1933-06-08 — Page 7

NANKING-SHANGHAI RAILWAY

INVESTORS PRESS FOR PROTECTION OF THEIR INTERESTS

WASTE AND BAD MANAGEMENT”

Shanghai, June 2nd. For the purpose, of considering steps to protect the interests of all investors in the Nanking-Shanghai Railway, a meeting of bondholders and holders of net profit certificates was held yesterday evening in the offices of Messrs. A. R Burkill Sons, 2. Canton Road.

Mr. D. M. Gubbay, honerury and temporary secretary to the meeting. who opened the proceedings said:

Speaking for myself, and no doubt for others alse, I feel that by focus- sing public attention in the Press on the doings of this railway, and its shortcomings, and by enlisting the active support of the British Residents' Association and other public bodies, and by urging that questions be asked in the House of Commons, this Association of Inves tors can be, and will be, of real

nese Corporation and our own Con- sular authorities when the press attention of the Chinese Govern ment regarding the undoubted rights, anr special security which the Nanking-Shanghai Railway en- joys, all of which are very clearly stated in the original loan agree ment. To mention just two of these pledges: The principal and interest on this loan is unconditionally guar anteed by the Chinese Government, and secured by a specific first mort- gage charge on the permanent way and rolling stock, and entire pro perty of the railway, with all traffic and other earning, for the benefit of bondholders. Furthermore, the agreement provides that in the event of default in principal or ine. terest the railway appurtenances are to be handed over to trustees for the protection of bondholders' in- terests.

HONG KONG DAILY PRESS, THURSDAY, JUNE 8, 1933

GUNBOATS BUSY IN ANOTHER

SOUTH KIANGSI

Sharp Lesson to the

Reds

STREET WIDENING AND ** SQUEEZE"

(From Our Own Oorrespondent.)

accountant of tag time to which I a referring was Mr. Lancaster,

Kanhaien, May 23. who gave me a description of the

Some time ago we were promis way in which he was hampered ined small gunboats to protect the the performance of his duties. The river route and to make communi management of his staff was taken cations safer, but as the water was out of his bands. If he reported low there were plenty of excuses unfavourably on one of his staff the for their non uk was promoted. He therefore sent in his resignation, and was asked to remain for another year in order to indust, his successor. You use that two leading British officials had to leave because their positions were rendered untenable.

Ji

arrival. However the rains hays done their part, and the river is very high, and one gunboat at least has arrived. It was acting as escort for some boats carrying grain, and the situation can be realized, when it is known that at a several places along the way the Reds or the bandits at- tacked the gunboat, and there were a few minor causalties on board. the use of the guns however taught the Rods a leason, which some of them will not need to be repented, the houses in which they were tak ing refuge and from which they were firing being reduced to ruins Those who have been told, this is not a claim in a few minutes. un the earnings at all. We did not could, made off immediately. Yes,

Not Claim on Earnlaga.

If we were to approach the Gov- ernment and ask why we were not paid I know we should be told that earnings are not enough, but as you

river for a few months would in- deed ease the situation, and the merchants would benefit thereby.

An Educational Jest.

every

assistance to the British and Chi-invest our money in a railway, we a few of these small boats on this. put our money out on the guarantee of the Chinese Government, and whether the railway pays or does not pay the Government should pay us. Why does not the railway pay to-day? Largely through military interference. They would also tell Educational pranke are as they were for years prevented now and then indulged in, and just from earning owing to internecine recently some one aired his under- warfare. That has nothing to do standing of the matter of compul with us, because in the loan agree-

sory education, by suggesting that the present occupiers of the school. ment it is distinctly laid down that desks should only have half a day, the Government undertakes to pre- and another set of people other- serve a zone ten miles wide on eitherwise destined to remain without side of the railway free from mili- any education at all, should occupy tary interference or civil commo- the desks for the other half of tion. If they are unable to do it, that day; thus a larger number why should we lose ? `-

would get something of an educa- tion. I must confess that it took some time to get one's nerves slea- died after reading the proposi tion. It really means let no one be educated, but let a few mora learn to read and write, just a very little. What about the future of all higher schools, where will the students be found to keep them going. Oh it is all so shallow.

A railway engineer, familiar for many years with rail business in China, told him that six engineers would be sufficient to carry on the business of the Nanking Shanghai Gentlemen, words lose their signi- Railway, yet he was informed there

were no fewer than 84 on the pay ficance if obligations and respon aibilities of this kind are openly dis-roll, which, it seemed to him, was regarded by the Chinese Govern- using the confidence of investors. ment. It is to exaggeration to say that ever since the Chinese Gov- erament has become more closely identified with the administration of this railway, the security from the bondholders' point of view bas been whittled down almost to vanishing point. While there are many who can, and who do, sym pathise with Chinese national as- pirations, one must point out, that China in claiming her just rights must not lost sight of the fact that such rights also carry along with them certain responsibilities and obligations, not the least of which is que fulfilment of agreements freely entered into by her. Turn ing from the political aspect of this question to its financial side. I

cannot understand why the Nan- king-Shanghai Railway do not pub. fish in the press monthly trafic returns, both as regarde passengers and freight, particularly disclosing such government traffic that the railway may be forced to carry, but for which it is not paid, except in valueless vouchers,

Need for Economics,

Furthermore, the cash position of the railway might be rendered moré clear, especially in regard to liabi lities already incurred, and their priority to one another.

And one would also like to re- ceive some assurance that the ad- ministration is giving the closest attention to the economic working of the railway,

Mr. Harold Reynell then consent ed to take the chair at the meeting, he, together with Messrs. W. A. N. Heygato and G. J. W. Morgan, was elected to constitute a deputa-

Mr. Anderson said he had noticed that in London the previous day

MILLION

DOLLAR CITY BUILDING

NEW HOME FOR BANK OF EAST ASIA IN DES VOEUX ROAD

Ten-storied Structure To Be

Commenced In July

Work will commence shortly in Des Vœux Road on the site now occupied by the Bank of East Asia, to put up a ten-storied building which will be the new home of that Bank,

It is understood that the work of demolishing the present build. ing will commence in July and that the now building will be ready by about July, 1934,

The manager of the Bank of East Asia, in an interview with a representative of the Daily Press, stated that during the course of construction the business of the Bank will be carried on "În the ground floor of Powell's Building, which, until recently, had been the city showroom of the Hang Kong. Electric Company.

EAST ASIA

BANK

O

F

The year 1833 will go down in the newest and most picturesque 'build- annals of the Colony as one in ings in Hong Kong Anyone coming which the city had undergone many into the city from the direction of changes. Work has already started Wanchai will then puss the new in connection with the new home for Bank Building, the Bank annex, the Hong Kong Bank and very soon the Bank of Canton Building, the the City Hall and fountain will be New Sharebrokers' Association (for no more. Then in Queen's Road the which plans will shortly be drawn Chinese Emporium has come into up) the National Commercial and Savings Bank, the 'Bank of East existence,

Asia, Exchange Building, Gloucester Building and finally Jardine, Mutha- son's Building,

One of the features of the new

Tale of Blue Express,

Street Widenings.” Today, far from protesting the Street widening has been taking rolling stock which belonged to place. So it has been shouted in them, they learned of the arrival of the papers, and some streets have been torn down, but the curious a train ferry which would shortly thing is that there is still corne be running rolling stock between thing hidden, which must be done the Nanking spur and the Pukow were you are allowed to rebuild Railway. What would happen to your shop front. Just what that their property, God only knew. He thing is has not so far been put in suggested, however, remembering print, but I am told that you must what happened to the Blue Express, pay a certain levy for every square that they could probably guess, foot you have left of your shop or to the Municipal authori- The Blue Express, he believed, was house not yet paid for, and he under- ties, and the fact that such Tax. 50 far lot of Levy. Squeeze, has not stood it was housing a

been published makes the people In Ice House Street, the new pre- soldiers in some spur railway in pay very little head to the orders mises of the Hong Kong Stock Ex Northern Honan.

to pull down. What will he the change are being constructed," work outcome no one can foretell, bat it commencing early this year. In Des is still true that the people of this Vœux Road, just next to the Bank premises for the Bank of East Asia city and district are very easily of East Asia, the National Com will be an imposing entrance. The bonds of the Nanking-Shanghai made to do anything the Boss re-mercial and Savings Bank have only ground floor has been specially de Railway were nominal at 374, while quires, yes, you are right, the peo- month ago moved into their new signed to suit the requirements of bonds of the Hangchow Railway ple are grass and the officials are and stately home and the decision a book and the upper stories will

Both were equally the Wind.

of the Bank of East Asia to build be suitable for offices. When com- stood at 78. liable to military interference.

a modern structure to house the pleted it will be higher than the bank is in keeping with the build- National Commercial and Savings Why the difference? Was it incor-

Famine and Hunger. rect to suggest that the bonds of

ing development that goes on in all Bank which stands next to it, being the Nanking-Shanghai Railway

The rice situation has been directions in the city. The South about the same height as the Hong were supplied by foreign capital, eased somewhat, but still many side of Des Voeux Road, will, in Kong Stock Exchange Building in and those of the Hangchow Railway cannot get enough to live on. a few years, house, some of the Ico House Street, nearly all by Chinese capital? It had a letter from a man in a town only brought back the fact they had 60 li from here and he describes known so long, that China's word the suffering of the populace, he aa good as its bond-and, he also said that in certain hills there would add, not one cent more.

was found a kind of soil or soft rock which the people were every day digging and mixing it with roots to stop the pains of hunger, he enclosed a sample of it.

Was

Grants on Rehabilitation.

:

I

A Chinese bondholder pointed

You may be interested to know out that under the Boxer Indem nity cortain money has been ear that I received yesterday your is marked for rehabilitation of rail-sues of April 6, 20, 27, and May ways, and asked if the Shanghai. 11, all at one time. It looks as if Nanking Railway bad received any they had been away round by Kin- of this,”

kiang, or perhaps gone North to see the War, but in any case the The chairman replied that a arrival of a steamer brought the grant had been made only for the and many more. There is need forry, which was the property of for improvement, none had arrived for so long that I thought you the Ministry He suggested 'some! Mentioning his long acquaintance of the indemnity funds be earmark were taking an early holiday.

C. A. BUNTING. with the working of the railway, ed to pay for replacement of Mr. A. L. Anderson said:-I bare used the railway both for pleasure damage on the railway during the laat hostilities At the present mo. and business frequently until re-

ment this was a capital expenditure, Couture at the beginning of

tion,

course, traffic" reburns were very poor.

A TECHNICAL OFFENCE CONTRACTOR WHO LET

BUILDING COMPANY DOWN

CONTRACTOR FINED

DROPPED BRICKS ON QUEEN'S ROAD

The Hing Fat Land. Investment

For allowing bricks to be drop- Company were summond before Mr. Scholfield yesterday for a de ped into the Queen's Road Ervin fault of a Sanitary Board notice building under ocnstruction, the requiring them to abate the defec-Yat Hing Company of 48 Lock tive condition of a branch pipe in, hart Road was fined $1000 121, Connaught Road West,

Bergeant Morris who brought Mr. A. el Arculli appeared for the summons stated that about the defence and pleaded not guilty. 8.46 pm on Tuesday he was walk He said that the Sanitary Board, ting in Queen's Road when he saw notice was served, on May 5 in the pavement strewn wită a large structing them to abate the nuis quantity of bricks. On looking up ance within seven daye fastric he saw on top of the wall of the tions were given to contractors, Royal Naval Dockyard, contrac Circular telegrams advocating who informed them that the work to erecting a new roof. As some were being cut in two, and one received a message from the Board being paid by bondholdere out of genuine co-operation among. Gov. had been completed, but later they of the bricks were too large, they

ernment leaders to save the coun their interest.

try from destruction were address that the work had not been pro- half dropped to the ground. This ed by the Shanghai Chamber of perly done. The Company had the was a busy thoroughfare; and the the middle of the roadway to clear Commerce last Wednesday to the work done again, and by May I pedestrains had to walk right into Central Government at Nanking, it was completed. the South-West Political Council at The Magistrate remarked that the obstruction. Since then, how

bricks had been erected. Canton, the Branch Military Coun the summons was in respect of ever, a contrivence to hold the cil at Peiping, the Fokien Provin- May 10.

Then the railway, became a source

A Chinese bondholder ascribed the of increment to the Government, whole trouble to "bad manage under the able direction of Mr.. A ment and wastage of money." Half C. Clear as engineer-in-chief. The a million, he said, had been used time came when Mr. Clear was ask to pay a new loan for rolling stock ed to do something which was alaston of meeting bondholders' in- solutely contrary to the interests of the bondholders.. He fought for

terest.

al Government, Marshal Feng Yu Mr. Arculli said that the work Hsiang, and Mr. Hu Han Min, re- had been started before the issue port the vernacular newspapers. It of the summons, but admitted a Mr. Gubbay and Mr. Anderson was pointed out by the Chamber technical offence. The defendant a week or ten days. I believe it were thanked fout their speeches, that if all Government leaders he host fought for another two days and it was stressed that a definito would work in unison, instead of we really let down by the con- he would have won his case, but statement be obtained as to what maintaining a hostile attitude to unfortunately he threw his hand in profit the railway is making warda one another, a strong force

could easily be sent to the North and resigned The British chief N.C.D.N.

A 17-year-old student of Kako.

Prefecture, has four times attempt- tractor.

gawa Agricultural School, Hyogo A fine of $10 was imposed, Mr. d to derail trains by placing ob Schofield remarking that a techni-structions on the railway bridge cal offenco had been committed. 1over Kakogawa river.

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