1933-03-20 — Page 17

NEW

FOOTWEAR

FOR SUMMER

OPENED

TO-DAY GORDON'S

Talk of Prosperity, and

"PROSPERITY" comes !

When you buy disinfectant remember IZAL is

6

times as strong

Sole Agents:-

HARRY WICKING & CO.

Hongkong.

·STOCKS CARRIED,

THE

HONG KONG

PENINSULA HOTEL;

HONGKONG HOTEL; REPULSE BAY HOTEL; PEAK HOTEL

& SHANGHAI

ASTOR HOUSE; PALACE HOTEL;

HOTELS

LIMITED.

In association with the Grand Hotel des Wagons Lite. Peking

Penang

The Scenic Gem of Malaya

first class

Hotel

Modern throughout and *beautifully Situated

Runnymede Hotel

Malaya's Premier Hotel

Food and Wines especially good.

AFTER-DINNER DANCE

Every Thursday & Saturday-Orchestra Daily.

CABLES "RUNNYMEDE" RUNNYMEDE" HOTEL, LTD.

THE HONGKONG TELEGRAPH.

HOTEL COMPANY & BUS FRANCHISE TERMS

"(Continued from Page 1.

MONDAY, MARCH 20, 1933.

(in regard to the fuel used by of a 20 per cent royalty to the therein during the year of Crossley turn on the paid-up capital. Pro- them) have, by the installation Government on a 25 per cent. re Diesel type engines, been enabled fits in excess of the last mention- to run on oil fuel.

ed percentages were to devoted entirely to a reduction of. fares and, charges...

The vehicles comprising the bus ficet have been well maintained out te the fact that in addition to the of revenue, and, after provision for full programme of maintenance all applicable operative and over- and renewal work carried out dur-head charges, the working of the ing the year, further depreciation bus routes resulted in a profit to on the Company's fixed and floating the Company, but one of reduced assets on an adequate scale has amount when compared with that again been provided for prior to contributed in previous years... computation of the nett figure of: profit set forth for approportion- ment., in which respect you will observe that the sum of $452,719.25

EXPERIENCE OF COMPANY.'".

is debited in the" Profit and Loss/question of the bus services for mitted. Even so, such terms were

Account...

be

In the light of the Company's experience of operating bus "sor-i vices on the Island during the past ve years, particularly bearing in mind the possibilities in connex- ion with increased taxation, your THE BUS SERVICES. „ Board considered the terms ten- In view of the prominence the which this Company could be com

dered represented the limit to Hongkong and the mainland has formulated with the conviction holders will allow mo a few minutes capital employed could not be an- recently received, I feel that share that thereunder a return on the within which to present some parti- ticipated until conversion of vehi- culars as to the basis upon which cles from "petrol" to "crude oil" the Company submitted its tender type engines had been effected, to the Government for the licence and, that, in consequence, the ex- to operate the road passenger tran-pectation of profits ever the first: sport services as on and from two years of operation under the the 11th June next, on which date licence must be viewed as highly our present permits, (with the ex-improbable. ception of that for the inter-Hotel service between the Hongkong and were unsuccessful tenderers, and As you are aware, the Company Repulse Bay Hotels), terminate, we are at the present time con- INCREASED CAPITAL.

The Government notification in-ducting negotiations regarding the viting tenders, issued in September acquisition of our vehicles, etc., Turning to the balance sheet, 1 last, contained, in the opinion of by the successful tenderers. submit that with regard to items your Board of Directors, onëruus

With reference to the conduct appearing on the naseta side, no and stringent conditions, and more by the Company of its services, comment is necetary. With re-over embodied no guarantee comment has recently reached it; ference to the contra side thereof, lative to the future imposition of regarding the scale of remunera- the figure of issued capital there further taxation. After full con- tion paid to its drivers such appearing indicates the increase sideration of the matter, your that the scale is on the high side. comment carrying the inference

You will doubtless note with satisfaction that the charges in curred for bank interest last year only amounted to $94,987.53. This is the lowest level reached in re spect of this charge for many years past-a position rendered possible by the substantial decrease in the Company's mortgage indebtedness effected by the receipt in July last of the monies in respect of the issue of new capital.

year.

re.

effected by the allotment of directors decided that the only 193,867 new shares during the basis upon which tenders should I answer thereto, I would say be submitted from this Company it essential that the drivers em- that we have always considered Mortgage Indebtedness, to which was one which provided for theployed on the vehicles operating I have previously referred, amount-operation of the bus services by ed at the end of the year to $1,-a separate subsidiary Company. It our bus routes, particularly on the Queen's Road route, should be 095,070.48 only. It is satisfactory was considered highly imprudent to to note also that in comparison undertake the risk of placing the experienced and capable. They with the similar liability existing Hotel Company's assets in jeop had a

have been specially selected, have at the close of the previous finan-ardy, or to minimise its future handling heavy vehicles in crowded lengthy experience of clal year, a reduction of $300,000 profits, by merging the Hotels' trame, and we feel that the in- has been effected in the Company's trading with the business indebtedness to trade creditors. Imotor bus. transportation on world further state that the Com-large a scale as would have been pany's forward commitments have involved in the event of during the past year been very tenders being accepted. much reduced. Our forward com- mitments at this date stand at a

TENDERS SUBMITTED. figure representing the minimum Three tenders were submitted, level possible consistent with ef- one for the whole Colony,

of frequency of accidents in which

concerned on the extensive ser the Company's vehicles have been our vices operating in densely crowd- ed thoroughfares, justifies, from the point of view of publie safety, the policy we have adopted in that respect.

fcient operation of the Company's one for the Island of Hongkong.. TRADING PROSPECTS.

of

to

establishments. The Garage De- and one for the whole of the Kow- partment has, in respect of leon Peninsula. The tenders were from me some indicatlen aa

Shareholders may expect to hear its working during the past jaimilar in every respect, and pro-trading prospects for the current year, contributed profits to the vided for the operation of the re-rear. Upon this matter I can in-| general accounts to an extent quisite road passenger transport form you that, up to date, a steady which, in view of the unfavourable by a subsidiary Company to be in- business has been maintained at times experienced, can be regarded corporated and controlled by this all establishments, with an up- with satisfaction. With reference Company. In the latter connexion,ward tendency in respect of the to one of its main activities, name-the Hotel Company undertook to hotels in Shanghai. Nevertheless, ly, the operation of certain bus retain during the period of services, the favourable trend in-licence not less than 51% of the time as the cities in which our the I muat point out that until such dicated in regard to certain opera-paid-up captital of the organisn-activities are centred again be- tive costs at the commencement of tion proposed to be incorporated.come the venue of trauaient tour- the year did not continue. On the The consideration tendered to ists in appreciable numbers, pro- contrary, further increases in the Government for the licence was in fits on a high scale cannot be anti- price of gasoline, (one of the short the following:-

cipated. heaviest prime cost factors

The Company is in a operation) were experienced.

Firstly, a royalty of per than it has been for a good num-

stronger financial position to-day. cent. on the gross receipts of the services tendered for.

ber of years. The existence, of in- Secondly, additional royalties creased competition must, how calculated on the gross receipts ever, not be lost sight of, nor must from such service, but governed the fact that some of the Com by such percentages as the an-pany's establishments are not of naal nett profits should shew by modern construction, You will way of return upon the pald-up therefore appreciate the necessity capital employed in the under for expenditure on modernization Laking.

work and the maintenance of a high standard in respect of com- traceable to the heavy exodus dar-the additional royalties provided ment, in order to meet the dis- Stipulations for calculation of modites, appointments," and equip. ing the Spring of last year of for a sliding seale in graduated advantages in connexion with the residents of districts tapped by stages of 5 per cent, in respect of hotel buildings under this service to localities situate off profits in excess of a 10 per cent. certain

BUS ROUTES.

The buses on the Repulse Baj and University routes carried traf fic last year of the same volume as that obtaining during previous years, but traffic receipts dropped appreciably on the Queen's Road route. The falling off in revenue on the last mentioned

route is

!

which

establishments operate.

the bus route, and to a consider return on the paid-up capital. For Upon the matter of expenditure able diminution in passenger traf- example, in respect of annual pro-generally, all avenues for lessen- fle to and from the West Point fits exceeding 10 per cent. up to ing this have been explored with district at night.

jand including 15 per cent. on the a view to a reduction - to an Offsetting, in a measure, the paid-up capital, a further 5 per economic minimum consistent with adverse points I have enumerated. cont. on the gross receipts from the maintenance of an efficient unimportant saving in fuel costs services during that year would organisation. has been effected in connexion with have become payable to the Gov- the running of eight buses which ernment, and so on 'up to a limit

I now formally propose that the

(Continued on Page 7.)

Passengers of S.S. "Lurline" are Welcomed to

CHINA'S FIRST & LARGEST DEPARTMENT-STORE.

If you can't afford to miss Marshall Field or Wannamaker in your visit to Chicago or New York, you can't afford

to miss Sincere's in your visit to China.

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at wonderful values.

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THE SINCERE CO., LTD.

in extending their cordial greetings to you, are staging for your convenience in procuring typical souvenir reminiscent of your trip, a

CHINESE ART & CRAFT EXHIBITION

(Fifth Floor)

է,

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SHOP EARLY for

SPRING WEAR

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LIGHT FELT HATS & SHOES

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BATHING COSTUMES

SHOWING TO-DAY AT

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KING'S THEATRE

COMMENCING THURSDAY, 23rd MARCH.

www

Defying a world gone mad with hate two hearts that were mad with love!

As you read it in the book...so you will see it on the screen ...this story which

every woman will un-

derstand.

FAREWELL TO ARMS

By ERNEST HEMINGWAY

With HELEN HAYES

GABY COOPER ADOLPHE MENJOU At A. Paramount Pictus

Produced by Frank Borzoge

Swan Culbertson & Frits

'Investment bankers and brokera in asvurtiss and commodibian Daily New York and London Stock Exchange Service Commodity Futures on the principal American markets

Members of New York Cotton Exchange Members of National Raw Silk Frchange Inë, New York Members of The Rubber Exchange of New York, Inc. Members of The National Metal Exchange, Inc., New Yor Members of Chicago Board of Trade

J

Correspondents for Hayderi, Stone & Co. Telephone 27253

Cable Address:. Bwanitock

Asia Life Building, 14, Queen's Road. Hongkong.