Casualties were heavy during 1937 on March 11 we lost Hopsang near Garanbi Point on the southern extremity of Formosa. I told you of ihis last year. And of course there are the Tuckwo and Wuhu Hulk Tve just referred to. Three of the Chi-hose crew of Hopsang were awarded the Royal Humane Society's medal, the presentation being made by His Excellency the Governor on February 24.
Once again the Directors and General Managers have to thank the floating and shore staffs for their care of the Company's property and the interest they have shown in the welfare of passengers and cargo which is so appreciated. But our gratitude goes further than this for in these abnormal times the staff has been called upon to face circumstances not ordinarily associated with their daily occupations and in all instances their response under exceptionally trying conditions, often dangerous, has been courageous and practical. charges £7,940.18.9d., depreciation for 1935 and 1937 105.733.0.0d., floating ff pensions £10,791.17.9d, and interest £6.164.3.0d, On the credit side of this account the higher earnings of the Company reflected in the net balance of steamers working count which stands at £270,817.15.4d., transfer fees £40.78d. and exchange adjustment £1,08104d. due chiefly to a gain in exchange on remittances to meet Sterling liabilities the rates obtained during the year being more favourable than the closing rate on December 31
Ships Pi ying Their Way After allowing for all these there remains a credit of £ i8.4.11d. of which £120,000 has been transferred to general reserve and £9,5684.11d carried forward to the year 1938, It to be regretted there are no funds available for distribution to shareholders as the profits of the year have been utilized to liquidate the overdraft due to the General Managers which on December 31, 1936 amounted to £128,826.15.5d. and to repay to the Hongkong and Shanghai Banking Corporation part of the advanced by them during the on account of new tonnage. £19, 220.5.8d. is shown as due to the Bank on December 31, 1937 and while this has since been paid off, there remains toxday a liability of £125,000 as I've already told you. In the circumstonces your Directors considered it advisable, in addition to providing rormal depreciation for 1937, to write down further the value of the fleet by the amount which in the ordinary way would have been applied to 1935 had the Company been able to meet depreciation in that year Once again the Dire have waived their fees of £1,500 po annum and this money will not be held in suspense.
Coming to the balance sheet, there s a slight reduction of £0,000 In the book value of steamships, hulks, etc compared with 1036, the write off being greater by that amount than the additions to the fleet which in clude the instalments financed by the bonk during the year on the three new ships. Sundry debtors in China and London agents' balances, coal and stores all show slight increases due to the greater turnover and the higher cost of coal. etc., but all the amounts owing to the Company have been accounted for With regard to the liabilities, gen eral reserve has been increased by 120.000 by the transfer from revenue account. There is a small reduction in underwriting account due to sundry accidents not covered by insurance, while special repairs and re-newels remain practically unchanged, Sundry creditors in China and London now appear at £105,8072.1d. as compared with £216,852.14.5d. in 1936, the overdraft due to the eral. Managers of £128.826.155d having been paid off, The item of 86.646.16.5d. shows a slight decrease ard has since been paid while the sum of £192205.8d. appearing in the name of the Honzkong and Shangha Benking Corporation represents the balance of the loan account outstanding at the close of the year.
The contingent liability for cumvlative preferred dividends for 12 years amounts to £178,520.8.0d.
Text read from the printed page and cleaned; old type leaves the occasional error.