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COMPANIES.
SHANGHAI AND HONGKONG DYEING AND CLEANING CO.
The third general meeting of the Shangbai and Hongkong Dyeing and Cleaning Co., Ltd., was held at the premises of the National Bank of China, Ltd. Mr. G. C. Moxon presided on December 27th, when the others present were:-Messrs. J. F. Wright, E. D. Haskell and Chan Ki Pan.
THE HONGKONG WEEKLY PRESS AND
This exceptionally satisfactory result of our working is not in any measure caused by a departure from the policy we have previously adopted of endeavouring to buy cotton and sell yarn simultaneously and so secure a certainty feature in our operations-but what of a profit-there has been no speculative been able to avail of was the advantage of an we have unusually active demand for coarse exceeding the supply of imported goods and cloths, largely increasing the number of native hand looms and thereby consuming a greater weight of locally and native made yarus.
Cotton prices at the beginning of our financial year ruled high, but the crop being not only a big one, but a good one-and large growths decline of quite ten per cent from the opening almost invariably are good ones-resulted in a when it was apparent in the summer months that an increased acreage had been put under
cultivation.
In April the margin of profit we were making on forward sales of yarn suggested the advisa bility of working the mill night and day, and although considerable difficulties in the matter of labour had to be overcome, our Manager, Mr. Kerfoot, was equal to the occasion, and results: warrant the departure which continues to-day with an ample supply of capable hauds, enabling
us to maintain two full shifts.
The CHAIRMAN said:-The report and accounts having now been in your hands for some days I will with your permission, take them as read. It is with much regret i have again to lay before you a balance sheet showing a loss on working account. We have however, suffered a great deal from únavoidable mis- fortune during the past year. Our British superintendent and our British foreman both died suddenly in the summer and their deaths involved the works in considerable loss both directly and indirectly. They were both excellent workmen and from every point of view their decease is to be greatly deplored. With regard to the future I think
may say that after an exhaustive trial it has been fully demonstrated that what I would term the garment or domestic trade does not pay us if unsupported by other work. There is not Turning to the accounts, I feel sure that the enough of it to allow us to work at a profit. shareholders will appreciate the conservative Could we obtain more work without sensibly in-policy of your committee in recommending as creasing our standard charges I do not think à dividend only a small percentage of earnings, there is any doubt but that we could run at a but yet giving a return of sixteen per cent on profit. With this point in view your Directors share value. The transfer to a new account of have decided to make a new departure and to Tls. 100,000 makes provision for rainy days, seek an enlarged field in the dyeing and and the sum of Tls. 45,939.90 placed against finishing of piece goods-silk and colton.
renewals and repairs account is more necessary machinery has been imported and prudent than ordinarily necessary, because installed and is at this moment, I hope, actually in his annual report, our mill manager working my last communication from the writes that the machinery has been over- works advised that all was ready to commence. hauled and is in good condition." Sigus are not lacking that there is scope for a
This statement is supported by the fact that we large trade in this piece goods business, and I have spent in renewals and repairs this year, trust that the next report may bear out the Tls. 19,675, as against Tls. 10,245 during 1904, hopes of your management and may reward and another satisfactory feature in the account your disappointment in the past. The figures assisting the credit balance shown is that the now before you will show you that we have been debit entry for interest incurred is Tls. 20,000 forced to borrow considerably in order to meet
less than last year. the loss we have sustained in course of working and to provide the works with the staff and machinery necessary to give them the oppor- tunity to continue with reasonable hope of success, I think there is nothing I can usefully add. I shall be pleased to answer any questions that may be put.
The
There were no questions and the report was adopted, while the confirmation of Yuen Sing's appointment to the directorate was carried on the motion of Mr. Moxon, seconded by Mr. Haskell
There was no other business.
THE
EWO COTTON SPINNING AND WEAVING CO., LD.
DIRECTORAL PLURALITY.
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The tenth ordinary meeting of shareholders in the Ewo Cotton Spinning and Weaving Co., Ld., was held at Messrs. Jardine, Matheson's Shanghai offices on Dec. 16th. Mr. W. J. Gresson presided, and there were also present: Messrs. A. McLeod, P. F. Lavers, Ze Quay- ying (Directors), W. C. Murray, Dr. N. Macleod, J. Kerfoot, J. C. Hanson, E. R. Morriss, G. Butler, J. J. Dunne, Ching Yue, Yuen Cheong, and J. McKie (Secretary).
Gentlemen.-The
The CHAIRMAN said: audited accounts of the Ewo Cotton Spinning and Weaving Co., Ld., for the year ending October 31st, 1905, and brief report accompany. ing it, have been in the hands of shareholders for the prescribed period of 14 days, and with your permission we will now adopt the usual form of procedure and accept them as read.
At our last Annual General Meeting on December 23rd, 1904, it was announced to shareholders by my predecessor as Chairman of the Consulting Committee, that prospects for the year under notice were good, and that statement has been fully justified by our being able to submit to you to-day a better result than has been achieved since the mill started working
C
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In view of the excited state of American cotton markets, and the unusually far forward engagements of manufacturers in Lancashire and American mills, the future of our industry is shrouded in uncertainties, but it may satisfy you to know that the production of the Ewo Mill is sold at good, night and day working, profits for four months of our new financial year. (Hear, hear.)
[December 30, 1905.
Mr. J. J. DUNNE proposed the re election of the retiring Consulting Committer.
Mr. W. C. MURRAY seconded, Mr. BUTLER said-On this I should like to make one or two remarks.
It has been my conviction for a good many years past that the Directors of the companies in Shanghai are, and have been, largely overpaid. I will admit a considerable amount of work devolves on the that there are companies in Shanghai in which directors, but these companies are an exception, and in the majority of the companies the work of the directors is practically a sinecure. I think it might be interesting, and perhaps a little instructive, if we were to contrast what this company has done for the individual a shareholder in this Company from its installa- shareholder and for the directors. I have been
tion.
I believe, if my memory serves me correctly, that for the first year or half
year, don't remember which, a dividend was paid, but for a return on our money. On the contrary since then we shareholders have looked in vain
we have seen our capital written down by 50 per cent. That is one side of the question. "Let ing the same period they have each taken, not us see what it has done for the directors. Dur-
Company, Tis. 10,0 10, and I say this is mon out of the profits but out of the capital of the strous.
The consciences of the directors must be as elastic as their pockets to enable them to do so. directors appearing in nearly every other com- But that is not all. I find the same
that perhaps with the exception of the Hong- pany in Shanghai. I think I might safely say kong and Shanghai Bank scrip, I don't possess a single share certificate that doesn't hear the names Mr. Alexander McLeod and Mr. W. D. Little. There is one company, if I may use such an expression, where their names do not appear; I refer to the Municipal Council. but in one case there is very little to do aud ample remuneration, and in the other there is plenty of bard work and no pecuniary reward. The inference is, to my mind, obvious and that rather than the interests of the company, in if these gentlemen study their own interesta
fact I am forced to the conclusion that they are think in London they would be known by what we may call professional directors; I
another name, revolutionary resolution. I am simply going I am not going to propose any to make a suggestion, and that is that the directors should voluntarily reduce the amount of their remuneration from Tls. 1,000 to Tls. 500 and I am convinced that it would work much better. I think I had better not wait and hear any discussion on my suggestion.
Mr. BUTLER then took up his hat and coat. The CHAIRMAN: I don't quite know. Mr. Butler, why you have taken upon yourself to make these remarks. There is one point on which I should like to correct you without
Before submitting to you the formal resoln- tion that the report and accounts as published, and now in your hands, be passed, I shall be very pleased to reply to any question the share-referring at all to the attacks you have made holders may ask me.
Mr. BUTLER I have no doubt, Mr. Chairman, you can give a satisfactory answer, but I shall be glad if you will tell us why this amount of Tls. 45,939.90 was not deducted before from the gross amount instead of it being called net profits? Ought not that item of Tls. 45,939.90 to have been deducted first; you say you charge commission on it.
The CHAIRMAN -That item of Tls. 45,939.90
companies. upon the directors of the various Shanghai You say the directors of this That company receive Tls. 1,000 per antum. is not a correct statement. The remuneration is Tls. 750.
Mr. BUTLER-I apologise for that. any man that works has to be paid.
The CHAIRMAN-I think you will admit that
Mr. BUTLER-Fully.
The CHAIRMAN And so far as the Ewo Cot-
is part of the total profit on the year. Theton Spinning and Weaving Co. is concerned it general managers are entitled to commission on the total profits. It seems to me that it does not matter what account you put it to, to either the repairs and renewals account or to any other account, but it is part of the net profits of the
has received from the members of the Consulting Committee good work, and I do not think that the public of Shanghai will consider the re- muneration of Tls. 750 in any way excessive. As far as your attacks on the other directors of the various other Shanghai companies are con. Mr. BUTLER I have no doubt you are correct,cerned it doesn't devolve on me to defend them. This report no doubt has been before the I think that is all I have to say. directors who passed it with their approval?
year
The CHAIRMAN-Certainly,
Mr. A. MCLEOD - I don't think Mr. Butler exactly understands. This Tls. 45,000 odd is to provide for future repairs.
Mr. BUTLER-Oh yes, I see that.
Mr. MCLEOD-The repairs as you will see have already been debited to the profit and loss account in the sum of Tls. 19,675,32, and this sum is to provide for future repairs; it might be put to the reserve fund or anything else.
The CHAIRMAN-I beg to propose that the report and accounts as presented be passed.
Mr. MCLEOD seconded, and the resolution
was carried.
I
Mr. BUTLER-Iam sorry to say I cannot agree neither the technical or practical, knowledge with you. The directors of this Company have
necessary to run a cotton mill and therefore there only remains the supervision of accounts and I cannot see that that is worth Tls. 750 a year.
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Mr. MCLEOD-There is a slight other mistake also in your remarks, Mr. Butler; you certainly made an inference which is not borne out. You referred to me as being a director of a great many companies; I admit it. There are a give up, but I am elected by the shareholders good many directorships which I would willingly and I am bound to serve. Then you say I do