A special general meeting of shareholders was hold on Tuesday afternoon (17th) at the Shanghai Club to consider methods of procuring funds, or, failing that, to take She necessary, step for liquidating the Com) riy." There were present Messrs.
Drummond (Chairuan), E.G. Tow, Francis (Directors), Dvuglas Jones, HI. H. Joseph, F. E, Haskell, J. A. Sullivan, Secret), representing in al shares. XE. E, Porter, and E. Pearce ering—Gentlemen, the report was sent to you on the 28th February fake and the statement of account up Dec, Bist last was sent to you on the 4th of this month, With your permission we will take them as read. Several causes have led to the necessity for calling this meeting. In the first place, the very serious drop in the price oF sugar has Jed to an accumulation of stock. In the next place the banks, probably in consequence Fecout efsia in London, have been exerci ing recently a more stringent policy in connection with undertakings, more especially in the East, and thirdly there is the refusal of the Perak Government to make any increase of their present loan to us. These causes led the agents of the Company in penang to make somewhat urgent representations to the Board as to the necessity for the provision of some further funds to carry on the Company's work until the commencement of the next crop, which was then expected to be about Sept. Ist next. The amount which the nts then estimated as required was about $27,000. ae te Board teed in possession of funds belonging to the Company and has no power to raise any further funda without receiving special authority from the shareholders, it became nocossaty at once to take steps to place the facts before the shareholders. Consequently the report and statement of account were issued to you and the present meeting was called. Since the report was issued the Board has been in communication with the agents at Penang, and we find that by commencing the cutting of cane a month earlier than was originally intended, on the Ist August instead of Ist September, we can reduce the unproductive period to two months, June and July, This will reduce the amount required by about $8,000 or $9,000. Other arrangements have been wade by the agente, of which we have only infor-motion by wire, but which enable them to inform us now that a sum of less than $10,000 will be sufficient to carry over the Company's work until the commencement of the next crop. The Directors will propose to-day resolutions in the sense of those to be found at the end of the report which has been recently issued. If these resolutions are carried and if within the next month a sufficient number of debentures are taken up to enable the Company to carry on the work until the next crop, the whole of the present difficulty will be overcome. The amount the total amount invested in this Company, wuired is extremely small compared with
and according to independent valuations now in the possession of the Board there is ample security fur a considerably larger sum than that which we desire to raise. Even if it should be considered at. some future date desirable to sell the property it will be obviously more advantageous to do ay with deliberation and at a time wh tis in a more favourable eundition than it would be to take any such steps hurriedly or in the present circumstances. The difference to be obtained by the sale of the property by proceeding with the deliberation I have suggested would itself undoubtedly be many times greater than the amount which the Board now find it necessary to raise. I may mention here that the Board is taking ste; for th solidation of all the loans of the into one loan, and we hope to be able to effect this at a rate of interest not exceed-i is of course is a The amount named in the resolation is Ts, to arrange.
35,000, as, although @ very much smaller sum will be sufficient for immediate purposes, still it is extremely desirable that we should be able to get at the earliest possible moment the additions and improvements to the manufacturing plant, which would give us so wuch better results than we are able to obtain at present. The value of these improvements you willseeby reference tothe report issued, and which [have no doubt is in your hands. "We have received some very Satisfactory and interesting information from the secretary, Mr. Dudgeon, upon that very point. The principal improvement which itis desirable for us to adopt is the double crushing instead of the single crushing of the cane, and the machinery to enable us to do this will cost about £4,000. The great importance of this is explained in the report. A few years ago, our machinery was well up to date, bue there have been important improvements in the manufacture of cane sugar recently, which from want of spare capital we have been unable to get. If this year had been as good as the last one we should have been able to do this without raising further funds. It is improbable that the market can remain long at its present very low ebb, and the slightest improvement would enable us to carry on the work of the Company at a profit. I think therefore you will see, upon all these grounds that itis very greatly to the interests of the shareholders that the small amount of money now required should be raised as soon as possible, to place the Company in a satisfactory and safe Position. If we are now able to find the necessary funds, all stress as faras funds. are concerned will be removed fur s very considerable period. I do not-know that there are any further points beyond these have mentioned that I can usefully'advert, toat present, but if any shareholder present desires information upon avy other point, I shall be happy to answer apy question.
Mr. Dovaras Jonss said he understood at the last meeting or a previous one that the Company could practically get all the money that was required from the Goverument or Resident at Perak at 6 per cent. Whether that was so or not it was ti impression of the majority of the shat holders that the Government was so desirous of aiding this concern, it being a pioneer one, that there would be no difficulty about the funds. He would like to know if any reason had been given for the refusal to advance more money.
The Cuarmman said he was not aware that there was any reference to this subject at the lust meeting or that there had been any statement on the part of the Directors that the shareholders were entitled to reckon with any degree of certainty upon further advances from the Government at any future veried. With regard to the latter part of the question, the official reply, received only lately, declined to make a further luan and gave no reason whatever.. The refusal was probably due to the financial position of the State not being so good as it was a short time ago and to the fact that the Government to complete lin the distri principal mining districts of the State of Perak, and was consequently devoting all its spare funds to the purpose, He did not think it was beyond the bounds of possibility that the Government might be induced at the end of this year to give sume assistance towards clearing off the debentures, the first of which we fall duo at the end of this year, and th on which was payable at 15 per cent. Directors would undoubtedly make a furthor effort to get the Government to assist them, but he could of course give no indication as to what the answer of the Government would be. He knew that the Government viewed the enterprise with a considerable degree of favour, it being the pioneer sugar plantation in the State, and if circumstances otherwise admitted, such as the general state of the revetiue and the absence of any great undertaking, the Goveroment would be desirous of giving a certain degree of assistance.
Mr, Dovoras Joxes asked if it was true that the manager, Mr. Parkinson, was a sailor before lo became manager of the estate.
The Cuarraas replied that Mr. Parkin-sou was at one period of his life an officer employed by the P. and O. Cumpany, but he was subsequently employed by Mr. Lamb as assistant in the management of his sugar eatato at Pryo in Province Wel-wesley for many years. Owing tour. Lamb's illness Mr. Parkinson had almost sole charge of the estate for a considerable period and he was looked upon, by all those capable of judging, as a most thoroughly capable and' experienced sugar planter, His agreement was for five years and began un Jan. Ist, 1889. Mr. Parl to retire from active work, and should he do sv the Directors would take immediate steps to get some one who had had a more or less thorough education in the business of sugar planting in the West Indies. There was no doubt, and recent experience had borne it in upon the Directors very strongly, that the methods of sugar plant ing in the West Indies were in some respects more scientific and more thorough than those which were carried out in the Straits. Several planters in Province Wel-wesley ud been brought from the West
Text read from the printed page and cleaned; old type leaves the occasional error.