Owing to the hostilities the com= 25788] pany lost all consumers in the Nor-therm and Eastern areas, who are now steadily and. slowly' returning. The No. 1 gasholder on the Vu Ya Ching site was dismantled and sold. All other plant and buildings were maintained in a satisfactory manner and T think 1 must record that. the plant was shut down and started again without accident.
It you will bear with me a little Jonger I will refer to the accounts, 'Taking the balance' sheet, frst you will notice that during the year a further 139,300 shares were issued at par thereby increasing our paid up capital to $5,600,000.00 and the result 79, of this is reflected in the. reduction of the overdraft by some 14 lakhs and, in addition, in profit and loss. account the item' interest Is $99,471.13 less than in the previous year.
Following our usual custom w2 have recommended the transfer of {$15,000.00 to the Chinese employees benevolent fund and allocated $10,- 900.00 to retort renewals account, Regarding the working for the yeur,.our Income from: gas sales was {$282,008.36 less and our receipts from Tesiduals $105,234.32 less, while the expenditare side our fuel care bonised showed "a decrease' of "only $106,410094, After allowing for depreciation on the usual scale, amounting to $539, 70221" there remains a credit of $54,245.40 to be brought forward; a very disappointing result after the year lidd commenced so promisingly. You will notice, further, that at, the suggestion of our auditors, we have inserted in the balance sheet the sum $689,908.19—our estimated losses tothe Sino-Japanese hostilities and we have lodged. this claim with HBA. Consulate-General T might state that in times like the present, the more money that is clt~ culated' the better for all and with this in view your board has considered the question of paying a dividend from reserve, but after very mature consideration and consulta Aion with our bankers we reluctantly gelded that t was out, of the ques-ion.
Before I close 1 would like to refer to our position in ths International Settlement and the sooner that position is defined the better it will be {for all concerned. We have seen the neutrality of the Settlement violated and the danger to our property at tone time gave jus very grave cause for anxiety, "Begin Negotiations"
It is up to the Foreign Powers to begin negotiations with the least possible delay and I for-one would strongly advocate that the status of the Municipal Council be more clear= ly defined and their powers strengthened and it must be insisted on that a clear neutral zone around the borders of the Settlement be estab-shed If we are to avoid repetitions of war aS we experienced in 1932 and again last year, with the appaling loss of fe and wanton damage to property, The "status quo ante" of the Inter national Settlement Is urged: it Important to the Japanese as the chinese and all nationals repr ented In Shanghai; delay causes mis. giving and at the moment delay is handicapping honesty of purpose in rehabilitation, Remove restrictions, may add seemingly unnecessary restrictions, and restore confidence te badly shaken community, and then wwe shall attain something worthwhile fof this very great centre of trade, The Resolutions The following resolutions were passed unanimously:— ear be "approve "Phot Me. R, MIN. Joseph be and he *Bimpoon! accaaed By M.-F
Text read from the printed page and cleaned; old type leaves the occasional error.