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THE HONGKONG WEEKLY PRESS AND
land at Kowloon, and he said then the apprecia- tion in the Queen's Road property fully com. pensated for the depreciation of the property in Kowloon. But it is a small matter.
The CHAIRMAN-I am quite sure he believed it. I do not say he was right. I will not go so far as that.
The CHAIRMAN-I do not admit it was an iniquitous price. I will give you some figures- Mr. WICKING-Can you speak for nine years ago?
The CHAIRMAN-I have figures ranging from twelve years ago.
Mr. WICKING-Mr. Humphreys was the paid servant of the company, and as general manager his business was to charge us the price he paid for it. There is nothing in the Articles which justified him in making that substantial profit for himself without our know- ledge and consent. (Applause.)
16 for $127,000 and selling remaining portion inland lot No. 19 for only $12,000 less, we made an exchange that is undoubtedly in the best interests of the company, especially when it is remembered that inland lot No. 16 is a property in a much superior position for a European business and has a much larger road frontage and contains double the area of re- Mr. WICKING-I do not think he could have maining portion inland lot No. 19. As regards believed the Kowloon property was worth this year, I am pleased to be able to state that $30,000. I think the true reason we are suffer. the business done in Hongkong and the returnsing the loss of $45,000 now should be known to from our various branches compare favourably the shareholders. We were charged a price with the corresponding period of 1897. If any which, to say the least of it, was iniquitous. shareholder has questions to ask in reference to the report and statement of accounts now before you, I shall be pleased to answer them. Mr. WICKING-I think it will not be out of place if I make one or two remarks with refer- ence to the accounts. I wish to cast no reflec. tion on the present managers, but with reference to the property on which we are sustaining loss of $45,000 I wish to say that it is not due to the depreciation of the property, but is due to the fact that the late Mr. J. D. Humphreys bought it at $113,000 and trausferred it to the Company at $159,000. Considering the fact that he charged the company $100,000 for the goodwill of the business I consider he was not justified when he bought the property on behalf of the company in charging us a profit of something like $45,000, and the loss we are sustaining on that property is due to his over- charging. I do not say for a moment that it reflects on the present partners, but I think that the shareholders ought to be made acquaint- ed with it. I did not suspect for an instant that the late Mr. J. D. Humphreys would have done such a thing. Two years ago he meu. tioned to us that the price of $30,000 for the Kowloon property was fully compensated for by the enhanced value of the Queen's Road property, and now we find that the Queen's Road property has also incurred another sub. stantial loss, and there has been nothing to justify the extortionate charge of $30,000 for the Kowloon property,. I did not think it was worth it ten or twelve years ago, much less at the present time after keeping it for eight or nine years. I am speaking now of what occur· red when the present partners were much younger men, some of them probably at school. I wish you clearly to understand that this is no reflection on the present managers; it happened nine years ago.
The CHAIRMAN-With reference to the Kowloon property, it is no use discussing that, because it was discussed at a previous meeting two or three years ago, and the general man- ager took the unusual course of obtaining a vote on the purchase and the shareholders then approved of it, so that is now finished. With reference to the remarks on the remaining portion of inland lot No. 19, I think you are rather late in the day. You have had nine years to find this all out. It is a pity you did pot bring it up before, when the general manager was alive.
Mr. WICKING-I never suspected it; I should not have suspected Mr. Humphreys would have done such a thing. My solicitor found it out, and should not have found it out unless these accounts had shown it.
The CHAIEMAN-That was the value put upon it at the time by Messrs. Bird and Palmer, one of the most reliable firms in Hongkong...
Mr. WICKING But the shareholders had no voice in the matter. They were the architects for the firm.
The CHAIRMAN-That is quite true, but they were acting under instructions from Messra. Wotton and Deacon. If the shareholders had anything to say about it they should have said
it at the time.
Mr. WICKING-But we did not suspect it. The CHAIRMAN-Nothing can come out in Hongkong of any magnitude which is not known to the colony, and I am quite sure this was well known at the time.
Mr. WICKING The matter is settled now, but I think the true explanation of why we Have sustained this loss should be known to the shareholders.
The CHAIRMAN-I think I understood you to say the loss was not due to depreciation of the Queen's Road property. Is that so?
The CHAIRMAN-He was perfectly within his rights. There is a clause--
Mr. WICKING-I know there is a clause, but I do not think it is an honourable clause.
The CHAIRMAN-He was acting regularly in the matter.
Mr. WICKING-I would not call it regular; this has to come out of my pocket.
The CHAIRMAN-You are quite wrong in your statement that the Queen's Road property has not depreciated. I will give you a few figures
Mr. WICKING-That is immaterial. We have made a loss of $45,000 which would not have occurred if the property had been charged to us at the price he paid for it. He was a paid servant, I say, of the company. He charged $100,000 for the good-will, and he had no right to charge us $45,000 for buying property on our behalf. I think he should have acted as ninety-nine honourable men in the hundred would do, and transferred the property, as I would have done, at the price he paid for it.
The CHAIRMAN-As I said before, I think it is rather late in the day to make these remarks. Mr. WICKING-We have only just discovered
Who could have suspected it?
it.
The CHAIRMAN--You have had plenty of op- portunities to say this before. These remarks I think a little ungentlemanly and unmanly after the general manager's death. I do not think you would have made these remarks when Mr. Humphreys was alive.
Mr. WICKING-If he had been alive, I would bare taken other proceedings. I would have taken out an injunction with other shareholders, but I do not think it is worth while dis. cussing it. I only think an explanation is due to the shareholders.
The CHAIRMAN-Any other questions to ask? No other questions being asked, the Chair- man moved the adoption of the report and accounts.
Mr. W. PARLANE seconded. Carried unanimously.
Mr. WICKING proposed the re-election of Mr. Bird as auditor for the ensuing year.
Mr. HouGH seconded.
Carried.
The CHAIRMAN-Monday being a Bank Holiday, dividend warrants will not be ready until Tuesday.
Mr. WICKING-I should like to propose a vote of thanks to the general managers for the extremely satisfactory report they are able to present to us. I think it is exceedingly en couraging that the new management have brought such satisfactory results before us, and I hope they will continue to conduct the affairs of the company with the same prosperity. It is in every respect to your great credit as young people taking charge of such a vast business to bring about such extremely satis- factory results as I have never seen before.
| June 4, 1898. not have succeeded in attaining the results we have if we had not been backed up by a very efficient staff. I think the staff will fully appreciate your remarks. (Applause.).
Mr. WICKING-I do not think it will be out of place if I have one more word, and that is, I particularly wish you, Mr. Henry Humphreys, not to feel that my remarks reflect on the pre- sent managers of the company. I simply made the remarks because I felt it should be known to the shareholders how this loss occurred.
The CHAIRMAN intimated that was, all the business before the meeting and thanked the shareholders for their attendance.
THE RAUB AUSTRALIAN GOLD MINING CO., LIMITED. The Directors in their annual report say "The Directors have the pleasure to present herewith the balance sheet and profit and loss ac- count for the year ending 31st March, 1898, the Singapore accounts incorporated therein having closed on 28th February. Viewed in every way, the results of the past year's working have been highly satisfactory, and a matter for congratu- lation.
L
As referred to in last annual report, 40 head of stampers have been purchased from Messrs. Thompson & Co., of Castlemaine, Vic- toria, and are now in process of erection. On completion of this addition to the présent bat- tery, there should be a material addition to the future output of gold.
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Good progress has been made with the pre- parations for the electrical plant, and which will undoubtedly assist the operations at the mine.
"A profit of £4,873 10s. 10d. was made on the sale of 10,000 unissued shares (as referred to in last balance sheet), and this amount now stands to the credit of Reserve Account.
A particularly full and minute report has been received from the Acting Mining Manager, of the work done during the past twelve months. The Directors have accordingly decided to have same printed in pamphlet form, and forwarded to the shareholders, so that each can learn of the actual progress that has, and is, taking place."
The Acting Manager in his annual report
says:----
•
In handing you my report for the past year, it affords me pleasure to congratulate the shareholders on the completion of the most successful year's work we have yet had, on the steady development of the Company's mines, on the increased ore reserves, which I now estimate to be about 216,471 tons, and also that the Company has now developed into a dividend- paying concern, with every prospect of regular dividends in the future. During the past year, the Company has paid three dividends of 1/- each, equal to 15 per cen, on the nominal capital of the Company. This has been done with 20 head of stamps, and when the ad- ditional 40 head of stamps, now on the way to Singapore, are erected, making 60 head at work, and increasing our crushing power by 200 per cent., with the above huge reserve of payable ore to work on, I think the Company can be safely congratulated on their future prospects, more especially as our ore reserves are being increased daily.
During the year we have crushed 13,913 tons, yielding 11,583 ozs. 9 dwts. smelted gold, or an average of 16 dwts. 15 grs. per ton, being an increase of 3,724 ozs. of gold, or 2 dwts. 21 grs, per ton better than our previous year's yield. The quantity of ore crushed by the Company to date is 58,267 tons of ore for 40,797 ozs. 17 dwts., equal to 1 tons of smelted gold
"Our Battery has been fully employed during the year, and we cannot crush a ton more with our present mill than we have done, so that the prospects for the ensuing year, until our new mill is erected, entirely depend on the quality of the ore mined, which I think ought to be quite up to our late average. Knowing this, the The CHAIRMAN-We are very much ob- object that has been kept in view is the develop- liged to you for your remarks, Mr. Wick-ment of the Company's property in anticipation ing. Of course you know we have a great of increased crushing power and profit to the interest in the company ourselves. We are shareholders. It is with this object that the very large shareholders, and of course we main drives at Bukit Koman are being extended are bound to do our best for it, but at the same and the Bukit Jellis Shaft sunk. Our future
Mr. WICKING-Mr. Humphreys told us two jears ago—we complained of the value of the time I think it only right to say that we should I prospects to a great extent depend on the policy