1922-08-22 — Page 1

SHERWIN WILL. AS

PA

EARTH

The

Hongkong Telegraph.

ANDERSEN MEYER 3 COLLTO

Certa

FEURDED 1881

R 470

弍拜 弍十月八日 TUESDAY, AUGUST 22,

1922 廿十三月六

SINGLE COPY 10 CTS

THE

THE INTER-ALLIED DEBTS.

French Premier's Intimation to Britain.

Heater - Sernice, i

Paris, August 21. M. Poincare attended the unveiling of the first milestone along the Voie Sacree, 57 kilometres from Bar-le-Doc ia Verdan, over which the French troops marched in 1916 to the support of the stricken town.

for

U. S. RAILWAY STRIKE.

the

MET-

Chicago, August 1.

As the result of unknown hands removing spikes from the rails, an empty passenger train from New York to Chicago, travelling atl fifty miles an hour, was overturned, killing the driver and Sreman. The authorities offer a thousand dollars reward for the discovery of the miscreants.

HINDENBURG AT 'MUNICH.

Berlin, August 21.

set

the notification would not in the anything outside the actual land, issued share

· Capital · "balu.

TELEPHONE QUESTION. meantime take effect. The scale buildings and plant, is unsup accord with its trus Ospital. If

COMPANY'S REPLY TO THE COMMITTEE.

CRITICISM OF "NON-EXPERTS.'

INCREASED RATES SAID TO BE OVERDUE.

foll information

The Valuation Question.

|

ሰ

same principle of

(b). Has no relevance to the present situation.

(c). This is doubital

(d) The fall of prices, such as it

were

The

of charges had at long last been ported by anything within the a' now to ophione company were arrived at by experts who knew knowledge of the Company. and formed to set up businODE In/ their business, and was accepted unless it appears as a definita Hangkong, it would scat them, by the Government and the subject of valuation in his esport, socording to Mr. W. W. Click, Company. The rates question the presumption bas no warrant. 4226, 386-for the reconstruction of was regarded on both sides ur à

Non-Experts' Brears. the prosent establishment, and closed book. En possref, it may

upon this £525, 186 reconstrpetion be remarked that the newly- Part I. Cium T-The Reprios. a: zeinen jutnake), bank me ba suthorised rates are materially norters, arg. in sirve be under made to the sharekoldera,, vie less than those authorised in standing that the Company's Committee describę ia sa grasps of £979,683 is their fing "when the Clogisany expects raluation Sabequently M. Poincare made a speech disclaiming any

India and elsewhere.

| idea of a fair value for the under- ■ dividend French desire

agkrandise:nent. He only asked for

an : £185,000, the execution of the Treaties and payment for damages. France's friends,

taking transferred from one owner ascertained: väine of the present by a desire to recover foreign however, were observad

On the valuation of the under- to another as a going concern (arită undertaking. Whether part of

artension kets. He declared that the Allies came to an understanding three

taking the appraisers differed, presumably an

of the Capital arises, as it does hare, We have received from the pesent value is the sash of com- Mr. Cook oarüfying the recon- licence and powers to increase from appreciation in value of years ago at the expense of France and denied her right to hare & French police. M. Poincare assorted that Britain had favoured the China and Japan Telephone and įstruction less depreciation.” straction cost at £326,286 and|rates),". The valuation is as de- Įbuildings necessary to the Com

Again, grant of the German request for a moratorium without consulting Electric Company, Ltd, the fol.

"The Company, the the present day value, La. after scribed to Mr. Cook's schedules pany's business, or from a rise France and simultaneously

Balfour is-ged the

tolowing reply to the Telephone Government itself will recognise, allowing for depreciation, at and certificates, which include in the value of a portion of its Note. France's rest surprise, at the moment when Germany was annoue Committee's report, which has is entitled in a fair remuneration E276,687. Mr. Cole, on the other nothing for a going concern or plant, is as irrelevant as it would

Bob, for their arrives, and the state- band, valued it at £10,857. You the extension of licence. Mr. Cook be for the Company to object to ing that she would not pay. He considered the coincidence & re-been addressed to the

Colonist Secretary by Mr. G.ment marked B. shows how the mhereupon sent for the appraisere was never asked on expected to have its' rates fixed on chettable one at the very least

Company will fare on the basis of and asked for an explanation of take these into consideration in depreciated Capital. It must be M. Poincare embarked on a maze of figures showing that, after Parker Ness allowing for deficits in the commercial balance, France paid abroad I have to thank you for your $100 per annum,“ Referring to their difference. Mr. Cook re-his valuation of the plant, as the allowed that had the "plant

valuation text of his schedules and certi-decreased to the mit of fast veur 74,000,000,000 paper francs, whereas Germany. courtesy in furnishing me with a this $100 basis, they add "It must presented that the

in vaine, say to Doted that the abore which had been prepared under ficates proves.

half of its cost, the Com. with allanzen pompeilation and without devastated provinces. had not paid copy of the Report of the joint be fr 3450nevyda France did not at present contemplate demanding Committee of the two Chambers essentially rough estimate is based his supervision and carefully There is so amount of depre-pany would not be justified estimated as necessary in valuing its property for rate- payment of the amounts owing her by the Allies, and unul the Ger- of Commerce, on the proposed on 10,000 subscribers (the actual checked by him had been conduct-ciation man debt was recovered it was impossible for her to discharge her agreement with the Telephone number to-day is under 6.000.")ed on a sound basis which he was for the new company." The making purposes, at its original

The In short, the Report announced prepared to defend in the witness Draft Agreement provides for cost Faincare suggested that the inter-Ailec debts Company for an extension of its debt to Britain

licence. I bave read this docu-that Messrs. Lowe, Bingham and box, whereas the basis of Mr.deprecision and reserves of course applies if its property has -hoult warily be discussed at a conference of all concerned.

3. Poincare at that the French Government adhered to the ment with care, which, to my Matthews were unable, for want Cole's valuation was open to percentage "not exceeding 8%.." appreciated. The method which sho scheme of positive pledges submitted to the Lordon conference. He mind, discloses no good cause for of expert knowledge, to ascertain attack as departing from standard the words in the Draft Agreement Messrs. Lowe, Bingham and hinted that as an eventuality France might be reduced to taking the continued postponement of the value of the capital amp! 1yed practice based on legal decisions are not "amonating to." but not Matthews claim to be the right pledges wilt the co-operation of the Allies, but declared tha: she the conclusion of the new licence. and on which slone the rates Mr. Cole is understood to have exceeding." 8% depreciation, quite one in valving an undertaking. would only seep them until Germany consented to comply with her The Negotiations.

which would give a fair and said that his figure of £210,837 different thing.

namely what it would cost to

engagementS.

Let me, before calling atten- reasonable profit could be arrived was a sum on which be thought

The 8 persom depreciation construct and establish” plant of M. Pionirare goncluded: “We are neither Neros ror Bismarcks.tion in detail to its terms, remind

that negotiations between is so average figure which would equal capacity, less an appro- Mr. Fletcher's Opinior. We only ask to remain the allies of our allies and the friends of our you shortly of the long drawo

willing boyer and willing seller not apply to every item of the pristo deduction in respect of de- fresde, and to resime with yesterday's enemies peaceful and out, negotiations to which this

Before the Report came into) might be based You eventually plant individually. In the case,preciation, is the course pursued courtedde relations; but we stipplate that our reparations demands report is the latest contribution.

the Government's possession, you approved of Mr. Cook's figures for instance, of steel poles, the by Mr. Cook. The cost price **

being in

bad shalt be sinisfied, and they shall be.

Two and a half years ago, the had gone to England, where you

your judgment depreciation is slow and the resor "the money invested' right one, and this you idual valus high (40% after 25 rightly no place in arriving at the Telephone Company, suffering sscertained that there had been the like others both here and else a general rise in telephone rates, announced to the Chamber of years life), in the case of another

present value”. where from the riss in prices and came to the conclusion that Commerce when you recently met item of the plant-storage bat-

Other Points. consequent on the war, applied increase of the Hongkong rate them to explain the agreement teries, for example--the deprecia-

Part II, Clause 3 (s).—The «I- No Danger of the Transportation Unions Being Involved.

contained Mr. Cook'stion is rapid (about 14%) and the to the Government for a recon- beginning at $150 par subscriber which

isting Co. will retain an interest Cleveland (0) August 21.

the figures and which the Gorera-residual value nil. Mr. Stone, president of the Engineers Urion, and Mr. Robersonsideration of the subscription as ressonable and that

rates which-fixed many years

return to the operating comment were ready to conclude with

This exemplifies the error into equivalent to what it brings in to president of the Firemen's Union, assert that there is no danger of

ape under different circum-pany should be 12 per cent. per the Company. At the termination bich non-experts may fall when the new Company side by wide The four transportation brotherhoods being drawn into the strike stances were out of date and annom. any exces rond this of the meeting, the Chamber of dealing wis mattere of a technical with the focal subscribers whom the Company hepa will be ready should negotiations to end the shoomen's strike fail.

had become inapplicable to the parcentage being divisible Commerce proposed the appoint character. Train Wrecked.

to co-operate a Directors and present time. The Government equally between the subscribers ment of the present joint com-

Increased Rates Overdue.

Shareholders. acknowledged that our applic-and the Compsos. -Aik the youmittee to consider and report on

Part I. Clause 8-The Com- ation deserved consideration, if it announced to Sir Aton Stabb the Draft Agreement, a proposi W&S justified by facts, and and myself in a letter a copy of rion in which you acquiesced. paay contend that the increased has, after a rates are already much overdue, afoot enquiries to get which you reato the Camber This Committee

the of Commerce here, when you lapse of two months, sent in toeird that as no interruption is to on subject. In the first is recently met them to explain the Report and with some of its take place in the service during was, was allowed for by the stance, they appointed Messrs. agreement the Government was details I propose to deal with the period of transition from one appraisers up to March when the

made. system to another, and the work-valnations Lowe. Bingham and Matthews prepared to conclude with theseriatim.

Committee ing costs will be increased during London

recently The Plant: to acquire and furnish imforms-Company. Demonstrative Welcome from Hararians.

In the meantime the Colonial

this period, there is no reason for reporting on the rates there saw tion on the value of the Com-

Part 1. Clause 3-The Rong postponing the increase which it no likalibood of any material fall undertaking and the Secretary had appointed a local pany's Hech Hindenburg! Deutschland über Allies!" mingled with figure of the rates that would Committee, of which Mr. Marsh kong and Kowloon Exchang is contended should have been during the next 5 years.

Plants and the Subscribers' granted to them two years ako. I (a) Mr. Cook's vaination was vociferous cheering, marked an unprecedented demonstration at the retur fair and reasonable com-was a member, to coasider and station at Murich on the occasion of the arrival of Marshal Hinden-pensation for the service. These advise the Government on the Station Plant were especially sir. Cole, subsequently to the pub based, as he s277, burg from Berlin. General Bothmar, in a speech of welcome, con. gentlemen pursued their en question of increased rates. This designed for use in this homiliestion by the Company of the basis which I am prepared to de

proposed

rates, efend in the witness hox, based on ratulated Marshal Hindenburg on holding out to the last when per-iquiries over a period of mare Committee, like Messze. Love [climate. The plant is of standard) ..dious treason overthrew the unbeaten Army.

than a year, and, although their Bingham and Mathews, tound dig and exactly the same type gested that they should only legal decisions. His certificates as at present manufactured by come into force 2 or 3 years indicate that it followed the The Field-Marshal replied briefly, exborting his hearers to do conclusions led to no settlement that they had been asked to

approved by Mesars. their daty to the Imperial Government. Previously he had made rep of the above question, the Report undertake a task which required Mats. L. M. Ericsson for in hence, the suggestion was no: course resentations to Bavaris, forbidding the Reichswehr to participate in made some important admissions technical knowledge not obtains:allation in conjunction with communicated to the Company: Lowe, Bingham and Matthews.

the able in the Colony, but notwith-new systems elsewhere. Within and indeed such a suggestio namely reconstruction cost less.

the last two years the Hongrous would be inconsistent with his į depreciation. suggested standing thin,

"(l'emlinued" on Page 12) In answering question put by rate of $120 arrived at, apparently, ixchange plant has been added actions and with the you as to the value of the exist on no known basis, but as a mid-to the extent of one-third of its the Draft Agreement, in the ing undertaking, blessrs. Lowe, way fizure hetween the old rate Present capacity. After the in-preparation of which he was the

News in To-day s. Bingham & Matthews stated:- and that asked by the Company.stallation of the new system now chief mover. No sach sozgestion necessary to provide greater was ever made when Mr. Cook "The work involved in this

The Next Step.

New Advertisements. Orders for South Wales.

capacity, the present exchange and he agreed upon the scale. kind of valuation call for the Neither of these reports were of plants would be used for smaller

Unable to Earn Fair Keturn. nervices of a technical Telephone such a nature as to guide shel-xchanges in outlying

The Green Island Cement Co.. Hitherto American and Canadian coal orders for South Wales Expert, morencer one who special Government to a satisfactory de-auring development. Many of Part 1; Clanse 9-The Com-Ltd.. has declared an interim total two million tons. The available supplies have been taken uPises in Telephone Construction." cision. They then resolved to the present magasto instruments pany is notable with present rates dividend of 50 cents per sbare.-- for a month, and enquiries are now being made for other sorts. Best

It must be made clear from sek the guidance of specialiste are ́ ́ of the co wertible type to earn a fair retora on the Pace 4. Admiralties are quoted at 31s. per ton.

the outset that it is not the value in telephone construction, and and ATO suitable for capital necessarily emaloyed ini An unused tobacco premis for of the plant according to the arranged with the Company to use the Central Battery rendering the service, and it is, of sale.-Page 4. books that we are dealing with. bring one specialist to the Colony, System; the magneto instruments course, open this capital that the There will be a performance of A Bill has been introduced in the House of Representatives to and we have taken the words while the Goverpipeat would which are not of the convertible rate should be based; indeed for Box and Cox "at Mount Austin carry out President Harding's suggestions for a sweeping investiga-alue of the existing undertak bring another, who would confer type would be used in the develop te making purposes, an ad- Barracks, on August 31st- tion into the coal industry The committee is to be composed ofling "to mean the "present valus together and furnish their finding ment of outlying areas. The ditional sum for the "voing con- Page 4 nine, at a salary of $10,000 each, and is to report in January,

| that is to say what it would cost on the amount of the rates and cables and other outside plantare corn" is generally admitted. The "Love, Honor and ?" is abow. to constract and establish plant the value of the undertaking. Mr. of the bat design and construc-profit referred to in 1921 wasting at the World Theatre to-day. of equal capacity less so sp Cook, ons of the best known itinn and are entirely suitable for £5,928 in London which was -Page 12. propriate deduction in respect of authorities in London on telense with the Central Battary equivalent to something under depreciation

phone matters, and the assessor System. Therefore, the statement 2% on £280.000. The

Telephone Company to the recent Hotse of Commons that the system is to a great ex-

Past Profits.

The business fool is the man based their claim on cost, plae Committee appointed to enquire tant obsolete is erroneous. Full In response to a suggestion by the British, French, and Italiano addition of 190% r presenting into the subject of London rates, allowance for depreciation has

Part I, Clause 10-The divid-cho still believes it in cheaper to

French and Italian Governments of its agreement in principle to labour as compared with pre-war Mr. Coley the General Manager in Mr. W. W. Cook's valuation.

since it commencement in 1883 than with it, holding a conference at Venice between the High Commissioners

are as follows:--- and representatives of Greece and Turkey with a view to settling cost. Enquiries of the Shanghai of the Shanghai Telephone Com An Unwarranted Presumption.

Mutual Telephone Co. through pany, was invited by the Govern

Marguerite Clark is appearing the Graeco-Turkish conflict. The conference will probably not as our Shangbai office have con- ment to visit the Colony for the

Part I, Clause 6.-If Mr. Cole's 1907-1914-5% on £14.761. semble before the end of September.

based оп the

1915-1921-10% on £39,761.io "Come out of the Knoben firmed this increase and other above purpose. These gentlemen valuation is

values Aupplied mutters connected with telephone in due time agreed on a basis for replacement

The true capital has risen until at the Star Theatre to-night-

Page 12 - it must it is now £280,000, and the num- Costs. Further, according to the arriving at a revised schedule of by the Company.

There is a neglige dance at the Report of the Departmental Com-charges to replace the one which be assumed that he approved ber of subscribers stations has A Trio of Trains in Collision.

mittee on Telephonerates present the war conditions had thrown of and made these values his. It grown from a few hundred to 6,746.Kowloon Theatre this evening- London, August 21. ed to Parliament in 1920 the out of perspective, and presented is difficult to understand the It is apparent also that the rule Page 12

Mesars. Hall, Law and Co. Three were killed and fifteen injured, two seriously, in a two- following statement shows the their new schedule to the Govern clause He (Mr. Cole) considers of the service to each subscriber fold railway accident to workmen's trains near Gravesend. A train percentages by which the presentment, at jointly agreed on and that £210,837 represents the pres has thus increased immensely since advertise Gorz's cameras and balted to set down passengers when an engine from the contrary cost of the main items of the recommended for adoption. The ent value of the undertaking sold the £10 rate was first introduced

Such divisible profite as were direction dashed into them... Help was being rendered when another telephone plant exceeds the pre- Government thereupon adopted by one owner to another." The

Jefferson has arrived~"Page 4 train charged into the rear of the first train, inflicting farther was average cost giving an it, and introduced the schedule io Reporters do not indicate where earned over the above dividends Had average increase of 204 per cent | the draft agreement, which was and when Mr. Cole said this, and were put into the business.

mainly drawn up by Mr. Cole, 1 venture to think that Mr. Cofe the Capital been increased by new

To-Day's Exchange. In another place in the same and you after consultation with has been misunderstood, för such issues from time to

less dividend even then The closing rate of the doʻlar on Report the firm ad is on the sub-HE. The Governor authorised a statement means that he follow- ject of Depreciation The the publication of these awed no legal basis of valuation at the above would have been paid and to-day was 2 6.13/16),

The Weather Fo difficulty confronting as is the rates? Ik is true that, although All. The cluase within brackets on the larger capital. The Com- amount of auch allowance, and we o dos seriously contemplated introduced by the Reportere pany is, and always has been, a

pm, Barometer: -19.57./Tag - licnose and pawsze to increase at Telephone and Electric Coy, petature 86, Humidity — 72

Indiosting there by that Lidz, and seeing it had no outside

bear closely on

the demonstratione. The latter did not advance beyond the vocal flag-|which wagging stage, except in the cage of the correspondent of a Radical sito ation to-day. newspaper, who was mishandled and rescued by the police.

COAL STRIKE IN AMERICA.

London, August 21.

Committee of Investigation.

Washington, August 21........

THE GRAECO-TURKISH CONFLICT.

Projected Conference at Venice.

London, August 21.

4

DO

terms of

LISTEN!

on & round

High Commissioners at Constantinople, Britain has notified the the increased cost of material and was invited by the Company, and baen made in respect of the plantfends payable to the Company do business without altertising

caenalties.

TWOFOLD RAILWAY ACCIDENT.

MAJOR BLAKE'S COLLEAGUES.

Missing for Over Two Days.

Calcutta, August 21,

over pre-war costs.

1883-1906.NL.

time,

Shipping in the Bay of Bengal has been instructed by wireless are not in a position to state the postponement that has since with presumably an extension of private one owned by the Orient

to look out for Major. Blake's colleagues. Coastal stations have been it should be, wa Almilarly advised, but there is still no news, sithough they have been the necessary techni mlarida for over two days

ledge to form a má náti

films.-Pure 3.

The Admiral" Line: advise

consignees that the 8.8. President