Chairman's Review of China's Difficulties at Annual Meeting: Unstable Conditions Hongkong, Feb. 23.
"It would appear that dimeult times are still ahead, Tt is in particular the unstabilized condition of currencies which causes the prevail-ug feeling of insecurity and we must, I fear, face the prospect of a long uphill struggle before the world-wide clouds of depression are finally dis-hasten recovery if China lagged behind. "Considering the vast. possibili-Wes in China, he stated that he could not be really pessimistic about the "The deplorable situation existing Febru Shanghai s serving as an aden drag on tade," he concluded, "However, I feel that some way out represented interest at 6 per cent
fon the amount of pald-up capital issued on the formation of the com-any in 1933. A further 178,000 fully aid shares of $10 each were issued for cash on the February 12, 1934, thus increasing the paid-up capital of the company to, $1,800,000. The year was made on the! issue of $18,000,000 5% per cent. 10
March 1, 1984, the loon being financed, in the meantime, by the underwriters, who received interest at the rate of 6 per cent per aunum for the interim period, between the 12, and March 1, 19936.
It will be noted that the nett profit for the ten months under review amounts to $313,298.09, It is recom-
CHINA REALTY COMPANY re on, Tem aces ouring the year The tight monetary situation in andthe plot was prepared for re-'Shanghai was described in a speech planting, but unfortunately owing to given by Mr. F. W. Sutterle, Jr, vice-the incidence of Restriction it cannot resident and acting chairman of the at present be replanted.
China Realty Company, at the ninth 'The actual crop harvested was 157,- 'Snnual meeting held in its offices last 514 Ibs., as compared with 160,786 Ibs, Wednesday afternoon. For the frst for the' previous year. me months last year, Mr. Sutterle The quantity of rubber sold up to said, money was plentiful, and then the time that the Accounts were made came the drastic change almost over was 156,104 be, which realised hight. The firm reported a profit of S11 pence per pound nett, against $797,890.82 for the year.
2.59 d: last year.
The Stock on hand The chairman was supported by the end of the year has been valu-Mr, A. Loonis, Mr. J. B. Davies, Mi ed at 5.19 d. per pound nett. rectors.
Y. Lin and Mr. W. A. Adams di STE avent aelton amount: [made into. Smoked Sheet. which The whole of the No. 1 latex was Gemeratly was of Singapore Standard The chairman's speech follows: duality. sipated.
1804 was the mort unusual business "What we need is a form of re-'Stn seconding the chairman's epecch, a secon: 8 mended that a' dividend of 10 per covery which wil) give increased purchasing power and a more tapa nar Ae Sede mi aw tone cent. or $1 per share, be paid on the year T'have ever experienced "in fiver is subject to enitien issued capital of $1,800,000, absorbing Shanghai, especially with regard to Aurnover of stocks, rather than tion and isnot alowed fo ud ¢ real '$190,000, and it is proposed to write the real' estate business. For the artificial rise of prices." value as a commodity, "we cannot [Off the whole amount of the prelimin-Ast nine months of the year, money These slatemenis were made this expect seitied and. Profiable tade ary expenses and debenture issue Was 20 pleniifil and literest rates pernine, at the annual general mest conditions in the Far East. Healtny expenses amounting to $19,433.80. It 50 low, if was next to imposalble for ing of the Hongkong Sha! export trade from Ching wil cure further proposed to write of a to negolate any mortgages for our Banking Corporation, by the chair-many of our (roubles and hope te Proportionate amount of debenture aesount and absolutely out man, Mr. C.GS. Mackie, a summary of Whose address follows: fous wil hot be retained tom underwriting commission, namely, the question for us 10 charge s come laying "golden egg, by currency $20,000, representing the proportion snisson for doing the business. Referring to the American silver purchase bill, Mr. Mackle declared: {oles "and" une' resections for ten months on the basis of 'Then the drastic' change in the amortization of the total amount of money market came over night, and "AMI T will say ts that, so far, it has '$360,000 over the period of ten years money could not be borrowed any: been of benefit to an—insignificant rik's Directors' Report, for which the relative debenture where. 'Th past years, when we have umber of persons to a not" very 'The Directors' report for the year issue Is current This will leave a Experienced tightness of money, one convincing extent, while it has been Jended December 31, 1934, reads—Dalance of $83,06429, which, after ould always borrow st higher rater the cause of a serious dislocation 'The net profits for the year, to-providing for payment of directors'
Interesttovday, it Is simply" ime which may yet prove disastrous gether with—$3,462,728.10, "balance fees, itis recommended should be Dossbie to borrow—the value of the 4 country containing one-quarter of brought forward from last account, Jcarried forward.
Sccurities or the rate of interest being the world's population," after paying all charges, deductin longer a facter.
It is the policy of your board of interest paid and due, and making directors to limit dividends to 10 per "There. an old saying that it Hongkong's Example provision for bad and doubtful acalways darkest Just Before the dawn cent, although the earnings, on the America's silver policy, Mr. Mackie counts and contingencies, amount to basis of the business actually con trid Tam hoping the fs the ease with continued, 1s not the only disturbing $16.407,425.46.
Shanghel "to-day. Quoting from sum ated by the company, to date, factor, A great deal of the financial The Directors recommend writing represent approximately 18 per cent.
SPinance and Commerce" of January unrest in China is algo due to the off Bank Premises Account the sum 2, 1098 under the heading "Shanghai er annum on the present' paid-up failure to meet the situation. Dim-$1,000,000, Land values; there. appears to" be capital, and to accumulate any sur inlshing silver stocks at Shanghai and After making this transfer, de-Guile 2 margin of improvement for pluses until it is considered justi-elsewhere are inevitably following ducting the Interim Dividend of £3 fable to capitalize the whole or any Shanghai land" values" ar compared the disparity between" prices in er share, pald on August. 13 last, with other large ets throughout the art of such accumulated earnings.
Shanghai and London.' Hong Viz.:—£480,000 @ 1/5% =$6,400,140.85, world and ae land has always been 'This policy will ensure an increasing conditions, and remuneration to Directors, thers the basic security for all large for Jamount of ordinary capital being, {nes in' dhe past T feel sure Dut, by Keeping funds quid, the remains for appropriation $8,914,- allable a8 additional security to the banks are able to meet large with 21350, out of which the Directors will hela ite premiere position debenture holders, arawals and yet avoid dislocation of Investment the future.
Fecommend the payment of a Fina exchange, Dividend of £3 per Share, viz, will, however, be obvious to any-Seles of real-estate in Shanghai "China's silver export duty and £480,000 which, at 1/B%, the rate one who has studied the position with during the year were restricted equalization charge were neither of the day, will absorb $5,619,512:20, regard to the security afforded to the tore or less professional -operstions necessary, advisable or success The Balance $3,294,70130 to be company's issue of debentures, that trid were very few in number and said Mr. Mackie. carried to New Proftt and Loss there is little need for such additional In'view of general busines conditions "The deflationary effect of th Account, backing. The properties mortgaged and the. present monetary" criss, ver drain was serious and the banks The Sterling equivalents of the your company, and which form the onsider that our profit for 1094 Shanghai were forced to concen Assels and Liabilities are shown at principal security for the debentures, "really good show trate upon the preservation of cash 1/8%, the rate ruling on the last consist of a group of sixteen very, our' directors are' recommending to the detriment of trade," day of the year. favourably located lots, principally on the creation of a General Reserve "As to the future of the currency Mr, S, H. Dodwell has been elect-[Nanking Road, which were valued for Find and the payment of " dividend position in "China," Mr. Mackie defed Chairman for the year 1935, atid probate purposes in 1931 at over 18 cents a share to comply. sith clared, "I hesitate to make a fore Mr. °C. C. Knight has been elected $50,000,000. "The title deeds of these the' provisions of the' Chine Trade Tt ts essential that very great Deputy Chairman, Droperties have been transferred into 'Act, bs itis their undivided opinion caution be observed and that no step that under present conditions and the nome of the trustees, and it will be taken without very careful con-uncertainty' and. obscureness sot, the be seen that there can be no deben-sideration and consultation with ext few months, it would. be foo! ture on the market which, from the those qualified to advise. for re-election, Hardy to pay out any" amount more point of view of security, surpasses "T should have thought it obvious than is absolutely necessary cordingly. those issued by your company. {hat the Government would have Messrs. T. H.R, Shaw, "Tu conclusion, would. point out 3 "nin lose ce-operation with the I need hardly say that It is not the that whilie the present situation son and J, P, Warren, having foreign exchange bankers at Shang-intention of your directors to neglect Iraught with great danger, we have Hongkong, have resigned their hal, whose long experience cornea any other opportunities that may endeavoured in every way to combat eats and, Messrs. C. C. Knight, W. great weight in such: problems, Un-occur for long-term financing of a Sit adverse factors ano instal con-J. Keswick and H, Dodwell have fortunately, in the earlier stages of been similar nature, and, when monetary, Hidence in Shanghai Rent Estate, our the crisis, their advice was not asked conditions in' Shanghai are more firm belief being. that the situation and it is most unjust to criticize them.
Rormal, it will be possible, T am sure, wil eventually adjust stcit and. the by Mr. John Fleming, C.A. and Mr. for what ensued, this way to strengthen still further Future of the city must be. contem HI, R. Forsyth, C.A., who offer them= the position of the company. plated with optimism: selves for re-election, Anxiety t© Ca-operate I do not think there is anything "The situation has, however, re-reiners, being, n0 questions the fi further I need add by way of ex-owing resolutions were gently become much improved.
Text read from the printed page and cleaned; old type leaves the occasional error.