Shanghai, May 19.
RESOLUTION to accept an offer from a Netherlands company with regard to certain oil concessions was passed at the annual general meeting of shareholders of the Naamlooze Vennootschap Maatschappij Tot Mijn-Bosch-En Landbouwexpjoitatie in Langkat, held at No. 1 The Bund at 4.30 p.m. on May Present were Messrs. W. R, McBain (chairman) and W. Mellor, directors, and shareholders representing 56,932 shares. In the course of the meeting Mr. L.
Soyka, pressing in favour of the selling of "our various ventures in connection with gold, platinum and diamonds, to say nothing of timber," suggested that the losses from these ventures since 1924 had reached "nearly two million dollars."
Presenting his report, the chairman said Tu the balance sheet before you under abilities, the Item of loans appears as $339,461.39, compared with, 344414482 in the accounts for the Previous year, showing a reduction $110,083.43," Since the closing of the accounts, this item has been fur~ ther reduced by $51,327.70, and' now stands at $282,133.69.
The general profit and loss account shows a profit of $19,014.94 which, deducted from the debit balance of '$782,200.81 brought forward from last year, leaves the sum of $103,245.37 at the debit of this account, which it Is. proposed to carry forward to next account.
You will note a debit balance of $80,602.12 has been transferred from Oil and sundry working account to General profit and loss account. In~ €luded. in this amount is a loss of $79,104.55" transferred from timber working account, Of this loss, $50, Os241 was Incurred at Shanghai, and $28,592.14 at Samarinda, The Shanghai figures include $48,458.51, being the loss on the total jon of yard assets, except for the land cove: ing an area of 21.524 mow, which stands in our books at cost, "We Were Fortunate"
In pursuance of the decision to cease operations in timber and realize Our assets in that department, our entire machinery and buildings in 'Shanghai had been sold and paid for before the outbreak of hostilities lost year, In this matter we were for-{unate, as everything in the nel Bourhood of the yard was entirely' destroyed during the recent fighting.
Your directors are now awaiting an opportunity to dispose of the land on which" our timber yard was Situated at Ward Road, "Meantime beyond payments for rates and taxes, there will be no further expenditure in connection with the Shanghai timber yard.
Depreciation accounts for $15,964.50 fof the loss of $28,532.14 incurred at Samarinda, and the balance of $12,- 567.64 Is represented by $7,811.32 for wages of agent and watchmen in Sharge of the plant: $1,761.60 for Guranee, and §2,004.62 for sundries. As stated in the report, the sawmill at Samarinda is at present under offer.
From our auditors' remarks you will note that they are of opinion the timber assets are stated at a figure which is considerably in, excess of their value, Your board and the members of the unofficial advisory committee are nog only anxious, ut fare doing everything within their power, to liquidate the timber department as soon, as possible, and Rave decided to dispose of the remaining assets at the best price obtainable, regardless of the bool value.
The Rantjah Sirang Diamond Concessions working account, including $49,504,70 written off for deproctation, shows a loss of $154,103.30.
"Under Option"
During the greater part of the year the diamond concessions were under option to Messrs, Marsman of Manila, who, since the close-of the company's financial year, have given up the option on these' concessions. While this option was in force, according to the agreement it was nec-assary for us to maintain our full staff to assist Messrs. Marsman in the examination of the concessions, it being agreed that in the event of the option being exercised Messrs, Marsman would take over the staff.
In a circular to shareholders dated January 8, 1988, you were informed that your directors had been advised by Messrs. Marsman that on account of prevailing conditions in the Far East they had decided to relinqueh their option, Upon receipt of this information from Messrs. Marsman, your directors in consultation with the unofficial advisory committee decided to curtail expenditure to the minimum, without, however, risklag, the loss of these areas by contravene tion of the mining law.
Meanwhile, the services of Mr. Mills, the chief engineer and field manager, had been terminated, and he proceeded fo London. We have since received advice from him that 'a diamond group in Europe to whom he had supplied the necessary data, had advised him that they were interested, and negotiations are now' proceeding. When definite news Feceived here, the shareholders will Shareholders can rest assured that} everything possible is being done by your directors and the unoMicial ad-Visory committee to liquidate the diamond concessions and all the company's other mining interests in Borneo, and before the end of the present' financial year it is thole opinion that all these subsidiaries will be Haquidated. The monthly expenditure on the concessions has meantime been reduced to approximately Glds, 1,400 which includes all taxes! dye to the government, and the salary' of one mining engineer.
Text read from the printed page and cleaned; old type leaves the occasional error.