1931-04-17 — Page 6

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on

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}

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Sole Agents: H. RUTTONJEE & SON, 15, Queen's Rd. C.

Parfumerie Rigaud

PARIS.

"MARY GARDEN"

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AGENTS: '

VICENTE ATIENZA & CO.

No. 54, Nathan Road, KowlOON. :

TEL. 5755.

WHITEAWAYS

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“MEN'S OUTFITTING DEPARTMENT.

WHITEAWAY, LAIDLAW & CO, LTD.

HONG KONG DAILY PRESS, FRIDAY, APRIL

.

HONG KONG HOTEL MOTOR 'BUS

SERVICE.

THE UTILISATION OF DIESEL OIL ENGİNES..

CURRENCY REFORM: PLEA BY WELL-KNOWN LOCAL FINANCIER.

Presiding at the annual general meeting of shareholders of the Hong Kong & Shanghai Hotels, Limiti, Mr: J. H. Taggart spoke in very optimistic vein regarding the Company's prospects, and said that the now shares would reduce the Company's in- dibtedness to the Bank, thereby making its position extremely favourable.. The Company's 'hus service continues to be very popular so much en that there was an increase of 17 per cent. in revenue from this source.

During the course of the meeting, Mr. Frank Austin made r, suggestion to the effect that the Company should dispose of its enmmitments in Shanghai and Peking, and added that the Peak Hotel was in need of reconstruction. The shairman replied that whilst the Company were prepared to consider offers for the pro- perties in Shanghai, they were not in any grant rush to get rid of these holdings. As regards the reconstruction of the Peak' Hotel, the matter was receiving the consideration of the board.

"A CURRENCY OF MORE STABILITY."

17, 1931.

busines foll far short of reaBGO- able expectation, due to the long prevailing unsettled political situation in the North. The soine- what, small operative profits made Ever the past four years, lieing in- sufficient to provide more than a nominal return on your investinent. in that Company, have been utilis ed for the purpose of depreciating the whole of the assete on more liberal basis than the actual life thereof demands. An + result, conservation of cash resourcesr haa been made, and by judicious invest- ment of the surplus funds it has

· been possible to build up an Invest- ment Fund of satisfactory dimen sions, and, in this, connection, you. will be interested to learn that the 'Grand Hotel den Wagons-Lits, Ltd. kus been enabled, at March 31 Inst, to redeem the whole of its indebted- ness to the holders of its debenture Taels BER, totalling Tientain 221,000. I think I may say with- out undue optimism that the Com- pany's improved position as a re- sult of boing relieved of all debt, aided by the greater volume of busi ness now experienced at the Hotel in Poking, is such as to warrant anticipation of an early terminas. tion of the period of non-produe- tiveness of this investment,

Turning to the Hayilities side of this investment.

The Chairman, after reading the You will observe that the item auditors report, said:-You will ("Audit, Accountancy and Legal observe from a perusal of the Fees "is increased by 827,985. This credit side the Profit and Loss (increase is brought about by the Account that the balance of the payment of legal fees, etc., incur. Working Account amounted to fred by the Company in contesting $1,500,439.35 against $1,388,069.16 the action brought against us by the balance sheet, you will noto Turning to the liabilities side of for the preceding year. Although the firm who installed the refrigera-that "Depreciation Reserve" hus a decrease of 802,520 is thus dis-tion plant at the Peninsula Hotel, suffered reduction to the extent to played, this result should not, in This firm claimed from the Com-which I have previously referred. the circumstances, be regarded as pany certain monies as being a

The item Lonna kecured by Mort- Kages" stands at $4,300,149.31 an unsatisfactory. Last year's re alt balance due to them under their December 31, 1930, ae against has been obtained in spite of the contract for the installation of the 87,012,186.14 in the accounts for the adverse trend in exchange during plant, whilst your Company con this heading being effected as a re- previous year, the réduction under the major portion of the year, with tended that a counter-claim exist-sult of the receipt of the purchase consequential increased cost of imed on their part in respect of faulty price of the Majestic Hotel pro- ported comestibles, beverages, fuel, work. This action was equitably ¡perty.. etc. Moreover, the drastic depresettled out of Court after the trial s128,101. ciation of the local currency in bad been proceeding thout three flicted considerable increases in weeks, a

Course of action your

Sundry Creditors" are test by

'Bus Services,

:

You will be pleased to learn, in our operating costs in every de- Board deened it advisable to acconnexion with the bus services partment, and necessary replace iments to plant and machinery, and the general equipment of the hotels, was perforce effected at enhanced

cost.

E

| advantages, with the result that the

quiesce in, for the highly technical rated by the Company, that the nature of the ease involved the re-experienced considerable increased services on all routes operated have

tention of expensive experts as wit popularity during the year, and an nesses, and it was considered that, ly 17 per cent.

increase in Revenue of approximate. over last year's if the ease had been carried to con- figures has resulted from the aug The Company's establishments in elusion after further lengthy trial, mented patronage. As you will Hong Kong have experienced dur considerable additional legal, ex-

rendily understand, the factor of iny the year an appreciable in penses would have been involved, very detrimental effect upon the adverse exchango has had also n

crcase in patronage over that en- irrecoverable even in the event of costs of operation of our 'bun joyed last year, more particularly the Company obtaining a verdict routes; nevertheless, the satisfac

tory increase in revenue. I have from transient guests. Our estab in the action, a state of affairs, just mentioned has offset in a lishments in Shanghai, however, which, in the opinion of your measure the low exchange dis were, during the earlier portion of Board, the monetary importance of profits produced by the Bus De- last year, in the matter of rates, the matter at issue, did not warpartment last year are practically pissed in the position of having to rant.

the same as for the previous year. meat sonicwhat severe competition, Maintenance and Repairs. with the advent of a new hostelry

You will note that the expendi in that port. Nevertheless, the pro ture for the year under the head pressive effect of resistance resulted in of Maintenance & Repairs in a gratifying volume of patron- 18 down by-843,433, vis a vis the age being experienced at the Con previous year. Whilst making reen carried out to many vehicles, pany's two hotels in Shanghai, ference to this item I would mennying heen, entirely rebuilt. All in some cases the motor-bus budies heading to a satisfactory contributien that expenditure incurred in this type of expenditure has tivers tion from that source to the General Working Account profits.

effecting modernisation of certian charged to working before computa- Coupled with this, fact it is gaiyarnt, which strictly speaking just referred. I feel that to have tion of the profits to which I have piersing to report that returns could be included within the pur-achieved such result, under the con- from the Northern port during the view if capital expenditure, baditions prevailing, reflects consider- first quarter of the current year heen written off out of revenue record farther improved business Furthermore, in this connection, it partinent management..

able credit upon our Garage De- over the corresponding period last was not considered expedient to en- year--tangible evidence of

the cranch upon funds standing to the adherence of a clientele, at your credit of the Repairs & Renewate establishments in Shanghai en Account," and the sum of $100,000. cicnt to maintain a satisfactory which was allocated thereto from the profits of the preceding year. still remains to the credit of that

volume of business there.

Majestic Hotel.

account,

Poking Hotel.

In

in

The vehicles comprising our bus fleet have been maintained in a high state of efficiency, and the relative costs included in revenue expenditure: No bus has been although extensive overhauls have allotted au aceretion in book value,

Diesel Engines.

utilisation of Diesel type oil engines The possibilities attaching to the are receiving our serious attention. If the result of experiments now in progress. load to the adoption of this type of engine, a very large saving in fuel costs should result, and expenditure on lubricating oils preciably less. We are in close and general maintenance be ap touch and co-operation with Tomac suppliers-of-vehicles-on-the-|· offering more economical working, matter and all possible avenues will be exploited.

our

With regard to the disposal of Depreciation for the period ander the Majestic Hotel, although the review has been provided for upon property was not handed over by our Isua! conservative basis. this Company to the purchaser un this connection you will note that til March 31, 1930, a diminution in it has been considered expedient to the earning capacity of that estab- withdraw the sum of 8200.000 from

shment was experienced during the Depreciation Reserve, the first, and incidentally what we order to maintain provision of de regard, us the meat productive. prociation on the basis of the stan quarter of our financial year, for Gard set in past years in respect

You will doubtless be interested the purchaser's decision relative to of the Company's various classes the closing down of the residential assets, a matter to which I propose figures for 1930 are 1,371,533 miles to learn that the 'Bus mileage portion of the retablishment had an

to again refer to later. adverse influence upon booking re-

as compared with 1,199,103 miles in. trospectively from the beginning

1929, an increase of 172,430 miles, of the year.

Turning to the debit side of the balance sheet, there is little enli

Coming to the assets side of theed whereas the number of passen- pers carried over all routes during Profit and Loss Account, you will ing for comment, for the deprecia- 1930 the number of passengers car- 1920 approximated of millions, fur notice, ne making comparison with tion written off the assets accounte the figure in respect of the previous in most instances for the differences tied falls just short of 7 millions. financial year, that "Rent, Rates, appearing when making compari- With regard to the matter of the Tartes and Licences" show an in- son with the figures of the proced-propriation recommended by the crease of $20,882 This increase is ing year. I would, however, re-uard for the year under review, due mainly to the imposition of a mark upon

I feel it is advisable that I should one item appearing tax on the seating capacity of our amongst the assets, namely invest-remind shareholders of the adverse | 'buses, and to the inclusion of the ments, which stand in the balance cross rate of exchange between rental paid to the new owners of sheet at cost 8402,174,48; 8480,700.07 Ifong Kong and, Shanghai which the Majestic Hotel noder

of this figure is the cost of acquist prevailed during the year. The ex- terms of sale relating to that pro- tion of the Company's holding of change position rendered dimult Ferty for the Company's tenaney shares in the Grand Hotel des Was transfer of funds standing to of the establishment during prac gons-Lite, Ltd, which holding the credit if the Company in Shang tically the whole of the first quar- presents approximately ninety per hai-a large portion of which re- tur of 1030.

cent of that Company's issued fresented the proceeds of sale of the capital. The Hotel operated by Majestic Hotel property-to effect the Grand Hotel des Wagons-Lite, reduction of its indebtedness in The item of Bank Interest " td., situate, as you know, in the Hong Kong, without entailing a ou will note is reduced by $109,415. Fegation. Quarter of Poking, hat. Borious loss in exchange. Futher this being consequential upon the over the past few years had to more, the prevailing state of the reduction of the Company's indebt-contend-with-competition-from-an-oney market in the Northern_port adness made capable by the receipt establishment offering the advan- precluded the employment of the of the funds representing the pur- tages attaching to a building of Company's surplus funds there ca chase price of the Majestio Hotel moro modern construction, and, advantage, property.

morcover, the volume of tourist (Continued on Pagë 11.)

Recent Legal Action,

the

NOTICE.

Owing to a shortage of supplies, we are unable to make any deliveries of Household Coal until further notice.

THE KAILAN MINING ADMINISTRATION,

DODWELL & CO., LTD., Agents.

How quickly plates are emptied where 'O.K-the rich fruity sauce-is-served.

Mason's

OK

Delicious and Appetising.

Sauce.

AGENTS:-W. R. LOXLEY & CO., HONG KONG.

FOAMITE FIRE EXTINGUISHERS DODWELL & Co. LTD.

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