1922-08-31 — Page 4

DEWAR'S

"WHITE

LABEL"

SCOTCH WHISKY

still maintains its pre-war world-wide reputation- high quality-real age, and fine flavour.

Sole Agents:

A. S. WATSON & CO., LTD.

WINE AND SPIRIT MERCHANTS,

Alexandra Building. ·

Phone 616.

Ltd.

-Powell

TELEPHONE 3871

TROPICAL

"VIYELLA'S" LIGHTEST WEAVE,

"VIYELLA'

FLANNEL

CREAM ONLY

X

潴

QUALITY "T"

CREAM

PLAIN COLORS

FANCY STRIPES

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THE IDEAL FLANNEL FOR GARMENTS UNEQUALLED FOR SOFTNESS, LIGHTNESS AND DURABILITY.

SAMPLES WILLINGLY SENT UPON REQUEST.

THE CHINA MAIL.

Ignored it. Darwin does not ignore it. Science does not, however, for a fad, erect heredity to pre-eminence and minim za environmental effects. There people are prepared nay, they are openly doing it-to jettison Darwinianism and evolution. By their condust they prove their case, that brains are not progressing. It is not fair to take ench an extreme illustration, perhapa; but we believe the deterioration of human teeth is

so long as environment allowed it. It

CORRESPONDENCE.

NOTES ON TELEPHONE CONTROVERSY.

K

THURSDAY, AUGUST 31, 1922.

Part 3. Plant. No one blamen Mr. Parker Ness for sticking up for the obrolete magnato system which he infers is up-to-date enough for Hongkong. As a matter of fact the magneto system bad seen its best day in 1908 and about 1917 was discarded by Mr. Parker Nees' Company in Singapure for the Central Battery System and now they are being forced to exchange the Cen- tral Battery for the Aut matio in Bombay in common with the rest of the up-to-date world of England and America. Surely evin non experts can see this and resent Mr. Parker Ness evasin. It is no evidence merely to assert that Mr. Cook made fu'l prozivius for dej reciation. How it was cook. ed Mr. Parker Ness refuses to sell, ;- Porhaps no allowance was made for absolesconco,

Part 1. Paras 6 and 7. The assumption by the Committee that Mesurs. Cook and Cole's valuations apparently assume an extension of the licence seems to arouse Mr. Parker New in burit Mr: Parker Nese will prepare a 30th January, 1950 thu everybody will be much norested and none more now valuation of the plant on tus knowledge that the present licence expires

so than Mr. Parker Nets.

To the Editor of the. "China Mail,”)

BirThe reply of Mr. Parker Nean Vice-Chairman of the China and An argument that could be multiplied. Japan Telephone and Electric Co., Ltd., to the Joint Chambers of Commerce Environment produced good teeth. Telephone Committees report has been read with mixed feelings. Generally Heredity belped to perpetuate them, it is either personal or evasive.

It is easy for him to state that the report, discloses no good cause for is environment (dist, cooking etc.) continued postponement of the new licence for the very good reason that that has deteriorated them, itauss Mr. Parker Ness Company has a great deal to gain by a further concession to survive in the final analysis will be on practically speaking his own terms and merely a good profit for another old valued at over £12 each escape Alt. Parker No comment, No wonder The nasty example of (perhaps gilded and jewelled) stcol palco 10 years found fitness to adapt ourselves. even years if he merely relies on his present licence, finishing in January he can't produce truthful evidence. Much of the "deterioration" noted 1930. by "engenists" is really successful

A great point is made of Mears. Lowe, Bingham and Matthews' method Appendix 2 refutes the statement that there is no amount of de- adaptation to bad environment, to, as of arriving at a valuation, but as that firm were instructed to make a valuation preciation estimated as necessary for the new Company. Io is signed by Mr. a matter of fact, artificial environ regarding the value of the undertaking supposing the corners zolt outright Cook. mente created in the belief that they for cash and short termed debentures, it is incorrect for Mr. Parker Ness to A non export it seems one can fall into an error if a steel were improvements on nature. It is use their report to justify a sale under conditions which are diametrically telephone pule costing £14 has a - residuary or "scrap "value more practicable for roan to altar his opposite; ie, a sale to himself. What Mesra. Lowe, Bingham and of 40% (6.12/-) at the end of its physical life of 26 yests only an expert artificial environment than to change. Matthews' report did prove was that the Telephone monopoly was a can perhaps believe this and as to the other exemple Mr Parker Non gives-- nature; and it is in this direction that profitable baciness (orpecially during the Wa) and that the business storage batteries it is strange Mr. Cook works the depreciation at 11% and those desiring "progress" must spend had made a great deal more than the Company's accounts disclosed, because not 14% but that brings us to another story which can come later, selating their energies. A good begining Exchange losses (through the Company unfortunately demanding rates other to the question of valuation as a "guing concern," might be the extirpation of the then in i gallocal currency) had been heavy. Certain figures, relating to the Eugenists", by some wholesome 1919 cost of erecting a new plant of similar nature, were made up, but it was form of violence, as they appear to ↑ clearly stated that the information was arrived at from data obtained from be incurable by reason.

the Company and their consulting engineer, Mr. W. W. Cook. Mesars. Love, Bingbam and Matthews' declined to translate those ügures into a valuation of the actual plant in use without the aid of an expert telephonic engineer, and there the matter rests,—for when the experts arrived neither of them approached Mesara, Lowa, Bingham and Matthews but made up their own valuations which are not self explanatory.

HID IT IN HIS HAT.

SCAVENGER WHO STOLE

DETECTIVE'S WATCH.

The attack on Mr. Fletcher does the latter no discredit as it merely shows that, prior to the receipt of Messrs. Lowe, Bingham and Matthews report, he was endeavouring to negotiste on lower terms than Mr. Parker Neas was demanding. Mr. Parker Ness does not give Mr. Fletcher credit for refusing to bring the licence into line with the Singapore licence which gives the Com. pany the right to fix its own rates.

many

of

A

Part 1. Cl. 8. The disclosure of profits of £23,000 for 1921 in Hongkong. ursly knocks over the Company's contention that the increase in the rates is overdue-rather they should be reduced. The working costs during transi- tion to the sew aystem will be increased but will they of Bir. Parker Nos is an honest company Dirotor. Surdy he will see that the extra conta will ba paid for ost of the Reserve Fund he has built up to provide for obsolescence charges and if not really chargeable as such then why not as new capital expenditure. As no one usually page rent for a house during construction it seems absurd şi Mr. Parker Ness to ask for extra rentals on improvemente until they are usable and is distribe against bc. Cole appears merely to ba silly. At the Company's nominee it ie equity abaura to think that Mr. Cook would dreama suggesting such a thing.

Cl. 9. The Committee reported the Company were carning sufficient at a £10 rate ($73.35) in .321 to pay good dividends on the capital invested in the undertaking viz: £23,000 en £2,261 subjiet to Londoi Office expenses

roughly this is 25%.

on £280,000. There is an obvious miscalculation here as the rate per cent. Mr. Packer Ness now claims he only made £15,928 in 1921 equal to 2%

A Chinese defective charged a scavenger befora Tr. R. E. Liudecll

The Government Committee report of October 1921 advised a $120 rats to day with the theft al 5 o'clock this and Mr. Parker Ness' opinion that having no technical adviser available they morning of a watch and chain bolong-split the difference is probably not wide of the mark. It is a habit a good ing to him.

arbitrators employ when they try to get rid The detective said that he was on difficult decision and it is obvious that Mr. Parkor Ness' policy of 67 not 2%. Further Mr. Parker Ness ic gets that this £280,000 includes loan capital £42,500 the interest on which has already bess charged but duty in a sido street in West Point. "to reduction" helped to gain him this offer of such a high rate as $120. He took off bis coat and hung it on The two specialists invited Mr. Cole, of Shanghai, and Mr. W. W. asuming 7% gives £2975 this gives over 61% en £280,000 free of tax, quite the door of a house while he went into Cook, of London, ara next referred to and whilst the qualifications quoted different to 2%

As £260,000 is not admitted as the "capital necessarily employed in the back lane. When he returned, he of Mr. Cole (for the Government) are short those of Mr. i. W. Cook (for the found his watch and chain missing Company) occupy some space yet Mr. Parker Ness omits to state he is also rendering the service" the low percentages mentioned in the last paragraph from the top pocket of his permanent consulting Engineer for both the Oriental Telephone Co., Ltd., ate illusory.

CL 10. Mr. Parker Nass omia from his fist of Dividends the special coat, Recalling that a scavenger and the China and Japan Co., Ltd., who had already made from London an had passed the apot before he approximate valuation of the Plant in 1919 which is quoted in Messrs. Lowe, Bonus of £31,736, 2,-declared in 1916. As the average Hongkong profits for had gone into the lane, the detec- Bingham and Matthews' report. It is obvious the Company had in Mr. Cook the 10 years prior to 1914 were about £7,033 the sn il divites of 5% on tive suspected him, and going a most powerful advocate and expert valuer thoroughly conversant with its £14.761 is apt to give an erroneous idea of its prosperity between 1907 and up to the foreman ecavenger, asked sins and business who could be relied upon to exact the best possible price 1914. Before 1903 the Company fail to produce any accounts but ay they him to lead him to the man who was from the Company's point of view as the difference between the two valuations did not 'dectare.any dividend... Whether any profits were mads is no.. stated. working in that vicinity. The fore-implies. man took the detective to Des Vour

Road where he pointed out the defen

had

dant,

who

BO coat on, but was wearing a large bamboo hat, The detective took this off and the - watch and chain fell out from the

The China Mail.tools, man has lost his primal vigour.

"TRUTH, JUSTICE, PUBLIC MERVICE"

HONGKONG, THURSDAY, Aug. 3', 192),

ARRESTED BRAINS.

CTURE.

The defendant said that when ba He has progressed only in the use of passed the house, the detective was tools. What rratricted and regulated asleep in the doorway. He picked propagation might have done for him the watch and ch in from the ground.

asleep

- སྐ

With regard to method adopted for increasing the rates to 3140 and $154 exhibit 2 attached to Mr. Clo's report apparently it was decided that a capital of $3,000,000 (£375,000) allowing for Buildings and new plant must auffice which presumes the following:-

Per Mr. Cook Per Mr. Cole £210,000 163,000

£375,000

Bay out old Company.

New Capital for rebuilding and Plant

which necessitates expenses as follows :- 11% Divd to old Shareholdera $245,520 £30,690 (against in old Co., 12% on £40,000 Sh. Cap. Magistrate; Am you quite sure?-7% on £42,500 loans Yes. why should I be sleeping in the day time.

is guessed at only by Denn The detective denied that he was Inge and his like, and they are prejudiced and cranky guessers, speaking in the name of science very unscientifically. He sees things that really are as he seas them, bat "he | draws wrong conclusions from them.

He says -

Dean Ings in the Edinburgh Review says that from the time when man❘ began to be civilized he has progressed "We are thus faced with a pro-that he was sleeping.

gressiva deterioration of our stock,

Magistrate: It was still quite early, 5 o'clock.

The detective denied emphatically

Magistrate (toefendant): You

£279,000

90,000

£375,000.

It would be interesting to know if there were (prior to 1915) any other shareholders than the Oriental Telephone Co., and one other and wont price they were bought out at before the bigger dividends and huge bonus dividend of 1916 wa declared to the present holders. One

Mr. Parker Ness brinya in a now definition of the zebulous capital of· £280,000 by referring to it as the "tras" capital and argues that the rise in numbers of subscribers from a tɩw hundreds to 6740 makes the value of the telephone much greater to each subscriber. Unfortunately the eelvice bas detcriorated en it is questionablo whether even similar value is given

The Committee have shown that the present capital of $39,761 is the accretion of cach brought in lees dividende paid out on a 12% per annum Compound interest basis. Further profits of £66,000 are shewn by the Co. as put by to Reserve. If his reserve bad been capitalised as Mr. Parker £4,800 Ness apparently suggests it ought to have been, it could only have been done 2,975 by declaring £06,000 more Dividends and it would be interesting to see by —how much the 12% averag: had been exceeded or lowered. As a matter of £7,770 fact it is very doubtful whether this reserve of £66,000 can be capitalired legally in view of the fact that the eminent auditors of the the Company refuse to give a clean certificate as to the value of assets in view of the fact that proper depreciation has not has been rectified the been provided and therefore until this Reserva Fund £66,000 is as much a`nobulous quantity as the value of the plant (£115,000). A sale of the property would regularise this awkward pos ition and this is what Mr. Parker Ness is appareatly keen on particularly when market prices are high. To think Mr. Parker Nets as a Director and Barrister does not know of these facts is unbelievable.

41,250

8,1251 old Co. average 11.176 1,397) about £4,000 125,000 15,025 do. £ 600 270,000 33,750 old Co. 1921 £40,000

11% Divd, to new Shareholders 84,480

10,500

380,000

Reserve

65,000

Do. carry down Depreciation Working Expenses

@2/6

$901,176 £100,147

It does seem absurd of Hongkong to object to pay £250,000 for an old plant which would cont them £326,000 if new but Hongkong is mostly married To justify these Dividends Reserves and Warking Expenses the revenue and to buy, your wife a bat of an antiquated shaye even at $3.20 is not

no further. "His brain is no larger than it was 10,000 years ago." This due to the suspension of natural admit that the watch and chain wera oocore in an article on "Eugenica", selection, and the entire absence of found in your possession 7.-Tes, but and augeats to us that since the time anything like rational selection. The I did not steal them, when Dr. Inge began to dabble in evil has been greatly increased by the Magi-trate: You are convicted. science, say forty years ago, his stupidities of ignorant and unscienti Four weeks' hard labour. brain has grown no larger. Whst fic class-legislation. We are threaten- size does he want our brains to ated with something much worse thao: tain? If those we have are properly regression to healthy barbarism. used, the size is no handicap. It is We cannot find any comfort in the quite true to say that we are not yet argument that this modification of civilized; we have only begun to be, environment at the expense of naturs! and have made poor progress. It is endowment is in the line of evolution, quite true that in mere balk our and therefore not only inevitable but brains resemble those of primitive Beneficial, 'There is a way which man. But it is far from true seemetit right unto a man, but the that eugenics-the eugenics of the ends thereof are the ways of death,' Manners and Baokhouse L'd will be 2000 Private Brauch Er, 8/B Society to whith Dean Inge pream-So-called progress, which is a rare changed to John Manners and Co.

LOCAL AND GENERAL.

is worked out as following —

3334 Business Telephone Line @ 154 notified yesterday.

Another case of plagu was 1666 Residence

5000 From to-morrow the name of 1700 Extension

519,436

140

"

233,210

30

52,500 2,000

801,176

£100,147

Owing to the wet weather, the

The Revenue in 1931 @ 73.35

ably belonge can help the progress episode in human history, has before Ltdå.

of civilisation. The physical vigour now led a civilisation into a blind

£ 60,028

considered wins. To buy hers similar hat which bas been a good deal worn Even if it only costs $2.80 mesas courting disaster.

Ths China & Japan Telephone Company have made a contract for a £10 sale until 1930-they make money on this on the capital put in-they can't sell the Land Buildings and Plant until 1950 without breaking the contract and paying damages unless by favour of the Hongkong Government and the subscribers. Therefore until 1930 the value of the undertaking cannot be measured nor the capital involved realised. This favour must be paid for by the Company to the Subscribers and to expect the reverse is too much of a Parker Nexilan bluff. Therefore whether appreciation or depreciation in claimed in 1921 in immaterial nod unless additional revenue does not cover a fair rate on new capital put in the rates should not be increased Mr. Parker Nors says the "cost price," or the money invested" has rightly no place in arriving at "present valus" but if he will refer to some.re-

Part 2 01. 1 and 2 are not commented on by Mr. Parker Nosa,

Whilst the subscriber is promised's better service in exchange for pay-cent American legal decisions in his possession he will see there figures have ing 100% increase in rates it is obvious, from the foregoing that Mr. Farker some bearing on "rato making." Ness as the old Com any without putting in more capital draws £30,000 in for him. It is no wonder he backs the opinion of the "aperta." Dividends against about £7,775 as before which of course is very fine business 3

a. There is no denial of the fast that the existing Company will retai

its whole interest in the business but until a more reasonable contract is approved and signed it is absurd to talk of local Shareholders. Hong- kang is not Calcutts and no local Shareholder is likely to appear as a Director merely to be the sos pe goat for Mr. Parker Nosako

situation is talling nonsense. Frchange, contracts are necessary to the life of Hongkong and are regarded as sacred by all decent men. Ho has mads a contract to accept from sack customer £10 per annum for the next 71 yenis instead of $100 per annum and for him to calmly turn round and say its off I want. 3100 again (which at the moment is worth £12:10/-) is childish, unlew he compounds for what is known as the difference, Any banker or merchant will soon put him right on this quistion. This exchange loan in conting his Company more than $100,000

of mankind has deteriorated, says the alley, from which there is no escape. Swedish Minister of Education, Our tools have become our masters; V.RC. swimming fete arranged for quoted in the article. This also to all appearance we work for them, last night, had to be postponed auti seems to be trur; but eugenica is not and wet they for us. They ought to this evening. the answer. Eugenice, and the be merely our instruments for realis Eugenical Society, sro marely ing a good and healthy life; they ari provocations to make the really in fact the means of our degeneration Mr. B. B. Lindsell this morning with Two Chinese were charged before scientific thinker, as opposed to the Mechanism is morally neutral; it may faddiet dilettante, spit curses. This be turned to good or to bad ande; being stowaways on board the .. · In addition-Rezerves amount tó £9,500 against about £4,000 before De Swede, this Minister of Education, and it is character only which decides "Yeeyingwa." One of the defendants preciation and Working Expenses total £39,976 against about £40,000 for may be anybody. We do not know whether it shall be well or badly used who pleaded guilty, was sentenced to Horgkong and London Expenses in 1921. It must be explained that the who he is or what his attainments are That is all true enough, but why other who said that he, was working not admit this us correct. Soms part of the actual depreciation that took 8 b. For H. Parker Ness to state this has no relevance to the present three weeks'. hard labour, while the old Company practical'z ignored depreciation although their Auditors would Perhaps he is merely a politician or a bat eyes to the fact that natural panon. He talks like this:

selection is suspended by an unnatural on board for a relative, who was ill, place was provided by renewals charged as Working Expenses. There is s "With every appreciation of environment? Superstition has been was remanded for the police to make new system of accounts in vogue in Hongkong worked out on scientific lines what has been done in the d section big part of the environment further investigations to ascertain the by Mr. Cook which has for its affect throwing a certain portion of what is of improving the outward conditions the Dean's superstition and the truth of his story.

known as standing charges out of revenue into capital expenditure thus showing an apparently larger profit on Working. In part this extes profit ep open to the fact that no deci- dustrial environment has erected. Leang Wo who was found guilty is reduced afterwards by deprecation. There is nothing wrong in this theory. sire victory can be way there Make the environment good, and of the murder of M. Leung Yuk-tong, but so far it is too early to prove it it works out correctly in practica. menia only. We do not rely any good. heredity will follow.. Man of Mosaza: Task A. Tai and Company, Mr. Parker Nes justifies there doubled rates by stating they are lower Tomers on the affect of improved cannot go in for "stock breeding" on the Prays during the Chinese than rates authorised in India and elsewhere but recent advices from India conditions of environment. The socially on price cattle principles for Desmen's strike, was hanged in the and Rings are abow that whilst they have been authorised public opinions fact of the importance of heredity the simple reason that there is no Victoris Jall early yesterday morning, has been so roused by their injustios that is in questionable whether they for the continuation and improve trustworthy stock breeder to do it for folowing an unsuccessful attempt will he realised which is quite a different story. mans of the race is at last getting him. The State Ugh! Dean Ings made by his Counsel, Mr. F. C. The story how Mara. Cook & Cole explained the difference in their „renognition,”--

may be willing to undertake the job, Jenkin, to have the case referred to valuations to Mr. Fletcher may be correct but it is certainly curious that the Dean Inge takes that sa text; He, but are we likely to elect him! We the Privy Council. The prisoner went wording attributed to these gentleman is recorded in letters written by theat Implores the face of progress that think perhaps not.

to his death on this gallows with his same renkamen after they left the Colony and as the result of interro tai-made--and the|To itewverage reader who has uns, lipa sealed. He had protested his of our brains. He dergone no preparatory studios in this innocence throughout and maintained. the fact that man through direction, such arguments cannot be his attitude to the last, At az

time beslet very edifying. It is such đạm who inquest held later in the day the jar

ada tàturned the usual verdict after

of karaan life, one has had one's hideous economic bars that our in-

viromasent,

monkayed with will be misled by Dinn

indicating that scientiño claimaj Le which counts in

arryanding = himself with portants of

fedical evidence to the effent tát tha ezecution' knd: been, eserled

wtrict conformity.

was due to

000 which the

To say it is doubtful that the Company derive considerable benefit from an extension of thet franchise on favourable terms which enab e- them to End further employment for mach plant which might otherwire

1 so unlikely za to be untrus but it is orrtainly evasiva.

made on the remark that in is manifestly unfair to mak the blic to pay an exc vely high rate of return upon inflated values

These words are S