'The annual meeting of the' shareholders of Messrs, 8. G, Farnham and Ca. Ld., was held on Friday at the offices, No. 14, Broadway. Mr. J. R. Twentyman presided, and there were also present Mr. G. Peebles (Director), Mr. W. A. C. Platt (Legal Adviser), and Messrs. W. 8. Jackson, Ferrier, J. M. Young, M. Wolff, T. Weir, Zee Lan-char, Brodie A. Clarke, H. R. Boyd, A. Korff, D. Cranston, J. Bucha nan, L.' Camera, J. Warwick, E. Guillemon, Mordt, van Pelt, Beattie, C. Murray Adamson, J. Smedley, A. Miller, von Rucker, and J. S. Knowles (Secretary).
The Chairman's speech was as follows Gentlemen,—Our report and accounts have been in'your hands for some time, and with your permission we will take them as read. The accounts placed before you verify the statement made last. year that we had attained a splendid position, and we were gradually improving it.
The Docks and Machinery are all in good working order, and the extensive repairs necessary for the up-keep of an establishment I'ke ours have all been charged to running expenses.
The whole of the land we possess stands in our books very much below its market value. The Docks are also much below actual cost of construction. I refer particularly to the Old Dock, and Lankadoo Dock. The Old Dock, as you will see in the aceow'sts, represents Tls. 150,000 and the Tunkadoo tls. 130,000. I have no hesitation in telling you that the cost of construction of such Docks to-day would moun a big increas on the amounts I have just named, without taking into considera. tion the land. to thy Cosmopolitan Dock you will observe it only studs in our accounts at Tls. 347,200, and is the largest and deepest Dock in Shanghai, and the sum named is much below its actual value. Last year we considered it expedient tostite off Tls. 50,000. I then informed you our Reserve Fuud was assuming such ex: tensive proportions and that your Diseetors in your interest considered it unnecessary to reduc: the value of the Dock farther.
Reference mast also be nude to the large Boiler Shop and Plant recently erected andextendet.. The Machines are all in full work, and enable us to turn out almost any kind a d every description of ork from the smallest to the largest class of boiler, and ship work, thereby adding to our earning power.
Thave brousit you now, gentlemen, to a point. which requires fuller explanation, moment we opened our Cosmopolitan Dock, and commenced operations with the extensive machinery, that moment meant increased emuing power, and incrossed return, We do not now in these days depend on large profits, but upon the large overturn, and our profits depend on the gross amount earned.
Tt must therefore be obvious to you, gentlemen, that we are in a splendid posit tion, and nve gradually increasing it.
Tt is perhaps not out of place ut this moment to say something in regard to our European staff, and that is they have helped to carry out the motto of one of the promoters of this business, which is, "Industry the means, plenty the result"
Daring the eight years we ha been working as a Limited Ca. we have paid back to the Shareholders Tls. 877,500 or Tls. 77.500 more than the original Capit of the Company, which means, gentlemen, you have received your capital bach and about 10 per cent more.
Another important item is we howe taken over the Oriental Dock," T should have stid absorbed it, and it has now become. part We have the competition of which we may have more to say next year. The deficit we propose to place to a special suspense account to beccleared vit in one, two, or three years occasion mnay require.
Another important and interesting matter for you is, that (repeated the sane last year) the Company continues to prosper, and from appearances, notwith-Standing the proposed increased Capital, your Dividend is assured for next year also, We are gradually economizing at the Internatioal Duck, late Oriental Dock, and hope soon to hare this place working on a profitable basis. Now comes the point to which I referred last year, that wre should not sit still, but should be up and doing. At the time this was considered by some people mysterious. Now the mystery is explained. We are incrensing out Capital considerably, hare another Dock on our hands, and when the political affairs of this' country are settled Gown we shall be ina position to cope with almost anything.
You will observe the Machinery Account has been serv much increased, and I feel suto you are quite willing to leave it to your Directors to decide whether further extension is necessary or not. You will also observe that the profit of Tls. 43,000 on the sale of the 500 Shares at the commencement of this year lias been placed to credit of reserve, and with the TIs, 30,000 placed to credit of reserve now makes vur total reserve fund Tls. 500,000. We have also a depreciation fund of Tls. 30,000, to which must be added Tls. 10,000 this year, or Tls. 40,000 in all.
I may mention here, gentlemen, I do not attach much importance to the depreciation fund, a. we keep the Machinery and Plast in good working onder, and as customary write the amount off as canning expenses.
Tregret to inform you that our colleague Mr. Galles has been compelled to retire owing to the state of his health. We worked together shoulder to shoulder in your interest, for many years. He always had the interests of this business at heat, and I feel sure you join with me in the wish that he may remain his strength and enjoy the pleasure of retired life, Every economy is observed in our business, and I feel sure you are satisfied that the Directors and Sta have proved themselves worthy of the trust reposed in then.
If any Shareholder has any questions to ask, I shall do my best to answer them.
There were no questions, and the Chairman proposed and Mr. G. Peebles seconded, that the report and accounts of the company for the year ending 30th June, 1900, printed and circulated, be adopted and approved, and that the Directors be authorised to pay a dividend at the rate of Tls. 15 per share and a bonus at the rate of Tls. 15 per share to the shareholders on the register at this date.
This was carried unanimously.
Mr. J. M. Young proposed, Mr. W. S. Jackson seconded, and it was carried, that Mr. H. yon Rucker and Mr. T, Groundwater be elected Directors of the Company.
Mr. B. A. Clarke proposed, Mr. A. Korff seconded, and it was carried that Messrs.
D. Scott and J. D. Thorburn be elected auditors for the present year.
Text read from the printed page and cleaned; old type leaves the occasional error.