The ordinary half-yearly meeting of the shareholders in this Corporation was held
present:—Messrs J. S. Moses (Chairman), 22d Aug atthe City Hall." There were S. C. Michaelsen, T. E. Davies, C. J. Holliday, H. Hoppius, Hon. J. J. Keswick, Alex. McConachie, L. Poesnecker, D. R. Sassoon, E. L. Woodin (Directors), de Bovis (Chief Manager), W. Wootton, G, W. Butt, G. Stewart, J. E. David Murray Bain, F, Henderson, K. T. Ezekiel, S. A. Joseph, F. T. P. Foster, John Grant, R. Lyall, W.S. Ramsey, H. Wicking, 1.8. Green, Hon. P. Ryrie, H.W. Dick, A.C. Hawkins, D, H. Mackintosh, M. Gray, S. L. Darby. M. A. deCarvalho, J. R. Michael, E. C. Ray, J. Y. V. Vernon, Georg, G. W. Dickson, K. Inck. Ross, J. H. Cox, GS. Purvis, 'W. Legge, J. J. Bell-Irving, Y.\ A. Gubbay, Dr.' Win. Hartigan, G. 8. Coxon, B.' Layton, De Westley Layton, H. Z. Just, ete.
The Chairman said—Gentlemen, the report and accounts having been in your hands for some time, I shall, with your permission, take them as read. I regret the result' of the past half-year has not been sv favourable as on former occasions, Your managers, at the commencement of the year, had to contend with a heavy fall am happy to say that the earnings have been sufficiently large to counterbalance the depression in exchange. Our lasses, gentlemen, have been of an exceptionally severe nature.
They were vecasloned by the collapse of several old i established firms in Bombay, the Straits, and China. The loss in Bombay "lone amounted to £65,000, caused by the failure of a Parsee firm who were reputed very wealthy, and the loss was therefore quite unexpected. The Kastern Banks have all more or less suffered by the same failure. In China you have already heard of the misfortunes of " number of our old constituents. To meet these losses and in order to pay our usual dividend of 30s. per share on the old shares and the equivalent sum on the new, we are obliged to withdraw $1,290, 901.36 from the reserve fund. At the same time I would mention that your directors deemed it best to face the losses at and have made a clean sweep of every thi in the shape of bad or doubtful debts, Considering the continued depression of trade in the colony and elsewhere, it will give you satisfaction to know that the business of the Bank continues in a very flourishing condition; and now having had our share of reverses I trust that when we meet again it will be my gued fortune to lay befure you as good a statement of the, result of tie current half-year as you have had in former years, In glancing over the accounts you will notice that the last call and the premium on the new shares have been fully paid up, makin; the capital of the Bank $10,000,000, ar the reserve fund, after deducting the ssu of $1,290,901.36 already referred to, now 300,000. We hold rupee paper 5,725,000 standing in our books at par, which if taken over at the rate of the day would show a profit of about 4 lakhs of You will also notice that the depo-increased $8,000,000 since the last report, showing the confidence the public have in our institution; and as money here and in the East generally is very cheapend deposits were coming in steadily, your directors have after much consideration decided to reduce the yearly interest to 4 percent. Consequently the interest charge on advances has also been reduced in special cases and wer certain conditions to 6 per cent.
I may add that the reduction on fixed deposits was introduced in India about three months ago with much success. I believe you are all anxious to have full information regarding our Manila troubles. The case was, I regret tu say, further complicated in May last by the action of a subordinate judge who had decreed another embargo of nine Inkhs of dollars, of which $292,000, the amount we had in cash, was seized and sealed, but was not removed from the Bank premises. Thisaction of the judge was altogether illegal, and on appeal agai this high-handed proceeding he wasremiov. and further action was stopped pending the decision of the higher courts. At the present moment, besides the amount lately seized and locked up in the Bank, there is a sum of $328,000 lodged with the Bank of Spain, which you will recollect was seized in March, 1889, making altogether $620,000 embargoed. Not only has the Bank been losing considerably in interest by the lockup of such a large sum, but our business has further suffered in consequence of the Bank being obliged to shut its doors for one month after the second embargo. As the case is sub judice you will of course not expect me to enter into further details but I hope you will consider it sufficient if Tonly add that, as we are advised, our Reoision may be eumewhat deferred you ition is so good that though the final
need not have any apprehension as to the result. (Applause.) We feel certain that ultimately full justice will be done to the Bank by the Spanish Courts. Mr. Noble's health not being robust enough to return to the colony, your directors have confirmed Mr. De Boris in the post of chief manager; he commands their full cuntidence, and I feel sure that of the shareholders also. (Loud applause.) Mr, Noble will still remain in the service of the Bank to give it the beucof his long experience. Mr. Harries havpleted his tour of inspection of all rauiclies, resumed charge of the Ssu isco agency. Mr. Walter, who retired from Shanghai in May last, will come out again in November next on a tour of inspection, He has had over 25 years' experience m the Bank and his reports on the agencies will be very valuable, You will have noticed in the report that. the Directors recommend the election of a third auditor. The business of the Bank has euormously increased of late and there are now returns from 22 branches and agencies to audit every half-year. We feel bound to draw the attention of the shareholders to this matter, as in case of illness, or midable absence of either of the present auditors, it will be impossible for the other tone to gu through the accounts alone satisfactorily. Such appointment, according to the Deed of Settlement, is' entirely in the hands of the shareholders, Before moving the adoption of the report and accounts I shall be happy to answer any questions that, may be put to the chair.
Mr. H. Wicking—Mr. Chairwan, will you please state whether—being of course in possession of exclusive information i virtue of your office—you have d period that you have held the post of Chairman of' this Bank been interested directly or indirectly in the forward or short selling of the shares of this Bank The Chairman—Although T think you have no right to ask such a question, still 1 am in a position to deny it altogether, Mr. Wicking—TI have a perfect right to ask the question.
The Chairman—I do not think so, but now that you have asked it I simply deny Mz. Wicking—I understand you to sy you have had nothing to do with the forward selling of Bink shares The Chairman—I do not exactly know what you mean—Mr. Wicking—No, I don't think-you do quite understand the nature of the question. Will you please look at it? (Mr. Wicking handed a copy of the question to the Chair. man, Chairman—You have asked a question and T simply deny it. (Applause.
Mr. Wicking—I am of opinion, Mr. Chairman, that the mode of electing ti Chairman' of this Bunk is not very satisfactory. I think it should be done either at general meeting or by the Board of Directors themselves by ballot. I think the aystem of appointing a Chairman simnply by rotation is a very unsatisfactory one, "The Chairman—That is a matter of opinion. The directors think otherwise, and according to the Deed of Settlement it lies with the directors to appoint, their own Chairman. That being sv, what does it matter what you think about it?
The Chairman moved the adoption of the report and accounts as presented.
Mr. Murray Bain—I have pleasure in seconding the proposition that the report and accounts as presented be passed.
Carried unanimously.
The Chairman—The next business, tlemen, is to confirm the election of Woodin as a director.
Mr. Fullarton Henderson—I beg to propose that the election of Mr. Woudin be confirmed.
Mr. T. Arnold seconded and the motion was unanimously carried.
Mr. Woodin—I thank you, gentlemen, for the compliment you have paid we.
The Chairman—The next business is the election of an additional auditor. The
Text read from the printed page and cleaned; old type leaves the occasional error.