The Gfth ordinary General Meeting of the shareholders in this Company was held on Friday afternoon (L4th inst.) at the office of the General Managers. Mr. A. P. McEwen was in the chair, and there were also. present Messrs. J. Prentice, A. McLeod, Tee San, Yeh Hong-dow, W. Dobie, G. Buchanan, C. Dowdall, C. H. Ross, J. Kerfvot, Tze Lan-cha, B, A. Clarke, A. Flest, J. F. Rodewald, H. Morrison, F. Augustin and O. T. Ede (Secretary). "The notice calling the mecting was read and the chairman said Geutlemen,—The report and accounts having been in your hands for some time, we may as usual take them as read. The results as shown by our accounts are, I think, sufficient indication of the difficulties with which we have had to contend; but it may be interesting to shareholders, if I give briefly an outline of our year's working, so that you may judge for yourselves as to the vicissitudes ut fortune which attend the Cotton Spinning Industry in North China. Many gentlemen present will remember the excessive rainfall in August and September, 1899—the result of which was disastrous to the Cotton crop of that yeur—these being the months in which the Cotton ripens and plucking is carried on by the native producers. Unfortunately, statistics are not available, but I think Tam not far wrong in estimating that the China Cotton crop of 1899 was at least 30 per cent below normal, and as a consequence of this shortise," prices on our. local market rose rapidly, until at the commencement of our year the quotation for Best Fire Ginned Cotton stood as high as is. 174 per picul, or Tls. 5 per picul higher than the average price for the preceding year. As you are aware, it takes a considerable time to. induce Chinese merchants to pay about 30 per cent higher for an article than they have been in the habit of paying, and it was not until December that we were able to obtain corresponding returns for our yarns. About this time it became evident that, as the Indian Cotton crop was a failure. and the American crop very much below estimates, the world's sup; ly of cotton was insufficient for current requirements. We therefore considered (and I think that this view was shared by our competitors) that it was wise and prudent fo lay in our stocks of Cotton before a further advance tock place, and this cordingly was done, six months' supplies being purchased, the average cost of our purchases being under Tls. 174 per picul. During the months of January and February, our trade was satisfactory; we were able to sell our production freely, and as in the meantime Cotton had advaneed to the neighbourhood of Ts. 19, our Cotton stocks showed a handsome profit: on cost, and at our stocktaking and balaneing at the close of the month, we were able to show a substantial balance at credit of Profit and Loss Account. In the month of April, Cotton advanced to Tls. 21 per picul, due to extensive speculation on the part of Japanese buyers, and it became quite impossible to sell our production, buyers having got alarmed and demand ceasing almost entirely. Stocks began to increase rapidly, and in May we found it necessary to discontinue nightwork at our Mill in order to curtail production, Rumours of impending war between Japan and Russia and a severe financial crisis in the former country caused speculators to sacrifice their stocks of cotton and yarv, and a fall of over Tls. 10 per bale was registered the price of yarn, while on the 18th of June the "Boxer" Rebellion burst into flame, and from that date tne all-important markets of- Tientsin and Newchwang hare been closed. What has taken place since then is probably known to all connected with the trade of Northern China,—our markets have been practically at a standstill, and during the month of August it was found advisable to close our Mill for three weeks. This briefly, gentlemen, is the history of our past year's working. It has been a disastrous year, and I trust that we may never see its like again. During the year the whole of the machinery, engines, and shatting have been thoroughly overhauled, and all are working in a first-class manner the substantial sum of Tls. 17,000 has been expended in necessary repairs, and had circumstances permitted us to provide what is necessary for depreciation, this expenditure would of course hare' been deducted therefrom. I am glad to be able to inform you, gentlemen, that since ws closed our accounts on the 3ist of October last, we have sold the whole the Mill's production ahead up to March next, and having been fortunate in securing cotton at cheap prices, some of it at the lowest point of the marker, the profit will go along way towards wiping out the past year's deficit. Before moving the adoption of the report and accounts I shall be lusppy to answer any questions.
No questions being asked, the Chairman said: I have to propose that the re jand accounts for 1900: be passed. is was seconded by M. A. McLeod and carried unanimously, Mr. B. A. Clarke proposed that the consulting committee for the ensuing year consist of Messrs. J. Prentice, A. McLeod, Tee San, Yeh Hong-dow and the senior representative of the Company; Mr. Tze Lan-cha seconded and it was carried unanimously. Capt. W. Dobie proposed that Mr. G. R. Wingrove be elected auditor for the ensuing year, Mr. Colin Buchanan seconded and it was carried.
The Chairman then said: Gentlemen I have to thank you for your attendance and I should like to say that it is matter of great regret to the General Managers that this unfortunate state of affairs should have occurred, but as I mentioned in my speech, up to March we did a very good business and I have every confidence that next year will show a more favourable state of affairs, The meeting then terminated.
Text read from the printed page and cleaned; old type leaves the occasional error.