©.R, Burkill, F. C. Hoffer, Yuen Ko and E, 0. Arbuthnot (Secreta:
The Secretary read the notice conand balance sheet having been before you for consideration, I will, with your permission, take them as read, meroly remarking that the accounts are stated in the ud most concise manner and you easily to judge as to what yousctially owo, The company's premises in the Hankow Road here has as you are aware, been sold, the purohsso money when received wil show, after the payment of the mortgago'as specified in the scoounts, a cousideradle cash balance in hand. It is with extreme regret that your directors have today this year's report and accounts before you, but on behalf of myself and ce-directors I would assure you that, although tending to the ultimate benefit of your business the past year has from various causes been Work branch, although good worrying one. As regards your Acid report, Il as it possibly might have bean expected 10 do. Many details working of this branch would be ditisalt t expleia te you fu 8 condensed manner. The main explanstion, however, is that the applisnoes at the works are more or less antiquated, and have been mush stressed by your gradually increasing business. Coal has greatly advanced in price as you know, and wages are also higher. The recent improvements and alterations in production of acids and their consequent cheaper cost, have rendered it hard to keep abreast of the times and your directors have before them for consideration what are the best steps to be taken, It would to-day be premature for me, to enter into details but it would appear that the solution of the matter direction of erecting new and absolutely up-to-date acid works, ing the plant now exis\ing. Estimates for new works are in hand and plans are on the way from home, and should be here in less than ® month, Your land at the acid works has now become ion of the profit shown rather than the erection of new works Jon such a valuable ite. I do think, and I feel assured you will agree with me, that to go deeper into this question today would be unwise and against your own interests. At the same time your directors are persuaded that your acid businees is good to-day and is capable of being made much better with new works and up-to-date appliances. With reference to the "Shunpao" newspaper, here again difficulties have nen, but they have to large extent been overcome, and your directors feel convinced that bettor times are ahead for native newspapers. The receipts from sales of the newspaper and advertisements were larger than during the previous year, but you most bear in mind that th its wore tom great extent in native cash money, and when you consider how many cash go to the dollar to-day, you will not be at any lous to understand why the result as expressed in taels on your company's accounts is not satisfactory. This matter, boaring as heavily as it did on all native newspapers, has boon provided for by the raising of the aching prices for each. One other matter with regard to native news ing before in not your it alone, but a matter which concerns the diffusion of knowledge amongst the Chines, and is point on which Sir Robert' Hart has on many occasions laid considerable stress. It in this, that notwithstending the official views, above quoted, of Iste restrictions, ' entailing much additional work and considerable loss of time and expenditure of money to all concerned in native newspapers, have been insisted upon by both the Customs and Postal authorities. Several dis pat ches signed by the proprietors of the leading newspapers, have been forward-the authorities and replies have been received. As a result certain reductions on first demands have been granted, but so far the claim of free and unhampered right of travel for newspapers, as existing in all foreiga countries, has been denied to the nati Press in Chins. I do not know that you would care for me to occupy more of your time to-day by explanations as to other details of the conduct of your business, but if you have any questions which you deem it expedient for m reply to I shall be prepared to snow them.
Mr. F. ©. Hoffor asked for an planation of the fact that, although accounts were dated the Zist of Marob,
Text read from the printed page and cleaned; old type leaves the occasional error.