1934-06-14 — Page 19

HIGHER DUTY ON

URGED AT BREWERY MEETING

Conflicting views by Directors

four months when no sales were being made.

THE HONGKONG TELEGRAPH. THURSDAY, JUNE 14, 1934.

BEER IMPORTS

a really substantial reduction in the cost of producing our beer would the establishment of the be distillery. This we hope to put in and as soon as circumstances per-

milt.

quality.

Mr. J. P. Warren had to resign/ machinery and fixtures 1977, motor the burden of our forward pur-gallon on an average, as against statement we have before us shows

the Chairman (Mr. S. H. Dodwell) port of your Directors I should like to express the Board's regret that from the position of chairman of the Board last month on his sad den departure for England for reasons of ill-health. We all hope his speedy recovery and early re- turn to Hongkong. The Directors Report and the Accounts trave been in your hands for some days, and I presume you will take them

as read,

EIGHT MONTHS' PROFIT.

per

These

our

courageously met by a liberal pro- that these difficulties have been vision that will enable us to com of confidence and entirely free mence a fresh year's trading full from the anxieties that beget all producing concerns in their earliest stages.

the case of

well

il

Whiteaways

I desire to take this opportunity of expressing our sincero thanks to our Ofee and Brewery staff, both European and Chinese, for the Chinn the duty, including surtax, excellent work which they havo amounts to 88 per cent ad valorem, done during the past year. I now or, say, $14 a case, or $2.30, abog to propose the adoption of the In the Profit and Loss Account

When this has been for the whole year we here a

gallon, on beer of Pilsen type, as accounts. further charge for salaries, rent,

against an excise duty of only seconded I shall be pleased to $3.00 per case or 60 cents a gallon answer any questions which you and other expenditure amounting to $28,743.06 incurred during the On an average, somewhat over on beer brewed in China. In may wish to ask. four months January to April, 65 per cent. of our bottles are Indo-Ching there are three rales

ƒSECONDER'S SPEECH. before the opening of the brewery-being returned. Considerably lega of duty-6G francs por 100 litres.

Mr. Champkin, in seconding the 112 CONFLICT OF VIEW IN mint a charge under these than this percentage of the bottles or 22 gallons, for beer from eer-

heads of $76,504.91 on account of sent out during the four monthstein European countries, the 8 months before our beer was September to December, 1933, francs for Japanese beer, and adoption of the report and balance DIRECTORATE

224 francs for beer imported from sheet, sald-I have much pleasure put on the market.

were returned before the end of the year, and in our accounts for other countries including Hong-In seconding the adoption of the Report and Accounts. I have. * DEPRECIATION CHARGE. the current year there should, kong. Against this duty of 224 latened with much interest to the therefore, be a large reduction in franes per 22 gallons or, say, 10 Chairman's speech and I think we of the Hongkong Brewers and The item of $19,061.58 for de

our expenditure on hottles. It francs Hongkong $1.66) por Distillers Co., Ltd., on the qua-preciation appears a particularly was not anticipated that we should gallon, beer brewed in Indo-Chinmay comment on the Ford and tion of a protective tariff for heavy charge. I si ould be ex- Hongkong-brewed beer, were exinined that, though our sheer was bottles returned, and when

have as much as 65 per cent, of our pays an excise duty on only 7 management on the very encourag our francs per 22 gallons plus 2 per ing results they have been able to pressed at the annual meeting of on sale for only the lust four

ficulties of newly formed com the Company this morning.

months of the year, depreciation present orders for bottles are cent ad valorem-in all approxi-achieve. I know the general dif Addressing the shareholders, charges have been appiled over a { completed in 1955, it should not mutely Franca 7.80 or Hongkong 1 panies and the peculiar disabilitical necessary to place further $10 per 22 gallons, or 6 on of producing company that by perled of eight months since the orders for a considerable time if kong cents per gallon. In Japan, the nature of its business has to

100 said:-Before dealing with the re- commencement of brewing opera- the same percentage of returned the duty on imported beer is

tions at the following raten:-

cent ad hottles in maintained. This will per

Vniorem. This carry on over a long period before it can expect its first returns. The Building 22

plant and

mean a substantial reduction in amounts to about Yen 3.33 Bui

per transport 205. If you refer to

Hallon Japanese beer. In Ceylon, the balance sheet you will note that chase of bottles over a long period. an excise duty of only 63 sen per DIRECTORS FOREGO FLES,

the import duty is Rupees 1.05 per the Company's fixed assets are net cost, while pro- out in detail at

Although your vision for depreciation has been

Directors have gallon, while the duty on locally

gallon. stated in the form of the Reserve, had a great deal of work to do in brewed beer is only fi cents

Our overdraft with our bankers the initial stages of the brewery,

Ja Hongkong our beer pays the stond at $731,857.34 at the end of they have agreed to forego two

As our Chairman has the year, an fucrease of $163,643.24 thirds of their fees in view of the same duty as imported beers ex- on the overdraft at the end of thet that actual trading was only cept for a small difference amous. 1992. Of this sum 8361.319.38 was carried out during the last four ting to about a cent per pint phasised, we have acquired

beyond all doubt the purity and expended on buildings, plant and Baths of the year under review. hottie which disappears directly very valuable asset by establishing excellence of our products. The machinery, furniture and equip. This explains the charge of $2,006 exchange reaches 1/8d.

ides of the An unter this hend

figures give you an

only real embarrassment we have Our sales of beer,_both___fight | preference and ment. And motor transport.

encouragement Increase of this amount is shown

new company. the The existence of this overdraft is expectations, with the result that ing countries. In Hongkong, the finding of an adequate market for in the value of our fixed assets, and dark, have exceeded all our given to the brewer in neighbour had is not, as might be supposed in chielly due to the fact that the we have na yet been unable to only preference accorded to

keeping pace with the increasing heavy fall te exchange at the time take steps to build up an export enterprise has keen shown by the ur output, but the impossibility of Our Chief Brewer, Mr. discerning beer-drinkers of the demand from our ever-widening our contract for machinery and bisiness.

I am glad tol con- Woitsch, insists that the maturing Colony on the merits of our Preircle of customers. signed WILM

very

very valuable plant

our capital perical for our beer must not be duet. That is

see that we are taking steps to siderably increased expenditure, the contract having less class four months--and our asset which it is our determination free ourselves from this embar

ultimate aim is Bve months. For to continue to earn. this reason, and also that of the been made at exchange 111⁄2d,

FUTURE POLICY, shortage of storage capacity for maturing. it is only with diffealty

Whather we are ever accorded meet fiscal preference, alongside all that we have been able to

indeed at times

I daresay there is a good deal in real demands; we have had on hand large orders other British brewed beers, de-

what the Chairman

says about which we were anable to supply in pends on the future policy of the Colony. We are a free port ne-

our polley in full immediately. We are.

Events of the

past few however, installing an additional cording, for the most part, equality the newpacity of 14 aluminium maturing and fer- of opportunity to all nations. Maintaining Hongkong as a free have made it increasingly | passeult for Free Trade dichards menting lanks of à capacity of 2-1 Our ideal position and our 200 gallons each. They will be our facilities have in the

fully justified our policy of available this month and we hope to be able to make a beginning maining a free port, but now that like myself to combat the heresies We shall eventually heginning of May, 1988, our first ¡ operation for 12 months we have (with our export business this year, our free port is surrounded by the that asal us and it is not un-

barrier regis of high tariffs and kely that brews were maturing for four been able to ascertain where with favourable exchange months, and sales did not begin penditure can be curtailed, and

questionable lesent, at any rate, 1 am afraid antil the end of August.

The ac-

we have to accept conditions as every effort is being made to effect and the quality of our beer to our great entrepot trade is dwind.ruccumb (laughter), but for the

they are. counts cover, therefore, only four reduction without however it help us, we believe that we shalling, it is at least months' actual trading: yet they pairing working efficiency or The Le in a position to compete sar-whether it is n policy we should

I want files to add that I should ressfully with other heers in some rigidly adhere to. of necessity, include $26,443.44-

quality of our product.

We have excellent facilities for for salaries, wages and allowances With # view to the reduction of the neightmaring markets.

industrial enterprise but the dihe better picnsed to see the Bank and other overhead expenditure the production costs of our beer by

PROTECTIVE DUTIES.

cullies of developing in this dires-overdraft at a considerably lower for the four months

May

wider distribution of our over- too

The greatest of figure, but I do not doubt that are fully alive to August, and a charge of $22317.61 head expenditure, we

A few particulars of the duty tion are great. for depreciation for the same four present under consideration plans charged on imported beer in pro-them is the refusal on the part of the directors months, making, in the hraving for the stilization of the brewery tection of home-brewed article in many of the Dominions to treat un the desirability of reducing it as British Empire.soon as possible. All things con- sidered, it seema to me Clint the and trading account for the eight waste products, snch as yeast and these neighbouring countries will as part of the months, a total charge under spent grain. The most important give you some idea of the diffent-They are ready enough to do

ip against. In when they want us to buy their Company is forging ahead under

manage these heads of $48,760,95 for the factor, however, in bringing about ities we shall be

Fonds, but not so ready when it capable and economical comes to buying the products of feat and as a shareholder I am spumpavisam our factories. Indeed many of quite content with the result that fiscal been put before us to-day. them place us on the sam footing as Japan. This matter is We have good reason to anticipate that this satisfying-progress-will without doubi receiving the con- sideration of the commercial com- maintained and I am sure we in munity. There may be good ren-velt pleased with the way sons why we must accept the post- whith our interests are being tion, one-sided as it seems, and looked after by the Board. remain a free port, but in my oping pleasure in on we should not turn down the ade; tion of the possibilities of reciprocity, as part counts. of the Empire, without investigat- ing what can be done in that direc tion and weighing up most earc- . its advantages and disadvant

Our total profits for the eight months from the opening of the brewery in May to the 31st De comber, er is, brewing ecmber, 198, after charging for

and administration expenses and interest on overdraft, amounted to $17,948,55. After making provision for depreviation on fixed assets of $49,064,58, and writing off expenditurė incurred during the period January to April, before the opening of the Brewery, and ex- pense in connection with the open-

Negotiations were carried ing, amounting to $26,743.96, there remains

ins a debit balance of $67,859.- during the year with the Dairy 99, to which is to be added expend Farm Company for the aule of our

to 31st December, 1932, ice, and we are pleased to $46,507.47, leaving a debit balance that satisfactory terms have now as at tsi. December, 1983, to be heen agreed on, which provide for carried forward to next account, of

the purchase of our whole untput $104,427.46.

by the Dairy Farm Company, The Directors Report hun <?x-

Economies are being effected though plained that.

brewing this year in several directions. ztl. the operations commenced

has the brewery

ture

high

Three

Winners

H⋅B

SALE OF ICE.

DIS

now

report

been

in

Tave 1t

DISTIN

BRITISH

BREWED

03

VERS

BEER

REWERS

now,

rates

DISTIL

H.B

H·B PILSEHER BEER

STOUT

ONOH

ALWAYS A WINNER

because it is, "the best

the brewers brew"

STOUT H.B. PILSENER-H.B. DARK—H.B.

res.

PLANT EXTENSION.

rassment by the obvious and pro- Atable means of expanding our) producing plant.

har port.

re-

In view of the increase in the seity of our maturing tanks, it

FREE TRADE DIÈHARDS.

•

I have seconding the report and ae-

SIR WM. SHENTON'S VIEW.

not at

Sir William Shenton, a Director of the Company, in the course of a brief speech, remarked:-On the question raised by our Chairman, 18.to a protective tariff in this fear on Colony for our beer. I general principles, i am

moment able to subscribe to saya. The prosperity of other directions. A new bottle this Colony has, over a period of washing room has been completed nearly a hundred years, been built end new machinery installed. The up upon the basis of what is reztion of a new concrete storage known as the free port. principle, ded is in hand. We have also now and I, for one, am not prepared -reted our own workshop enable

aas been nevessary to extend in

to

of handling all minor repairs, go back on this policy without many of which have hitherto had to be done at outside workshops.

deliberate and careful con- duration in these days, tariffs, quotas, and trade agreeinents, are The height of our dam has just common topics. A change in this een very considerably increased. direction in this Colony. In my which further ensures fult

#

opinion, is largely a question for supply of water during all seasons, our bankers, merchants, shippers,

insurance companies, manufactur Your Directors would like to place on record their appreciationers, etc., to decide, and until they of the assistance at all times re-have given us their considered reived from Mr. J. D. Lloyd, Super-pinions, desire to reserve my

Judgment. intendent of Imports and Exports, and his stall, and the ready and helpful consideration which they have at all times shown in the many little difficulties encountered during the first few months of our working operations.

AN EXPLANATION.

The Chairman:-Before putting the resolution to the meeting, may I first make it clear that I do not wish to be understood na advocaṭ-

We should also like to thank thing the abandoning our free trade policy? What. I desire is a public of Hongkong for the sup thorough investigation of the ad- port which they have given to this vantages and disadvantages of new local industry. In these times

CO LTO

LAST WEEK

OF OUR

GREAT

PROFIT-SHARING

SALE

FINAL

BARGAINS

IN ALL

DEPARTMENTS

DO NOT MISS THEM

SALE ENDS

Saturday June 16.

WHITEAWAY, LAIDLAW & CO., LTD.

HELLESENS

HAND LAMPS

To

ensure the success of your. moonlight beach

sen

party, use a Helle- Hand Lamp: complete with bat- tery.

Ideal for bathing sheds.

Non inflammable, therefore no dan- ger of fire.

No

A

trouble. Light that does not fail.

On Sale at Lane, Crawford, Ltd., and at the Sole Agents:—

SHEWAN, TOMES & CO.

National Commercial Bank Building,

lee House Street, Hongkong. Telephone: 27781.

when matters do not look too bright abandoning it before we decide to for some of our largest and oldest stand or fall as one of the few industries, it is, encouraging to remaining enses of free trade In by Mr. W. G. Robertson. the Desert of Protection. feel that as long as we produce a

OTHER BUSINESS,

beer of really first quality we can The report and accounts were roly on the wholehearted support adopted. of the public of Hongkong. It is perhaps too much to expect that we can suit the palate of every. body, but we can guarantee the purity of our beer. It is munu factured from the best European malt and hops, with no preserva-seconded by Mr. W. G. Felshaw. tives or other harmful ingredients

There were present at the medf- ing Mr. S. H. Dodwell (Chairman), the Hon. Sir William Shenton, Mr. Samuel So Wong, Mr. W. G. Robert son, and Wong Sik-chung (direc- fora), Mr. J. H. Ruttonjce (moung-

CHANGTE STRANDING.

LINER UNDAMAGED: PART OF CARGO JETTISONED

Manila, Juno 13. The Australian-Oriental

liner

Mr. Samuel So Wong was re-ing director), Mra. E. M. Barrett Changte, which went aground outside elected to the Board of Directors (secretary), Messrs. C. Champkin, Manlin on Saturday, arrived here to on the motion of Mr. W. C. Clark, G. S. Hugh-Jones, (representing day undaninged. Four of the liner's

Mesara. Wilkinson and Grist), H.R. passengers are still aboard.

(representing Mesara, Messrs. Linstead and Davis wore Forsyth

A part of the Changto's, cargo of. of any kind and we intend to re-elected auditors on the motion instead and Davis), W. C. Clark flour had to be jettisoned before sho adhoro strictly to that standard of 'of Sir. William Shenton, seconded and W. C. Felshaw (shareholders). could be relented-United Press.