Another reason for the increased earnings is that as an indirect result of the Sino-Japanese hostilities there still' a shortage of berthing and storage facilities.
Abnormal conditions of trading have tended to increase the import of commodities like coal, cotton, rice and tobacco, Conditions in Hongkew are by no means back to normal but they are. better than they were and we hope the improvement will continue, 1 would like to take this opportunity of paying a tribute to the SMC. organizations which have been functioning in that area under a severe handicap. 'The Police and Fire Departments particularly, as usual, have been very 'Taxation is heavy, but the benefits which accrue from' the stable government of this International Settle ment are of inestimable value and it MI behoves concerns like ourselves to grudge the contribution to the cost' which we are called upon to make.
regret that the berthing of const and river steamers which at one time was one of our major activities, shows no signs of being resumed. Until the Yangtze is opened to trade and the area North of the Soochow Crock gets back to its former status there Is litre hope of vessels of these types making use of our wharves. pressed in dollars at their present depreciated value.
This is a phase through which all intrinsically "sound concerns must poss during the period of inflation that usually follows on the upheavals, of war and currency depreciation.
It" would appear, therefore, unwise and not in the best interests of the investor or the Company to make justments at this uncertain time. 1 would particularly deprecate any attempt to interfere with the capital this solid. old Company during the period of flux and I would warn Shareholders that although essels in the Balance Sheet may have become undervalued the earning power of the Company has not necessarily injereased in the same ratio. In times Tike these there exists considerable misconception in the minds of the public when endeavouring to compare earning power with break up values.
'After providing for the' interim dividend paid last August there is a. balance of $2,056.194.04 available for distribution.
'Your Directors are suggesting a. Gnal' dividend of $24 per share (making $24 for the year) which will absorb $1,440,000,
Text read from the printed page and cleaned; old type leaves the occasional error.