As regards the immediate future, I have already referred to this in dealing with the question of increased capital. The yarn market is at present ce had, due'no doubt to the disturbed state of the country, especially in the province of Szechuan, that the native mills have from to-day closed down 50 per cent. of their spindles for a period of two months and, unless an improvement sets in during that period, intend stopping night work altogether. The shutting down of so large a number of spindles must eventually influence the yarn market and mills which have' sufficient capital to carry on will eventually derive the benefit thereof.
As already stated, our cotton position is favourable, as we are covered far forward and, conse quently, if you pass the resolution which will, later on, be submitted to you, and thus provide the company with adequate working capital, 1 think the future prospects for the year are decidedly promising.
That Gentlemen, is all I have to say, but, before putting the resolution before the meeting, I shall be pleased to answer any questions which shareholders may wish to ask.
HONGKONG OPPOSITION, Mr. G. Ellis—Were the general managers approached by the Hong: kong shareholders to postpone this meeting for a week so as to allow them to be represented The Chairman—The reply is in the affirmative.
Mr. Ellis—Did you not instruct local brokers to keep the fact that the meeting would be held on the 19th away from Hongkong until after Monday, the 12th instant The Chairman—That is not so. The board did receive a letter from Hongkong about the rumours of the new issue in which surprise was expressed. It was stated that they expected a dividend for 1922. A reply was given that the letter had been laid before the board but they were not authorized to give any information which was not given to other shareholders.
Mr. Ellis—What was your idea in so doing?
The Chairman—The questions have nothing to do with the resoltions. We do not feel compelled to answer. The meeting is held in accordance with the " articles association.
Mr. Ellis then said he would stop asking further questions on account of the hostile attitude of the directors.
The Chairman—There is no hostility on the part of the board to any individual shareholder. The procedure that has been adopted is, in the opinion of the board and the general managers, in the best interests of the company.
The following resolutions were then proposed and carried unanimously That the statement of accounts for the 12 months ending Decenmibee 31, 1922, as audited and presented, be passed.—Proposed by the Chairman, seconded by Mr.
Rutherford.
That the election of Mr. C, H. Rutherford and Mr, E. T. Byrne to the board of directors be confirmed.—Proposed by Mr. C. A. Skinner, seconded by Mr. T. G. Drakeford.
That Mr. E. A. Mackay be elected auditor of the company at a remuneration of Tls. 1,250.—Proposed by Mr. W. G. Pirie, seconded by Mr. Ellis Hayim.
The last resolution, proposed by the chairman and seconded by Mr. A. J. Welch, was as follows:—That 220,600 of the unissued ordinary shares of the company be offered in the first instance at a premium of Tls. 3 per share to the members of the company in pro-
Text read from the printed page and cleaned; old type leaves the occasional error.