Shanghai, June 11.
The second ordinary 1 mect-Ing of the Metal Industries of China Lid, was -held at 2 French Bund, the" offices of the secretaries and general managers, Wheelock and Ca. Ltd, yesterday, Mr, G, E, Marden (Chairman) presided, "and he was supported by Messrs.' Ellis Hayim, 'V. K, Song, directors, and Mr, W. 3 Hawkings (representing the secretaries). The shares represented totalled 161,120, 'The directors' report and state ment of accounts for the period Biarch 16th to December Sist, 1937, was as follows:—After providing for commission to general managers and manager, and directors and auditors' fees, there is a balance at the credit of the Profit and Loss account of $123,61432, which the directors recommend' should be allocated as follows:—$16,583.10 to [write off preliminary expenses and underwriting commission, $109,031.22, to carry forward to 1038, The chairman, in his speech, sald:—
The actual balance sheet as required by the Hongkong Companies 'Ordinances conveys only an me complete idea of the state of your company's business and your direc tors accordingly decided to circulate with it a consolidated statement infeorporating the balance sheets of the' subsidiaries.
From the balance sheet itself you will observe that very substantial amounts are owed to the company's bankers, the Hongkong & Shanghai Banking Corporation, and our general managers and secretaries, Messrs, Wheelock & Ca,, Lid, Shareholders will, Tam sure, wish {0 be associated with my expression of gratitude to both of these bodies of gentlemen. To our bankers for maintaining mo Jcourteously the arrangements come to in times when it might have been Jexpected that the company's business: would have permitted fairly rapid turnovers, whereas we have been (as I shall presently explain to you) almost completely frozen for a long period, and to our general manage and secretaries who have come to our assistance moat loyally, and you will agree with me that we may consider ourselves extremely fo tunate that they were in a position to do 50, 'A very large amount is due to the company from its subsidiaries, but this of course still remains a Labill lot group. Other investments Fepresented by vessels purchased with the object of operating until they are written down to a point where they "may be profitably broken, and it is to this source that we must look, for the time being, for almost our only revenue, 'You will observe from the con solidated statement that very. substantial profits were made "during that part of the year when we were able "to operate freely, From the date of incorporation up to the end Jot July the company' ered exceedingly, but the outbreak of the local insidént caused a cossation of activities which has existed practically without change until to-
In addition to being unable to carry on our activities in Shanghai Wwe were further handicapped by the diversion of material to Hongkong and Manila, whilst a ship (intended for breaking) had to take refuge in Hongkong where she still remains This of course will result in quite substantial expense both in itself and due to the fall in the value of steel, You will, however, be reassured when T tell you that prices so far have not fallen to a point below that on which all our calculations fare based, and your directors be-Heve that when the time of re-opening of business in this part of China comes there will be a ready demand {for our large stock at prices certainly not below those existing:
Direct damage due to hostilities was fortunately unimportant although Wwe had bombs and shells in, our Dulldings, and up to the time of the closing of accounts it would have been correct to say that there had been little or no looting, Unfortunately, however, we were prohibited from' obtaining control of all our properties at Lunghua until only a few weeks ago and considerable thefts have taken place In the Interval, possibly amounting to as much as $50,000.00, We now have full con trol of all properties including one in close proximity to the Lunghua Aerodrome, Local conditions are such that I hesitate to indulge in anything in the way of prophesy as to when we can Fesume operations, or rather when we do so; but you may be quite certain that your directors and your general managers will seize any opportunity that may serve to advance your interests.
T should like, in closing, to refer to the services of our Chinese staff, several of whom lost their lives whilst, endeavouring to protect our property, The following resolutions were ear ried unanimously:—
That the report and accounts as pre; sented be" adopted. "This was proposed warden ana seconded by. Ins.
othe" patanco_ standing at credit Bre and In can oe dea leoetra"in thous" rebore, was. prapoged Sthe"' manner recommended by Sir Marden and eecondsa" by Bit rH. R. Cleland proposed and Mr.
Text read from the printed page and cleaned; old type leaves the occasional error.