With (a bitter laugh, Mr. Soyka' asked of what benefit was an amalgamation of the two companies it the superintendence, general charges, Shanghai office expenses, directors' fees and auditors' fees were increased instead of decreased. Mr. Soyka quoted figures to support his contention.
In reply, the chairman quoted {rom the circular notice to shareholders issued before the amalgamation, to the effect that "all three properties have, for some years past, been administered by managers who also Jock after other properties in the vicinity, $0 that "no economies in estate administration can be expected from the proposed amalgamation. There is, however, another aspect of the question where a fusion will be extremely valuable and that is in replanting".
"Ag regards possible savings in administration expenses," the chairman went on to quote, "it is doubtful if anything further can achieved in this direction in the Straits, as material economies have already been effected there, and_an amalgamation would make no difference whatsoever in the amount of work that has to be done by the Straits agents, In Shanghai it will, however, be possible to effect savings in the amounts payable to the directors, secretaries and managers".
Quoting from the minutes of an extraordinary meeting of share holders of the Chemor company, the chairman said:—"The third advantage is only a very minor one, which Twill mention in passing, is that it wil be possible to effect some small but nevertheless useful economies in the running of the three estates, or one company whichever way you like to look at it The following resolutions were passed following the discussion:— hostilities on August 14 last and the consequent complete evacuation of the Eastern and Northern Districts from which we collected 30 per cent. of our rental income.
Loss of income fs reflected in the accounts now before you, the amount transferred from Rental Working Account to Proft and Loss being in round figures $50,000 loss than for the previous year '(I intend. quoting round figures throughout my references to the accounts), "This is $20,000 tess than the reduction in rentals which is accounted for by the Yeduced transfer of $8,000 to Depreciation and Renewals Reserve, reduced, payments for Insurance $2,000, Agents' fees and commission $5,000 and water To the balance transferred from Rental Working Account to Profit and Loss has to be added interest earned on mortgages and loans, The figure in the Profit and Loss Account. represents only actual collections during, the year, which is $4,500 less than the amount received last year in spite of the fact that our advances and loans have been increased by $171,000 during. the financial year, 'The overdue in" terest outstanding' at the end of the year and not included in the accounts was $13,000 out of which $4,500 has been collected since the close of the year. The interest due to us on the mortgages for the full year is $10,000 and everything due has been paid in full, The reduced earnings. therefore, are due to the sums outstanding" on old mortgages. After allowing for collections made since the end of the year the amount out standing is $8,600, $6,000 being due to us on a property situated in the Eastern' District, which it is anticipated will have to be taken over by us in the near future, The balance ig due on a property situated in the Central District, which is now being managed by us.
From the Profit and Loss Account we have transferred $60,600 to Bad Debts Reserve, thus bringing this, reserve up to $112,000 out of which {$85,000 is reserved against our mort ages and loans, the balance of $27,000 being 0 reserve against rent debtors, We have also transferred to Special Repairs and Renewals Reserve $52,500 which is the estimated cost of repairing the damage done to Estate "X" on East Seward Road, Estate "Wt" on North Chekiang Road and Estates and "O" on Baikal Road, 'These transfers from 'Profit and Loss Account explain' the reduced profit for the year transferred Profit and Loss Appropriation Account.
From the Balance Sheet you will note that the value of buildings has been reduced by $212,700, This represents the original cost of the buildings for which depreciation had been provided amounting to $140,000 which has been deducted from the Depreciation and Renewals Reserve. The balance of the cost of the buildings, amounting to $66,500, has been deducted from General Reserve and this reserve will have to be built up again out of future profits, "Tye properties complotly dsroed their dig Aut ted non on a Bones On Esato SW!" he otugn hoes Estates "un Soe oni agi tied ity he See one th oper hae Soon Bun' baba colon ioo Ravers te fenantrn cocaine ate eae her Pave beh testeyed an Bana Sse 9 2Se of 1. Atm for date lane ofer hun
Text read from the printed page and cleaned; old type leaves the occasional error.