1923-03-26 — Page 5

Page

HONGKONG HIDE AND

LEATHER CO. LTD. HEAVY LOSSES" AND A CRITICAL POSITION,

THE HEMEDY,

had sustained a lona of about $94,000,

to

HONGKONG DAILY PREAN, MONDAY, MARCH 26rm,

He would remind them)

TER

In conclusion the Raport mentions that Mr. Bax (solicitor) replied. Ho said be raid to them, the Directors suggest that the amount of such be left to the several prominent and influential gentle that under the artigios of (amsociation dlaction of the Directors, it belig men are satisfied as to the good poss, power was given to sub-divide the sharon, understood that any onus is only to be ibilities, of the Company, and have ex-and this was also provided for by paid out of nett annual profits and not pressed willingness to back their opinion the Company's articles. Therefore someĮ

exceed 15" por sent. They would not by taking up mach more than their pro scheme woult, be adopted, whereby, new shares of 84 rich would be issued, lear, be content to take on the managemen; for portion of the #1 shares, An extraordinary general meeting of $1,000 per month only, but stipulate that Mr. W. AL Humphreys turned the ing the present shares alone. The new Shareholders of the Hongkong, Hide and they must be allowed to purchase 10,000 Chairmanship of the meeting over to Mr. shares would presumably have new rights and Leather Co., Ltd., was held ab shares also, with an option to purchase AG COPPIN Chairman of the Invesso ad to bring them in for dividends: However, that scheme bad not yet been within 12 months, about 5,000 6,000 sharestigating Committee, Stephen's Building on Saturday to con

Mr. CorPIN said he wished to give them worked out. addition, their appointment as man in Bider the report and suggestions of an

Mr BUMPHREYS asked whether the $4 Investigating committee which was ap-agers to be permanent so long as they a few more particulars as to the non- pointed in November last to look into the hold 10,000 shares and manage the business success of the business, and to extenuato shares were to take the place of the un-1

profitably

and faithfully, they to be Messrs. W. G. Humphreys and Mr. W. M.ined shares at $10 each. affairs of the company. The reason for

Mr. BLAKE replied that, the #10 shares| the committee's appointment was that allowed to nominate one member to the Humphreya

would be: cancelled, and the $4 shares the Company, in its first year of working, Board of Directors. The Investigating that last year had been a bad one for busi

Committee recommend seceptance of this ass not only in this Colony, but all over would take their place,

Mr. Seru: I take it that the directors *longed strike, and in addition they had will they get mitable guarantees Mr. W. M. Humphreys took the chair, offer, but at this juncture with to put the the world. They had suffered from a pro- at the commencement and there were also following points before you

The Company is indebted to the Hong considerable trouble with the tannery from the new Manager before they hand present: Father Robert, Mers, A. G.

The CHAIRMAN: Most certainly thad] missal of one los of tanners in March, and will be done; INS Coppin, D. H. Blake, W. A. Dowley kong and Shanghai Banking Corporation staff, which had culminated in the dis. over the Company to them f

secured

Mr. HAVEN How do you propose to the dismissal of their successors in the Yan Po (Directors), Messrs. F. S. to the extent of about $180,000

by mortgage on your property, viz.: land, following August. Their work had been reduce the expenses from $50,000 to Cooke, A. Stevenson, W. W. MacFarlane, buildings and stock This indebtedness

$25,000 per annum?: Dunbar, J. MucLachlan, B. Pepperil, the Bank will insist upon being reduced whilst a good deal of raw material bad agement the expenses of the General very bad, and much of it worthless, Mr. COPPIN: Under the present man- H. Humphreys, J. H. Seth, R. F. Raven, A. D. Humphreys, A. G. S. Morton,

ton, V. to $100,000.

been-wasted. Thac-morning-he-con-Manager are 81,000 per month The d From the nett profit of $76,000 on upper tinued, Mr. William Humphreys badministration and general expenses in the

accounts were $33,663.84, and trading #r The Committee of Investigation, which leather would fall to be deducted 7 per pointed out to him the difference between penses were $15,019,06 It is suggested: consisted of Mr. A. G. Coppin. Chair cent, interest per annuai, say $7,000, and

Kdy bonus of 15 per cent. on balignce of net: put and output. It was plain that they thing the new Managers take 31,000,--and could not place a hide into pickle and they are agreeably to this to cover man, Hon. Mr. C. Montague Ede, Rev.

everything. The general and trading Father Robert, Mr. Loung Tan Po, and profit to managers and tanners 810,350, bring it out the next day as a finished expenses are included in the working Mr. Phang Ho, ngusioned in their report a total of $17,350, leaving available

Mr. PAPPELL Father Robert was that the Company had lost in its first 56.650 to pay off indebtedores to the Rink product. It had to "stew in its own costs and other administration expeused, good enough to give us information about a similar firm in Indo-China during the War. Does he know how the firm is progressing now, and whether it is under Father ROBERT: The Company was European or Chinese management? formed twelve years ago and it has always been under French management. It is still doing very well, and is in a It is one of the flourishing condition.

Leugs

Sorby, and W. Armstrong.

year of working about 204,000.

In their report the Committees say :-' Amongst the questions the members of the Investigating Committee had to put

and provida a dividend if deemed im mediately advisable.”

so to speak, and in the case of upper leather it had to stop for about

It will be noticed that the Investigating, twenty-five days. Sole leather had to be Committea take figures of profite on upper left for three months. Thus, at the end leather only. There is still the proft of of twenty-five days they were producing to themselves were the following:- say $80,000 on sole leather to be consider-the full output in upper leather, and in (1) Is it possible to profitably conducted, but the Investigating Committee is three months they would be producing a tannery business in Hongkong ↑

content to momentarily omit this in order the full output of sole leather.

,

worked in other ninces under conditions.

(2) Are tanneries being succcessfully to present a very conservative estimate With regard to the possibilities of anost prosperous firms in Indo-China which apply to Hongkong in respect of of your Company's possibilities. It will tannery business in this Colony, he would to-day. They get all their skins from climate, Labour and other difficulties be seen that $38,650 per annum available mention that at the present time Messrs, Yurman and Indo-China, and although

(3) As investigations show it is for paying off indebtedness and/or divid-Yue Yue Hong were erecting a tannery possible to profitably work tannery ends, can be carned on our side of your alongside their own promises, so that business here; and that in contiguous)

they, at least had great faith in the places such industries are heinz con business only.

industry. Many industries had suffered

Shares paid for in full at $10

ducted with considerable profit how in There then remains the matter of ritis- it the Hongkong Hide and Leathering Additional working capital, in which loss on their inception, and it was only Co., Ltd., is working at such a largo loss, and what steps can be taken to connection careful attention should be after they had gained experience from medy the Company's position 1 given to the following remarks, viz:— mistakes made at the beginning that they In the course of their investigations the The Company's present share position Committee had much assistance from a is:- firm of tanners in Canton, which is work- ig at a good profit, and which, as the Investigating Committee's request "drew upa questionaire dealing with a whole matter. Some of the salient points "brought out, (based on replies made by the Company's present Management fo the quetaionaire) compel the Investigating Committee to form the following conclu- trong and offer the resulting recommenda tions:-

THE COMMITES'S CONCLUSIONS. Administration,- tannery and trading expenses have been between $50,000 and $31,000 per annum. These can be cat down to $25,000 without loss of produe tion or efficiency.

Shares "subscribed for on which

#3 only has been paid. Shares unsold .....

Total

The new managers (option one year)

4,646 Plus possibly 141 on which 5 only has been paid

141

141

resolution:

..

this sort of thing is not much in my line of business, I understand there are equal opportunities in the Colony of Hongkong. Mr. COPPIN then proposed the following

"That the Directors of the Inves tigating Committee be authorised to negotiate with the Canton Arm of tanners and prepare a scheme for the provision of new capital for the Com pany."

ingup of the Company altogether.

Mr. Coose: Will the management of the Company be entirely in Canton, or in Hongkong 1

A vote of thanks to the CRM and to the Investigating Committee was pas

on the motions of Mr. Sara

HONGKONG AND NEW TER RITORIES EVANGELISATION

SOCIETY.

The annual report on the work of this Society for the year 19922 is prefaced by the following introductory note:

had at last attained success. fi

Father Roner, also a member of the

Mr. Corrix mentioned that any share Committee, told the meeting that had the holder could propose an amendment if $48,202 Investigating Committee thought the he wished, and could propose the wind-

maintenance of the Hongkong Hide and 51,657 Leather Company, Limited, could not give remunerative results, they would not

Mrs Coppin replied that the manago. $160,000 have hesitated in recommending the

ment would be in Hongkong, and there shareholders to wind the company would be a preponderad majority of The Investigating Committee suggest The unsuccessful working of the past Europeans ou the Board of Directors

Mr. DUNBAR them second: the resolutio that the 31,637 unsold shares be offered as year was not at all a practical demon-

to existing share stration of the impossibility of running which was put to the meeting and carried follows-To offer

unanimously, nato a p holders three shares for every four shares

leather factory with good results. at present held at $4 per share,

They had, of course, to admit their non- (Example: Every holder of 100 sharry for which he has paid $10 each (equals scores so far, but they had given their $1,000 in all) shall be entited to bay 75 opinions as to its causes, and hoped they shares at $4 each (equal $300 in all). had shown the trade basis on which the Thus he would have 175 shares costing enterprise could pay in the future, At in all $1,300 an average of say $7.45 least they had bought a useful experi- per share. I On this basis additional capital would ence, though at a very dear price, and they had been taught what to avoid. Reply to No. 20 in the questionaire be raised as follows:-

48,209 at 3 for

Many faults had their remedy, and the shown the factory to be capable of pro-

cach 4 held 30,150 at 81-8144,000 Committee believed that if the share ducing: 8922,147.34 in upper and sole

To the new man ***

This Society which is controlled jointly 10,000 at 84 40,000 folders would agree to the changes by the Union Church and To Tesi leather per annum of 52 weeks, whereas

"agers

posed, they would retain an industry Church, was started in the year 1904 to the trading account, shower output valued

$184,000 which would thrive in the Colony. The work in the Now Territories. at $137,271.21 in 40. weeks working of the

The New Territories is the country industry was a paying one in Hankow, first year of your Company. Even on 40

Shanghi, and in Indo-China. He knew which lies between the base of tha weeks working the output should have

of one firm in the latter place that bad Kowloon Peninsula and & line, drawa from Mire Bay to Deep Bay. It cop- been over $700,000 instead of 8133,271.

paid na much as a 200 per cent, dividend prises an area of 378 square miles, oË The investigating Committee is of the

during the War. He was glad to say that which 90 square miles is on the adjacent opinion that the seat of the trouble lies

4.787 at 81 per share the new Managers, who were willing to inlands and 998 on the mainland. There In the fact that working has been inter- mittent and at no period in full swing, to rank pari panse as regards dividends, take over the management of the Cons are a number of market towns and shout and that administration expenses have etc., with those paid for at $10-part-pany's affairs, were as optimistic regard-ix hundred villages, the population not been warranted by output. The Comculars respecting making both issues of ing the welfare of the Company as the Mr. COPPIN then asked if there were mittee considers the remedy lies in same value to form the subject of further Committee.

discussion with shareholders.

any questions. economy in administration and better

If some

When will the Chinese of the present shareholders Mr. DUNBAR: factory and sales management,

The Committer is of opinion that on (after a prescribed period) do not signify pay, for these 10,000 shares which, they

Their first proposition there are now more or

As the result of the Society's work" Mr. COPPIN

lesa organised nn assumed output of 3,500 pieces of their intention of taking up their addi-are going to tako up upper leather per fortnight (a modest tional shares as indicated above, auch was that they should be allowed to take computation), the factory can make a det shares shall be offered elsewhere, so that them up within the year. We think that churches at Tsun Wan, Castle Peak, Yun Tai O and Sha-to-wan, where regular will be reduced to three months, profit per annum of $75,000 also that sufficient working capital may be raised is rather too long, and we hope the time Long, Tai Po, Lim Tsun, Cheung Chow, Mr. H. HUMPHREYA: What value "do services are held, and there is a baptisod 3,000 Hidvs. may be converted into sole for the continuance of the business as a

is also being carried on les regularly at leather per month at a cost which should going concu, and to pay off part of the you put on our property supposing you embership of approximately 500, Work show an additional profit of over 880,000 Company's indebtedness to the Bank. sold it by cuction as it stands t

Mr. COPPIN: There are about 110,000 San Tin, Sha Tin, Sheung Shui and These quantities are taken The alternative appears to your Inves square feet, the value of which is estimated per annum.

tigating Committep to be to wind up the at $2.70 per square, foot, with the build Schools under the Society's control or in from replies to the questionaire.

The Canton Firm of Tanners having Company, in which event it in estimated ings. Whether it would realise that as a buildings occupied by it are established Nigited and thoroughly inspected your the amount available for distribution, forced sale it is difficult to say, but if at Taun Wan, Tai Po Lam Tsun, Cheung anyone wanted to buy it as a going con- Chow, Tai O Bha-lo-way and Yun Long: tannery expressed surprise that with such after liquidation of all outstanding liab-cern probably they would be willing to These are attended by approximately ilities, will not exered $2 per share for pay that eum The total value of the 250 scholars Thus the coming generation good equipment a loss has been made.

Shareholders land and buildings works out at $207,000, is being looked after with a view to

reckoning it at 82.70 per square foot. future potentialities' At the Investigating Committee's which you have paid" $10,"

Tho lines of work are:- suggestion the Canton firm of "tanners therefore have to decide whether they will If the Banks foreclos d on that, they

(1) Pioneer Evangelistic work;,(2) Express willingness to undertake the take up 3 more shares at each for might get 82 per share, or perhaps 81.75. management of your Company, contingent overy 4 shares for which they have paid Mr. Cooke: The caly assets of the The establishment, and maintenance off pba sufficient working capital being raised $10 each, or let the Company go iata Company consist of the Lard and build churches until they beccano self-support-1 ing; (3) Assisting to establish schools. and providing they can be stakeholders in liquidation, with b possibility of ulti. Mr. CoPPIN: There is the machinery, where religious instruction is given and the concern to the extent of 10,000 shares mately getting say 81 for every 610 so far which stands in the accounts at $127,000 scholars are taught to sing. Christian

but it la extremely unlikely that it would. which they will take up. They require invested.

realise that figure unless it were being hymns, and learn some Christian tru The Investigating Committee's recom- sold for similar purposes. The stock is which they carry to their home; (4) managing lus of $1,000 per month t cover cost of staff, office rent and lighting mendation to shareholders is that each valued at $20,000, hot whether that The sale or distribution of Bibles,

ia again doubtful.

prices; (8) Lending religious and other hilst sales amount to $500,000 per shareholder should take up his additional mom would be realised if it were sold Testaments and portions at nominal ianrim.” This is to be increand proper allotment, as, under the suggested altered Mr Set is it proposed to cancel ihn books to school-masters and other in onately so that, for example, it would management, your Company's success unsold 810 shares and issue new shares fluential, men; (6) Holding fattern

at 84 each?

vices from time to time, in the contres. Mr. COPPIN replied that although the These are always largely attended. Double the present allowance the sales would appear to be assured,

The staff approved at present consiste reach $1,000,000. As it will be apparent In the meantime. Mr. W. H Humphreys, scheme had not been formulated as to that the management and, tanning staff Managing Director, has placed his resig: the method of receiving new capital the of one, Buperintending Missionary, one Chinese Superintending Evangelist, four will, bo encouraged to work harder fiation as Manager of the Hongkong dida'old shares would be aub divided,

and Leather Company, Ltd in the hands Mr. HUMPHREYS asked for a fuller Preachers, four Biblesammen, ono travel- ofits will of the Investigating. Committee,

reply to the question,

ling evangelist,

they know a bonus on edit:

14

Lugs +

being estimated at about 100,000.

Under an agreement with China in 1500, this area was leased to Great Britain for 00 years. The responsibility for the moral and religious welfare of those people devolves upon the Christian community of Hongkong.

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