HUMPHREYS ESTATE AND FINANCE CO., LTD.
A LIVELY SHAREHOLDERS'
MEETING.
Mr. J. M. Alves Provokes
a Warm
Discussion.
THE HONGKONG, TELEGRAPH
EXTRA.
HONGKONG, SATURDAY, FEBRUARY 15) 1919:
(a) The amount of the book Amongst other property of the Answer. The explanation is decide on a dividend of 80 cents of the directorate. It dommenet values of such properties as Compray the development of that a small amount of furniture only. Will the Directoreexplain falloy because a particular abire are fully developed?
which will come under.consider to the extent of $50, has been their reasons. 2.
hol or either polstenen «m «larg (b) The book values of sochatim is the piece of grand sold and paid for. properties as are not developed between Carnarvon and Mody Mr. Alves, interposing, sail - or only partly developed ? .
Roads in Kowloon. The DirecI am very glad to know that the tors would point out that only Company are furniture dealers Answer.-The Directors do not consider it desirable in the
about two years ago the Com- pany had over 40 houses in
interests of the Company that the particulars asked for, should ba given.
2. Does the suonit of $150,709.55 for rent include any rent on undevelopal properties? If so, please stata how runch,
Answer.-Yes, $6,500 net, 3. Has a proper valuation of the Company's properties ever been made? If 9, please state when and by whom and what was the valuation given For
(a) The Company's develop el properties.
(Secretary), II. W. Luker was previously deposit, cause such valuation figures to be
the
L'I
other side
the increase
Kowloon unlət
to the cost of K. M. L. 13? lu view of the appreciation of land values at Mongkoksai, have the Directors thought of any scheme so as to make the best of this bad bargain which undoubtedly is responsible for a good pension of the $905,000 ue der Mortga ge ecount, the interest on which has absorbed good! slice of our annual revenue?
B
INBULANCE RESERVE FUND.
GENERAL CHARGES.
If the
of
Answer view of the fset share bokling or may be regardedir slost this pafics of the priest cartain quartera es im porilna täst year incln ie aan of $87,095.00his services as a director would which is the profit from the sala be of any value to the Company. CASH IN HAND AND AT BANK of properties at caque would also poutant that the
86,351.32
regularly relied upon, thì Dites greater experience a
a turretor has 10.-In view of the heavy pir-tors consider it desirable that in the management of the affairs, 7. Will the Directors give the ments for interest which pro the Company's position' shoul of the Compay the gakiter is shareholders some information as bably includes payment for be strengthened by making the his vàlua to the Coníp ný^ia s interest on ovenlafts occurring appropriation referred! 'to in the member of the Beard or these at any time, will the Directors Report, more particularly sincs reasons the suggestion made cle state the amount of cash in hand the profits have not sufficed to not appeal to the Board as Bai and at Bank separately?
make any appropriation of this in the interests of the Charany. Answer. The Directors have nature during the hat three 19—–—Without imputing abo no objection tostating the amount years, except to the extout of thing to the pressut Birch won of cash in hand separately. The $3,328.85.
not such a plan be word conduct Company have only a very small
to the attainment of charten overdraft at the present time.
15. Picking up this item from on to the interest of the Company PROFIT & LOSS ACCOUNT.
the P. and LA/C from 1914 1 generally, and sho"silvờ thể The ordinary annual generalfapproval. lusurance Iteserve
11.-Interest un Mortgage andi
notice the following 1914 tendency towards" "sihecures meeting of the Humphreys Estate Fund is increased by $1,000.00, (b) The Company's under- Answer. This property was Deposits, 366,517.64.-It appears about. $14,307,97; 1915, about which must necessarily obesin and Finance Company Lt, which represents premis on fire eloped properties.
purchased many years ago l'art that the Company besides rais 16,118.21;
when selections for directorships 1916, about was held at the Hongkong Hotel risks underwritten by ourselves Answər.—No general valuation of it was subsequently developed.ing money by mortgaging the 13:839.03 1917. about are invariably made from a li this morning. Mr. D. E. Clark pre Mortgages by the Campany have has been made that lam aware of. The deinand which has arisen for Company's properties also invite
$15,268 17; 1018, build number of Hongkong bd unesal sided and were there presat increased, but the amuant under 4. Will the Directors adept the Kowloon property has naturally deposits at tempting rate of in- $17,070.30. In va consecutive who apparently farm wi Messrs. J. Scott Hasrton, A. the healing Sundry Creditors practice of having a valuation of turned the attention of the Direc-terest apparantly per outers $76,402.66 have ben speut anofficial association of Piretorn? Lang, W. L. Pattenden, an Ahas decretsal. The explanation the Company's properties madest turs to the balance with a view to Can the Directors explain why irrespective of the ants
Answer.The munber of men Forbes (Directors). G. app of this is that money which least once in every two years and seeing whether it can be rethe amount of deposits was not rent received. Do the Directors Ju a comparatively smil!“cone- muneratively deals with in any atd in the balance sheet? is not consider such expenditure services may generally he con-
junnity like Hongkort wh solicitor tothe Company, Messrs repayable a! call, has printed as a footnote on every way. Present prospects suggest ait part of the Company's business excessive? F. J. Chapman, J. It. Capell, been withdrawn and placed annual balance sheet for the in- Promise of this. The $905,000 due to receive deposits, and how are
silered of value tra Umirany as F W. 1. James, C. B. Brown,jagainst mortgage. Among the formation of shareholders? [on mortgage which is referred to such deposits "secured?
Answer: The Directors members of a particolar Ikan J. Spittles, J. Heunessey Seth, assets you will notice mortgages Answer. The Directors will principally represents moneys lepsits are included in
the not consider the expenditure re-are necessarily limite!. As I H. W. B. Kennett, T. Lesinan, H. and hans have increased. The give this question their con-borrowed within recent years amount of $905,000 shown muferred to excessive. In fact, a have pointed out in my Hat Percy Sinith, F. W. Stapleton, reason for this is that a property sitleration.
in connection with other pro- the balance sheet will the Direc-greater expenditure wond I have auswer, the shareholders have 1. M. I. Nemazes, C. Gorken, we sold during the year was
5. In view of the fact that parties coquited by the Company tors give the figures relating to been justified.
annually the opportunity of ime" 16. Is there really a necessity porting fresh blood into the Hal D'Almada. A. C. Bothelo, mortgaged, the purchaser acquir the Company has hebi for a good and bus nothing whatever to de Mortgages and Deposits respect A A. Almeida. J. M. Wong, fing the equity of redemption so number of years land in Kowloon, with the lot in question.
ively aal sky inform the meet-for an equalisation of Divident
ARTICLES OF ASSOCIATION, un at present with property A. E. Crapnell, W. C. Lee, that although the amount of the which should have been built
ing of the average rate of interest
basiness & brisk and a prostion of the Company hung 20 The Articlean of Apocia J Arnoll, L. Cay, D. E. Wilson, mortgage on the property still upon long ago, will the Directors 3. Considering that the rate paid under each head ?
Should not the P. O. Roza, M. Fernandez. A... Jappears 23
a liability, explain the reasons" which of insurance premia ou properties Answer. The deposits referred perous? Alves, 1, K. Moes, A. W. Smith, on
to we pronupted thei neglect in Kowloon is now reasonably low, to are deposits made by con proposed transfer to the equalis chaleta in the light of the not appear most tractors as security for the per- tion fand really be made to a present law on Goalpanies, will J. M. Britto, C. B. Bayers. Whave a like account appearing development of each land and would it Morley, C. Klinck, E.M. Raymond, among the assets as debit against also their reason for locking up basinesslike on the part of the formance of their contracts and general reserve fund in order to the Directors instruct the Gin- Leung Yan-po, W. Forsyth, H. the purchaser. I trust you will funds of the Company by the Directors to abandon the policy by lessees also as security. The carry out the obvious intention pany's solicitors to subarik, to the Hancock, 1. F. Mattingly, WE approve of the transfer to Ts-acquisition of a site at Bowen of the Company carrying a part amount of the deposits at any of borrowing as little as possible rebeldens up-to-date articles which should contain provisions for the payment uf the L. Shenton, H. W. Hind. F. plon a Fluola Insurance Road overlooking the N. Y. K. of its own insurance and thereby time is relatively small. and
dealing with the suggestion: Maitland, G. M. Lakin, M. S.Account as also the transfer of quarters, which
dividend? Bite it is releasing the investment in ductuates as the contract, is
Answer. You will find that dealt in question No. 187 Northcote, A. Shelton Booper.$50,000.00 to Equalisation of understood subsequently Mortgages and Loans of $295,- carried out and the deposit be. A. A. la Roza, A. I Samy, Divident Fund. Your Directors found mast expensive for 303.11 (which is apparently comes returnable. The Directors Equalisation of Dividend Fund Answer. The present Articles 7. M. da Rocha, A. Barretto, J.Alecided in view of the fact that building?
necessary at present in order too not think it necessary to set Ends a place in the Balance were adopted in 19077.
Directors will give instructions to Tarrant, J. A. V. Ribeiro, W. M.Jon reats alone we could have Answer. The property.
relay available the Insurance out the amount of such deposite Sheets of mos:: Companies and. Hamphreys, C. P. James, 4.jonly paid 5 per cent. dividend, ferrel to which is above May Reserve funds), thus obtaining separately. The average rate of the primary object of such a fund the Company solicitors to sub- mit to the shareholders up-to-data D. Humphreya, E. J. Grist, P. M. to
dividend Road was considered to be a good the necessary funds with which interest paid on mortgages is in to assist the divident paid out Articles. In be Articles that I'
1 df the profits made iu lean years. N da Silva, J. M. de C. Basto, against the previous year by 1kite to acquire and sa-an opport- to carry on the development of 6.70%.
It is usual to augment it whenware of, up-to-date or otherwise onis, E. J. Noronha, C. H. Basto, F.per cent.
in which inity aroseofdoing mats reason-bur undeveloped properties ?
The Directors' attention is in- Soares, A. E. Griffis, J. Walker, Connection they are bearing inable price it was thought advant
12.-1914, $3,379.77; 1915, an increase of profits is shown there to be found anything.
Farranting the m uggestion M: Manuk, J. 11. Alves, mind the fact that they have stilla age should be taken of it The vital to the rate of interest earned $3,070.66; 1916, $3,752.07: The Directors are not aware that A. M. S. Rosario, M. Considerable amount of property Company's architects have been on the investment in Mortgage 1917, $3,630.27; 1018, $415.62. the establishment of the fund forward in the Marques, J. M. A. d' Remedios, to develop. With these few re-instructed to prepare sketch plans and
bare 4.30% Will the Directors explain how indicates an obvious intention to the last. P. Young, Pow Hing. W. J. marks, gentleman, I beg to proof the baddings to be erected. p.o. per the figures in these amounts appear each rear borrow as little as possible for
21 Do the Directors agree Wilkinson, M. Young. I pose that the Directors report upon such property but the P. & L. A/C $12,805.15 and so regularly and so uniformly, payment of the dividend and Kong, P. A. Basto, W. F. Ford, and statement of Accounts as such plans have not yet been farther that the premiam now when article No. 52 already would be surprised to learn that with me that had there bean more this was the case. The fund is energy, clearer foresight, bet É. Abrahara, H. K. Hung, presented be adopted. After this received, nor have the Directors saved does not exceed $1,109.30 provides to the General Managers also available for other purposes tier management and less over J. A. Basto, and A. M. d'Era. has been seconded I shall be any flats upon which to form anwhich the Company can well $8,000 for the office expenses?
trading, the financial. position of Answer. Article 82 provides a case of need. The Chairman called upon pleased to answer, to the best of opinion as to the expensiveness afford to pay.
the Company would bare ben so Answer. Prior to the receipt that the sum of $8,000 is to the Secretary to read they ability, questions. sharehol or otherwise of building thereon.
improved that the market value The Directors would point of this question the Directors had cover office reut, salaries of 17.-Cannot the procedure of of our shares, intrinsically worth notice convening the meeting, ders may wish to ask. which was done.
Mr. E. M. Raymond--I beg ont that it forms 3. natural had the subject of the Insurance Secretary and other employees. electing Directors at the ordinary $12.50, would be quoted more part of the activities of the Reserve Fund under considera The General Charges referred to annual general meeting of the than $1.50, the presɔni market THE CHAIRMAN'S SPEECH, to second.
The Chairman-1 will not Company to acquire undeveloped tion and it is still under con- are for additional expenses in Company be otherwise than the
value? The Chairman said:-Gentle
land with a view to the same sideration but I should point out lighting and advertising and formal olo" castom whereby a Answer The Directors have.. I propose with your per-reply to the questions put by ultimately becoming profitable that it by no means follows that minor charges of the Company paid servant of the Company made no estimate of the Latrinas mission to take the report and Mr. Alves,
either by sale or development.it will release the investments which the Article does not would, as it were, force into the market value of the Company's- statement of accounts and audi-
Mr. Alves-May adress Until either of these events takes and loans amounting to $296, provide shall be included in the hands of any one of the share-shares nor do they know of any tars' report, which have been in the meeting, because I bave pas place the property is necessarily 308.11 which are refer ed to and $8,000 above mentioned. Kollers present at the meeting grounds justifying your view. your hauda for some days, as read, the questions and not you, Sir? auremunerare. It is only would point out further that
REMUNERATION TO GENERAL Ca member of his fancy, of course) 22-Would it not be better You will notice a slight altera-
MANAGERS. The Chairman: We have the recently that Kowloon has reach-$150,000 out of that sum repre
a slip of paper with a sort of finance to issue 6 debatures tion in the way the accounts are questions before us fully and led a mage when the question of sents the Company's liability 13. Article No. 82 clearly mandatory that so and so should th made up
with interest payable half yearly the states that the General Managers be proposed as Director for the for the purpose of replacing: the the Directors' and when I have read the answers developing the undeveloped lead under the Mortgage to General Managers* remunera- | you will be able to reply. of the Company farther than has University of property which has are entitled to 5% of the net ensuing year, which generally. Tortgages aniounting to 205,000 tion being included in Mr. J. Hennessy Seth-been the case at present has since been sol to yourself profit of the year. Now 5% of leads to a permanency. the Profit and Loss Account (Adressing Mr. AlvesYou arisen for consideration owing to with a liability to pay to the $157,336.97 (profit for 1918) Answer. The invariable prote balance sheet may be now. for the year instead of being are not going to read the questions the demand for houses there which Company the amount of the would be $7,866.84, whereas we cedare governing the election of considered as a fixed liability, deducted, as in former years, out and waste on time?
has recently sprang up. The Mortgage attachel to it. The see in the P&L A/C. that they Directors is for one or more to almost in the nature of capita, after the profit for the year was Mr. Alves:--I do not care Directors are giving the question auditors of the Company advise:1 were paid $8,044.05. Please retire each year. There is no dad which appears to be required shown. The auditors bonsidered mach about time:-I should like of the development of the undeve that it should be included in this explain this Is it possible that obligation on any shareholder to additional capital in view of that this was the more correct address the meeting first, loped land at Kowloon their amount on the assets side of the Directors fees $5,000, and re-put forward any proposal which the large amount invested way of presenting the accounts before the questions are put, to attention. The Directors do not. Balance Sheet and it is included muneration to General Managers he is unwilling to make."
The property? and it does not in any way affect explain why I have asked them. consiler they should carry on the in the liability side of the Balance 88,544.05 are not included as suggestions made in this question Answer. This is a matter the result. Your Directors are
The Chairman :-You can business of the Company Sheet under the lawling of Mort working expenses for the purpose are, as far as far the Company is opinion. The Directors de not plessert to come before you with address the meeting after. upon the method usnally adopted gages. The average rate of of calculating such remuneration? concerned and far is the ex-share the view suggest aur Buch a good account-the best,
Answer. The remuneration of perience of the directors is have they any reason to suppose Mr. H. Percy Smith. 1 think by the speculative builder or that interest earned in moneys of the since 1901, the profit for
the report and accounts should they should develop a property Company actually invested in the General Managers of 5% on concerned, entirely without it would be possible toplice de- the
year available for
be sxoaded before anything is until they can see reasonable mortgages and loans is 8% and the net profits of the year is foundation. If the shareholders pentures on the market at pres appropriation being $167,743.97
prospects of letting the houses the autount in the Balance Sheet calculated before the deduction wish at any time for some new tent at 6%. Nor do they shaze against $83,739.65 for 1917.
under this heading, including ss from such profits of the remunera director to be appointed the the view that a Mortgage which Rest Account shows an increase The Chairman, addressing Mr. after they are built.
6. For reason given in question pointed out above the sum of lion to Directors and General opportunity is afforded them at appears in the Balance Sheet of $10,272.05 and as it is this Alves, aut My ruling is, that No. 5 will the Directors explain $150,000 for which you are per- Managers. The total sum in every Annual Meeting of they be considered as a fixed account to which we look chiefly I read your questions and the
to the meeting their justification sonally liable. The Company respect of which it is calculated Company.
fability. It is thable to be re- to pay dividends, I think this answers and after that you can in acquiring a piece of land in neither receives nor pays any in respect of the present year is 18-Could not, the Company paid at any time. increase may be regarded a make any explanation you
May Road on which it is believed interest in that respect as the $170,881.02.
furnish with the annual report to 1159 KOWLOON: satisfactory. Profit on sales of Mr. Alves:-Ileave that judge they propose to erect a building interest is paid direct by you to DIVISION OF PROFITS. shareholders a list containing the 23-Willd not the Directour- property amounts to $87,098.69, mens to the other shareholders.
instead of employing the funds the University.
14.-In 1915 when the amount names of say twenty important seriously consider thordviny This source of profit, however, is MR. ALVES' QUESTIONS
proposed to be spent in a paying HOUSE & OFFICE FURNITURE; of rent collected was $129,120.35 and large e susreholders besides of confining the Company's opera necessarily uncertain. Repairs -
ANSWERED,
proposition by building up good 9. In 1917 the balance was with no profit on sales of pro- the names of the religions to Kowloony which are again slightly heavier the
rent-paying terraces on that $1,683; on 9/2/18 the amount of perties, the Directors thought it Directors from which the share without going onthide the Com extra cost of material partly ac- The Chairman then read the valuable piece of the Company's $683 was written off, hence the fit to declare dividend of $5 holders may choose by ballot any sny's, undeveloped counting for this. We have also questions and answers as follow ground between Carnarvon and balance now should be $1,000, cents. Now in 1918 with rent ve persons considered by them taken advantage of a good year.
Slody Roads, now used as tennis, whereas the balance sheet states figures at $180,702.55 (with no best suited to look after the to do more work than we perhaps
courte?
this asset at $950. Without possibility of rental falling off interents of the Company? otherwise abould have done. The 1, Will the Directors be good Answer.The answer to this wishing to press, the point, will for the next two years) together Answer The Directors are donation of $2,000 War Charities enough to state clearly and question is practically similar to the Directors explain how the with a profit of 887,098.68" on usually selected because of their I feel sure will meet with your separately.
the answer to question, shrinkage has occurred?
sales of properties, the Directors value to the Company as members
men.
gaid.
like.
ON THE BALAN: 'E · SHEET.
Loans a
35
ELECTION OF DIRECTORS,
FINALLY.
which from their recurrence
tera, un
and tha