1932-03-18 — Page 7

FRIDAY, MARCH 18, 1932.

Company Meeting.

HONG KONG & S'HAI HOTELS

SATISFACTORY YEAR REPORTED

BIG

OI FER FOR SHANGHAI PROPERTIES TURNED DOWN

CAPITAL INCREASE OF $5,000,000.

Alternative Directors.

CHAIRMAN'S REPORT.

the sub-

THE CHINA MAIL

Adequate. Depreciation. You will note that the past year's

year.

Aa

the sum

Columbia

RECORDS

Process

A New Standard of Realism

5 FAMOUS OVERTURES

Grenadier Guards Band.

DX308-Zampa DX155-Tancredl

B.B.C. Military. Bond, DX77-Crown Diamonds Sir Dan Godfrey's Orch.

9769-Mignon

Milan Sym Orch. 9496-Pique Dame ................... Sir Dan Godfrey's Orch.

"

THE ANDERSON MUSIC CO., LTD.

Ice Horse Street.

Tel. 21322.

GENUINE REDUCTION

ON IMPORTED CIGARETTES

Ardath Cork

10'a pkt. $0.20

dee. Lin

.0.46

50's tin

1.00

"

n

State Express 333 777 Greys Plain or Corp tipped Greys, Large

50's tim

1.00

50's tin

90

50's tin

.80

50's 'tin

1.30

Sarony Plain or `Cork tipped. Check Royal

Bus tin

80

50's tim

.89

Black & White

50'a tin

1.40

50's tin

.50

TABAQUERIA FILIPINA

Asiatic Building.

salary payments to Managers and preciated value of the local currency, without recourse to secured bor- heads of departments in the Comi prevailing during the major portion rowing. pany's various establishments. of the year, coupled with the high

The Peat Hotel, Under the amended arrangementa prices ruling for gasoline and the The reconstruction of the Peak the remuneration paid comprises a Government . Taxation imposed Hotel, a matter brought up by a smaller basic salary to the employee, thereon, rendered it difficult to pro-Shareholder at the last annual but is augmented by a larger per-duce a profit on working, having meeting, is under consideration. centage by way of commission on regard to the fact that no increase In this connection I may add that the working results shown by re-in fares was sought. Successful it is highly improbable that a com spective departments. Although exploitation by the Company of all plete scheme of reconstruction will the combined charges in the Com-possible avenues for effecting be undertake at this juncture, pany's Accounts in respect of such economies in operation during the having regard to the fact that this payments to the personnel involved year has enabled this side of would necessitate A shews no material increase, the ap- the Company's

complete activities to evacuation of the existing building! portionment aa, between "salary" contribute а profit to the involving a total loss of revenue and "commission" reveals a much (General Working Account for 1931 covering a period estimated con- heavier charge under the latter, which, in the circumstances, can be servatively at two years, whilst it heading. It is proposed in future considered highly satisfactory. A Is highly improbable whether a | accounts to charge the whole of reduction in gasoline prices since modern establishment-incorporat- such remuneration against the Gen- the beginning of this year, combin-ing the essentials of an up-to-date eral Working Accounts and confine ed with a reduction applicable to Hotel and entailing the heayy the Profit and Loss Account iter of the cost of tyres and other equip-capital outlay attaching to such a "Commissions" solely to administra-ment, renders more favourable the project-would attract the volume tive payments which miay occur operating prospects of the current of patronage and degree of spend under this heading.

ling power, in what is essentially, a - Diesel Type Engines. residential ares, necessary in order Another satisfactory year's working of the Hong Kong and

foreshadowed last year, to make the venture a success Shanghai Hotels, Ltd., was reported by Mr. J. H. Taggart, the Accounts disclose the provision of serious consideration has been flaancially; rather is your Board Chairman of the Board of Directors, at the ordinary yearly meeting adequate depreciation, before com- given to the utilisation of the Diesel inclined to the view that Improve- of the Company, which was held in the Exchange Building this putation of the figure of profits be-type engine in the Company's ments can be effected to the exist morning.

fore you for allocation, and I would vehicles. From the progress made ing establishment as opportunity The Chairman announced in the course of his report that the point out that, in addition, a con- in experimental work during the permits with a resulting degree of Company had refused an offer of six and a half million dollars for siderable part of the work effected year a decision resulted to convert modernization commensurate with their Shanghai properties. This fact was favourably commented in maintaining and modernising the one of our buses from petrol to oil the extremely reasonable rates upon by the Hon. Sir Henry Pollock, K.C., who seconded the adopt. Company's assets has been borne out fuel with a Crossley diesel type charged the latter factor being tion of the report and accounts, and by Chev. J. M, Alves who said of revenue. You will observe that engine. As may have been observ-the prime attraction of that Hotel. that he was optimistic as to the future prosperity of Shanghai and the Proft and Loss Account includes ed from recent reports in the Local

Happy Valley Garage. the value of their properties there would increase considerably in expenditure amounting to $187,- Press, this vehicle was inspected Consideration must shortly bel a few years' time, especially as a 22-storeyed building was now be-872.22 the year in relation to this. by the Police last month and pass-given, however, to a scheme for the ing constructed in the vicinity of their Astor House,

Further, out of the balance stand-ed all tests satisfactorily. Since extension and development of the At an extraordinary meeting which followed, resolutions were ing to the credit of Repairs and that data the converted vehicle has Happy Valley Garage property, as passed relating to the increase of the Capital of the Company from Renewals Account at the beginning been in regular service and has the facilities there suffer increas- $10,000,000 to $15,000,000; and to alteration of the Articles of As of the year, $48,797.25 has been functioned most satisfactorily. In ing restriction in view of the con- sociation to permit of the appointment of Alternative Directors to absorbed in relation to the cost of the circumstances, steps are now tinued improved business ex- act during the absence or illness of any Director. A confirmatory part of the improvements effected being taken to effect similar con- perienced in the transportation de meeting will be held on April 4 for the purpose of confirming these to the Ground and First Floor areas version to the other vehicles which, partment.

of the Hong resolutions and pass them as special resolutions.

Kong Hotel notion completion, should bring about. Further requirements in connec- capitalised.

a very considerable saving in fuel tion with the Company's properties The Assets.

coata, a further factor tending to in Shanghai must not be lost sight In reviewing the Assets side of increase prospects with regard to of. The Astor House and Falace the Balance Sheet, there would ap-the future operation of this Depart Hotels there continue to produce The Chairman said:-

Shanghai, during the first quarter pear to be no outstanding feature ment.

un adequate return upon the Com- Dealing with the Profit and Loss | of that year.

upon which to comment, for the

Big Carry Forward.

pany's investment in those pro- Account, I am.pleased to be able to · Mortgage & Bank Interest. application of the depreciation pro-

With regard to

FEDERAL of perties, but consideration' must) call your attention to

The nett charge for Mortgage and vision accounts, in most instances, $202,097.11 out of the balance of sooner or later be devoted to the stantial increase in amount, com- Bank Interest is, for the period for differences disclosed when com- Profit & Loss Account, which your raconstruction of one or both of pared with the previous year, of under review, $145,000-lower than paring respective figures of assets Directors recommend be carried those establishments. Your the "Balance of Working Account." the commitment under that heading with those appearing in last year's forward to the New Account: as Board's faith in the high values brought to credit in the sum of during the preceding year. The accounts, with one exception, this figure may appear to the minds attaching to both of the properties $1,760,383.45. The preceding year's incidence of transfer from Shang- the item "Building," which this of some Shareholders to be unduly in question continues to be justified working produced $1,206,439.85 hai during the year of the sale pro-year is recorded at a sum of $150,- high, I would say that, at the time notwithstanding the disturbed con- under this heading, and the increase ceeds of the Majestic Hotel Property 000 higher than appeared last year. your Directors Report and recom-ditions in the Northern port, and of $453,944, displayed this year which stood to the Company's credit This increase represents mainly the mendations were formulated, the I think it well to mention, in view should, I feel, evoke satisfaction, there-funds to which I made re- capitalised portion of the expendi situation at Shanghai appeared of the various rumours current having regard to the fact that ference at the last Annual Meeting ture on the improvements carried operations over

sufficiently uncertain and grave as from time to time with regard to financial and the receipt of some $2,000,000 out to the Hong Kong Hotel Buil-to promote a certain degree of ap- this Company disposing of its year did not embody a normal in respect of the New Issue of ding in reconstructing the Ground, volume of transient tourist patron Shares made on July 1 last, con- Floor and the First Floor areas. prospects of our two establishments offer to purchase the Astor House

prehension with regard to the Shanghai, interests, that a age, due to the somewhat stringent tributed mainly to this considerable Whilst on this subject, I can report in that port for the current year and Palace Hoteis, and contents for financial conditions which prevailed saving in Interest.

that the completion of this work, The desirability appeared indicated H.K.88,600,000 was refused by the Never- in Europe and the U.S.A.

which brought into productive theless your establishments both in

I would here make reference to operation a hitherto dead area and possible detrimental influences on

of conserving resources against the Board during last year.

Alteration of Articles, Hong Kong and Shanghai experi- the item of 390,712.27 "Loss on Ex-fulfilled the long apparent necessity enced business during the year of a change" borne by last year's Profit of improving

operation, a lengthy continuance of Turning to the second Resolution the Grill Room, the disturbed conditions might pro-to be placed before you at a subae- volume sufficient to enable Hotels, and Loss Account. At the Annual Restaurant and Lounge facilities of! without exception, to provide the General Meeting held in April, 1930, the Hong Kong Hotel, produced an in the Northern Port your Board is in regard to the alterations to mote. At the time of the first clash quent meeting this morning, which General Working Accounts with a Shareholders, in dealing with an immediate increase in business, auf deemed it advisable to effect War the Company's Articles of Associa much increased quota of profit. propriations of profit made in re-ficiently gratifying in volume to per-Risk Insurance covering the Shang-tion and for which your sanction financial year 1929, mit an optimistic outlook with rehat properties, and this was effect. Is bought, these amendments, if adopted the Board's recommendation gard to maintaining, out that $160,000-out of the balance at earnings produced from the recen- February at a cost, for both the fication to situations of Incon of the ed in respect of the month of passed, will effect necessary recti- this income has been derived from credit of Profit and Loss Account be structed property, an adequate re-Astor House and Palace Hotels, of venience which have arisen in the the Company's holding of shares in

"Exchange turn upon the expenditure made in the Grand Hotel des Wagons-Lits, Fluctuation Account" with a view to respect of such work.

some $35,000. During the earlier past, in the conduct of the Com-i Limited, and, in a measure, reflects effecting porvision for losses on ex-

term of the disturbed times, the pany's affairs, Liabilities. the period of better business experi- change involved in making remit

situation, more particularly in view Up to the present time Directors,; enced by that Company in Peiping, I tances from Shanghai to Hong of the Balance Sheet, you will ob- Hotel to the most seriously affect-arily, either resign from the Board With regard to the Liabilities side of the proximity of the Astor House when leaving the Colony tempor- which I ventured to foreshadow Kong, having regard to the fluctuat serve that the Authorised Capital ed area, in your Board's opinion, or apply for leave of absence. In from the Chair last year. It will

ing cross doubtless prove of interest to share Taels and Hong Kong Dollars. Dur-stands completely leaued.

rate between Shanghai of the Company, $10,000,000, now fully warranted the precautionary consequence, over many periods in holders to learn that the Granding the year under review the ex-

insurance measure undertaken. As the past, the Company's business Hotel des Wagons-Lits, Ltd.-in change position between the North-which,

Loans secured by Mortgage, later, however, the venue of the has perforce had to be controlled

at December 31 which concern your Company is a

ern Port and Hong Kong rendered amounted to $2,009,046,17, have further removed from the Interna-bership.

last, more dangerous clashes became by a Board very restricted in mem- holding Company to the extent of

difficult the transfer of funds stand-been 95 per cent. of the issued capital ing to the credit of the Company in experienced by the Company during not to renew the Insurance cover In the circumstances it is deemed

reduced to the lowest level tional Settlement, it was decided

Alternate Directors. thereof was enabled during the

Shanghal It was deemed advis-the past twelve years. financial period ending June 30,able, however, to take advantage of

and same was permitted to lapse as essential that steps be taken to 1981, not only to retire completely opportunities which arose during count, as I have previously pointed. There do not appear to be fur- order to provide for the appoint

The Repairs and Renewals Ac-at the end of February.

alter the Articles of Association in through Its own resources the the year, when the trend of ex-out, suffered depletion during the ther matters arising from a review ment. of alternate Directors, but it Debenture Issue amounting to change inclined T231,000, but was also in a posi- favourably, to make transfers, as your approval is sought to replenish usefully comment, but before sub-terests of the Company that the comparatively year to the extent of $48,797.23 and of the Accounts upon which I can is considered to be in the best in- tion to effect a distribution of 10 the Immediate actual saving in this account out of last year's profit mitting to you the usual formal right to be vested in a Director of per cent. on its ordinary capital. Furthermore, the financial position, consequential reduction of our in- balance thereof to $100,000.

Interest payments effected by the so as to bring again the credit proposal thereon, I will interpolate nominating another in his stead at the aforementioned. date WEB

reference to the purposes for which during temporary absence[be] debtedness to the Bank in Hong such that, apart from being freed Kong out-weighed the Book losa

Bus Services.

the further meetings to be held at restricted to Directors holding a of all debt, a reserve had been built such transfers involved. Transfer- ment upon continued popularity of bees convened.

I am again in a position to com-the conclusion of this meeting have material stake in the Company. up of the equivalent of 50 per cent.ence of approximately 88 lakhs of the Bus Services operated by the Increase of Capital.

The Shares, which the members of of the paid up capital and of such Dollars from Shanghai to Hong Company. The additional patron- With regard to the proposed in- represent, total 254,000. Your your Board at this date hold or reserve 33-1/3rd per cent. vis-a-vis Kong was made during the last the capital of the Company is in financial year.

age extended to such services dur-crease in the Authorised Capital of Board, therefore, considered the The Book loss in ing the year have produced a satis- the Company from $10,000,000 to power to nominata an Alternate vested in first class securities,

volved on these transactions absorb factory increase in revenue from the $15,000,000, should the Resolution Director, should be restricted to THREE STAR Premium on Shares.

necessitated, in addition, that a fur (10 per cent) ten per cent over last mitted to you, be duly passed, it is hold in their own right respective- ed the reserve of $150,000 and two major routes of approximately in that respect, to be later sub- those members of the Board who Account, the sam of $24,215.80, ther 390,712.27 be borne out of the years figures, Comparing the year proposed to offer 200,000 of the ly pat less then 25,000 shares in credited in respect of "Premium on year's working As a large 1991. with the year 1980, over, 780,- New Sharts at per to existing the Company, or, at par, a stakeʻin Shares," was realised from the sales portion of the aforementioned funds 000 additional passengers were car-Shareholders at the ratio of one the Company of $250,000. It would ou the open market--your Board were not remitted until towards the ried on all routes last year on a re- New Share to every five old Shares appear unnecessary for me to make directed to be made of certain end of 1981 the saving in Bank duced mileage of 12,000 miles, such held, auch New Shares to be taken further comment on the subject of shares out of the Company's last Interest charges in Hong-Kong, re-reduction in mileage being attribut-up by June 30, 1982. two issues of Capital which had not sultant upon these transfers, will able to the utilisation of larger type As I previously mentioned, the pany's Articles, having regard to V.V.E.S.O. P.

the proposed additions to the Com- not be wholly reflected in the Com- buses over routes during the rush Company Mortgage, Indebtedness the fact that in the best, interests pany's Accounts until the 6gures for hours. It is an Interesting fact stands at a figure just over Two

the last

Dividend Or investments.

With regard to the item of $38,

705.47, "Dividend on Investments,"

Returning to the Profit and Loss

bean taken up by those holders of

od shlares entitled to apply for

them.

Diverting your attention to the contra side of the Profit and Loss Account, I would comment upon the Item Rent, Rabes, Taxes and. Licences $167,635,86, Compari son of this figure with the Hike item in last year's accounts ervesis a

expenditure some: $40,000;

Loss on Exchange.

apect of the

transferred to

ап

the year 1982 are dealt with that, since the inception of the Million Dollars. The Capital which hold

the

With regard to the item of $61, of 1928, some 134 million passeng the proposed New Issue will, there **** Charge for Commissions Queen's Road route in the Antumn will accrue to the Company from amendment 127.07 appearing as a charge for ers have been carried over that fore bring this

Commissions, 48, on

with figures appearing unde

heading in appos

rison route, and since Jant

that million passenger

The

ure of indebted

comparatively Rep

agligible quantity

firm

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