THE HONGKONG · TELEGRAPH.
HOTEL COMPANY'S
REDUCED BANK OVERDRAFT
LIABILITIES LOWER BY OVER SIX LAKHS
CHAIRMAN'S
4
WEDNESDAY, APRIL 11, 1934.
STRONGER POSITION
this relation it is very satisfactory several reductions in experion September,..1930.
that even this result has only been
to
concerned.
appears an item for the transfer KINSHAN LEAVES
to Exchange Fluctuation Account
of $100,000. This ON SCHEDULE
of the sum recommendation is not intended to cover dealings in exchange by the shows that the Company policy parts in question and thus facilitate in re-wiring work in connection Company or anything of that NO INTERFERENCE BY
but to make provision in embarking upon the expending the disposal thereof by quick with the electric light and power nature,
UNION installation at the Hongkong Hotel against contingencies rendered ture attaching to the exten-sale in bulk at reduced prices.
On turning to the debit side of which was necessary in order to possible by the fact that the alvo alterations
renewals And
Despite the rumour prevalent In respect of the first floor and the Profit and Loss Account, and comply with the requirements of assets and liabilities pertaining to ground floor departments carried comparing ang with the same the Hongkong Electric Co., Ltd. the Company's Shanghat Branch yesterday that the s.. Kinahan by the have been converted at par for would be prevented from sailing but in 1931 was fully justified. In Account for 1932, you will notice under Regulations made
in tho Governor-In-Council on the 9th inclusion.
Company's this morning, the vessel luft Can- General Accounts, This trans-Lon at her schedule time for Hong- to note that, despite the additional which tend to offset the
You will doubtless which it had to face of the Working Account credit, and
noto with fer of $100,000 is recommended kong. competition
Directors upon tho during 1933, the Hongkong Hotel, although further evidence of the satisfaction the further reduction by your
According to reports which up- the genesis of our chain of establish current depression is shown in the effected during the year in rela-advice of the Company's Auditors ments, contributed returna Inst provision End and Doubtful Debts, tion to our indebtedness to the in view of the appreciable varia-peared in a Canton newspaper year showing a marked increase-some $6,000 more than I respect Bank-the outstanding indebted- tion in the currency exchange be- yesterday, serious developments December 31, 1930, tween the two Porta na at the date were expected to-day. The news- over the results obtained in that of 1532 being reserved last yearness on establishment In 1942.
nevertheless the remaining Items being $873,982.82 06 compared of the balance shoot.
paper report, stated that an ulti- matum had been served on thu Unfortunately, owing to the ad-shew a satisfactory decrease, chief with $1,095,070.48 at December. FUTURE PROSPECTS,
Macao Hongkong, Canton and which are Insurance ap 31, 1932. verse conditions I have previously among mentioned our general revenue proximately, $60,000; bank interest,
Wih regard to trading prospects Steamboat Co. by the Union de CURRENT LIABILITIES. ECONOMY PROGRAMME
during 1933 suffered heavy curtail- $43,000; maintenance and repairs,
for the current year, I may state manding the re-instatement of Touching the foregoing state- that, to date, business generally Captain E. W. Matthews as master Adverse trading conditions during the past year ment, and on reference to the credit $27,000; and depreciation $65,000.
Alde of the Profit and Loss Account
INSURANCE DECREASE. mont, favourable notice may be has been maintained to approxi-jof the Kinahan within three days. were commented upon by Mr. J. Scott Harston when you will observe that this is re-
therein. With regard to the insurance de-directed to the reduction in the mately last year's standard. with Should no satisfactory answer be period, A strike would presiding at the annual general meeting of the Hong-flected by a diminution in the main
item, brought to
last age. Prospects for the coming hat
are however ventuate, debit of approximately $32.000 year. A comparison of the balance summer months
That an ultimatum was over kong and Shanghai Hotels, Ltd., this morning. None namely Balance of Working Ac-crease, the figure for 1932 included made during the fat Company a slight increase in tourist patron- forthcoming by the expiration of
respect of the War Biskt, In-sheets 48 at December 31, dimcult to foreshadow, although the less, it was reported that the Hongkong Hotel en-count-the figure $848,693.66 ap joyed greatly increased patronage, which is still con-paring tely three lakhs iess than surance effected on our Shanghai 1992, and 1933, respectively re- reports from our friends the clivered is, donted by the Com the creult under that heading for properties during the Sino-Japanese veals the following position in re- Steamship Companies and over any, and it is hope that the
clash in that port that year. No intion to current liabilities. At acas Travel Bureaux are imbued matter will be amicably settled. tinuing.
A steady reduction in the Bank overdraft was re-1932. This is undoubtedly a scri-such item appears for 1933, and December 31, 1983, the bank over with a degree of optimism which,
liability to sundry
creditors eronse in travel likely to redound LOCAL COMPANIES ported, whilst present forward commitments stand at a fous decrease, but I would emphasise am pleased to state that a redue- draft ($1,095,070.48) plus the if realised, would presage an in-
our properties and stccks win lower figure than for many years, and steps have been obtained by rigid adherence to the tion in the tariff rates applicable
SUMMONED At the 31st December, 1933, ments. 66. taken to keep overhead costs and unproductive expendi-measures of economy which were introduced at the beginning of the ($966,624.07) totalled $2,060,694. to the advantage of our establish-
at the beginning of the
In conclusion, I desire to record ture down to a minimum.
İyear, and to which I referred at year by the Insurance Companies the bank overdraft stood at $873,-
Tht satisfactory decrease in Bank 982.82 and the indebtedness to the thanks due to the various mem- Interest reflects the steady reduc sundry creditors at $391,104.60, an bers of the Company's staff who, IMPROPERLY STAMPED The policy of the Board in not paying a dividend, in the last annual meeting. BUS SERVICES.
tion of our bank overdraft during "ggregate amount of $1,266,147.42, though greatly reduced in number,
DOCUMENTS representing a reduction in cur-have, during a year of difflculty, view of prevailing conditions, was endorsed by the Hon.
Continuing my comments upon the year.
year loyally co-operated in maintain- Mr. J. P. Braga In the course of a speech in which he
the credit side of the Proft and The decrease in the total amount ront Habilities during the
The Sincere Company was eum- 1933 amounting to $795,547.13. Of ing the Company's business at its moned before Mr. Hamilton, at the referred to the vitality of the Company.
Long Account, I would refer to the in respect of depreciation app of the funds requisite to effect this customary standard of efficiency. Central Magistracy this morning tom Surplus on, disposal of Bus priation is due to the disposal of Department Assets" brought in at the Bus Department assets already reduction, the proceeds of the sale
of our Bus Department assets pro- I now formally propose that the on two counts of having executed REVIEW OF ACTIVITIES the sure ist annum) meeting that depreciation on 20 vehicles duced 3354.478.74-the remainder report of the Directors and the receipts to Chun Cheung for sums
of the last 29 date negotiations between the Company ceased for a period of over six $441,068.39 being met out of sur accounts for the financial year of $23.65 and $23.05 which wor
plus revenue from. Working nc-ended 31st December, 1933, 18 improperly stamped. and the successful tenderers for the months.
presented, be adopted, and that Detective Sergeant Gould gaid Dealing with the balance sheet, count. more than by his former colleagues licence to operate the bus trans-
In addition to contributing to the following appropriations recom-the Company had six previous In this Company,
port services on the Island were I would explain that with a view
with the reduction of current liabili-mended by your Directora, as in-convictions for the same offence. in train for "the acqusition by te providing shareholders
A representative of the Company Mr. J. Scott Haraton, moving the
tenderers of our vehicles, etc., in full information, that document ties, surplus revenue from Work- corporated in the balance sheet, use. up to the 11th June, 1933-the has been drawn up in a forming Account supplied funda to be carried into effect:-To Trans-pleaded guilty and a fine of $20 adoption of the report and state-
M. Y. San and Company were ment of accounts, said:-Gentle
With regard to the report and date whereon our permit to operate which, in addition to embodying finance the capital expenditure fer to Exchange Fluctuation Ac-on each summons was imposed."
Those negotiations requirements Imposed by the Com. detailed in the balance sheet count, $100,000, carry forward to men.-The raport of your Diree-
revenue $288,239.30; and I shall be obliged lar offences. tors and statement of accounts for accounts under review to-day, terminated,
ended De- regret to have to state that no were unexpectedly protracted, but panles Ordinance 1932, constitutes, amounting to $209.914.07, that is New Account, $188,299.30; total, summoned in respect of two simi- the financial year
The first summons was that they cember 31, 1933, having been in better trading conditions were ex-eventually our fleet of 29 Vulcan as you will observe, a considerable to say, surplus working
finance capital expenditure and re-second such proposal, whereupon your hands for the prescribed perienced during the period cover buses, together with certain spare amplification of the balance sheets utilised during the year 1933 to if some Shareholder will kindly
duce current liabilities amounted question as to the report and had executed a promissory note to Jone Li Yuk-yee for a sum of $440 period, I will, with your permission ed by such Accounts than those parts and accessories, was trans- previously presented."
Rccounts may be raised. VARIATION IN "ASSETS" to $650,982,46,
which was improperly stamped, follow the usual procedure and obtaining during the previous ferred to the successful tenderers
ENORMOUS VITALITY. and another promissory note to one treat them as read.
year: Unfortunately, the candi-Jon the 11th June last.
had to For the purpose of the negotia-
MORE LIQUID POSITION. With regard to the variation in
Li Hon-ping, which was improperly. Before proceeding to report upon tions under which we
tions in question, the valuation an-
appearing
Although profits on a desirable Seconding the adoption of the stamped. the affairs of your Company for operate in Hongkong were much essed upon those vehicles had as the "Assets" items
than
Mr. C. Lowe, of Dennys & Com agreed basis a life of seventherein, I may inform you the past Ananefai year, I desire to less favourable last year refer with profound regret to the thone in respect of the year 1932 years, wherene in the Company's generally speaking, depreciation level have not been made during report and accounts, the Hon. Mr.
Returns from our Shanghal es ecent death of a very old and esteemed resident of the Colony, tablishments during the year con- books, depreciation had been writ- has been written off "Assets" at the year under review, I think you 3. P. Braga stated that when he pany, appearing for the Company. of the capital value of the the same rates as hitherto in re will agree that appreciable fur- came to the meeting he was not pleaded not guilty. Hearing of Mr. R. G. Showan, who in the thued on the slight upward trend vehicles upon the basis of a five gard to the adequacy of which Ither progress has been made to prepared to address any remarks, the case was fixed for April 19 at
refer shareholders to the warde presenting to you at the but after hearing the chairman's 11.15 am. years life. In consequence, the would
of the trading period aexhaustive review of the Com- course of his long and active busl- to which I referred at the inst
several annual meeting, but our Hongkong residual value ascertained upon ap special reserves for "Land and end carcer here,
of the above-mentioned Bulldings" and "Depreciation," ap-balance sheet displaying a more pany's position during the past eccasions, as a Director of this establishments, although maintain-plication Company, devoted his time and ing their percentage of room oc-
that our present forward com- were concerned, no fear need be energy to He affairs. Some eight cupancy up to the level of that of seven years' basis of deprelation bearing on the contra side of the quid position than previously. In year he felt he was Eonstra past
of the amount of the ru-$3,318,349.14. years have passed since the Inst the pervious rear, only did so resulted in a valuation figure in balance sheet, and aggregating that relation I would inform you to say, so far as the shareholders As to the various items of mitments stands at a far lower entertained regarding the enor
Sir Elly Kadoorie was re-elected rates excess
of the concern sidual value appearing in the Com- occasion upon which Mr. Shewan at considerably reduced served as a member of our Direc. Transient tourist business during pany's books at the date of transfer. "Additions" during the year those figure than for many years, and mous vitality torate, but we none the less retain the year failed to record any ap which accounts in main for the pertaining to buildings-$36,850.39 that steps have been taken to keep taking into consideration the re-director of the Company on the capitalised expenditure overhead costs and unproductive putation the Hongkong and Shang-motion of Mr. F. Austin, seconded
by Lieut. Col. M. H. Logan, vivid memories of his capable, preciable increase, and, generally surplus of $127,986.16 appearing in cover
Messrs Percy Smith, Seth and sponding the Profit and Los Account.
lounges and nurseries expenditure to a minimum amount. hai Hotels enjoyed. new on apeaking. restricted
Hotel, Your Directors extremely regret assistance with equal admiration
Repulse Bay
It was undeniable, he said, that Fleming were re-elected Auditors nt the for the outstanding merit of his power was noticeably prevalent
GARAGE DEPARTMENT.' the first floor verandah canopy, a their inability to recommend the if the Board of Directors could at the usual remuneration, on the of Mr. H.J.M. do advice during the various periods among those whose patronage benc
Although many spare parts andį pump house, and cafe kitchen ex- declaration of a dividend in rea-have seen their way clear to re- proposal
pect of the past year's working, commend a dividend in these hard Figueiredo, seconded by Mr. J. J. when he held office as a Director of fitted our establishments--a „factor
tension at the Peninsula Hotel. our Company, and in recording our which of course proved detrimental deep regret at his passing. I feel to our revenue front "restaurant accessories were transferred to the The items of additions-to-fur- but in their opinion the times times, shareholders. would have.Cameron. The motion included_
successful tenderers, our Garage Department had to retain in stock niture and Fixtures and Linen, through which we are passing cm-been pleased, but considering the the sanction of the payment of that I am giving expression to the departments. Unanimous feelings of the Com-
an appreciable quantity of spare etc. I would describe as routine phasise the necessity for conser- very serious trade depression $2,000 for extra work done during
was the year. parts applicable to buses, In respect additions to Hotel's equipment, in ving resources to the utmost ex- through which the world
view of the depressed pany's shareholders.
I wish also to refer to the recent
Those present were Mr. J. Scott In dealing with the state of of which transfer to the successful regard to which it should be noted tent. In
generally prevailing sing in particular this part of world which seemed to feel and the dearth of the particular the tail-end of that depres- Hurston (chairman), Messrs W. departure from the Colony on affairs obtaining at the Hongkong tenders could not be compelled, that the figures given cover addi- conditions
H. Bell and E. M. Raymond however, strike aand future use thereof had neces- tions for six Establishments.
class of business upon which our Mion, he could unly retirement of Mr. Allan Cameron, Hotel, I can, who had been a member of this happier note. Always a popular sarily to be deferred owing to the
profits on a major scale depend, with the decision of the Board (directors), Mr. J. H. Taggart Company's Board since the year rendezvous, that establishment restricted scope of our Transporta-
it is submitted that the result of which must have been taken only (managing director), Mr. P. H. 1926, and who at all times gave enjoyed greatly increased patron tion Department. Accordingly, it
enreful deliberation. Suckling (general manager) Mr. rest assured, how-F. C. Harry (accretary), Hon. Mr. of his best in the Company's age last year, the improvement in was deemed prudent to utilise $27.
the year's working with the Profit after very
J. P. Braga, Lisut. Col. M. H. interest. Mr.
that their intercate Cameron's genial business thereat accelerating to an 986.16 of the surplus previously
and Loss Account balance on the rhey could
Logan, Messrs T P Parsons, to for the purpose of
right side represents a position ever, presence will be sadly missed by a extent
now producing referred
H. J. M. de Figueiredo, J. J. large circle of friends, but by none revenue upon a scale which writing down the value of the spare
which can, in the circumstances, extremely well served. be regarded with feelings not en-
The Chairman: thank you Cameron, G. HL Potts, Lo Kal tingly devoid of satisfaction.
wing, G. C. Moxon, K. C. Mark, and F. Austin.
neas
CHAIRMAN'S SPEECH.
on
ADVERSE TRADING
CONDITIONS.
A HAPPIER NOTE.
that
JOIN THE
is
ten
Kayser
PROCESSION IT'S Smarter
AYSID
BARE LEGS
• Romance has come back! Glamour has returned So, smart women everywhere are slipping into Kayser stockings. Thoir soft sheen, their subtle linos, their enchanting colours are so much more alluring than bare logs. Women are delighted with the change.
AT ALL THE BETTER.SHOPS
*TRADE MARK
that,
A VITAL NECESSITY. The additions to machinery and plant relate to the installation of spare boller at the Repulse Bay Hotel and a similar item at the Astor House Hotel, Shanghai, plus expenditure in connection with a pipe fine and pumping apparatus for conducting sea water to the Peninsula Hotel for flushing and refrigeration purposes. This last item of expenditure was vitally necessary in order to overcome the serious inconvenience experienced In the past during dry seasons in relation to the flushing facilities and refrigeration at the Peninsula Hotel with its 250 guests' rooms.
With regard to the Item "Motor Cars Coaches and Trucks, my previous remarks have explained the sales and depreciation in- volved. The additions totalling, 800,349 cover the acquisition of five Bedford buses for the Inter- Hotel Service, Hongkong to Re- pulse Bay, and the provision of six new passenger cars for the motor hire service which were necessarY to replace that number of vehicles of old model withdrawn.
ut u
STOCK DECREASE. Stocks of stores stand grently decreased ßgure this year; this decrease, amounting to some $172,000, being attributable to the disposal of the Garage Department spares, accessories, etc., previous- ly referred to.
The shares in our subsidiary des Company, the Grand Hotel Wagons-Lita, Ltd., have been in- eluded in the balance sheet at cost; concerning which i think the last published balance sheet of that. Company as at the 30th Jano; 1933, (which has been circulated to you by way of supplementary informa tion with the report and accounts of this Company) shows the equity of that basis of Inclusion.
Passing to the liabilities-de- talled in the balance sheet, you will observe that the "Repairs and Renewals" Account has sufforod dóplotion by. $6,001.30, which ro presents the expenditure incurred
coneur
were
In the appropriation recommend- very much for your kind remarks, ed for your consideration to-day Mr. Braga.
The motion was adopted.
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