1922-10-13 — Page 3

THE HONGKONG TELEGRAPH,

FRIDAY.

OCTOBER 13, 1992.

NOTICE

+

HONGKONG HOTEL CO, LTD.

THE

HAIRDRESSING SALOON

IN

HONGKONG HOTEL

IS NOW OPEN

8 a.m. to 7 p.m.

(Sunday 9 a.m. to 12 noon.)

UNDER EUROPEAN SUPERVISION.

STEAM LAUNDRY

COMPANY.

DRY CLEANERS AND DYERS,

CLOTHES

may a take the man but

od nighth the vertainly

Our charge for thoroughly

cleaning and pressing a curn-

plete susik is only Suza

Write or wi for complete

Price List.

WORKS and HEAD OFFICE

YAUMATI, Tel. Kowloon 32.

4. Beaconsfield Arcade, Tel. Central 1279.

65, Praya East.

11, Canton Road, Kowloon.

JAPAN COAL

ANDI

GENERAL IMPORTS AND

EXPORTS

AGENTS FOR :-

ATE MITSUBISHI MARINE & FIRE INSURANCE CO. THE OSAKA MARINE & FIRE INSURANCE CO.

MITSUBISHI SHOJI KAISHA

(MITSUBISHI TRADING CO., LTD.)

HEAD OFFICE:-TOKYO

No. 14. PBDDER ST., HONGKONG.

DON'T

SAVE YOUR EYES.

CHINESE OPTICAL CO.

will give you the BEST ADVICE regarding your eyesight.

Rub your eyes

67. Queen's Road Central.

•

BRUNSWICK RECORDS.

Watch South China Morning Post" for new announcements, YVÁNOVICH & GOM

Distributors.

OUR TELEPHONES.

(l'astisued fr 12 Page 23

form them?

Double Profits.

The wide difference between the Company's estimated depreciated value at 1991 high prices of

duvars at their cều, price they are paramount owners of the had therefore to buy and sell, so to China and Japan Telephone Co, speak, between themselves-if they Ltd. had fosted a local concern. They thereby merely proposed to change pany, and a corresponding loss to their whole interest in the present the Colony for reiterated promises Conipant for a whole interest in a 19,000 with that of my own (ca of up-to-date service in the neareal Company, which entried with it available), based on the assumed the admittedly inadequate figures future. Is it likely they would

the right to subscribe all future Balance Sheet figures have been in any hurry to per- necessary capital, to the exclusion

tafter estimated depreciation} of of others if their sharebeklers so $125,000, means about twice as desirect. I think, therefore, there is much at annual charge for in A more correct way of looking no doubt that under these circum-terest and depreciation to be at this claimed increased rate is stances the proposed heences were borne by the subscribers, accord to regard the Company making merely continuous one, whatever ing to which capital value is fer a reversion to its old rate of her close to call themaves and decided upen. My contention is $100, thereby saving itself at the whether they were registered that the Company, belar a public expense of the subscribers with a loss on exchange of $20/30 per with limited liability in England or utility company protected by a telephone, say $100,000 or $12,000 Hongkong. The fact that it was virtual monopoly, is not entitled to charge the subscribers, on the odd per annat, and in addition proposed to obtain a majority of plea of reorganisation, with any asking for a 40/50 per cent in-local directors does not in my greater rate than is sufficient to credse on the reinstituted old opinion alter the situation, as the meet running expenses, plus rea- rate, which may be estimated to real power would still be in the sonable dividends and deprecia- bring in some $40,000/50,000 per hands of the shareholders, Lc. theftion on the actual capital put inf annum to meet possible increased old shareholders holding the majori-by the shareholders and bond- expenses, which I will endeavoury of the shares. This state of holders in the purchase of plant later on to show may not occur, affairs would exist until the present and buildings. It seems to ще and extra dividend on cld capital shareholders had sold the majority funfair to endeavour to make sub- expenditure artificially raised in the guise of high prices, which of their shares to local interests or scribers pay higher rates because, we never pail for n most of had admitted new shareholders, in in the middle of a contract, it is the material a buildings the similar proportions: in other words, assumed that greater expenditure

would have been necessary if the] Company had insecte, in.

soll, or parted with a proportionate Company had had to pay high Hanurable members will de-original interest. To obtain the 1921 prices for all its land and sire to know whether the rates Government's sanction to a higher plant instead of only a Small are sufficient to cover expentes vabation of its assets than depreci-portion purchased at high prices running the telephones. Extractsate values on original cost figures in recent years.

from the Company's vecoun's pet-wonk] admit of, practically means

A Subject for Arbitration. parech Messrs. Lowe, Bingham the Liovernment would have lent it.

According to an American ex- and Matthews at the expense of self to an arrangement which would per the valuation of a telephone) the Hongkong Government show have enabled the old shareholders tufcompany's assets is a long and that between 1914 and 1919 these the whole or any part of their tedious process, and the lengthy | running expenses, including re-interests to themselves at a proât case and long judgment in the newals but excluding depreciation, which, as between themselves, cum. London Office and Directors' fees

more than

dend.

Government versus the National and English taxation, varied be. Pauy law does not allow them to do. Telephone Co., in 1921 and 1913, tween $32 and $41 per $100 re-Only on such a method and at the shows this. In that award the ceipts or (in other words) per expense of the telephone subscriber, fixed at a value of $12,000,000 Telephone Company's assets were telephone. There is therefore a who is calle, on to pay higher rates, after the Company had claimed wide margin to meet dividends would the old shareholder either be

£20,000,000, and the method of and the excluded expenses

be

able to sell his shares at a consitier valuation was very fully set out tween these figures and the $84 able profit to a new shareholder, or and forms the leading law on the rate. Between 1914 and 1919 the aew shareholder subscribe for nex subject. Whether the Company's subscribers nearly, doubled in lares carrying an equisalent diri valuation of 5279,000 cumber. Wages

аррго- ximates to the doubled, bat profts doubled, show-

amount of the

ing that over a

Plausible Inflation.

elaim er the award, only Mr. W. period CE six year the ratio of expense was

This very prausible inflation W. Cook, and presumably Mr. roughly the same, and double the capital would result in the old Parker Ness, know; bat the im business Hone meant double shareholder getting dividend pression the Government were profits. It the Company's equivalent to a rate several timesien was that it was based on this

celebrated award, which naturally: their ac-greater than he could have got on gase stent wright to the Company"> counts for 1520 and 1921 the original cost of his investment valuation. Investigation shows that show different results. for they raud. guarantees [Eused to procure them, hat, ne their shareholder

published Balance Sheets for these his investment and the telephone! later years show the average Hong-subscriber pays the piper-why kong profits to be slightly in excess should he? of that for 1919, it would seem that any increased expenses incurred lad | [been more than revered by inerras

ed incore, so that the claim they raske for increased rates is not justified on this grunnd alone.

Own fault

2

the new KUCH rata

10

الفت

The

BATH

TOWELS

THERE IS NOTHING LIKE THAT FINE ENER

GETIC FEELING OBTAINED BY A BRISK RUB

DOWN WITH A GOOD TOWEL.

WE HAVE TOWELS FOR THIS VERY PURPOSE MAKE YOUR SELECTION FROM OUR NEW STOCK. THE SINCERE CO., LTD.

SCIENTIFIC MASSAGE.

Mr. Nankwatsu Akaji,

a Graduate of the Tokyo Massage School, has opened a massage room on the First Floor of

Queen's Road,

Central. Office hours from 10.30 am to 5 pm.

Me. Akaji gires massage on scientific lines, based ou instruction in anatomical physiology. ·

Fee for treatment :—$2.00 per visit.

COLDEN STATE BUTTER

Sold

From CALIFORNIA CREAMERIES.

all the leading dealers in one pound cartons (FRESH)—and ¦ and 1 lb. tine. SOLE AGENTS:-GETZ BROS. & Co. of the Orient Ltd.

PROVISION DEPT.

JAMES STEER.

8, ICE HOUSE STREET WATCHMAKER AND JEWELLER.

20:

CHRONOMETERS, CLOCKS, WATCHES AND NAUTICAL INSTRUMENTS REPAIRED UNDER MY PERSONAL SUPERVISION.

TEL CENTRAL 2877

THE

TEL CENTRAL 2877

WING FAT PRINTING CO., LTD.

Mr. Cook could not have employed}} 'the method adopted, of arriving at reconstruction cost by using the average cost for the previous 12,

The Gradual Increase of Rates.

years applied to material and 6 The suggested annual gradualears for labour (in America it is increase of rates up to $120 in believed they use a 3 years average), 1926 calls for some explanation. nor did he employ the straight line The apparent regularity of in-¡method of depreciation adopted by crease shows them to be arbitrary, the Judges. The assumed life of and the note adjoining means the plant is a very important point, The Essential Telephone.

that the Company must satisfyjand how far the Jarlges discounted | From what I have said I trust itthe Government, or its Committee. the Company's estimate is a debatable | will be gathered that the new rates in allowing them, or

much int which, she, applies to Hong. offered are not lower than those extra as will recoup the Company (kong, where depreciation, owing to collectable under the agreement ex-for additional expenditure incur the humid climate, is apt to be Firing in 100, and that increased red, to provide better service and greater than in England jexpenses only follow increased bust a reasonable return on additional

In my opinion, generally speaking. ness in a similar, if not lower, per capital expenditure only. reatage, so that the Company have accounts required mast be actual it would appear that on the basis of no reasonable ground of complaining how they fit in with the an-award, the local Company's plant detailed werking accounts show-the National Telephone Company's as a continuing company. Evidenes al published balance sheets and would probably be worth less tha in the National Telephone Case in extimated figures of expenses; half what they claim; and I am fur- 101 showed that the ratio of run-income or depreciation should be ther of opinion that owing to the ning expenses to income was for all disregarded, otherwise the Gov-technical nature of the work, the practicable purposes a fixed Sguir:ernment and the subscribers can only way to settle the pants to Photo Engravers, Paper-Box Makers and Bookbinders. and the China and Japan Telephone easily be fooled by the licencee.jake ti e matter the subject of art. Do accounts bear this crut Ithough I hope the present licencees tration, with a judge or lawyer na 1906, with about suo telephones, the will not dream of doing any such arbitrator and each side to employ Hongkong profts were 23,500 at a thing in the future. The idea ofį

a Telephonic Engineer and Aur-uns-{◆ $100 rate, and in 1921. with about these increased rates is an effort 6.000 telephones, the Hongkong pro- or dividend on

to provide for increased interestant who would collaborate instead of, fits were £20,000 at a rate of $73.3which the Company claim they

£250,000, up to now, working separately.

It would seem that the STORAG The intermediate scars, in spite of wish to spend to rebuild their ex-for the Company's claim for such exchange fluctuations, showed change and renew and extend enhanced values was based on gradual and almost continuus in their plant with

modern definition by Sir Frederick Braco- crease each year, except in 1620, material. How much extra re- well confirmed by the House of when, with a rate of 815, the profit venue will be required each year Lords, on what is known as the was only £1,000,

is as problematical as the extra then" value terms as applied to The hardship of doabled rates capital expenditure necessary;

tramway assets. These so-called does not affect the richer bongs and but it is obvious the whole amount their munagers so cruel, except rates must therefore only be provalnation, and I have shown. how cannot be expended at once and tramway terms were those adopted in solving the National Telephone

90 far as inconvenience may be caused when they find their poorer} clients and social friends have ceas

some

m072

portionately extended.

.

No Co-operation.

From conversations I have had

ed to appear as usual in the Tele- with honourable members and

they were applied in that caṣe.

Taken at His Own Valuation Kecent enquiries from Mr. Parker |

phone Directory: but-it does affect others from time to time, I have Ness elicited a reply that he could)

PAPER SELLERS. STATIONERS. Printers,

SALE ROOM

J

No. 149, Wing Lok Street. TELEPHONE CENTRAL 2257

PRINTING OFFICE

No. 22A. WHITFIELD Rd.

TELEPHONE CENTRAL 1910

THE CAMERAS & LENSES

that can do WONDERS are

COERZ

Sole agents in China

HALL, LAW & CO.

Telephone Central 3217.

10, Des Voeux Road, C.

Above Bank of East Asia, Lid.

FIT-U PINCE-NEZ

the sinaller trader, who has to took gathered that there is some sar-not give me the reference to they listening to my remarks, and on ut every dollar before spending it.prise that the Committee did not ease to which it referred Person-behall of my Committee to express is the latest of the finger operated In every English-speaking country fix the capital value of the Comally, I don't blame Mr. Parker Ness, thanks to the Government for mak-eyes-glass mounting and has been the telephone has become a neces-pany's assets and recommend that only did what he thought was ing available all papers and doca designed to avoid all the objec

ty in the straggle for existence they should caly be allowed to pay the best for his own and his Comments, and particularly to the Hentionable features of this type of and being, by necessity, either a maximum rate of interest or Government department or a cens dividend thereon, with similar Pan's interests; and I am sure courable the Cot mial Secretary for mounting. The long coil springs must have had many a good laugh his valuable assistance and advice on of the Fi U prevent spring break- ed monopoly, the public have a right allowances for further necessary. to expect service at fair but moder parent how impossible it was toby people who live so far away from he has fought so persistently with on the nose. The nose clips are capital issues. It must be sp- at being taken at his own valuation the many points in the case which age, and can be instantly adjust- d to give more or less presSIETO ate rates in relation to cash cost evolve such a scheme without the London.

ly and not on presumably, to co-operation of the

a Parker Nessina pistol at his head of special shape to prevent slip- Company. As the present licence does not for some 2 years. And lastly it has ping. Fit-D Pinca-nez of any porary inflated values.

Their Vice-Chairman, Mr. Parker expire until 1880, it is too soon to been a pleasure to have been as metal are obtainable from The Ness. absolutely refused to give decide whether the Government sociated with Hon. Mr. Chow Shou Hongkong Optical Co., successors any information which would should instal & new system of its son, Messrs. F. I. Marth and Chow to Clark & Co., manufacturing and quarters whether the prescut, Com the figure of 5279,060 odd at which stitute enquiries from others than mittet, who have worked so hard competent optical manufacturin

enable the Committee to criticise own; but it is not too soon to in-Tan-nin, the members of the Com-refracting opticians the most pany is a continuing company or their own consulting engineer and the Oriental Telephone Co., as to and harmoniously in formulating the not Personally, I contend that as vainer placed it. I venture to

in the colony-***

Selling to Themselves.

It has been questioned in some

the present licencs does not expire guess that this attitude will be the best system suitable to the report on which this resolution, until 2030, the suggested new agree famed until the larget as climate and the various languaged based ment had to be made with bow on the hook, in India ind je inhabitants of Hongkong.

the présent Company,

and where, hate, bean, landed by the: In conclusion

as they could find no local Oriental Telephone Co, Ltd, who honourable memil

resolution

Jõented in 53, Queen's Bond