Deficit of Tis, 365,000
Shareholders Dec! to Sanction Tls. $00,000 Increase of Capital: Voluntary Liquidation to be Considered siv Edward Pearce presided at the annual general meeting of the Law Kung Mow Cotton Spinning Weaving Company, held on Wednesday. The other directors present were Mr. C. M. Bain, Mr.
Wells, Mr. K. "Otani and niv. Vu Pao-san, and the general wtendanee "represented 76,050
The notice convening the meet said the auditor's report having Ten read he Chairman said: Gentlemen, Yeport and accounts for 1924 Jaying been in your hands for some few days we will, with your Termission, adopt our usual pro-tenure and take them as read.
The cotton spinning industry Curing the last year' has been one of great disappointment and with great regret that your Board have such a poor report to lay before you to-day, The first six months of the year due to the high rice of cotton and the very une satisfactory rates obtained for your products caused your Board to view our losses covering that period with crave concern, your Directors being placed in such a position that they had to take into most careful consideration the advisability of continuing work ata loss or to close down the works until better times.
The question of expenses. to. be incurred through closing down was one into, The decision eventually auvrived at, more especially in view of our heavy overdraft with our was that we should lose ceasing work altogether than? to increase our fast ating stocks, Your mill, therefore. was closed down on July.
and continued so for the following four and a half months; dur-me thix period ax you are all aware hostilities broke out in our mediate neighbourhood, causing an almost complete cessation of all Wusiness, While we were not worke ing, your machinery: was well Iookafter and we were able to re nce considerably our overdraft. by the gradual liquida end loth stocks.
With the arrival the new season's cotton your Board decided to start day work only and the mill was accordingly restarted on November 17, from which date until the end of the! year we were just about able to! hol our own.
Al Reserves: Used up a very moderate figure compared to what they would cost to-day.
Your land on the Whashing Road, consisting of some 37 mow, cost you Tis, 140,901.91 and to-day under the new assessment is valued Ts. 5,500 per mow.
It requires only a turn in the constant ebbing tide of the local Jeotton spinning industry and addi: tional capital to which I shall refer when speaking to a subsequent resolution to place our mill on a sound basis.
T have referred for several years at these mee: ings to the Chinese id-time method of adulteration and watering of cotton. To-day, spite of all foreign protest to' this malpractice, the position is no better, in fact I would say it is worse as the evil is now permitting all districts, The matter is in the hands of the Chinese merchants and it is up to them to stamp out an evil which is fast ruining any prospects of the successful spinning of, China cotton, necessitating as_it does a continued importation of the Indian staple.
This concludes all I have to say, but before proposing the adoption fof the report and accounts I shall be pleased to answer to the best fof my ability any questions that you may like to ask.
There were no questions, and the fellowing resolutions were passed: Proposed by the chairman, seeondjed by Mr. Otani: "That the report and accounts as presented be Passed.
Proposed by: Mr. C. M. Bain, seconded by Mr. E, Lester Arnold That Mr. R. W. Wells and Mr. Vu Puo-san be re-elected directors of the compan Proposed by Mr. G. A. Turner, jwcconded by Mr. W. Cohen: That Messrs. Lowe, Bingham & Matthews re-elected the company's auditors for 192
Text read from the printed page and cleaned; old type leaves the occasional error.