"with, regard to the unsettled con-_ ditions in North China, T am glad to be able to inform you that, through the courtesy of the British Embassy, we "have received the following message: Mine all staff family safe well Cowan," said-Mr. W. R. Me-Bain, chairman, at the annual meeting of shareholders of the Shanghai Exploration & Development Ca, Ltd, on Aug. 5. The meeting was held a the office of the general agents, No. 1 The Bund, at 4 pin, At the beginning of the meeting, those present rose asa token of respect 0 the-late Mr. A. D. Bell. wish to take this opportunity of recording and expressing our apprecia. tion of the valuable services rendered by Mr. Bell during the time he was a director of this company," said Mr The chairman's report was You will nolo from the accounts; [before you that the balance at credit! fof troft and loss account, -after king allowance for. depreciation fand including the balance brought forward from last year, amounts. to $189,225.84, It is proposed to transfer therefrom $175,000 to the credit of general reserve and carry forward [the balance of $8,825.84.
T wish to draw your attention to the foot-note signed by the directors, Jand to the auditors' certificate. Your [directors regret that they are of the opinion, which is endorsed by the auditors, that—owing the conditions prevailing in Indo-IChina where, due to circumstances beyond our' control, our mining, operations have now ceased—the eneral reserve should be increased to $500,000, which they consider would be sufficient to cover all losses. [definite and contingent, on that investment. In order to provide the necessary sum of $500,000 it is. proposed to transfer to. this gen Teserve $160,000 standing to the credit of Dewatering reserve and $25,000 of the amount standing to the credit of reserve against "depreciation of investments." These specific reserves fare not required for the purposes for which they were provided. 1. wilt later inform you of the unexpected aimculties we have experienced in Indo-China.
"Continued Smoothly" ment in North China, in retrospect Turning fo, our, principal invest-ion of the year under review, I'am salad to inform you that work at the mines has continued "smoothly {throughout the year. The sinking of our main shaft to a lower level and all necessary reinforced concrete [work have been completed. Necessary pump rooms have been installed at that level; safety doors, galleries, leross-cuts, rises and ventilation to the upper levels have been estabished, "We are now in a position at Jany time to obtain a large production from this level.
Owing to the dimicuity of obtaining JsuMeient transport, production again had to be curtailed during the year Jand at one period in the autumn due to political disturbances and military movements in the Suiyuan-Chathar area, transportation was completely suspended. As a result of this, our stock on Dee. 31, 1936, amounted to 273,301 tons, as eomparca with a stock of [247,978 tons the previous year. [Sales for the year amounted }262,487 tons, as compared with 206,553 tons the previous year.
Although our sales chow an injerease, our profit was considerably ess. his, is accounted for, by the year 1935 having had "the advantage Jof stocks produced in 1934 and brought forward at a lower cost, that year the mine produced 450,120 tons, "being its record production, which naturally means a lower production cast. Further, I regret say the production tax has been injereased by 13 cents a ton, which is Jagain reflected in this year's sales,
Text read from the printed page and cleaned; old type leaves the occasional error.