548
{AUDITOR.
The accounts have been audited by Mr. A. O'D. Gourdiu.
R. CHATTERTON WILCOX, Chairman.
BALANCE SHEET FOR THE Year ending 80th
To property
JUNE, 1898.
ARSETE.
Cost of estate and buildinga....
0.
$
182,255.85
THE HONGKONG WEEKLY PRESS AND
spects for their continnance, we had, ere half through the year, to encounter abnormal prices for the raw article which failed to meet with reciprocal improvement or permanency in the yarn market and gradually brought about a period of absolute loss. In August the position of our working account was, that the profit made had disappeared and that after nine months' work with a stock of yarn of 4,000 bales taken at the then depreciated market price we To Hongkong and S'hai Bank current account 52,883.54 came out just on the right side. From August To Union Bank of Sydney
9,249.90 to October, however, owing to continued fur. To cash
57.08ther decline a debit was created, and deducting 1,302.28 therefrom our commission as general managers 455.59 we have a final debit balance of some Tls. 4,704.64
17,000. This adverse result I may mention 9,470.90 would have been different had the capital been 12,950.70 all paid up, as only Tls. 15,000 of interest 11,069.64 pertains to working account, Tls. 10,000 being 3,639.12 interest on advances in lieu of capital and 681.78 the remaining Tls. 6,000 being for interest 3.826.88 for money sunk in naproductive plant and 3.823.97 buildings which might have been placed to these 3,130.43
To furniture
To live stock (horses)
To machinery, plant and tools
To mine stores
To Great Eastern main shaft
To Caledonian main shaft
To Zulu main shaft
To prospecting shaft..
To Old Great Eastern drive.
To Rise and shire shaft
To rank of England shaft To dam
To suspense, deposit on account new battery Tohalanoe.
By capital
LIABILITIES.
18,200 shares at 35 fully paid... 91,000.00 51,800 shares at ≥2.50 half paid 129,500.00 Fret call of $1 on 31,650 shares 51,650.00
Authorized capital $350,000
By accounts payable
Due for stores ordered
Due for wages ******
$1,021.65 4,028.59
Due for charges....
781.00
Due for directors' and anditor's fee
600.00
WORKING ACCOUNT.
Dr.
To obarges
To preliminary expenses
To legal expeuse"
To travelling expenses
months
To printing and stationery
fio telegrams
To remuneration to General Agents for twelve
To wages and salaries
To driving Great Eastern shaft
'To Crown rent
To raising stone
To driving Caledonian shaft
905.89
2,189.78
0.
272,160.00
accounts instead of to interest account, in which 25,893.77 it is included. Such an entry would have been legitimate, but the item not having been so 278,581.24 treated we did not care to make the transfer simply to reduce the loss on working at the $
expense of a permanent addition to the cost of plant and buildings. On the other band we have not written anything off for depreciation, though seeing the small number of spindles which have been running continuously the plant may safely be taken to be nearly as good as When addressing you last year I expressed a hope that we should have the 20,000 spindles required for the No. 1 mill out by January last. It was a hope, I re- gret to say, which proved a disappointment, and owing to the intervention of the strike at home you will observe from the printed report that even now we have not these final 20,000 spindles completed or at work, though we have done all in our power to expedite shipment, de- 1,000.00 livery, and erection. As regards cost the
6,481.24
$278,581.24
0.
$ 6,948.46
66.78
new.
[December 31, 1898.
rest. As regards the No. 2 mill the amounts so far expended on press warehouse and foundations amounts, as I have already men- tioned, to Tis. 92,000. When we entered on the negotiations for new machinery we found the makers full of work and asking higher prices, added to which there came news of further delay in delivery of the balance of spindles for the No. 1 mill, a delay so very inconvenient that the board determined they would not fur- ther consider the question of extension until the No.1 mill was completed. We had contracted for the press warehouse, as it was needed and it was a welcome addition for storage purposes. The outlay thus incurred, some Tis. 12,000, is not therefore entirely unproductive, the only unproductive outlay being the foundations of the No. 2 mill, but we need not regret this, for pro- gress will now be made and I hope with success. Gentlemen, we have gone through a season of much difficulty and anxiety, but the difficulties are, I think, disappearing, and your anxieties may lessen. We have effected economies in wages, and improvements in production and we can at least claim that we bave entered on a new year's working making something to the good. The cotton industry is not dead. It is only in its infancy, and whilst I am disappointed at the circumstances of the year past, I look with confidence to the result of the years to come. I shall be pleased to answer any ques Lions to the best of my ability,
No questions being asked,
The CHAIRMAN proposed the adoption of the report and accounts for the past year.
Mr. A. MACLEOD seconded and the resolution was unanimously carried.
Mr. E. U. SMITH proposed the re-election of Messrs. J. Prentice, A. Macleod, Tafoong, and Zee Tee-san, together with the senior repre- sentative of Messrs. Jardine, Matheson & Co., as directors.
Mr. HENNINGSEN seconded and the motion was agreed to.
The meeting terminated with a vote of thanks to the chairman, unanimously accorded on the proposition of Mr. J. D. Clark.-N. C. Daily
News.
meeting :-
The following is the report presented to the
Mr. J. D. CLARK proposed the re-election of 983.39 aggregate of mill No. 1 with land and offices Mr. Wingrove as auditor for the ensuing year. 1,098.43 will reach something over 13 lakhs, but given Mr. W. Lamond, junior, seconded and the ap
full equipment, the best machinery, and first-pointment was confirmed. 3,000.00
class buildings, I do not think this need be con- 650.35 464.17
sidered unusually high. The result of the past 8,939.46 year's working is very different from what a 3,176.69 year ago I hoped might be the case, for as 197.69 already stated not only has the high price of China cotton been against us, but the tendency 423.74 of markets has favoured India and Japan. You may reasonably ask, do these conditions $26,949.16 continue or are they likely to recur ? I think and hope not. A renewed demand for 721,01 yarn set in some two months ago and ex- 334.38perience of the local market for the raw material has not proved valueless. I will now take the accounts and touch on the larger $26,949.16 items seriatim. Property Tls. 138,000 needs no remark. Buildings Tls. 360,000, of which Tls. 92,000 is expended on the new press ware- THE KWO COTTON SPINNING AND house and foundations for the No. 2 mill.
WEAVING CO, LD.
Cr.
By interest
By exchange By balance
C.
25,893.77
Cottou
Plant, Tls. 837,000, which will be increased by another lakh before the whole 50,000 spindles The third ordinary general meeting of share. for No. I mill are thoroughly fitted. holders in the above Company was held at the stook Tls. 1,000 is taken over at a lower offices of the General Managers, Messrs. Jar-basis than the value ruling to-day. Yarn stock dine, Matheson & Company, Shanghai, on the 21st December, Mr. E. F. Alford presiding. There were also present Messrs. J. Prentice, A. McLeod, and Zee Tee-san (Directors). C. S. Taylor (Secretary), J. M. Young, E U. Smith, C. Dowdall, H. F. Henningsen, J. D. Clark, W. Lamond, Jun.. Tong Kid-son, C. Buchanan, R. Inglis, W. J. Gresson, J. Kerfoot, J. Val- entine. J. F. Rodewald. W. A. Cruickshank, E. R. Morriss, and E. R. Burdon, representing in all 4,685 shares. The notice convening the meeting having been read,
The CHAIRMAN said-Gentlemen, 1 must ask you to excuse the delay which has occurred in posting the report but your auditor did not finish it until Monday, the 12th instant, and the gentleman who was looking after it fell ill last week and his work had to be gone over de novo by another. I will request you, as is cus- tomary, to take the report and accounts as read but before asking you to adopt them will endeavour to give you the fullest information as to the position of affairs. The condition of the cotton industry at this port during the year under review has lately become known to all. Commencing the year 1897-8 with the favour able results we had expected and with fair pro
|
Tls. 305,000 all sold excepting 1,100 bales before the valuation was taken, so the result will be neither better nor worse. Sundry debtors Tls. 42,000, principally six day native bauk orders, since matured and collected. Ou the other side we have capital the original 10,000 shares plus 124 new shares all fully paid up, and 4,876 new shares on which Tls. 25 per share has only so far been called up. Then there is an item of some seven lakhs due to our firm, and Tls. 23,000 of accounts payable, which consists chiefly of interest accrued and not paid at the date of account. I have already mentioned the No. 1 mill with the land and offices will cost over thirteen lakhs, which you will observe exceeds the original capital of one million by more thau two lakhs, a deficiency supplied from the seren lakhs supplied by my firm. I men. tioned last year that the money derivable from the new issue of shares would suffice for this year's requirements, but we have as yet taken no steps towards balance of calls leviable on the new shares, uor have we proceeded with the debenture issue authorised, being content so far to provide all necessary funds ourselves. For the present the matter had better thus
The General Managers submit a statement of· accounts to the 31st October, 1898, showing the result of twelve months' working to that date.
The number of spindles now received amounts to 41,752, but the number running averages only 29,000 for 51 weeks, as the makers were not in a position to resume shipment before June this year.
year under
review was Tls. 9.82 per bale below that realized
The average price of yarn for the
during the six months ending on 31st October last year, while the average price of China cot- ton showed a reduction of ouly 75 candareens per picul. Under such unfortunate conditions the Profit and Loss Account results in a debit of Tls 17,649.89, after writing back the Gener- al Managers' commission and one half their provided for repairs and renewals, office expenses, and Tls. 1,833.58 has yet to be
CONSULTING COMMITIEE.
In accordance with Article XVII the mem- bers retire, but being eligible, offer themselves for re-election.
AUDITOR.
Mr. Wingrove offers himself for re-election.
JARDINE, MATHESON & Co.,
General Managers. Shanghai, 6th December, 1898,
LIABILITIES.
Capital-Authorised, 17,500 shares at TIs. 100
ench-Fla. 1,750,000. Subscribed, 10,124 shares at
Tis. 100 each 4,876 shares at Tis. 25 each
Jardine, Matheron & Co. Accounts payable.. Uncollected dividends...
-1,012,400
121,900
1,134,800.00
711,500.00 23,860.11
1,102.50-
Tls. 1,879,762.61