PUBLIC RECORD OFFICE
། ། ། ་
سلسليبيا
Reference :-
C.O. 882
way
29
of saying that the trade must leave the wharf were not the money expended and the improvements made.
tion.
As to wharves, too, the Company's position was not absolutely secure. A combi Possible nation of by no means a difficult character might have been developed by a conversion wharfage of the whole of the front between the Borneo Wharf and New Harbour and that competi- would form a serious competitor with the work now done at the Company's wharves. A portion of this work was strongly recommended by Mr. Matthews in 1901 and the project is being matured for execution forthwith. It is commonly believed that the Admiralty will construct works here and to this exfent the Company stand to lose work such as coaling warships.
As to recent years profits, the last 5 years have been those of exceptional trade and traffic, such as in the "Boxer" year when the Company's works were admittedly not fitted to deal with the demands then made upon them. It can, therefore, be fairly said that the earnings of these years could not be maintained on the present works.
It is to be remembered that under the present scale of charges the bulk of the Pro- wharfage revenue is derived from the cargo-handling and not from the ship itself: pective in other words it is "tons of cargo handled" and not " tonnage of ships berthed" cost of which determines the income of the Company. It will be pointed out that whereas upkeep. in the past the total cost to the Company has been principally made up of the labour which can be employed or not at will, and in a minor degree of interest on the cheap wharf, with the new wharf, interest charges will run whether a ship comes alongside or not. Say, interest on $7,400,000 at 5 per cent. which would work out to $370,000 per annum for interest only, without allowing anything for maintainence and depre- ciation which cannot be neglected.
There is, however, the old wharf still to do battle with for 5 to 15 years and that with the call for continuous repairs and timber at a higher price than ever. The wharf is being examined from end to end in detail and the condition of each pile will be minutely reported upon. This examination will extend to New Harbour. It New will be noted that the new scheme does not provide for any re-construction at New Harbour. Harbour. In fact that portion of the Company's property is not shown on the plan accompanying the report or referred to therein except as to graving docks in para- graph 18.
wharf.
It will be pointed out that the new wharf will be 500 feet (or one ship) less Pros in length than the old one: this owing to the necessity for leaving an entrance to pective lest the new wet dock.
length of It will also be pointed out that before taking a net profit for capitalization the Jardine's expenditure on, and income of, the wharves should be reduced in proportion to that wharf. length of the wharf which is known as Jardine's Wharf, the lease of which to the Company is about to expire, as pointed out in the history.
The demolition of the existing wharf would involve that of the godowns stand- Loss ing on or near it (see the plan accompanying Appendix N). Not many of the exist- dunng pro- ing godowns would remain unaffected. This also would appear to tell upon the posed re- value of things as they now stand.
We can also point out that the confusion attending the construction and re- construction works extending over a period of 15 years must be allowed for: not only in respect of an increase of the prospective working expenses, but by a very considerable loss of revenue during the repairs. For instance, there will be quite a long period when the new entrance will be under construction, and the space not available for berthing ships and no accommodation in the new docks.
Reference will also be necessary to the stoppage of the proposed extension to the east wharf (vide paragraph 78 of Appendix N.). Here, again, the Company would appear not to have been carrying on as required by Section 5 of the Ordinance. The shareholders were informed that the cost of this work was coming out of the
revenue.
construc-
tion works.
The new and large scheme advocated by this report (Appendix N.) will require Other con examination, and consideration of an extended nature. It will be necessary to siderations.
11693r
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8 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO