152
THE HONGKONG WEEKLY PRESS AND
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Mr. E. GORG-Mr. Chairman, I beg to propose tho re-election of the retiring directors, Messrs. G. B. Dodwell and St. C. Michaelsen.
Mr. J. R. MICHAEL seconded. Carried.
Mr. J. GOOSMANN proposed the re-election of Messrs. T. I. Rose and F Henderson as auditors.
Mr. WILCOx seconded. Carried.
The CHAIRMAN-That concludes the business of the meeting. The dividend warrants will be posted this afternoon.
[February 19, 1896.
B
the accounts now presented, and the Directors re- commend them for re-election.
J. J. BELL IRVING, Chairinan. Hongkong, 12th February, 1953.
Balance Sheet, 31st December, 1895,
Dr.
ASSETS. To value of land and build- inga at Kowloon as per last account
To siuce expended on now
houses......
$1,207,865.52
To value of 4 wharves at Kowloon
To value of rolling steek at Kowlood
The following is the report presented to the To value of launches Kowloon, monghong, meeting-
The Directors have now to submit to shareholders their report with a statement of accounts for the year ended 31st December, 1895.
ACCOUNTS.
The gross revenue derived from wharfage, landing, &c., amounted in 195 to $239,592.02 as against $275,942.20 the previous year, showing an increase of $13,649.82.
The net profit at credit of working ac- count, after paying all interest | (which commencing with the year under review it is proposed to debit entirely to this ac count) and writing off $10,00). for repairs to the property, and ingliding $9,424,02 brought forward, is ...
$10,000 transferred from each year's working should by the time the wharves again require renewing be sufficient, if no unforeseen cireum, stances arise, to meet the expenditure. The land at West Poiut, hitherto idle, is now being utilised by the erection of four strongly built double-storeyed godowns specially adapted for the storage of flour, rice, and such cargo, but as they are not to be completed till the 31st December next, the present year's working will not be affected by them. The central posi- tion of these godowns, adjoining as they do our own wharf and that of the China Merchants. | justifies the directors in anticipating satisfactory results from their working, and if suitable terms can be arranged a portion of them will be leased. The new lighters referred to in the report have been found necessary owing to the con- tinued growth of our transhipment business afloat, which can be more satisfactorily con- ducted, and with more profit, by having our own boats rather than employing bative craft. The paragraph in the report dealing with the profit and loss account. suspense may need some amplification. It will be remembered that about six years ago the Company reclaimed the foreshore opposite our West Point pro- perty and by so doing added 100.000 feet of land to its assets, portions of which were sold, the remainder being retained by the Company and now, standing in the books at $4 a foot, the difference between the cost of reclaiming this land and its actual value after reclamation be- ing roughly $350,000. This amount was passed to what has for some years been called profit and loss. suspense, and it is with the credit balance remaining that the directors now pro- pose to deal, and what they suggest is, to eliminate the account by transferring the balance to a new account 14 be called “depreci: tion and repairs.” It is undesir all tlat old profit and lots suspense should remain, and there seen only two practical ways of getting rid of it-one. by writing down the Company's assets, and the other in the way proposed, and as these assets have already been written down out of this same account. it is proposed to take the latter course. By wiping out the present profit and loss suspense account it will afford the Company an opportunity next year of presenting its
and working and profit
loss Becounts in a new, clearer, and more correct form than has been possible so long as this sus pense account remained in the book. Whilst upon this subject it may interest shareholders | 2:1. to know that the land at Kowloon, including the cost of the substantial buildings thereon, stands in the Company's books at $1.87 per fout, and those of you who understand the value of Kow- loon property will realise what a low figure this
is.
Similarly wharves, launches, lighters are valued at a very reduced figure, and as regards the West Point property. which stands amongst the Company's assets at 8 a foot, adjoining land has been sold at a higher price. It may naturally be asked, why if the earnings of 1895 are approximately the same as those of 1894 and larger than those of previous years, the dividend should be less. The answer is that last year there was an exceptional profit on the sale of lighters and in previous years part of the interest was debited to profit and loss suspense, -whereas this year the whole of it has been paid out of working, as the directors now deem it the more prudent course to pursue. Before moving the adoption of the report and accounts, I shall be pleased to answer any question from any shareholder.
No questions were asked, and the CHAIRMAN moved the adoption of the report and accounts. Ho TUNG-I have much pleasure in second- ing the adoption of the report and accounts, and in doing so I think I am expressing the opinion of the shareholders that the directors are to be congratulated on the con- servative policy they have adopted in conduct- ing the business of the Company in the past. (Applause.)
Carried.
Mr. GASKELL I have much pleasure in proposing the appointment of Messrs A. Ross, A. Woolley, M. D. Ezekiel, and C. 8. Sharp as directors.
Mr. Ho Foox seconded. Carried
from which have to be deducted, Interim dividend Directors' fees... Auditors' fees
:
and Heron
To value of 8 lighters as per last
account
5,724.49
1,213,590.01 100,000.00 22,000.00
12,325.00
:
21,018.63
6,300.00 To since expended on now lighters. 14,858.63
To value of West Point Reclama-
tion (14,435 square feet at $4) 177,740.00 To West Point godowa $9,399.51 To since expended on
new godowns.......... 1.052.00'
To value of West Point wharf To value of sheers.
10,451.51
188,191.51 15,000.60 500.00
To since expended on additional
plant, &c
To value of furniture and plant
as per last account
$7,082.69
1,180.28
8,262.97
To Sui Lock Hing
15,000,00
To sundry debtors
46,130.00
To Hongkong Bank, No. 2 account
541.50.
31,500.00
Tu cash in hand...
$69,816.59
$25,000.. 6,000 +500
leaving available for appropriation. ...$38,316.59 | Front this it is proposed to pay a final dividend of $1.25 per share, which with the $125 paid in July make $2.50 or 5 per cent for the year, and to carry forward the balance of $13,31659 to next account.
The Company's business has continued to progress in all its branches with one exception the landing and storage of sugar. This item which-in former years figured largely in the earnings has practically disappeared owing to the sugar now being taken direct to the refinery godowns. I
The Company's coolies did not join the strike in the early part of the year and business was carried on uninterruptedly throughout-thus for a second time affording practical illustration of the value of the waryes to the shipping interests when coping with native combinations.
BUILDINGS.
The Company has built, and leased at a remunera- tive rental, six additional Chinese houses on K, I. L.
WHARVES.
Very extensive repairs have been found necessary to all the wharves and a further considerable outlay will have to be made during the current year in order to place them in an efficient state.
WEST POINT.
Contracts have been entered into for the erection of four godowns to be completed at the end of the present year and the Directors anticipate that this property will in future yield a satisfactory return on the value at which it stands in the Company's books.
LIGHTERS.
Two 300 ton decked lighters and five open cargo boats are being built for the Conipany, the decked lighters replacing those sold in 1894.
PROFIT AND LOSS ACCOUNT (SUSPENSE), The balance at credit of profit and loss, suspense, $102,989.72, has been transferred to a new account called "depreciation and repairs account" and with the approval of shareholders the Directors propose to transfer to it from each year's profits a sum of not less than $10,000, which from past experience they think advisable to provide against the average annual expenditure for depreciation and repairs, and to debit the account with the actual sum expended. The repairs for 1896 are estimated at $25,000, after which no exceptional outlay will be necessary for
some time to cuine.
DIRECTORS.,
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the Chairmanship devolved upon the Ho 1. J. . The Hon. J J. Keswick having left the colony
Bell Irving in accordance with . 13 of association.
Mr. C. J. Holliday, Mr. H. H. Joseph, Mr. J. S. Moses, and Mr. A G. Wood having resigned npon leaving the colony their places have been taken respectively by Mr. A. Boss, Mr. A. Woolley, Mr. M. D. Ezekiel, and Mr. C. S. Sharp and these appointments require confirmation.
Messrs. G. B. Dodwell and St C. Michaelsen retire in rotation according to the articles of association, but being eligible offer themselves for re-election
AUDITORS.
Messrs. T. I. Rose and F. Henderson have audited
To value of stationery on hand To value of coal on hand
To value of timber, iron, and stores on hand
for repairing wharves, &c.
Cr.
* LIABILITIES.
By capital (20,000 shares at $50 fully paid-
up) By Hongkong and Shanghai
Banking Corporation
By debentures outstanding By sundry creditors
$ 7,677,20 500,000.00 60,865,18
By depreciation and repairs account By dividend account (unclaimed balance) By working account.
Dr.
571.24
1,051.94
251.57
19,422.96
$1,663,887,93
$ C
1,000,000.00
568,542.38 81,487.16
541.80
13,316.59
$1,663,887.93
PROFIT AND Loss Account (ScSPENSE.) $ To depreciation, and repairs account
Cr. By balance from 1834.
Dr.
*Working Account, To wages of permanent staff To Crown rent
To taxes
To charges (office and telephone rent, station- ery and priating, collecting commission, sundries, &c.)
To legal expenses To fire insurance
To claims on cargo
......
102,989.72
102,989,72
$ c
58,740.14
7,627.42
7,502.74
7,205.83
15.00
1,498.13 1,853.49
To expenses on cargo and coal, coolie hire, &o. 102,743,58 To expenses of lighters To expenses of launches To interest
181.50
5,356.16
26,508.53
To depreciation and repairs account To interim dividend
10,000.00
25,000.00
To final dividend
25,000.00
6,000.00
500.00
To directors' fees To auditors' fees....
To accounts 1893-189-..
To balance to be carried to new account
Cr.
By balanos from 1894 By bonus for 1894, fire insurance account...;.. By wharfage, storing, landing, &c
9.77 13,316.59
$299,056/88
8 a 9,424.02
151.84 289,481.02
$299,056.88
DEPRECIATION AND REPAIRS. ACCOUNT. To repairs, renewals, and improvements during
1895 To balance
Cr.
By transfer from profit and loss account, sus-
pense By transfer from working account.
C
31,502.26 81,487.46
$112,989.72
ช
102,989.72|
10,000.00
$112,989.72