1930-03-05 — Page 3

SHAREHOLDERS CENSURE DIRECTORS.

(CONTINUED FROM PAGE 2.)

an extraordinary general meeting ourselves, and we therefore ask that, before a majority decision of this Board, against our views, be car ried into effect, a reasonable oppor "dinary general meeting."

THE HONG KONG DAILY PRESS, WEDNESDAY, MARCH 5, 1930.

C.N. CO.'S VIEWS,

gyndicate of value to the Company. By this means a number of vessels which would otherwise be free to trade between Hong Kong and MR. T. HR SHAW SUPPORTS

DIRECTORS, Canton are kept of the berth, and two at least of these wers actually purchased by the syndicats in order to ensure her removal from the Canton River,

To Avoid a Rate War..

Other benefits derived from`as- sociation with this orginisation are Kong, three in Caston and two in

Mr. T H. R. Shaw, addressing "the meeting, daid:-.

to him? Mr. Hung has $1,000,000

A Friendly Competition. to fall back on against his under-

Objection to a policy which taking to pay $105,000 a month to hrought about such results is hard the Company under his tender if

to understand. It is based, the it had boar accepted, to liquidate Board are told, on the fact that his losses in the event of any freight the Farming. Syndicate are interest war, which, it is surmised, might' ed in A Company owning two Butterfield and Swire's Attitude.

eventuate. The Company is, there- steamers on' the Canton berth, Throughout these negotiations. Ifore, amply guaranteed. My honest which it is claimed would never was definitely given to understand conviction is that even if the Comhave been acquired had it not been that Butterfeld and Swire, and pany, were to lose a little at first for the profits made from the agreed in principle to the working by giving the contract to an out- Syndicate's contract with this Com- sider it should do so, and I confess pany. Let us consider the position. whereby the Company should run its steamers on its own account for so where the Company would get was given to these people, the Com-

more and is amply secured.

pany were not in a position to build a certain period. On February 6, however, Messrs. Li Tse 1930,

The question, therefore, for you or purchase pew tonnage them Fong and M. K. Lo were informed as shareholders to decide is whether selves. No profits were being made by the Chairman of the Board that you agres with the majority of the and the dividend was being paid

out of reserves. The Board can Butterfeld and Swite had received directors that merely because we telegraphic instructions from their are doing better now than in years sented to these steamers being office in London to the following gone bydue largely to internal pinced on the berth which the Com economy and to my action resulting pany could not at that time serve effect: Any change in the pre-

1998-we are to leave well alone was better to have the vessels of Steamboat Company's steamers

friendly competitor who would would mean that China Navigation and ignore the vital question of the Company would entertain another future existence of the Company support the Company's policy rather and its dependence on Mr. Woo, than steamers operated by out farmer which would create an un-

or whether the Company should, as siders, competition with whom the workable position and may lead to Mesara Deacons, on behalf of eventual breaking up of the exist

soon as possible, extricate itself Company had learned from bitter the Company informed us on ing pool agreement between the from its present dependent posi experience could so seriously affect December 8, 1920, that the Requisi-Steamboat Company and the China tion and award the farming coa-

their earnings. It was as much in tion meeting, would be held on Navigation Company."

tract to an outsider who will then

the interests of the Company as of Desember 23, 1920, at 3 p.m.. On

do most of the fighting if there

the Farming Syndicate that the two December 11, 1020, Messe. Le

shall be any freight war, or to run and Lo, on my behalf, replied to

the business on the Company's on Messrs. Deacons noting the date of

account. the Requisition meeting, and giving them notice of the Resolution which it was intended to be moved 'at such meeting.

tunity be given to call this extraor out of some amicable arrangement cannot see any sense in not doing At the time the farming contract that they own a wharf in Hong / Steamboat Co." for a.

This subject was again deliberat. ed at two subsequent meetings of the Board, via., on the 20th and esth. November, respectively. The other directors rafused to accept this suggestion, and persisted in their insistence which was carried by i mbajority of votes to negotiate with Mr. Woo with a

and in consequence Mr. Li Tse Fong, Mr. M. K. Lo and I have resigned from our positions as directors,

Macão, which means that theso wharves are not available to outside ateamers, and the syndicate. further has an arrangement with two other companies with regard to their wharves. During the 11 years of co-operation between the Company and the Syndicate, the latter have ments with outside steamers with regard to their 'spheres of opern- tion, in order that rates on the Canton and Macro Lines might be maintained at a fair level and the trades might yield a moderato margin of profit,

view to awarding the tender to him, gent system of farming of the in an improved teader for the year sufficiently themselves, because it on several occasions made arrange" experiences in other directions

Efforts to Reach Compromiss. Since then it was suggested that an effort should be made to reach 4 compromise ja order to avoid the necessity of LA extraordinary menting. Holding the strong opi. nion I did, and do, it was of course impossible for me to be a party to any arrangement which would be at variance with my views. But I was given to understand that the Company would consider the ques tion of running the steamers on its own as an experiment for a certain poried, under certain conditions. I was thereupon urged to consent to postponement of the meeting in order that such negotiations might take place.

FARMING SYSTEM

: DEFENDED.

封

CHAIRMAN REVIEWS

ADVANTAGES.

The Chairman said in reply — Your directors were asked to call this meeting of shareholders on their own initiative but declined, as

The Chairman stated that he must interpret this as meaning that in the event of the farming agree inent not being to Mr. Woo there would be open competition between the Navigation Company and Woo Hay Tong on the one hand, and the Steamboat Company on the other, and that in the circumstances" any farther negotiations would be futile

thus be seen. "that" It will although the Board was willing to run its steamers on its own account under conditions which amply pro tect the Company from being in farming agreement had been ad-

the questions which have been rais bored to, together with the prospected is not in the best interests of of an enhanced profit, and although the Company and these questions are moreover of a purely domestic both Butterfield and Swire and Mr. Woo had agreed in principle to the

nature requiring for just apprecia- Company taking this step, the tion an intimate knowledge of the Company now proposes to continue ramifications of the Company's the system of farming out to Mr. business and their relations with competitors which it is impossible for the general body of shareholders to possess. As however, the meet ing has been requisitioned, the Board desire to lay before you the fullest possible explanation of their policy, for which they ask your approval and support.

vessels should be berthed.

A further advantage of the farm ing ayatom arises from a consider able saving in overhead expenses, but with a view to meeting the wishes as far as possible of the shareholders who have requisitioned this meeting, and at the same time safeguarding the Company's posi- tion on the Canton River, your directors have thoroughly examined into the other proposal that has boen put forward, that the Company should operate the Chinese freight and passenger business themselves, under the control of a sub-commit

You will appreciate that were the Company now either to revert to the practice of operating the Chi- nese freight and passenger business themselves, without adequate safe guards, which aystem has been proved unsconamient; or were they to hand this business over to some other party, they would lose all the benefits I have just enumerated and the Company, either alone or with the assistance of the now farmer, would have to meet the competition not only of new

comers on the River but that of the present con- tractors' organisation as well. The Board are convinced that a rate war would be inevitable, and heavy be incurred. It has been suggested that these losses would be borne by the new farmer, but the sugges- tion can hardly be, taken seriously.

As soon as the strain became severe, he would naturally forfeit his security and the Company would then have to choose between the continuance of this competition, or, if it were then possibles come to same agreement with other lines similar to that which we have at present.

3

MR. BRAGA'S VIEWS."

Mr. Braga, addressing the gather-. ing, said in that the first place the Chairman had said that the matter, was one for the Board of Dirso- tors. The management of the business of the Company was

DINOS

Mr. Bragi added that came in and as 'quickly went out, but Sir Robert has gone on for the last 15 years. Sir Robert was an outstanding personality in the busi news commity of the "Colony. He held a position second to none.

I should like to explain the vested in the hands of the Board Chias Navigation Co.'s views with of Directors as constitutionally regard to this "matter. We have formed by the meeting of share- been closely associated with the bolders. But the position of the number of board was, in Mr. Braga's view, years, during which we have con- like Tennyson's brook: Men may sulted freely together on all ques come, and men may go but I go on

forever."! tiens afecting our mutus) interests.

The present policy of farming by contract the Chinese freight and passenger earnings of the steamers

the result of careful considera on and agreement between the Steamboat Co.'s directors and our- selves, and it is the outcome of which definitely proved to be un-

Continuing Mr. Brage said:— "A carofa! perusal of Sir Robert remunerative. As the chairman Ho Tung's circular letter of Febru of existing arrangements earnings fact that personal feeling" do has pointed out, since the inception ary 20 last reveals the outstanding have steadily improved and stable not enter into the discussion of the conditions have been maintained. question under consideration be The present holder of the contract win himself and Mr. Woo Hay is our Shipping Compradore, and Tong, nor, feel perfectly certain, although we have no financial or are personal feelings " responsible. other interest in it whatsoever, nor for keeping apart the two groups of in any of the steamers with which differing directors. We mect, there- he is concerned, we do know that fore, in an atmosphere unvitiated it is a good tender in relation to by rancour or personal animus. the responsibilities and guarantees Whers neither passion nor caprice connected with it, and we consider animates the spirit of either party, it would be a grave mistake to | to-day's discussion can be conducted commit the Company to other ar- entirely on the merits of the ques rangements which did not protection in dispute. these assurances.

Arrangements With Competing Steamers.

I am not blind to the fact that. the unfortunate difference that has arisen is one of vital interest to shareholders. I feel confident that Both the Steamboat Company Sir Robert Ha Tung and his Chi- and ourselves are ready to consider what arrangements are best for the

nese associates, until recently on the interests of the joint services, and re-elected to that board, have resort- Board of Directors, and to-day posal was put before the directors a decision as a last resort and after that alternative arrangements to they had exhausted all means for the present contract should be con-

worse position than if the existing in their opinion public discussion of appointing a compradore working losses for an indefinite period would with that object, when the pro- | éd to a tribunal of shareholders for

Woo.

History of the Agreement With B. & §.

It is neither desirable nor neces- To define the relations, between sary to go into detail over these Messrs. Butterfield and Swire and negotiations. I would merely there the Company, shareholders, who for any that there were exchange cannot in expected to be aware of of memoranda between myself and the history of the Batterfield and the Company, and there were in Swire-Steamboat Co. Agreement, terviews, with the result that both Parties agreed to the principle that deals true this the Company should run the Chin-utline of the history of this part

nership. es freight and passage side of its i business on its own account for one entered into a working agreement In 1979 the Steamboat Company year, under an arrangement or unwith Butterfield and Swire (China derstanding with Mr. Woo Hay Navigation Co., Etd.). Tong which has for its affect the By an agreement known as the elimination of any possility Kinshan Agreement," which will n freight war between the two par expire on December 31, 1936, the ties. The Company was to run the Steamboat Co. on 3/3ths and But business through the Chinese dice terfield and Swise own 3/8ths of tors, who were to be invited to the ship. Butterfield and Swire rejoin the Board. This sub-com-fay 3/8ths of all the working ex mittee was, of course, to be subject penses except charges for the Steam- to the control of the Board, but boat Co.'s mansement, and re-

would have the same authority in relation to the management of the Chinese staff, etc., as that which

cives 3/8ths of the gross receipts. The Kinshan is years old.

Under another Agreement expir

would be exercised by a farmex uning at the ane time, the earnings der a farming contract.

A Guarantee offered.

of the Steamboat Co.'s sis. Taishan and Langahan are pooled with those of sa. Fatshan which was built in 1897.

k

In order, however, to show the sincerity of my own convictions IS 1924 the Steamboat Co. has would like to state more fully one vested over a million and a half of the terms insisted upon by the dollars in new tonnage, whereas the Board, to which I agreed. Ona of China Navigation Co., Ltd., still the Board's conditions was;-"As operates the .s. Fatahan. the Board will be abandoning a secured revenue from the Farming Contract they consider the Com- pany should have a guarantee that the carnings during the period of the new system will be maintained at not less than the amount which would have been assured to the Company if the present Farming Syndicate's tenders had been as cepted."

It will be seen that Butterfield and Swire's rights in relation to the profits of the trade between Hong Kong and Canton are the 'same now is they were in 1870 al. though Butterfield and Swire still own only 3/8ths of the Kinshan and the hole of the Fatshan, whereas the Steamboat Company owas a fleet, in respect of which over a

tee formed of Chinese "directors.

Coat of Operating Chinese Business,

If the Company were to operate the Chinese freight and passenger business themselves, it would be necessary to employ a larger clerical staff in the office and, in addition, to employ and pay in the case of each steamer compradores, their staffs, cargo coolica, all of whom are at cargo. brokers, passage brokers and present supplied, guaranteed and mind the effect of open competition Furthermore, we must bear in paid by the fariners. The saving on our foreign freight and passen- It will be observed that the re: here is estimated roughly at about ger business which is no concern solution before you asserts that the $170,000 per annum. All loss in ex-of the farmers at all and the whole Directors policy of farming out, or change and in subsidiary coinage is loss in this respect would fall on in other words chartering, certain

also borne by the farming contrac the Company. Judging by past ex cargo space and passenger accom-tors. It is impossible to say exact perience the loss in foreign freight to a farmer, or contractor, who is but probably at modation on the Company'a vesselsly what this saves the Company, and passage money would prob conservative ably amount to about 820,000 per himself engaged in the same line estimate, not less than a further month. of business is prejudicial to the 3140,000 per annum. However, your interests of the Company and you Directors were willing to make the are asked to notify your Directors experiment and give the system a that they should abandon this fair trial, provided all parties in policy and adopt one of two alter-terested would agree to work on natives, viz.:

the following basis (1) Give preference to a farmer who is not engaged in the same trade.

(2) Operate the Chinese freight and passenger business on the Company's own account.

How the System Aross, In order to make clear to you how the present position has arisen it will be necessary to go back some way in the Company's history and it will, I think, be easier for you to follow if I take the two questions raised by the resolution in the re- verse order, viz.:

(1) Why do the Company farm out any part of their busi- nesa?

(2) Why do the Directors con- sider it is in the interests of the Company to 'continue to employ the present Farming Syndicate 1

a

(1) Not to compete in rates, and

to agree rates," (2) That the present Chinese stalls would not lose their positions:

(3) That the Farming Syndicate would agree not to increase their tonnage over and above what they have at present: (4) That the Farming Syndicate exercise their control over certain out-

would continue to

are in a position to do so:

would continue existing ar-

be mutually approved: (7) That the Company be assured an income at least equal to that obtainable from the Farming Syndicate.

With regard to (1), I would re- märk that the Company operate that part of the traffic known as the "foreign" freight and passen- ger business themselves and have to arrive at mutual understanding is only the on these important points, although always done so. Chinese freight and passenger traffic every possible avenue has been ex- plored by your Directors, with a which is farmed out,

view to bringing the interests con- Good Results.

cerned into agreement,

•

Buttarfeld, and Swire's Objections

to Change.

The Company has worked in friendly co-operation with the China Navigation Co., Ltd., for the last 51 years and the farming agreement embraces their steamer Fatshan, as well as the Kinshan, in which

steamer

they are interested na part owners, and is a joint contract, signed by both Companies. Messrs, Butterfield & Swire have informed the Board that they are of the opinion that departure from the present policy would be a grave mistake, and that if the decision of

fullest consideration, to renew the

amongst them should be referred to the views of the shareholders." It is with the definite purpose of ob- Laining p mandate from sharehold- ers that we are met here to-day. That mandate should, in my hum- ble opinion, determine tas action of the Board. Any other section would be opposed to the wishes of shareholders.

aidered, we agreed that they should a settlement. Indeed, in the con- be fully investigated so as to ascer-sidered statement submitted by Mr. tain whether such proposals would. Lo a meeting of the Board on November 19 last, he be of real benant to the Company.

I understand that the differences Sir Robert Ho Tung, and Mr. Li made it clear on behalf of himself, between the tenders are small; but Tse Fong that any difference apart from the actual figures, "I must emphasise that factors such Ens

with potential arrangements competing steamers and other guar- importance to the stable and Acc antees are of equal, if not more.

cessful running of the services. Our view is that the aim should be to maintain the Steamboat Co.'s and our own services so that, with out encouraging ruinous competi tion, they hold their established place in the trade on a good earn- ing basis. The Steamboat Co. have that place now, and it is proved that existing arrangements assure it to an extent which we do not consider, after the fullest investiga tion, can be secured by the new proposals, and we therefore strong ly support the decision of the directors.

MR. P. LAUDER'S VIEWS:"

Mr. P. Lauder, opposing the Resolution, said:

As a result of an honest and con:

scientious divergence of views, the ine directore have ranged them- selves into two camps, made up of three in one camp and six in the other, each tenaciously holding its own ground and apparently irre- concilable in their respective at- titudes. Both feel they aro right; both eager to safeguard, the best in- terests of the company. To both, therefore, shareholders are indebted for their earnestness of purpose.

12

The Opposing Groups.”

the leader of the

ness connections with the Chinese.

41

examine the composition of the Let me digress for a moment and

As a shareholder I drly received in one, let us call it the "minority.

membership of the opposing campa the memorandum dated the 20th directors," are the three Chinese February issued by Sir Robert Ho directers: in the other (and it will Tung and I have taken the op- be styled the "majority directors'') portunity of discussing the resolu sido ateamers so long as they the directors arrived at after the tion contained in this memorandum Both groups are made up of men the six European members. with several of the Company's of substance in this Colony; mea (5) That the Farming Syndicato agreement with the present Farm- Directors and in order to assist us who enjoy a comunereial reputation,

ing Syndicate on the best terms rangements with regard to possible is not confirmed, they will coming to a decision upon the and for, whose opinions respect is points at issue would like briefly claimed. Sir Robert Ho Tung is wharves and moorings:

entertain other farming arrange

to give you my views, ments themselves, This would

** minority!' (8) The Compradore to be a man

I do not know if the profits Mr. working whole time in the in- create an unworkable position and Woo has made from his contract group. He has given 14 years of terests of the Company and to raight lead to the severance of the with this Company have enabled This length of service places him in service to the Company as director. relations which him to found the Tuug Oa Steam the unique position of an intimato friendly mutual bave existed for så many years.

ship Company but I am confident Conducted on present lines there that what our Chairman has told personal knowledge of, and ac- are prospects of steady progress for us in respect of the Tung On Steam-quaintance with, the working of the the Company. With economies in ship Company is correct and that Company, in all its tranches and of its present and future require- million and a half dollars has been

So far it has not been possible working which have recently been had this Company not been found meats. Mr. Li Tse Fong is a large

planned, and the advantage of in-

ed there would have been other shareholder and has extensive busi- invested in new tonnage since 1924.

treased rates of hire money offered and more serious competition on To this proposal I replied as

It will thus be seen that there are

by the present Farming Syndicate the river. Further at that time our Mr. M. K. Lo is a leading member follows:-"At first it would seem

agreements legally binding on both

there is every assurance that. Company was not in a position to to be so unreasonable that those lessrs. Butterfeld and Swire and who made a bona fide suggestion the Company until December 31,

there will be progressive improve- build or purchase new tonnage and of the Chinese community of Hong to the Company entirely in the

1938. The stutus quo will, there

ment in results during the next the advent of the Tung On Steam- Kong, whose complete confidence ho

enjoys. interests of the Company should before, continue at least up to that

three years under normal working ship Company which kept competi In the year 1918, following on a

The majority group is led by the Two Tenders From Farmers.

tion in friendly hands was to the called upon to furnish guarantee time. But I for one certainly hope period of ove very bad years during

conditions, and provided there are

benefit and not to the detriment of the return of Mr. C. Gordon Chairman of Directors, who, until for the actual results of that sug that, if the Company were to run which no trading profit had been

With regard to the other question no further strikes or boycotta... gestion if it were adopted by the the steamers on its own (without made, your Board decided to give raised by the resolution, viz.:- It is the carefully considered our Company. Board that I felt too disheartened the as. Fatshan), the next few few months' trial to the farming

You will observe that our Com. Mackie,, was Mr. M. T. Johnson. "Why do the Directors consider opinion of your directors that the to wish to proceed further. But en- years' working will show to all system and the improvement in it is in the interests of the Com-only sound progressive policy open Pany prior to the inauguration of His associates are Messra, J. P. Lertaining the profound conviction concerned that the proposed course, earnings was so satisfactory that a

pany to continue to employ the to this Company at the present the farming system was not very Warren, R. E. Coxon, J. M. Alves, I do that it is to the interests of the while benefitting the Company, will contract was fixed for the whole present Farming Syndicate 1" time is to work for still closer co-successful but since it commenced. H. Little, and R. K. Batchelor. in It will therefore be seen that the Company to run such business on not be prejudicial to the interest of the following year with the. Two tenders have been received operation with the principal estab- this system good dividends

lished interesta its awn, and realising my moral of others. Therefore, there is no

Canton norrast years have been paid. Con contending parties pitted against present Farming Syndicate. Results for farming the Chinese freight

can have responsibility in any event I felt reason to doubt that from the ex-have justified the periodical renewal and passenger business this year,

sidering the times, the Report that each other River,

no other has just been issued is a good one, motive, to serve than that of the I ought to do my best to meet the perience thus gained both parties of this contract up to the present one of which is from our present Break With Farmers Suicidai. and the dividend paid is satisfac well-being of the Company of whose Board in this respect so, as, once will realise that before the termina- time and a striking illustration of contractors. Both tenders contain

tory and an increase upon that paid destiny, in Sir Robert's own words, inore, to demonstrate the sincerity tion of the existing agreements at how beneficial it has been to the the usual stipulation for reduction I have said enough I think to

last year..

they are placed in the position of of my conviction. It is, of course, the end of 1930 some antisfactory | Company is the fact that for the in hire money should additional convinge anyone with an open mind It seems to me that if you carry unbusinesslike and even quixotic arrangement could be concluded. 10 years prior to introduction of outside steamers come on the Com-that the policy advocated by, the

this resolution you may incur in

Chinese Psychology. to expect anyone to give a guaran-

the farming system gross earnings pany's trading routes other than réquisitionists of this meeting would

creased competition from the Tung 'tee involving potentially large sums

No Personal Feeling. averaged only $748,347 per annum those vessels at present operating be nothing less than suicidal for On Steamship Company and I be phasize is that the split " arose in

The point I would like to or without some consideration in re-

There are not, and never have as compared with an average of thereon, and after making s

the Company under present, condi- lieve your action may be the mean turn. 1. therefore propose that I been, any personal feelings between $1,072.108 per annum for the seven favourable an allowance for this in tions. While the wishes of holders of introducing other competition on connection with the policy of the should give the guarantee as desir- Mr. Woo and myself whatsoever. normal years under the farming the case of the new tenderer, as of so large a number of sharea, as the river, You will realizó álso ed by the Board on condition, how Apart from being a larga share system, an increase of nearly 60 per is reasonably possible, his offer expressed by the conveners of the that if you carry this resolution Chinese freight and passage busi- ever, that any profits in excess of holder of the Company I must look. cent. In making this. comparison would yield a smaller return to the meeting, have been considered and you wifl indicate that you have not mess of the Company's steamers. I the guaranteed amount should be to the interests of the Company in the years, 1922, 1025 and 1925 have Company than that of our present discussed in every reasonable way confidence in the policy laid down ask you to keep well in mind that divided equally between the Com the conscientious exercise of my been omitted as results. during contractors.

possible, it must be borne in mind by your directors. I would point it is the Chinese side of the Com- pany and the guarantors. For the duties as a director. The fact that these years were affected by strikes Your directors have, however,

that the Board are representative out that two members of your pany's business, with which wo are" purpose of this guarantee I con- Mr. Woo has done well or badly in and boycott.

further and even stronger reasons of the whole body of shareholders Board are thoroughly acquainted concerned at the moment. Can the sider that the basis should be taken years gone by is irrelevant. "The The improvement effected in the for recommending a continuance of and that they have, by that same with the shipping business, bolding European section of the Board hope Es under the existing farming conanly pertinent question is: What Company's earning power by the friendly co-operation with the representation, close knowledge and prominent positions in shipping to appreciate Chinese psychology tract, and further that, under such is in the best interest of the Com- introduction of the farming system Farming Syndicate who have car experience of what they consider circles, and I am sure you will and interpret Chinese mentality should be taken as under the exist-nile, in any other line of business, of dividends paid. For the Ave and have honourably discharged all pany, and they look upon the pro- are actuated by any other motive ing as their Chinese colleagues on guarantee, the period of trial pany? To my mind it is unthink is evident also from a comparison ried out the work most efficiently best in the interests of the Cora- agree that ncrie of your directors with the same degree of understand- ing farming contract, and further that a commercial concern should years previous to the adoption of their obligations to the Company possis which have been made as than what they consider to be in the Board? I am afraid not. The that, under such guarantee, the deliberately favour a strong com- the system, dividends were respes for a period of 11 years and whose threatening the successful continu- the best interests of our Company, lack of direct personal contact, a period of trial should be two years petitor and would act in such &tively 50 cents, $1, 31.25, 50 cents organisation, which has served the ance of the Company, and have no They are men of established re- complete absence of the knowledge at least. In this way the Company must at least get what it has been day as to make him stronger every and $1 per share, while for the five Company so well, could also, and choice therefore but to treat these putation and good judgment and I of the language, and imperfect ac following years they were respec-ander changed circumstances un proposals with the most definite and think it will be a grave error ́ on quaintance with Chinese business getting under the existing farm

On the other hand, there is a tively 82.50 82.75, $2.75, 83.25 and doubtedly would, be a factor re explicit opposition which it is in our part if we take a course con methods must necessarily place the plus the prospect of half of the person who is willing to take the 84 per sbaro. During the latter sulting in unnecessary competition. their power to offer.

trary to the policy, laid down by European members in a position of profits in excess."

contract and to pay more than Mr. Ove years transfers to business. The Board are criticised for em- The requisitionists have put for them. Provided the present policy | disadvantage A& compared with This condition was accepted on Woo agreed to pay, and furnish various reserves, pension funds, and ploying farmers who control a con- ward a very plausible case but un- of the Company is continued the their Chinese confrers. The opinion both sides subject to the reduction five times more security than Mr. amounts, written off for depreciationsiderable fleet of steamers them less shareholders wish to see the prospects are reasonably good and of the latter is, therefore, entitled of the period from two years to one Woo gave. Why should not the totalled 8011,370 as against $160,000 selves, but this is one of the facts company broken up I hope they will I would most strongly urge you to to greater consideration, and murt

| Company give the farming contract only for the five years 1014 to 1918. which makes co-operation with this vote against the resolution.

vote against the resolution.

(Continued on Page 7) year.'

ཟླ་

03

the

masters.