FIRST ANSUAL MEETISC, The first annual general meeting of shareholders in S.C. Farnham, Boyd and Ca,, Limited, was held on Friday afternoon at the head offices of the Company, 14, Broadway, Hongkew. The chair was occupied "by Mr. J. Ro Poentyman ud there were present Messis, von Ricker, D. Cranston, J. Prentice, May (Directors), F2 Weir, E, W. Clements, M.H. Cook, J.M. Young, E. Jenner Hogg. GW. Noel, M, Weill, Hardoon, G. J. Shekury, G. IL' Potts, R.R. Endiontt, J. Valentine, A, E.P. Wickham, W. Mant, M. As 5 Toeg, W. Thompson, H.R. Boyd, Bari, F. BK. J. Rowknd, J, Moosa, J. Mi, Macray, De. Robinson, G. Ba Glass, and many others, represent 23,000 shares, Secretary (Me. J. 1 aving read the meeting, The Chairman siid—The report and accounts have been in your hands for some time, dud with your permission we will ko' them as rend. counts placed before you she petit of ten months' working, and it is gratifying to your Directors that we are able to plaice such ood results before you. We have followed our usual course, and opt the Docks good work st of the up-keep of extensive establishment like ours has usual been written off. As you are aw the present Company was forme acquire, take over "and continue 1h business of Dock Owners, Mechanical Enginevrs, Shipbuilders, Repairers Contiaetors, carried on by S.C. Farolan Ca, Lid., of Shanghai, including the business known as the Shan: hai upbuilding, and and had for its object the with Messrs. Bo; d & C: Owners, Engineers, Shipbuilders, ete., snd tobe known as S.C. Fanham, Ca, Ltd. The nominal capital of the Company to he Shanghai Ins. 5, in shares of 100 We "have now. arrived at a Gentlemen, which needs some ex: planation before proceeding—fur she As tit business was in such a fi condition, and we hed annexed the hai Engineering, Shipbuilding and Dock Ca, Ltd, and in view of an amalgamation with Messrs. Boyd & C). inereared capital was absolutely necessary, your Directors therefore decided it would be unfair to our shareholders to bring in another Company and allow them to participate in profits which had been accumulating for years, and meant the Dick bone and sinew of our position. However, negotiations were "pened out, and it must be admitted the Directors of the Shanghai Engineering, Shipbuilding, and Duck Eu. id their level best to make the best possible terms and get all they could for their shareholders, and of course we also had in view the enhanced position it would give us, and we certainly did not ye more than we could help. After wich careful thought avd anxiety it was decided to split up the stock, give our sharehuldets three shares for one, and allow the shareholders of the Shanghai Engineering, Shipbuilding and Dock Ca., Lid, one share for your three shares, and even then they were orerpaid, as the Company were practically insolvent and about their full capital in debt. 'The capital required amounted to the equivalent ut three shares for one, or Tls. 2,400,000 plus the origins] capital of the' Shavghai gineering, Shipbuilding aiid Dock Ca., Tls 750,000 made up as follows:—Six Hhousand ordinary shares of Taels 100 each, two hundred founders of Taels 100 each, or two for one, equals four hundred shares, and thirteen hundred ordinary shares, Gecond issue) of Taels 100 each, making total of seven thousand seven' bundyed shares, the combined total being Ts, 3,170,000. We had also to deal' with the amalgamation with Messrs, Boyd Ao. which required the further eon-sideration of two shares for one ordinary, amounting to 15,600 shares, and five mary shares fur one founder, equals one wid, making the number of shares nto the shareholders of Mess:
sixteen thousand six bundyed and the total of shares issued, forty-eight the sand three hundred shaves in the come hined Companies, When these arraus ments were made, we fully understood that nancy was requisite, but in your interest we decided not to issue more shares that time, fully realising, that hid done so, we should the idend on the in are now ing. a pro-125 per shure, "Phe total sum. will he utilised to pay off the debit balance at the Bank of the two Compinies which fre now combined with us, T trast this falls in with your views, it was simp question of yelting out of the difficulty financially and in the best possible way for the shareholders; and the di. idend you are now getting, for the ten months, proves the scheme 0 be a correct one, We therefore issuing 6,900 shutes, leaving shares unissued, so you see we Delow our authorixed capital, ye now to make reference to the nits of the Shanghai Engineerins, upbuilding and Dock Ca, Ltd, Tu i ints there is an item of value of material at Pontung and Shanghai, which appears to us ty bea huge mistake. Four months afer the stock had been taken, when wk over the price, the material could net w fund; and after taking off the initial figure we were still unable to find stock to the remaining amount, and this ameens represents the total deficit, also a debit balance ut the kef Mis, bills whose same as legi These bills are now all paid and with the extra issue of shares we will also De able to pay off the overdraft, acquired alnable property, and on my opinion the shareholders hive
the other hand we have had no excesses to pay such as goodwill, ete., and we have now the advantage of bein able 10 cope almost anything. It must also be arent to every business man here that it is an absolute necessity to keep on hand large stocks of material ready for any emergency. We are not like the builders at home who can purchase the rai material on the open market as they want it, and by ths means they have a decided advan= tage. To put ourselves on a similar fouth ing we must have a larser capital, or a debit balance at the Bunk, Our credit good, but it is pref-table having the "larger capital, as it places. the mpiny ina better financial posi tion and gives your Directors more freedom and independence. (Applause.)
Text read from the printed page and cleaned; old type leaves the occasional error.