a)
132
case showed a higher percentage of profits obtained from their rates as extant on the 31st day of July 1948 of more than 20% nett
profits (with full occupancy) per annum on capital, thus, to quote
an extract from one analysis :-
11
Return on Capital In view of the short term of the
"business, namely four years, it is maintained that a return on "capital should be at least 15% to 20%. The capital invested is " $140,000.00 and the adjusted profit as shown in Schedule I gives
11 a return of 19.97%. It is therefore maintained that this
"profit is not unreasonable for a business of this description
** and therefore there is no case to answer for a reduction in
"the room rentals now charged."
The average nett profit on capital for all hotels was 12/14% per annum, with some cases showing a nett profit on capital of 8% per
annum.
14.
After examination of accounts and inquiry by questionnaire,
Counsel for the Association was given by the Hotels Advisory
Committee a short ex parte hearing limited by the Committee to
three-quarters of an hour and the Hotels Residents Association was
given a similarly short ex parte hearing, neither being present
when the other was heard.
15.
Thereafter, the Hotels Advisory Committee visited a number
of Hotels and inspected various rooms and furnishings and on the
30th day of December 1948 the said Committee published a report
as per copy attached to Schedule "C" hereof.
16. It will be noted that the Committee in this report classified
hotels under 4 headings :-
(a) The first consisting of the four main European Hotels,
the first three of which are being run by the Hong Kong
& Shanghai Hotels Limited, one of Your Petitioners;
(b) The second as "Residential Hotels";
(c) The third as "Chinese Operated Foreign Type Hotels"; and
18.
Amè