1926-03-30 — Page 4

THE HONGKONG DAILY PRESS, TUESDAY, MARCH 30TH, 1926

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236

COMPANY" MEETING.

HONGKONG & WHAMPOA DOCK COMPANY, LIMITED.

THE YEAR'S HEAVY LOSS.

COMMITTEE OF SHAREHOLDERS: APPOINTED BY DIRECTORS TO INVESTIGATE.

The ordinary yearly meeting of share holders of the Hongkong & Whampoa Dock Co., Ltd., was held at the Offices of the Company, 2, Queen's Buildings, yesterday at noon, for consideration of the Directors' Report and Balance Sheet for the year ending December 31st, 2005.

THE-ACCOUNTS. "

CAPITAL EXPENDITURE

L

Turning to the accounts, you will Mr. KELLY SAYCE: Mr. Chairman, -It is notice that no allowance has been made not my intention to ask any particular for depreciation. This is not considered questions but with your permission I pro- necessary in view of the large amounts pose to submit to this meeting a few that have been provided in previous observations on the report and statement years. Our stocks of materials stand in of accounts as presented to us to-day. I our books, not above cost price and in have no doubt that the result of last no case shove the market value. Our year's working is as disappointing to you plant and buildings are in excellent gentlemen of the Board, as it is to the scheme for the big dock at the present order and the cost of their upkeep has general body of shareholders, but like all time, but it is a matter that will hava

been defrayed out of revenue.

other concerns engaging in any kind of to come up again for consideration some

Our reserve fund, you will notice, alter trade we must be prepared for periods of time in the future. When I tell you that withdrawing 600,000 to cover the loss depression and take the good with the during the last three months at least in 1925, stands at 83,500,000. The pre bad. There is, however, a feeling among Sight ships have visited the port too mium of 810 per share on 7640 issued a large number of shareholders that the large-for us to accommodate you will less expenses of issue, amounting in all loss should not have been as large as it is. The opinion also prevails that a good realise that the increasing number of to $72,681.70, has been put to reserve.

It was stated during the meeting that these large vessels calling at Hongkong You will notice from the balance sheet den) of capital expenditure 'bas been un-

01

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will eventually necessitate our making

that the debentures have been paid off. wisely spent and should have been avoid-

been appointed to enquire into the work-arrangements that will enable us to dock This was done when they became due on ed. At the meeting last year the Chair-

ing of the Compaty

"

them. It has been suggested that our It was also announced that a loss of No. 1 dock-700 feet long-could be en over $430,000, suffered by the Company larged, but for various reasons we de last year was met by calling on the

not consider that this would be a sound Reserve Fund for half a million dollars. or practical proposition. This dock is The scheme to build a new and larger of very great importance to us and was dock has been postponed for the time. A feature of the, meeting was

criticism advanced by Mr. Kelly Sayce concerning the expenditure of over $5,000,000 during a period of depression on what he described as "unproductive buildings."

31st December, and the Bank kindly allowed us to overdraw on our current account in order to do this.

Your Directors regret that owing to the large loss of $466,358.03 they are u able to recommend the payment of say

not vacant for a single day in January dividend. You will notice from the last. During that month it cared for Freet and Loss Account that the balance nine large ships of a gross tonnage of of Working Account showed a loss of only 8132,507, the difference between that and, 8468,950.03 being made up of interest,

rates, insurance, etc.

58,655 tons.

SHAREHOLDERS INVESTIGATION.

There has been a feeling amongst a number of shareholders that the Com-

man in the course of his speach said that:

Tha past year makes the third in succession in which companies like ours have had to labour under trying cir cumstances, in fact the year 1924 was even much more dincult than the two previous ones. This is of course largely due to the continued depressed state of affairs in shipping,"

from which will be seen that neither the Board nor the management could be said to have been taken unawares by a sudden turn of the tide, for we have it on the authority of the Chairman that for three

Common prudence therefore should have

'I may add that the full effect of the years in auucersion “companies Hike ours By way of reply to this criticism, the pany's business could be run more labour troubles and boycott were felt have had to labour under trying circum- Chairman mentioned that Mr. Kelly economically, and this culminated a few during the months July-November.stances." Sayce was one of the shareholders who months ago in a letter addressed to the Business was improving towards the end requested the appointment of the Com-Directors signed by shareholders repre- mitter of Investigatic and he suggested senting a large proportion of shares ask- that this Committee's report should be ing for the appointment of a Committee

of shareholders to enquire into the work ing of the Company. The Directors

Awaited.

Mr. D., G. M. Bernard presided and

of that period and December proved to dictated the cutting down of capital out- be quite a fair month. As regards the lay on a large scale, at any rate, until future, I hardly care to commit myself such time as a change for the better was except to say that as the shipbuilding observable. Instead of that, however, the industry has been having a bad time for enormous sum of $5,500,000 has. beri there were also present: Sir, Robert Ho

some years it is only reasonable to anti, spent by our company during the very Tung. Mr. H. P. White, Mr. T. G. ponded to the request. A Committee of eipate that before long there will be a period stated by our Chairman last year Weall, Mr. Allan Cameron (directors), four shareholders was appointed and has turn of the tide, and even when we have to have been one of continued depression. Mr. B. M. Dyer, B. Sc. B. I. N. A..

little new construction in hand we are That is to say, a sum of money nearly (Chief Manager), Mr. A. L. Honi! report is received the Directors will give usually kept fairly busy in repair work. equalling double our total capital has

C.A., (Secretary), Messrs. Ho Leung, Kelly Sayce, J. M. Alves, N. V. A Croucher, Li Tse Fong, Chau Yue Teng R. E. Desai, 1. B. Perry, G. W. Sewell, A. O. Lang, E. Abraham, C. A. de Roza, E. M. Raymond, and P. M. N. da Silva (shareholders).

CHAIRMAN'S SPEECE. The Chief Manager having read the notice convening the meeting,

The Chairman said: Gentlemen,-The report and accounts having been in your possession for the past ten days, I will with your permission follow the usual

procedure and take them sa read,

welcomed the proposal and gladly re-

Commenced its investigation. When their

fullest consideration and I hope this may Any recommendations they make the be the means of producing more efficiency

I do not think there is anything fur- been borrowed and sunk into extensions ther that calls for comment, and I now or alterations to our property admittedly and accounts and after this has been

in working and economy is operation. beg to propose the adoption of the report unproductive, with the result that we are

I may say, however, that this problem

now saddled with very heavy payments of of efficiency and economy is one that is seconded, I shall be glad to answer to the interest which we cannot ears. I am sure. constantly engaging the attention of our hest of my ability any questions which shareholders will agree with me that if a Chief Manager and Directors. Some of shareholders may wish to ask.

private persons conducted his business on you may remember that our Chief: Mr. L THE Foxo seconded. Manager, Mr. Dyer, came out

such unsound principles, be would very here

SHAREHOLDER'S QUESTIONS.

soon find himself in the Bänkruptcy originally, nearly 20 years ago for the

Court, and I lear that unless a change purpose of investigating the work of the

Mr. KELLY SAYCE rose, to speak, where in our policy is made, and made soon. Company which was then in a moribund "pon,, condition. Being appointed Chief Mana-

The CHAIRMAN said: Gentlemen,-DP of the Official Receiver ourselves. I think we shall not be very far from the bands ger, he set to work and by his foresight, Saturday morning, after the speech which

shareholders have every reason to quer. energy and whole-hearted devotion to have just read out had been written, a The shipbuilding industry all over the the Company he has steadily built up letter was received from a shareholder in the policy of the present management world, as you are all aware, has been the organization until we are now anaaz containing a list of 15 questions which he that has brought our company to such u passing through a very depressed perioded by the best authorities that our ship- proposed to ask at this meeting and I pass by its unwise and unproductive and only a minimum of orders for new

building can compare favourably for wish to thank him for his courtesy in capital outlay on such a stupendous senie. ships have been placed. Here we have quality and workmanship with that pro- sending in the list of questions before-

ECONOMICALLY UNBOUND," had to contend with this world wide duced by any other countries. I men hand. This shareholder was one of those To aink these sums of money into some. altuation and also with the strike of tion this as I trust that shareholders who were responsible for the appointment thing that may at some time in the in- labour last year, which lasted for several will not, merely because of a temporary I have already referred, and it seems to to question, but to do so en borrowed of the Committee of shareholders to which definite future prove profitable is ope months, and the boycott which is "still with us.

The effects of these last two setback to our progress, desire to curtail me that these questions should have been mosey seems to me to be the height of

and I am sure they will not, the activities circumstances have hit this Company of the Company in such a way as to react placed in the hands of this Committee unwisdom and economically unsound. It harder perhaps than any other entirely against it when things improve. The with the request that the points raised is earnestly to be hoped therefore that local Company.

improvements made in the Company's should have its attention. Reference has the Board, will call a halt to all future buildings and plant during the past few years have reduced maintenance, and the already been made to the world-wide borrowing. coat of consumable stores in working ex- stagnation in the shipbuilding industry, I would also urge the serious attention penses down to about a minimum and able to mag beta test fortunate in being of the Board of Directors, who, after all, the only problem we have to face in

maintain payment a divi- very dull times is that of our staff, both dend until this past year. With the con- are the custodians of the shareholders' European and Chinese.

ditions that have had to be faced since property, to carefully review the manzer the middle of last year, it is no chifte

We started, the year fairly well and had three new vessels under construction With a small profit for the first six months working we were looking for ward to a moderately successful year when the troubles to which I have re ferred began. A working nucleus of our Chinese artisana, to whom we are very grateful, stayed with us and I venture to think that it was in a measure due to the loyalty of these men in sticking to a minimum of European staff compatible will show that the Directors to-day hold their work in spite of intimidation that bers of the staff have left us during the issued capital of the Company. They Kelly Sayce's comments, I notice that he with efficiency no less than sixteen mem or directly represent over one-tenth of the The CHAIRMAN: With reference to Mr. the labour troubles of this Colony both past twelve months and have not been deplore, with you, the loss made last yeared the appointment of a Committee of industrial and domestic were overcame shortly going Home on leave after five Committee of shareholders who will in Investigation to which I have refer

replaced. Moreover, eight more

was one of the shareholders who request- are and have been happy to welcome the Unfortunately, however, a great number or years in the Colony. This de due course put forward their recommendared think it is rather difficult of our essential men absented themselves.pletion would leave, us dangerously un- tions." The result of these labour troubles was and as business improves

derstaffed when conditions become normal

for a shareholder to criticise the in- What I think every shareholder wishes terior working and management of the to drive repair work away from this necessary to add to our staff.

will be to know is that his interests are being company without having investigated it port, and to delay and thus very con- indicated to us by some of our most is so is no doubt the purpose for which wittee of Investigation have enquired into It has been properly cared for. To ascertain that this in person. No doubt, when the Come siderably increase the cost of any new rush of work we were short-handed and therefore, that the matters about which their disposal they will be in a position valued clients that when there was a the questions were framed. I suggest, it with all the books and information at construction we had in hand. This new that their work did not receive sufficient information is desired should be placed to say whether the Directors have mis- work, though it has not been profitable, supervision. This, gentlemen, is a most before the Shareholders' Committee who managed the Company's business or not, we were fortunate in having, as it kept only retain our clients and add to them thoroughly and with more satisfaction report is received I think the matter can undesirable state of affairs, as we can will be able to go into the various points as suggested. Meanwhile, until the the nucleus I have referred to employed by ensuring that they will be satisfied than would be afforded by & series of he left as it stands. (Applause.) during the months in which there was that the work entrusted to our care will brief questions and answers in this room.

The resolution was then put to the little clac for them to do, and let the receive adequate European supervision. Still, if it is desired to put these questions meeting and carried unanimously. outside world know that we were still holders authorised an increase of capital, to the best of my ability. I may add You will recollect that last year share now, I shall be pleased to answer them

OTHER BUSINESS. alive and a going concern.

for effective supervision that there is an

It is, however, absolutely necessary for surprise that the year has come out in which the business of the company has adequate European staff. I state this are equally with you, shareholders in the period mentioned by me, and to consider with a loss. Your Directors, gentlemen, been conducted especially during the things are slack the staff could be cut the Company in a Bourishing condition radical chsage in the working and policy because it has been suggested that now Company and are just as anxious to see whether the time has not come for a down. In this connection I may say that and in a position to pay good dividends of the Company. (Appituse.) although we have always carried on with In fact a glance at the list of shareholders

PREXMTURE

21G DOCK SCHEME, POSTPONED..

With reference to the construction of

but unfortunately when the shares were that the Chief Manager will be glad to On the proposition of Mr. HO LEUNG, offered the strike and boycott commenced see any shareholder who will come to him seconded by Mr. EALLY SAYER, the Hon. the date for receiving applications for the Compady, and will be very pleased were re-elected as Directors and money became so tight that although with proposals for the better working of Sir Foul Chater and Mr. T.-G. Weall

the proposed 1,200-foot dry dock, to which the new abaren was postponed the res to show any of you over the property you On the proposition of Mr. N. VA my predecessor in the chair referred laat red to cancel the offer. Only 7,840 shares any ides of the large organization that is the appointment of Mr. D. G. M. Bernard

ponse was poor and the Directors decid own. It is doubtful if many of you have Chorcara, féconded by Mr. J. M. ALVES,”-- year, some of you will doubtless wish to were applied for and issued. When con required for modern shipbuilding and, for as a member of the Board was confirmed, know how the matter now stands. The ditions become normal it will be neces competition with similar undertakings in On the motion of Mr. G. W. SEWELL new pump house fitted with electrically sary for the Directors to make a freal other countries. For now tonnage we seconded by the Hon." ME A. O. LANG, driven pumps which is common to our offer of shares on terms to be settled by have to compete with Home yards, who, Messrs. Lowe, Bingham & Matthews, and present No. 1 Dock and the proposed them in dne, course Bhareholders may as you know, have been devoting a con- Messrs. Percy Smith, Seth & Fleming were dock, is now complete and has been in rest assured that the new shares will be siderable amount of time and energy to re-elected as auditors for the ensuing year action since the end of September with offered to them in proportion to their cheapening the cost of building, and we at a remuneration of $1,500 endir considerable resultant economy in cool holding of shares whether of the old ones have to keep right abreast of the times The CHAIRMAN That is all the business consumption. Your Directors do not or those issued last Bummer which will in order not to be left behind and out in of the meeting, gentlemen, and I thank propose to proceed further with the rank equally with the former.

the cold

you for your attendance.