Shanghai, Apr. 22. DENUNCIATION of the alleged failure of the directors of the Chemor and Klebang Rubber Companies, recently amal-gameted, to reduce their fees following the amalgamation and on other matters connected with the companies, was made by Mr. L, Soyka yesterday at the annual meeting of the Chemor United Rubber Company, held yesterday at 93 Canton Road, A, J. Welch was in the chai supported by Messrs. L. E. Canning and H. Kadoorie, (directors), 17.
Reader Harris, (legal adviser), and C. F, Shackleton, (representing J. A. Wattie Ltd.) A total 296,399 shares were represented by the attendance:
In his speech, following which the address by Mr. Soyka was delivered, the chairman said:—T will deal with the accounts frst, since, if you are not in possession of the Accounts for 1936 for both the Chemor and Shanghai Klebang Companies, it will be impossible for you, to make any comparisons between the working for the years 1996 and 1037 as this is the first year in which the accounts of the three estates are merged.
The working account this year shows a profit of Ch$214,012.39 as compared with a combined profit Last year of Ch.$122,327.38. The two chiot items that contributed towards this) very satisfactory result vere that the output of rubber was greater by 111,720 Ib. and the average net price realized for our product was 131 pence per pound higher.
The estate expenditure on revenue account was, on the other hand, St. '918,024.74 greater, The chief variations between the expenditure for the two years were under the fol-Jewing headings:—
And here I will make a brief alla-sion to two letters that have appeared in the press during the last week or 30, In the frst, amongst many other inaccuracies, the writer made the statement that after the amalgamation the agents and secretaries promptly raised their fees while directors' and uditor's fees have also been raised.
T flatly contradict this statement since the head office expenses are {$1,584.75 less than they were when the two companies were working as separate entities, directors' fees are similarly less by $750 and auditors' fees are down by $209.79 and this, in spite of the fact, that the amalgamation was not approved of by. the respective shareholders until July, 1997, and consequently any benefits that' may have accrued from. the amalgamation only made their effect felt during the last six months of the year, Furthermore, the shareholders were clearly informed by circular before they were asked to agree to the amalgamation that the economies to be expected in management and administration expenses would only be triting.
Without Business Ethics Sade ten mented A'net decrease of St, $000
Text read from the printed page and cleaned; old type leaves the occasional error.