General Meeting of this Company was held at the Head Office, No. 13, Nanking Road. Those present were Messrs. G. R. Corner, J. 8. Nazer, H. Symons, C. Dowdall, C.
Dallas, A. Dallas, A. Cond, Hutchings, H. J. Sonne, W. W. Clifford, E, Byrne (Liquidator), W. H. Short, M. David, J. S. Bryan, J.C. Duck, Bowness, E. Quick, A. E. Jones, F. Such, W. Ortwin, J. Nolting. W. Mesny, W. Wise, 8. B. Remedios, W. Hayward, (Secretary), and W. A. ©. Platt (Legal Adviser), representing in all 3,231 shares, Upon the motion of Mr. J. 8, Nazer, second by Mr. Corner, Mr. C. H. Dallas was voted to the Chair.
Phe Chairman—Gentlemen, when we last met in this room we passed certain resolutions voting the Hall and Holtz Co-operative Ca. into liquidation, and we anointed Mr. Byrne as Sole Liquidator. We meet to-day as an Extraordinary General Meeting of the above company for the purpose of passing certain resolutions, which T will ask the Liquidator, Mr. Byrne, to put before you, and he will doubtless take that opportunity to tell us what has been done since we voted him into his office, Mr. Bryne—Thongh the liquidation of this company has not sufficiently advanced to enable me to lay before the shareholders a statement of accounts, I should like before entering into the matter of the new company to give an idea of the present position of this company.
In the first place I would mention, that owing to the good-will and forbearance of the holders of our debenture stock we were enabled to enter into voluntary liquidation, which gave us the opportunity to realise to the best advantage. After we ascertained the amount of the heavy losses in Hongkong, it became plain we were ranning great risks by continuing to trade with the heavy load of debenture debts hanging over us, not only on account of the heavy load of interest, and the Tls. 10,000 that had to be drawn every year, but also of the danger of failing to meet these engagements. In such a case the ample powers, Of the debenture holders enabled tem to swoop down on us at any moment and compel payment of the whole amount. Moed not trouble the shareholders with details of how arrangements were made to finance two large blocks of debentures on favourable terms to the company, suffice it to say the bonds came into friendly hands, and as the balance of debentures was held by our own people, we were enabled to escape from a precarious position, We then had time to look round and choose the best means for accomplishing the object we had in view, viz. the paying off of our liabilities. Accordingly a meeting was called and liquidation agreed to. Knowing that our assets would more than cover our liability and as we considered the business of the company good if fairly well conducted and would have a fair chance of success—and knowing also the disastrous results of trying to realise the assets of " company like ours to the bitter end—we felt that a new business on a more condensed scale would be the best means of saving the pieces, or in other words he the best for the interests of the shareholders. Tt was necessary before the formation of a new company to realise as much as possible by the sale of property, stocks, etc. The liquidation has extended over six months and we have paid off our overdraft which stood near Tis, 40,000 at the latter part of Inst Brewery Ts. 20,000, and paid off debentures ear, we have redeemed mortgage on the
tothe extent of Tls. 37,000 besides reducing sundry creditors. After setting aside the stock for the new company we estimate our assets will be sufficient to pay of four linbility. We have imported and paid for goods to the amount. of 850,000. {inthe Intersil under review we had to keep in mind the ultimate object of forming the new company, consequently we had to import goods to meet current wants and keep the business in fair working order. Of course shareholders will see the difficulty of carrying out the two objects at the same time. Under the circumstances the same drastic policy we could have adopted, were we completely closing up, could not in our case be carried out, We have let off a portion of the premises, which will reduce the rent by half, As we are secking primarily the benefit of the present shareholders by giving them all the advantage that can he obtained out of the business, we asked the old shareholders to come into the new business, and out of a total of 6,000 shares the holders of 5,415 shares have at the present moment agreed to accept shares in the new company. The balance is represented a good deal by people who were away, but many of whom we know are thoroughly agreed as to the necessity of commencing the new company, but from whom time has not allowed us to get their answer. We do not anticipate there will by any dissentients we have had none so far. I might tell you what we have done in the way of reducing the stock and expenses, and soon, We have reduced our stock in trade by $39,315 in the last half-year. I think I mentioned Defore, we have imported $50,000 worth of goods, and local purchases amount to $25,500, Book-debts are those which at present appear to be the least reduced. They werereducedin thesixmonths$15,000, but that is owing to the fact that even in spite of liquidation we have done more business this half-year than the similar half-year of last year, and another fact is that owing to that and the shutting down of expenses as much as possible, as far as T can see from the figures of the stock. taking, which was only concluded on Saturday, Iam pretty well usured that instead of considerable expense accruing owing to the liquidation, we shall come out quite clear, if not a little to the good on the half-year, Another very important point is in the matter of expenses. The expenses of running this business during the years 1891-92 amounted to $96,632.77 in the years 1892-93, we managed to reduce them a little and got them to $88,944. In the last half-year which has just expired, the expenses will amount to $32,817, which, supposing we take the year would amount to $64,000, against two years ago $96,000. Now I do not look upon that as at all final, because we have during the' present half year been exposed to expenses which will not occur again. For instance, there is the brewery, which we have sold. We have still of course the large stock of beer on hand, which we have got to dispose of, and in order to be able to keep that beer in proper order we have ud to keep brewer for the matter of three or four months, which has not expired yet, and we had to keep on a staff of workmen' to look after the beer, and that will continue until we have disposed of the stock or reduced ita great deal, but that shows there are expenses in connection with the brewery, but they will fall in in the course of a few months. There are other expenses which will not occur again. For instance, the rent which has appeared in the last half year, will he reduced by the sui of TMs, 1,000 a year, which we have let off to the Japanese Bank. When we commence the new company our rental will stand just half what it was before. I think that Il give you a pretty good idea of the old company at the present moment, and I will just now give you a short outline of whi is proposed with regard to the new pany. I think we can safely say that the expenses of running this business in the future will not exceed $60,000 n year, and it is very possible, as we go on, and gradually yet the thing into good working order, we will even bring it down below that.' Tt is proposed to form a new com-
paid up, but only 6,000 to be issued at vany with 7,000 shares of $20 each fully present, that being the exact amount of the old register; the other 1,000 to he issued ater to add to working capital. The new company propose to buy for $120,000, $160,000 of stock, thus leaving a margin" of 840,000 to work on. The balance of the stock and assets will be set aside for the payment of liabilities and will be Tiquidaved separately, and should there be any sum over and above after paying all our debts it, should be passed over to the new company to be used by them as working capital or in such other ways as they thought proper. We should then start on fairly favourable lines—leaving the bogie silver out of the question—which is of course beyond our control. By the reduction in the premises we shall be able to stand at half the rent of the old company. We have been able to consolidate the stock, and the business is in a more manageable condition, By closing out some departments not making profit we shall be able to considerably reduce expenses. The foreign and native staff is a good one and working excellently. I say this with great pleasure. The expenses can be reduced to a much lower point than existed with the old company. I do not know that T need say any more. I think you will see what we have done has been with a view to putting this thing on a better basis. We certainly cannot recoup the heavy loss made before in Hongkong and elsewhere, but I think we are now getting the thing in hand so that in fairly
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