1939-04-29 — Page 11

HONGKONG DAILY PRESS

FINANCE

GOOD PROFIT IN YEAR'S ABNORMAL CHINA UNDERWRITERS'

WORKING

Steamboat Co. Pays Tribute

And Bonus To Staffs

ון

A met profit of $371.239.69 for the year ended December 31. 1938, a year featured by conditions In river shipping which" "fluctuated between boom conditions and practical stagnation." was reported by the Hon. Mr. M. K. Lo, Chairman of the Board of Directors, at the annual general meeting of the Hongkong, Canton and Macao Steamboat Co. Ltd., held in the company's offees yesterday.

The Hon. Mr. Lo, however, sounded a note of warning con- cerning prospects for the immediate future. "We have bene- Ated from the abnormal conditions which premied most of hist year," he said, "For that we must be thankful. But he

must be a bold person who, with an utter disregard on the por- tent of the dark clouds gathering ahead of him, would dare view the future with any degree of complacency or with op:- milsm.

Another factor which colved the Directors' соп sideration was the fact that' the purchase would eliminate once and for all a potential source of competition. The activities of the vessel in pre vious years had been a source of concern to the Board.

In December last year the "Sut Tal" was Jaid up. With the surplus of tonnage in the Macao

Line at the time and the fact that for a steamer of her age a general overhaul for a new Load Line certificate was likely to prove to be an expensive item not en- tirely justified by the circum- stances, the Directors decide on the lay up.

ANNUAL MEETING

Reference to the recent fire claim for 3150,000 which was de elded entirely in favour of the company was made by the Hon. Mr. A. 1, Shields, who presided at the fifteenth annual general meeting of China Underwriters, Linated, which was held at the offices of the company, No. 4a, Des Voeux Road Central, at 2.30 p.txt.

The following

R.

were present:- Expenses, excluding Commission. Hon. Mr. A. L. ghleids, (Chairman), have been reduced from $22,539 to Dr. J. W. Anderson, Messrs. R. A $20,358. The Fire Insurance Fund Increased from $78,077 to Dastur, Li Tse-fong and H. R. Start has (Directors), Mr. E. · Childe $93.148. (Secretary), and the following In the Marine Insurance Depart- shareholders: Messrs..N. V. A. Crou- ment, Premiums at $122.942 show cher, H. J. M. de Figueiredo, Chan an increase over the Agure of Hau-30, HL Dreyer, E. L. R. Leitao. $110,363 last year, the increase T. W. Shewan and Wong Tat-choy, being largely due to the collection

CHAIRMAN'S SPEECH

of War Risk premiums. Claims at The Chairman said:-In the Life $48,140 show a very considerable In connection with the "Sul Assurance Department. New Bual-reduction from the high figure (1 Tal" I feel sure you will be gladness premiums at. $126,471 are $102,075 last year which, it will be to know that, consistent with the about the зате e last year's (remembered, arose largely from the The Chairman paid a tribute to appearance of junk and lighters traditional equitable treatment figure. Rehewal Premiums have payment of Typhoon claims. The the loyalty and co-operation of the as competitive carriers in the river. which every servant expects and increased and the total premium present agure is, moreover, const- company's staffs, both ashore and Macao line returns fluctuated. gets at the hands of the Company. income at $661,417 shows an in-derably lower than the 1936. Agure. floating, to the payment to whom The beginning of the year found the entire crew of that steamer crease over the figure of $848,182 Expenses, excluding Commission. at $35.825 are about the same as bonus shareholders present Company's steamers' earnings very is still in the Company's pay-roll last year. of a gave their approval.

satisfactory, but from May onward and on full pay. The Directors Death Claims at $87,852 show a last year, and the Fund has in-

decrease from thecreased from $127,920 to $167.882. Those at the meeting were: The intense competition" gave the Direc-were mindful of the loyal and considerable

etricient service which

of figure of $131,533, last year. Claims ACCIDENT DEPARTMENT Hon. Mr. M., K. Lo (Chairman), tors anxious moments. The com-

missioning of two steamers which the officers and crew had rendered by Maturity are reduced from The results in the Accident De Messrs. L Tse-jong. J. P. Braga, had been laid up for years cut into to the Company for a number of $67.954 to $43,967. Surrenders partment have not been satisfac- D. F. Landale, (directors), Mr;" T. FL (altemate Director for Str our fair share of cargo and passen-years, and as there was a posal-show an increase from $124738 totory owing to a heavy claim ex- crew being needed $137,413. Expenses excluding com-¡perience to one section of the Robert Ho Tung), and the followers then offering and, in addition,bility of the ing shareholders:

resulted in the stoppage of a sub-for the "Lee Hong." they were all mission amounted to $218.446 which | business which has been discon- Messrs, M. H.

is very slightly in excess of last tinued. Lo, WE Kirby, W. A. Hung, Weidy which until then Company's permitted to remain. In service.

As you will no doubt have seen steamers had been receiving from

Life year. The

Assurance Fund The Premiums show a reduction On the from the accounts, most of Com- shows an increase from $691,815 to from $50.945 to 344,178, certain Mação interests.

and the whole Company's steamers may be pany's surplus funds have been $824,436.

Fund shows a decrease from said to have held their own in that invested, the Directors giving pre-

$32,388 to $20,613, Bearing in mind line during the year.

ference to a Fixed Deposit accoun

that the unexpired risk decreases with the Bank and the Hongkong

with the decrease in business, this Government Bonds.

should be adequate to cover - expired risks under the policies without any transfer from Prodt and Loss.

Tat. Luk Pak-to. Kwan Yau-kwong, M. Fernandez and Wong Chik.

CHAIRMAN'S SPEECH The Chairman said: Gentlemen.-"It gives me great pleasure to be in a position to re- port

a favourable

once more

balance in the Company's accounts for the year ended December 31,

1938.

Enost

STAFFS THANKED

Once again the Directors wish to MR. HUNG TSZE. YEE

It is with sincere regret that I thank the Staffs, both Ashore and Floating, for their loyalty and will-record here to-day the death in ing and whole-hearted co-opera- June last year of the late Mr. hon, which is really appreciated. Hung Taze Yec, the manager of The period under review was one Company's Chinese department.

and the staffs, one and all, gave of pany for more than eight years. of unusual activity and anxiety Mr. Hung had been in the Com-" thele best to serve the interests of and during that time had never the Company.

spared himself.

Unfortunately the extension

of the Sino-Japanese hostilities to South China made it neces- sary for us to close our Canton Office during the year. We have had a fair measure of SUCCESS in collecting renewal. premiums from this business, but, in the circumstances, there has naturally been a consider- able falling "off.

The-profit for the year. after providing

depreciation for

of steamers at the usual rate, repairs, etc.. is $480,122,28, From this

FIRE DEPARTMENT balance the special depreciation of

In the Fire Insurance Depart- wharves and Canton properties and

ment Premiums at $102,859 compare: the Reserve for whart repairs have

I voice your He consistently served the Com-with the figure of $102,998 in 1937.| been deducted, leaving a net pro-

gratification also when I say that pany with an ability rendered Claims at $45.257 show a reduction At of $371,239.69 which the Directhing gives the Board greater possible by his expert knowledge from the figure of $55.556 last year. pleasure than to be in a position of the Chinese river trade con- tors recommend should be apporto recommend the payment of the ditions, and with a loyalty which

proposed bonus to the Starts.

tioned out as follows:- To pay

a dividend of $1.00 per share To pay a Bonus of Shore

and Floating Staffs

To carry forward to the Profit and Loss Account for 1939

$80,000.00

8,484.00

$371,230.69

During the year under review river shipping enjoyed boom con-

"I feel sure that

book value..

CANTON PROPERTIES

was one of his chief characteristics.

ment as a director.

A NOTE OF WARNING Before concluding, I feel that

Your Directors have, as usual, After his death the Board, in view been unremitting in their efforts of the valuable service which he towards the economical running of had rendered decided to grant a your steamers, Cost of coal and special ex-gratia payment to his stores, unfortunately, was consi-family in lieu of any pension or 282,755.69derably higher than in the pre- other benefit.

vious year, the first-named in pau'ti-

As you will have seen from the cular having increased

nearly Directors Report, an invitation to $10.00 per ton in cost.

Join the Board was, in October The amoting of $25,679.30, that is last year extended to Mr. D. F proposed should be written of the Landale. I need hardly say that ditions and suffered practical stat the usual five per cent, of their Mr. Landale's acceptance of the value of your steamers, represents the Board was much gratified at pation In sharp contrast. The

Invitation, and I feel sure extraordinary activity which pre-

the valled for the better part of the

shareholders will show their Year quickly gave place to almost Concerning the Company's Can-pleasure and gratification by their a cessation of trade with the capton properties, the Directors have ready confrmation of his appoint- tare of Canton and the closing of considered it advisable to write ofI the Pearl River to navigation on a part of their book value. They October 13, 1938.

trust you will approve their deci- As was to be expected from the slon as, having regard to existing unsettled conditions, passenger re-conditions, it is their considered turns were irregular. There were opinion that a more conservative periods when all avalable bottoms estimate should be taken of the were needed to" cope" with the ab-value if the parerties. normal trafic resulting from the In October last Company's Go- ensuing panic which followed the down in Canton went up in smoke -bombing of the city of Canton and in the conflagration which lasted the cessation of the railway ser- several days. The book value of vice, and others when the exodus the old building has been written travelled overland because of dan-joff and the amount is included in gers which were rumoured to exist the sum charged to depreciation of in navigation in the river.

the whole Canton properties. The With the closing of the Pearl godown was insured, but mot River the Macao line became the against War Risks, as covers for focus of attention. Every available such were not obtainable. In con- tonnage appeared to have concen-[nection with that Bre the "Direc- Company's affairs is that for the trated on this line: not only were tors are pleased to be able to in-first quarter of the current year there ships from the Canton line. form you that the wharves were we have survived such competition but not a few of the West River not seriously damaged. steamers also made their appear-

ance.

CUTTHROAT COMPETITION

It was true that the business in

PIER LEASES

J

I should again convey to you a note of warning concerning prospects. In the immediate future: We have benefited from the abnormal conditions which prevailed most of last year. For that we must be thankful But be must be a bold person who, without an atter disregard of the portent of the dark clouds gathering ahead of him, would dare view the immediate future with any degree of complacency or with optimism

The best that I can say of the

as it has not been our misfortune to meet for some time. Faced with such conditions it has not. As regards the Hongkong wharves it may be recalled that an adequate return on capital in- been a matter of trading to produce Government has made a definite vested, but to struggle to survive pronouncement to the effect, that from going under.

Until it is

this line had improved consider existing leases would not be re generally, recognized and appre- ably with the intensification of the Japanese blockade of Canton,newed, the expiry date of all leases ciated that adventuring in the

the needs of a line, catered for by/cember 31, 1948. In view of that fear that we must continue to but it did not seem possible that for wharves and piers being De-ver trade can prove to be costly: three steamers in normal times, decision the Directors have decided expect the worse. could expand to the extent of ac- to write off, as you will have With these remarks I beg to

ɛeen in

which I need not labour.

During the second and third repairs.

Of the

commodating four times that num-

the accounts, a part

that propose

the Report and ber of steamers.

of the book value of the two Hong- Accounts as presented be adopted. As was to be expected, cutthroat competition kong wharves They have. in After this has been seconded, I developed with concomitant results addition, considered it advisable shall endeavour to

answer, to to set aside a small reserve for the best of my ability, any ques-

tion you may wish to ask. quarters of the year the earnings

amount af$128,123.07 Seconding the proposal, Mr. Kirby of Company's Canton line steamers

which is charged to repairs, said: "I don't think there is any- surpassed all expectations. Freight steamers overhuals absorbed the thing I can usefully add, I think better part of that sum. Both the the Chairman has given very offerings assumed such proportions Taishan" and the "Kinshan" had that, with the friendly co-opera- tion of Messrs. Butterfield and to be surveyed for new Load Line Complete detalis. There da just one little item-depreciation, You Swire and the Indo-China Steam Certificates. The "Hi Tal" was not mention five per cent. On the Navigation Co., Ltd., the Company docked for her annual overhaul. present value of steamers it looks was placed in a position to charter

"LEE HONG" ACQUIRED" to me a little less than four, the $5. "Wuchang" and the 3.8. In view of the high cost of wonder, in view of the fleet's age, Pingwo" at rates which proved building a new ship, the Company, whether the Board consider that profitable to the Company. The after protracted negotiations, sufficient to write down as de- activities of the two chartered acquired the motor vessel "Les preciation. steamers were confined to the Hong" early in October at a price The Chairman: I think so. transportation of rice to Canton which the Board thought to be Mr. Kirby: Thank you. I have between the months of February very reasonable. The Directors much pleasure in seconding the and May..

felt that the "Lee Hong." with her proposal.

A factor which 'contributed to speed: and the reconditioning The motion was carried un- the great Improvement in the which they had carefully planned, animously. year's Canton line cargo returns would prove to be a valuable asset may be said to have been the dis- to the Company's service.

The re-election of Sir Robert Ho

| Tung and - Mr. Li Tse-fong to

Hung, was also carried.

In the profit and loss account the main item is the interest not carried to other accounts amounting to $53,626. After transferring $50,000 to General Reserve account there remains a balance in Profit and Loss Account of $16,559.

SECURITIES"

The principal feature in the balance sheet calling for comment in the valuation of securities. Mr. M. H. Lo and seconded by Mr. Currency, represented by our hold- Excluding securities in Chinėse the Board of Directors, proposed by

ing in Shanghai Debentures, the The confirmation of Mr. D."-F. fluctuations in the value of securi- Landale's appointment as a Direc-tles approximately balanced out, tor, proposed by Mr. Wei Tat and but the value of the Shanghai in Chinese National seconded by Mr. Fernandez, was securities

Dollars show a depreciation of also approved.

Mesars, Lowe, Bingham and nearly E.K.$100,000, almost en- Matthews, and Messrs. Linstear tirely due to the fall in the Na- and Davis were re-elected Auditors. Honal Dollar exchange. This de- This was proposed by Mr. T. F.preciation is given effect to in' the Lo and seconded by Mr. Kwan balance sheet as a reduction in Yau-kwong.

Continued on Back Page

SATURDAY, APRIL 29, 1939.-PACE 1

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