February 19, 1896.]
on
credit of the reserve fund, and over three lads of dollars being carried forward. The Direc- tors would be very well satisfied if such results are repeated in the future. You are aware that we have keen competition at some of our branches, and exchange profits are much smaller than they formerly were. Still, so long as we retain the goodwill of our friends in the Eastern trade, no matter what competition we may be subjected to, I have not the slightest doubt we will continue to give our shareholders hand- some returns on their investment, and I would fain hope that they will see the value of their property steadily increase. The Directors aim at uniformity of dividend, and our present one of £1 58. at exchange of 2/14 repre- sents a distribution of 18.73 per cent. the par value of the shares. In view of the competition above alluded to, it is, and I hope it will continue to be, the policy of the Bank to add to the reserve fund from half-year to half-year, as profits admit of such a course being pursued. Gold and silver deposits Combined show an increase upon last half year's totals of $23,521,633.60. This increase is mainly owing to a large amount temporarily held in current account in London. Otherwise, deposits would only show a very small increase upon what they were on the 10th of June last. The reduced rates we now pay for money will effect a considerable saving in future half-years. Like a good many other Banks, we have recently had more money at our disposal than we could profitably employ. The value of our sterling and rupee securities held in London continues to increase. A re-valuation at about present prices would yield a very large profit upon what they stand at in our books. We feel very com- fortable in thus having what may be called a second reserve fund to fall back upon in case of need. Our liquid assets represent a very large amount, bills receivable alone being over 84 millions of dollars. The year 1895 was a good one for the Eastern trade generally, and we look forward hopefully to 1896 being equally favourable. Gentlemen, before closing these remarks, I am happy to inform you that the directors have secured the good services of Mr. Thomas Jackson as Chief Manager for a further period of three years (applause),which doubtless will give great satisfaction to the shareholders. Before proposing the adoption of the report, I shall be glad to answer any questions which shareholders may wish to ask. (Applause).
CHINA OVERLAND TRADÉ REPORT.
ness.
world at large. Not only have our deposits increased, but in the items for loans, bills discounted and hills receivable, we
see clear evidence of a considerable expansion in the busi- I notice with pleasure so much of the assets invested in sterling and other readily convertible and high-class securities, and the more so that these investments have proved so lucrative that if realized to-day they would show a very handsome profit on their book values and thus virtually forming a second reserve. With regard to the distribution of profits, I was glad to hear from you the avowal just made of the Board's aim and policy, viz., the payment of fair dividends and the gradual addition to reserve each half-year; and so long as the Board adheres to this wise course I feel sure they may reckon with certainty on the approval and support of the shareholders. The strengthening of our position in view of actual and threatened further competition is now more necessary than ever. It is to be expected that with cheaper money and for other reasons trade connected with the Far East may show some considerable expansion, and there may thus be room for some new competition in the field; but when it is remembered what this Bank has done in the past for Eastern trade, that its methods and liberality in its dealings with its customers are so well known and so widely appreciated, and that its position is now so strong and so secure, I feel sure that it need not fear the result of any competition, and that it may be trusted in the future to uphold the premier position it has so well maintained in the past. With these remarks, Mr. Chairman, I have great pleasure in seconding the adop tion of the report and accounts.. (Applause).
Carried.
The CHAIRMAN-The next business is the re- election of Messrs. Sassoon, Gray, and Michaelsen as Directors, and the confirmation of Mr. R. Shewar as a member of the Board.
151
The SECRETARY read the notice convening the meeting.
I propose to take for granted that you have The CHAIRMAN said-Gentlemen, as is usual read the report, which has been for some days in your hands. In the report itself reference is made fully to the results and operations of the Company during last year, but
to
Mr. J. D. HUMPHREYS-Mr. Chairman and gentlemen, I beg to propose the re-election of Messrs. D. R. Sassoon, R. M. Gray, and St. C. Michaelsen, and the confirmation of the appoint- ment as Director of Mr. R. Shewan. In doing so, it is quite unnecessary to say anything in support of the motion, as the successful manage-isting tent of the Bank which through the past year has been so conducive not only to our interests but to the interests of the mercantile community at large, speaks for itself.
11
as
propose
go more into detail and in doing so shall refer to the various paragraphs in the report in the order in which they appear. Under the bead- ing "accounts for 1895 as compared with 1894 was $13,649 it is stated the gross revenue larger. The whole of this additional revenue profit on this branch of work is exceedingly was earned on the shipment of coal, but as the small the increase has brought with it but a trifling addition to the net profits. There modities of trade landed and stored at the has been an increase in most of the general com- wharves, but on the other hand a large falling additional earnings on the one hand have been of in sugar, yaru, and coast cargo, so that the
with the result that so far as cargo is concerned, counter-balanced by a decrease on the other,
as distinct from coal, the business of 1895 both
derived from it is practically the same as 1894. as regards the quantity handled and the revenue A feature of the year's working, worthy of note, coolies during the strike; these men not- was the satisfactory behaviour of the Company's withstanding intimidations remained at their work throughout and the Company was in employer of labour in the colony whose men the unique position of being the only large refused
strike. to join the
It will be within the recollection of some the important part the wharves played in breaking up the cargo boat strike of 1888, also how useful they
Add to this the utility were to shipping during the plague of 1894. the wharves during the recent strike, and it will be apparent that in the Company's operations the colony possesses combinations and a powerful organization to resist native
8 valuable
resource to shipping in times such to.
those referred T'he houses mentioned in the re- port on K.I.L. 211 adjoin those already ex- on that lot and are situated in Elgin Road; these houses are let at a rental which yields 18 per cent. on the cost of the buildings. With regard to repairs it will be noted that a very large sum was spent, principally on the wharves, during the year, and that a further outlay will have to be made during the present year in order to place them in an efficient state. When the construction of these wharves was first undertaken some ten years ago different species of wood were tried, and one, an Austra lian wood, very strongly recommended as being impervious to the teredo or sea worm, was used for the piles of No. 2 wharf, but they soon commenced to be eaten and rot until, when only eight years' old, they were almost con- sumed away. This has necessitated rebuild- ing the wharf, but with the expe- Mr. A. B. JOHNSON-Before separating Irience already gained the directors have sub- would ask you to join in giving a hearty vote stituted Manila Aranga, which is a well-tried of thanks to the Board of Directors, the Chief wood, and one that will last a great length of Manager, and Staff. I need not add anything time. Included under the heading of repairs to what has been so well expressed by Mr. Sharp
are also a number of necessary improvements, and Mr. Humphreys, but merely ask you to which might perhaps with propriety have been join in giving a hearty vote of thanks, which I debited to the first cost of the buildings, but do with much pleasure. (Applause.)
the Board has thought it best to add nothing to property account except what is spent entirely upon new works. The total expended on repairs (including improvements) since the formation of the Company, say ten years, and including the estimated $25,000 for this year, will amount to $111,000, and on this basis the directors have arrived at $10,000 per annum as the minimum amount which should be set aside out of each year's profits to meet the cost of future repairs; they deem this a wise provision, because it must always happen that in some years repairs will be exceedingly heavy, and at other times very small-the reason of this being that a wharf though slowly and gradually decaying year by year does not need extensive repairs until it has reached the point of collapse. After the present year, it is considered there will be no extraordinary repairs necessary to the wharves for some tune to come, and the charges under this heading will be confined to the ordinary maintenance of buildings, launches, lighters, &c. Meanwhile the accumulated
Mr. A. CoxoN-I beg to second Mr. Humphreys proposition.
Carried.
The CHAIRMAN-The next business is the re-election of auditors.
Mr. SACHSE-I beg to propose the re-election
of Messrs. Henderson and Bird as auditors.
Mr. C. PALMER seconded. Carried.
The CHAIRMAN-That is all the business be- fore us, gentlemen. I thank you for your attendance. The dividend warrants will be issued on Monday.
No questions were asked and the CHAIRMAN moved the adoption of the report and accounts. Mr. C. S. SHARP-For years past we have been accustomed to find material for pleasant reading in the Bank's report and accounts, and on this fresh occasion we find we are not disappointed in our expectation, and I feel sure I am only expressing the views of my fellow. shareholders in offering our hearty congratula. tions to the Board, the management, and staff generally for the highly satisfactory report we are now met to discuss. We can also, with confi- dence, unite with you in the hopes you have just expressed for the future. I think to share- holders and the public generally the best augury for the Bank's continued success and prosperity will be the gratifying announcement you have just made that we are to remain for at least a few years more under the safe guidance of our popular and far-seeing chief pilot, Mr. Jack- son, to whose skill and good management the reaults now before us are so largely due (Ap- plause). I feel I am only echoing the general desire when I say
Long may he remain at the helm." It is very encouraging to see that during the past six months the Bank has so well main- tained its prosperous career, and I feel sure that it can seldom if ever have fallen to the lot of any of your predecessors in the chair to make the announcement that the Bank's business lias been conducted almost devoid of losses. For it to be possible to say this of an institution doing a business of the magnitude of this Bank not only speaks volumes as to the sound and satisfactory state of trade here, but also speaks eloquently as to the careful lines on which the Bank's business is being conducted. That this is felt and appreciated by the public is shown by a glance at the figures in the accounts, which testify in an undeniable way to the high standing and confidence in which the Bank is held by its customers and the mercantile | Ho Fuk.
C4
The CHAIRMAN-M Jolinson and gentle- men, I thank you on behalf of my colleagues, the Directors, and Mr. Jackson and the staff generally for your kind vote of thanks,
This concluded the proceedings.
HONGKONG AND KOWLOON WHARF AND GODOWN 4o., LIMITED.
The ninth ordinary annual meeting of share- holders in the Hongkong and Kowloon Wharf and Godown Company, Limited. was held on the 17th February, at the offices,, Praya Central. Hon. J. J. Bell-Irving presided, and there were also present Hon. C. P. Chater, Messrs. A. Woolley, C. S. Sharp, D. R. Sassoon, J. Kramer, N. A. Siebs, M. D. Ezekiel, St. C. Michaelsen (Directors), E. Osborne (Secretary), R. C. Wilcox, J. Goosmann, G. Georg, G. U. Cox, J. R. Michael, T, I. Rose, W. H Gaskell, G. H. Potts, Captain Faher, Ho Tung, and
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sum