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ANNUAL MEETING, The thirteenth annual meeting of the Astor House Hotel Ca., Ld., was held on Wednesday afternoon. Mr. V. Meyer presided, and the other director present was Mr. E. T. Byrne. The attendance represented 3,783 shares.
The secretary (Mr. R. W. Mac-Cape), having read the notice convening the meeting and the auditors' report, The Chairman said: Gentlemen, The report and accounts have been in your hands for some time and, with your permission, I will take them as read.
The working account for the year shows a credit of $107,521.25 on a gross turnover of $429,733.57. The gross profit is about 8500 more than last year, although the gross turnover is 84,717.74 less. This result is due to the most careful economy, and I am afraid that no further saving in the running of the company's business can be effected without influencing the high stan: dard of comfort and efficiency which we do maintain, and wish to maintain throughout.
Besides the very ample amount which has been debited to the profit and loss account against depreciation we have spent during the year 813,042.61 on maintenance and repairs.
The debenture interest has been reduced by 84,257.74, due to the fact that we redeemed 10 per cent. of the issue at the end of last December. We were enabled to do this by the sale of the part of the company's property, generally known as foreshore. Wo obtained for this property Tls. 72,500 gross, and the balance Tls. 2,500 necessary for redeeming 10 per cent. of our debenture issue was taken from the company's current, account, while all our expense in connexion with this business has been debited to the profit and loss account. During next year we shall have the full advantage of this reduction in our debenture debt.
We have also been able to repay the mortgage on B.C. Lot 1744 out of the company's funds, thereby saving interest payable against this mort-! gage.
Owing further to the steady reduction of our hank overdraft, we have effected a total saving in this direction of interest charges of £1,350. which I hope you will consider satisfactory.
You will remember that the Board offered prizes in connexion with the two best sets of plans submitted by the local architects for the rebuilding of your hotel. Besides the first two sets of plans, the Board was advised by Mr. Turner to purchase one more set. The payment in connexion therewith appears under the heading of "reconstruction expenses" and has been written off to the profit and loss account. I may, in this connexion, say that in taking the final decision re the rebuilding of the hotel all the three sets of plans have been exceedingly useful to the Board.
You will also note that for the first time 86,000 has been debited to the profit and loss account and set aside as a reserve account for bad debts.
The greatest care is exercised in connexion with the granting of credits. You will find that sundry debtors at the end of the financial year were $24,806.69. Since June 20, $20,388.26 has been paid.' Out of the balance of 84,473.43 it is estimated that not more than 81,200 is doubtful, so you will see that the reserve of $4,496.78 must be consideras very ample, During the year we have written off as bad debts 8852.28, Even if you add to this doubtful debts at the end of this year and consider them as bad, you will see the bad debts during the year are approximately 82,000, which represents less than one-half per cent. of the turnover of the year, This, T think, must be considered a satisfactory showing in the business such as ours, and every care is being taken further to reduce this item.
If you compare the company's financial position to-day with the position two years ago you will find an improvement has taken place of approximately 890,000 and I believe n safely say that the serious crisis has now passed and if we now place ourselves on a safe basis by reducing our capital we may, hope, be able once more to place our company on a dividend paying basis.
After this meeting over, an extraordinary meeting will be held in order to pass, or otherwise, the resolution for a reduction of the company's capital in accordance with instruction given us on October 8, 1912, As a matter of convenience I will you now the various details in connexion with the rebuilding scheme decided upon by the Board. You will find before you the plans of t building scheme. Broadly speaking, they consist in the follow. ing changes.
The old dining room and kitchen to be pulled down and replaced with a row of shops. The first five of these shops will have entrance windows towards Broadway and also towards the interior of the Hotel.
Text read from the printed page and cleaned; old type leaves the occasional error.