1931-06-18 — Page 11

YEAR OF ADVERSE CONDITIONS FOR

SHIPPING TRADE.

INDO-CHINA STEAM NAVIGATION COMPANY'S

"WORK FOR PAST YEAR REVIEWED.

VOLUNTARY REDUCTION OF

DIRECTORS' FEES.

Presiding at the annual meeting of shareholders of The Indo- China Steam Navigation Company, Ltd., in the boardroom of Mears, Jardine, Matheson & Co., Ltd., yesterday, the Hon. Mr. JJ. Paterson remarked that the Company's directors had to, record, with regret, a year of adverse conditions, and added that 1930 was one of the most difficult and auxious periods through which the Company had passed.

Regarding the book values of the feet, Mr Paterson remarked that they were considerably above present day values, and to reduce book values to present market values was, an extremely difficult task.

PROPOSED SALARIES CUT.

Adressing the meeting, the Chair-On all sections of the river man said:-

21

keen competition was experienced throughout the year, and trade was seriously interfered with on the | Ichange-Chungkiang Line by a strike of Chinese pilots, which last ing which time practically all ed from February until May, dur steamers operating on the Upper Yangtaza were unable to run.

The continuance of civil warfare

HONG KONG DAILY PRESS, THURSDAY JUNE 18, 1931.

.

SUCCESSFUL YEAR'S WORKING

WM, POWELL & CO'S MEETING

Only One Boricua Accidant. With the oxcoption of the re- grottable stranding of the Kutsang, outside Hong Kong on December 17 lust, the Company was free from serious accidents, and although I have already made special reference to the Company's employees serving on the Yangtoze, I desire also to thank all members of the Company's staff, both ashore and afloat, for their loyal co-opera-working.. tion during an admittedly difficult year

Mr. E. M. Raymond presided at the annual meeting of Messrs Mm. Powell, Ltd., yesterday when ho reviewed a very ssful yehr's -

With regard to the salaries of the European floating staff, I must ex- plain that these were paid up to June 30 last on a basis of half at 1/0d. and half at current rato. In the early part of June last year the China Conet Officers' Guild and the Marine Engineers Guild of China approached the China Navi- gation Co., Ltd., requesting that the sterling rates of pay should be converted in full, from the begin ning of June, at the exchange rate

Addressing the meeting, he said: current on the Inst day of each

-You will note that we have had montb. As silver was still declin

Turning to the accounts, it will a very successful trading year, ing in value, this request, which would have entailed very henyy be seen from the revenue account and we have every reason to be- additional expenditure, was one that in addition to the loss on work-hieve that this success will bo which your Directors, after due ing of steamers, amounting to maintained during the current granted, and lengthy negotiations £10,187 188 3d., floating staff pen-year The Profit and Loss Account ensued with the result that it was sions, and interest show an increase for the year shows a net profit of panies to may the artarice of their in 1080 of £1,235, 0. ed. and £5,531 European doating staffs on a basis. 9d rospectively over the 1020 of half at 1/0d, and half at current figures After allowing for depre rate commencing from July 1 for ciation and lia a period of six months, ie., until, December 31, 1930, at the end of which period the question was to be reconsidered."

consideration, felt could not be

Revision of Salaries.

th, Managing that, in or the Managing Director, has boon valued at cost and depreciated

ag van lahent his where necessary."

been found necessary to transfer the sum of £138,000 from Contin gency Reserve to cover the loss on Revenue Accounty leaving the sum of £497 18. 2d. to be carried forward to the year 1931.

Your Directors propose to pay a dividend of 20 cents per share, absorbing, 888,400; to pince 82,500 to General Reserve, and to carry. forward to the credit of next year's account the balance, viz: "85,539,80, which it is trusted will meet with.

With regard to depreciation writ-your approval. The auditors have pany's auditors have drawn the Directors have agreed to this, sub- ten off for the year 1930, the Com-applied for an increase in their foes from $250 to 8325. Your attention of your Directors to the book value of the flect which is conject to your approval. siderably above present day, values and they are of the opinion that part of the reserve should be allo- tion of the fleet which is valued at cost, less depreciation based on the life of the various units.

It is with much regret that your

On December the Guilds asked for Directors bave once more to record

an extension of this arrangement a year of adverse conditions. It is

for a further period of six months. no exaggeration to any that the

this time seriously concerned on Your Directors were, however, by

year 1030 was one of the most

account of the further fall in ex difficult and anxious periods

change as well as the absence of through which the Company has

any sign of improvement in trade in China has again been a source conditions, and whilst fully realis ever passed. Shipping companies of keen regret and has greatly re-ing that not only the members of of all nationalities have suffered, stricted the movement of merchan- our floating staff, but practicallycated in further capital deprecia and unfortunately are still suffering digo to and from interior points. everyone in the East was affected

The situation has been ably reby the declining dollar, they felt acutely, from the world-wide de- viewed at the recent annual meet and with their decision I trust you pression in trade and I need only ings of the Hong Kong & Shanghai will agree that so far as the Indo- refer you to published reports both Banking Corporation and the Hong China 8.N. Co., was concerned, the Kong General Chamber of Com utmost that could be granted was at Home and abroad, and more merce. I am sure you will share an extension for three months only, especially to recent editions of such with me the keenest disappointmente., until March 31, 1931, of the a well-known journal as Fairplay, that when hopes were raised and arrangement then in force.

jeanfidence strengthened by the re- "On February 23 last, the Com to convince you of the disastrous portad general agreement in the effect which these conditions have" Autumn between Marshal Chang had upon abipping" activities in all such Liang and the Nanking Government, the situation has now parts of the world. To those, how taken another turn for the worse ever, who follow the trend of events arising from the dispute between the Nanking Government and tha in Chinn, it will be easily realisedCanton section of the Kuomintang. that in addition to the general Uncertainty as to the future is once stagnation of trade, from which we more affecting business and I fear in common with others have suffer the much longed-for period of ed, shipping companies trading ex,peaceful trading is still very clusively in Far Eastern waters, remote. have also had to face many extra difficulties by reason of the con- tinued unrest in China and the

pany accordingly notified the staff and the Guilds that on and after April 1, 1031, or as Articles expir cd, salaries would be paid in full in Hong Kong dollars on the basis of a 1/3d. exchange.

It was the earnest hops of your Directors that the staff would ap preciate the existing difficulties and realise that for a period of nine months a concession had been granted them, which had catailed a very considerable additional ex- penso upon the Company during a time of aente trade depression. Moreover, it must not be overlooked that other shipping companies in various parts of the world had been compelled to reduce the salaries of their staffe, and this without the other directions our regular services added handicap of depreciated

In the South.

From these remarks, shareholders abnormal decline in the value of will realise that due to the causes silver. The low rate of exchange, mentioned, the earnings of our to which I will refer later, was the Yangtze flect wore much depleted most unfavourable over experienced during the year under review. In and business generally was restrict

'ed to a minimum. Chinese civil were on the whole well supported. silver in the ease of the Indo-

I now beg to propose that the Ro port and Accounts be adopted.

This was seconded by Mr, G, H Potta and was carried.

On the preposition of Mr. B. C. Randall, seconded by Mr. A. H. Ribeiro, Mr. M. Manuk was re- stocted to the Board of Directors.

Messrs Percy Smith, Seth and Fleming were re-elected auditors' al a remuneration of 8325 per year on the proposition of Mr. E. J. Ainslie, seconded by Mr. Leung Roshan,

A Dimoult Problem;

Now Gentlemen, to reduce book valuca with a view to bringing them down to the level of present mar ket, or realisable, values presenta a very difficult problem for the simple reason that the latter are The chairman was supported by practically non-existent due to the Mr. H. Overy (Managing Direc enormous amount of idle tonnage tor) and the Acting Secretary (Mr. in the world, and such values F. E. Skinner). Sbareholders: would," therefore, only be based arosent were Mr. J. T. Bagram, upon unreliable or fictitious Mr. G. H. Potts, Mr. B.C estimates. This very point was Randall, Mr. A. H; Riberio, Mr. aptly covered by one of our learn-E. J Ainslie, Mr. D. P. C. Lopes ed Judges at Home only quite rs- and Leung Po-shan. cently when he expressed his views somewhat as follows:

That nobody could have sat in the winding Up Court during the last eighteen months or two. years and dealt with the affairs of shipping companies without. being well aware that the esti mated value of a steamship, even if a new one, bore little. relation to the figure it would realise at forced sale." Further do illustrate the diffi-

warfare, banditry, labour troubles Ia the southern charter trades, China Steam Navigation Co., how-culties attached to this important and further taxation, together with however, business throughout the ever, the same sterling salaries, are increasing port charges and operat year was in a very depressed con-being paid to-day as were paid as question, it is of particular interest to refer to recent statistics prepar- ing costs, entirely upset any feel-dition, tonnage being greatly in far back as 1010, and other con- ings of optimism, indulged in by excess of demand and with little or cessions such as home lenye pay, ed by the British Chamber of Ship- merchants at the beginning of the no prospect of improvement, several return passages for husbands, wives German and Norwegian steamers and two children up to the age were withdrawn from the Coast and of 17 years, subsistence allowance, a large amount of tonnage laid up married men's allowance, enfe navi at both Hong Kong and Singapore. gation bonus and pensions still Towards the end of the year the charter rate from Saigon to Hong Kong was as low as 10 cents quer

year,

alone.

Yangiare Fleet,

New Shipping Taxation

continue..

ping which, according to Home papers, showed & 336 per cent. in- crease in laid up tonnage in British ports alone during the year 1930. This figures reveal atriking evidence of the extent of the world-wide depression in trade by the fact that on January 12, 1830, the idle ships in British ports totalled 189 of 305,429 not tons, whereas by January 1, 1931, this figure had risen to 668 idle ships of 1,893,247 The British Chamber of Ship-

Out Too Drastic, The Guilds, however, considered that the reduction to 1/6d, was too drastic a cut, and requested that the Company should revert to the tone. basis of half at 1/0d, and half at

EXCHANGE RATES.

(BRITISH WIRELEAS SERVİCE].

Paris New York Brussels Geneva Amsterdam

Milan Berlin

Vienna

Prague

Rugby, June 16.

124.20

4.86 15/32

-34.03)

25.05

12.081

92.921

20.401

Stockholm Copenhagen Oslo

18.15

18:10

18.16

34.601

1042

Helsingfors Madrid 'Lisbon: Athons

1031

48.9

7101

376

Bucharest

817

Вислов Aires

1;

Montevideo

281.

1/52

1/2

2/1

Rio

Bombay Shanghai....

Hong Kong Yokohama

320/32

·Silver, spot &, forward 121

SHIPBUILDERS,

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OXY-ACETYLENE AND ELECTRIC WELDERS,

MECHANICAL AND

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DRY DOCK-

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THE TAIKOO DOCKYARD & ENGINEERING COMPANY

Salvage Tug "Taikoo

ANDREASYIREúess Calta

V.P.G.N. 600 Mr7826

Length 787 Foot Length on Blocks 750 Foot. Depth on Centre of STI (H.W.0.S.T.).34 ft. 6 in..

THREE SLIPWAYS

Capable of Handling Ships Up to 4,173 Tons Displacement Electric Crane at Sea Wal, Capable of Lifting 100 Tons at 70 Feet Badlas.

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NEXT SAILINGS FROM HONG KONG

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19th July

28th July

9th Aug,

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For Freight and Passages apply to s

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FAR EASTERN MAIL-FREIGHT—and PASSENGER SERVICE between

JAPAN, CHINA, HONG KONG, PHI LIPPINES, STRAITS SETTLEMENTS,

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SAILINGS TO. EUROPE,

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LEAVING HONG KOo.

M.V. "BAUERLAND" (1) Genos, Barcelona, Antwerp,

Botterdam & Hamburg- M.V. "RAMSES”. (1) Genoa, Marcillos, Rotterdam

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Other Ports of Call if Inducement offers, ARRIVALS FROM EUROPE.

M.V: "LEVERKUSEN B.8.

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DUE HONG KONG.

19 June

6 July

19 July

4 Aug

"Saħject⋅ to: Alteratión" without Noties.

(1) Excellent Accommodation for Passengers, Qualided Surgeon carried.

Fare from Hong Kong to Genoa from £70.0.0.

A considerable portion of the Company's fleet, as you are aware, is employed on the Yangtze River, extending as far as Chungking The general conditions prevailing | picul. on the river during the year 1930

This acute depression was inton were most unsettled and businesssified by the strict enforcement, was conducted with the greatest from August 1, of the Chinese Im difficulty and not without consider migration Restriction Ordnance of able anxiety. Firing on merchant 1928 in the Federated Malay States. current rate. This, however, did ping's most striking estimates, ships, irrespective of nationality; I would Here explain that, owing not effect the saving desired, the however, according to these reports, was prevalent in the early part of to serious unemployment in the current rate having fallen to as are those relating to the total gross the year, increasing in intensity Straits, the Government of Malaya low as 1/ and even less. Negotin-tonnage laid up throughout the towards October. According to published reports, and I think with found it necessary to restrict im- tions are still in progress in con- world, which on January 1, 1937, aut exaggeration, there were over migration and under this arrange nection with this matter, and, in was estimated at 8,405,000 tons, or 100 instances of merchant ships be- ment our Company, together with the interests of the Company and expressed in dead weight or total

I do not think there is anything ing fired on in the middle section others engaged regularly in the the men themselves, I earnestly carrying capacity no less than of the Yangtze River above Hau-coolie passenger trade, were not hope that wise counsels will prevail 12.609,000 tons. These are remark else of importance which I aced kow during September and October allowed to carry more than a speci- and a friendly conclusion be reachable figures Gentlemen, and you comment upon, except to mention

fed quota of male emigrants per ed.

will appreciate the difficulty under that the auditors have recently re- On the Lower Yanglaze, merchant month. These restrictions are still I need scarcely add that no one present conditions of trade of arquested your sanction to an increase ships were also subjected to attacks in force and as the coolie passenger moore then the Directors and the riving at a true, cstimate of what in their annual fee. The work at by so-called Communists or bandits trade, to Singapore and Penang, General Managers, regrets the ship is actually worth to-day tached to auditing the Company's axhors. These waditions necessitat forms an important part of our necessity for the reduction as they The question is certainly one of accounts is considerable, involving ad arrangements whereby, with the business to these ports, the offeot have a very real appreciation of great importance to all shipping supervision in Hong Kong, Shang- assistance of I. M, Navy, British of the restrictions lids been a serious the effect it has upon all concerned, companies, and your Directors are hai and London, and, due to low

none better than the latter's staff giving their careful consideration exchange, the auditors feel com ships on the Yangtsto were providecline in our passenger cardinge.

which has been on a 1/6d. basis to the views put forward by the pelled to make this request. Your ed with armed guards and this, to

since last September. Present con-

| Directors consider it is a fesson- auditors. gether with the protection afforded by foreign gunboats, enabled, trade When addressing you. Inst year I ditions of shipping and trade gen

abit one, and therefore, recommend Question of Retrenchment. to be carried on. In this connec- referred to the tendency of porterally, however, are such, and the

for your approval that the annual tion, I would once more express authorities to increase their charges future so uncertain, that drastic Very recently the General Man fee of 80,000 be increased to 80,000 the Company's keen appreciation of without duo consideration of the economy is a vital necessity.

To offset as far as possible the agers received a telogram from car for the current year.

I now beg to move the following the valuable halp afforded by His fact that shipping way passing Majesty's Forces during another through a period of great de increased outlay due to law ertain influential shareholders at year of exceptional handicaps, and pression, and I indicated that such change, tariff rates of freight, as Newcastle-on-Tyne, who, being Resolution :

That the Report and Statement without which both lives and pro-efforts to increase revenue might well de passage rates, were, in con- quite naturally alarmed, at the

of Accounts as presented, be the transfer perty would have been seriously have the opposite effect by stifling junction with other conference. year's showing, advocated drastic

adopted, including endangered and the operation of shipping enterprise and industry lines, raised whenever and wherever retrenchment.

The suggested economies are a of £183,000 from Contingency merchant tonnage rendered well I regret, that, despite combined possible. Strict attention has been

Reserve to Revenue Account, and nigh inmossible. I alap, take this efforts to avoid such increased paid to rigid economy and every reduction of management commis

that the sum of £197, 18, 23. be opportunity of conveying to the charges, the year under review has possible effort made to reduce exsion, directors fees, and all salaries.

carried forward to next year, Fedder Street, Hong Kong. Company's floating and shore staffs brought further financial burdens|penditure to an absolute minimum 1 is not clear to me whether those

Hon Mr CG: 8 Mackie second- along the Yangtoto our grateful in the shape of drastis surveys and Due to her general unsuitability shareholders realise that the Office thanks for their loyal and willing higher scales of charges for buoy for the Company's presant day ra staff on shore are employed by the led the resolution which was carried co-operation under very trying con hire, light dues, Sunday and hoh-quirements, and the prohibitive General Managers, not the Indo unanimously,

Chinh Steam Navigation Co., and. cost of reconditioning, the 2.5

Other Business, ditions.

day permite, etc.

are paid out of the commission 're- Bandit Outrages.

The serious decline in the value Mingsang, a vessel 24 years old,

was sold in August-unfortunately, ferred to, in sterling at I/¶d.

On the proposition of Mr EC. To add to the difficulties already of silver has had a disastrous effect a loss on Bet book value. To Further, I must emphasise that Hall, scoonded by Mr. A. Piercy,

upon the results of Inst year's

shore property is owned by the mentioned, the Company suffered a

the Board of Directors while Mr. savere loss resulting from the out working, the average rate of or retain her would have entailed a rages committed at Yochow and change for the year, 1930 being 1/4heavier lose, and with no prospect General Managers and some small Mr. A. H. White was re-elected on Changsha in July by Chinese Com-/32d. as compared with 1/10 of employing her, to advantage, agencies are kept open at a useful Ho Leung proposed and Mr. M. H

your Directors considered it ad less purely to further the Indo-

La seconded the re-election of 11/16d. in 1929. munists or banditë, atyling them.

Iprice obtainabla,

realised, however, that the General Motors John Flatning and A. Rit- Belves "The 5th Red Army, when to that the position may be clear. visable to dispose of her at the best China Co. interests. I want it the Company's tug Shunwo and ly understood I would explain that The new river steamer Paowo, Managers are by far the largest chiens auditors for the current the hulk Changlee were looted and the Company's earnings are mainly built by the Shanghai Dock & En shareholders. Among those present were burnt the latter beyond repair in depreciated silver, whereas agineering Co., was launched at The present: Directors Foes pre and cargo in godowns wantonly large proportion of its expenses, Shanghai in August Bud, since £1,500 per annum, divided between Hon Mr. J. J. Paterson (chair), destroyed. Here again H.M. Navy such as home leave pay, passages, commencing her employment on the the members of the board. The Hon, Mr. C. G. 8 Mackie, Messra rendered valuable assistance in pro- pensions, European Boating staff Shanghai-Icheng line, hus proved a Directors have decided to reduce A White (directors), D. V. tecting the lives of both Chinese wages, insurance of the fest, et valuable acquisition to the Com their fees to £500 for the current Stevenson (solicitor) A Piercy, and foreign subject Glaftig for are in aberling or based on sterling pany's Feet Apart from her moet-year and to continue to nocept siel Ada Silva, A Murdoch, R. B ming, F. C. Hall, Au Tang Ting, losses incurred have been duly for It can, therefore, be seen, that the satisfactory dargo-carrying: fopilis reduced remuneration until general dougall How Leng Fle warded through Official channels, offect of a fall change is to in- ties, she mallent Brst-class and conditions improvoking

Chur Sui Nam, Cant, T. 1. Lauren to the Nanking Government, and I créase expenses without benelitting intermediate accommodation, which Salaries have been dealt with MH Lo, Fung Hun. Chan Wing: Trust a settlement will be pressed earnings which depend on the state should appeal to the travelling elsewhere, in this speech.

Bón, D.S.O., o Shaf Kit and J. of the freight market vizeznaniter Apublié, surem

(Continued on niat Column):

Baptista as strongly as possible.

•

(2) Limited Passenger Accommodation, qualified Surgeon carried

For further particulars please apply to Agents

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