Money and Markets
SINGAPORE STOCK
MARKET.
FRASER & CO.'S WEEKLY REPORT.
SAIGON RICE MARKET,
The Export and Import Co., Ltd. of Cochinchinn send us the follow. ing Bi-Monthly Circular, from Saigon, dated May 30
Our last circular, was -dated Messrs. Fraser & Co., Singapore, 1 May 15,' and during the interval in their weekly circular dated June our market has ruled very quiet. 10, state-
Sellers have predominated in most of the local industrials since our lash report, with the exception of United Engineers, Wearnes, Gammons and Hammers which have remained steady with sellers some
what réserved.
The
issue of the half-yearly balance sheet of the Straits Trad ing Co., may be anticipated short ly, but the additional interest in the share usually in evidence from investors at this period has been noticeably lacking.
The price of Tin, for the three months position firmed up sharply earlier in the week from £102.2.0 to £100.17.6, but subsequently react ed to £104, the closing figure, with shares registering small gains on balance. Straits shipments of the smelted metal for the first half of the month are reported "as 3,700 small increaso tons, shewing a against the corresponding fortnight in May.
Business in Rubber shares con- tinues extremely difficult to nego tiate and numerous selling orders remain urrexécuted.
-4
Mining.-Business was as usual chiefly confined to the smaller- priced stock and Sungei Luas changed hands at 81.05 and now offer slightly under. Penawata were done at 88 cents, Kuchias 64 cents and Kinta Tin Dredges at 81.02). There was nothing doing in" sterl ings, but there are email enquiries for Ayer Hitam Tins at 11/- and Tronohs at 10/3, whilst in Aus- traliana, Puchongs were booked at 9 with further shares wanted at 8- Raubs opened with markings at 815.80 and later business was put through at 15.75, whilst Malayan 'Collieries have been idle at $27.50. Johans could be placed at 90 cents ev. div., Petalings 83.50, Sungei Ways $1.65 and a small parcel of Temengors at market rates.
The firmness reported in our last circular did not last long, as owing to the heavy drop in Silver business with North China came automatically to an end, and" we have to-day to register the lowest prices touched since the commence ment of the presont season.
There is stil!, a weak undertone in the market but as our prices are now on a" parity with Rangoon quotations, a 'demand from Indian ports may set in ore long.
Our total exporte to date amount to a little over 427.000 tons, as against 834.000 tons for the same period last year
Wo quote as follows for shipment, during June/July, "
No..
Rice,
1 Pycnow Long 25 per cent.
Grokens
1 Saigon Long 25 per cent."
brokens
1 Saigon Round 25 per cent ... brökens ...
1 Ordinary European Qual.
25 per cent, ............. 2 Japan quality 40 per cent.
brokens....
2 Java quality 50 per cent.
brokena
84.00
3.80
3.80
3.80
3.40
1 & 2 Saigon Broken mixed 3 Saigon Broken rice. 2.10
Saigon cy, F.O.B. por picu
HONG KONG DAILY PRESS, THURSDAY, JUNE 25,
"THE CHARGES AGAINST LORD KYLSANT.
COUNSEL ALLEGES DELIBERATE FALSE REPRESENTATION" TO R.M.S.P. SHAREHOLDERS.
TRANSFERS FROM HIDDEN RESERVES SUGGESTED.
What the Lord Mayor of London (Sir Phene Neul) described very serious accusations." woro made againdt Lord Kylsant, ehirman of the Royal Mail Stonm Packet Company, when: he answored summonses at the Guildhall yesterday for publishing false directors reports for 1020 and 1927.
Mr. H. J. Morland, a Chartered Accountant, of Messrs Prico, Waterhouse and Company, and former, auditor of the company was charged with aiding and abetting. Counse! said it was Mr. Morland, and not his firm, who was the auditor at the ma- terial time.
Immediately the Court openeda new charge, brought by the Director of Public Prosecutions, was made against Lord Kylsant alone that of issuing a prospectus, in June, 1025, which, it was alleged, provailed upon the public by false statements, concern- ing trading profits, to subscribe £2,000,000.
A PROFIT, OR LOSSES?
1931
CANADA'S LATEST DESTROYER.
EVERYTHING CENTRALISED.
CREW'S COMFORTS.
Canada's faith that her future? lics on the watör has given birth to the first ship to be built special ly for her own Navy. H&M.C.8. Saguenay, which commissioned at Portsmouth on May 22 and was to eross the Atlantic catly in June. **
Sho gave the impression of a miniature cruiser rather than of a destroyer," which is natural when her functions are considered. She must be ready to face extremes of temperature varying between 20 degrees below zero and nearly 100 degrees Fahrenheit.
This presents difficulties for 150 mon cooped up with amass of machinery in a small ship, with nothing but thin steel plates bo- tween them and a tropical sun or à frozen sea. Mr. Morland was auditor of the The problem is solved in this The falsity of the directory' ro- ports, for which Mr. D, N. Pritt, R.M.B.P., and it was fair to state destroyer after the manner of the K.C., Counsel for the Crown, at once that he was not the audi-latest battleship, by centralising claimed Lord Kylsant was person-tor of any of the six 100 per cent. ally responsible, lay, ho said, in subsidiaries. representing to the shareholders that in 1926 and 1927 the R.M.S.P. group had made large trading profits when, in fact, they had made serious lossca.
The true position was, anid Mr. Priit, that instead of the stated profit of £355,000 in 1926, there was a loss of £804,063, and in 1927 there .was a joss of £630,300 instead of the profit shown of £189,880.
"The figure was wrong," he de- 3.20clared, by £1,169,088 in 1926 and 2.70 by £1,120,249 in 1927." Hidden reserves, it was alleged, which had no special connection with the years concerned, were passed off as profits.
of
134 lbs. grcss including export duty.
Paddy,
Baclieu best Long. Long ordinary Gocong best Round Round ordinary
Cochinchina low grade Cambodgian White (long) Cambodgian Red (lowest
grade)
Saigon cy, F.O.B...per picul
82,70
2.00
2,80
9:70 2.60
£600,000 Overdraft."
Counsel continued:..
the supply of necessities and com- forts. Central heating, control ventilation, central cooking, and central stores are a few examples.
A recreation space and a Bick bay with violet rays and other con- veniences have been provided for
"What the Crown alleges is that Lord Kylsunt did, in 1023 and in 1997 by his profit and loss account and balance-sheet-for the form of which we alleged Lord Kyleant the crow. was himself personally responsible
represent that the R.M.S.P. group had made large trading profits, whereas in truth the group had made serious losses."
"With regard to Mr. losses."
With regard to Mr. Morland we say that in his capacity as au ditor he acquiesced in that course
Even iced ginger beer and iced water are catered for by a central refrigerating plant.
Each man has his own double locker on the communal mess decks, which are airy and spacious.
It is all very shocking for a man who believes that discomfort apella efficiency. But the smaller the ship the greater the justifica of conduct and signed the reporttion for providing comforts. at the foot of the balance-sheet
Despite her heavy scantlings to stating that the balance-shbet gave resist ice, she exceeded her designed a correct description of the com-speed of 35 knots, achieving more
than 30 knots on her triala.
Among the statements made by pany's position." Mr. Pritt were:
years
"One of the matters of which the That Lord Kylsant's remunera Crown makes complaint," said Mr. 2.50 tion from the R.M.S.P. was £3,000 Pritt, "la that for these two
a year except when the company large hidden reservos-the existence 2,50
paid a dividend on Ordinary of which was perfecty legitimate shares, when his commission wasero passed off as profits for the
per cent on gross takings. In year." 1927-it amounted, he thought, to £23,000.
of
Rubber. There is practically us130 lbs. gr. including export duty,
market these days in Rubber shares, packed in second-hand
the only business transacted being
in Bukit Kepongs at 47 cents and
a small parcel of Malaka Pindas made, 50 cents Haytors and Ulv Pandane have buyers, but apart from these stocks, practically every other share is on offer.
bag.
RAW SILK.
NARROW FLUCTUATIONS.
Industrials. A small parcel of Straits Tradera found at 820.28, but shares are now available at 828.
Messrs. Pentreath & Co. have Hemmers came to business at $180. Wearners 26.45 and 86.50, Cycle forwarded us the following letters & Carriage 25 cents, and an odd lot of Fraser & Neave Ordn. at dated June 1 which they have re- $11.85. Central Engines are en-ceived from Messrs. Hornby, Home "quired for at 24 cents and further | Tryk & Co. of Liverpool:---
Wearnes at $8.40, also Gammons
present.
There
sellers of are
That the crucial part of the false prospectus to raise £2,000,000 was expressly drafted by Lord Kylsant; and that it was about the timi when there was a bank overdraft of £600,000 that Lord Kylsant said: "We shall have to make a fresh
issue."
Mr. Pritt said, the prospectus contained a statement intended to convince the reader that, the ecm pany during the past 10 years had made a trading proht every year of about £500,000, whereas the Crown proposed to show that for seven years there had been a heavy trading loss.
The complaint which the Crown company was that it was making made in regard to this particular a modest loss, but was nevertheless fil a gap of the R.M.S.P.. brought in to pay a dividend to
In 1928 it made a trading loss Mr. Pritt went on to refer to of £21,941, but it brought from its the 1990 report of the directors reserves £2,500, so as to show a "So far as I know," he said, "Mr. surplus for the year of £40,656, and Morland is not responsible for these declared a dividend which absorb ed net payment cf £85,000, So words, but Lord Kylsant is."1"
that in that year, while making a Ho then read a number of extrading loss of nearly £22,000, it tracts from the report and from paid in dividends to the Royal
Mai: Steam Packet £55,000. the profit and loss account. Re-
In 1927 the profit of that com- ferring to the credit side of that pany was £28,657, but it brought account, Mr. Pritt id
in from reserve £23,230, and do- "Then come the words on whichclared a dividend which again ab- sorbed £55,000. Therefore, in the a very great deal turns. They are
two years the R.M.8.P. collected: Balance for the year, including an apparent profit of £110,000 from its subsidiaries, which sum in truth dividends on shares in allied end
was composed of £0,712 profits, other companies, adjustment of £87,780 from reserve, and £16,538, senen cames from taxation reserves, less depreciation which in on feot, etc., £439,212 128, 18.''"--
Mr. Prist added that there were then two minor items and then cama the phrase, "transfer from reserve fund, £150,000.
nowhere."
A
Com-
at 812.60, the latter being parti- Narrow fluctuations have been ularly scarce in the market at recorded during the fortnight Singapore Cold Storages at $4.80, under review, and values are three Eastern Uniteds at 225.25 and to four points higher than a fort Straits Steamships at 2211, Mc-night ago and about 7 points dear
£300,000 Problem. Alisters 870, also United Engineers
Referring to the Nelson nt 87.35 with a buyers slightlyer than the recent low record of under. In the Preference Issues, 2.13c. for July delivery.
"That," he said, "is the essence
panies, Mr. Pritt said 1927 disclos- ed a curious state of affairs. The United Engineer Prefa. receded to
The New York and Chicago cer: of the charge."
companies made a trading profit 811.30 business done, Fraser
Ho submitted that the words be- of 38,113, and paid in dividend Neave Prefs. are wanted at 89.50 tificated stock on the 21st alt. total-Sir John Simon, for Lord and Consolidated Tin Smeltered 1,700 bales (440 bales Grade A Kylsant, and Sir Patrick Hast-ginning balance for the year," £6,142. In the same year they de Prefs. offer at 173. London shares and 609 bales Grade C).
inge, for Mr. Morland, made it coupled with the words, "transfer elared bonuses of £300,000, and cabled last night are slightly firmer
BOTYSB that they handed over with Shell Transports, a better Japanese port stocks on the 13th clear that their clients challenged from reserve" was a clear repre-paid these to the R.M.S.P. in the market at 40/3 middle. Dunlops ult. amounted to 137,300 balea, com every Allegation and were anxious sentation to the shareholders that £300,000 in cash to the R.M.S.P., being quoted at 16/. middle on the pared with 199,400 bales at the end to deal with them at the first op the company had earned on its and in the same week the R.M.S.P. handed back to them £300,000 in portunity.
trading £130,000 oud, and that the payment. for certain charos. bacco £3.10.6. Hong Kong Banks of April.
transfers from reserves amounted to £150,000 in all. 1
new basis: British-American To
£102.0.0,, Duffs 1/6, Imperial To- Mail advices from New York in- bacco £4.5.3, Courtaulds 25/8. Im-dicate that while, spot Raw Silk perial Chemicals 13/3; Unilevers 30/8 and Czecho-Slovakia 8 per is not plentiful and at cent. 2110.10.0.
EXCHANGE RATES.
[BRITISH WIRELESS SERVICS.]
RUGBY, June £3.
124.257
stocks
are:
COUNSEL'S OPENING STATEMENT.
7
AFFAIRS OF SEVEN COM-
PANIES INVOLVED.
poorly assorted, importers do not and much incentive to carry heavy supplies on feebunt of the steady deeline which has 'taken place, and prefer, to make contracts for ship- ment from Japan...
Mr. D. N. Pritt, in cponing the According to cables from the case, said they would be concerned other side, hosiery sales ato ef to some extent with six other com 4.80 11/16limited extent, but prices are be panies which are subsidiaries of 34.91
ing maintained. Piece, goods con the Royal Mail Steam Packet Com *25.001
tinue moving in fair volumo at unpany in that the entire sharehold $12.09.2
92.96)
profitable prices. deling was invested in the M.8. 20.48 The new crop cocoon purchasing They wero generally called a bun
season is now, in progres), and as dred par cont, subsidiaries. has been the case in previous years at this time, somo further easiness may develop in Raw Silk values.
Close New York Friday:-July, September October and December
Paris New York
Brussel Geneva Amsterdam Zani
Milan
Berlin
Stockholm
18.14
Copenhügen
18.101
Qalo
Vionna
Prague...
Helsingfors
Lisbon
18.101 34.02 1847 193 110 49.85 378-7 817. 3 13/18
82.200.
35 9/16:
Rio
Madrid Athens
Bucharest
Buenos Aires'
Montevideo Bombay Shanghai Hong Kong ng Yokohama'
Silver
Spot Forward
18/1
1/27·
27-1
18/3/10
His Balary As Director £3,000 to £25,000,
From Hidden Benerves, "The facts were," said Mr. Pritt, "that that balance of £439,000 was only brought about by wholesale transfers from hidden reservos which had nothing whatever to co with that year at all, and, in fact had become free a couple of years before, and that this is simply a deliberately false representation to the shareholders that the com- pany is making a trading profit when in fact it is making a serious trading loss.asy
Mr. Pritt procorded to read a report by Mr. Morland, as audi- tor, which stated:
"In my opinion, the balance- sheet is properly drawn up 80 to exhibit a true and correct view of the company's affairs as shown by the books of the company. Lord Ky sant's remuneration in
One great source from which the R.M.S.P. was £3,000 a year, drawings were made, said counsel, except when, as generally happen-were the six 100 per cont, subsidi
companies of which Lord ed, the R.M.S.P. paid a dividendary
Kylsant was chairman and which The new market has displayed a of 6 per cent on its ordinary were controlled by him
shareholdings. In that case his
Wool Tops.
weak tendency pince, ¿ta inaugura- | remuneration was a commission of tion on May 18 when September half per cent, on the gross takings. It amounted, he thought, in 1997, opened at 74:306 and
10 £20,000Moothane
In 1920 the dividend was only four per cent, consequently Lord Kyleant ad nothing but £3,000.
Close New York Friday-Sep- teraber 1-100 March 71,60c.
Dealing with the acconte of the meat transport feet which w chartered by the RMS.P., Pritt said
(Continued on mers Column)
Mr.
That £300,000, he said, figured as part of the item. "2007,000 balance for the year including dividende on shares in allied and other com- panies."
Mr. Pritt said, that the Pacifio Steam Navigation Co., another 100 per roat, subsidiary, made a trad- ing loss in 1928 of £183,765, but they paid dividends by bringing in certain old reserves, and treat- ing as part of the profits for the year profits from the sale of ships. They showed an apparent profit of 200,632, and paid a dividend of £60,000 to the IL.M.S.P.
The figures cf 1927 told almost the same story.
Coming to the R.M.8.r itself, Mr. Pritt said:
Tha profit shown by the R.M.S.P. on the face of the ne counts for 1928 is £355,325. The true positch, we say including tho Josses in the subsidiaries, is that there was in 1926 an actual trad ing loss of £804,803, and, somcher wo have to find out how an appar est trading profit cf £335,000 odd is to be reconciled with a true! trading low of £804,063,"4, 2
We say that the figure in 1920 was wrong by £1,180,088, and in 1027-it was wrong by £1,120,249;
(The remainder of Mr. Pritte
will: Opening
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गु
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WIRELess Calt
V.P.G.N. 600 MATIKE.
-DRY DOCK-
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Electric Crane at Sea Wail.. Capable of Lifting 100 Tons at 70 Feet Radius.
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THL Addam: “Tazkoodook. Hess Lane, TELEPHONS: 3211 Cats Flan: "O" Oviz "Am.
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