The question of child labour has recently attracted public comment, and Tam glad to state that your mills have always been very careful in this respect, even to the di Pleasure of some of the workers, and the condition of your mills is quite above the standard. No children under 12 years of age are being enrolled. With regard to working hours, ete., they are well within the limit which appeared the recommendations of the Municipal Commission.
As to the depreciation on your assets, although it has been our fixed policy to write off as much ar possible, the unprecedented result of the year makes it unjustifiable to transfer the amount of depreciation either to Reserve Fund or to new account, knowing that the present book values are quite below the actual ones, I earnestly hope that a prosperous year will soon come round again and that we may be able to follow our past policy, writing off generously.
Every effort was given to minimise our production cost and most diligent supervision was given over expenses. The staff and workers save also been reduced in numbers.
Now turning to the question of finance, to our great regret, constant insufficiency of funds has placed the management under great difficulty, and sacrifices have had to bbe made on several occasions in disposing of our stocks.
Although your Directors and Agents have done and will do the lutmgst in their power in obtaining financial. accommodation elsewhere fon reasonable terms, I am afraid, that we might find ourselves.compelled to seek means other than Toans.
Certain shareholders have suggested that in floating debentures for the purpose of redemption of the loans, it would save the Com pany from large outlay of interest, te which your Directors are also ving careful consideration.
Gentlemen, this is all T have to say, but before placing the resolution before you, if any one has any questions to ask, I shall be very pleased to answer them to the best of my ability Exorbitant Interest, Mr. L. E. Canning said that as one who wrote in suggesting 9 debenture issue, he was bound to say that when he took up the report week ago and realized that the company had paid over Tis, 220, 000 interest on a loan which he took to be a fluctuation loan of roughly Tls. 2,700,000, he came to the conclusion that the company was paying rather an exorbitant rate of interest, Having come to that conclusion, he called to interview the manager and chairman and was informed that the com pany had been paying as much as 18 per cent. interest. In a place like Shanghai, hho thought that was} diy rather going too auch, to say the least. In his letter he suggested that if the company had assets amounting to Tls. 10,000,000 the company could quite easily float a debenture issue of Tls, 3,000,000, possibly at 83 per cent.; would be better than' the they had been paying. He hoped that the Board would seriously consider a debenture intue, to cover at any rate the loan now outstanding, The Chairman replied that the directors were going into the matter were trading absolutely at-a loss. It was all very well for the chait-man to say the directors hoped things would improve, but the statement meant nothing and was of no value whatever, He would tell" them. it was not the cotton crop that was going to wipe out their loss. They had got to come nearer home, put their own house in order and cut down expenses Then probably they might come out with a balance on the right side. But as long as they went on as they had been doing during the last three years, their debit balance would increase every year, The Chairman—Every effort has been "made to economise in the Proposal to Refuse Report, Mr. Robertson then said that if he had a seconder he would propose an amendment that the report and accounts be referred back to the directors until they could give shareholders one that was more acceptable, Mr. D. Haas said he agreed with what Mr, Robertson had. said, The following resolutions. wale then ear Proposed by the Chairman, seconded by Mr. Prentice: That the report, balance' sheet and. general inventory of assets and profit, and loss account for the fourth financial year ended June 20, be adopted and passed, Proposed by the Chairman, seconded by Mr. Prentice: That the rectors' suggestion in dealing with the balance at debit of profit and loss account be sanctioned ands passed, Proposed by the chairman, seconded by Br. Prentice: That the number of directors be increased from six to seven, and that Mr, Kenzo Gone be elected as a director of the company, Proposed H, Kay, second-udo: That' Messrs, 'T. Takahashi lected as auditors of the comin place of those retiring.
Superlatively Autocratic,
Text read from the printed page and cleaned; old type leaves the occasional error.