Page
}
March 12, 1904.
our
|
share in addition to the usual dividend of $6, or say 35 per cent. on the paid-up capital of the company. We trust that future profits will admit of the extra reserve fund being farther increase I, while at the same time shareholders may have the benefit of a bonus in addition to their usual dividend. Wo thought it advisable to provide for certain depreciation in investments, and have set aside the sum of $15,000 for that purpose. After writing down the said investments to their markot value as on 31st December list there remains a balance of $258 L71 to the credit of investmaut flustus- tion aceɔuul. In this connection, I can assure you that the company's holdings of shares in other public companies are quite sound, and our funds are invested in steady dividend-paying stocks; but, as you know, we have bean passing through a period of depression, and therefore these investments show a depreciation over their original cost. As business mea I think you will agres with the board in providing for tis temporary depreciation. Iu regard to our mort. gages the company's surveyors have reportel on the properties under loan to us, and we are satisfied that our advances are perfectly safe. You will have noticed the disappearance from our balance sheet of the item “Rural Building Lots No. 42 and 84.". We received an offer for this property, aud decide i to dispose of it, and I think the 8 Lle was a good one as far as we were concerned. although it showel a small loss, which we are now providing for. Our working account for 1903 shows a gain of $66,149.81 over that of the previous year, owing principally to an increased premium sad interest income an I to our loss's being somewhat I ss. We hope that the su:u caried forward will more thau meet our unexpired liability under 1903 policies and leave us with a satisfactory profit to deal with 12 months hence. During the past year we have taken two important steps in the company's business. First of all, we have decided to withdraw from Japan rather than lock up fands to the extent of 100,000 yeu as Government deposit, and We are therefore allowing our risks to expire, and in the course of a few months we will have no fur- ther liability in that country. The second step referred to is the opening of an agency in Lon- don for the transaction of United Kingdom insurance business. We are represented by a gentleman of considerable experience, and wo are working with the tariff offless, so we have hopes that the scheme we have entered upoɑ will result in profit to the company. As, how ever, we only commenced to participate in busi- ness as from the Michaelmas quarter, it would be somewhat premature to say anything further од this subject. Fires have been rather numerous both here and at outports since the close of the year, but I am happy to say that we have not suffered any severe loss by any one of them. I will now more that the Directors' report and statement of accounts for the year 1903 as presented be adopted. After this has been seconded I shall be pleased to answer any questions that may be put relating to business before the meeting.
11
Mr. WILCOX, in seconding the adoption of re port and accounts, said :—I think, Mr. Chair- man, we may congratulate ourselves up a the report placed before us and up n the re- marks made by yourself. The vicissitudes of fire insurance are pretty well illustrated by the history of the last two years. Last year, when I had the pleasure of seconding the adoption of the report, I remember deploring the fact that we had to take some $18,500 from the extra reserve fund to make up our dividend, and at the same time expressed a pious hope that we should be able to restore that amount in the following year Well, we have been able to do that, and more than that. We are going to enjoy a bonus of $1 a share, which is very satisfactory to the shareholders. I quite coin- cide with the remarks of the Chairman that it will not do to expect such years as this every year. If we get one occasionally we shall be fortunate. The probability is we shall not get a succession of good years. It is a good thing to keep the additional reserve fund intact, as far as possible, ready for reverses, so that we may be able to draw upon it to pay the usual dividend. With regard to the new features mentioned by the Chairman, we shall have to see how these work out bifo e saying any
CHINA OVERLAND TRADE REPORT. thing about them. I am pleased to know that | it is possible to give a bonus to the staff. I am sure they deserve it; and the shareholders will be very pleased to eadore that statement, With these few remarks, I bag to sɔcond the adoption of the report and accounts.
Mr. J. WHEELEY proposed that the appoint ments of Messrs. E. Shellim, H. W. Šla le, C. A. Toms, and A. Haupt on the Board of Directors he confirmed.
Mr. HART BUCK saconded, and it was carried Mr. J. J. LEIRIA proposed that Messrs. A. G. Wood and E. Saellim b3 re-elected directors.
Mr. A. H. M. de SILVA яeconded, and was carried.
205
as the profits were less owing to bad times, their dividend was reduced to $1.50. Now 1903 had been what he might call a year of pleaty, because the profits mida were really much more thsa what they expected; but what he maintained was this, that shareholders look d forward to be treated according to the prosperity of the Company. With regard to the writing down the directors had order d, ha was very much in favour of that; there was no better principle than writing down to a fair and reasonable amount, Bat two years ago Mr. Ball Irving, who was chairman thea, told them that their property was in excellent con- itdition and that the wharves, railways, rolling stock, launches. lighters, and machinery stood on their books at auction prices Well, that meant a deal. Last year about $50,010 had been transferred to depreciation and repairs account and written dowu. This year these. items had doubled, $102,000 having been tra 18. and written of wharves, railways, rolling stock, ferred to depreciation and repairs nosount launches, lighters, and so on. Now, in view of what Mr. Bell Irving told them they naturally thought their property was very sound, as very good prices could not ba git in auction. Wharves had been written down 20 per cant, for they appeared in the assets at $10,403, and $20,000 had been written off that value. What was the life of a wharf to wipe off 20 per cent, and when wore the shareholders then
Mr. J. WHEELEY proposed that Messrs. Hutton Potts and A. R. Lowe be re-elected auditors,
Mr. A. V. Arcar s››ndel, and it was carried.
The CHAIRMAN:-That is all the basines, gentlemen. Dividend warrants will be posted this afternoon. Think you for your attendanc.
HONGKONG AND KOWLOON
WHARF AND GODOWN
CO., LU.
ANNUAL MEETING,
to get the benefit of a prosperous year? held
The annual meeting of the Hongkong aud Kowloon Wharf and Go lown Co.. LA, was held He dared say he might, be hold that share- on the 10th inst. ia the Company's offices, 2 Coa-holders would like very much to have a steady aught Road Hon. C. W. Dickson (chairman) | dividend. Well, he should say i was not s1, presided, and there were also present Hon. because those people who wantel stealy divi- Sir Paul Chater, C.M.G., Messrs. E. Goetz, deads on their money could fall back on their A. Haupt. E. A. Hewett, A. J. Raymond, H. debentures. When we put our money into a Schubart, E Shellim, N. A. Siebs, E. 3. Whealler, aul A. G. Wool (directors). R. C. thera isany adversity, we godowa with it, Further concern, if there is any prosperity, we benefit; if Wilcox, F. D. Barretto, S. J. Michael, J. R. also, Mr. Bell Irving told us two years ago about Michael, and R. J. Macgowan (acting secretary) the value of our assets,
The notice calling the meeting having ben read,
He said they had got
a magnificent property at Kowloon, comprising 900,000 square feet of land with unrivalled deep sea-water frontage and covered with first-class building, which land cost them only $2.59 per square foot. It would be impossible, Mr. Michael thought, to acquire such sites with building on them for less than 87 or $8 per square foot; and if they based the dividend on the valu, the shareholders hardly got 35 per cent. In this view he had nothing to y, but he would ask the directors to consider mitters a little more from the shareholders' pint of view and try to improve their position in view of the progress of the Company s prosperity.
The CHAIRMAN said -Gentlemen.-The re- port and accounts have been in your hands for several days, and I po 089 with your permis sion to take them s read. There was a satisfac- tory increase of business during the year, and a good demand existed forgo town accommolativa. We were able, with the large promises we have erected in recent years, to meet all the demands mads upon us, with the result that we able to come before you with the best bilance sheet the Company has ever shown; while the policy wa have pursued of keeping abreast, and perhaps evou a little ahead, of the times in regard to The CHAIRMAN stated that the fact: mзn- first class go lowus has been proved to be a sound tioned by Mr. Michiel wara of omrsa before одн The Company's house property has also the directors when they decided to make the be well let during the year, The balance at recommendations which they had done in the credit of profit and loss account, including report. The aim of the directors was to mai $14.481.69 brought forward from 1902, is tain as far as possible an equality in dividend, $15,661.41. It is proposed to write off wharves and in carrying out that aim they were naably and other property $67,149 73. At first last year, as he had explained, to write off as much sight this may appear a large amount to devote as would have been written off had the earnings to that purpos2, but you will bear in mind that of the Company admitted of it. There might during the previous two years our earnings did be room for diff ranges of opinion as to the neœs not admit of making the provision we should❘sity for writing down the Company's properties- otherwise have done, and your Directors have but there could be none that such a policy for that raasou decided to write off rather more strengthened the position of the Company, and freely than asust. Turning to the working he was certain it would be favourably regarded account, it is satisfactory to not that while the by the great majority of the shareholders gross revenue is $69,215.41 more than in 1902, (Applause He thought a stealy dividend was the expenditure is nearly $10,000.0 less. List preferable to a feast one year and a famine the year Irsferred to the fact that no case of plague next, as he understood Mr. Michiel to advocate. had occurred in the quarters of our Chinese om- ployees, and I am pleased to be able to still make the same statement. The somewhat heavy expense incurred in sanitary reforms has been amply repaid by what we may regard as the result. Before moving the adoption of the rɔ- port and accounts, I should be pleased to answer any questions.
Mr J. R. MICHAEL said he would like to make a few remarks about the accounts. First of all he would like to congratulate the directors and the management on the very splendid accounts they had presented to the shareholders and also on the economy shown in the working of the Company. Now when it came to the profits earned he saw the profits were $79,000 more, in spite of last year's chairman's speech, which was pessimistic and held out very little prospect for this year. The shareholders had been obtaining dividends from 1898 to 1901 at the rate of $5 per share, when the Company's profits were much less than last year. In 1902,
|
|
Mr. MICHAEL said he had already replied to that. It seemed, then, that the directors had d'oided that the dividend should remain the same, whether they had $79,000 more profit than they had last year: the shareholders had not to get any more. As he had said, they had the debentures for those who wanted a steady dividend, but when the ordinary share- holders put their mɔɖɔy into a conera like this they wanted to resp the fruits of their prosperity. He was sure other people would say what he was saying; there was nothing unreasonable in it. When any bad year comes you put down the dividend, and we do not say anything; it is a bad year, and we do not complain.
The CHAIRMAN replied that the directors regarded this as sa exceptional year, and very rightly so, looking back on the frit; and as there was no guarantee of a continuance of the very satisfactory result of last year, he thought it was erring on the side of prudence not to