To the Editor of the "Nowra-Cuixa Dany News"
Sm—It was less than two years ago that the Shanghai Exploration and Development Company Ld. was reconstructed by having its paid up capital reduced by fifty per cent. so that the company might have a fresh start unhampered by liabilities and doubtful assets. "And it may be reasonably assumed that when the construction scheme was in contemplation the General Managers and Directors did realize this necessity and act accordingly.
Well, Sir, the Company was sent out with a fresh lease of life and with very promising prospects which have been more than justified by the results achieved. The hopes of share. holders were raised and encouraged by the splendid monthly—results Published in the press so. that according 10 conservative estimates a dividend at least twice as big as that for the preceding year was confident ly looked forward to by shareholders for the working of 1984, and the results have not belied these hopes, for, according to the summary Published in your issue of to-days date the Company shows a credit balance of $440,000 on last year's working. A. splendid achievement indeed, but what does the Iong-sutfering shareholder get out of all this? The princely sum of twenty-one cents per share. Which is represent. ed, for the entire list of shareholders. by' slightly more than 25 per cent, of the net earnings! And this if you please, Sir, at a time when the financial stringency makes it urgent that some relief be extended to all that have the misfortune to be caught in the tolls of these abnormal times.
As Tam not in the councils of the General Managers and Directors of this Company, it is dificult for me guess what may nave been the factors actuating them to adopt this ultra-conservative policy in the alloca~ tion of last year's profits. They may be wise or else their action may be unwarrantably over-cautious. I per~ for to express no opinion on the subject. But, what I should like to See, Sir, is an exhaustive airing of the matter, either before or at the forthcoming annual general meeting, whereby the shareholders may be satisfied that the recommendations of the General Managers were inspired in the best interests of the shareholders and were absolutely necessary.
Shanghai, May 23.
Text read from the printed page and cleaned; old type leaves the occasional error.