extraordinary general_mecting of the Shanghai Engineering, Shipbuilding, and Dock Ca., Ld. was held on Wednes-2nd) evening at the Imperial Bank of China, for the purpose of ratifying a agreement dated the Gth of August, made by the directors with Messrs. S.C. Faruhum and Ca, La, having" for its object the "purchase by such company of the whole of the undertaking of the Shanghai Engineering, Shipbuilding and Dock Ca., Ld. Mr. Osborne Mid-diction presided and there were also pre~ sent Messrs, C. Brodersen, Chun Fai-ting (Directors), W. C. Platt (Legal Adviser), Brodie Clarke, N. Moller, Captain Knights, T. Weir, R- A: Ord, J. McLeod (Secretary), and others, representing in all 2,908 shares.
The Chairman opened with an explo tion of the circumstances under which the provisional agreement had been entered into. Their last balance sheet showed that the cost of building the dock and purchase of plant and land absorbed a larger sum than their capital. Since the Dock was opened it had been w constant struggle to finance the Company, a struggle which they had every reason to believe th would have surmounted, had it not been for the present political troubles. Last ear they entered into several large proable contracts to build tugs, lighters, ete., ote., but the scarcity of skilled labour and the unfortunate of their al manager, Mr. Blechynden, had resulted in their not being able to finish some of the work within contract time. The consequence was that one client re~ quested them to stop work, and others failed to pay instalments due. They were not allowed to exceed their present overdraft, and though every effort was made the directors to finance the company and tide over the difficulties, but h their shares below par, they felt it would he useless to place more on the market, and owing to the present stringency of the money market they felt it would be equally $0 to isto debentures, A company like theirs, involving over a million and a half of fuels, could not be very well placed on tho market or hawked about like an ordinary piece of land, so the matter was put into the hands of a discreet broker, who offered the company to two local fin with the result 8. C. Farnham solution was passed, they would get a share of equal value in a flourishing dividend-paying company for each of their ordinary or preference shares, and two for each founder's. If any shareholder had any questions to ask The would answer to the best of his ability.
Mr. R.A. Ord asked whether this agreement was known of at the last: meeting, when they were told that the dock was in a flourishing state. The present proposal must have taken months to arrange, and the Directors ought to have notified the shareholders at the previous meeting.
The Chairman replied that at. that time neither his ce-directors nor himself had Jmown of it. He had every confidence that they would be able to tide over their difficulties at that time. It came on them very suddenly. In consequence of some of their clients failing to pay their instalments, they were obliged to call on the Bank for more money to pay salaries with, and the Bank refused.
Mr. Nils Moller said they had spent all their money on the dock, and when trouble came they could not face it. Besides Mr. Blechynden had not been assisted in financial matters as he should have been by the Directors. The Directors were alone to blame for the losses the company had incurred. Answhere but in China they would be made to pay. They took their salaries and shouted Hurrah," but did not give the secretary and manager that financial help which was necessary He knew Mr. Blechynden as sin eminent engineer, but in financial matters he was out of his clement, Th agement of the Directors in ta too low had The to hes d said with regard to Mr. Blechynden, and he was sire the Directors endorsed his opinion. But so far as the Directors were concerned he would point out that they, as non. technical men, had nothing to do with the ing of contracts. TI the work of the engi Then aga ar as the financing of the company was concerned, they felt that they had nothing to reproach themselves with on that score. haa done everything possible to the company.
There was very little further discussion, and after the agreement had been read out by Mr. Platt, a resolution confirming the provisional arrangement. was passed, on the proposition of Mr. ed by the Chairman.
This ended the meeting.
Text read from the printed page and cleaned; old type leaves the occasional error.