In 1995, owing to the present conditions we have only despatched and sold 63,770 tons, a decrease of 95,422) closing of the accounts As a matter of fact we have CE the whole course of our history held such a large stock of coal unsold at the mine. It must be obvious to you, gentlemen, that this stock requires financing until such time as 2 reduction can be effected. In making their recommendations with regard to the appropriation of the profit, your board had no alternative but to take into consideration the necessity of conserving our resources, especially during the present Umer of financial stress. On the other hand it is pleasing to note that during May we despatched 31,000 tons of coal, which is a marked improvement on the previous months of this year—on improvement which we hope will be maintained. Tt is im-Possible to prognosticate how long the present financial stringency will last, but T think we need have no fears regarding the eventual disposal of our coal. 4
$831,761.55 Debenture Investments Turning to our investment account, at the close of the financial year under review, this consisted of the The previous year at December 31, 1939, we held Tls. 105,600.—5¥ per cent. Shanghai Power "Co's debentures, equal to $149,045.81. You will note in the chairman's speech at the last general meeting of the company, he informed you that we were purchas~ ing debentures for our investment account. It is unfortunate, again, that with the best intentions of obtaining a safe return from our investments, we now find a serious depreciation in the market value of our holdings, and it is owing to this that your directors recommend that a reserve of '$00,000 be created against the depreciation in their value, If we are fortunate enough to experience a recovery in the market, this amount may, if required, be taken back into our profit and loss account.
Text read from the printed page and cleaned; old type leaves the occasional error.