1931-09-01 — Page 7

"CHOSEN WISELY AND

# CONSCIENTIOUSLY."

TRIBUTE TO DIRECTORS AT COMPANY MEETING.

HON. MR.

'J, P., BRAGA REVIEWS PAST YEAR'S › WORKING OF HONG KONG CONSTRUCTION COMPANY,

'In my humbls opinion, you are choosing the better course,. that of vision and commendable initiative, and the Directors are to be congratulated on their courage and faith in this Company,. in bringing before us this far-reaching proposition.

at if It is my firm belief that you have not only chosen wisely, but, I am sure, conscientiously and with due deliberation;"', said Mr. Joseph Gould, in his speech supporting the Chairman's rou solution to increase the Company's capital by an issue, of 430,000 2, new shares of a cach, at yesterday's meeting of the Hong Kong Engineering and Construction Co., Ltd.

The Hon. Mr. J. P. Braga occupied the chair and his address to the meeting was a lengthy one, reviewing the past year's work- ing and also hinting at the prospects for the future.

400,000 NEW SHARES TO BE ISSUED.

CHAIRMAN'S SPEECH. The Chairman said:-To those of you who attended the private meeting of shareholders on April 29 last year, and to others who were present at the crdinary yearly meeting on the same day this year, the advertised intima- tion of the proposal to increase the capital of the Company will not have come as'a surprise.

present on the more or less pre carious sources of its oxisting carn. ing powers, but that income should also be confidently looked forward to in the shape of earnings duriv able from land development and residential properties.

To carry out the scheme money will, of necessity, be required. We have in available cash, on current account with our lankers, and in To carry this propcial into effect, investments, a fair amount of however, it is necessary for your money. This has been augmented Board of Directors to approach you by the substantial proceeds of the in general meeting for authorinsale of the Company's unised. extensive tion of the proposed increase of shares. For the capital. And it devolves on the working of the scheme, however, the amount now available should Chairman of Directors to explain briefly the reasons that have led them to submit to you the propos al now under consideration.

Contemplated Liquidation." It was only sixteen months agɔ that a large body of shareholders contemplated the advisability of voluntary liquidation of the Com- pany Every opportunity was afforded then to carry their wish into effect if that were the desire of a collective majority of share- holders after they had been con- sulted in the matter. A private mecting of shareholders was duly held to consider whether it, was in the best interest of shareholders to. proceed to liquidation.

recom

more

consider, be increased. The process of augmentation need not bo sudden or querous; it can be ac complished in easy stages. If you approve of the reaclution which f nm about to move for your adop tjoi, you can rest assured that the amounts that may be called up from time to time will not be in excess of requirements, ' always al- lowing a reasonable sum for con tingencies.

Faith or Distrust ?

Your forebearance is claimed in you have not been presented with" details of the projected scheme. You will, we trust, realise that, in your best interests, no more need At the same meeting, a scheme of ic said at the present moment than „that “it has to do with land dave- capital reorganisation Cas mended by your Board of Direc-lopment and the construction of ro tors, was submitted to the shareBidential houses and, if deemed ex holders who, after debating the question, decided upon reorganisa- tion, instead of liquidation. This decision was taken after a very full and free discussion, in which e veral shareholders took part, of the suggestion to wind up the Com pany. The outcome of that meet int was, as I have just stated, the adoption of your Directors' recom mendation for a scheme of capital reorganisation and the restriction; for a time, of the scope of the Company's operations to certain branches of its business only.

"

pedient, apartment buildings also. Estimates of the work have been checked up by our technical Mana ger, and your Directors are satis fied that the scheine, contains the essentials of a promising under taking, given conditicos that are not upset by abnormal circum. stances.

I would like to say that your acceptance or rejection of the pra posal now before you resclves it f into a declaration of alterna tively, your faith in, or your dis trust cf, the Colony's futurs pros pects. For those among us who live and move and have aur be. ing" in Hong Kong there can bo no equivocal opinion. It has to br that the future growth of the Colony will expced anything that has been anon here in the past, And, if you hold that view your decision can only be one of logical acceptance.

Ground for Optimism. Thereafter, with drastic economy, profitable trading reaulted. The effect of the new policy and, the results arising out of it were re- viewed by the Chairman at the or dinary yearly meeting of the Com- pany held in April last. It was then indicated that, in the opinion of our Directors the Company's

Letters to the Press, policy of restrictive operation

Your attention will have been at might, with advantage, be modified. This view was based on the improv tracted to two anonymous letters ed financial position of the Com-appearing in the newspapers last pany on December 31, 1930. Saturday and this morning.

Or- Since then, there has been a fur-dinary, it is not the policy of the ther substantial improvement in the Board to take notice of anonymous criticisins, especially when occasion Company's finances

It may be too much to expect a continuance of the recent rate of progression. At the same time, there is ground for optimism that, if we continue to, do as well as we Eave done during the past six months the earnings at the end of the current year will provide some justification for the Directors ro commendation for the broadening of the scope of the Company's a tirities.

The necessity for this recom. mendation, we are convinced bo comes all the more apparent when it is borne in mind that the abnormal building activity through out the Colony, during the past two years may not be maintained to the full extent to which it has found reflection in your Company's im proved trading accounts.

"Ambitious" Scheme. Very careful consideration ha been given by your Directors to a

HONG KONG DAILY PRESS, TUESDAY

you are prepared to furnish them the authorisation, for which we ary unw approaching your in

The resolution, which I now. formally move, is as follows-

dond than the last, even with the new capital now being called upt

3. Do the Directors think test. the new capital now being call up can be suitably omp oyed for the Company, and can the Dire tors inform tho

shareholders what they suppose the income will be from the new" capital 1/

· The Chairman:-Mr. Chau, it affords the Directers much plea. sure in replying to your questions,

That the capita of the Com pany be increased to one million dollars by the creation of four hundred thousand new, shares of the nominal value of 82.00 each and that such new shares be in sued of such time oy times and on such terms and conditions the Directors shall in their ah solute discretion see fit."

The motion was seconded by par. Mr. L. Kadoorie.”

Mr. 7, Gould.”

In supporting the resolution, Mr. Joseph Gould said: I should a to be permitted to say a few words.

mitted from the Chair and second in support of the Rosolution sub ed by Mr. Kadoorie, 44

The reply to the Arst question in

SEPTEMBER 1 1931.

HONG KONG STOCK

MARKET

YESTERDAY'S TRANSAC-

TIONS.

The market was quietly, steady yesterday morning, and there were enquiries for most stocks with prices maintained..AN V

Banks changed hands at $2,035. Unions after being done at $355, were wanted at 8550

Underwriters were dealt in at

in the affirmative It is our in-86.05, but at the close there ware

|buyers at this rate, g tention to issue the new shares at

The information desired by you in the second question is as fol.

The amount at credit in current

Shanghai Bank is 8198,377.11, be account with the Hong Kong and

aides which there are the Com-

Wharves, which were reported sales at $183), were in demand at 1893, but no shares came out at this figure.

Providents had no enquiries, but sales were effected at $6.45.

Hotel (old) had sellers at $17.50)|

$10:50 ut buyers did not.go beyond $17.25. The new shares had buyers offering

Lands were again" ir dèmiand at 801) without leading to business.

Humphreys (old) and (new) were in demand at 359) and 99%, respee tively

Realties were wanted at $17.70.

at this rutes

In doing so, I am fully alivo to the fast, that we are about to von-pany's investments. They repre ture into an extended field of sent at to-day's market rate, operations, and to accept on trust; total value of 888.250.00; they cost as it were, the Board's recommen- dations, but when we reflect that the Company $73,388.80. The Cen-but there was no business recorded this same Board, ably guided by pany's available cash, if the invest you, Sir, has picked up this doremonts are sold is, therefore, lict Company, which was about to be thrown into the dust-lieap, and within the 'short space of lose then eighteen months has made auch a success of it, I for one have no fear of the consequences of the adoption of this Resolution.

.::.

At any rate, the mere fact that this proposal is now before us is a clear proof that the Board is not composed of timid men, but rather

18284,527.11.

We are happy to be able to in form you that the profits on the Company's trading, exclusive of appreciation in capital investments, to date for the current year will enable us to maintain the same dividend for 1931 as that paid. in. respect of the year 1930, including such dividend as will become pay

of aton who do not shrink fromable in respect of the new capital,

uning responsibility, of men who can erize an oppertunity when it prosents itself, and this should give us confidenes to vote for the Resolution.

The times, as we all know,, call for a policy of energy, vigour and

Whether it will be good policy to pay a higher rate of dividend, in view of the project of expan aion contemplated by the Board, is a moot point at the present mo ment. I trust, however, you will Leave the question of an increased

Ewos, after being done at Tla 15.70, had sellers willing to accept Tls. 15.80, but buyers bid no higher than Tis. 15. Shanghai Cotions and Zoong Singe both had buyers at Tis. 104 and Tis. 12, respectively.

Traxis were in demand at s slightly higher rate of 22.10, which did not obtain shares.

"Star Ferries remained unchanged, with buyers at 8043, after sales at this quotation.

Yaumati Ferries changed hands at $281," and there further buyers at 8251.

China Lights were enquired for at 8291 after sales being put through at $29

Electrics were wanted at $812. Telephones (part paid) were put.

HULLO CANTON I-HULLO" HONG KONG!.

At" 11.30 a.m. to-day H.B. The Governor, Sir William Peel, K.O.N.G, K.D.E., will officially open the long distance telephone for public use, when he will speak with Mr. Lem Wan Kui, the Oipil Governor of Canton and Mr. Ching Tien Kuo, Mayor of Canton.

The picture shows the telephoto machine (centre) H.E. The Governor of Hong Kong, Sir William Peel, (left) and Mr. Lem Wan Kui the Civil Governor and Mr. "Ching Tien Kuo, the Mayor Canton,

enterprise on the part of these in dividend to the Directors, who will charge of large undertakings, take all circumstances into due on- With the merciless competition wesideration when the question of the sce all round us,

no business dividend to be declared comes up of whatever nature can nowadays for discussion by the Board next afford to stand still. You have year. aither got to march forward with vigorous strides, cr fall by the

way.

Commendable, Initiative. :

is offered at this meeting for &. And in saying this I have in

"Land Development and Building,

Our reply to your third question is this:-

The Directora have already given you an idea in the Chairman's speech you have just heard of 'the' aland development and building scheme, and I think you will agroe with the Beard that capita cannot and any safer employment that in n scheme of this nature.

fair, free and full discussion, of a mind one or two outstanding ex-project they have in view. It is proposal on which it is entirely in amples of local companies, the ad the hands of the shareholders to make their own decision. Far from ministration of which is still car insulting your intelligence, gentle- ried cu by methods that served men, of asking you to meekly and their purpose some thirty years tamely submit as a flock of gentle lambs to be shorn of your posses-ago, the result being the issue, with sicus, we emphatically: assert monotonods regularity, of a succes that we will accent as your mansion of yearly balando shoots that date the decision arrived at by must surely make their poor share your valing to-day (Applause), helders wonder whether they will Atid now for a persona! word of recover any portion of their invest explanation if I may be allowed mont the indulgence. When I tock over the managing directorship of your Company, without implying any reflection whatever there was a clamour for liquidation. A grant deal of time and thought was de- voted by the wheld Board to take the Company out of the morass in- to which it had fallen, m

Turned the dormer:

I am sorry it is too premature for your. Directors to be able to stato definitely what the ince the new capital will bring in, but we hope, if ecnditions remain as they are at the time the scheme was considered and decided upon, that the capital will yield a return com No, Bir in my humble opinion,mensurate with the nature of the you are choosing the batter course, enterprise for which additional that of vision and commendable capital is asked, from the share initiative, and the Directors are to helders to-day. be congratulated on their courage and faith in this Company, in bringing before us this far-reaching propositing date 1

It is my firm belief that you have

Fortunately, we succeeded. Thur conscientiously and with due scheme they have in view and Company has turned the ocrner. deliberation which, they trust, will be regarded All we ask you now is to ensure be formally to support the Resolution moved by the Chairman as evidence of enterprise and in proposity. We have no desire to and seconded by: Mr. Endoorie.. exruest of a real endeavour to place no desire to your Company on a plane above compel your acceptance of our that of only a modest industrial lead. But this much we have no | hesitation in stating. We have not undertaking. -

It is most desirable, in your own rushed into the proposed scheme intornits, that such a scheme should without careful deliberation and contain the elements of permanent full sense of its potential benefits value and aim at establishing the to shareholders and of our respon- Soutpany earning power onillity. the trustal guardians or footing of grenter stability than your internain.

*

now the case, By this wo, MIBAT In conclusion, it remains for that the Company, revenus should your Directors to ascertain by your -not-bo-so-dependent

مالش

font whether

Shareholder's Questions,

Mr. Brags moved the resolution," which was seconded by Mr. Kadooric, and carried unanimous

Directora present were Mosers. J.

with-

through at $42, and at the close there were buyers at $34. Tamentä had buyers at

$205 out business.

Dairy Farms and Watsons were in request at $32.60 and $173, res- pectively, without changing hands: 1 Constructions had buyers at $13. pje"Afternoon's Transactions. - steady, when the demand for China Lights continued, and most stocks, mentioned were in request, qu

In the afternoon the market was

Unions were done at 85533. Wharvas were in demand at 81631 without ading to sales.

Providents (old), after being done at $6.40, were wanted at this rate. The new shares were the medium of sales at: 33.05 and 83.10.1950

Hotels (new) changed hands at $18.00, and at the close there were buyers at $10.75.

Lands were pat through at 8911 and 892, with sellers asking the latter rate, but at the and there were buyers at 913,

Shanghai Cottons had offers from Shanghai at $105 but there was nothing recorded. Make

Trams were dealt in at $22.10 and 22.20, but there were further buy ers at the former rata.! man gela Star Ferries were enquired for at 801) after sales being put through at this figure, it

China Lights were again in do- mand at 8201 and sales were effect-

“Electrics were sold at $81)," and

buyers bid 3814 at the slose

GLYN&CO

44.Old Bond St LONDON.

THE MARK FOR BETTER

QUALITY

FELT HATS.

Comfortable, distinc tive, faultless in fit and finish, "Glyn's Hats will give enduring service in wear and retain their shape to the last.

New stocks have been received with the cut edge to turn down, or with the set brim shades of Grey, Fawn, Drab, etc."

Sole Agents:

Wm. POWELL, Ltd.

not only chosen wisely, but, I am, P. Braga (chairman), L. Kadcoriced at $20)" and $201.

AR Haven (general work manager), and Lo Chung-shiu M

Ropes had buyera at $221," but H Turner (soliciter) and B. Alvos (secretary)

nothing came out. Shareholders present were Dairy Farms were done at $33, Messrs, M. H. Lo; C, J. Remedios, sellers offering to go on at this | Joseph Gould, F. L. Silva, V. L'irate, but buyers would not bid Mr. F. N. Chau asked the fol, dos Remedios, I. H. Basto, J. O higher than 1921. 4. lowing questions

Margues, F. Marques, C Marques, waisons were in request --at Will the new run of shares G. L. da Roxa, F N Chau, Choy $17.78 with abiler asking 18, and be-made-to-shareholders on the Wing-hay MAlves Wales were reported at £17.601

and will the new issu: Zimmern. HK Sequeira, J. Tane, Crawforda (old) were want Register, a

Braga Chao Kam BAR, HEEL T50 jod, the old slazes at be made at gr

2. Will the Directors give UNATAK Carvalho, A. Barradan 1.11 1.50, but no transicLIGNE WITE/CAT-11 holders some idea of the present. Basto, JP da Silva, Kwok Chan, | ried through C cash position of the Company, and Pak Lun-fung A, A. Braga, Jaf Constructions were, in demand at is the Company's proft suficient Braga, L. C. Ribeiro, D. Lopen, H. | 613,76, but this rate did not lend to to maintain or, pay, a better divi- | Tigueirido,

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