To the Editor of the "Norn-Cuuxa Dasty News" sm—That_ my efforts to awaken shareholders from their apathy and to. get a Shareholders' Protection Association formed. by publishing figures taken from annual Feporis and. accounts. or" various, Rubber Companies managed by cur two leading rms of managing agents, should be" construed aga. personal attack, seems to me ridiculous.
Tf-any attack there be, it is on the directors and shareholders of the past for their apathy in having allowed charges as at present to have become possible.
contend that management and. directors' charges amounting to between 10 per cent. and 14 per cent. cannot be justified by any company handling any commodity. How is it Possible for directors to reconcile the Administration charges of the com: Pany which including all" their Malayan agency expenses amount 10 4.68 per cent. of net sales, and the same charges of many. other com-anies of which they are also directors, amounting to an average of 14 cent. of net sales?
If the managements which I am criticizing should question the! Agures which the Shareholders' Profection Association have produced 1 cannot be blamed as the only figures available to shareholders are those appearing in the annual reports and, accounts from which these figures were taken.
With reference to the lean years! Which the companies went through; If the agreements with the managing agents had been en the basis of percentage of net sales, they would only have suffered financially exactly the same manner as any commodity agent's commission must. suffer when prices are low.
Vice versa their prosperity creases when prices are high.
In other words they merely suier prosper with the shareholders.
No shareholders would object a minimum agency fee being stipu lated in an agreement as they naturally realise that' managing. agents cannot be expected to. work at a los Shanghai, Nov. 21.
W. Hicxuinc.
Text read from the printed page and cleaned; old type leaves the occasional error.