Hotel, an extraordinary meeting was held of shareholders in the Central Stores, invited, The chair was occupied by Mr. E. Thiby. and J. a. Stewart (Directors), and we, who was supported by Messrs. H. J.
W.ASC. Platt (Legal Adviser). There was a large attendance In reply to the Chairman, Mr. Stewart (Secretary) suid that he hud received a letter from the Directors of the Company tendering their resignations.
At the invitation of the Chairman, Mr. Limby rose to give an explanation of the reasons which actuated the Directors in resigning. He stated that at the annual meetings of the Company which had taken place since the Directors had been upon the Board, not one of the sharehe!ders: had ever done anything to encourage the efforts made on the shareholders' behalf; had not sympathised with them in their troubles and ditticult es, nor damned them with faint praise." "On the contrary, at the x1 nual meeting in 1900, the frst meeting since the establishment of the Company at which they were able to show that they could pay dividend and that the business was on a sound basis, some of the shareholders! issued an express in which the accounts, which they (the Directors) had endea-youred to lick into shape, and for which they were not responsible before they joined the Board and the losses of which they had to pay before profit could be shown, were held up to ridicule. Instead of assisting them i their efforts, these shareholders tried to throw obstacles in their way by means of the native servants. In very few companies was it necessary for the Directors to meet every week, but until a short time ago they found it absolutely necessary to do so, the many troubles and vexations attendant upon running a hotel calling for constant attention, and they were anxious to firmly establish the financial position of the company. Proceeding, Mr. Limby said that. to the 28th February, 1898, the Profit and Loss Account showed a debit of $18,152.87, the company having lost in 1896-97 $12,100.69 and_ in "1897-98 $6,052.18. In July, 1898, Mr. Page and himself joined the Board, and in 1898-9) there was a further loss in consequence of the imperative necessity of closing the Stores, which were a drag on the Company and caused a loss of $6,731.07. This was remedied by the reduction of the share value from £20 to $15, and the Company was relieved of its incubus and placed in a healthy, dividend-paying position. They also returned £3.70 per share from surplus funds, thus reducing shares to $12, on which was lost from original capital $4.3) per share. In the balance sheet the end of 1899 a first profit was shown of $4,541.92, on which a dividend was paid of five per cent for the first time, and for this account they had the satisfaction of reading the express to which reference was made. To the end of last year there was 4 profit of $11,200 and a dividend of fifteen per cent was paid. For the Srst ix months of the present year a net profit was made of nearly $10,000, and an interim dividend paid of $1 per share. There was also a deposit of $20,000 at the Hongko"g and Shanghai Bank. These figures, he thought, told their own tale. When the Directors piloted the derelict over the stormy sea into the harbour to avoid total loss im the course she was then pursuing, they did so with the intention of sticking to their purpose until the end was accomplished; and that end being accomplished, they were quite ready to zive place to others in whom doubtless the shareholders would place more trust. In conclusion, Wr. Limby spoke of a scheme which the Directs hud been completing for the permanent improvement of the hotel, but which of course they had now The Chairman sad that he agreed with remarks mide by Mr. Limby, which ved a true statement ut the facts of and went un to speak of a scheme in existence whereby it was intended that the interests of the Company were to pass into the hands of a firm of stokers. The Beard which had pulled their company out of prospective ruin would have been only tou glad to lay before them the details of such a scheme, but there was the determined, senseless' opposition to their methods, the insults, and the proposition to remove the Directors frum the Bourd, and they (the shareholders) would only ye themselves to thank if they fell into. the havels of those who had personal ends to serve rather than the interests of the Company as a whole. (Applause.) The speaker then went on to tele the complaints which had been made of the alterations carried out in the buffet of the hotel, When the buffet was made it was intended for the use of the shareholders and the guests of the hotel and cards tu that effect were affixed to the walls. Some of the shareholders took no notice of these curds, and were in the habit of taking in to the buffet all sorts and conditions of people, 1 them selves in such a in; iS Was not credit able to the hotel. In feet, the ungentle manly conduct in the buffet was so bad that it was not either safe or pleasant for ladies to go i.to the hotel. The only thing left for the Direct rs to do was to close the buffet and reopen it with an entrance from Nanking Road, and provide a evffee room for the use of shareholders and guests, and they contended that it was in the best interests of the hotel. Those shareholders who wished to remote them from the Board of Directors saw fit to put their wishes in the form of a resolution at the instigation of a former managing director of the Company. When the Directors took action with regard to the buffet they were only doing that which was for the protection of the interests of the shareholders as a whole. It should have been done sooner, and if the other Directors had had their way it would have been done svaner, and he did not think any board of directors would see fit to open itagiin. The Directors had resigned, and it was now for the shareholders to decide what action should be taken witly [regard to the business which he and his colleagues had tried faithfully to manage for the last three years.
Mr. W. W. Clifford proposed that the resignation of the Directors should be accepted. He said that Mr. Limby was going out of his way when he said that the shareholders had treated him discourteously. He was present at the meetings of the company when votes of thanks were passed to the Directors, and the remark was most uncalled for. Personal remarks had been introduced upon various subjects, and shareholders had been abused for frequent-the buffet, in apparent forgetfulness of the fact that sume of them were the original founders of the hotel. He would like Mr.
Text read from the printed page and cleaned; old type leaves the occasional error.