260
POWELL AND CO., LTD.
The half yearly meeting of the shareholders n the above company was held on Saturday at the office in Des Voeux Road. Mr. W. J. Gaskell (managing director) presided, and there were present Messrs. G. C. Moxon, E. H. Hinds, H. Eyre (manager) H. Percy Smith and E. Mauricio. The Chairman said Gentlemen, The report and statement of accounts having been in your hands for some days, with your permission we will consider them as read. The year under review has been a disappointing one to us, considerable stagnation in trade having prevailed throughout the year and until recently, when things appeared to have somewhat mended,
ur sales at the present time being quite satis- factory and showing a marked improvement. In March last we declared the usual interim dividend of five per cent but thought it advis- able to curtail the retura to shareholders as to the final dividend, the general depression in trade having become more accentuated during the latter months of our financial year. You will observe from the accounts that we have written down our stock on hand as usual. We consider this a prudent course to follow no matter what our profits may be. I am pleased to say that at the present time our stock is in good order and condition, and that old or deteriorated goods have been disposed of during the year as customary at auction. Should trade continue to improve and our business regain its former dimensions we shall, I hope, find our- selves in a position to return to our former dividends. I shall be glad to answer any questions shareholders may put to me to the best of my ability.
There being no questions,
The CHAIRMAN proposed the adoption of the report, which was seconded by Mr. HINDS and carried.
Mr. HINDS proposed and Mr EYEE seconded the re-election of the directors--Messrs. Moxon and Gaskell-which was carried.
Mr. Percy Smith was re-elected auditor. The Chairman That concludes the business, gentlemen.
The Report was as follows:- The Directors beg to submit their Reports on the working of the Company for the year ending 30th June, 1906.
The Profit and Loss Account, including the sum of $676.95 brought forward from last Account, bas a credit balance of $20,669.17 from which has to be deducted the interim dividend of 5 per cent paid on April 10th last, and Directors' and A uditor's Fees, leaving $10,869.17 which your Directors propose to appropriate as follows:-
To pay a Final Dividend of 3
per cent
To Write off Stock
•
To provide for Bad and Doubt-
To
ful Debts
carry Account
forward to next
$4,500.00 5,500.00
687.11
182.06
$10,869.17
DIRECTORS.
Messrs. W. H. Gaskell and G. C. Moxon, the iring Directors, being eligible, offer them. ive for re-election.
AUDITOR.
Theounts have been audited by your Auditor, Mr. H. Percy Smith Fellow of the Institute of Chartered tants, who is elig. ibleand whom your 1irector recommend for reelection.
W. H. G`SKELL. Chairman.
BALANCH SHEET 30TH JUNE. 1906.
LIABILITIES.
To capital authorized and issued:
15,000 shares at $10
To sundry creditors
To the Hongkong and Shanghai Bank
To unclaimed dividends ....
To equalization of dividend account To profit and loss account....
To tal
ASSETS.
By sundry debtors
By fixtures and fittings
By imvestment at cost
Certificate
By cash in hand
By stock on hand as per manager's
By H. K. & 8. Bank, dividend account...
Total.......
$
Ľ.
|
THE HONGKONG WEEKLY PRESS AND
| PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDING
30TH JUNE, 1906, Dr.
To interim dividend at 50 cents per share To directors' and auditor's fees To balance
Total
Cr.
By balance from 30th June, 1905 .. By dividend on investorent By transfer fees
By bad debts recovermi
By balance of working account
Total...
7,500.00 2,300.00
320.669.17
678.93 350.00
19.735.39
82669.17
PUBLIC COMPANIES AND HONGKONG.
The Pekins and Tientsin Times says:- We reproduce el where an article which appeared in the Hunkow Daily News and which we think will be read with interest especially by those who recognize in the writer a well-known business man. Though obviously referring to some special instances the writer covers points which refer to companies generally, and glaring examples of easy going laxity to which he refers have probably some under the notice of most of us and in most of the ports. It has been suggest ed to Hongkong that agents or representatives be appointed in each port to facilitate the correction of abuses, but Hongkong replies "no funds' and goes on its way serenely, the whole question being bound around with so much red tape that common sense and equity seem to have long since become dead letters. For honest men and well ordered companies the, ordinance is ex- cellent. For those who desire loopholes the mesh is conveniently large.
tered
for
(October 15, 1906.
see that the Ordinance is carried out as was intended, enforce the penalties and if necessary cancel the registration, giving good publicity to the outports that such has been done. 10.869.17 At present We know that many regis companies have gone on working
without years
giving any returns of their doings to the Registrar. The public, on the strength of their being British concerns, 30.50 although there may not be a single British 76.3 subject connected with them bave invested money and lost it. They relied upon the Hongkong Government to see that matters were looked after properly and the ordinance carried out in its entirety. It's a crying shame and disgrace and we feel sorry to make this exposure but duty demands it. The name of a British Registered Liability Company, some- time ago, was held in high respect in China but at the present moment it is looked upon as a thing to be avoided. Even British Consuls who are sometimes accused of inattention to the interests of their subjects are often asked to give protection to these bogus companies, they know- ing well that there is no British interest in the show; they have to do something, however, on the strength of the Hongkong registration certificate. No wonder they get disgusted. In order to put the matter in hand more clearly to our readers we shall note oue case tɔ the public as an illustration of what can be done, and will be done again if no steps to prevent it be taken by the Colonial Government of Hong. kong. A Company was registered several years ago, the signatories to the Memo- randum of Association being seven China- men holding one share each in Я com. pany for $100 each with a capital of one million dollars. Not one of the e Chinamen was a resident of Hongkong but their reported address was in Macao, Canton and Honolulu. The declared business of this particular Com. pany was Trust and Loan, Life and Fire Insurance. The inaugural meeting may or may not have taken place, but in any case if it did the whole thing was a farce. They commenced business with Wire Insurance in the Colonies of Hongkong and Macao, also in Canton, without any capital and relied upon the premiums comiug in to pay their losses. A year or two later, the losses of the Company exceeded the income and the so-called Managing Director was obliged to Part 1.-Para. VI says:-" Auy seven or quit the land of the sunny south and take more persons associated
for any lawful refuge in Shanghai. He was careful enough to purpose, except that of carrying on thebring with him the registration certificate of Business of Banking, may. by subscribing the Hongkong Government signed by the their names to a Memorandum of Associa- Registrar of the Supreme Court of Hongkong tion, and otherwise
complying with the and commenced business in Fire Insurance on Requisitions of this ordinance in respect to
a large scale. He appointed Agents in Ningpo. Registration, form an Incorporated Company. Hangchow, Soochow, Hankow,&c.-the monthly with or without limited Liability'
returas in premium being not less than $4,001 to $5,000 per month. All went well for a year but in the spring of 1905, several fires occurred in Shanghai and Niagpo when claims accrued to the extent of over Tis. 60,000. Several of these claims against the Company were decided against it in the upreme Court in Shanghai bat, as the Managing Director and Staff had deserted the settlement, both the Judgment claims and many others remain to this day unpaid. The Shanghai solicitors for the claimants referred the matter to Hongkong but the Head office of the Com- pany which was formerly represented by a coolis was found deserted. This, however, is only one
The reproduced was as follows Insurance and other Companies' scandals in America have caused a considerable amount of comment all over the world but we, in China, should look into our own affairs before throwing stones at our neighbours. If we look carefully over the Constitution and Incorporation of Companies and Associations under the Hong- kong ordinance of 1865 and the Insurance Companies etc. registered under it. a little reflection will cause us to see that the ordin- ance itself gives a loophole for frand, and, if the matters were looked into, more than one Company has taken advantage of it and many more are looked upon with suspicion.
from the abore it will be seen that 10 mention of Nationality is made and a rogue of any nation or race can come forward and claim registration of a Company under the Hongkong ordinance of 1865, so long as he has six companions to subscribe to the Articles of Association of a bogus institution and under the promise that they will carry provisions stipulated for in other conditions of the ordinauce. Their residence is not required, so long as they have a place within the colony in which the registered office of the company is proposed to be situate, and their own address. The regulations provide
out the
that
share
11
no subscriber shall take less than one and that each subscriber to the memo-
14
randum of association shall write opposite to his name the number of shares he takes." Many other conditions are stipulated for, among them being that "Every Limited Company under this ordinance shall keep a register of share 31.5.69 holders, giving their names, occupations and address, etc " and every asurance Company,
1500000 00 15.431.04
24.50
etc., shall before it commences business and 4,500.00 10,869.17
on the first Monday in February and the first Monday in August of every year $212,201.40 ghall make 8 statement of its business,
F C.
There are età.
many penalties attached 30,027.59 10,627.87
to the regulation but all of which can be avoid. 2,450.00ed by unprincipled men. First by giving bogus returns of the shareholders and the amount of the capital paid up; in many cases none at all. We do not blame the Colonial officials in being lax in their duty but we do blame the adminis $212,201.40tration for not appointing an efficiet staff to
167,696.91 1,374.53 24.50
instance.
THE LATE BISHOP HOARE.
FURTHER SHANGHAI TRIBUTE.
The aged Bishop of Mid-Chins," in the Cathedral all draped in black, preached at Shanghai on Sept. 3th with special reference to his departed Hongkong colleague. In part,
he said:
Mr. Hoare at the age of 25 came to China, and gave the thirty best years of a strenuous life to the service of Christ among her millions. The attraction lay in an invitation from the late Bishop Russell to the Church at home, to send him a man to organize a college for training young Chinese Christians for 'the service of the Church as schoolmasters, catechists and clergyman. Mr. Hoare's family contributed liberally to the necessary funds, but his venerable father, the late Canon Edward