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THE HONGKONG WEEKLY PRESS AND
After some discussion respecting the position of preference shareholders,
Mr. GEORG seconded the resolution. Mr. WARRES SMITH said the preference. shareholders looked at it in this way. At present the preference shares were equal in value to one-fourth of the ordinary shares, and if new shares were issued they would be reduced to one-sixth.
[April 22, 1897. NORTH CHINA INSURANCE CO.,
"LIMITED:
The following is the report for presentation to the fifth ordinary general meeting of share- holders to be held at the offices of the Company, Shanghai, on Tuesday, 27th April :-
The directors beg to lay before the share. holders the annexed duly andited statement of accounts to 31st December; 1896.
1895. In accordance with the resolution, passed at the last ordinary general meeting, the accounts of this year have now been closed. by the transfer of Tls. 22,628.45 to liability account; Tls. 132,441.34 having been dis tributed in payment of a dividend. of 10 per cent, upon the paid-up capital, and a bonus of 10 per cent, on contributory premiums.
1896-It is disappointing to have to report that the business of the past year has proved unfavourable and that the result precludes the payment of a bonus to contributors.
The CHAIRMAN, after a few further remarks, was about to put the resolution, when Mr. BAIN proposed and Captain TILLETT seconded the adjournment of the meeting until Saturday in in order to give the shareholders a better opportunity for considering the resolution.
Mr. PARLANE proposed and Mr. JOSEPH
The balance of the working account amounted. seconded an amendment that the meeting be
to Tls. 376,518.51 on the 31st December Since continued,
that date further payments amounting to Tls. The amendment was then put and.carried, Mr. Cox asked whether the Board had taken 150,225.00 have been made, and it is necessary:
to set aside Tls. 136,293.51 to provide for out legal advice as to the reconstruction of the standing claims and unexpired risks. The Company. Why not save expense by passing estimated profit is therefore Tis. 90,000, and a special, resolution reducing the capital and
it is recommended that & dividend of 10 per making a call equivalent to the amount of the reduction, as was done the other day by the cent. on the paid-up capital be paid. New Balmoral Company:
refer to the returns for November you will find that the return of gold in that month was $23,000. That certainly was a falling off The CHAIRMAN proposed "That the Com as compared with the September returns, but pany be reconstructed and that the new it was a very favourable return taking, the Company take over the assets of the old Com average throughout the year, and if the in-pany, including the preference shares of $30,000, formation in Mr. Blamey's letter had been per- and that new scrip of the fand Yalue of $6 be haps a little more defined in all probability we issued to every shareholder, $4 being paid up should have reconsidered the matter of paying and $2 to be paid up at such times as the Direc a dividend. Certainly on the receipt of this tors might find it advisable." letter we discussed the matter, but seeing that we were getting $23,000 as the return from the mine we thought the falling off was not very serious. There is another matter which I would like to refer to, and that is the great expense incurred in the construction of the calcining plant. I do not think the expense of erecting calcining plant is very great; at all events the expense would be limited to a month; nor do I think the cost of calcining is expensive if we except the cost of firing; but this calcin- ing process has been going on for at least a year and the large expense only took place about the middle of the year. The ex- penditure has increased steadily from January to September and October; then there is a decrease in November. and December, so that the increase cannot be entirely accounted for by the extra amount of labour required for the calcining and cyanide processes. I think that with the economies Mr. Blamey proposes to effect in reducing our monthly expenses to somewhere in the neighbourhood of $12,000 we may safely look to the future with great con- fidence. $12,000 is a very large reduction, but from the information I have got from Mr Blamey I am very sanguine that this can be effected without in any way affecting the efficiency and the output of the mine. (Ap.. plause.) If the mine continues to yield any thing like what it did in the early part of the year we shall certainly be able to pay our way, and I think the developments that have now taken place may well lead us to hope that in the near future we shall be able to find the gold for which, we have been looking such a long, time. Several times we have been in great straits at Punjom, and just in the nick of time we have come across a chute of rich ore which has tided us over our difficulties. hope we shall be able to do better than this and that we shall find a defined lode that will be lasting, and profitable, and then I need hardly say our troubles will be over.
I
Ne further questions were asked at this point and the CHAIRMAN said-I now propose that we proceed to the matter for which we have met together, that is, to adopt a scheme to increase our, capital. As you are aware, the funds of the Company are now at a very low ebb and to avoid the possibility of disaster I think it will be well to have a little more money in hand. I have my own ideas with regard to what would be the most advantageous method of getting the money, but I shall be very glad to hear what shareholders have to say in the matter. There is no doubt it will be a matter of considerable difficulty to some of the shareholders, but as it is imperative that we should get money, I think we should put our heads together to frame a scheme which will be least burdensome to shareholders and at the same time most effective in attaining the object we have in view.
Captain. TILLETT suggested that it would be better for the Board to formulate a scheme.
The CHAIRMAN said that whatever scheme was adopted it had to go before an extraordinary meeting. The scheme, he suggested at the last meeting was that of raising the capital by the issue of 20,000 shares of the same value as the present shares, $4 each. That would be a simple way of getting money, but he was afraid it would not succeed. The scheme he preferred was to reconstruct the Company and to issue 60,000 shares of the value of $6 each, giving to the shareholders new scrip of the value of $4 and leaving $2 to be called up at such time as the Directors thought necessary. Of course $1 would have to be called up on allot- ment. With this sum the preference share- holders conld be paid off and there would be enough money in hand to carry on the business of the Company. There would be no trouble in thus raising the money, as the shares must either be taken up or forfeited. The cost of reconstruction, he thought, would not exceed $500.
:
Mr. GEORG said Mr. Cox. was incorrect in describing the new capital of the New Bal- moral Company as a call; preference shares
were issued,"
į
F
The CHAIRMAN said legal advice would be taken before the extraordinary meeting was held and if the suggestion made by Mr, Cox, could be carried into effect it would be: worth considering at the next meeting. The Chairman added that he would tack on to his motion the words " or adopt such other scheme for increasing the capital as may be thought fit by the shareholders."
Captain TILLETT asked if the Cómpany would have to be wound-up.
The CHAIRMAN said yes, but if the idea of Mr Cox could be adopted reconstruction would be annecessary
Mr. HouGH then proposed "That this meet- ing supports the scheme of the Chairman so far as raising additional capital is con cerned, leaving it in the bands of the present Board of Directors to formulate a scheme in detail and present it to the shareholders at the extraordinary general meeting."
•
The CHAIRMAN-I may as well mention that as I am the only member of the Board in favour of the reconstruction, I think it will be
better if you proceed on the lines proposed by Mr. Lewis, that is, the issue of 20,000 new shares of the same value as the shares now in existence. There is no use in leaving the matter of reconstruction to another meeting, because I am the only member of the Board who is in favour of reconstruction, and as this would necessitate my leaving the Board-
**F
(No")-I think it is as well I should inform you now. I certainly feel convinced that the Company will never get the money by the issue of ordinary shares at. $4.
Mr. WARRES SMITH thought the Company did not want $120,000), the amount which would be received under the scheme proposed. Hə proposed the issue of 60,000 shares of $1 each, to be called the second preference shares.
The CHAIRMAN said he thought the issue of another lot of preference shares would not be taken up, because the present preference share- holders had the first lien on the property and if the Company were wound up there would be very little for the second preference share. holders.
Mr. WARRES SMITH said if the preference shares were not taken up then the ordinary shares would never be taken up.
!
The CHAIRMAN then took the sense of the
-1
Mr. Herbert S. Morris retired on the 31st December last, and the directors take this op- portunity to record their appreciation of his zeal in the service of the Company for a period of nearly thirty years. Mr. J. Kennard Davis has been appointed as his successor as agent in London.
DIRECTORS..
Mr. C. J. Holliday having resigned upon his departure from Shanghai, Mr. Cecil Holliday has, upon the invitation of the directors, re joined the Board. The directors retire in ac- cordance with the regulations of the Company, but, being eligible, offer themselves for re-elec tion.
AUDITORS. -
The accounts have been audited by Mr. White and Mr. Wrightson, and their term of office having expired, they again tender their services to the shareholders,
By order of the Court of Directors.
ALEX. Ross, Secretary. Shanghai, 13th April, 1897.
BALANCE SHEET, 31ST DECEMBER, 1836. Dr. To capital accopnt:
Taels.
848,058.54
250,000.00
5,000 shares at £26=£125,000.0.8. @
2/11
To reserve fund.......
To working account, 1895:--
Tacis.
Balance on 31st Dec., 1895... 480,203.10 ! Deduct
Tis.
1st dividend, being 10 per cent. per annum op paid-up capital, declared 29th April,1896...82,474.23 2nd dividend, being 10 per cent on shareholders' con- tributions, declar ed 29th April, 1896
Less
.49,967.11
132,441.34
Amount brought forward from!
below
Amount transferred to liabi-
lity account
Tia. 327,761.76
-304,133.31
Tls. 22,828.45
22,628.46
$376,518.51
21,279.75 251147
Amount brought forward from below... To working account, 1898- To liability account for 1895 and previous
years To dividends ineollected.
Taels 1,496,108.27
meeting and the scheme for reconstruction was [On the opposite side assets are shown of equivalent value.] carried,
Mr. WARRES SMITH then proposed his re- solution, which was seconded by Mr. HART Buck
This resolution was put to the meeting and lost. The proceedings then terminated,
W
ORKING ACCOUNT, 1895.
Dr.
To interest To balance carried forward,
Tseli.
∙194.36 305,133.31
Taals 805,327.6.1