'The recovery of the piano trade throughout the world and the effect of this upon the business of Messrs, Moutrie and Ca, Lid, was described by the chairman, Di. W. J. Isenman, in the annual report' submitted to shareholders previous to the 37th Ssnnual, general meting of the. com-Pany, held on July 6 at the Shanghai offices of the company, 60 Nanking Road. Dr. W. J." Isenman presided, supported by Mr. H.W.
MeMeckin and Mr. K.'E, Newman, The chairman's report for the year read as follows:
At our annual meeting last year the suggestion was made that pos sibly it might be in the best "interests of shareholders if this company was to go into voluntary Uquidation and your board undertook at the time to give the matter their most careful consideration, Prospects at that time looked very black and with a regular loss being incurred every month your board were in full agreement that, in principle, liquidation seemed the only prudent course. They were, however, faced with the dimeulty that the company's largest and most valuable asse(—the land and factory—was quite unsaleable except at an absolute sacrifice. Those of you who are resident in China will realize quite readily the truth "of such a sweeping statement, but for the benefit of shareholders abroad T would state that real estate and property in Shanghai has in the past couple of years become practically fu entirely frozen asset in view of the unprecedented commercial and financial depression which has visited Shanghi Our next most valuable asset, apart from our stocks, is our in: vestment of surplus cash in loc debentures and preference "shares Which were previously regarded as practically gilt edged and which con-Unue to yield a good interest return, Their market values, however, have been depreciated to an warranted extent through the prevalent financial stringency and their sale could only be effected at a considerable sacrifice, Faced with this situation your Board could only put into force a policy of the most rigid economy and endeavour to limit our losses as, far as possible, With the deprec tion of 'China's currency in Novem ber last a new aspect of the position has presented itself and although the effects of this monetary change are only being felt very slowly, the out look is now considerably' brighter for export and your board are hopeful that future development of your business may be concentrated this direction, Considerable impetus has been given to local manufacture of all kinds and this has resulted in our now beng able to rent out 8. part of our factory and quite favourable terms, With the advantages st the present low rate of exchange coupled with cheap cost of labour we can now produce a first class piano ata price which defies <ompetition in any market, Plane Trade Recovery The piano trade throughout the world is steadily recovering from Mts recent apathy, as is shown the recent reports of manufacturers Both in Great Britain and Amarica and although a year or more ago it appeared as though radio was 10 replace the plane, it has on the contrary rather developed a taste for music which has greatly increased the number of pianos in use, The following two extracts from recent issue of the "Pianomaker." the leading Piano trade journal in Great Britain lend encouraging support to this view:
"The majority of furnishing houses have' recently _establis plane departments, including one of the largest radio chain shop groups, who have recognised that the plane forte is really a competitive force against radio, "Most factories are at the moment working overtime to cope with the revival of the plane trade through: out the world."
In many parts of the world, plane playing has now been introduced into the general curriculum for ladies' schools and colleges and 1 am part cularly pleased to inform you that our Chinese friends are turning to. the plane in steadily increasing numbers.
meet the local demand for a connd instrument at a reasonable price we have recently put on the market a ow standard model at a retail price fof $395 which is the lowest price ever on record for this country and should bring it within the reach of many who hitherto have been denied its enjoyment.
Our new manager has recently vintes our tails branches and also java in addition to. communicating with all other overseas agents point= ing out to them the present opport nities for developing the export We have opened new agencies in Durban and Capetown, where Pianos, owing to the favourable exchange conditions, land at 60 per cent, cheaper than from any other source, and from there we are hoping receive large orders, There is a new type of piano which recently been introduced in Eng-Jand and which has. resulted enormous sales since its introduction, This type will be manufactured by us and we hope to have them ready for our markets in September next.
Our sales and output of instruments at the factory have remained practily the sare as last year, but output for the last four months ha almost reached that of the previous ght months, which includes a largo quantity of grand pianos (of a much greater value) which quantity" was only exceeded in number during the year 1028, 'The losses which we have sustained {in the past year were not in the plane branch of our business, but in. the radio, gramophone and sundry' inet coupled with many ring items of expense passages for staff pletion of service, General reorganization of the Com-business, including generous depreciation on any lines which have not been readily saleable, The most rigid economies have been put into force and it is estimated that our expenditure for the coming year will be Feduced by no less a sum than $50,000, This item is made up ehlely by management and staff retirements and 1 ductions, decreases in rent of pre" mises and a further reduction auditors' and directors' fees, Staff long term agreements hi ye been allowed to I leave pt of managers in our tropical branches which will receive Special consideration on individual merit, The board have been giving serious consideration to the possible closing and sale of several of our retail branches unless they can definitely be conducted without loss to the com: pany. Such an important step would of be taken without the fullest consideration but your board would ike feel that they had the support of the shareholders should any such necessity arise and for this reason would welcome their views, At the resent moment there are signs of a slight general improvement, partly ularly in the Malayan branches and your board are hopeful that with the economies already mentioned, the resent year's working should come ut on the right sid From our accumulated reserves we are in a position to wipe oft the Present debit In profit and loss account and to carry forward to next year's account a small credit of $41.52, 'This will enable our new general manager, Mr. R, T, Burch to start with a clean sheet and we still have Intact' $25,000 In "equalization " of dividend" account which your board will not hesitate to distribute shareholders as soon as the position warrants it, We are fortunate in having the sistance and ce-operation of a loyal Staff and the board would like to express their appreciation of "tha manner in which they have accepted without demur quite considerable cuts in salaries and allowances, 'A shareholder asked for a staloment of the working of the various branches during the year, The chair~ man replied that this could not be done this year this would be included in the balance sheet, The chairman explained that at one time the con. pany tried to sell the Tientsin branch fof the company, but could not find buyer, They had continued with this branch, and it now seemed to be paying its way.
The following resolutions were passed during the meetin, That the report and statement of gcsounts for the year ended, December Dissed: Propoted by Dr. W.
1885, os. presented, ted and presented be an
Text read from the printed page and cleaned; old type leaves the occasional error.