KAILAN MINING ADMINISTRATION
HOUSEHOLD: COAL
Supplies may be obtained at the following prices delivered in quantities of not less than half a ton.
ANNOUNCING REDUCED PRICES
Peak District...
...$18.
Bowen Road and Lower Levels
...$17:
Pokfulum "
***
$18.
Repulse Bay
....$23.
Kowloon
...815..
$29.
Shek 0 and Stanley.
All prices are per metric ton and deliveries will be made in this unit.
DODWELL & CO., LTD., Agents. -
HAPPY
AND
PROSPEROUS
1935
The above Greeting is cordially extended
to YOU ALL by
THE WING ON CO., LTD.
Hongkong largest Departinent Store
:
NEW
YEAR
HOLIDAYS
JAN. 1st & 2nd.
(TWO DAYS ONLY)
All Departments will be re-opened to business on Jan 3rd.
The HANG HING NEONLIGHT Co.
19 B. C. Shameen, Canton,
has been purchased by our firm.
Canton, 31st. December, 1934
KOEHLER & CO.
LANE CRAWFORD'S
STORE WIDE
SALE
COMMENCES
2nd JANUARY 2nd
All
Departments.
Participating
WORTHWHILE BARGAINS!
LOW PRICES! BIG DISCOUNTS! BIG SAVINGS!
HONG KONG DAILY PRESS, TUESDAY, JANUARY 1, 1935.
CEMENT COMPANY'S
COMPANY'S AFFAIRS
Shareholder's Criticism
At Yesterday's Meeting
Resolution Passed To Reduce Book Value Of Capital
A spirited critickam of the policy of past Directors of the Green Island Cement Company was voiced by Mr. H. O. Odell, at a meeting held yesterday in which shareholders - were asked to pass two resolutions authorising the reduction of the Company's capital from $6,000,000 to $1,954,940....
די
Mr. J. Scott Harston was in the Chair and after he had pro- posed the resolution, Mr. Odell proposed an amendment. In the course of which he suggested that the prospects of the Company had been bad for quite a number of years and that the expendi- lüre on the new machinery was not Justifled.
The amendment was not seconded and when put to the meet- tug, was defeated.
PRESENT POSITION REVIEWED
CONFERRING OF DEGREES
To Take Place On
-Monday Next
H.K. POLICE RESERVES
ORDERS BY THE HON. MR. T. H. KING, INSPECTOR GENERAL OF POLICE
Returned From Leave
336.42 against General Reserve Ad- count, and $3,132.31 against Bad Debts Reserve Account. In short; the proposals before you wil· mean, firstly, the cancellation of all shares partly paid-up in re: spect of which calls are now out-- standing and secondly, the can- The next Congrégation of the - Mr. Dudley Leonard King, De- cellation of two-thirds of "the | University of Hong Kong wil beputy Superintendent of Police amount palt up on the fully-paid held on Monday, January 7, when (Reservel returned from leave shares. which will in consequence ( degress will be conferred on suc, and " resumes· command of the reduce their nominal amount from cestul graduates of the various Hong Kong Police Reserve, $7.50 to $2.50.
faculties. by his Excellency the from 1st January, 1935. Chancellor.
Appointment On the return from leave of Mi. Dudley Leonare, King, Deputy Su- „ perintendent of Police (Reserve), Mr. "Cyril Champkin. resumes his substantive rank of Assistant Su- perlitendent of Police Reserve, as from 1st January, 1935.
In considering the application of our losses on Capital Assets in Immediately after the Congre- the manner shown, your Board gation Ceremony, HE. S William anticipate that further trading | Peel will officially open the School "losses will be experienced in view of Surgery Building.
4.
The Resolutions
← ཊྛ,
|
1.5
C. CHAMPKIN,
Acting. D.S.P. (K). Hong Kong, Dec. 31, 1934.
I now beg to formally propose the following Resolution (No. 1 in the Notice convening this Meeting) as a Special Resolution: 1. That the Capital of the Company be reduced from any shareholder may raise there- $6,000,000 (divided into 800,000 on. shares of $7.50 each) to 31,954,- 940.00 divided into 781,976 shares of $2.50 each and that such re- duction be effected in manner fol- lowing:
Shareholder's Criticism Mr. Odell:-Mr. Chairman, as it is my intention to presently move an amendment to the resolution. before us, I wish, with your kind (a) By cancelling Capital which permission to make a few obser- has been lost or unrepresent-vations which in my humble ed by available assets to the opinion will reflect the true state extent of and by the caricel of affairs obtaining in the opera- lation of the 18,024 shares of tons of our company during the the Company in respect of past eight or nine years. Before which arrears of calls are proceeding I wish to emphasize the now outstanding but such re- fact that I am not here to attack duction to be without pre-
or to destroy but am excercising judice to the Company's my rights as a member of this right to sue for and recover
company to present a case which all arrears of calls now out I honestly believe requires im- standing and due in respect mediate and intelligent attention of such shares.... 2.
before passing on the resolution placed before us to-day.
of the probable continuance, foř some time to come, of adverse trade conditions and outside com- petition, and for this reason your
·Board are of the opinion (which opinion is shared by Messrs. Lowe, Bingham & Matthews) that the General Reserve Account should be retained on our books. In this connection it is necessary for me to emphasise that whatever may be the eventual result of the Company continuing business. It is essential that, it shall carry on Litli Buchi time as the Supporting the Chairman were, become non-revenuc-producing to present. stocks of limestone Messra. J. H. Taggart, A. L. Shields, such an extent that their reter shall have been consurped be- T. E. Pearce, Ll Tse Fong and Siction at their present values of cause these stocks, of raw mater- Robert Ho Tang (Directors), A. our books will no longer reflect lals, in any form other than manu- Ritchie (Auditor) R. A. Wadeson the true position of the Company. Iactured Cement, would have little (Solicitor) and T.C.T. Beck (Act- When It became fully apparent or no realisable value. In other ing Secretary), The following that some definite, drastic action words, assuming the Company shareholders were present: Messrs. was essential in order to preserv were to proceed to liquidation Frank Austin, (Attorney for A. J. the foundations of our unidërtak- | now, it would still be necessary David), M. A. Figueiredo, G.BL. |ing, your Board, in considering the to continue the production 01 Grist, H.J.M. Figueiredo, Leung measures to be taken, sought the Cement in order to realise its Kam Cheung, NVA Croucher, H. advice of Messrs. Leigh & Orange, stocks of raw materials to the 0. Odell, F. M. Ellis, A. J. Edgar, M. Architects and Civil Engineers, best advantage. The present po- E. Polici, F. E. Bilva, A. Kitchell, K. and of Messrs Lowe, Bingham Hey of your Board is therefore. C. Mark, Yu Chee Lick, Lo Yuk and Matthews. Chartered Ac- to carry on the Company by the Tong and Tang Kit Wai
countants, for the purpose of re-most economical means until such (b) viewing the book values of the time as the large stocks of Company's Land and other Assets more important taw materials respectively. These specialists have been consumed and, at the have carefully considered the end of that period, to consider The purpose for which this book values of our Assets, and carefully whether or not it will be Meeting has been called is to con- have reported in detail. to your possible for the Company-relicy- sider and, if thought it to pass, Board and, as advised in the ex-ed of the incubus of heavy depre- with or without amendment, planatory note attached to theciation charges consequent the Special Resolution and the Notice convening this" Meeting, the writing down of Capital-As- Ordinary Resolution set out in the coples of Messrs. Leigh and sets which Shareholders are now Notice which has been in your Orange's Valuation and of Messrs. asked to sanction to operate on hands for the requisite period and Lowe," Bingham and Matthews'; a profitable basis. which has just been read.
Statement of Assets and Liabili- Attached to the Notice is an ex-tles before and after re-valuation planatory note dealing with the have been made available for in- subject-matter of the Resolutionsspection by Ghareholders on appli- and therefore, in formally propos-cation to the Secretary Inre- ing them, it is my duty, as Chair-viewing the book values of our man of Directors, to acquaint you Assets, the aim throughout "has with the considered views of your been to arrive at values which Board and to amplify the informa- tion which has already been given to you.
CHAIRMAN'S SPEECH
Addressing the meeting, the
Chairman said:-
The Reduction of Capitai nów recommended is the culmination of very serious thought. and de- liberation од the part of your Board, and it is submitted without reservation as being the most prudent step which can and should be taken in the best interest of the Company, having regard to the circumstances in which it finds itself. “
The Root Causes
HOW
|
more clearly reflect the true post- tion of the Company, having full regard to its present circumstan- ces.
Nearly Four MINion Lost The result of these investiga- tons entails an aggregate reduc tion of our present book values to the extent of $3,982,760.41, and
after
!47
Book Lossen Only
our
прод
In conclusion. I would ask Shareholders to appreciate the fact that the losses now being written off are on book values only and that," in the event of the Company surviving and entering upon a new period of prosperity at some later date, their part cipation in such prosperity will in no way be affected by the step now contemplated.
I now turn to the Resolution numbered 2 set out in the Notice calling the Meeting. The purport of this Resolution is inerely to consolidate the reduced. nominal value of the Company's Shares from $2.50 to $10.00 each, the latter being considered a more practical value allowing for better control and easter handling. Fractions of the new thares will be sold for the benefit of holders.
By cancelling Capital which has been lost or is unrepre- sented by available assets to the extent of 95.00 per share
I have studied at length the re- ports of proceedings held at the meetings of our company from the
in respect of each of the years 1925 to 1933: Looking back remaining 781.976 shares of it is really astounding to follow the Company and by reduc- the notes of optimism" struck. ing the nominal amount of
by the various Chairmen in cer- each such share from $7.50-
tain portions of their speeches, to 82.50.
Permit me to dwell on a few of
And I shall be much obliged if theeg flluminating Frophestos, some shareholder will kindly firstly in so far as they touched on second that proposal, whereupon actual business prospects and questions thereon, may be raised secondly insofar as they emphasiz
ed the necessity of the purchase of the New Plant.
Mr. Odell then quoted at some lengths from the speeches of vari- ous Chairmen of the Company since 1925. Continuing, he said: -
Seconder's Remarks Mr. Frank Austin: We have listened to the explanation and the detalls given by the Chairman of the necessity for the reduction of capital and I feel sure that all shareholders will agree with the
"Unwarranted Optimism" proposed reduction as the most
"Gentlemen, in carefully analy- practical thing to be done in the sing these speeches you will and circumstances. It is with much that every possible opportunity: regret that we hear of the neces- was taken to inject unwarranted sity for this step to be taken but optimism which lead to an expen- I feel sure that all shareholders diture of over Four Million dollars will support, it and see it through,
on a new Flant. I say unwarrant- With these few remarks I haveed because even as far back as much pleasure in seconding the 1922 it became noticeable that the Special Resolution as read by the imports of foreign cement were Chairman.
increasing. I have not been able The Resolution which I have to secure the figures for the years just read having been proposed 1925 to 1930 but judging from what and seconded as a Special Resolu- took place between 1922 and 1925 tion. I shall be pleased to ent is fair to assume that Imports deavour to answer to the best of my ability any question which
(Continued on Pare 7)
START THE NEW YEAR RIGHT
the fullest consideration. your Board recommend that this loss should be provided for by re- ducing the Company's pald-up Capital to the extent of $3,967,- 983.98, the balance of $14.776.43 to be applied as to $247.50 against The root causes of our prerent Return of Capital Account, $11, troubles are bad trade conditions, generally accentuated by tariff dimculties and in particular by severe and unremitting competi- tion alded by a favourable com- petitive exchange: To the latter. your attention was first Grdwe from this Chair as far back as the month of March, 1932, when the Company's Accounts for the year 1931 were under review. Tae. existence and effect of this com petition continued to be felt more and more acutely, and at the An- nual Meeting held in April, 1933. its seriousness was stressed by myself as Chairman, and a "warn- ing was given that your Company could not reasonably pe expected to survive a continuance of the intensified dumping of Cement, which was then being experienced in this Colony and elsewhere. Again, in April of this year it was my unpleasant duty to advise you that the Company had been operating under extremely adverse conditions, the very serious effect of which had forced your Boa to go so far as to open negoti tions for the disposal of portions of your plant
You will therefore fully appre- clate that the adverse influences affecting the Company for the past four years have had the unremitt ing attention of your Manage=" ment, and it is only after this long and painful experiences dur ing which no effort has been "spared to defend your interests, that you are now asked to acknow ledge the loss of part of your in- yestment in this undertaking, the hope that the remainder: have the better opportunity: survive.
By Briefly, Gentlemer
ly two-thirds_pf.
sets can be bota been lost in so
BY USING
Carnation
BRAND
EVAPORATED MILK
BEST KNOWN IN THE WORLD
KNOWN TO BE BEST IN THE WORLD