Values of listed investments have been adjusted to prices quoted on the Shanghat Stock Exchange December 31, 1939, andi unlisted shares have, been included at the various companies" net balance sheet values oF ess, This required a net reduction In book value of investments amounting to $252447.53. 'There was a gain from exchange adjustments of $1,197, 67340 from which the investment write down of $352,447.59 has been deducted leaving a net gain from ad-Justments of '$845,225.87. Of this, amount $500,000. has' been transferred to a reserve for fluctuation of investments or exchange.
All_uncollectible accounts aggregate ing '$114,044.70 have been entirely itten "off against the reserves already provided, but due to the continued warfare in China, your directors deem it prudent t6 provide an additional $89,044.70 to the reserve for overdue accounts, providing a round sum of $200,000 which is considered ample for' all. contingencies. {$100,000 has been reserved for bonuses Atter making all these provision and taking up the defeat of $364,240.00 brought forward from 1938," your directors still had a surplus of; $503,190.97 with which to deal. include the China Trade Act tax-saving dividend, After these pay-
will Be left to carry forward 0 1940, Tu conclusion 1 wish to pay special tribute fo-the spirit and loyalty of the staff and gratefully to acknowledge the support received during the year from our insureds, our agents, and the Insurance companies we have the honour to represent,
Text read from the printed page and cleaned; old type leaves the occasional error.