The fiftieth annual general meet. Sng of shareholders in the Shanghai Waterworks Ca., Ltd., was held in the head office, 69° Kiangse Road, fon March 28, Mr. H. Martin Little (Chairman) presided, supported by. Messrs. A. W. Burkill, A. J. Welch, L. E. Canning, and 'S. Fessenden (directors), C. D. Pearson (engineer-in-chief and manager), and W. R. Walter (secretary). "There were }254,697 votes represented.
'The notice convening the meeting, Jand the auditors' report having been read, the Chairman si Before proceeding with the. business for which this meeting is jealled, 1 would express the deep re-Jeret with which we record the death fof Mr. A. P. Wood, who was for ]s0 many years connected with this company as engineer-in-chief subsequently as engineer-in-chief Jand secretary. The late Mr. Wood's service covered a period of as long Jas 36 years; during which he saw ithe growth of the company from the time he took control in its infancy jin 1886 to 1921, when he handed over what had become a large and important undertaking. Our sympathy goes out to Mrs. Wood, to Miss Wood, and to Mr. E. A. P. Wood in their bereavement.
The report and accounts for the year ended December 31, 1929, have been in your hands for some time:
Jand, with your permission, I will take them as read. Water Revenue Jon intro-agreement consumers',|ccount is Tls. 2,434,725.93, as compared with Tls. 2,347,355.29, satisfactory increase," taking into account the facts, firstly, that 1928 contained the revenue for an interjealary moon, the last, with the adoption of the Gregorian calendar, that we shal secondly, that a reduction was made in the rates for large: quantities of water lby meter; and, thirdly, has been an abnormal amount of rebuilding. Expenditure has risen from Tls. 926,600.65 to Tis 1,077-|W: 365.24 and this increase may be attributed in a large measure to the adoption of shorter labour shifts and to the increased owing to low ex-
148,000,000 against 1928, an increase of $18,000,900 gallons.
The nett profit for the year is Tis, 925,461.38 and the interim dividend, which we increased from 24 per cent, to 82 per cent, at exchange 2s. did. per tael, amounted to Ts, 391,161.99. Under our agreement with the Council, exchange differences, that is to say, the differences atween the tael equivalents of the dividends for the year at the rates of exchange at which they are paid and the tael equivalents of such divid-fends at the tariff exchange, that is to say, the rate of exchange agreed upon for the purpose of drawing up estimates of expenditure upon which the tariff of charges is based, Jare debited or credited, as the case may be, to, ogualisation of dividends Jaccount. This year we debit that account with Tls. 102,487.48 and the amount available for distribution is Tls. 606,766.85. We recommend payment of final dividends of 54 per cent, on "A" shares, 3t per cent. on "B" shares and 8/12 of 41 per cent. on the amount paid April 80, 1929, on "G" shares, which, fat exchange is. 111d, absorbs Tls. 529,074.86, and the transfer of Tls. 167,601.99 to equalization of divid-fends account.
We are thus able to pay the maximum dividends for the year and to increase equalization of dividends account to Tls. 379,884.83. I may, perhaps, mention that the maximum dividends for the current year will amount to £100,020, and, so far as can be foreseen, we shall be able to pay these maximum dividends, even if the present low rates of lexchangé persist, and next year the tariff of charges for water is sub-Ject to revision.
'On extra-agreement and shipping! consumers' account, the nett profit has risen from Tls. 114,518.79
Tls. 121,605.64, a considerable inferease in the profit from the supply, to shipping having more than, counter-balanced a decrease in the profit from the supply to extra-agreement consumers. Water supplied to shipping showed an increase of 69,000 tons and it is of interest to record that 12,000 tons were \shipped to Hongkong during the shortage there last summer.
The amount available for distribu-eludes the carry-over from last year of Tls. 3,220.53 and we recommend payment of dividends of 5s. 2 per "A" share and 3. Id. per share and the carry forward of Tls. 3,713,98. The decrease in the sterling amount per share as compared with last year is entirely due to the low exchange; the silver equivalent of the dividends is higher.
Certain changes have been made in the balance sheet to comply wi companies Act, 1929. Fixed shares issued free to the Shanghai Municipal Council in 1905 and: ex-
Jpenses in connection with issues share capital are stated. separately, Provision will be made in the next tariff estimates for writing off the expenses in connection with issues fof share capital and the underwrite jing commission, There is a decrease in the value of our real estate as compared with last year and a corresponding decrease in the amount Jof the special land reserve, This is due to the registration and the inclusion at its Municipal asses ment valuation of some land which last year appeared as unregistered. This will doubtless correct itself} when the next revision in the assessment of land value 'The maximum daily consumption, has risen to nearly 51,000,000 gallons and this, or, more exactly, the maximuth hourly consumption, is, the determining factor of our' expenditure on new works, ete. Details fof the more important works completed and commenced are set forth in the summary of the enginecr-in-chief and mansger's report. We have on order in England from Messrs. Worthington-Simpson, Ltd., Newark, a Diesel driven main pomp No, 12 with a capacity of 600,000 gallons per hour, an electrically driven main pump No. 13 with a similar capacity, the motor from the British-Thomson-Houston Ca., Ltd. Rugby, and the pump from Messrs. Worthington-Simpson, Ltd, and two Diesel driven pumping sets, river pumps Nos. 20/21 from Messrs, Allet. Sons & Cou, Ltd., bedford, each with a capacity of 560,000 gallons per hour. Work has also been commenced on a new battery, of rapid filters, with an output of one million gallons per hour, these filters being to our own designs and, similar to those constructed in 1925, which have been so successful.
'The 250,000 "C" shares of £1 each, entitled to a maximum dividend of 8 per cent. per annum and not cipating in any extra-dividend on extra-agreement and shipping consumers' account, offered for issue! jeany last year were taken up and the paid-up capital is now £1,163,225, The requisite Order-in-Council having been made, we are now entitled to keep a branch register of members resident in China at the head office at Shanghai and this will facilitate dealings in our, shares on the local market, The new tariff of charges referred to last your was accepted by the, Shanghai Municipal Council and put into force. The rates are substanti. ally the same as those in the preceding tariff, but we reduced the charges for large quantities of water, that is to say, over 700,000 gallons per month, from January 1, 1929, At the request of the Municipal Council and with the view of inducing all those who take their supply from private well borings to have a stand-by supply from us, we have recently put into effect consid-crably reduced monthly rates for tand-by supplies, but, when water' is used from a' stand-by supply, double the ordinary meter rates will charged. The agreement made with the Municipal Council dated Febroary 28 this year, and publish-recently in the Municipal Gazette, provides further that, if a consumer, who has obtained water from private well boring or source other} than our mains, without having] previously applied to us for a standby supply, asks us for a supply of water, he shall enter into a contract to take the whole of his supply from us for not less than two years. He may, however, resume the use of] the private well boring after one year if he then enter into a contract, with us for a stand-by supply for} two years. Persons at present oh-taining water from private well borings have until the end of this, month to apply for a stand-by supply, fon the ordinary terms. Furthermore, a consumer who takes " supply, from' us for a private fire hydrant system only is required to pay an. increased annual fee.
Under the 1928 agreement, we have the power to refuse a supply: to a consumer who atthe same time obtains water from: a private well boring for like purposes. This power is confirmed in the new agreement, but we have agreed that, if a consumer was obtaining water from private well boring as well as from jus, prior to March, 1928, continu. ance of the supplies from both sources. shall be allowed, in return for an extra monthly charge.
The high standard of water supplied to our consumers has been maintained, the average B-coll re-[duction having been 99.9904 per cent. of the presence Feller, th waterworks engineer, at the World's Engineering Congress at Tokyo to invite him to Shanghai to inspect our plant and I am glad to say his report was extremely gratifying. We have also had visits from other leading engineers who were attending this Congress The political situation curing the year under review has been quiet, but the views T expressed last year on the necessity of the local Defence till hold. Our Chinese em-at Yangtszepoo left work period of 25 days last summer, owing to outside influence, As I stated last year, our Chinese staff Jundoubtedly appreciate the fair treatment they receive and especially the advantages in the way of }good quarters, playground, and school, and, not long before they ceased work, they had actually, through their senior foremen, writ. ten expressing this appreciation. 1 jam glad to say the men returned work under the existed prior to hon we, have had no complaints We were able to maintain the full supply, thanks to the aid of volunteer and Russian labour, and especially to the strenuous efforts of our whole foreign staff under most, trying climatic conditions, As T have stated on previous occasions, our future is very closely linked with that of the International Settlement and we have therefore availed ourselves of the invitation recently issued to put our position before the Hon. Mr. Justice Feetham, who is at present in Shanghai for the purpose of advising the Municipal Council, We have, in addition, considerable interests oute___ side the International Settlement and the question of the preservation of these interests in occupying the attention of your directors. We sympathise with the aspirations of the Chinese and our relations with the officials both of the Municipality fof Greater Shanghai and of the Chapei Electricity and Waterworks [Company are of the friendliest, but we have supplied water to a great number of consumers outside the Settlement from a time when there was no other undertaking capable of supplying water, entirely openly and with the cognizance of the authorities, and anything that may be Jdone now that affects the business we have established in thes outs Hfestly be inequitable Last year we lost from the Board the services of Mr. L. J. Cubitt on his retirement from Shanghai. Mr. Cubitt had been a director since 1906 and was Chairman from 1912 to 1923. I am pleased to say that Mr. Cubitt has accepted the invitation of the London Committee to join. them.
This year we celebrate our jubilee, {for it was in 1880 that the company was incorporated, with the object inter alia, of carrying on "the business of a Waterworks Company in and near Shanghai in all its branches." Gentlemen, I think we back with pride on what we have accomplished.
Im conclusion, our thanks are again due to the whole staff for the very efficient way in which their have been performed. I wish in to draw attention to the debt we all owe to the staff and those gentlemen who volunteered assistance during the strike in August and gave unstintingly of their b Jduring the most trying time of the year in order to keep up an efficient supply of water.
No questions were asked and the following resolutions were carried unanimous!
Proposed by the Chairman, seconded by Mr. A. W. Burkill—"That the directors' report and accounts for the year 1929 be and they are hereby received and adopted."
Proposed by the Chairman, second-Jed by Mr. A. W. Burkill—"That a final dividend on intro-agreement consumers' account for the year 1929 of 5 por cent, on "A" shares, per cent. on "B" shares, 8/12 of per cent, on "G" shares (fully paid
Text read from the printed page and cleaned; old type leaves the occasional error.