1939-03-28 — Page 11

HONGKONG DAILY PRESS

FINANCE

SMALL PROPORTION OF EARNINGS FOR

DISTRIBUTION

Comments At Meeting Of H.K. And Whampao Dock Co., Ltd.

Comments on the small proportion of the company's earnings whleb the Board of Directors recommended should be distributed in dividends and bonus"ware made by Mr. G. V. T. Marshati, wh.003. he seconded the adoption of the seport and balance sheet for 1939 at the annual general meeting of the Hongkong and Wham- poa Dock Company Ltd., held at the company's offices in Queen's Building yesterday.

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of

activities, especially from Shang-felt that I did, I can but apologise hal if China's national dollar re- and, if so desired, would, willingly main at its prosent level.

call for a vote of confidence. Prudence therefore demands I have great faith in the Direc- that we conserve our resources, tora myself, but I did, and do still, always keeptag it within our feel that a more generous const- power, without again dangerously deration

shareholders. WAS increasing our pverdraft to im-justiced on the figures for 1938. prove our equipment and facil fully appreciate that Reserves tles, and keep ourselves in the must and should be built up, but forefront. Under our present Chlef I do not perhaps take such Manager and with our lively re- pessimistic view of the future as. collections of several years of apparently, the Directors do. It difficulty, you may rest assured is obvious that the Company can- that, in this respect, no extra- not make

unless it is a pront vagance will be permitted, but sufficiently and suitably employed, only such improvements as make but the amount of such employ- for economy, efficiency, and the ment to show a satisfactory year enhancement of our reputation in is a very different one to what was the eyes of shipowners.

required before the re-organisation of the Company.

When the earning power of these improvements, some of which I have already mentioned, has been

A

Lin-

COMPANY MORE EFFICIENT A net profit of $1,605,471.02 was licence from Messrs. Harland &

It may be impertinent to ven reported by the Chairman of Direc-Wolff, Ltd., who have been espe tors, Hon. Mr. S. H. Dodwell, who cially helpful in making available established, the Board will un-ture to express an opinion, but I stated that the question of appro- to us all their great experience. (doubtedly give careful considera-believe" and hope the Company is eficient state priation on this occaston had been Two, steamers of importance were tion to the capitalization of the a much more riven more consideration by the delivered during the year, the reserves thus employed. They re-than it has been' for some years 10, It therefore board than it ever had before. He "Wing Sang" and "Tal Sang" for gard this method of compensating and, that being said the board appreciated only cur esteemed ellents, the Indo-shareholders for thet: past sacri- follows that the necessary employ- too well the saciifice made by China S N Co., Ltd. These ships nces as a sounder one than the ment of the Company to show re- shareholders in 1935, but that was were each fitted with four cylinder distribution

of large dividends sults must be correspondingly only three years ago, and it was triple expansion engines with Gota during abnormal years, which can-easier to obtain. too soon. at the beginning of 1939, verken Exhaust Tarbines, giving not be maintained, and I trust to allow themselves to be carried the vessels a loaded speed of 14 therefore it may prove feasible in away by the results of two abnor-knits. Of a distinctive and shape the not too distant future. mal years' trading.

ly appearance we believe that these ships wil bring us nothing but credit. This considerable amount Changes in the Directorate were of new tonnage has given plenty confirmed by shareholders. The of work to our staff, while at the Hon. Mr. M. K. Le replaced Bir same time, we have not experienc- Robert Ho Tung, who had resigneded what we had come to regard as for reasons of health and Mr. D. normal, a slack summer period for F: Landale took the seat of the pair work. Hon. Mr. J. J. Paterson; who had gone on long leave and resigned. The Chairman" paid a tribute to the services rendered by Sir Robertoer and a part of November in . Ho Hung

DIRECTORATE CHANGES

//

EUROPEAN CONTACTS

Mr. Cock spent September, Octo-

Europe and took the opportunity į Those present were the Hon. Mr.to call on our clients there, renew-

S. H. Dodwell (Chairman), Mr. Ding and refreshing personal com-

SITUATION OBSCURE From the point of view also, of the obscurity surrounding the Eastern situation ang in- ternational affairs · generally, your directors recommend a cautious policy and therefore while we have every reason to be well satisfied with the re- markable progress made since 1935; I earnestly ask you, for the reasons I have given, to approve the allocations pro- posed by your board, "

I cannot close my remarks with-

F. Landale, Mr. J. H. Jessen. Mr. tacts made by him in 1935. The out à reference to the retirement

V. T. Marshall, Shum Hip-tons. W. Brown, A. Vaswani, W. L Mac: kenzie, N. V. A. Croucher, Wong Pak-kan"

ask We

Many shareholders of to-day are very dependent on dividends from investments and they, not 'naturally, want as big a dividend as is possible to get, but I hope none would urge the Directors to adopt a policy without thought of the future, and, conversely, few would endorse what I may per- haps be permitted to describe as the too conservative policy which some of us think has been adopted towards 1938.

If instead of carrying forward to 1539. $373,107 odd, a little more thought for the shareholders ·had been given, a general disappoint- ment would not have been created. BONUS TO STAFF

to

those gloomy years when a divi- dend cannot be declared-days the Directors may see but which I cannot-the Company will never

mabic to give tangible appre ciation of the efforts of the Staff, even if shareholders may have to forego a dividend. :

And, here, it is opportune for më 5. T. Walamson, Mr. D. Drüm-heavy calls made on our staff have from the board of Sir Robert Ho Lo received the usual ready and skil- Tung. In November, to our great.

disassociate myself entirely mond, Hon.

M. K. Mr.

from them

with any remarks on the relation- (Directors), Mr. E. Cock (Chiefful response

and regret, we received a letter from trust the special Manager) Mr E. L. Hoste (Secrewe

re- Sir Robert tendering his resigna-ship of the amount paid in divi-

dends and/or bonus to tion for you

and the tary) and the following share cognition

reasons of health. Sir

the holders:--Messrs. W. W. Rac, M. Hmake will have your approval.

Robert joined your board in 1920 amount paid as bonus" to

Staff, Such comparisons" are Lo, Leung Fat-tin, Lo Kook-hang, I have of course. read the and during the succeeding years. Lo Koon-han, Archibald David G. anonymous correspondence in our many of them ascult ones. his odious. It is the Staff we look to local papers expressing disappoint-shrewd advice and far-sighted for successful years and I should ment at the small proportion of counsels have proved invaluable like to feel that when we reach our earnings which the board re-to his colleagues. commend should be distributed in I am sure you will all join with dividends and bonus. I have also me in expressing our regret at the had a letter from, a shareholder step he has felt it necessary to "expressing similar views on behalf take, and our hope that his health himself and other shareholders, may be restored. We have invited method af criticism infinitely the Hon. Mr. M. K. Lo to take Sir preferable to anonymous letters to Robert's place, feeling confident

I have exchanged letters with obvious that, with the reputation. Mr. "Lo the press, to which, for

enjoys in the Colony, his appoint-tribution of the amount available the Chairman regarding the dis- reasons, we cannot reply.

The views of shareholders are ment will be cordially endorsed at.

for 1938, and now am satised of course at all times welcome to this Meeting.

nothing can be done to alter the Since the report has been the board, and I hasten to assure

distribution us has been included The improvement which we an- them that the question of appro-published, the Hon. Mr. J. J. Pater- ticipated, and to which I referred priation on this occasion has had son has gone on long leave and the Report for 1938, but I would In my speech last year, was greater more consideration than perhaps has resigned. We have invited iterate that I do than we expected and the gross it ever had before. The board Mr. Landale to join the board and holders have but to express their disappointment with a declared profit of $2,121,023.04 is the largest appreciates only too well the you will be asked to confirm this

dividend

ensure both the with the other appointment to we have ever carned by work. for sacrifice made by shareholders in

which I have referred. I now beg Directors, and if it be possible. in Įsympathetic consideration of your in our best previous year, namely 1935, and have every reason to 1921, we were helped by exchange believe that that sacrifice will prove to propose the adoption of the one way or another a more liberal fluctuations which worked out to eventually not to have been made report and accounts as circulated.

distribution as far as concerns 1939.

CHAIRMAN'S SPEECH The Chairman said:- "Gentleman,The figures which your board have the pleasure to put before you have had our most, serious consideration. The year commenced with nearly all our typhoon repairs completed, the ex- ception being the "Talamba" which did not leave our hands until March 15, 1938.

our advantage.

The net profit is $1,605,47192 and shows the effect of now construction in that it is less than might be expected, while stocks of material which are reduced from $3,221,261.27 to $2.519,379.11 are likewise 207- erned by the new work in hand and are at values less than re- placemeat prices. Depreciation is on the usual basis and is considered ample.

in vain.

At the same time when we reflect." upon the uncertainty of the outlook in 1935-only 3 years ago-it is surely foo soon at the beginning of 1939 "to. permit ourselves to be carried away by the results of two abnormal years' trading. For these two last years must be considered as coming within that category.

One of the great difficulties the - You will observe with pleasure, management has always had in.

MR. MARSHALL'S COMMENTS

Mr. G: V. T. Marshall then rose. He said:-

to

."

feel share-.

the and

TUESDAY, MARCH 28, 1939. —PAGE 11!

LAMMERTS AUCTIONS

PUBLIC AUCTION.

SANDEMAN

SHERRY & PORT Obtainable everywhere.

HONGKONG SOCIETY FOR THE PROTECTION OF CHILDREN

under the distinguished patronage

ΟΙ

H.E, SIR GEOFFRY NORTHCOTE, K,0.M.G.

AND.

LADY NORTHCOTE,

The ANNUAL BALL

will be held at

PENINSULA HOTEL

ON

FRIDAY, APRIL 14

AT 9.30 PM.

Tickets $4.00 each including Supper

!

Tables can be reserved at Hongkong Hotel

or Peninsula Hotel.

WEATHER REPORT PUBLIC AUCTION.

HONGKONG ROYAL OBSERVATORY

Barometer (at sea level); 29.09 Ins.

19 a.m. March 27. THE Undersigned have received

Temperature, 67 F. Humidity 95 per cent. Wind Direction, Bast. Wind Force (Beaufort), 4,

Temperature; maximum yesterday,

83 F.

Temperature; minimum last night,

If the experience the Chairman has been taught since 1933. as It may appear somewhat para-expressed, in his speech at doxical for me to rise to second Royal Hongkong Golf Club, the adoption of the Report and repeated, in part, by a shareholder Accounts for 1938 when I confess at the Meeting of the Hongkong that i am the author of two let- and Kowloon Wharf and Godown ters which appeared in the local Co., Ltd., expressed in this one press under the pseudonym of sentence: "the best course is to go "Investment." and, therefore, am ahead just as if no incertainties privileged to accept the Chair-exist," a remark equally applicable man's very mild rebuke for writing to the Press.

50 to the direction of this Company

that has not been forgotten, 62 F... Informally discussing these two surely I trust, that, due partly to your the past and which I

shareholders reasonably Rainfall for 24 hrs. ending 10th fear they letters with Mr. Cock, some doubt may look forward to more liberal support of the new issue, the over- always will have is to keep our was expressed of my willingness consideration in the immediate Total rainfall since January 1st,

to-day, nil. draft is down by $2.286,288.32 on work on an even keel. Only too to second this Resolution, but in fature. Last year, but nevertheless is still often it has been a case of feasts reply I stated I should be parti-

4.03 ina substantial.

alternating with famines, and in-cularly pleased to and thus have Jution for the adoption of the Re-

I now beg to second the Reso- Against an average of, 5.30 ins. During 1938 we brought our giant variably the more sumptuous the the opportunity of expressing the port and Accounts for 1938...

Bunset to-night, 6.37 p.m. erane inte full use and it has fully feast, the more severe the famint. views of the several shareholders

Bunrise to-morrow, 6.21 am. Justified its purchase and erection What we all want I am sure, is a who have approached me recently adopted.

The report was panimously

4 p.m. March 7. We also purchased a large lathe

steady return on our investments

Barometer "(at sea level), 29.87 ina. which has been installed in a tem one that is fair alike to our share-time I will very briefly outline my If I may have a Httle of your

CHAIRMAN'S REPLY The Chairman: Mr. Marshall is Humidity, 93 per cent.

Temperature, 63 F. porary site mill it can be trans- holders and our clients, and which, attitude towards the Company. not only the author of the anony-Wind Direction, East ferred to the new heavy, machine in time, will give the Dock Com-

TALK WITH CHIEF MANAGER shop which I referred to last year.pany its proper place amongst the

mous letters but also the letters wind Face (Beaufort), 3. Ever since this Company was from the shareholders to which L The heavy shop is still under con- sound and stable industrial in-

Maximum temperature, 72 struction at this date but should vestments of the Colony. To at hands of our Chief Manager, so

re-organised and placed in the referred.

Minimum temperature, 62, We shall certainly keep Mr. Rainfall, 0.00. be ready for use by the end of 1933. tain that end a conservative non-ably supported by Mr. Hoste, the Marshall's views before us. I said

During the year we completed 17 now ships with a total tourage of opportunist polley is obligatory public, has had the greatest con- in my speech, however, the Board. to-day, and although the adoption ndence in the Company, and my consider it a sounder policy to re- of it appears to have once more confidence is strengthenêti hy award the whareholders by capitalis- plunged some shareholders into Last year I referred to the fact the mists of disappointment, it is, casual remark made to me by Mr. ing some of the reserves when we that we had orders for five Diesel in the considered judgment of ock when that re-organisation

had been completed. · Our first Diesel engine your Board, the only course, f engines. ran its shop trials on May 13, these mists are ever to be dispelled Mr. Cock said: “If I can't make 1933, and was installed in the Motor by the continuous sunshine of re- the Company pay 1 will eat my Tessel "Mamutu which left Honggular dividends. :... kong in June, Our second and

11,843.

DIESEL ENGINES

third engines were installed in the

"BHANGHAI INSECURITY

are satisfied that they are not being economically used,

I think you will agree that we

cannot pay an enormous dividend

| hat."

sa we; might lose a lot of our 'As, 'apparently, Mr. Cock does business in that way. Circum- not appear to have eaten his hat, stances forced us to reduce our Motor ship "Matafele" which was We must bear in mind that dur there is no reason for anyone to capital in 1935 rather below what delivered to her owners, Messing the last two years there has lose conndence in the future of it should be. Da Burns Philp & Co., Ltd., in, Nove-been a certain amount of in-the Company, irrespective of ber, 1938.

security in Shanghai where the when, and what,' competition

OTHER BUSINESS

fonth.

Height

Kong

Standard Time

Height,

HÙNG TONG THE THI From 28 Mar. to 3 Apr. 1939-

HIGH WATER,

LOW WAZIR

Hong'

Hong

Kong

Standard

Time.

b. m.

·Tues, 28

Wed, 29

03 10 4.0

1401

0

2118

Q5 0 15 23 *06 26

4 007 23

*23 26-

18

· 00 37.

16 52

07:19

003417

1925 0824

The re-appointment of Messrs. Two more engines for these Yards have been working under eventually may have to be faced. H. Jessen and a T. Williamson Thur 20 owners are shortly due for delivery very considerable hardships; while, But to revert to those two let-to the Board of Directors wis un- and I would like to thank Messrs. at the same time, the vast ship- tera 1 addressed to the Press un- animously passed, as was the Burns Philp and their Superinten. building and engineering resources der the cloak of anonymity. I appointments of the Bou, Mr, M. Bat. 1 dent, Mr. Corrighan, for the trust of Japan have mainly been occu- sincerely hope they did not cause R. Lo and Mr. D. F. Landale. they placed in us in this new pled in satisfying national re- any offence to the Directors or in Mesars, Lowe, Bingham and Bun branch of our activities, These quirements. When things return any way insinuate that I was Matthews and Mesara, Ferry Smith, engines on the Burmeister & Wain to normal, we must expect to feel trying to indicate # want of con- Beth____ and Fleming were System have been built under sub-the embarrassing effects of their adence in those Directors. If it is animously re-elected Auditors,

'06 28

5410158 1.8. 24 2024 6 6 1357 27 Mon. 30857 58,02 36157 3119 16 5144591

instructions

TO SELL BY

PUBLIC AUCTION

OX

THURSDAY, the 30th MARCH, 1939

Commencing at 11.40 a.m.

At their Bales Room, No. 2 'Con- naught Road, Central, Ground Floor.

A QUANTITY OF MISCEL

LANEOUS GOODS

Comprising:

Khaki Coats, Trousers, Shorts, Breeches, Helmets, Greatcoats, Shoes, Boots, Caps, Drab Hosetops, Empty Cartridge Cases, etc., etc.

also

10 Pieces Square Iron Bars

1 Bale Paper

1 Reel Paper

1 Keg Iron Nails'

1 Drum Carbide

3. Pieces Building Slabs...

9 Bolts Ninghai Cord

4 Crates Baths with Fittings 1°Enamel Bath

4. Cases Iron Wood Screws

1 Case Steel Files

arid

Undersigned have received instructions from the Official Receiver, Supreme Court

"to sell by

PUBLIC AUCTION

on

TUESDAY," the 25th MARCH, 1939

Commencing at 11 am.

At No. 58 Belchers Street

"THE STOCK-IN-TRADE,

FURNITURE. AND FIXTURES

of the Kwong Kam Loong Chan, in bankruptcy

to be sold in One Lot

(The Stock consists of. Teak Logs and Teak Planks, etc.)'

Inspection orders may be had from the Undersigned.

On VIEW from SATURDAY,

the 25th MARCH, 1939

Terms: As Customery.

LAMMERT BROS..

AUCTIONEERS.

THE

|PUBLIC_AUCTION.

HE Undersigned have received

Instructions

to sell by

PUBLIC AUCTION

WEDNESDAY, the 29th MARCH, 1939

Commencing at 10.30 am.

At No. 11A, Carnarvon Road, Kowloon. (Top floor).

A QUANTITY OF VALUABLE HOUSEHOLD FURNITURE

One Radio Gramophone

2.34

One Electric Refrigerator "Gibson"

On" VIEW from TUESDAY, the 28th, MARCH, 1939.

Terms: Cash on Delivery.

LAMMERT BROS..

AUCTIONEERS.

PUBLIC AUCTION.

THE Undersigned have received

instructions

TO SELL BY

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FRIDAY, the 31st MARCH, 1839

Commencing at 5.15 pm.

At their Bales Room, No. 2 Con- naught Road, Central. (Room No. 205, 2nd Floor).

A VALUABLE COLLECTION OF POSTAGE STAMPS

wuse" "Refrigerator

On VIEW from THURSDAY

the 30th, MARCH, 1999,

Cash on Delivery

AMMERT BROS.

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