August 10, 1901.]
certainly none where the recompense is less! commensurate with the work actually done."
In Shanghai the commission charged is 1 per cent. to the seller only, but that is nothing | compared to the commission charged here on many stocks-tako a few for example :-
Market valne.
Brokerage buying and selling. 10 cents each way
Jelebus
8 450
China Providents $ 9.75
10
Watsons
$16
15
Raubs...
$12 50
20
11
Green Islands
821
China Traders
860
25 50
or the broker charging brokerage to both buyer and seller makes 2 per cent. to 4 per cent. on a deal before the principal can make a profit. The scale is absurd, and if, as the Shanghai writer states, "the sharebroker there fatteus on his I per cent. commission from the original seller and a possible second commission of 1 per cent. on the resale, to say nothing of future possibilities in brokerage from a diligent track- ing of these identical shares," what unnecessary profits the sharebroker here must be making at the expense of the general public when chasing round the town a few hundred Provi- dents, Jelebus and such stocks!
I am well aware that the broker in Hongkong may consider himself underpaid when putting through transactions in Docks, Banks, Lands, Unions and a few other big stocks, but as a rule here he makes a good deal more than 1 per cent. commission on his transactions, and the principal who takes a moderate risk and only looks for ward to a moderate profit is a good deal worso off here than in Shanghai.
There is a remedy, of course, for the principal, and that is to leave the small stocks alone as much as possible, as, other things being equal, it is distinctly more favourable to the investor to buy (say) 10 Docks, value 83,000, and pay $10 brokerage, when buying and selling, than to buy (say) 250 Electrics, value 83,000, and pay $75 brokerage.
The scale here is, of course, absurd and why do we not pay a fixed percentage as elsewhere? 1 per cent. to the seller only on small transac tious and per cent. on large transactions should be a good and fair remuneration to the broker. and I think it is quite time the Chamber of Commerce should insist on a more equitable scale. Yours, etc.,
INVESTOR.
HONGKONG AND SHANGHAI BANKING CORPORATION.
The following is the seventy-second report of the court of directors to the ordinary half- yearly general meeting of shareholders to be held at the City Hall, on Saturday at noon :-
Gentlemen.-The directors hare submit to you a general statement of the affairs of the Bank and balance-sheet for the half- year ending 30th June, 1901,
now to
|
|
CHINA OVERLAND TRADE REPORT.
AUDITORS.
The accounts have been audited by Mr. F. Henderson and Mr. C. 8. Sharp, who offer themselves for re-election.
B. Shewan, Chairman. Hongkong, 1st August, 1901.
ABSTRACT OF ASSETS AND LIABILITIES, 30th June, 1901.
ARKETS.
$
Cash Loin lodged with the Hongkong Go- verument against note circulation in excess of $10,000,000 Bullion in hand and in transit
Indian Government rupee paper
Consols, colonial and other securities £250,000 21 per cent. con- Sterling reserve fund investments, viz. :
Bols lodged with tho Bank of England as a special London reserve. at 90 £225,000 £222,500 21 per cent, con- xols, £300,000 24 per cent. national war loan at 90 £470,250
£353,500 other sterling securities standing in the books at £330,750
C.
$ 1,900,000,00
1,702,500.00
3,397.500.00
Bills discounted, loans and credits. Bills receivable Bank premises
LIABILITIES.
Paid-up capital Sterling reserve fund Silver reserve fund
Marine insurance secount... Notes in circulation :
Anthorised isene against securities deposited
with the Crown agents for the colonies Additional issue autho
rised by Hongkong Or. dinance No. 19 of 1900, against coin lodged with the Hongkong Government
Current accounts :-- Silver
*
C
10,000,000.00
2,561,679.38
Gold, £2,393.551 158 kl. 24,476,700,35 70,109,213.74
36,451,538.32
C.
41,097,778.68
3.986,000.00 6,987,983.43
2.043,783.53
6,033,859.15
10,0 0,000.00 75,426.204.11 71,756,783,65 719.503.60
131
HONGKONG, CANTON AND MACAO STEAMBOAT COMPANY, LTD.
The ordinary half-yearly meeting of share- holders in the above Company was held on the 6th inst. The Hon. J. J. Bell-Irving (chairman) presided, and the other gentlemen present were:
The
Messrs. N. A. Siebs, F. A. Gomes, R. Shewan, P. Witkowski (directors), T. Arnold (secretary), S. A. Joseph, A. da Silva, F. Henderson, J. N. Goosmann, A. G. Stokes, J. Leiria, Dr. Noble, and Captain Farrow. The CHAIRMAN said: Gentlemen, report and accounts now before you, which with your permission we will take as rend, so fully explain the present position of the Company's affairs that I do not propose to supplement them with many remarks of my UWD. The expectation which was expressed at our last meeting that the improvement in the earnings would be maintained has, I am pleased to say, been fully realised, the result of the steamers working for the half-year being the best on record and some 855,000 better than that of the corresponding six months of 1900. These earnings must perhaps be regarded as exceptional, but in the event of no further opposition, your directors feel confident that the present dividend can bo maintained. With regard to the appropria- $221,951,806.45 tion of the remainder of the profits, it is $ chardly necessary for me to dwell upon the 10,000,000.00 || soundness of the policy of writing down the value of our steamers and of adding to the 250.000.00 equalisation of dividend fund as opportunity
offers: the larger our reserves the less likeli hood there is of opposition, and the better position we are in to meet it if it should I may say that in the event of any serious opposition to the business of this Company your directors are quite determined to lower rates to a point which would render such opposition unremunerative, and it is with this contingency in view that they are desirous of building up the equalisation of dividend fund. Goatlemen. I think that from all points of view the present position of the Company is most satisfactory aud that the report and accounts now presented should be gratifying to shareholders. Unless further information be desired I will now proposo that they be 71,949,949 32 | adopted.
Fixed deposits: Silver Gold, £3,467.783 28. 8d.-35,498,411.20
Bills payable (including drafts on Lon- don bankers and short sight drawings on London office against bills receiv able and bullion shipments! Profit and loss account. Liability on bills of exchange re-dis- counted, £4,801,676 16a, 7d, of which up to this date £3,235,520 have run off,
10,000,000,00 3,000,000.00
12,561,679.38
94,585,914.00
16,124.837.47 3.479.515.99
$221,951,896. 15 GENERAL PROFI AND LOSS ACCOUNT. 30th June, 1901,
Dr.
To amounts written off: Remuneration
to directors
To dividend account : £1 108. per share un 80,000 shares - £120,000 at 40, 6d
Differ-
ence in exchange between 44. 6d.. the rate at which the dividend is declared, and 1 d. 7-16ths, the current rate of the day
The net profits for that period, including To dividend adjustment account: $1,410,272.65, balance brought forward from last account, after paying all charges, deducting interest paid and due, and making provision for bad and doubtful accounts, amount $3,479,515.99.
to
The directors recommend the transfer of $750,000 from the profit and loss account to credit of the silver reserve fund, which fund will then stand at $3,750,000.
After making this transfer and deducting remuneration to directors there remains for appropriation $2,714,515.99, out of which the directors recommend the payment of a dividend of one pound and ten shillings sterling per share, which at 4/6 will absorb $533,333.33.
The difference in exchange between 4/6, the rate at which the dividend is declared, and 18. 11d. 7-16ths the rate of the day, amounts to $695,466.67.
The balance S$1,485,715.99 to be carried to new profit and loss account.
DIRECTORS.
The Honourable J. J. Keswick, the Honour. able R. M. Gray, and Mr. P. Sachse having resigned their seats on leaving the colony, the Honourable J. J. Bell-Irving, Mr. H. E. Tomkins, and Mr. H. Schübart have been invited to fill the vacancies, respectively; all theas appointments require confirmation at this meeting.
To transfer to silver reserve fand To balance forward to next half-year
Cr.
By balance of undivided pro.
fits, 31st December. 1900 1,10,272,65
By amount of net profits for
and
the six months ending 30th June. 1901, after making provision for bad doubtful debt», dedneting all expenses and interest paid and due.
2,060,243.34
S
13,000 00
333.343.33
693,466.67 750,000.00 1,485,715.99
$3,479,515.99
क्ष
C.
STERLING RESERVE FUND.
To balance
come.
There being no questions, the Chairman moved the adoption of the report and accounts. Mr. STOKES seconded, and the motion was carried unanimously.
Captain FARROW then proposed that the meeting confirm the appointment of the Hon. J. J. Bell-Irving to the Board of Directors.
The proposal was seconded by Mr. JOSEPH, and unanimously agreed to.
Mr. GOOSMANN, seconded by Mr. DA SILVA, moved the re-election of Mossrs. Siebs and Haupt as directors.
This was also carried.
Mears. O'D. Gourdin and Henderson, on the motion of Dr. NOBLE, who was seconded by Mr. LEIRIA, were re-elected as anditors.
The CHAIRMAN —That is all the business of the meeting, gentlemen. Dividend warrante will be ready by ten o'clock to-morrow morning.
SUPREME COURT.
Friday, 2nd August,
IN ADMIRALTY JURISDICTION.
BEFORE HIS HONOUR A. G. W188 (ACTING CHIRY JUSTICE).
COLLISION CASE.
The hearing of this action was resumed. 3,470,515.00
The plaintiffs, Bell's Asbestos Eastern Agency, 83,479.515.09 | Ltd., sued the defendant, the owner of the stoam-launch Kwong Wo, for $2,000 damages for collision with their launch Belle. The Hon. H. E. Pollock, K.C., Acting Attorney- General (instructed by Mr. Wilkinson). represented the plaintiffs, and Mr. J. J. Francis, K.C. (instructed by Mr. Master), the defendant.
3 0. 10,000,000.00 .10,000,000.00
By balance 31st December, 1900
(invested in sterling securities.)
SILVER RESERVE FUND.
To balance..
By balance 31st December, 1900 By transfer from profit and loss account
3,750,000.00 After hearing the arguments of counsel, His 3,000.000.00
Lordship proceeded to sum up. He reviewed 750,000.00 * the evidence that had been adduced by both parties, and laid great stress on that of the two experienced officers of the Diamunte, Mr. Notley
$3,750,000,00