1939-03-27 — Page 12

THE CHINA MAIL, MARCH 27, 1989

DIVIDEND DISCUSSION AT DOCK COMPANY Conservative Non-Opportunist Policy Needed

Directors Supported At Annual Meeting

continuous sunshine of regular divi- denda,

BHANGHAI INSECURITY

We must bear in mind that during the last two years there has been a certain amount of insecurity in Shang- ing under very considerable hardships; building and engineering resources Di

in

things return to normal, we must ex- their activities, especially from Shang-

fore demands that

We conserve

our

"In order to give the Dock Company its proper place hai where the Yards have been work- amongst the sound and stable industrial in-while, at the same time, the vast ship- vestments of the Colony, a conservative non-Japan have mainly been occupied opportunist policy is obligatory to-day and, satisfying national requirements. When although the adoption of it appears to have pect to feel the embarrassing effects of once more plunged some shareholders into the hai if China's national dollar remains mists of disappointment, it is, in the considered at its present level. Prudence there- judgment of your Board, the only course," said resources, always keeping it within our the Hon. Mr. Stanley H. Dodwell, chairman, re-creasing our overdraft, to improve our plying to certain criticisms regarding the small proportion of profits distributed in dividends for 1938, at the annual ordinary meeting of the Hong Kong and Whampoa Dock Co., Ltd., held this morning.

The chairman said:-

The figures which your Board' have the pleasure to put before you have had our most serious consideration,

The year commenced with nearly all our typhoon repairs completed, the ex- ception being the "Talamba" which did

hands until the

15th

not leave our March, 1938.

which we antici- The improvement pated, and to which I referred in my

were

TWO STEAMERS DELIVERED Two steamers of importance delivered during the year, the "Wing Sang" and "Tai Sang" for our esteem- ed clients, the Indo-China S. N. Co Ltd. These ships were cach fitted with four cylinder triple expansion engines

with Gotaverken Exhaust Turbines, giving the vessels a loaded speed of distinctive and 14% knots. Of a

that we believe shapely appearance

of

power, without again dangerously in-

selves the forefront.

equipment and facilities, and keep our lively recollections of several years of present Chief Manager and with in this respect, no extravagance will difficulty, you may rest assured that, be permitted, but only such improve

SOVIET CENSUS FIGURES

Moscow, To-day. The Soviet Union has a popula- tion of 170,126,000 according to a census taken in January, the re- sults of which were published yes- terday.

The population was 147,000,000 in 1926 and 165,000,000 in 1933.- Trans-Ocean.

Under our do. It is obvious that the Company our cannot make a profit unless it is sufficiently and suitably employed, but show a satisfactory year is a very the amount of such employment different one to what was required

future as apparently, the Directors

ments as make for economy, efficiency and the enhancement of our reputation in the eyes of shipowners.

these When the earning power of improvements, some of which I have al- the Board will undoubtedly give care- ready mentioned, has been established, ful consideration to the capitalization of the reserves thus employed. They re- gard this method of compensating shareholders for their past sacrifices as

to

before the reorganisation of the Com- pany.

It may be impertinent to venture to express an opinion, but I believe more efficient state than it has been and hope the Company is in a much for some years and, that being so, it therefore follows that the necessary employment of the Company to show results must be correspondingly easier

a sounder one than the distribution of to obtain. large dividends during abnormal years, which cannot be maintained, and } it may prove feasible trust therefore

CAUTIOUS POLICY From the point of view, also, of the tuation and international affairs gener- obscurity surrounding the Eastern si ally, your Directors recommend a cau- tious policy and therefore while we have

speech last year, was greater than we these ships will bring us nothing but in the not too distant future.

credit. This considerable amount expected and the gross profit of $2,new tonnage has given plenty of work to our staff, while at the same time, 121,023.04 is the largest we have ever earned by work, for in our best pre- vious year, namely 1921, we were help-we have not experienced what we had ed by exchange fluctuations which come to regard as normal, a slack sum-

mer period for repair work. worked out to our advantage. The net

Mr. Cock spent September, October profit is $1,005,471.92 and shows the

to call on took the opportunity effect of new construction in that it is and a part of November in Europe and

while less than might be expected,

reduced

clients there, renewing and refreshing personal contacts made by him in 1935. stocks of material which at from $3,221,261.27 to $2,519,379.11 are

received the likewise governed by the new work in The heavy calls made on our Staff have usual ready and skilful response from them and we trust the hand and are at values less than re- placement prices.

Depreciation is on the usual basis and special recognition we ask you to make is considered ample.

OVERDRAFT DOWN

giant

will have your approval.

our

of

I have of course read the anonymous correspondence in our local papers ex- pressing disappointment at the small You will observe with pleasure, proportion of our earnings which the trust, that, due partly to your support Board recommend should be distribut- of the new issue, the overdraft is downed in dividends and bonus. I have also by $2,286,288.32 on last year, but never had a letter from a shareholder ex-

pressing similar views on behalf theless is still substantial.

himself and other shareholders, a mo During 1938 we brought our

ally thod of criticism infinitely preferable crane into full use and it has

to anonymous letters to the Press, to justified its purchase and erection.

a large lathe which for obvious reasons we cannot We also purchased which has been installed in a tempór-reply. ary site until it can be transferred to the new heavy machine shop which J referred to last year. The heavy shop is still under construction at this date but should be ready for use by the end of 1939.

During the year we completed 17

ships with a

new 11,043.

total tonnage of

tendent, Mr. Corrighan, for the trust, they placed in us in this new branch of our activities.、、

APPROPRIATION QUESTION

The views of shareholders are of the them Board, and I hasten to assure course at all times welcome to that the question of appropriation on

in

every reason to be well satisfied with progress made since the remarkable 1935, I earnestly ask you, for the rea- sons I have given, to approve the al- locations proposed by your Board.

CONFESSED "AUTHOR"

In seconding the proposal, Mr. G. V. T. Marshall said:-Mr. Chairman and Gentlemen, --

the

is

THE CARRY FORWARD Many shareholders of to-day aro from very dependent on Dividends Investments and they, not unnatur- ally, want as big a dividend as possible to get, but I hope none would without thought of the future, and, urge the Directors to adopt a policy conversely, few would endorse what f as the too conservative policy which some of us think has been adopted may perhaps be permitted to describe

towards 1938. If instead of carrying forward to 1989 $373,107 odd, a little shareholders more thought for had been given, a general disappoint- ment would not have been created. me to And, here, it is opportune for

the disassociate myself entirely with any remarks on the relationship of

Dividends and or It may appear somewhat paradoxical amount paid in

Such comparisons are of the Report and Accounts for 1938 to the Staff. for me to rise to second the adoption Bonus and the amount paid as Bonus when I confess that I am the author odious. It is the Staff we looked to reach those of two letters which appeared in the for successful years and I should like South China Morning Post under the to feel that when we. pseunonym of "Investment," and, there- gloomy years, when a Dividend can- the the not be declared, days the Directors fore, am privilleged to accept Chairman's very mild rebuke for

so may see" but which I cannot,

Company will pover be unable to give writing to the Press.

Informally discussing these two let- tangible appreciation of the efforts was of the Staff, even if shareholders may ters with Mr. Cock, Bome doubt expressed of my willingness to second have to forego a Dividend. this Resolution, but in reply I stated 1 and should be particularly pleased to thus have the opportunity of express- ing the views of the several sharehold- ers who have approached me recently.

If I may have a little of your time I will very briefly outline my attitude to- wards the Company.

eventually may have to be faced..

I have exchanged letters with the Chairman regarding the distribution of the amount available for 1988, and now am satisfied nothing can be done to alter the distribution as has been included in the Report for 1988, but I would reiterate that I do feel Share- holders have but to express their dis- appointment with a declared Dividend. to ensure both the sympathetic sideration of your Directors, and it be possible, in one way or another, a more liberal distribution as far as concerns 1989.

con-

if

In

this. occasion has had more considera- tion than perhaps it ever had before, Last year I referred to the fact that The Board appreciates only too well

Ever since this Company was reor- the sacrifice made by shareholders we had orders for five Diesel engines. 1935, and have every reason to believe ganised and placed in the hands of our Our first Diesel engine ran its shop that that sacrifice will prove eventual- Chief Manager, so ably supported by At Mr. Hosie, the public has had the great- trials on the 18th May, 1938, and was installed in the Motor Vessel "Mamu-ly not to have been made in vain. tu", which left Hong Kong in June. the same time when we reflect upon the est confidence in the Company, and my

A REMINDER Our second and third engines were in- uncertainty of the outlook in 1935 confidence is strengthened by a casual

If the experience the Chairman has stalled in the Motor ship "Matafele" only 8 years ago--it is surely too soon remark made to me by Mr. Cock when which was delivered to her Owners, at the beginning of 1989 to permit our that reorganisation had been complet

Hong Messrs. Burns Philp and Co., Ltd. in selves to be carried away by the results ed. Mr. Cock said: "If I can't make been taught since 1933, as expressed

For the Company pay I will eat my hat." in his speech at the Royal of two abnormal years' trading. November 1998. Two more engines for these Owners are shortly due for these two last years must be consider As, apparently, Mr. Cock does not ap- Kong Golf Club, and repeated,

ed as coming within that category. pear to have eaten his hat, there is no part, by a shareholder at the Mest- thank delivery and I would like to

One of the great difficulties the reason for anyone to lose confidence in

Wharf and Godown Co. Ltd., express- "Messrs. Burns Philp and their Supering Management has always had in the the future of the Company, irrespec- ing of the Hong Kong and Kowloon past and which I fear they always will tive of when, and what, competition ed in this one sentence: "the best have, is to keep our work on an even keel. Only too often it as been a case

NOT SO PESSIMISTIC of feasts alternating with famines, and

But to revert to those two letters 1 invariably the more sumptuous tho feast, the more severe the famine. addressed to the Press under the cloak What we all want I am sure, is a steady of anonymity, I sincerely hope they did on our investments one that is not cause any offence to the Directors fair alike to our shareholders and our or in any way insinuate that I was try clients, and which, in time, will give the ing to indicate a want of confidence in Dock Company its proper place those Directors. If it is felt that I

OTHER BUSINESS. amongst the sound and stable indus- did, I can but, apologize and, if go de trial Investments of the Colony. - To sired, would willingly call for a vote of

The Hon. Mr. M. K. Lo and Mr. lance. I have great faith in the attain that end a conservative non-op. con

tors, myself, but I did, and do D. F. Landale were confirmed, and ∙Wil- portunist policy is obligatory to-day,

feel that a more generous: c consi- Messrs. J. H. Jessen and S. " and although the adoption

of shareholders was justified liamson, re-elected directors, while and to have once more plunged

Percy Smith, Seth- iguren for 1988, -1 fully appre-Messrs.” holders into the mista, of

ciate) that Renerver must, and should Fleming and Messrs. Lowe, Bingham mënt, it is, in the considered

bes It up, but I do not, perhaps take and Matthews were re-appointed audi- of your Board, the only course,

the thel,such va pessimistic views "mists' are ever to be dispelled”

Returning Soon!

"THE ADVENTURES

OF

ROBIN HOOD"

AT POPULAR PRICES!

return

course is to go ahead just as if no uncertainties exist," a remark equal- ly applicable to the direction of this Company, if that has not been for

liberal gotten, surely Shareholders reasonably may look forward to more

The report and accounts were un- consideration in the immediate future, animously adopted.