The fourteenth ordinary general meeting of the Lanu Kung Mow Cotton Spinning and Weaving Ca., Ld., was held at No. 22 Kiangse Road on Tuesday, Jan-18. Mr. F. Anderson presided, and there were also present Messrs. E. C. Pearce, C. Michelau, J. M. Young and Chung Liang-yn '(Directors), Mr. Crawford D. Kerr (Secretary), Messrs. A. Murphine, R. H. Parker, H. J. Clark, Ping Er, F. W. Sutterle, W. C. Murray, J. H. Teesdale, R. H. Moorhead, P. Crighton and J. Spunt. The number of shares represented was 4,869.
The Secretary read thie notice convening the meeting.
The Chairman said:—The Report and Accounts have been in your hands for some time and with your permission we will take them as read. The Board regrets that the accounts are not more favourable, but as you are probably all aware last year was one of great and general depression of trade in China and cotton spinning was no exception to the general rule. This was partly owing to the high exchange and partly owing to bad trade. The general level of prices obtained for yarn during the year was a low one, whilst on the other hand owing to the poor cotton the average price of cotton was high. Owing to these circumstances it' was with difficulty during the greater part of the year that we could make two ends meet and get our own money back; indeed up to the end of September the result of our working showed a small debit balance. Towards the end of the year, however, trade improved somewhat and we were able to come out at the end of the year with 'a small balance on the right side—about Tle. 6,700. This balance would have been about double had it not been for the death of an old constituent of the mill who had dealt with us many years, but whose estate unfortunately proved to be insolvent on his death and the yarn which he bought had to be resold at o loss, and this materially, reduced the credit balance at the end of the year. The local business for yarn throughout the year was rather disappointing, indeed it has been disappointing for several years back—ever the Russo-Japanese War. Formerly the bulk of our yarn was sold locally for the manufacture of native goods which were exported to Manchoris, but for some time back trade in that market has been under a waiting patiently iti in the hope that the impediments which have been made will be removed and that trade will partially at least return to its former channels. Under the circumstances it has been necessary for us to push the sale of yarn in other markets where we came into direct competition with Indian and Japanese yarn. In that direct competition are unfavourably situated inasmuch as we have to pay heavy likin taxation op our raw material and in addition excise on our manufactured yarn, whereas Indian and American cotton is procurable by our competitors in India and Japan duty free. It is really astonishing how very short-sighted the authorities in China are to the advantages to be gained from fostering industrial development. The duty which pay honour yarn added to the excite on cotton is a very much heavier charge than to pay in their import duty. e again made representations on this subject to the Imperial Maritime Customs and also to the local authorities, but for all our appeals have been in vain and we can only hope that as time goes on the authorities will take a more enlightened view of the question and when they do so local industry will benefit by the change. We have not asked in these representations for entire freedom from taxation, but what we have asked, and what I think was a reasonable thing to ask,. was that the taxation—likin tax paid on the raw material should be taken into consideration in giving us a rebate for the taxation of yarn. If the authorities would meet us to that extent it would materially assist cotton spinning in China, Since the date of our last accounts the unissued shares of the mill have been placed on the market and subscribed for at par and the additional capital thereby obtained has materially strengthened the financial condition of the mill. If pass the report and accounts now in your hands the depreciation reco.u-mended therein will be, with what has been written off before, the full depreciation from the starting of the mill until the present time, and all this depreciation has been paid for out of earnings. During the year the reflooring of the cording-room has been completed; we have re-floored it with
Text read from the printed page and cleaned; old type leaves the occasional error.