CO129-494 - Governor Sir Clementi - 1926 [9-10] — Page 152

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excess of expenses over earnings, less estimated cost of laying up,

and without any charge for depreciation or management, and is

applicable only to steamer service between Hongkong and Canton.155

This figure therefore, it will be realised, represents only a small portion of the actual losses suffered by our Companies as a result of the Anti-British Boycott that still exists.

The letter addressed to you by the Hongkong, Canton & Macao

Ste mboat Co. under date 16th June 1926, we consider places our

position clearly before you but to avoid any misunderstanding, it might be well to explain the apparently large discrepancy between the above figure ($65,323.22) and the Statement submitted in our letter of 23rd March 1926 (viz: $110,167.64). This latter

figure represented our loss to 28th February and included propor- tion of management and also depreciation, while no deduction was then made for cost of laying up. In fact, the Statement was

compiled in keeping with the ordinary practice among Shipowners

to show actual results of the service. To reconcile the two

Statements therefore, it is necessary to adjust these charges as

under:-

Loss to 20th April 1926

to which should be added:-

Depreciation

Management expenses

Cost of laying up

$ 65,323.22

$13,812.26

14,766.45

34,003.83

62,582.54

$127,905.76

making a total loss to 20th April 1926.

against which we submitted actual loss

to 28/2/26.

Estimated loss from 1st March 1926, to 31st May 1926, $64,500.- which pro-rata, say from 1st March 1926, to 20th April 1926

110,167.64

say 35,750.00

$145,917.64

showing a difference of some $18,000.- in our estimated figure,

due to greatly improved earnings during March/April, as proved

by the certified Statements attached hereto.

We submit the enclosed Statements for the earnest and

sympathetic consideration of the Government for reimbursement

of our losses incurred in maintaining the service to Canton at