The eighth annual general mesting of shareholders in this Company was held at the offices of the Company, 18, Hankow Road, on Friday. Mr. J.D. Thorburn presided and there were also present Messrs. H. J. Such and A. McLeod (Directors), E.'S. Perrott, P. H. Purcell, W. H. Poate, F. W. Such, and E. 0. Arbuthnot (Secretary).
The Chairman in opening the proceedings There being now a quorum present, I shall proceed wits the business of the meeting. The report and accounts have been int your hands some divs and I would ask you to take them as read. Before asking you to pass the report and accounts however, I wish to give you a resume of the yeat's working, more especially as some of you were nut present at the explanatory meeting held on the 22nd inst.
year's meeting I mentioned, as the progress of your business, that the yeat 1894 showed a loss of Tls. 21,548.71 and 1895 again showed a deficit of Tis.
367.91 while 1896 pointed to a profit of 'Tls. 7,212.96 on 14 months' working. This year the 12 months under review show a gain of Tls. 9,635.31 after providing for the debit balance brought forward on profit and loss accounts of Tls. 2,474.02 or an actual gain of 'Tls. 12,119.38; and this profit would have been' greater, but for the postal rates in operation during the early months of the year. I shall refer to this more particularly when speaking in connection with the Shénpao. The balance at the credit of profit and loss account nam-ly Tls. 9,635.31 has been transferred to depreciation and adjustment. In re: ponse to the desire expressed at last year's meeting, when it was stated that the value of your land appeared in the accounts at a sum very far below its value, whereas nothing has been written off from the value of plant and building in the way of depreciation for many yeats—the accounts have now been made up as showing your land at.
enhanced value and your plant, ete., at a sweeping reduction. The balance at credit of profit and loss account has been deducted from the amount so charged to the value of land. Of course these alterations in your accounts do not by means make the land appear at any-like its to-day's value, but they do make the Plant, ete., stand in the books at a low figure. You- can in this way seo more clearly what your xssets|. consist of, and I think you will agree with your Directors that the Valuations set down in the published balance sheet are low. A comparison of the Working Expenses as set forth in the Statement of Profit and Loss Account—with last year's statement, shows a considerable saving, especially in tie matter of interest and salaries, and this year there will be still less interest to pay. At the present moment Tam glad to be able to inform you that you have practically no liabilities of any rioment except the mortgage to tze Insurance Association, whilst you have credit balance on your current count with the Hongkong and Shanghai Bank of some Tls. 2,000. Soap-making. has been given up in the meantime at all events, and the Cotton Seed Oil Mill has not been worked for the reasons given at the explanatory meeting. The Shénpao I am happy to say has done better than your Directors had at one time expected. The restrictions imposed, and the rates of postage charged during the first month of the year, caused heavy outlays, and as a result many of your customers, at other places than Shanghai, discontinued their orders, and consequently the circulation of your paper received x severe shock. On representation of these hardships to the postal authorities relief was obtained, and the newspapers now go forward on the freight basis as in home countries..' The circulation has been fully recovered and indeed increased and you have every reason to congratulate yourselves on the posse: sion of valuable property which should become more and more valuable as time goes on. Allusion, was made Inst year to the somewhat Chinese look of the newspaper on occasions. As mentioned at that time, the attention of the management had been directed to the question of getting a new kind of paper. And this has been accomplished. The new kind of paper has proved so satisfactory that we have entered into a contract for a regular supply and the first delivery under our arrangement should take place ina week or so now. The Acid Works have done a considerably larger business. 'The Company' refiners did not take quite so much aci as during 1896, which year as you will recollect showed a marked increase on 1894 and 1895, but this has been fully com-ensated for by the increase -in local business. Sulphur, Coals, Wages, etc., have all become heavier burdens, but thanks to the care, forethought, and invention of Mr. Mann this burden has been lightened by an improvement in the method of manufacture. Considerable orders for acid are in hand and the outlook for this year's business is therefore assuring. I do not know that there is anything more in connection with your business which I can touch upon to-day. Except to report again that it would appear that our feet are at Inst clear, and I seo no reason at the moment why the balance at credit in the Bank should not be increased sufficiently during the year to admit of your Directors proposing to pay a dividend when we {meet again in March, 1899. Ishall be happy to give any further explanations or to answer any questions you may think it in the interest of the business to call for or to put to me.
The Chairman then proposed that the accounts be adopted.
Mr. H. J. Such seconded and the te-solution was unanimously carried.
Mr. W. H. Poate proposed:—That the retiring Director Mr. J. D. Thor. burn be re-elected.
Mr. Purcell seconded and the motion was agreed to.
Mr. F. W. Such moved the appointment of Mr. Wilmer Harris as auditor at a remuneration of TIs. 100 per annum.
Mr. Perrott seconded und this was also agreed to.
The meeting then terminated.
Text read from the printed page and cleaned; old type leaves the occasional error.