In this connection the boiler room plant for Grosvenor House and the adjacent properties is by far the largest installation of its kind in China and that the whole of the work has been carried out by their com-any and its subsidiary company the China Brass & Iron Work Ltd, This, said the chairman reflects rear credit on thal Jennings and his staff, It is with regret that he had to refer to the resignation of Mr. G. P. Forster from the board, on his departure for home. He' was one of the original directors of the company and the chairman wished to put on Fecord their appreciation of the grent interest he has always taken in the company from its ineaption. "On the nomination of the Shanghai Waterworks Ca, Ltd.. Mr. R. G. MacDonald has been appointed in. his place, In proposing the reelection of the present auditors, "Messrs. Love, Bingham and Matthews they were asked to sanction an increased audit fee of $1,500. The audit work of the company has increased considerably of recent years and the directors were satisfied that the increase is justified.
There being no questions asked the following resolutions were put to the meeting and passed:—
That the directors' report Today the issued capital of the company does not in the opinion. the directors represent ai adequate proportion of the capital invested, In times of uncertainty such as the pre sent, the directors are certain of the wisdom of conserving the cash resources of the company and therefore. recommend the capitalization, which the accounts show Is. fully' warranted rather than an' increased distribution in cash by way of divid. ends. Past records of the earning power of the company disclose very indication that' an adequate return on the increased capital will be maintained in the future, assisted as it will be by' the income derived from some §224,000—standing in the investment, account, unless the depression increases' in force and extends for a very protracted period, Which eventuality. is dificult to envisage, bearing in mind Shanghat's wonderful recuperative powers.
Out of the amount available for Aistribution the directors recommend the payment of a dividend of 10 per. cent. thus maintaining the levels. former years, and the placing to reserve of $60,878.22 which, as already mentioned, will after the' capitalize. tion make' the reserve up to $130,000 so. the usual donation to the British Forces Recreation Fund and the placing to bonus to staff account $25,000. Under the profit-sharing scheme adopted by the company some years ago, the bonus to staff, as ex-Plained last year, varies with the Gistribution to. shareholders, Tu calculating the amount of bonus: some account has been taken of the distribution of undivided profits. If approved, the intention is to distribute the sum among the staff as an addition to salaries for the two ensuing years and not as hitherto for one only.
Text read from the printed page and cleaned; old type leaves the occasional error.