The annual meeting of shareholders in this Company took place yesterday afternoon at the offices, Kiangse Road. There were present Mr. A. McLeod (Chairman), Messrs. J. Cooper, W. D. Little, and J. Scott (Directors), Messrs. A. G.'L, Renny, Young, F. B. Piteairn, and A. Wood (Secretary and Chief Engineer).
The Chairman—The Report and Accounts of the Company for the past year having boon in your hands for some days, I presume yon will have no objection to their being taken as read... Before, however, proposing a resolution asking you to pass then, it may be interesting to you to make a few remarks regarding the figures now submitted and the working of the Company for the year 1903. If you look at the Working Account yon will tind that the total income for the year has amounted to Tls. 357,489.06 as against Ts. 316,07. for 1902, showing an increase of Tls. 41,414.19, which I'trnst you will consider shows satisfactory progress in the ness of the Company. Of course this large increase in our revenue has not been earned without some proportionate addi tional expenditure, and on t':¢ debit side of the working accou: t the total amount under this heading is Tls. 119,953.39 as against last year Tls. 107,704.75, equal to: an increase of Tls. 12,248.61, the principal items showing an excess being wages Tls. 2,500, fuel Tls. 2,000, supplies Ts. 4,000. The increase in wages is partly due to the fuct that the cost of labour has steadily advanced and that an additional number of men are required to carry on the work over the extended area embraced in the Company's field of operations. The very considerably larger water supply pumped during the year fully accounts for the larger amount expended on fuel. In accordance with the vote of the shareholders at the last annual meeting a cheque for Tls. 3.000 was handed to the widow of the late Mr. Clifton in recoguition of the long and faithful services he had rendered to the Company.
The final result of the year's working is that there is a credit balance of Tls. 237,535.67 to pass to credit of Profit and Loss Account as against Tls. 208,370.09 in 1902, or an increase of Tls. 29,165.58, An amount of Tls. 20,000 has been placed to Depreciation Account increasing it to Tls. 130,000, and itis now proposed to deal with the available balance of Profit and Loss Account of Tls. 135,022.99 as follows To pay a final dividend of 37/6 per share at Ex. 27 fy........Ts. 102,653.46 To transfer to Reserve Fund (increasing it, to Tls. 140,000)... 25.00.00 And carry forward to New Account 5, 7,369.53
Tis, 135.022.99
In the Profit and Loss Account you will notice the final dividend of 1902 required Tls. 108,000, whereas to pay the same dividend in sterling, 32/6 per share, in the previous year it took only Tls. 95.186.14 or a difference of Tls. 12,815.86 less in consequence of the higher rate of exchange ruling. Interest account shows an increase for 1903 of Tls. 9,000, and in 1902 we placed is. 15,000 to Reserve Fundagainst Tis, 25,000 it is now proposed to transfer to that account, making it Tls. 140,000.
trust, gentlemen, you will agree with your -Directors in' thinking the above a Satisfactory result of the past year's operations.
As you are doubtless aware, there has been some ity for months past in placing locally 6 per cent debentures, and of the authorised issue of Tis.
100,000 of 1903, only Tls. 41,200 has been applied for, and we have therefore had to reply upon our bankers for temporary assistance in defraying the cost of extensions, and additions to our phut, filter beds, &c., during the past year, and I take this opportunity of thankfully acknowledging the facilities they have always been willing to give us. However, your directors consider it would be more satisfactory that our outlay on permanent works necessary to carry on the constantly growing operations of the Company should be defrayed from funds obtained rom shareholders, and they have under consideration the issue of additional capital for this propose. Full details will of course be laid before shareholders when the scheme is matured.
I do not think that there is much to remark upon in the balance sheet; it has been stated in the usual way and the item calling for special comment i that of Tls. 71,837.04, the amount exper ed on the extension of the Company's plant, mains &e., of which the cost of the new engine house, and powerful pumping plant, is the principal item; and I feel confident you will be pleased to learn that this new pumping engine is reported by our engineer-in-chief as being of the highest efficiency, reflecting great credit upon our consulting engineers Messrs. Taylor Sons and Santo Crimp of London and Messrs. Manlove, Alliott & Ca. Nottingham, the makers of the machinery.
As stated in the report a large new filter bed is in course of construction and is now nearing completion; it will be in operation before the hot season com-monees. considerable sum has been spent during the past year on the extensions of mains in the Avenue and North Szechuen Roads to the Rifle Butts, Hongkew, and also on the Central district for river purposes. Although the returns from the new districts are not yet remunerative, doubtless the result will be more satis. factory when these districts are more fully developed.
There is one more subject, no! -elerved toin the Annual Report, that I might mention, namely the arbitration case between the Municipal Council and the Company, that has recently been settled, with reference io the meaning of the words " Northern Settlements" in clause 7 of the original contract entered into with the Council. It has always been the desire of the directors to meet the views of, and work in harmony with, the Council, but as a mutual understanding could not be arrived at upon the above question, it was necessary to submit it to arbitration; and although the directors regret that the decision arrived at by the umpire (the arbitrators not being able to agree) was adverse to the company's contention, we consider it is a matter for satisfaction that the question at issue is now definitely settled. A new contract for the supply of water for municipal requirements will have soon to be entered into, but the directors do not anticipate any difficulty in framing one that will be mutually satisfactory to both parties. Before concluding" my remarks I wish on behalf of my colleagues on the board, and myself, to express our high appreciation of' the able manner in which our engineer-in-chief and the entire staff of the com-both indoor and outdoor, under control, have carried out their respective duties during the past year.
There wore no questions asked, and the following resolutions were put and carried Proposed by the Chairman, seconded by Mr. J. Cooper: That the report and accounts for the year 1903, us presented, be passed.
Proposed by the Chairman, seconded by Mr. W. 'D. Little: That a final dividend for the year of 37/6 por share, at exchange 2/7#, per tael, be paid to shareholders in China, Proposed by Mr. J. M. Young, seconded by Mr. A. GI, Renny: That Mr. W. D. Little be re-elected a Jdirector of the Company and that the appointment of Mr. J. L. Scott as a director be confirmed, Proposed by Mr. A. G. L. Renny, seconded by Mr. J. M. Young: That Messrs. W. H. Anderson and J. D. Thorburn be re-elected auditors of the Company.
Mr. J.-M. Young, on behalf of the sharehold s, wished to thank the Directors and the staff' for services which enabled them again to present 0 ox—|tremely satisfactory a report.
Very much of the success was due to the skill and ability of the staff, both outdoor and indoor, " That a bonus be paid to the staff, at the discreet' "1 of the Directors, to an amount not excecding 10% on their salaries.
Mr. Renny seconded and the motion was carried.
The Chairman returned thanks on behalf of the Directors and Mr. Wood expressed the gratitude of the staff.
The meeting then ended.
Text read from the printed page and cleaned; old type leaves the occasional error.