'The annual ordinary general meeting of the shareholders was held on the 23rd inst, at the offices of the company, No. 3, Billiter Avenue, E.C., under the presidency of Mr. David Reid,' the chairman of the company.
The acting-secretary (Mr. D. L. Low), having read the notice convening the meeting, the Chairman said In rising to move the adoption of the Report and Accounts, which has been in your hands for some little time, and which presume you will take as read, I may say that the results of the year's working have fallen short of the directors' expectations. You will observe that the net profit realised is £2,000 less than in 1895, although we have "had more steamers, with greater aggregate tonnage, in regular and full employment. Throughout the year there has been plenty of cargo of all kinds going eastwards, and we have had our full share at fairly remunerative rates; but, bomewards, shipments of tea and other produce have been smaller and rates of freight, Beiziements, have been' st times, vary particularly from the Philippines and Straits
unremunerative. It having become frequently necessary, with our large carrying capacity steamers, to widen the scope of our ports of call on the homeward voyage, you will readily understand this adds materially to the working expenses of the round trip. On the other hand, our coals have cost a little less than in the previous year, and sundry savings have been effect the ship's general disbursements, thanks to the vigilance of our managing director; but, what is most iny it and material to the prosperity of the company wwe hope to see, ere long, concluded, is an agreement between the regular trading lines to the Far East, whereby rates of freight from the Straits Settlements may be raised to a remunerative level. This matter is engaging the constant and anxious attention of your Board. In comparing the Balance Sheet in your hands with that for 1895, you will notice there are some alterations under the different headings, on which I would offer a few observations The Capital subscribed remains as before "Bills Payable" stand at £52,213 less than in 1895, and this we hope further to reduce in the current year.' Depreciation, Boiler, and Reserve Fund" will with the addition to be appropriated from last year's profits, be raised to £199,199 lls. 3d., 'The "Insurance Fund" has been increased to £14,005 4s, 5d. "Sundry Creditors" is represented by rather a large figure, em-ships' voyages belonging to 1896 no counts, bracing, as it does rebates due, balances of
but not paid on 31st December, and tempora aryadvances,—thisis a fluctuating item, and atthe present moment is very much less. On the credit side of the Balance Sheet, the "Purchase account of steamers" now stands at £704,445 17s. 5d. which represents the entire cost of the fleet, and includes the tug boat and cargo boats, built in Shanghai for the company's towing and lightering work. And, in passing, I may remark, and it will be interesting to you to know, that the builders of the last eight steamers assure us that these vessels could not be replaced to-day except at a considerable advance on their cost. In the "Profit and Loss Account" you will find that general expenses are a good deal Jess than in 1895, as I intimated they would be a year ago, whereas the amount paid away in "interest" is large, attributable to some extent to the rise in the value in money last autumn and winter—this will be reduced in the current year. For the present, however, it tells materially on the year's net profit which you will seo amounts to £44,552 Vis. 4a. this sum we carry £28,000 to "Depreciation, Boiler and' Reserve Fund," and with the balance we are enabled to pay the usual 6 per cent dividend on the preference shares, as well as 6 per cent on the ordinary shares, carrying forward £1,490 95. dd. to 1897 account, a result which cannot be considered unsatisfactory. As regards the year now entered upon I will not venture to prophesy; but I may say thus far twe have no cause of complaint. Itis our constant aim and endeavour to keep down the ships' disbursement accounts, having always " due regard to cfliciency and ample equipment. In the matter of insurance we are now getting the risks on the fleet taken atas low a rate, we believe, as any first-class line in the same trade, showing the appreciation by the underwriters of the high character of your steamers and their management. And I cannot refrain from repeating what I have said at previous meetings, that it isa matter for congratulation to remember that during these fourteen years of the company's history not only has there been no steamer Jost, but no accident of serious moment has' ever occurred. I do not allude to this in any boastful spirit; but I think it not only reflects credit on the shipbuilders, but it reflects credit on the executive, on the careful selection and supervision of our captains, officers, and engineers by our able and indefatigable managing directors, and on the loyal and devoted service which these captains, officers, and engineers have rendered to the company. The now steamers have come fully up to the expectations of your directors; and with nearlydoublethe carrying capacity of the earlier built boats, can be worked relatively much more econo-tically. Since the accounts were made up to lst December last, we have found it to the advantage of the company to sell the -Keemun, and when the ship-builders are less full' of work and more reasonable in their demands than they arear present, we shall see what can be done to replace this vessel with one of a modern and more suitable type. The tug-boat and cargo-boats built last year are in regular employment at Shanghai, and have proved a valuable adjunct to the working of our steamers' cargoes at that port. The company has, therefore, every facility now for meeting all the demands of its shipping friends, from whom loyal and liberal support has been received in past years. The rates of freight, unfortunately for the shipowners, by reason of the greater competition, have steadily tended downwards; but with our larger steamers, improved machinery and greater facilities for loading and discharging, the working expensesarerelativelyless. Youare, most of you, aware how much the character of the China export trade has changed sine the company was formed. We have no longer the large, fine tea cargoes which, for many years, our steamers carried so satisfactorily—in less than ten years the export of black tea to Great Britain has declined more than 80,000,0001bs., and, as recently as in 1893, I find that our steamers brought away from Hankow and' Shanghai 21,111 tons of cargo, and from Foochow 10,335 tons, whereas, in 1896, the figures were 11,144 tons, and 1,791.'tons respectively whilst from Singapore in 1893 we carried 24,196 tons, against, in 1896, 37,120 tons, and from the ports of Manila, Hollo, Cebu, Saigon, Penang and Cochin, we carried in all last year, 56,239 tons and nothing whatever from these ports in 1893. Great expectations were entertained a year ago from the opening up to foreign trade of the West River in the South of China and of Hangchow and Soochow in the North, of further advancement in the way of railway development, and this was fostered by the utterances of the distinguished statesman, Li Hung-chang, on his visit to this country Inst summer; but those of us who have had long experience of China and Chinese ways are not surprised to find but slender commercial advantages have, as yet, been derived, and we know that the Government of that country is slow to adopt Western ideas of trade. In the small island of Japan we see the enterprising and ambitious Government and people of that country not only carrying on large industrial undertakings after Western models, but they have already over 2,500 miles of railway in working order and general use, whilst in the vast Empire of China there is only one small lino of eighteen miles in the Province of Hupeh and another military line of about 200 miles extending from Tientsin to Shanhai-Kuan, of mo advantage whatever to foreign trade. Schemes have been brought forward for the construction of a grand trunk line from Canton to Hankow and thence on to Poking a distance of some 1,150 miles, opening up to the mind of the shipowner visions of vast quantities of material to be carried thence from this country. But development is not likely to cone from the Chinese Government or and It must be forced on the Goreramont Chinese people; it must come from outside,
sooner orleter. There are, therefore, great possibilities in the future of the carrying trade between this country and China. You have a fleet of steamers excellently well adapted to meet any expansion; in fact, admirably adapted for any carrying trade, With these remarks I will now
sented, be received and adopted and entered move that the Raportand Acounts, as pro: on the minutes.
Mr. J. A. Maitland—I have much pleasure in seconding the proposal. I have nothing. to add to the very exhaustive account of the affairs of the company which has been given by our Chairman. We, as directors, are all perfectly satisfied with these accounts, but naturally we should like to see them better. My attention has been called toa remark made in some journal criticising the report and asking whether our steamers could be sold for £705,000. The gentleman in making that remark did
Text read from the printed page and cleaned; old type leaves the occasional error.