Mr. G. Grayrigge presided at the ninth annual meeting of the Kapala Islands Estates, Ld. (1912), held on Monday at the offices of the secretaries and general managers, No. 2 Canton Road. Among those present were Mr. R. N. Truman and Mr. C. R. Burkill (directors) and Mr. E. A. Prince, representing the general managers. The. attendance represented 117,785 shares.
The secretary (Mr. Prince) having read the notice convening the meeting and the auditors' report, the Chairman said in part:
The depressed condition of the. rubber market during the past year accentuated to the point of hopelessness the financial position of this company. Despite the most rigid economy, the Dutch company working account shows a further loss of Tls. 23,396.39, which added to the loss incurred previously makes a total deficit of Tls. 52,390.30 whilst the Shanghai company's adverse balance has been increased by Ts. 24,233.58, this sum representing Shanghai office ex—|penses, directors' and auditors' fees, and debenture interest, bringing up the amount standing to the debit of profit and loss account to Us. 103,795.79.
The total amount of debentures ssued is Ts, 164,500.
The property is reported to be. perfectly clean and is remarkably yee from disease. The labour cree has been reduced to the lowest point possible. The cost of production was reduced from 26,22d. in 1920, which high figure, as you know, wes due to the influenza epidemic decimating the labour force, to 16.16d. in 1921, a huge reduction relatively, but as the average nett selling price for all grades was only 7.66d. the property" s still far from being a satisfactory proposition these days. The~ estimate of output for 1922 is given as 140,000 Ub. to cost 41.17 cents Straits currency per Ib. f.o.b. If this estimate is lived up to and granted the company was not overwhelmed with a- debenture. issue, carrying heavy interest, a reagonable rise in the selling price might make the property worth perserving with, but as matters now stand this board sees no prospect of the company ever getting on to its legs again, and as going on only means increasing the indebtedness, in all fairness to the gentleman who has been financing the company, this board has decided to bring matters to a head, which will be done-at the extraordinary general meeting convened for this afternoon, 7 Gentlemen, despite the present unsatisfactory financial position, I feel that we should nevertheless express our thanks to the manager and Straits agents who have done their best under very trying cir-
Text read from the printed page and cleaned; old type leaves the occasional error.