1939-03-23 — Page 12

Fare 12

H

$2,000,000

THE CHINA MAIL, MARCH 28; 1989.

Development

Planned By Godown Company

PORT AUTHORITY

CREATION DISCUSSED

AS POSSIBILITY

and efficiently with the future trade off there is manifestly only one the Colony.

course

open to us and that is the course our As you have been told in the Budget Board, with foresight and due consi- address, pler leases expire in 1949. At deration to their belief in the future some time before that date Govern- welfare of our Colony, proposes t. ment contemplates ́ ́ an enquiry Into adopt. port facilities and a declaration of in- I should like to quote, if I may, part An elaborate programme of building which in the tention which we naturally hope will of a speech made by one of our Board,

be made without undue delay.

the Hon. Mr. Dodwell, at the recent course of a period of years will result in the Whatever happens, however, one meeting of members of the Royal Hong

thing is clear: the Godown Company Kong Golf Club, complete modernisation of the whole of the have their responsibilities to the Port "Uncertainty as to the future of the property of the Hong Kong and Kowloon and cannot stand still. All your pro-Colony in 1933 was one of the factors perty on which the five wharves abut] on which we pessimists laid great Wharf and Godown Company, was mentioned is on a 999 years' lease.

stress. It may be argued that the Co- LIGHTER EARNINGS

lony's future is still obscure, but so is by Mr. D. F. Landale, chairman, at the annual The Company's craft have again the future of the.world, and if we are ordinary meeting of the company held this been fully employed during the year, to wait until every factor becomes fay- and carninga from this department ourable for rebuilding, few of us pre- morning at Messrs. Jardine, Matheson and Co. 210.78. The Company continues to oh-ple the comforts of the imposing Club show an increase over 1987 of $95,- sent members are, ever, likely to sam-

Mr. Landale said:

vessels discharging cargo to the Com-tain its fair share of business offering house the Committee have planned for The earnings for 1938 showed apany's premises at Kowloon was 1,022 in this direction; the twelve new light-us. Experience since 1933 in dealing

The 1937 ers marked advance over those for 1937, as against 1,255 for 1987.

referred to in the Chairman's with the uncertainties of the future owing to the greatly increased storage figure, however, includes a number of speech last year are now in service, have taught me that the best course facilities which the Company made vessels which were diverted from and your flect is being maintained in is to go ahead just as if no uncertain.

Shanghai, and although the total ton-efficient working condition. A new ties existed, nage landed in 1938 was only 789,477 launch of up-to-date construction has This is apt of our Company. tons as against 908,908 tons in 1937, been added to the fleet, and the Ac- the average tonnage of cargo per ves-counts show $84,500.00 on account of sel was higher than that of 1937. These this craft. figures do not include quantities of tea and other China Produce landed from Coast Ports.

available.

In April/May it became apparent that we should be hard pressed for space to accommodate cargoes coming forward. All godowns, in the Colony were congested, and from information available as to anticipated arrivals it was obvious that the Port would be unable to accommodate all the expect-

The shipping situation in Amorica ed business unless something was done. contributed to the decline in the num- Your Directors considered it vitallyber of vessels handled, as from 1st necessary to ensure that the efficient July arrivals of American vessels were working of the Port was maintained seriously curtailed, and between 21st and, in order to avoid any cargo actual- October and 2nd December none of the ly destined for Hong Kong boing di-regular American vessels visited the verted to other Ports, they took steps, Port.

better to terminate

for tors

to provide additional storage space. It has been obvious to your Direc-

GODOWN RENTS

some time that existing The position was further complicat- godown facilities

are inadequate to ed by the fact that owners of godowns cope with the business of the Port. in Hong Kong which we had occupied Some of our buildings are about 50 on lease, demanded such inordinately years old and have passed their econo- increased rents that we decided it was mic life; during the congestion all the leases and godowns were filled to capacity and it make our own arrangements. Added must be understood that most of the to this we also had to give up other buildings, rushed up during the emer- buildings which had been placed at our gency had to be built very rapidly and disposal for storage purposes in 1937 as well as a large area of leased ground are more or less of temporary con- struction. They are being written off. on the Railway front at Chatham Road. The Company therefore first of all leased an area of land at Cosmopolitan Docks and constructed on it a tempor-

godown ary

accommodate 5,000 tons; at the same time, arrangements were made with the Dairy Farm, Ice and Cold Storage Co., Ltd. to lease the old Brewery site at Laichikok, and the old building on this property was re- conditioned to store a further 7,000 tons. Plans were also put in hand for the construction of a permanent con- crete godown with granite block walls on our property at K.M.L. 49, the pre- sent timber yard, which would 12,000 tons.

to

LAICHIKOK PROPERTY

take

In June, however, it became obvious that still further accommodation would be needed to cope with the situation. and your Directors therefore purchas- ed the Laichikok property from the Dairy Farm, Ice and Cold Storage Co., Ltd. with its buildings and pier, and proceeded with the construction of an additional godown on this site with ac- commodation for 13,000 tons.

All this gave us 40,000 tons of addi- tional storage space and the large in- crease in earnings over 1987 shown in the Accounts is due to this factor; had this space not been available the Company would have been compelled to shut out a large quantity of Hong Kong cargo, and would have been un- able to accept the large volume of new business offering.

NEW BUILDING SCHEME Looking to the future your Direc- tors have decided to start a building programme which, in the course of a period of years, will result in the mo- dernisation of the whole of our pro- perty and develop it to the best ad- vantage.- The following programme has been decided upon as essential as

Apart from the points I have ready covered, there is little in the counts calling for comment.

PORT TRUST?

As our property immediately ad- joining the Wharves is on a 999 years' al-lease, we are, I think, in a favourable Ac-position; rumour has it that some form of Port Trust is contemplated in 1949, The volume of business transacted and there is no doubt that no matter during the year has again called for what form of Port Development may continuous extra work on the part of be ultimately decided upon, the Wharf the Staff; I am pleased to say that all Company must take its place therein, demands on them have been efficiently and that therefore development of our and cheerfully met, and I feel sure property on modern lines can only Shareholders will approve of the deci-react to the advantage of the share sion of your Directors to allocate the holders. "Bonus to Staff." amounts shown in the Accounts under It gives me much pleasure to second the proposition that the Report and Adequate depreciation on all proper- Accounts as presented be adopted. ty has been allowed for, and the pre- sent book values are, if anything, be-

OTHER BUSINESS Messrs. H. V. Wilkinson, low the actual value of the respective Black and A. H. Penn were confirm. C. C. properties. Dividend of $3.00 per share absorbing A. R. Fullerton, seconded by Mr. G.

Having paid an Interim

ed as directors on the proposal of Mr. $270,000 the balance available for ap-B. S. Thompson, and the Hon. Mr. propriation is $1,544,785.21 which in- cludes the sum of $249,411.05 brought S. H. Dodwell, Mr. A. H. Compton forward from 1937. Your Directors recommend that this balance dealt with auditors on the motion of Mr. Castle, as follows:-

Pay a Final Dividend of

$7.00 per share Transfer to General Re-

serve A/c ... Transfer to Repairs and

Renewals A/c Carry forward

:

and Mr. D. Drummond were re-elected

and

seconded by Mr. D..Mackenzie. Messrs. Percy Smith, Seth .$830,000.00 | Fleming and Messrs. Linstead and Davis were reappointed auditors on A. Murdoch, the proposal of Mr. 500,000.00

seconded by Mr. J. Hyde. 152,708.09 262,077.12

$1.544,785,21

The following attended:-Mr. D. F. Landale, chairman, the Hon. Mr. S: H: Dodwell, Mr. D. Drummond, Mr. H. V. Wilkinson, Mr. A. H. Compton, a first step and has been put in hand: Before formally proposing the adop. Mr. J. H. Jessen, Mr. F. A. Joseph, (1) To build a new wharf in place of tion of the Report and Accounts, 1 Mr. T. B. Wilson, Mr. C. C. Black, No. 3 which it is inadvisable and should like to draw your special atten- Mr. A. H. Penn and the Hon. Mr. M. uneconomic to repair, This will tion to the resignation of Sir Robert K. Lo, (directors), Major C. M. Man- following place all our wharves in efficient Ho Tung from the Board last Decem- nera (secretary) and the

G. B. 3. working condition.

ber on account of ill health. Although shareholders:-Messrs. (2) To demolish Godowns 16, 17, 18 Sir Robert was only a member of the Thompson, Gordon Castle, P. M. Hodg and 19 and to build on three-quar-Board for a few years, he has been son, D. M. Mackenzie, A. R. Fuller-

ever ton, A. Mackenzie, Kwok ters of this site u modern six very closely associated with us

We J. Hyde and A. Murdoch. storied storage godown and a sin- since the Company was formed. gle storied transit shed, with a ca- shall miss his active assistance very pacity of 18,000 tons in excess of much indeed. I should like to wish the existing 10,000 tons.

him a speedy recovery to health many happy years of retirement, and to thank him for all he has done for

(3)

(4)

The storage godowns will em: body the latest fire-resisting facil- ities and will be built in accordance 8.. with the latest modern practice, which should prove attractive to storers. "

STRAIN OF OPTIMISM

and

In seconding the motion, Mr. P. M. Hodgson said: Mr. Chairman,

To build modern coolle quarters in

I would like to express on behalf of Canton Road to provide accommo- the shareholders our appreciation

dation for approximately 1,200 coolies of the Company's staff.

'TO COST $2,000,000

of

I am glad to perceive a strain of op- timism running through your speech. The decision to start a planned build-

In

same

Hin-wang,

GOERING'S TRIP IN ITALY

Rome, To-day.

It is gathered from Italian news-

It is understood that he will then visit Rome for an exchange of views with Italian statesmen. Trans-Ocean.

LATVIA DECLARES NEUTRALITY

the able manner in which the Direc- Papers that Field Marshal Goering tors have coped with the various dif- will not pay his contemplated visit To provide more efficient passen-ficult situations that have arisen dur- to Rome until after his tour through gor facilities at No. 1 Wharf. ing the year under review. It is very Sicily and Libya.-

gratifying and gives us a feeling of security to know that we have on our This programme should be complet-Board practical business men who be- ed during the current year at a cost of lieve in the future prosperity of the The commencement of hostilities in over $2,000,000.00; the proposed trans- Colony and act accordingly. South China last October contributed fer of half a million dollars to Gener- further to the congestion in the al Reserve will in part help to meet godowns; large quantities of cargo this and the balance can be paid for normally moving direct through the over the next two years or so. There ing programme. is, in my opinion, a Port had to be placed on storage. will be, when the Accounts are approve sound and wise one; periodically,

I want to "stress the fact that the fed, a million and a half dollars in 1925 and again in 1933, we were told Company's tariff rates have not been | General Reserve.

by the pessimists that this Colony is increased in any way since the com- MEETING....

`(3)

finished, and I have heard the mencement of the Sino-Japanese hos- I should like to assure shareholders again quite recently-personally, I con- tilities in August 1937. In fact, our that this question of rebuilding has sider these predictions ridiculous. storage and transhipment rates are the been given the very fullest considera There seems to be a fear that all re- same to-day as they were in 1924, and tion by your Board. The decision to construction and expenditure in such is throughout the past fifteen years the incur what you may consider heavy ex- unwise at the present time. I cannot only increases made in our charges penditure is by no means tue to over- agree. This fear causes lack of pro- have been an increased berthing fee optimism induced by the favourable re-gress, without which no concern can be charged from the 1st June 1980 to ves-sults of the last two years. On the of any benefit. sels using the Wharves, and the charge contrary, your Directors realise full Our wharves and godowns are the for landing cargo for steamers ac- well that the trading of 1987/1938 har Company's very existence, and it is of count which was increased by 20% in been abnormal and cannot be expected the utmost Importance to keep them April 1987 to meet higher operating to continue indefinitely. Their decision up-toxiate and modern, without which costa.

is based entirely on the fact that so we cannot hope to progress as we Compared with other Ports, our much of our property must be rebuilt should. charges are still the cheapest in the and modernised if we are to keep our Are we Far East.

selvés abreast of the times, compati SHIP FIGURES

tive with the facilities given at other During the year, the total number of ports, and able to cope economically

;

backwards

to

ward?

FUTU

you

Any faith

Riga, To-day.

em.

The Latvian Government, phasising its neutrality has issued a communique stating: "The Coun- cil of Ministers has unanimously decided to take a neutral attitude. The independence of Latvian policy corresponds best to the interest of the people and State. As in the past, the Government will continue to make all efforts to increase the for safety of the country and to avoid | becoming involved in International future, i conflicts"-Trans-Ocean.

**