1936-05-27 — Page 9

H.K. And Shanghai

DIFFICULT TRADING

CONDITIONS

STORM WEATHERED LOCALLY

THE CHINA MAIL, WEDNESDAY, MAY 27, 1936

Hotels

and carpets for Hong Kong - tablishments.

**Turning to the Liabilities side of the Balance Sheet, you will see. that the Special Repairs and Re- newals Reserve' has suffered de- pletion during the year by $10,-| 952.41. This relates mainly to

Difficult trading conditions in the hotel business, especially special expenditure incurred in in the Northern pòrts, were reported by Mr. J. H. Taggart, Chair painting the whole of the exterior man of the Hong Kong and Shanghai Hotels Ltd., at the annual of the Hong Kong Hotel, and to general meeting of the Company this morning. The Com-rewiring in connection with the pany's local properties weathered the storm better than those in electrical installation of certain of the north, and the Chairman was able to announce a substantial four establishments in order to reduction of over $165,000, effected during the past year. in the conform to the requirements

of Company's mortgage indebtedness.

Government regulations.

**The Balance Sheet reveals one

The special reconstruction scheme, involving a reduction in capital and which, it is hoped, will effect a speedy return to a divi- dend-paying status by the Company, was also referred to at length in the Chairman's speech.

ati

*****

直正路

Foreign Consuls in Canton attended a special ceremony in connec- tion with the recent death of Mr. Ha Han-min, the veteran Kuomin- tang leader, last Monday. (Far Easterà Pictorial Correspondents).

record land have been adjusted so as to Com low those attained uurias previous at the lowest figure on

comment.

I

your

to

HONG KONG SINGERS

BACH-PARRY RECITAL

ST. JOHN'S CATHEDRAL

THURSDAY, May 28th, at 9.15 p.m.

J. ANDERSON MILLER : LINDSAY A. LAFFORD.

PEKING EMBROIDERY

FRESH

HOUSE

SALE

FROM 20% TO 50% OFF.

SHIPMENTS OF COSTUME JEWELLERY, BEAUTIFUL PEKING GLASS WARE. CLOISONNE WARE, ETC. JUST UNPACKED.

TAKE THE ADVANTAGE OF THIS REAL BARGAIN !!!

Opposite Star Ferry, Kowloon

MAN LOONG

Preserved Ginger and Fruit Manufacturers.

NEW SEASON PRESERVED GINGER. Best Quality-Prompt attention to Exporters. Office and factory-Bedford Rd, Tai Kok Tsui, Fowloon

Tel. No. 57088.

"As indicated in my circular saving in

be depreciation will letter, the aim of the reconstruc-effected if you adopt and sane tion proposals submitted for your tion these proposals, and as a re- solitary casis in the midst of what consideration is to write down all sult thereof the Company should assets to figures which represent return to a dividend-paying basis you may consider my

FIRST ANNIVERSARY somewhat

their real worth as assets depen-much earlier than would other- depressing remarks. I refer

dent upon their earning capacity-wise be the case. to the reduction of the Company's To achieve this it is proposed to Company will be placed in a more

Moreover, your Two Weeks From May 25th to June 7th. Mr. J. H. Taggart was in results of the Autumn and Wi-Mortgage indebtedness effected the chair and was supported by ter trading. The high value of during the year.

write off from Book Values as at mobile position to embark apo THE ENTIRE STOCK IS OFFERED AT SPECIAL DISCOUNTS You Mr. J. Scott-Harston. Mr. E. M.the local dollar during the Sum-serve that the gure under. that scheduled in the

December 31, 1935. the amounts disposal and/or reconstruction

circular before and Raymond. Mr. Lawrence, Ka-mer of 1935, coupled with the at-heading in the Balance Sheet be-

development of certain} doorie. representing Sir Elly traction of low currency values at fore you

you amounting to $9.856.737.34. It is $239,469.61. which is proposed to effect this. (1) by Reverting to the business for

assets. Kadoorie, K.BE Com. Lex-North China and Japan resorts compares favourably with a Mort writing up the Book Values of this meeting. I now formally pro-| Hon.. Hon. Mr.-M. K. Lo (Direc-which prevailed ris-a-vis Hongcage liability of $454.896.83 tors), Mr. R. H. Wadeson (re-Kong currency, had the effect of December 31, 1934. I feel that the $550,980.16; (2) by transferring tors and

and as at Demember 31, 1935, by pose that the Report of the Direc- presenting the Company's Soli-completely eliminating the Sum-reduction made during the year Reserves as listed in the circular financial year ended December 31, the Accounts for the citors, Messrs. Deacons), Mr. Smer tourist patronage customarily 1995 of approximately $155.000 is totalling $5,315,349.14; and (3) 1935, as Hampden Ross (representing received at ur establishments in gratifying in the circumstances, by cancelling Capital to the ex-and that, as recommended by your presented, be adopted, the Company's auditors. Messrs the Colony during that season.

as also is the fact that the intent of $2.50 Percy Smith. Seth and Flem "In view of the foregoing, I re-debtedness of your undertaking available on the 1.190,867 shares of the Proft and

per share, making Directors, the balance at credit ing). Mr. P. H. Suckling (Gen-gret that the Profit and Loss Ac-has been further reduced since the issued $2,984.667.50-

Loss Account, eral Manager) and Mr. F. Ccount before you delineates poor turn of the year and now stands The book figures relating to forward to next year's Ac amounting to $342,001.65, be car- Barry (Secretary). Sir Robert working results substantially be Lo Tung. Kt.. LL.D., Leg. Hon. was an absentee.

years, notwithstanding the fact covering the past 50 years.

bring land valuations to amonats count, and I shall be obliged if

Shareholder Some

will kindly The following shareholders that the

Reconstruction Scheme

which in the opinion of items of contra charge: were also present:

Isecond such proposal, whereupon consider there are Board conform more nearly "I do not were reduced to the lowest limit)

questions as to the Report and Messrs. Johann Semmler. He compatible with prudent and other fems in the Balance Sheet present-day values, having regard Accounts may be raised." Wing Tim, Wat Kwing Tongficient operation. Leung Kan Fat. C. J. Triggs of credit-Palance

The main item and Accounts upon which I can to location and to potential earn-

Seconder's Speech usefully

would.ing capacity. The net result is an Working of

In seconding the adoption of Fong Yuk Shan, W. J. Simpson.Account'$430,375.55. falls below however, crave your attention for increase in the book value of landi L. D. Fernandes. B. L. Kwan. the similar credit for the previous few minutes in relation to the by- $550,980.16.

the Report and Accounts Mr.)

Tsui Tim. Ho Hong Ping. Chu Hing To, S. E. Green.

"I should state that the scheme Frank Austin said:— year by some $270.000. The item proposals which will come up for Poon

**In rising to second your Wing Fook. A. Eddy. E. Grivaud, ilarly reveals a considerable

Rents of Shops and Offices sim-your consideration at the Extra- I have referred to bears the re-

de-ordinary General Meeting to be commendation of your Beard by motion. Mr. Chairman. I feel that during the past year in the Com-be put before you to-day hold the C. Pfister, C. A. Kaluzhny,

promise of a much better solution Tang Yat Cho, W. L. McKenzie,

crease of some $33,000-vacancies, held later to-day, with regard to majority of five to two. The dis-I can safely put it to you as the pany's mortgage indebtedness.

"If I may be permitted to refer of the Company's present diffi- Yeung Man Hoi, Lai Chan. Lam and reductions made to tenants on the scheme for reconstruction of sentient Directors hold the view general opinion of this meeting,

Scheme (culties. I trust that the Special the Balance Sheet of the Company that the complete writing off of that we much appreciate the very to the Reconstruction Kim Yue. Leung Tsz Ko. Lee rentals, enforced this diminution.

in the which the Directors submit for Resolution, to be put at the next. Wing Hee. Chan Sui Lan, Lam "A welcome re-entry to the cre-by the utilisation of certain re-all Reserves appearing in the full information given

our consideration to-day, I would meeting, providing for the Capital Man, Lai Sho. Pun Kwan Tok,

dit ef Profit and Loss Account this serves and by cancelling capital Balance Sheet would in present address you have just delivered.

"We know that it has been the say that on first hearing of these cancellation involved in the Chan Sui Fai, Chui Miu Chi, Aar is the item Dividend on in-to the extent of $2.50 per Share. circumstance be suficient, and/or

$13,867.48. This

"In my circular letter address that the Capital should not be re-unpleasant duty of many Chair-proposals my views were that it scheme, will receive your K. Dimond, W. J. Burling, W. vestment'

under date‡duced before the Reserves were men who have presided at annual would be preferable merely to approval.

It appears to me that V. Field. Leung King Ting. Ulates to the dividend distributioned to Shareholders

meetings of our local companies propriate the Reserves now stand-the Directors are advocating wise the April 27 last, a copy of which is first eliminated. 31. Omar, C. C. Chai. Tang Pok of our subsidiary Company.

Absolute Necessity

to emphasise ing in the Balance Sheet for the measures, and making a worthy Yat. Ho King. Wai Man Lok, Grand Hotel des Wagons Lits.in your hands, I stated that your

the financial stringency of these purpose of writing down the value attempt to get down to bedrock, Fung Yam Leung, Loo Oai Thim. Ltd. on a holding of 5,651 shares Directors had given serious con-

"In substantiating the opinion times, and the difficulties met with of the Company's fixed assets, T. C. T. Beck, To Shing Chung, in that Company. The last issuedjsideration to the present financial of the majority of the Directors

(Continued on Page 12) in consequence. All things con- without touching the capital. I Lai Yun Kau, Wong Chee Hoi, Balance Sheet of the subsidiary position of the Company.

embodied in the scheme for sidered. I feel there is cause for put these views before our Chair- entailed E. O. Murphy, E. H. Watts, J. Company, as at June 30, 1935, is consideration has

the your consideration, I submit that

that this congratulation Bagram, A.

com- man, who very kindly gave me Dransfield.attached to the Report and Ac-earnest

of your it is an absolute necessity that

In attempting to alight from Frank Austin, Cheung Ching counts before you, in which rela- Directors over a lengthy period. certain Reserves should be main-pany has weathered the difficulties fuller details, upon which the lorry No. 4115 while it was still Reconstruction Scheme was based. in motion at Ma Tau-wei yester- Wing. Yu Choi Leung, A. G.tion I am pleased to be able to "During the past few years-tained, and in this relation would of the year 1935 so well.

"It seems to me also that con-

Better Solution Piovanelli. D. Tollan, J. P.state that the hotel in Peiping years in respect of which the point out in the

day, Choi Kau, a coolie, was se- first place that

satisfaction siderable

can be

"After giving careful considera-verely injured and died soon after a the scheme calls for the retention Sherry J. J. Edgar, J. F.eperated by the subsidiary Com-trading results have enabled

to the Government Wright, Jr. H. J. Armstrong, pany enjoyed much improved re-dividend distribution to share of $550,000.00 as a Land Reserve, derived from the substantial re-tion to this faller information, admission M. H. Lo. A. W. Brown. P. `M. {venue during its last accounting holders and also years which have which sum represents the accreduction of over $165,000 effectedlam satisfed that the proposals to Civil Hospital Hodgson. G. A. Harriman, C. C period, and that the current been bare of dividend-consider-tion in amount of the new com- Blake, C. A. L. Ricketts, T. R. venue returns received here fromable sums have been charged inputation for land values in the ad- Parsons, Cheung Kin Wai. A.Peiping continue to present satis-the Profit and Loss Account by justed Balance Sheet over the old, M. L. Soares, E. H. P. White, factory figures. Mrs. M. M. Fullerton, A. M. d'Eca, Mak Kam Lan and Wing "With the exception of Ching Hong.

charge in respect of Bad Chairman's Speech .. Doubtful Debts Writter

T.

Debits Much Reduced

re-

deliberations

This as

way of Depreciation on Buildings Balance Sheet figures, and which and Furniture and Fixtures.- In it is considered should be retain- the addition, the resultant positioned to be held in Reserve against and was strengthened by the presence possible losses- on realisation of! Off, of Reserves substantial in amount,jany of the properties.

In his speech the Chairman items

to the debit of the Proft which, with the exception of the "Secondly, I would point out said: The Accounts for the fin-and Loss Account are all on a Land and Buildings Reserve, had that it is desired to retain $450,- ancial year 1935, which are under much reduced level, in comparison been allocated out of profits in 000 as a General Reserve to pro- your survey to-day, cover a per-with those embodied in the ac-past years. Moreover, it was vide resilience against the contin-İ

erous

lod within which have been gener-counts for the previous year. It is rightly considered that in view of gency of any periods of adverse. ated many difficulties and disap-regretted that the excepted item the book values of the land owned trading-which is considered pointments for the operation of referred to displays a serious by the Company. as against the necessary and reasonable precau- Hotels in the Far East, and par-increase over amounts provided market worth of such land, a con-stion. ticularly has this been marked in for such a contingency over the siderable hidden reserve existed. "You will observe from the sum- the northern field, where in two of past few years. It is, however, to offset a possible drop in the mary showing the amounts to be the largest establishments com-difficult to obtain prompt settle value of buildings and their written off Assets under the Recon- prised in your undertaking are lement of accounts in these times. I equipment below the residual struction proposals, that the items cated. No remiader from me is should point out that in assessing value thereof appearing from the earmarked for drastic reduction needed to emphasise to you the the amount of the provision in book figures.

are Buildings, Furniture and Fit- condition of severe financial strin-question it was deemed prudent to

"Drastic Change

tings, Machinery and Plant, gency which has continuously ex-maintain our standard basis by

Glassware. isted in Shanghai during the per-excluding from schedules of debts the past two years have wrought The main application of these ap-

"However, the experiences of Linen, Crockery and iod now under review, the reper- for incorporation in the Balancea drastic change in that outlook. (propriations has been directed toj cuasive effect of which is reflected Sheet all transaction ante-dated 12 Particularly is this so in Shang-the Buildings and Equipment of in the earnings of your company, months prior to the closing of the hai, where the collapse of some the Palace・・ and Astor House in common with other commercial books. It is confidently anticipat important land companies operat- Hotels, Shanghai, the Peak Hotel, undertakings.

ed that a substantial proportion of

extensive scale has ing on an

Hong Kong, and in a minor de- "Your Hotels in that port, al-the items provided for will even-

gree to the Hong Kong Hotel. though, as you are aware, of antually be recovered, and I can state caused a veritable slump in pro- old-fashioned

In the circum-

"Obsolescence" type, comparing that satisfactory headway in that perty values. most unfavourably with the num-direction has already been made remedial steps in relation to the solescene' has made inroads into stances your Board considered that "You will apprecite that ob- establishments of modern during the current year. construction recently erected You will observe that deprecia-Balance Sheet should be taken the value of these properties to sn extent in excess of the amount of there, have attracted what can be tion on the Circulating Assets has immediately.

them considered in the circumstances been written off to the extent of situation with regard to property over the past few years. It is for

"In addition to the altered depreciation provided for satisfactory revenue. The advan-$135,748.37, but depreciation од tage, however, of an encouraging Buildings and Furniture and Fix-values, a further disadvantage this reason also that the reduc- ratio of occupancy has been offact tures has not been provided for in

(connected with the revolution-tion by the necessity, compelled by view of the reconstruction pro-ary ideas now attaching to the is called for in order to make competitive action, to accept cut posals to be submitted for your construction

hotels and similar provision in respect rates, and this procedure had the consideration at the Extraordin their equipment) bas become so the Grand Hotel des Wagon-Lits, result of a negligible contributionary General Meeting which imme. markedly apparent as to call for Peiping. only accruing to the General diately follows this Meeting. is new interpretation of modera The item "Construction in Pro- [accommodation' in relation to the gress, which is eliminated under tablishments, after relative over- **Tonching upon the Balance demands of patrons, and thus the scheme,”"represents mainly ex- Sheet, I submit there is little call-operates to the detriment of older penditure on plans, site levelling, Better Results in H. K. ing for comment. I would men-structures. Your establishments etc., in connection with the hotel "Your Hong Kong establish- tion, however, that between the and their equipment, therefore, al-on the Shameen it was proposed ments fared more favourably, I am time of certification by the Andi-though constituting assets which to construct some years ago. pleased to szy. Indeed, results tors and the printing of the Ac-have been subject to depreciation

"In the opinion of your Direc- achieved at most of our hotels in counts an omission has occurred at rates, considered sufficient to jtors the effect of their proposals the Colony during the first and in relation to the item Furniture reduce each unit thereof to a break-as dealt with in my preceding re- last quarters of the year were and Fixtures, the words plak ad-jup valne within the period of its marks is to present & Reconstruct- highly satisfactory. Unfortunate-ditions" having been omitted. effective life, must in the light of ed Balance Sheet presenting a ly, however, the Summer season These additions totalled $7,751.35, modern conditions be regarded as true perspective of the position of of 1995 again zabered in an era representing the cost of a consign-|standing - In' the books at figures the Company in the light of the of 'doldrums, sufficiently dull" to meat of modern electric heaters, far in excess of their actual capi-ļabnormal times through which we almost eradicate the satisfactory together with some new furniture(talised value as earning units. are passing. Considerable future

Working Account from those es-

heads had been met.

One Solitary Oasis

of new

the item 'Investments'

of

in recent months

FRIGIDAIRE

with the

"METER-MISER"

Can only be obtained

from

DODWELL & CO. LTD

ALEXANDRA BUILDING.

TEL: 28021.

ap-