December 15, 1902.1
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by saue financiers. And yet this sam of four and three-quarter millions represents only the cost of building the new dock. The directors have not mentioned the cost of equipping it, which must amount to another milioa. And what about the sea-wall which we are fold it | would be necessary to build at a depth in oue spot of 80 feet? İ have reliable authority for saying that this wall will not cost less than a million and a half. What rev. une can We expect from this enormous concern? To make it pay at all, it should yield at least 7 per cent. on the outlay. ie., $332.500 net per annum. Assuming the uet profi: to be 30 per cent. of tte gross. the latter after deducting disbursements such as salaries, wagos of workmen, insurance premia, Crown rents, &c. shouli amount to $1,18,333 to give us a clean 7 For co it. on our capital per anuum. Can we hope to make so much with th's one deck on the few b'g boats that will drift into the harbour in a year and which we may succeed in wresting from Butterfield and Swire ? Even if there were no other docks in the Colony and this one dock had the mouopoly of the whole business of the place, a return of 7 per cent, on the money spent would be a dream impossible of realisation. The P. & O. Co. have a fleet of 37 boats, the largest of 11,000 tous such as the Caledonia, Arabia, India, and their length is o ly 476 fort Our pre-ent dock cau accommodate them one and all. We can likewise dock all the Messageries Maritimes, the German mail, the Austrian Lloyds', in fact all mail boats. As regards the sup posed tendency to build larger ships, there is the case of the Hamarg Amerika boats. There is a rumour now that they are likely to bo withdrawn from the 1 no because they are found too large for the requirements of the E stern trade, But ev u if they remain on this run, we can dock all their boats. However, as I have already said, they all do their docking at home. With this instance in our mind-the instance of a line of big steamers which have been running continuously for three ye rs without giving us a single but to dock, aud¦ without any chance of their doing so unt ss an accident should occur in the harbour-is it reasonable that we should build a a new duck to accommodate imaginary leviathans that may visit this Colony in the future unless we bave some subsidy or some guaranty if business from the owners? Of course, gentlemen, there are different ways of looking at th's proposal to build a large new dock. To the shipowner and the shipping agent, it won'd be a very good thing indeed even if Hongkong were honey combed with docks; because it would reau ready docking for their vessels at all times, cheaper rates, and as a result of the rivalry among the competing docks better loanses for business contributed. But the financiers, the shareholder's, or the investor's point of view is different. He is asked to put his money into this scheme. What return will he get for it? And what are the risks? These are questious which must be satisfactorily answered before he can give his consent. I have showu you that, at the most favourable stimato and on the assumption that this new dock would get all the big boats that might require docking, it is utterly absurd to expect even to get back the interest on our outlay. The labour difficulty must also ba cons.darel. When there are many docks, skilled labour will not be so plentiful and wages must rise. It will be necessary to teach and train new hands, and this will have to be done at the expense of the Company and will therefore be a dead lo s, as the examples of the cotton mills here and in Shanghai can prore. And then plague may break out again. Imagine what the losses of the new dock would be if the men working there were to take fright and run away as they did on a small scile a couple of years ago. In our present position, we can look at all these risks without much fear. The danger to the opposition docks would be much greater than it can be to us. But if wo yield to day to a foolish fatal passion for expansion for merely the glory of possessing the largest, or about the largest dock in the world, we shall lo e the present inestimable advantages attained by the slow growth of years, and pave the way either ́for the decadence or destruction of what is now justly regarded as one of the most flourishing concerns in Eastern Asia. Gentlemen, I have
CHINA OVERLAND TRADE REPORT.
done with this scheme and have no fear as to what would be the result of our discussion to-day. I only tend that shonll the directors' again have any sailarly important scheme in, their minds they will, before carrying it into effe, give the shareholders th· sam opporin- uity to express their views on it, as we have had in the present instage), (Lond applause)
Mr. II. E. POLLOCK-I asked a question,, Mr. Chairman; can I get an answer now?
The CHAIRMAN-1 propose to answer them all together.
our
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now: in fact, I think any one will agree with me that you should have giren notice of a question of that sort.
Mr. POLIO. --I presume the directors r.ad the papers.
The CHAMAN-I do n t think we all do, (Langhter)
MI. PULLOCK--Well, I think you ought to. This was a statement by Mr. Wickham in au able letter, which went very fully into this question.
a
The CHAIRMAN-I am in a position to say Mr. POLLOCK-Then I have a few remarks to that the information is inc rrect and your make, and I propose to make them just now. boa:d is satisfied that No. 1 Dock is the most (Applause) Mr. Michael his gone very ably valuable piece of property you have. (Hear, into the financial position of this matter, a hear) Regarding the next question by Mr. I think he has demonstrated to the satisfaction Parlane, he raked if I coul' give him the cost of all here present that by embarking upou of lengthening No. 1 Dock. We have had this new scheme we shall to embarking upon several estimates, and from the aggregate of what Captain Anderson calls a fancy scheme. them the figure, as close as possile, is about (Applause) That is to say, we shall be | 8200,00 and the work would take two and a embarking on au undertaking which will half years to do. Now, with regard to Captain involve doubling or perhaps more than Anderson's contention that the Company doubling the capital of this Company now has sufficient land and a suitab'e sito without our being able readily to receive an for any required extension of our docking adequate return for our money. Gentlemen, as facilities. I can only refer you to my shareholders of the Company. I take it that our speech, quoting the decision of practical business is to see that in the future as in the engineers, who override any views which the past we are in receipt of an adequate return directors may have; and that gives a practical for cur money. We do not care for au tactical answer to your assertiors. I think Mr. advertisement to be put in large letters in the Michael made reference in his speech to the newspapers that we can dock the largest ship requisiti n of tho land now on terms to which built in te whole world. Our business as we hare not attached anything in the way of a shareholders is to get an adequate return for subsidy from the Government. I was not on our money. (Applause.) And, gentlemen. it the board when these negotiations originated seems to me that there is absolut ly no or when the scheme first cam up; but I have justification whatsoever for ging into since learned, from wliat I can gather, that the this wild scheme. It seems to me that we conditions attached at that time by the Govern- may fairly say that our Company is at the ment were so onerous and so burdensome that a present moment in a very satisfactay position. new dock built under the demand laid down The earnings for the 1st twelve months haro by the Government would practically not have not been so high as previous earnings, but we euabled us to call it a commercial concern at all; have obtained dividends amount to $16 for and before the board wou'd consent to these the last two periods of six mouths, and I think, burden-ome en ditions they said, “Pay as gentlemen, we have no reason to complain of certain amourt of money which will ensure to that result in view of the general slackness of our shareholders a return ou the money and business; and I think we may reasonably hope then we will consent." That is the reason. What that in the course of time we shall have more we want now is to acquire the land, and when fo tunato years-more profitable years-than we have built the dock, to build it on a com- the past period of twelve months. I think inercial basis, That, I think aud I hope, will there has been a general depression in trade próba'ly answer the question as regards the during that period; we may say it has been a changed conditions in our dealings with the bad period for business generally; and I think! Government. Mr. Lewis was on the board at that with care and good management wo that time. I think. may look to a good returu for
Mr. LEW18-Yes, that is so. money in the future as we have had a good The CHAIRMAN-Well, gentlemen, I will return in the past. The Chairmau said, not detain you much longer. It was not my and I quite agree with him, that it is a intention to go into details that could be con- very good maxim to concentrate one's busines.sidered afterwards if we decided to go ahead Well, gentlemen, I quite agree with the with the scheme; the detai's of the amount to Chairmin. I think we should concentrate our be expended and how it would be expended attention upon the business we havo got--a could be made a matter for future consideration very good business indeed. (Applause.) I by the board. I would only like to question think it would be much better to concentratu one little item in Mr. Michael's speech. I am our attention in that way and as Mr. Michael glad that he agrees with me in one thing, that pointed out try to make the best of the the Company to day is very strong, and that material we have got in stock, looking about to our position is so strong that we could defy see what ships we can build at a profit to competition and carry on. My views on that ourselves and do our very best & improve this subject are: the stronger the competition is business we have got, instead of embarking | the longer wo cau defy it; but you are upon a wild scheme which will involve not going to get the dividends in defying tremendous increase of our capital. I hope the that competition that we are all so anxious to shareholders will reje t this scheme. (Applause.) get, and the only means of continuing prosper- The CHAIRMAN -Åre thero any other ously and fighting all competition is to place remarks?
⚫urselves in a p sition to do work more quickly and more cheaply, and then we ca fight com- petitio. Now, gentlemen, I do not think there is anything further to be said unless some of the shereholders would suggest approaching the Governmeut again for some modification of the terms. The ques ion is a very important ope. There are two sides to every question and both sides of this question are worthy of s rious conside ation. Both cannot be wrong and both cnnot be right Now, is the question to your minds serious enough to mk up your minds upon it to-day for all time? Would you like to dispose of the question to-day and simply decline it or lave you anything to suggest whereby the two schemes, for instance, might be considered a little longer, farther views put forward, and possibly some compromise be arrived at whereby the future welfare of the Company will be safeguarded. If any share- holder in the body of the hall could suggest anything in the way of a compromise even if it involves an adjournment for a day or a couple of days I would be quite willing to adjourn the
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No other comment being offered, The CHAIRMAN said-Genth men, there being no further remarks, I will endeavour to the best of my ability to answer the questions that have been put by various shareholders, although it is hardly to be expected that any chairmin car on the s mr of the moment answer all ques- tions asked from such a large meeting as this. However, I have taken a great deal of trouble to go into this subject in its entirely and pos bly I will be able to answer most of the questions. With regard to enquiry, based 00 A statement made io the newspapers that No. 1 Dock is ouly occupied for 20 days in each month of the year, I may say that the information of the gentleman who made the a saction given in that letter is absolutely incorrect. It is occu- pied a great deal more than 20 days- very much
more.
Mr. Pollock's
Mr. POLLOCK - May I as'. what is the average number of days a month?
The CHAIRMAN-I cannot give you that
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