The annual general meeting of shareholders in the Shanghai Gas Company Limited was held at No. 10 Peking Road on Wednesday afternoon. There were present Messrs. E, Jenner Hogg (Chairman), J. M. Young, F. Ayscough and E, E. Clark, directors; A. Fleet, H. D. Hatchison, T. F. Lavers, W. Armstrong, A. Hunt, H. A.J. Macray, H. J. Clark, E. H. Danning, F. 'W. Potter, D..A. Darling, K. Mackenzie, Geo. R. Wingrove (Secretary) and H. King Hiller (engineer). The total number of shares represented was 3058, and 677 votes.
There Mr. Wingrove be sppoiatel Secretary jworam present and I propose that Mike meeting.
Mr. Win grove read the notice convening the meeting.
The Chairman—Gentlemen: Before proceeding with the business of the meeting I must refer to the sad occurrencies that have befallen come who were connected with the Company. You miss to-day the presence of Mr. John Cooper, who served for so many years on this Board and worked for the prosperity of the Company. Tam sure you will join your sympathy with that of he Directors in mourning his loss. It Pevith much regret that T have to re HE, ber alt: and S. J. & C. Gazette, cord the loss of our foreman\fitter, Mr. John Chatham. He had done excellent. service for the Company for many years and the consequences that followed his death have made it' an event of peculiar sadness. I presume that we may take the Report and Accounts as read, but I will ask you to correct s printer's error that occurs in the auditor's certificate, where the year 1908 ix printed instead of 1907 as is, of course, intended.
In considering the results to shareholders for the year 1907 there are certain points ta be borne in mind. Ie! has been a year of almost unprecedented depression in trade, which has affected all classes, and native shopkeepers, amongst whom we look for annually increasing business, have been less inclined than usual to incur any expense in changing their method of lighting. Then there has been heavy outlay. Jconnexion with our works—a lar portion of which being provision in.|advance for future requirements, has not yet brought in its proportionate return, and this amount may be taken at a value of some Tls. 280,000. And again, we have to give a return op the whole new Capital of Tis 1,200,000, instead of on Tls. 800,000—at which it stood in the previous year up to November 1. Notwithstanding these facts ti rt and Accounts are very satisfactory and, although we pass by the bonus, we offer you a return of fifteen per cent on the increased capital. The business of the Company shows steady progress, as is seen in the fact that our sales of gas hav increased 9.59 per cent over 1906, itself a record year. TTnfortunately our residuals show a falling off, as also does the fitting account, but we shall doubtless see a revival in these departments by-and-bye, Bot in spite of this, you will notice that working account gives our total receipts at Tls.643,571.43 against Tls. 621, 900. 69. On the other side of the account the' total expenditure is Ils, 402,004.37 against Tls. 406,384.27 which is a slight decrease, and sithongh we used come 4,000 tons more carbonizing material, the totacost has Been less than last year, Purifying also cost less than last year, due to the economical working of our new purifying plant—and other new plant has aided in more economic working in our manufacture, the cost of which is merged with other items under the heading "Manufacture of as". Wages are heavier in consequence of increased business.
Profit and "Loss account is debited as usual with the previous year's depreciation, with dividends, interest qn debentures ete., and, I am sorry to say. with more bad debts than we are accustomed to. They are a sign of the bad times. I regret also that wa have hed a serious case of irregularity in connexion with one of the employees, which is now being dealt with. On the other side will be found a credit of interest, being the balance after paying interest on Bank overdraft and orediting interest on plant and buildings in course of erection, fittings stocks etc., and there is also a credit from dollar 611 exchange. Renewals and Depreciatio account still stands at Tls. 100,000.
With regard te the Balance Sheet,—The additions to Land and Buildings comprise the purchase of mow 3 of land at a cost of Tls. 6,820.50, and on the new retort house Tls. 47,318.87 has been spent. Balance of cost of new offices and a small sam on the Hongkew property completes the total. The expenditare on manufacturing plant is large, but it embraces considerable provision for the future. The new retort plant cost Tls. 141,565.31, new purifiers, Tls. 77,180.23, mains and connexions in the works and a few minor items making ap the total, In addition to these outlays, you will find the sum of Tls. 163,487.13 for works in construction of which full details are given in the Balance Sheet, and a farther approximate sum of Tis, 100,000 is req: to complete these. Of our distributing outlay of Tle, 127,155.45 the chief outlay is Tle. 84,677.76 for mains and services, New meters, fittings on loan, road repairs etc. making up the total, may mention that during the year we have laid no less than twelve and three quarter miles of new mains, which is our record figure, and our total mileage in now some seventy-six miles, The other side of the balance sheet needs no explanation, I think, and, ax stated in the report, the balance of forty-six shares has been sold this year, bringing our paid-paid: up capital up' to Tls. 1,200,000. For ordinary requirements our extensions should suffice for some five years to come, but in concern like ours, there are occasions when we must grasp business promptly, or lose it entirely, as in the case of extensive installations and so forth, and as we only undertake such work where it appears profitable, we must be prepared for expenditure of such a natare in the event of its being required. With this in view, it is not impossible that we should contemplate the issue of further debentures and whenever that is done, we shall probably find it expedient to re-arrange the whole of. our debenture issues, It may be interesting to you that I should draw your attention to the importance that our Company has attained. You have probably noticed in the engineer's report, that our make reached nearly 495,500,000 cubic feet last year, which is about 47,500,000 cubic feet increase over 1906, and of all British gas undertakings in India, the colonies and all British possessions abroad, only four companies, viz. those in Sydney, Melbourne, Montreal and Toronto, make " larger quantity of gas than the Shanghai Gas Company, Limited, and the Sydney Company supplies no less than 10,535 public gas Iamps, all incandescent. Our consumers fare supplied, too, at a very favourable rate, especially when we consider that coal and material for manufacture have to be imported, say the equivalent of about 3s. 4d. per 1,000 cubic feet.
In Sydney the charge is 4s, Melbourne the charge is 5s., Montreal the charge is 5s. and Toronto the is 3s. 1}d.; and I shall be glad when we
Text read from the printed page and cleaned; old type leaves the occasional error.