The fourth ordinary general meeting of this company was held at the Central Hotel on Tuesday afternoon. Mr. E. A. Probst presided, and there were also present Mr, J. L. Scott, Mr. D. Brand, Mr.
Davis, Chew Shing-cheng and Pau Soo-san (directors), Messrs. R. Toeg, J. M. Young, F. Gove, J. Jones, J. F. Seaman, C. Iburg, J. Ruff, G. W. Noel, Whittle, H. P. Wilkinson (legal adviser), and J, M. Wood (secretary), representing 2,627 shares.
The Chairman in opening the proceedings said—We have now n quorum present and we will proceed with the business of the meeting. Before asking the secretary to read the notice convening the meeting, I may say that the first notice was to the effect that the meeting would be held at the offices of the managers of the Company, but we altered the place of rendezvous, on the ground of the accommodation for shareholders, to the Central Hotel; notice of which change was. duly given to all the shareholders.
'MI. Young—Lnever received notice ration and only saw it casually pers.
The Chairman—I can only say that notice was given to every shareholder through the medium of the Local Post office.
The secretary having read the notice calling the meeting 'Who Chairman said—The report and accounts having now been in your hands for some days I will ask you to take them as read. With reference to the report and accounts, I will begin by referring to the Profit and Loss Account. Our Directors' fees Tls. 5,250 and Auditors' fees Tls. 500, General Agente' commission (Tls. 4,000 committee and office expense Tls. 5,000) Tls. 9,000, are in accordance with the Artictes of Agreement and the Articles Ansociation. The item of Ts. 14,399.49 is the pportionments of Interest on the difference between our Share Issues and our Capital Expenditure which we think, it is expedient to keep separ: from the item of interest on funds borrowed for working capital which has been debited to Working Account. The interim Dividend of 3 taels per share paid for the 6 months ending the 31st of March amounts to Tls. 25,134 and considering the profits of Working Account to that date showed Tls. 63,305.16 to credit, your directors considered th fully justified in paying the said interim dividend. Turning now to the credit side of the account we have a balance brought forward from last year's account' of Tls. 2,678.69. The next item is an' income of Tls. 6,268.33 derived from rents from our Chinese houses; from this amount we have deducted interest at 6 per cent on our Capital outlay of Tis, 76,300.53, viz., Tis, 4,578.03, thereby ful6lling our promise made some two years ago that this investment would be dealt with separately to give us anadequatereturn, being atthe same time of great benefit to our workpeople. Transfer fees amount to Tls. 9. The premia on shares Tls. 5,961.60 is the result obtained from the issue of. new shares, which issue I will allude to Jater on.. The balance of Working Account to the ist March showed a profit of Tls. 63,305.16 from which we have unfortunately had to deduct a loss of Tls. 23,748.82 made on the working of the six mouths to 30th September last, leaving a net profit on Working Account for the year of Tls. 39,556.34. We regret to say that the final result of the Profit and Loss Account is a loss of Tls.5,289.97 to be carried forward to New Account. Tam sorry to have to admit an omission in the Accounts, but I can satisfactorily explain how it was possible that it should out forethought. The chief items are have occurred; the omission is Mr. Wood's connection with the general-improvement salary amounting to Tls. 3,000. Strictly in and addition to the spinning plant, the speaking, under the agreements this charge cost of a Fire Engine and other apparatus, should be borne by the General Managers and very necessary improvements to the out of their allowance of Tls. 5,000 for water-supply. I think I can now safely Office-Expenses. But when our Man: say that our mill is fully equipped and i left us last year we came to the conclusion first-class working order. in fact, such is of the Mill we could. dispense with n independent" expert, and our very ox-that with Mr. Jones's practical knowledge the opinion which has been given me by an Manager, providing he, Mr. Jones, had some cellent outturn also testifies to the fact. I extra assistance. With this. view we en-may here mention that the scheme to gaged Mr. Wood, who living in the Mana-latd another 5,000 spindles which I put ger's House as Pootung was able to exer- before you at the Inst. dvnual- meet-cise close supervision besides fulfilling the ing, your Directors have not considered duties of secretary, and the plan has worked expedient to carry out. Sundry appli-very well. Seeing that under the agree- ances, Tls. 3,342.61, represents plant of a ment the salary of Manager is to be more or less perishable nature, which from borne by the Mill, the Directors agreed in time to time will require writing down and lien thereof that the Company should replacing, Furniture Tls. 4,471.16 needs pay Mr. Wood's salary, which meant be-|no comment. Steam Iaanch Tls. 2,600. tween the two considerable _savi This. very cheap and necessary acquisition However, this understanding was: over- "s providing a rapid means of communica-looked and the General Managers i ion between this <ide and Pootuhg. Fire advertently continued to be debited with Insurances Tls. 5,793.55 represent the value Mr. Wood's salary. This was only dis-} of the unexpired portion of our Policies covered after the Report and Accounts had Ginning Mill. At the cost of Tls, 21,717.14, been circulated, but the amount in question which includes about Tls. 3,000 for some is due and will be paid to the General necessary repel we have acquired from Managers. T will now go through the items the Cotton Oleaning and Working Ao. the of the Balance sheets. Dealing first with the whole of their Buildings and Plant. This liabilities: our paid-up Capital stands now Plant includes two Hydraulic Presses which at Tls. 838,400 represented by 8,384 shares enables us now to do all our own press-of Tls. 100 each, as against Tls. 783,800 packing. This Ginning Mill stands on tne and 7,838 shares in last year's accounts. same lot as ours and its ultimate purchase Wo have therefore issued during the was contemplated by your Directors at the year 546 new shares. In my speech at time made their lease. The pried the annual meeting T announced that it] pald is very ressonahlg. and we find that was the intention to issue 662 new shares having our Ginving Mill separate from but we were compelled to keep back the main building has many advantages. small number pending the settlement of Our original Ginning Plant which is now slight difference with Messrs. Bserln supplanted by our enid purchase we propose Ca., contractors for our machinery, to realise.. Cotton in Stock Tls. 5Y,697.38. under whose contract they have to be You will see that the stock we held was very allotted shares in part payment. The small and in fact throughout the past fow difference in question will probably be months your directors, with the high price submitted to arbitration and I-trust will] ruling for cotton, adopted a hand-to-soon be satisfactorily settled. Our over- mouth policy. Yarn in stock represented draft at Bankers stood at Tls. 679,615.96'; the large amount of Tls. 333,679.75. I this is a much larger amount than your] feel that I need not weary you by a Directors like to see, but under the circum- lengthy discourse on the past history of stances it was unavoidable, and I amour yarn market. 'The crisis through leased to be able to state that it has since which our industry has passed is well-een considerably reduced. Suspense known to you. Suffice it to ray' that account Tls. 2,825.23 is composed of sun- when your Directors saw the dangers that dry items debited in the September threatened, they first of all took t! account but only paid for in October. caution of suspending night worl, a1 Looking now to the Assets we have under sequently they went on short time, the heading of Buildin; id Land Im- working only four days a week, and thu:
ents a sum of Tis, 228,680.13 ash am glad to say were able to do with-against last year Tls. 211,920.03 or anlaut in any way disorganizing the labour increase of Tls. 16,760,—which glad to employed at the Mill. I a accounted for by the cost of a go-} be able to state that. we have since been some additional houses for the staff, able to realise the whole of our stock bridge across the creek connecting of yarn at our. stock-taking prices.
mill with the village, and the fencing in Moreover, the Mill is again working th and draining of the property, all of which full six week, and our production is were necessary additions and improve-; sold for a short time ahead. House at ments of a permanent nature: Land Pooting Tls. 385.67, this item: is in conand Chinese Houses now stands at Tis. nection' with some repairs to a dwelling 78,322.87 as against Tls. 74,153.57, we} house leased at Pootung, which sum is have therefore spen'. an additional is. recoverable from the lesses should they 4,179.30 on new houses and on raising the wish to terminate the lease within 3 years. land. This as I have already stated is a Preliminary expenses Tls. 4,129.87. It is by self-supporting investment. Plant and Ma- an oversight that this amount has not been chinery. This is naturally the biggest and written down; however, as we have unfortu-most important item with which I have to nately no funds available for that purpose deal. The amount is Tls. 740,465.07 any amounts written off would only have as against Tls. 678,827.49 in last. year's swelled the loss in Profit and Loss account accounts or an increased outlay of Tis. it is as broad as it is long! Compradore's 61,637.58. From this amount I may at cash Tls. 3,939.39 and American Trading once deduct Tls. 25,000 which I stated at Ca. Tls. 5,866.36 are amounts they have the last annual meeting to be still due in.hand for current expenses. The stock &Co. Thave there-re to explain an extra Stores is represented by lis. 24,650.27. under our contract with Messrs. Baerlin in hand of Coal, Engine Supplies, and Mill
expenditure of say Tls. 36,637.—Now it is The last item is Tls. 5,289.97 balance of no unusual thing in an- undertaking of Profit and Loss. I should like to say a this magnitude, until it be in fall working word on the subject of depreciation. Your order, to find that this or that is xvting, Directors would naturally have. wished or that this or that will improve the general had they had the means at their disposal working of the mull and be'conducive toa|to write off an amount for depreciation. larger and better outturn. This has At the same time they do not consider that been our experience but this—what may in view of the short space of time the seem to you a rather large expenditure—has Mill has been fully equipped and. in fall, not, Ican assure you, been incurred with- working order, the fact of their not having
Text read from the printed page and cleaned; old type leaves the occasional error.