A special dividend to be satisfied by the issue of one new fully paid up share for every two shares at present held was announced by Mr. B. D. Tata who presided at the second general meeting of the Tung Yih Spinning and Weaving Ca, Ltd. which was held yesterday afternoon at the company's offices at 20 Ningpo Road Mr. Tata was supported as chairman by Mr. Woo Che Hong, Mr. R. B. Cooper and Mr. B. P. Mehta, Directors. The total number of shares represented was 144,728, The chairman in his speech said In the main producing States the disposal of gold is governed by separate Gold Buyers Acts, each of which lays down that gold produced may be disposed of only to a "licensed buyer," or to one of the two Royal Mints, at Melbourne and Perth, or to the Commonwealth Bank. This does not preclude a producer from himself shipping newly won gold abroad, but the great bulk of the output is, in the first instance, disposed of locally. The licensed buyers also include the trading banks and a few private undertakings specializing as bullion brokers.
There are, in short, thè review says, four distinct channels by which the country's gold output is turned into external resources, chiefly sterling: first, the Commonwealth Bank, buying gold direct or via the mints and shipping it abroad; secondly, the trading banks, buying direct from producers and shipping on their own account; thirdly, the bullion brokers; and, fourthly, some of the large producers shipping their own output abroad on their own account.
The working of the past year has been a very profitable one and the good results are mainly due to the advance in the prices of cotton yarn brought about by a shortage of supplies, You will see from the report that the directors have recommended to you to pay a special dividend to be satisfied by the issue of one new fully paid up share for every two shares at present held, such new shares to rank for dividend and in all other respects as from January 1, 1939 pari pass with shares already issued. At the extraordinary. general meeting held today immediately preceding this meeting, a resolution authorizing an alteration to the Articles of Assi ciation of the company has been duly passed which enables you to declare the special dividend if you approve of the appropriations recommended to you.
New Weaving Plant to be Built The proposed ne of new capital s considered necessary because your Directors have decided upon the addition of a weaving plant, the machinery for which has already been ordered and the building for housing the machinery is in course of erection. It is hoped that the plant will be in full operation before the end of the year.
The accounts are, I think, quite clear and need no detailed explanution. The auditors' fee has been shown at a higher figure than that passed by the shareholders at the last general meeting. This is because your Directors have agreed to an adjustment requested by the auditors due to depreciation of the Chinese woilar and paid half the fee in local currency and the other half in sterling converted at the rate of 1/2%d., to the dollar, which I hope you will approve, During the year under review, conditions were very favourable so fa as the textile industry was concerned. Following the hostilities a number of cotton mills were forced to close down or were destroyed which caused an appreciable reduction in the aggregate output of the mills. Supplies thus fell short of demand which at times very keen, as a result which yarn prices registered rapid and substantial advances. Despite disruption of communications, Chinese cotton was available in sufficient quantities practically throughout the year, but of late a scarcity is being felt and we are compelled to import foreign growths to meet our requirements. The spread of hostilities has greatly reduced cotton production in affected districts and mills will have to rely on foreign cotton to a great extent, Conditions in Interior Important T will not try to forecast the future as conditions in the country are abnormal at present and much will depend on the accessibility of the interior markets. However, taking into consideration the present state of the market, I hope we shall be able to do well this year also. Gentlemen this is all that I have to say, but be-
Text read from the printed page and cleaned; old type leaves the occasional error.