To the Editor of the Nortu-Caixa Darcy News, Sin,—Althongh newcomer to the Scttlewent and not having apy money invested in rubber, I have taken considerable intereat in the present position of the local rather companies, and particala: ly io the articles and corres pondence in your columns. ion made by Mr. E. 8. are holders, but the whole matt ted, and "0 many conflicting interests are involved that there seems no likelihood of the scheme being through, spart from the fact uch @ re-constructed company might become too unwieldly for active and progressive management.
Whatever solation is to be found is in the bands of the shareholders themselves; and each company should begin to work out its own salvation. Ip England or America shareholders are scattered about the country snd fied it alniust impossible to attend meetings and take acti terest in their compan wwequence being that director often the only people who derive avy benefit. In other words the company is practically roo by the directors and the shareholders have no vice, Now this should not be the case in Shanghsi as the large ty of the eharebolders are on the postes under their articles of association or ander the Hongkong Ordinances, It is not always desirable to wait antu they have the opportunity of taking action at ap annual general meeting.
First, the shareholders should take atisly themselves that economy is used consistent with the of Companies which suspected to have been promoted on incorrect prospectnees or inflated valustions, they might form themselves into a Committee with a view to the possible recovery of a portion of the profits paid to Vendors or Promotors. In such cases it is impossible to generalize and each one runs be dealt with on its merits. The third step is to consider suitable amalgamations and these can only be brought about more or les naturally by each Company entering into negotiations with others, preferably grouping those which are situated in the came district with a view to the taving of working expenses, 299
Aw an instance of the frst point above mentioned, I am informed that the Secretarial fees vary from about 40 (0 400 or more Taels a month, notwithstanding that the work involved is much the same in each Compeny. It mas that the latter sum is far too high and Tls. 100 month should be fair average. As a means-of cating down expenses and a preliminary step towards amalgamation it should be beneficial to combine several Companies ander one Secretariat, Whilst suggest jing thet the Shareholders must themselves go into these detai'x it is not intention to attack or cast reflexions upon the Directors of Iocel Comranies, but it cannot be denied that in many cases such Directors have reaped promotion profite and are still drawing fated Directors' foes and beary-Mavagerial and Secretarial charges fixed on the banis of assamed profite which are of now likely to be realized. It is an open question whether such Divestors fully realized their responsibilities when allowing their names to be appended to the Prospeotures but, granted that they id 80 la good faith, they may scarcely feel called upon to make sacrifices 80 long as Shareholders are quiescent lacking laterest and organization.
As regards the market value of the shares, builders and jovestors mast not rely apon farther valuations or reports to fx values with any degree of certainty bat patiently await the resale of trading, in the meantime taking all necessary precautions to ensure success.
There should be no insurmountable Aifficolty in carrying the suggestions into practice, if some member of each Company requiring investigation would come forward and organise " special meeting in conjazction with the Direc-tore, who should welcome every inquiry and' investigation, An even better coarse would be if some reliable, independent and experienced gentleman would come forward and organize the there is surely someone willing and able (0 undertake the work who would receive the confidence of a lstge mejarity of the shareholders. The question is, who is the man?
Tam, ete., Shanghai, October 25.
The above letter was written before the appearance of Mr.
8. Little's open letter to sharehsIders.
Text read from the printed page and cleaned; old type leaves the occasional error.