The ordinary half-yearly meeting of the shareholders of the above Corporation was held.at the City Hall, Hongkong, on 20th Aug. There were present:—Mr. W. H. Forbes, (chairman), Hon. R. Rowett, Messrs. E. R. Belilios, J. F. Cordes, 'I'. Pyke, S. D. Sassoon, A. Andre, A. F.
ard, H. Hoppius, James Greig, John Walter, C. J. Barnes, H, Smith, M. Mehta, R. S. Woonwalla, Asgar, Middleton, M. ©. Rozario, G. F. Heard, Hon. P. Ryrie, Messrs, MacCulloch, A. Strack, Jensen, Karbeng, Deacon, Grobien, Bot-tolley, Meg. Heaton, T. Green, E. Sharp, Simmonsen, Dr. Adams, Burr, Shelterfoht, Budde, Nicaise, Mellish, Ede, Nelson, R. Walker, Kirby, F. W. Mitchell, medios, C. P. Chater, Anton, Mardfeldt, W. K. Hooghes, W. Morgan, J. A. Re-Fairbairn, Linstead, Russell, J. B. Smith, The Cuaraan, having read the notice calling the meeting, said the report had been in the hands of the shareholders for several days, and he thought it was not necessary for him to read it. Before he asked them to accept it, however, ho wished to make a few remark:
As the meeting did not wish the report to be rend, The Cuarmatay then said: Gentlemen,—Tam in a less fortunate position than my in this chair, as_on this ocean present you with an unsatisfactory report, but I hope the next time we meet that it may be my pleasant duty to reverse the situation, and announce the mo news of a fair, if not a handsome, dividend. Our misfortunes during the ix months may be said to have commenced with the famine in India, which caused a sudden advance in Exchange of 6 to 7 per cent., which did not result satis factorily to the Bank on the whole; in addition to this, the demand for money has been suiall, owing to the general contract tion in trade. In Shanghai, too, our anti-cibations of high Exchanges this season wore not realized, though at one time the tightness of the money market there looked asit our opinion would be verified, but you are all aware of the collapse that took place in that market almost before large shipments of produce began, and in consequence much of our money, laid in at comparatively high rates, had. to be remitted at a considerable 1 Such an unfortunate event is not likely to occur again. Furthermore, in Japan, we met with a similar unexpected result in an operation that had heretofore proved remunerative tothe Bank. In the early part of the year, the Japanese metallic currency is usually cheap, and forms. good investment, and acting upon our past experience we bought a considerable amount of this currency, expecting to realize a good profit upon it about May or June, but the Japanese Government entirely upset our ject to their support, and suggesting the calculations by making large issues of issue of a proclamation explaining its objects and inviting the ge: try and menied peoplo to subscribe; and possibly such a notice paper etrreney—so that the result of our operations was anything but satisfactory.
may be as well to state that the present manager in Yokohama is in no way responsible for this transaction, All these matters combined have caused our small Profits, and are not likely' again to occur. We now come to the losses, which, as already stated in the report, have been very severe, and some of them wholly unexpected, I may mention here that not one of the losses now provided for was known at the date of our last meeting, Unfortunately, they have all come upon us since. The most severe comes to us from London. Our manager there had, on his own responsibility and without our knowledge or consent, made some considerable transactions in' Bonds and Securities outside of English and Indian Government paper, and the result has been a heavy loss." We have considered it advisable and best in your interest to provide fully for this loss, though we do not accept it on account of the Bank, and in the meantime we have asked for explana It is possible a portion of the may be recovered. Sugar Refinery—I have now to speak of the Sugar Refinery. Wo thought we had alrendy fully provided for all deficiencies on this account prior to our last meeting, but unfortunately severe losses have occurred in some shipments of sugar to California and Australia, which were made before the Chinese began to buy the produce of the Refinery so freely, 'These we thought had already been fully provided for, but the several markets have become still more unfayourable, and a further deficiency upon our last' valuations had to be made good. This estimated deficiency has now been provided, and, as it may be some satisfaction to shareholders to soo how the account with the Refinery stands at present, a statement of it will be open to inspection in the Chief Manager's office for a few days, It may interest you all to know that the Refinery continues to work satisfactorily, nearly all the manufactured being taken by Chines prices which leave a fair profit, resent position of the Refinery, we think, lly warrants us in the belief that it can either be sold at our valuation, or that, when better times come round, a Com: any can be formed to take the place over. ne Pier and Godown—this account. is also fully provided for. We have tried to sell the property, but nobody would come forward and pay anything like a fair price for it However, we have made arraugements, subject to the approval of Goverument,' for leasing the property, and we hope it may eventually lend to' its sale, Sterling Bills, &c.—Wo have sustained some losses on atening bills and also on account of some failures in England and China, but these have also been provided for in the fullest possible manner, and indeed #0 careful have we been in this
of our estimated losses may be recovered. respect, that itis quite likely that position Possible Losses.—Tho last item calling for remark from me is the furtherppossiblo losses, which will not in the worst event exceed $275,000, as stated in the report, and may not be #0 much. Whatever it is, however, it will be charged to the Reserve Fand. The account to which we chiefly refer is that of the Indo-Chinese Sugar Company. This Company has been worked unsuccessfully in the past, the result of one misfortune after another, but now that all its calls have been made, and most of the good ones paid up, we think it is time to inform you of the possible loss that may be sustained by it, In the event of the Company working unsuccessfully for another season, we shall be obliged to call upon it to refund our advances, which it will probably be unable todo. We have had our own special agent at the Company's Factory during the past season, and on his recommendation the place is being put into first-class condition at small expense. He has given us his opinion that with good management he ited without permission.
Text read from the printed page and cleaned; old type leaves the occasional error.