ce., ID.
The shareholders of this Company held their annual meeting on Tuesday afternoon, at the Ofiices, No. 2, Yuenmingyen' Road. There were present:-—Sir Charles J. Dudgeon (Chairman), Messrs. J. M. Young, H.R. Kinnear, and C. W. Wrightson (Directors), Messrs. H. Snethlage, C. D. Kerr, P. F. Lavers, J. J. Chollot, W. A. Railton, G. H. Purcell, P. Macgregor Grant, Geo. Jamieson, F. Anderson, A. E. Allen, H. Bridges, Chun Bing-nim, H. P. large, W. D. Little, Sia Sze-nai, and W. A.C. Platt (representing 1,106 votes).
The first resolution was one appointing Mr. E. C. Ozorio secretary to the meeting.
The report and accounts, already published, were taken as read.
The Chairman, moving the adoption of them, said: The accounts, I am sure, will have been received by you with much satisfaction, and they fully bear out what was said by the Chairman at our last meeting as to the ability of the Company to profitably employ the increased capital sanctioned by. you in June 1902, With regard to this new issue of shares, the Chairman at the last meeting said that the question of premium on such issue would be dealt with in the accounts which are now before you; that premium, you will see, amounts to some Tis, 390,000 and, as stated in the Report, the proposal your Directors is to transfer the amount to the credit of Reserve, bringing the balance of that account, including the proposed transfer from Profit and Loss Account, to the substantial figure of Tls. 800,000.
With regard to the Working Account, I do not think that much comment is necessary. Salaries, you will have observed, show an increase over 1902 of some Tls. 3,000, an increase which you will readily understand, in view of the Company's extended operations—an extension which has resulted in our being able to show an increase of working profit, as compared with the previous year, of some Tls. 112,000.
In Profit and Loss Account is included a sum of Tls. 390,000 earned on the sale of the Astor House property, a sale the prudence of which you will no doubt endorse. On the question of sales of property, the Report informs you that we have also sold the Bund portion of the Jinkee Estate; we are sorry to part with so old a friend, and we did not do so without most careful consideration, such consideration bringing us to the conclusion that while we could only develop the property with moderate advantage to the Company, the profit derived from its sale would enable us to profitably develop our properties elsewhere.
You will notice that from the balance of directors propose a transfer of Tls. 150,000 to Reserve Fund Special Account, a fund, which as you are aware, is for the purpose of equalisation of dividends, bringing the balance of that account up to an amount of Tls. 167,000, or equal to something over 6 per cent on the Share Capital Seeing the present turmoil of affairs in the Far East, your Directors have no doubt that "you will endorse their policy of strengthening the Company's reserves in every possible way.
The cost of our properties, which you understand is actual cost plus interest undeveloped portions, stands practically, in the aggregate, the same as in the previous account; No. 1 Estate is written down in value through the Astor House sale, while No. 2 Estate—the Chwang Hong property—shows an increased cost of some Tls. 160,000 spent upon its development. In response to the suggestion made at our last meeting, there is published with the report a short statement of the Company's properties, which will enable shareholders to locate them.
Our Mortgages have increased by some 'Tls. 400,000 as compared with 1902, standing now at Tls. 1,821,000, which' sum T may state is amply covered.
The Chairman's invitation to shareholders to ask for any further information they desired was not accepted by any, and when Mr. J. M. Young seconded his motion, it was carried unanimously.
Sir Charles Dudgeon proposed, and Mr. Wrightson seconded, that the directors be authorised to pay final dividend for the year 1903 of six per cent on the
Text read from the printed page and cleaned; old type leaves the occasional error.