1940-04-02 — Page 7

THE CHINA MAIL, APRIL 2, 1940

AVIATION

FUELS CORNERED

London, To-day.

The important advantage which the Allies have over Germany, thanks to their un- limited access to the highest grade aviation fuels, is the subject of an article in the official trade journal "Petro- leum Press Service."

GODOWN CO. MEETING

CONFIDENCE IN FUTURE OF THE COLONY

THE VICIOUS CIRCLE OF ever-increasing costs may make it impossible for us to stay where we are," said Mr. J. J. Paterson, chairman, at the annual meeting of the Hong Kong and Kowloon Wharf and Godown Co., Ltd., held in Jardine's board room at noon to-day.

The chairman said:-

was

the

It is pointed out that until recently the fuel most widely used both by civil and mili- The profit on working for 1939 tary aircraft had an octane, $1,593,038.07 compared with $2,241,612.24 the previous year, a decrease of $047,074.17, or or measure of anti-knock nearly 29 per cent. 1938 however was a re-

cord year and earnings abnormal; value, rating of around 87 figure now before you is well above normal as the average working profit over the ten but there was now a rapidly years 1028 to 1937 was $1,015,812.

account for 1939 Was growing tendency to use hun-$137,052.59, an increase over 1938 of $58,- dred-octane spirit.

This enables the compression ratio of the engine to be increased and therefore raises the output of power; 87 octane spirit is generally obtained by the addition of small quantities of tetraethed lead to

Rates and taxes

per

Government

REALTY AND TRUST CO. MEETING

A DECREASE OF OVER $10,000 ON THE BALANCE, OF 'WORKING ACCOUNT, ACCOUNTED FOR BY THE · COMPARATIVE REVENUE REDUCTION ON THE REPULSE BAY LIDO, BROUGHT ABOUT BY THE LATENESS IN THE START OF THE PAST SUMMER ` SEASON AND THE INTERNATIONAL SITUA- TION WHICH AROSE IN AUGUST LAST, WAS MENTIONED BY MR.

T. E PEARCE AT THE ·· ANNUAL

·GENERAL - MEETING OF THE HONG KONG REALTY AND TRUST COMPANY LIMITED THIS MORN-

the adoption of the report and accounts for the year 1939 which has been proposed by to the death of Mr. P. M. your chairman, but before doing so I should ING. like to refer Hodgson who seconded the report and ac counts last year and whose recent death has deprived the Colony of one of its old. est and most respected Members. I am sure the sympathy of all of us goes out to his widow and daughter.

Once again think we have to express our thanks to the directors, management and staff for the very successful results of the year's working.

It must have been patent to all shareTM holders during the course of last year that the results, which would be placed before them at this meeting, could not be expected to be as good as those for the year 1938, as the latter to a large degree were brought about by the very abnormal conditions which

410.32 or 74 per cent. Rates and taxes are calculated by Government on the receipts and expenses method and this explains the large increase during 1939. Earnings for 1939 were down by $772,480.47 or 18.5 cent. Working expenses were down by $124,807.30 or 6.5 per cent.

The cost of fuel and stores for launches, increased very consider- cranes etc, has good quality bly, the cost of repairs and general up "straight-run" petrol and the view is keep is also much higher at present than existed during that year. expressed that Germany is unlikely it has been for some years. to suffer from a shortage of this grade may shortly institute an additional tax on profits of companies such as ours, and this of fuel.

will have to be met out of earnings. But if, as is probable, the Allies make provision for this a larger eventually resort to the almost exclu- than is customary has been carried for- sive use of 100 octane

fuels, Ger-ward in the accounts. many's problem will be more difficult for there are definite technical limits to the use of lead "dope," the only port which consists mainly of transit busi- practicable way of producing 100 ness, octane spirit being to employ high where we are. quality blending agents such as "mixed octanes."

Seven or eight plants for the manufacture of this vital

of

ΤΟ amount

It has always been the policy of the com- pany to keep all our rates as low as pos- sible in order to encourage the trade of the

During the year in question trade from this company's point of view must have been extremely difficult; first of all due to the almost complete blockade of China's coastal ports by the Japanese and during the last three months of the year under re- view by the outbreak of war in Europe, and I think therefore that all shareholders must be extremely satisfied that the accounts show a substantial surplus over the aver age for the ten years 1928 to 1937.

CONFIDENCE IN FUTURE

It is also a matter for congratulation that the directors still intend to continue with their building programme for further modern and up-to-date godowns.

The vicious circle of ever-increasing costs may make it impossible for us to stay

EFFECTS OF THE WAR You will remember that last year the

It is obvious that no company can stand chairman referred to the shipping situation still, it must either go forward or backwards In America when no regular American ves and the building programme, to which the blend-sels visited the port between October 21 chairman has referred, shows that the ing material, with an aggregate and December 2, 1938. I am happy to say directors have full confidence in the future capacity

of of this Colony, which I am sure is shared about 100,000 that during the past year the service

American vessels to Hong Kong has been by all of us, and also that they have every tons per annum are now in opera- resumed and we can expect an increase in intention not only of maintaining the posi- tion or under construction in Ger-trans-Pacific cargoes.

tion of this Company but of enhancing it. many. This will be sufficient for The result of the declaration of war in

It is also a matter of congratulation, `I the production of about 220,000 tons September last was a considerable decrease think, that storage rates, despite increased of 100 octane aviation petrola totalin arrivals and cargo in November, due to working expenses, have been-maintained at the temporary cessation of shipping from their previous low figures and it is hoped which it might be possible to raise Europe and other parts of the world while that the directors will be able to maintain

were these rates as long as possible. to 400,000 tons by the end of 1941 adjustments to war-time conditions

however, The appointinent of Mr. A, H. Penn as a if adequate quantities of other high-rrivals and tonnages had returned to nor-director was confirmed, and Messrs. Law- octane blending agents, such as mal and there seems a reasonable chance rence Kadoorie, J. H. Jessen, T. B. Wilson isoprpyl, and ether, could be spared that traffic will hold up. for the purpose,

The shortage of storage space continues But, as Germany's military

and at present we have very little working sumption of aircraft fuel was already During the year under review, we were 150,000 tons in 1938, and since the able to cope with all demands on our stor. total supply of petrol is limited and age space but not without the greatest dif big hydrogenation plants are vulner-ficulty, and congestion in godowns is again acute. The provision of additional storage able to air attack, her prospects space is therefore of great importance and would not appear to be enviable on is receiving the careful consideration the basis of existing knowledge. -

your directors. British Wireless.

BUILDING PROGRAMME

con-

STONECUTTERS' MEN

A

end of the year, made. At the

Брасс.

of

Last year the chairman reported the start of a building programme and this is being carried out as rapidly as possible:-

5, Coolies on February

The coolle quarters were finished just after the end of the year, were officially IN FIGHT

opened by H.E. the Governor, Sir Geoffry Northcote, on February 3, 1940, and were occupied by the free-for-all occurred at the I feel sure the better housing of our Coo- Jordan Road Ferry at 5 p.m. yester-les will have satisfactory results. day when over 10 men employed by the Military authorities on Stone- cutters'. Island were involved in a mob fight.

It is alleged that when one of the men, Li Wah, disembarked from the military launch at the Jordan Road Ferry,, two other military employees who were waiting near the ferry at tacked him. Friends of the attacked man rushed to his aid and a free-for- all resulted.

Li Wah and one of the two original attackers were sent to the Kowloon Hospital for treatment of injuries sustained in the fight. One man was

arrested.

ARMY OFFICER'S LOSS

Lieutenant Bateman, residing at No. 100, Waterloo Road, reports that while on his way to the Hong Kong Hotel yesterday he either loss or had stolen a purse containing some $850.

The new six-storeyed godown is well un- der way; the first three floors are practi- cally completed and two of these floors are completely occupied.

Demolition of No. 3 Wharf has com menced and we are proceeding as rapidly as possible with the construction of the new one which will be 600 x 50 as against 500 x 37' for the old wharf.

TEMPORARY DELAY

When war broke out in September last. fortunately the contracts for all the equip ment for the new godown had been con- cluded, and, all the steel for the coolle quar- ters, new godown and the wharf had arriv- d or was en route. It was obvious that if the work were not proceeded with ultimate costs of the development would

and H. V. Wilkinson were re-elected direc-

tors. Percy Smith, Seth and Fleming and Linstead, and Davis were re-elected audi- tors at a fee of $1,500 each.

"DEATH SENTENCE" ON HOLDING COMPANIES

Supporting the chairman were Messrs. E. M. Raymond, John Fleming and P. K. Kwok, Mr. J. H. Taggart, C. managing director, and Mr. F. Barry, secretary, and other share- holders present were Messrs. P. H. C. Suckling, M. Eca, W. C. Clarke and Lo Chung-wan.

After the adoption of the report M. and balance sheet Messrs. E.

re- Raymond and J. Fleming were elected directors and Messrs: Linstead and Davis auditors for the coming year.

Mr. Pearce said:-The profit for the year amounted to $82,390.45, which, added to the amount of $26,855.88 brought forward from the preceding year, makes the sum of $109,246.33 and a dividend of forty cents per share.

The profit for. 1939 decreased by some $12,000.- on comparison with the previous year. The credit items show an increase of over $5,000.- in the Investments earnings and a de- crease of over $10,000.- on the Balance of Working Account figure. The lat- ter is accounted for by the compara- tive revenue reduction on the Re- pulse Bay Lido operation, brought about by the lateness in the start of the past Summer season and the In- ternational situation which arose in August last, causing a considerable curtailment of the patronage that ordinarily would have been accorded the establishment. On the debit side of the Profit and Loss Account the only item appearing to call for par- ticular, explanation is that of "Raft and Moorings" in the sum of $8,354.- 75, written off. The "Lido Lady" was wrecked in the typhoon of the 23rd November last and the hulk sold as the repair costs were con- sidered prohibitive; I would add that it never has been possible to obtain Insurance cover against any risk other than that of total loss so the rehabilitation expense.

would not have been recoverable.

was

In the Balance Sheet you will ob- serve various capital accretions to the Lido Buildings, Furniture, Fix- tures and Machinery; the major por- tion of this expenditure was incur- red in connection with an extension to the Lido Restaurant.

New York, March 1. The Securities and Exchange Com- mission has begun to put into force the "death sentence" provision of the Holding Company Act. It has ordered two of the nine largest public utility

EXTENSION TO LIDO company holding systems in the coun- try to show cause why they should

at. "Investments at Cost" appear. not be reorganized in accordance with practically the same figure as record- the Act. These and the Electric Bonded in the previously issued Balance and Share Company and the Engineers Sheet: on comparison with the mar- Public Service Company, the largest ket value thereof at the end of last and smallest respectively of the coun- year, a deficit of over eight lakhs is try's nine major public utility systems. revealed, but a marked appreciation The commission expects to serve in values this year has resulted in similar order against the other seven companies within the next few weeks. The purpose of the Act is to force a simplification of the corporate struc- tures of these aggregations, and, by

a recovery of over two lakhs of this On the Liabili- difference at date. ties side of the Balance Sheet you will notice an increase in the Over- draft of $13,000.- which in the light

be far in excess of the present figures and bringing about a reintegration accord- of the dividend payment of $80,000,- away and the capital expenditure effected. 60 we decided to proceed with work which ing to geographical lines, do was in hand or contemplated. There was an with what is in effect the remote con- in the course of the past year, can-

however; arrange- exception to this rule, ments for more efficient passenger facilities trol of many enterprises. This "un- at No. 1 Wharf have been temporarily scrambling" process involves systems postponed. The delay is only temporary having altogether more than $14,000,- and is due to decreased passenger traffic.

WEATHER REPORT

not be considered unsatisfactory.

The extension to the Lido Restaur- art was necessary in order to permit of the proper accommodation of patrons at certain rush periods, a position which never had been pos- sible before. The opportunity was therefore taken of making an attrac tive dining room replete with

all al Observatory reports facilities for evening entertainment, The Royal that the anticyclone remains over and the 'result is, I feel sure, worthy the Pacific to the east of Japan and of public support. With the provi- another appears to be forming over sion of some further improvements-- Mongolia. The depression over Indo- including air conditioning--the Re- China has increased in intensity and taurant ・ should draw increasing another is probably moving eastward patronage In the course of the com-

In these days, of uncertainty, one thing at 000,000 worth of assets. least seems clear, we have to provide stor- age and to do this. It is necessary gener- ally to adhere to our building, programme, replacing old buildings with modern and giving clients those facilities they receive elsewhere and properly expect. During the lean years we clung to many of the older godowns which now are uneconòmic: some A 40-year-old shop foki, Cheng have been replaced but more remains to bis done, and, fortunately the company's fin- Sing, of No. 26, Graham Street, was ancial position allows us to replace essen admitted to Queen Mary Hospital tals. One more translt shed and two six: after falling from a tricycle In Tai storeyed godowns will be built this year. Hang Road yesterday. He died after SECONDERIS SPEECH

admission.

The secondar's speech read:---

I have much pleasure in rising to recond

across Manchuria.

ing. Summer.