The thirteenth annual general meeting of the Cheng Rubber Estates Ld. was held last Friday afternoon at_the offices of the Secretaries (Messrs. J. A. Wattie Ca. Ld.). The directors present Mr. A. K. Craddock (in the hi airy, and Mr. A. J. Welch, and,760 shares were represented.
The Secretary having read the notice convening the meeting, and the report of the auditors, the Chairman said Gentlemen,—The report and accounts having been in your hands for some time, I will, with your permission, follow the usual procedure and take them as read.
The year under review has been an eventful one for the rubber planting industry, in that it has seen the introduction, in British Colonies, of the Restriction of Output Ordinance. Cheng has only benefited during eight months of its financial year from the higher prices brought about by this measure, but nevertheless the year's working has resulted in a profit of Tls. 9,583.87, as compared with losses for the two previous years of Tls. 11,029.42 and Tls. 18,080.88, respectively. The profit for the year' would have been Tls. 2,400 smaller, had it not been for the fact that your Directors voluntarily agreed to forego their fees for the past year in order to assist the Company get upon itg feet once more as quickly as possible.
The cost of production appears to be slightly higher than it was last year.
I say, "appears to higher," because for purposes of comparison the cost of Shanghai expenses in the detailed statement shown in the Report is worked out inclusive of the Directors' fees, which I have just told you have been foregone. Eliminating these fees, the total cost amounts to 10.40d. per Ib. The increase "ju the Estate cost of production has been brought about by the smaller crop over which the overhead expenses could be spread, and by the fact that the duty of two cents per lb., which did not exist last year, is included in the cost under the heading of rubber charges.
Text read from the printed page and cleaned; old type leaves the occasional error.