For a considerable time past we have had the Singapore tramway system under observation, and Mr. McColl made an exhaustive report on it in 1918. The undertaking, which was far from prosperous in 1918, continued to suffer for want of funds necessary to bring it into an efficient condition, and early in 1922 we were approached with a view to our interesting ourselves in its rehabilitation. Mr. McColl then visited Singapore on his way Home, in order to bring his. information up to date, and as the result of negotiations with the Municipal Commissioners of Singapore for a new concession, and with the company, and subsequently with the receiver for the debenture-holders in regard to financial and administrative matters, the point indicated in the directors' report has been reached. We are assisting the receiver in carrying on the business, and it is satisfactory. that the average weekly takings of the tramways are now considerably more than double what they were at their lowest point. In view of the dilapidated state of the tramway track, and the cost of renewing it, it is intended that the traffic business in Singapore should be re-established under railless traction, on terms similar to those which I have indicated as forming part of our railless concession. in Shanghai. Mr. McColl, who has made an exhaustive study of local conditions, is of opinion that railless traction is specially applicable to Singapore conditions, and that a large and profitable business can rapidly be built up. An agreement with the Commissioners for the supply of power involved the company in very heavy losses, and it is one of the terms of the reorganization that fresh arrangements in regard to the supply of power are to be made. The financial conditions of the reorganization provide for the conversion of the existing debentures of the Singapore company into shares of a new company, and for.the claims of the unsecured creditors and shareholders satisfied in a similar way. This will permit of the new capital, after payment of the cost of the reorganization and the receiver's indebtedness, being applied entirely towards the re-equipment of the undertaking, while the existing assets, which are of considerable value quite apart from the concession, will form a margin of security. The administration of the new-company, both in this country and in Singapore, will be in the hands of our company, and we are to receive, in return for financial and administrative assistance, a half-share of the profits. It is believed that, by guaranteeing the new company's de-venture stock and undertaking the management, this company's credit, and its experience in traction business can, without employing any of its cash resources, be turned to profitable account, to the mutual advantage of the creditors and shareholders of the Singapore company and of ourselves.
Before concluding, I should like to express the Board's appreciation of the services which have been rendered by the local board, the general manager, the deputy general manager, and the staff. It is upon their capacity for steady, reliable work, and for overcoming the difficulties which are inseparable from any business of importance, that the success of our undertaking depends, and we feal that our thanks are due to them for the satisfactory way in which they have discharged their duties.
The formal resolutions were then adopted and the proceedings terminated with a vote of thanks to the directors, secretary, and local management for the successful results off the past year, which was proposed by Mr. Mackintosh and seconded by Mr. W. Sichel.
Text read from the printed page and cleaned; old type leaves the occasional error.