Tus Annual Meeting of the Cheng Rubber Estates Lid, was held yesterday at 93 Canton Road. Mr. A. J. Welch presided, supported by Messrs. W. B. O. Middleton and H. Kadoorie, Directors. Holders of 223,700 shares were represented at the meeting.
Tue chairman in his speech said:—Gentlemen, the Report and Accounts having been in your hands for the prescribed period I propose, with your permission, to follow the usual procedure and to take them as reed.
The Accounts now before you disclose a profit of Shai $85,718.27 as compared with a profit of $27,334.42 last year. The chief factor that contributed towards this very satisfactory result was an increase in the average net price realized for our Rubber of 2.46 pence per pound, otherwise the output of Rubber and the cost of production were much the same in the two years.
There is an increase this year of some Straits $2,000 in the cost of Superintendence. This is due to the fact that last year the Manager was on leave for part of the time and P: the Acting Manager was drawing a smaller salary. Tapping and Collecting is higher by St. $1,888.—owing to the increase in the rate of pay given to the Coolies and Duty shows an increase of St, $1040.—caused by the increase in the amount payable per pound to the Government.
Manufacture on the other hand shows a decrease of St. $620—which was brought about by the increased efficiency of the new Sheeting Battery on Cheng Estate, The sum of St. $3,735.—was spent on preparing 25 acres on Cheng Estate and 30 acres on Chempedak Estate for replanting. In order to keep a record of the total amount that will be spent on replanting this item appears in the Balance Sheet but it is proposed to write the whole sum off out of profits and similar expenditure in subsequent years will be treated in the same manner. the new Standard Production Assessment more correctly represents the real producing capacity of the property without overtopping the trees.
The increase in the export allowance brought about a slight' shortage of labour during the latter months of the year owing to the Coolies migrating to more centrally situated Estates than Chempedak which is off the beaten track. Health conditions, I am glad to state, were satisfactory throughout the year.
The gardens are reported to be clean and free from noxious growths.
Neither pests nor diseases gave any special trouble during the year although a certain amount of Brown Bast was in evidence.
All Buildings and Machinery were given the necessary upkeep and are in a satisfactory condition.
The standard of tapping is satisfactory and the Bark consumption is normal, Speaking generally both Estates may be said to be in a satisfactory state of upkeep.
In conclusion, Gentlemen, I would like to express our very best thanks to the Manager and his Subordinate Staff, to the Visiting Agent and to the Agents in Penang for the efficient manner in which they have administered the affairs of the Company during the year under review.
That is all I have to say, Gentlemen, and I will now formally propose that the Report and Accounts, as presented, be adopted and passed.
The following resolutions were assed.—
That the Directors Report and Statement of Accounts for the year ended June 30, 1937, as presented be adopted and passed.
Proposed by Mr. A. J. Welch and Seconded by Mr. W. B. O. Middleton.
That g Final dividend of 3 Chinese Dollar cents per share be paid.
Proposed by Mr. A, J. Welch and Seconded by Mr. W. B. O. Middleton.
That the election of Mr. A. J.
Welch as a Director of the Company be confirmed.
Proposed by Mr. H. Kadoorie and Seconded by Mr. W. B. O, Middleton.
That Mr. H. Kadoorie be re-elected a Director of the Company.
Proposed by Mr. W. A. Welch and Seconded by Mr.eWoo Chi-ming.
That Messrs. Lowe, Bingham and Matthews be re-elected Auditors of the Company.
Proposed by Mr, W. A, Welch and Seconded by Mr. Woo Chi-ming.
Text read from the printed page and cleaned; old type leaves the occasional error.