The 13th annual general meeting of the Shanghai-Malay Rubber Estates, Ld., was held on Monday in the offices of the secretaries, Messrs. Beck & Swann, 23 Peking Road. Mr. G. Grayrigge (Chairman) presided, supported by Messrs L. E. Canning and R. N. Truman (directors) and 19,554 shares were represented.
The Chairmani said:—It is with feelings of fuller confidence and pleasure that I address you to-day. After a protracted period of depression, the equal of which has seldom been met in any industry, we are able once more to face the future with sanguine expectation. Thanks to the policy of rigid retrenchment urged throughout the slump by your directors in Shanghai and executed by the agents and managers in the Straits, the company has come through little the worse for its experiences and the estates have not suffered at all. Despite the continuance of low prices for the greater part of the year, the accounts make pleasing reading and although the cost slightly exceeds last year's, the difference may be accounted for by the restriction enforced by legislation during the last two months of the year. Chengai is in excellent order and the difficulties regarding bark consumption and weeding on Goodheart mentioned in my speech last year have received the necessary attention and are reported by the visiting agent to be in order once more.
There has been no change in the planted area during the year and none is contemplated at present. Of the 1,309 acres planted, 1,071 are producing and by the time normal production is restored this figure will be considerably increased. No cultivation was undertaken, owing to the necessity for economy. Labour was plentiful and, with the introduction of the new tapping system, no trouble is anticipated in this respect. Health on both estates was good and both divisions were reported to be comparatively free from pests or disease. The manager's bungalow at Chengai was burned, happily without injury to the manager or his family, and being fully covered by insurance, is being replaced without loss to the company. The estates are being gradually turned over to alternate day tapping on a half cut and certain areas are being rested temporarily. A large majority of the trees are being tapped on high panels (between 38 in. and 50 in.), in order that advantage may he taken of the present period of restriction to permit bark on lower panels a complete recovery. The trees are responding well to the careful treatment and a turnover to the lower panels in due course will see a considerable increase in the already good yield per acre.
Turning to the accounts,-you will see that the expenditure on development was reduced from Tls. 7,236 Jast year to Tls, 5,189 this year. The" usual depreciation has been allowed on all estate buildings and equipment. The company's over. draft in Shanghai stood. at the high sum of Ts. 47,742.80 at December 31, but against this there was cash in hand in the Straits amounting to S. $27,080.69 and the deficit on liquid assets amounts to only Tls. 22,090.71. Since the end of the year, the remainder of the cumulative and participating preference shares were offered to shareholders in the proportion of one new share for every five share held. The result was not very gratifying anda sum of Ts, 7,810 was received. However, we are expecting a very large subscription from overseas, and your directors hope to be able to pay off the overdraft very shortly and settle overdue preference dividends as the necessary profits are made. The result of the year's working shows a profit of Tls. 9,212.40, which, added to the sum of Tls. 9,911.58, makes a total of Tis, 19,- 123.98 to be dealt with subject to small deductions for estate managers' commissions. This balance the directors recommend be carried forward to a new account. It is hoped to declare the payment of one year's dividend due on the 8 per cent. cumulative and participate. ing preference shares at the end of May.
Text read from the printed page and cleaned; old type leaves the occasional error.