In my speech of a year ayo 1 referred to the purchase of a fleet fof lighters and towing launches. the new company at a fair rent. 'They will sell to the new company live' stock to the Value of about $13,000, and they will be paid for these in shares, Our. company will sell live stock to the' value of about {$21,000 and machinery to the value fof about $5,000, in all $26,000, to. the new company, and, these also wil be ald in shares. Any further cash Fequired for live stock bought from abroad or for additional machinery Jor for working capital will be sub-[scribed half by Keylock and' Pratt Jand half by this company, #0 that at all times Keylock and Pratt and ourselves will have a half' interest -in the new company.
Your directors consider that this arrangement will be distinctly to the Jadvantage of your company and will feasten the time at which your company will have a herd producing the [so called, 'T. Milk. Tt will also of considerable help to us in that Jour Minghong and river properties Jeannot a{ present be used, and unless Wwe came to some arrangement such a this, we should have to seck for representing the secretaries. 19.345, other premises, It is not expected shares were represented by the that: the cash to be invested by this attendance. tu lis speech, the! chai company wil for the time being be material amount, 'The directors' report and state-'There being no questions, the folment, of accounts for the "year flowing resolutions were passed:—Jended December 31, 1937, having 'That the directors' report and audited been in your hands' for some days past. 1 shall, with your permission, hey aes Bea cee sabre Gasol fake them as re Despite adverse local conditions consequent upon the Sino-Japanese hostilities resulting ina reduced turnover, T feel that the ae-counts before you for" approval may be regarded as satisfactory. It will be noted that our bank over= draft position has materially improved, showing a reduction of $73, 000 on' the gures as at December '31, 1996, Careful consideration 10 overhead expenses has contributed to this result, and whilst we have provided depreciation of $53,000, our capital expenditure hax been ess than "$10,000.
Text read from the printed page and cleaned; old type leaves the occasional error.