1940-05-30 — Page 14

THE HONG KONG JOCKEY CLUB

NOTICE

The MAY HALF-YEARLY GEN- ERAL MEETING. of VOTING MEM- BERS will be held at the Club House, Happy Valley, on Thursday, 30th May, 1940, at 5.30 p, m.

ALL MEMBERS are cordially in-

vited to attend and participate in any discussion which may ensue.

By Order of the Stewards,

C. B. BROWN,

Secretary. Hong Kong, 17th May, 1940.

THE CHINA MAIL, MAY 30, 1940.

BAD YEAR FOR CHINA

COAST SHIPPING

rise.

:

The difficulties of- British The outbreak of the European War as

might be supposed had a disturbing in shipping firms trading on the fluence and it was not until November that China Coast and inland wa-the markets recovered and rates began to ters during 1939 were stress- Altogether the difficulties of the year prov- ed by Mr. J. J. Paterson, ed greater than ever for British shipowners chairman, at the annual meeting of the Indo-China Steam Navigation Co., Ltd., held in Jardine's board room at noon to-day.

Directors supporting Mr. Paterson were Mr. H, V. Wilkinson and Mr. M. K. Lo. Mr. Paterson said:-

It is with much regret that your directors have to submit a comparatively poor re port for 1939 though it confirms only 100 exactly the gloomy view taken by the chair- man a year ago, one shared later by "Fair- play" if one may judge from an issue of

THE INDO-CHINA STEAM NAVIGATION last December. COMPANY, LIMITED

NOTICE OF GENERAL MEETING

The Fifty-ninth Ordinary General Meeting of the Company will be held at the Offices of the General Managers, & Co., Messrs. Jardine, Matheson Ltd., Pedder Street, Hong Kong, on THURSDAY, 30th May, 1940, at noon, for the purpose of receiving the Re- the port of the Directors, passing Accounts, and electing Directors and Auditors..

The year began quite satisfactorily for the dif- our coasting service, considering ficulties brought about by the undeclared war in China, but during March currency problems in North China gave business a serious set back. In other places the con- tinued decline of the National Dollar ne- cessarily meant a fall in the sterling value of our earnings at Chinese ports and you will appreciate that it isn't possible to make up the difference by a stroke of the 'pen.

With the return of neutral and Japanese tonnage which had left the field more Or less to British vessels after hostilities broke out, keen competition was felt and to add to this the Japanese forces extended their blockade of the coast. The blockade of the Tientsin Concessions and the appalling floods The Transfer Books of the

there last summer will be fresh in your pany will be closed from the 23rd minds. In June, Swatow, one of our main May to 13th June inclusive.

Com-

By order of the Board. JARDINE, MATHESON & CO., LTD.

General Managers. Hong Kong, 16th April, 1940.

DO

ports of call, fell to the Japanese Navy and normal trading ceased; later British vessels were allowed to call once a week but only for passengers and to carry stores for the European community. Canton remains

closed. It is not to be wondered' at there- fore that for several months in the middle of the year the company suffered serious losses.

BEAUTY SLEEP

YOU WONDER HOW YOU LOOK

ASLEEP?

YOU'RE WHEN THE TRAGEDY OF IT 18 THAT YOU'LL NEVER KNOW. ALL THE SKIN FOOD IN HONG KONG CAN'T PREVENT YOU FROM LOOKING RADDLED AND REVOLTING WHEN YOU AN INFERIOR NIGHT'S REST. TO BE WAKE UP. FROM BEAUTIFUL, YOU MUST BE FIT. TO BE FIT YOU MUST SLEEP WELL, TO SLEEP WELL YOU MUST BE COMFORTABLE. TO BE COMFORTABLE-WELL, YOU KNOW THE ANSWER.

"' EVENREST" MATTRESS

WITH

LUXURY

STAYOUNG'S

Inner-Spring

100.00 EACH

The Haunted Room Has No Terro rs For The Users Of Evenrest Mattress

WHITEAWAY, LAIDLAW & CO., LTD.

Rose Room PENINSULA

HOTEL

on the const.

reference was made

last

As mentioned in the report, Hangsang. which was bullt at the beginning of the contury and has passed her economic life, was sold to run elsewhere. New ships are still required to replace older ones but the financial future is so obscure, that: nothing be done just now. The seven more can modern passenger and cargo coasters we acquired in recent years have proved them- selves most successful and we must depend on them to carry on for the moment,

:

or re-

The loan with the Hong Kong and Shang- hai Banking Corporation for the four ships acquired two years ago was reduced' from Turning to our Sandakan trade, hostill- £2770.938.0d. on December 31, 1938 to £204,- ties in China were felt here too and the re881.12.20. a year later and since the begin- sults were again disappointing. The Hinning of 1940 it has been further reduced. sang, to which

SHIPS COMMANDEERED year, had given many years of useful ser- Government has commandecred vice but was now past her economic life: quisitioned much British Shipping in the rather than incur heavy and recurring ex rational interest. The first steps were tak penditure she was sold 'for breaking, up. It

en with ships.registered in the United King- was necessary to replace her: as mention- dom but last month we were notified by the ed in the report a contract was signed be Ministry of Shipping that our Calcutta and fore the outbreak of the European War with Coasting vessels, but not the Yangtze Riv- er Fleet, would be brought into the Liner. the Hong Kong and Whampão Dock Com- pany for a motor timber ship and with the Requisition Scheme from May 1. Requisi- heavy increase in building prices since then tlon does not imply that our steamers will the company has made an excellent pur-be withdrawn from their normal employ.

chase.

INDIA THE BACKBONE

conditions

Оп the Calcutta/Japan line generally were poor for the first half of the year but improved later. The Indian end was the backbone of this service; the the continued emigration restrictions in Straits and the war in China again made heavy inroads in our native passenger bust ness while exports from Japan declined.

and

ment, though the Government has the pow er to do so whenever necessary; intention at the moment seems to be that the com- pany will maintain its normal services but will run the steamers for Government aç- count. In other words that for the dura- tion of the war the main profits will go to the Ministry of Shipping. Some of you will recall the profits of the last war but conditions to-day are vastly different; then, the Company was permitted to retain the. substantial earnings on its river ships with The Company's Yangtsze 'steamers

day the river steamers are lald up that lighters, except for a few small craft which Blue Book rates on those requisitioned, to- operated for part of the time on, the upper

and in the Delta, were ald up third of our tonnage ready mentioned-and renches

of throughout the year, for, as you know, the while we do not yet know what rate

may allow us on the Yangisze is still closed. These river ships hire and percentages for depreciation and make up a third of our tonnage and their profit the Minister enforced idleness was a serious burden. It other two-thirds which work for him, we do still is, and I cannot emphasize too strong-know that these incomings will have ly the heavy drain these idle vessels are on face Yangtsze expenses, a recurring charge and the debt to the Hong Kong and Shang- the revenue earning portion of the fleet, or

hai Corporation for new tonnage, as well. will be on the rates which the Minister of

I think it quite essential that the prefer- Shipping may allow us, for he will con-

cumulative dividend· · be kept from snowballing any further as already. £178,000 sider only the Coast, Calcutta and Sandakan

stand between deferred shareholders and a steamers. Unfortunately there can be no

dividend, for this reason. I think one year's change for the better until the Yantaze is

preferred ́interest must be paid but I don't re-opened to unrestricted trading.

see how we can do more. As usual, the directors have drawn no fees, they haven't since 1830 nor is anything held in suspense.

The Company has been singularly unfo, » hostilities tunate on the Yangtsze since broke

out. Shareholders will recall the wuhu bombing incident of December 1937 when Tuckwo and the hulk Madras were while destroyed by Japanese action and some claims have been met unofficial Bri- tish ones still-outstand. To make matters worse the Upper River stemmers Klawo.and Hsin Changwo were set alight and burnt out

air raid at Ichang during a Japanese August 6, 1939 though lying in a safety zone previously communicated both combatants. I am very sorry to say. that two of the Chinese crews were killed and others, including a European Officer, were wounded. Claims for this further dam- age have been submitted through our Con- sular Authorities.

OFFICIAL AID

on neutral to

red

to

115

NEGOTIATIONS PROCEEDING When the Minister of Shipping tells what we are about to receive shareholders will be advised.. We negotiate just now,

I am sorry I can't give you more defin ite information to-day, I have only been able to give you some of the main items of expenditure. What we might hope to re- ceive, we can only guess at from data in Hansard and the shipping papers, "Fair- play" for instance.

Turning to the ́accounts themselves, the .net balance of steamers' working account is shown in profit and loss account 'as £131,. 946.18.11d, and is £158,390,8.98, less than in 1839. After providing £72,015.0.4d. for de-. preciation and £33,692.10.11 . for all other Liabilities there remains as credit of £26,- 239.1.8 With the credit balance at £20,- 051.14.0d. brought forward from 1938, trans- fer fees of £26.18.7d, and the net gain on units of £18,305.1.0d. the balance available in

said, the directors regret they cannot pru- dently recommend the payment of more than the preference dividend for 1927 absorbing £14,876.14,0d., they propose to transfer £20,- 000 to general, reserve with £10,000 to spe cial repairs and renewals and to carry for- ward to 1940 a balance of £19,748.13.38.

Before turning to other matters, the Indo- tho China S. N. Co., Ltd. owes much to Government of Hong Kong, the Royal Navy and to H.B.M.'s Embassy and British Con-appropriation account is £64,623.7.3d. As I've sular Officials for the valuable help and co-operation always so readily placed at our disposal. If this help has been essen- tial during recent years in China

it has

become doubly so since the outbreak of the European War and the Indo-China. S. N. Co., Ltd. is very grateful. It is also very grateful to the floating and shore staffs who have carried on with that loyalty and ef- Aclency on which the company can invar tably count in times of peace or moments of stress.

No new tonnage was added to the during 1939 though, as I've said, a new Hinsang is due at the end of the year, fin- anced by a loàn, from the Hong Kong and Shanghai Banking Corporation, No expen- diture was incurred on her during 1939.

From 9 p.m.

To 1 a.m.

TO-NIGHT

Dinner Dance

WITH ART CARNEIRO & HIS MUSIC

Reservations 'phone 58081

TEA DANCE

5 tik 7

SUNDAY NEXT

THE HONGKONG & SHANGHAI HOTELS LTD.

Dealing with the balance sheet, the book value of steamships etc. has been reduced from £1,017,000 by £72,015.6.4d. for depre- clation and the value of the two vessels Bold £4,984.13.8d. and stands at the conser valive figure of £840,000. I need say noth- fleeting about current assets beyond stating that £98,788.18.3d. for accounts receivable and agency, balances has been accounted for since the end of the year. With reference to the liabilities, general reserve has been Increased to £220,000 by transferring £20,000 from appropriation account and under un- appreprinted profits is shown the carry for- ward to 1940 óf £19,748,13.34. In contin- gency reserve payments amounting to £7,- 801.13.7d. were made during the year for special repairs, and renewals and after transferring £10,000 from appropriation ›› ac- count this reserve stands at the slightly higher figure of £13,778.4.Zd. Underwriting account at £37,358.11.9d, remains about the same as in 1938 and is considered sufficient to meet any accidents not covered by in- surance. Current Habilities have fallen from £389,737.7.7d. to £293,817.2.18, due chiefly to the reduction of £68,057,0.10d. In the loan from the Hong Kong and Shang- hat Banking Corporation and as already mentioned further re-payments have been made, since the beginning ⠀⠀ of: 1940.” The contingent liability for cumulative preferred· dividends from 1938 to 1939 inclusive: atlik remains at £178,520.8.0d.,' your directors re- |gret it has not been possible to reduce It.

With these remarks, I have now-to pro- pose that the report and statement of ac- counts as presented be adopted;'i that a di-" vidend of 8/- per share on the cumulative preferred ordinary shares for the year. 1927 be paid; thát £20,000 bo transferred to gen-. eral reserve; that £10,000. be transferred to reserve for special repairs and renewals; that £19,746:13.3d” be carried to next year's, account, and that the dividend'ön shares on the Hong Kong Registar be bald at the rate of 1/2}i per dollar, being the TYT rate of exchange on December 31, 1839, MAY

The resolutiort was carried-unanimously, and without question. Mr. H. Vi Wikinson and Mr":345 K-Do: rétiring directors, ware re-elected, while Mesare, John Flerning and A. Ritchie were appointed auditors far:1910 (ataudeis nt. $8,000,