At the shove-stated time the Secretary of the Company reid the notice convening the meeting and the resolutions.
The resolutions having been read the Chairman addressed the shareholders as follows Gentlemen,—This Extraordinary General Meeting has been called in order that the General Managers might have an opportunity of again putting before you the "sition of the Company, and of ase rtainig from you what you consider would now be the best course to adopt in order to safeguard your own interests. The circular dated the 12th inst., which was posted.
each shareholder, would fully acquaint you with the present position of the Company. You are aware that from a variety of causes the cost of building and equipping the Mill very much exceeded the estimate made when the Company was flouted, but it is necessary you should understand that although the Capital was fixed at $1,200,000, it was never contemplated that such assum would suffice for the purposes mentioned. The idea which then prevailed was that the lmlance required for that and for working capital could be raised by debentures, which it was thought could be issued at a rate of interest below the prospective earning power of the Mill, and that thus there would be a distinct benefit to share holders. It was further anticipated that 3,000 shares not then issued could be placed at not below par, as and when the money was required, but unfortunately it has never been possible to realise either of these expectations, and the necessary fands to complete the Mill and to work it provided by the General Manazers, ced being ut one time $1,656,000. It was t tu be expected that with unskilled operatives we should xt, tive very commencement show profitable results, but unforeseen difficulties, such the outbreak wf plague (which was very severe last year in the nei arheod of the Mill), with is attendant restietions, considerably retarded their becom ing efficient as many of them eventually were. It is, however, as I already stated at the ordinary meeting, to the abnormally high prices ruling for cotton during the greater perid of our running with nat a Corresponding advance in the price of yarn, due in a measure to the recent troubles in North China, together with interest on the large sum borrowed, thnt the position in which the Company now finds itself must be chiefly attributed. The General Managers and Consulting Committee rcoguised that after paying interest upon the heavy debt thus contracted there was no likelihood of being able to give in addition satisfactory return upon a capital of $100,000 out of the profit which in norma times mizht reasonably be expected, and decided it was unadvisyble to continue working under existing conditions. The Mill was accordingly closed on the 3rd. As mentioned in the circular issued to shareholders, it is for sou to decide what has now to bedene. here are, it. seems to me, only two courses open to_you—liquidation, or reconstruction, Unless you force them to it, my firm do not wish io put the Company into liquidation, feeling that there is little or no likelihood. of the property realising the sum they have already advanced, wud that shareholders would in that event get nothing. The alternative of reconstruction is, however, only possible if you are prepared to reduce the face v-lue of the present shaies to $10 fully paid up in exchange scrip which you now hold are rely 10 do this, the Managers are of opinion, from carefully prepared estimates based upon the experience of past working, that under ordinary conditions the advantages of the change will allow of the Mill when in full work yielding satisfactory return upon the proposed new capitol of" $1,250,000, and holding this view are willing to accept for their rem ion percentage of the profits made, ius'ea: l of
Text read from the printed page and cleaned; old type leaves the occasional error.