tribute to Stan Your Directors are pleased to
casualty in the Fleet and I feel report, the absence of any major
yourselves with them in paying a sure you will wish to associate tribute to the Floating Staff. It is also a pleasure to record again afloat and ashare, in all economy the loyal co-operation of the Staff matters which continues to eng~ age the closest attention of the Directors and the General Man- Agers. The Company also enjoyed immunity from Piracy though I regret to say one of its chartered steamers suffered this fate in a minor way since the close of the,
year
His Majesty's Navy lives up to its reputation of the Silent Service and behind the scenes it continues to give every assistance to British Shipping on the Coast
The Steamers
The Chartering Market
During the year under review, shipowners found the chartering operate in Hong Kong were Although many spare parts and
market a difficult and exacting much less favourable last year the
one. Merchants in the Rice, and The Shares in our subsidiary Coal Trades to China had to face than those in respect of the year Garage Department had to retain Company, the Grand Hotel des the unfavourable plastre exchange and Rivers, for which I acknow- 1932. Returns from our Shanghai In stock an appreciable quantity Wagons-Lits, Ltd. have been in Establishments during the year of "spare parts applicable to buses.. cluded in the Balance Sheet at and new levies by the Nanking ledge our grateful thanks, continued on the slight upward in respect of which transfer to the cost, concerning which I think the tie trading which should ultimate- trend to which I referred at the successful tenderers could not be last published Balance Sheet of ly be to the benent of the Com- Last Annual Meeting. but our
that Company as at the 30th June, Hong Kong Establishments, al- compelled; and future use there-
of had necessarily to be deferred 1933, which has been circulated to pany's Yangtze and Coastal Ser- though maintaining their percent-
vices. ! age of room occupancy up to the owing to the restricted scope of you by way of supplementary in- our Transportation Department. formation with the Report and level of that of the previous year. Accordingly, it was deemed prud- Accounts of this Company) shews ent to utilise $27,986.16 of the sur- the equity of that basis of inclu- plus previously referred to for the sion." purpose of writing down the value of the spare parts in question and
only did so at considerably reduc- ed rates. Transient tourist busi- ness during the year falled to re- cord any appreciable increase, and, generally speaking, restricted spending power was noticeably prevalent among those whose pa- tronage benefitted our Establish- ments a factor which of
note,
popu-
"
The Liabilities ⠀⠀
From Northern
to
As the Report of the Directors states the old hulk "Mel Naim was sold and replaced by a new pontoon-hulk to maintain our Southern landing and shipping facilities on ports our regular Lines were fairly the Yangtze at a high state of well supported as far as volume emciency. The "Changwo" which goes, but the year witnessed the had reached the venerable age of cursion of newcomers and to 42 years, was also disposed of, and Passing to the liabilities detalled maintain our position in these replaced to some extent by two thus facilitating the disposal in the Balance Sheet, you will ob- Trades rates had to be reduced. bulk-oil Ughters which were laid thereof by quick sale in bulk at serve that the "Repairs and Re-Return Voyages were up to aver-down last year and delivered re- newals Account has suffered de- age and competition was not so cently To complete our receiving reduced prices...
Profit And Loss
pletion by $5,981.30, which repre- much tyevidence.
arrangments for wood of a small course On turning to the debit side of sents the expenditure incurred in proved detrimental to our Revenue the Profit and Loss Account, and re-wiring work in connection with occurred on the Yangtze for the which will be installed shortly at The greatest decline in business pontoon was also contracted for from Restaurant departments.
Hongkong Hotel
comparing same with the same the electric light and power in- In dealing with the state of Account for 1932, van will notice stallation at the Hongkong Hotel reasons already given and com-Chungking Turning to the list of will notice the inclusion of the affairs obtaining at the Hongkong several reductions in expenditure which was necessary in order to petition there was at its worst as the Company's Fleet, Shareholders
in the previous year when I com- Hotel. I
can, however, strike a which tend to offset the diminu- comply with the requirements of mented on the senseless rate cut-Hsin Changwo." This is not a happier
Always
tion of the Working Account cre the Hongkong Electric Co., Ltd.
of the Kingwo" to satisfy the lar rendezvous, that Establish- dit, and although further evidence under Regulations made by the ting by people who ought to realize new vessel, merely the renaming Chinese susceptiblities of our ment enjoyed greatly increased of the current depression is shown Governor-in-Council on the 9th: the futility of this policy.
India-Japan Service
supporters following a run of bad patronage last year-the improve-in the provision Bad and Doubtful September, 1930.
You will doubtless note with sa- ment in business thereat accelerat Debts, some $6,000 more than in
The India-Japan Service showed luck on the Upper River. While ing to an extent that is now pro- respect of 1932 being record last tisfaction the further reduction ducing revenue
a slight Improvement over the she was laid up last year the op- remaining effected during the year in rela- upon & scale year-nevertheless the
her stern and to install two wood- which shews that the Company's Items shew a satisfactory decrease tion. to our indebtedness to the previous year as trade between portunity was taken to reconstruct policy in embarking upon the ex-chlef among which are Insurance Bank-the outstanding indebted these two Countries, and at inter- penditure attaching to the exten- approximately $60,000, Bank Inter-ness on the 31st December, 1933, mediate ports, revived somewhat of tanks, both of which have sive alterations and renewals in est $43,000. Maintenance and Re- being $873,982.82 as compared with and with the rise in commodity proved successful. Several steam- respect of the First and Ground pairs $27.000 and Depreciation $1,095,070.48 at the 31st December, prices of Malaya's chief exports ers in the Service are nearing the
$55,000.00.
It is hoped that the Straits Gov-economical level through old Floor Departments, carried out in 1931 was fully justified In this
War Itisk
Touching the foregoing state- erriment will relax its immigration age and your Directors are giving relation it is very satisfactory to With regard to the Insurancement, favourable notice may be restrictions which would assist our the matter their careful thought. In the meantime the charters of note that despite the additional decrease, the figure for 1932 in-directed to the reduction in the Deck Passenger Earnings.
Although there were, and still the three steamers I have referred competition which it had to face. cluded a debit of approximately Current Liabilities of the Company. during 1933, the Hongkong Hotel, $32,000 in respect of the War Risk made during the last financial ure, clouds on the political horizon to from time to time were ex- the genesis of oud, chain of Estab-Insurance effected on our Shanglial year. A comparison of the Bal- of the Pacific, as well as the usual tended
Silver lishments, contributed returns last Properties during the Sino-Japan-ance Sheets as at the 31st Decem- civil wars within the borders of year shewing a marked increase ese clash in that Port that year. ber, 1932, and 1933, respectively re- China, these latter did not affect You may expect to hear some- over the results obtained at that No such item appears for 1933, veals the following position in re- the actual running of our steamers thing about silver and how it Establishment in 1932,
and I am pleased to state that alation to Current Liabilities. At sc much as in recent years and affects the Company. It is a sub- Adverse Conditions" reduction in the tariff rates appli- the 31st December, 1932, the Bank they were permitted to operate inject I approach with considerable I think that many Unfortunately, owing to the ad- cable to our properties and stocks Overdraft ($1,095,070.28) plus the comparative peace while Native hesitation
to "Sundry Creditors Merchants faced upheavals and persons thoughts on liver are verse conditions I have previous was introduced at the beginning Lability ly mentioned, our gerieral revenue of the year by the Insurance Com- ($885,624.07) totalled 82,680 804.55. monetary crises with their cus- selfish, perhaps I lay myself open At the 81st December, 1933, the tomary stoicism. Indeed, if I may to that accusation for people are during 1933 suffered heavy curtail-panies, concerned.
The satisfactory decrease in Bank Overdraft stood at $873,982.- be allowed to digress, I should like apt very reasonably to see the ment, and on reference to the cre- dit side of the Prout and Loss Ac Bank Interest reflects the steady and the indebtedness to Sundry to compliment them on their question as it affects not perhaps Count you will observe that this is reduction of our Bank Overdraft Creditors at $391,164.60, an aggre courage and recuperative powers their own interests but those of gate amount of $1,265,147.42, repre- in times of adversity. To them their Corporations, or State, or reflected by a diminution in the during the year A
The decrease in the total amount senting a reduction in Current, and our foreign Shippers I offer Country. For example it is logical main item brought to credit there-
the Company's thanks for their in namely "Balance of Working in respect of Depreciation appre-
continued support..
(Continued on Page 12.) Account" the figure $848,593.50 priation is due to the disposal of
1932.
(Continued, on Page 11)
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have just been unpacked.
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Specialists in Gentlemen's Wear
9, Queen's Road Central.
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