journed from lust week, of shareholders in An extraordinary general meeting ad-the Yue Kang Glue' Factory Company, Limited, was held yesterday afternoon at the offices of the Company, 161, Peking Rond, The chair was occupied by Mr. J. R. Twentyman (Chairman), and there were revennt Messrs, 3, A. Clarke, C.F. Wong, M. David (Directors), W. A.C. Platt (Lewai Adviser), P. Brunut, J. A. Stewart, HI. Parrott (Shareholders), and ©. P. Fondey The Secretary having rend the notice convening the meeting, The Chairman swid—You have hourd the Resolution convening this meeting, and before any decision is made, it might be well to go into some explanation of the present state of the Company's affairs, so that you may be better able to judge ax to whether it is advisable to. wind the Company up finally, or for the purpose of reconstruction. 'The liabilities and collectable accounts of the Company at the present time are us follows: Turning to the Cent of working for the past three months we find a loss, which is due entirely to Inck of working' capital. From January Ist to March Slat but 2, piculs of bone have been used, making the daily consumption on an average of 32.50 piculs or but one half of the expacity of the plant, so that, with but a small increase in the cost of production 100 per cent more glue could hive been made. In going jute the cost, however, we found that, to work 65 piculs of bone per day for 6 months in the year, and adding the running ex—penses for the balance of the yarr, vi Salaries, insurance, interest and sundrier—it would leave a profit for the year of but slightly over 3 per cent, which' would not be worth while considering. It would be possible, however, to work the plant Profit for 6 months out of the year by an outlay of from 'Tls. 4,000 to Tls. 5,000, which would increase its capacity almost double, and the cost of production would be relatively lees. It would dispose of 111 piculs of bone per day, giving, as you can see, a profit of about' 16 per cent on a capital of Tls. 100,000. 'This estimate has been very carefully computed and the result of our experience and working the plant is an observative is based on six month working, On a 7 months' working (which is quite possible) this profit can be increased at least 3 per cent. The prospects for: market for the glue and by-products are most satisfactory. About 140 piculs of glue have been sold at prices ranging from Ils. 15 to Ts. 20, and the reason for larger sales not having been made is the reluctance of the buyers to meet the increased price of Tls. 18. Dealers will have to take our glue, as it is as good ax and much cheaper than the glue imported from home, and there is no doubt in the minds of your directors that our price can be secured if the Company is properly backed financially. In conclusion I may say that to put the concern on a proper financial basis it would be necessary to have about Tls. 35,000, said amount to be raised as you may suggest. With these figures before you gentlemen, you can decide which course would best be pursued.
The resolution is this, "that it has been proved to the satis tection of the meeting that the Company cannot by reason of its liabilities continue its business, and that it is advisable to wind up the same, and that accordingly the Company be wound up! voluntarily, and that the present Board be and are hereby appointed liquidators for the purpose of such winding up." If any gentleman has anything to say I should like him to state his views. If there i anything that the Directors, or managers, or secretary can say to show the position the Company is in we shall be very pleased to do so before putting this resolution to the meeting. I must state that I think really there is money in the business if it is worked properly and properly handled.
think we might make it" profitable concern if ench shareholder is prepared to provider certain amount of money. There may be some who would not pay, and in that ease they would lose their shares. iden is Ti. 25 per share, We shall be pierised to have your views, Inanswer to shareholder who asked if Tls. 25 per share would make capital, the chairman said yes, if every shareholder paid up. They still had some shares they could put on the market. Four hundred and twenty-one shares on the market xt their full value would of course give them quite alor of money. The present liabilities of the Company were Tis, 21,871.52 and then of course, against that they had the various articles of glue, and coal, and one thing or another amounting to Tis 15,861, which placed them Tis, 6,010.52 to the ba On the invitation of the Chairman, Mr. Stewart propose! the resolution rear by the Chairman, Mr. Brunat seconded it, and it was carried unanimously.
The Chairman said that if it was found necessary to carry on the business after it was wound up the directors, to whose discretion the matter would be left, would do their best for the shareholders, The directors held shares as they did, and would do the best they could to make the profitable one. If they id to call up the Tls. 25 he supposed they must do it, but they would not call up one cash more than was necessary. They would do what they could to select the best way in the matter.
This ended the business of the meeting.
Text read from the printed page and cleaned; old type leaves the occasional error.