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this old outstanding case is now finished with. Hear! Hear!) We have no losses or claims now outstanding on account of War Risk lesses, but it seems probable that we shall have something to recover in respect of unlawful captures when the Governments con- cerned have given their final decisions. These decisions, as you are aware, take time, but we are not without hope that we shall recover our losses in one or two instances, which losses; of course, have been paid and finish with as far as our accounts are concerned some years ago, so that anything recovered will be so much to the good. (Hear! Hear?)
Working Account 1908. The net premia earned during the year ending December 31, 1908 amount to $1,131,513.63 against 3920.085.14 for the previous year, being an increase of $911,428.49 which I feel sure you, will think satisfactory considering the continued dull state of trade, which most of our contributors have experienced during last year.
The balance of working account for 1908 is $707,637.03 being $167.675.89 more than the previous year, while I am pleased to say pending claims against known losses are only $50,000 more than this time last year.
With this large increased credit balance your directors felt they were quite justified in re- commending the payment of a special dividend of 5 per cent. out of interest earned during 1908, notwithstanding the fact that the capital has been increased and that the dividends of 25 per cent. which we are recommend. ing you to declare this year will cost $180.000 against $120,000 last year. The Claims Paid Account, 1908, amounts to $337.118.16 or 29.80 per cent. of the premium income against 32.30 per cent. for the previous year.
THE HONGKONG WEEKLY PRESS AND
Mortgage on Real Estate.--Your Directors are satisfied that the mortgages are good and that the amounts advanced are amply secured.
Unexpired Risks.-Owing to the increased amount underwritten during the year, unexpired risks amount to a larger sum than they did this time last year.
London Committee. The seat on the London Committee vacant by the death of Mr. C. M. Dyce, to which unhappy occurrence I referred at the last annual meeting, has been taken by Sir Charles J. Dudgeon, so well and favourably known to all of you.
Before concluding my remarks there is yet another matter I have great pleasure in bringing before you and that is to ask your sanction to the Board's proposal that Mr. Jackson and our excellent staff shall receive a bonus similar to that given them last year and in accordance with a resolution to follow in due course. (Hear hear!) I do not know of anything further call- ing for remarks from me, but if any shareholder has any questions to put I shall be happy to answer to the best of my ability. (Applause).
There being no questions the following re- solutions were put to the meeting and adopted unanimously
Proposed by the Chairman, seconded by Mr. H. J. Such that the report of the Directors and the statement of accounts for the year ending December 31. 1908, as presented, be accepted and passed.
Proposed by the Chairman, seconded by Mr. Prentice that a dividend of 25 per cent, being $15 per share on the paid up capital of the Association, be declared, payment in taels at ex, change 73 on the 17th instant at the Chartered Bank of India, Australia and China, or the Hongkong and Shanghai Lanking Corporation, Shanghai, to shareholders of record on April 9, 1909.
Proposed by Mr. Marcus Wolff, seconded by Mr. C. R. Burkill; that, Messrs. J. M. Young H. J Such, J. Prentice, CW. Wrightson, and G. Miller, be relected directors to serve until the next ordinary general meeting of shareholders.
Proposed by Mr. E. C. Pearce, seconded by Mr. C. Michelau: that Messrs. G. H. and N. Thomson be elected auditors, to serve until the
and that their remuneration bo Tls. 250 per
annum.
The Chairman then proposed: that the direc- tors are hereby directed and authorized to pay to the Secretary and staff of the Association a bonus on their salaries for last year, and that it be left to the B ard to decide the amount to be paid, which, however, shall in no case exceed twenty per cent.
The commissions and expenses are 16.86 per cent., a slight improvement over 1907 when they amounted to 17.70 per cent. of the premium income. You are unfortunately aware that trade has been very dull during the past two years, and those who take an interest in the working of Marine Insurance Companies and have read the reports and letters regarding same in the newspapers will have learnt that Marine Insurance Companies in all parts of the world as well as Lloyd's Underwriters have been ex-next ordinary general meeting of shareholders, periencing disastrous years during 1907 and 1908, and there is good reason to believe that the heavy losses underwriters have had to meet will have some beneficial effects on rates in the future, as combined action among Underwriters is already being taken to increase Marine Increase rates in certain trades where they have of late years by competition been forced down to a point hitherto unknown. Your Association has been fortunate enough to pass through these bad years without experien- cing many of the heavy losses with the result that we are presenting to you to-day a record Report and Balance Sheet, and if we can do this when times are bad I trust we shall also be able to do so when times improve, (hear! hear!) but at the same time I must warn you that all Marine Insurance Companies experi- ence bad years at some period of their existence, but we will hope the Association's good fortune will continue and that the bad years are still a long way off, and in the meantime it will be the duty of your Directors to use every endeavour to continue to build up the Reserves so as to minimize the effect of a temporary reversal of fortune when it does happen.
In seconding this resolution Mr. A. McLeod said that he thought all the shareholders would agree with him that in a year like the past it was most gratifying to have such a satisfactory state- ment of accounts.
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[April 26, 1909.
JAPAN
FROM OUR CORRESPONDENT.]
TOKYO, April 8th.
THE BUSINESS OUTLOOK.
A somewhat remarkable conference has just taken place between representatives of the Government, bankers and merchants, the object being the establishment of closer relations among business men. It was agreed that the present depression was largely due to the estrangement among bankers, foreign traders, manufacturers, &c., and the Premier, sharing this view, will call a meeting to discuss the situation. It is now over two years since the reaction set in to the feverish business enterprise following the Ports- mouth treaty. In the early months of 1907 the share market showed signs of collapse, bubble companies burst, and shares tumbled indiscriminately from the highly inflated figures of January to the more natural but disastrous quotations of March. From then until no quotations have continued at a very low level, the domestic situation being influenced by such foreign events as the American panic and slump in China. But another factor con- tributes to the present depression and clearly distinguishes the situation of to-day from that 1907. Then it was at once recognised that the slump was due to entirely national causes, was s reaction upon a too sanguine and widespread investment and speculation; to-day the depres sion, brought about about largely by foreign factors, is accentuated by serious developments at home, of a personal character, which have caused general public distrust of all companies. This is one of the important signs of the times that should be considered by any conference of business men.
COMPANY CORRUPTION AND MISMANAGEMENT.
Two things seem to be in most need of reform in the conduct of public companies at present. The law and public opinion must both be exercised for the improvement of the standard of integrity by impartial, rigorous, and prompt judgment on offenders, and shareholders should insist on competent men managing their affairs. One does not want doctors of philosophy at the head of banks, or doctors of science running mar- iue products companies. It is as much because of the incompetence of officials as of the corruption of certain company directors that the credit of business circles has sunk so low, not only in the eyes of the foreigners but of the Japanese people also. In the past few months there have been some very disturbing revelations of mis- management due to fraud, negligence, and general incompetence. To mention only two large companies, a situation is revealed that suggests a general disease rather than an isolated
case.
In the matter of the Dai Nippon Sugar Co., with the details of whose failure you are acquainted, no action has yet been taken to After the resolution had been put to the punish the guilty, principally because govern- meeting and carried nem, con. Mr. W. S. Jacksonment officials themselves are involved in some thanked Mr. McLeod on his own behalf, and also on behalf of the staff for his kind remarks, and the shareholders for endorsing those remarks by voting a bonus, which he need hardly tell them would be greatly appreciated.
The Chairman announced that dividend warrants would be posted immediately, and thanked the shareholders for their attendance.
The meeting terminated with a vote of thanks to the Chairman, proposed by Mr. H. J. Craig.
SHANGHAI COMPANIES.
From the list of agencies printed on the front page of the report you will see that the Association now has it's own offices in Sydney The Shanghai Horse Bazaar Company, and Seattle. The Association is very ably Limited, pays a dividend of 10 per cent for the represented at these ports and also at all its past year, writes off buildings Tls. 6,470, and agencies and branches, and is in a soundercarrias forward Tls, 10,196. position to-day than ever it was, and with the continued support of it's shareholders, let us trust that it will continue to prosper and that better times may also be near at hand both for it's shareholders and consitituents.
The Directors of Messrs. Hall and Holtz, Ltd., have decided, subject to audit, to recom mend a dividend of 10 per cent and carry for- ward over $9,000.
Exchange, and Investment Fluctuation Account. This Account shows an' increase of
The China Printing Cd Ltd. pay a dividend $114,076,33 and now amounts to $199,234,10,❘ of 7 per cent and carry forward Tis. 2,411. the increase being partly due to the lower rate of exchange and partly to the increase in the Telegraphic advices have been received that "value of our investments. A list of all the Association's investmenta lies on the table should any shareholders wish to see it. Of the $535,407,23 due by agencies, premia in course of collection &c. on December 31 last, about $472,000 has since been collected.
the Chinese Engineering and Mining Co. will pay an interim dividend of 18. 6d. per share, free of tax, on account of the year ending Febru- able on the 1st of May. ary 28th 1909. The dividend is declared pay.
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move.
way--[Since this was written our correspondent has reported that four of the directors have been arrested-ED.] In connection with the Imperial Marine Products Co., which has lost hundreds of thousands of yen the law seems to have begun to This has resulted in the arrest of the president of the company, Dr. Suzuki, M. P., one of the leading progressists, and also an ex-M, P., an anditor of the company, also newspaper proprie tor, bank auditor. etc. If these persons are found guilty and are placed behind prison bars a decided advance will be made towards clearing the commercial atmosphere. The impending arrest of a lieutenant general, director of the company, is rumoured. Now these men are not of the contemned Yokohama business breed, so often referred to by apologists when explaining the causes of Japan's low reputation in business. They are not the ordi- nary business class at all, and the same may be said of the great majority of important men implicated in charges of corruption and fraud. It may be stated with truth that if they had been trained in business they would never have done such things; it is their misfortune that they held important posts at a time of depression demanding the exercise of business ability and integrity. These men would do very well so long as everything was going on prosperously, but they are not the type to weather difficulties. Schools do not produce them. If not guilty of
A