1935-04-11 — Page 11

Daily Press 孖剌西報 All

PROFITS AND DIVIDENDS

Lecture At The University

Mr. T. A Martin, the well-known to explain the elements of my B- loca), accountant, gave a very in-ject in as non-technical language teresting talk at the University on as possible. Monday night, his subject being The term dividends is usually "Profits and Dividends." We give } the first instalment of the lecture: Addressing the gathering. Mr.

Martin sald

In accepting the invitation to speak on some subject of mutual interest to the legal and commer- | cial minded members of this Society, I feel in the position of someone who is called upon to prepare a dish that will satisfy the appetites of both the long and the lambs.

If one has no money to rook after then the next best thing is to look after the other fellow's, and I have therefore taken as my topic

Profts and Dividends' but I trust that my few words will not result In rears of indigestion from the aforesaid Hons, nor lead to any `incautious gambolling by the afore-

said lambs.

used to denote the profits of trad- my divided among the Members of a Company in proportion to their shares and by a Company I mean here a trading concern with limited liability working under the Hong Köng Companies Ordinance, 1932, and with "Ümited”, (In Chinese Yau Harn) as the last word to its name.

DIVIDENDS

Every well ordered association of Individuals has a set of rules goy- erning the internal working of the organisation, and these are known as the Articles of Association In the case of a limited company.

Just as with this Society it is found more expedient to Eave a set of rules drawn, up" to meet your

own particular and peculiar needs, so in the case of Companies one Binds that although, in principle, Į their rules and regulations follow Speaking of lambs by the way. I think it is fairly well-known that certain well defined lines, never- Imported lambs and other kinds of theless import variations are neces- nieat are always brought into Hong

sary to cater for such diverse ac- tivities มะ Banking, Insurance. Kong in cold storage. and in congratulations which I consider hotels, public utilities industrials, etc. How should have been given long since mining. amusements, by a more abier one than I--to the ever, no Company is compelled to have its own set of articles and "person who, in giving a name to a local thoroughfare where I be- lleve bears are bullied and lambs are presumably slaughtered, So

HONG KONG DAILY PRESS, THURSDAY

APRIL 11, 1935.

OF KIANGSI

TOUR OF

NEWSPAPERMEN'S TOUR

Nanfeng, City Of Oranges

(From Our Own Correspondent)

many, Chu Teh is a thorn in the side of the authorities, and to-day has a price of $100,000 (silver) on his hend.

Communist – bandit suppression, that this "Li-Teh" was appointed - told us. The difficulty of suppress by Moscow, there was documen- ing the Reds" is to a large extent tary evidence in plehty seized by due to the assistance and support | Government forces, which revest they received from the Third that at least the orders of the Internationale, he said. Within Third Internationale were con the Chinese Soviet camp, there was until three years ago, some difference of opinion among the leaders. Li Li-Shan was against Third Internationale, with which complete subservience "\ta the he was at lower heads; he was a nationalist Red, so to speak Rather impetuous, he urged almal

vered through him. This myste rious Russian It would appear, entered Kiangai vis Fuklen in the early part of 1933, in the guise military adviser to the 1st Route of a missionary. He then became

was commander. A Red Supreme War Council was formed shortly

Red Army, of which Chu Teh

taneous Red risings all over China, | after, with Chu Tưp nominally as BEd Chu En-La as Lo Ming, believed to be an Indian, chairman,

who had adopted a Chinese name, Vice-chairman. The actual sche- advocated retreat to Soviet terrimer was, however, this Ll-Tem". Within the tity walls. General tory, and attacking from that base when the opportunity per- Lo said, their investigations “have mits According to him Klangal disclosed that approximately 2,000 was too unhealthy a base. and people perished in the preceding should be given up in favour of four years. The former popula- the more inaccessible and economi- tion was over 20,000; there are cally distressed Szechuen. From barely 8,000 left to day. The there direct" and uninterrupted Goverment's blockade, too, had been very severe, and doubtless communication with and assist- tory would assure them a brighter emigres The lack of salt was in ance from contiguous, Red terri- accounted for large numbers of

LOS ANGELES TOURISTS

In Nanking And Peiping

special to the "Hong Kong Dally

. ".

Press" (Copyright);}-

Shanghai, Mar, 30. Twenty-one members of the Los

· Angeles · Chamber of Commerce Goodwill Party on tour in the Bar yesterday after a visit here of four East left Shanghai for Nanking

days. They visited Shanghai for a short time on their east-bound-trip which took them as far as Manila.

The 21 goodwill tourists, of whom 14 are women, will visit Tientsin. and Peiping and from there entrain for Mukden. From the latter point they will travel to Japan, where about two weeks will be spent m studying business conditions, and viewing the various points of in- terest. After the tour of Japan the group will take passage on the Fresident Coolidge for Los Angeles,

Shanghai, March 25th, 1935. Ten himself. Here, in a temple Forty kilometers to the south of Chu Teh had his headquarters, Nancheng lies Nanfeng, city of and within easy reach, a “funk oranges. Not oranges of the "or hole" of fairly large size on the dinary variety, but oranges no alde of a little hill to which that larger than a big marble, seedless, worthy and his more important luscious, sweet as honey and of a lieutenants would scope for shelter most dainty favour. Nanfeng has when the drone of Government alternated between. Government raiding planes were heard over- and Communist hands one knows | head. A keen and able student of not how many times, and this Marxism, which he learnt in Ger important local product has suffered considerably the last half a-dozen years. When life itself was a matter of daily uncertainty, and the seeing of another sunrise was something to feel thankful for to Providence, or whatever pame the peasants may call it--the orange groves had naturally gone to ruin. Nevertheless. Nanfeng and its environs are still able to produce $800,000/- worth of these fruits this year, according to crop estimates. That gives a rough West. idea of the size of 'this' produce, COMMUNIST STRONGHOLD and the great possibilities of its

We arrived at Niustu late in the future development, when rapid | afternoon, when the

sun was and cheap means of communica-sinking over a huge pile of ruins tion will enable the same to be that, once were Homes, shops, even abroad. A very fine wine is | was devastation in a big way. also made from these oranges.

Communism has seriously depleted the nation's strength at the most crucial moments; it has tried to divide up the country by open cruelty finally alienated the popu- (From Our Special Correspondent)fornia, but we always bear in mind warfare against the Central Gov-fation; there were Soviet trade ernment when unity and peace are and food depota;

Twice he was driven out by Government troops, in 1930 and in

Tatter 1931, but each time the relaxed, their vigilance, be back with his horde." It was only in July last gear,, when the cam- patgn was prosecuted relentlessly on all fronts that he was finally forced to make his exit to the

future.

The Third Internationale, how ever, did not favour this plan, probably not wishing to be direct ly implicated. Since both of them tell however, Klangst's Red move- ment had for the past three years

tant Red centre. There was B Ningtu itself, had been an impor-

Soviet Government there, admitt edly very emcient, though its

passing, I would like to express my Shipping, Warehousing, real estate transported' to` a wider market; temples and ancestral halls. Here been directed from another source.

those that do not, adopt a model Bet of rules and regulations at- tached as a Schedule to the Com

'known as Table "A"

this

Procelain And Hemp Other main products of district are procelain, hemp and a fine grade of tea. Under active encouragement from the authori

fact one of the greatest hardships suffered by the Red armies. In Ningtu, the lime and plasters were tore down from the walls, and cooked and bailed to extract their sodium chloride content

(To Be Continued)...

CANTON RADIO STATION BREAKDOWN

aptly named it Cold Storage Roadpanies Ordinance and this Model is ties, all these rural industries are vitally, needed by the country: “It { printed in Jufkin obtained a circu- | who tune in the local station are

or something like that.

THE INVESTOR

To those of you who live, move and have your being in the academic calm of the University, and are of the opinion that there

is much to be said for the investor who places, his money where he

Now Table "A" bays this about dividends "The Company in gen eral meeting may declare divi- dends, but no dividend shall ex

ceed the amount recommended "by the Directors which has been In-

general meeting may approve or terpreted to mean the Company decrease" the dividend recom-

showing distinct signs of rapid recovery. Nine

hundred of village roads have been built to bring about closer Inter-villegical contacts, and 100 schools in and around Nanfeng give education to more than 10,000 students.

City of 132,000 people (according to statistics of the Ministry of

can see it, this "Springtime is mended by the Directors" Table Interior taken in February 1931), which can ill be spared. Human

pleasant season of the year, as it is.

now that the mind of the scholar lightly turns to thoughts of divi- dends also, that is If, as the saying gees, he has been born with a si

ver spoon in his mouth. And in this connection I can imagine him une day in the late afternoon climbing the steps to your clock tower to obtain ‘a' panoramic view of the "tangible evidence of his numerous investments. He looks towards the City and sees sky- scraper Banks, in which he is a shareholder; many solid buildings representing his interest in land companies and the thought dashes through his mind that they are hedged against fire and other risks and he remembers his insurance holdings, including marine and 'lifc. Craft on the harbour bring to mind his Ferries, 'coastal shipping shares and the facilities offered in cost

Canton; "April 9. newspapers Canton and Hong Kong residents disappointed by its breakdown There is something wrong with the station which is being repaired for a period of three days.

known 24. XGOK,

Thanks Expressed Speaking for the group of busi- new men before their departure from Shanghal yesterday, Mr. W. I. Hollingsworth, prominent Southern California business man and vice- president of the Chamber said, "We have had a most enjoyable and Instuctive visit in Shanghai. It will aid, we hope, in a firmer

basis for the interchange of com-

modities and goodwill between the two great nations. Our interest does not begin and end in Call-

the potentialities of the entire United States. We wish to thank their courteous treatment of cur the business men of Bhanghai for

party here, and assure them that number making the trip."-- next year we will have a larger

China United Press (by Mails.

In the meantime, the radio MYSTERIOUS CHARACTER station of the Wireless Telegraphy The Third International, averr-

School at Honam suburb is the At night the electricity is too weak ed General Lo, transmitted mem- only one in operation. It broad- f added to a good deal of static.

and instructions to the casta mostly "gramophone records. "The Provincial Government is Chinese Soviets in Klangs and news from local papers. "Ow- ¡ erecting a new powerful broadcast- through a certain Russian, by the ing to the humid weather, dis- ing station at Bhek Pel, five milieu

of("Li-Teb"--that is the tant stations are bard to get name

east of the city. Machinery has or this nowadays. Z.B.W. (Hong Kong) is been ordered from England, and Sinicised pronunciation ungnessable" Russlan cognomen, clearly heard in the day time, th new station will be in operation- While there is no direct evidence when the electric current is strong by October 10.

DIRECTORY & CHRONICLE

has rendered necessary the main lation: there were, among other tenance of a numerically huge organs a branch of the Soviet army

which like a plague of Bank whose head office was at locusts eats into more than half Jaikin, printing bank-notes, and the national revenues, and leaves minting a debased copper and sil- a comparatively miserable pittance ver currency. for constructive purposes. Com- munism has cost, and is costing, the country millions of money, "A" also provides that "subject to Nanfeng has gone over the New sufferings cannot, of course, be, ages the rights of persons if any entitled Life Movement heart and soul described in terms of currency.

Ningtu was recaptured from the to shares with special rights as to Literally, hundreds and thousands dividends, all dividends shall be of Communist catch-phrases paint-Reds only in November last year, declared and paid according to the ed previously on every avaliable 80 General Lo Tso Ting, Com

the shares." blank wall, have been whitewashed mander of the Northern Route amounts pald

by other 18th Route Army engaged in the Where a Company has Articles of over, and replaced its own, as is generally the case, slogans, urging mutual organiza- for self-defence.... duty to it usually states that Table "A" is ons

Government and country, and ex- barred. It is of interest to note therefore that in such a case and hortations on observing the princi- unless the Articles otherwise pro- ples of the New Life. The neat- vide, dividends are paid on each bess, order, cleanliness of Nanfeng strongly with the share in proportion to the nominal contrasts value of that share and not upon sordidness and squalor of interior the amount paid up on it. A Com-cities situated in more backward pany had 40.000, £1 shares fully parts of the country, and with the paid up, and 20,000 £1 shares with Nanfeng that was, say, three, or 5 only paid up." A dividend was four years ago. declared in proportion to the

An important town, formerly in amount paid up on the shares-It was held that same could not be Communist hands, is Kwangchang, done. Therefore, Articles some- lying almost exactly halfway on times provide that the dividend the road between Nanfeng and the shall be paid to the shareholders famous ex-Red stronghold of proportion to the amounts paid Ningtu Kwangchang Halen-that on the shares held by them is, the town and its environ dis.. respectively,

trict-now contains only 29,764 families, totalling 85,018 sonis, among-whom able-bodied adult males number 18,611 The former population, before the Red reign In the of terror, was 110,000. township reside 4,843 people; or approximately 1.000 odd families. Out of these there are 344 widows. In other words, one wage-earner

KWANGCHANG

nection therewith his dock, whart and storage holdings. Possibly above the ticking of the clock, hein may occasionally hear the strains of faraway music and he thereupon

It seems hardly necessary to say directs his vision to the hotels, near that before you can declare a divi and far, in which he has a stake. dend there must be the fund out His eye travels along the streets and he sees moving evidence of his of which to pay it that pronts. tramways holdings both lower and Dividends can only be paid out of upper levels and then, in viewing pronts, they must not be paid out the hillside, he notes the dairy of capital. It has been laid down enterprise in which he has an in- that "even the sanction of every terest, and from thoughts of his shareholder cannot bring. within

out of every three has been food and milk, the day being late, the powers of the Company an act

which is not within, itä powers." | struck down, These figures tell he thinks of his ginger ale to come Nevertheless there is an exception more graphically than any descrip. (taken plain, no doubt) and of his mineral water holdings, not for to this rule about the necessity for tion can of the misery of the popu- getting of course the ice from his can be declared and the exception this cannot be laid at the door of having 'profits before a dividend | lace in the last few years; - Änd

ice manufacturing shares-su_cool- ing after a strenuous day tying for raising money to be spent on make

is this Where shares are issued | the irresponsible · riff-rafïs · that up of the Communist

oneself into knots-and thinking

interim dividends as they consider to be justified by the pronts.

of knots possibly reminds him of the construction of works or build- armies, because Kwangchang was his rope interests. And the sum ings or the provision of any plant the headquarters of one of the which cannot be made profitable half-a-dozen really outstanding having gone down, the lights are on, and he sees the outward and for a lengthened period, the Com- Red leaders of the notorious Chu visible signs of his electric shares, pany may pay interest on the capi-: and those big displays of lighta tal so raised, though no profits are over there remind him of his finan-earned, if the payment is authoris- ed by the Articles, sanctioned by cial interests in departmental stores and of the new hat he must the Court, and is for such period

The power to pay dividende is purchase - and thinking along as may be determined by the Court

not expressly given by the Cóm- these lines he makes a mental note and the rate is not more than 4 that on his return to earth he must per cent. per annum or such other panies Ordinance, but is inherent also use the telephone (which con rate as may for the time being be. in every trading company, and cern contributes towards his collec Prescribed by the Court; the in- therefore need not be given even tion of dividends) for the purpose of tention of these provisos being of by its Charter (mown as the Me-

course, to prevent abuse,

morandum) which governs the arranging an appofitment with 'a

Company, for it has been said that certain undergraduette to see that SHARK CAPÍTALŠ well known picture "Kitty the To meet the needs of various after all the principal reason for the Companies Ordinance is to en- Ca-ed" at that equally well-known classes of investors. Companies may able you to trade with limited ifabi- cinema in which he is a substantial have different classes of share 167 and the whole raison d'etre 3 shareholder.

capital such as preference shares for such trading to enable Now this outlook has doubtless which are usually entitled to a pre-shareholders to receive the profite been induced by the fact that most ferential fixed rate of the profits derived from such trading Where of the local enterprises I have in- and ordinary shares the dividends there are pronta available, the de- dicated, close their books on on which vary with the amount of claration of a dividend forms part December 31 and, those who can, the pront made by the Company. are thus able to pay their dividends Power is generally given in the of the normal business of the Com- round about now, and in the hope Articles as with Table "A" for the cany in general meeting, the Direc that he may improve the shining Directors to set aside out of the tors usually stating in their Re- hour, our scholar retraces his steps profits such sums as they think it to Shareholders the amon and, having paid his subscription proper as a reserve before recomwhich they recommend shop

distributed. Who has for the current year, he joins this mending a dividend (and this in-

clare gathering (taking a seat near the cludes preference dividend). door in case boredom overtakes Table "A" also states that no divi- him) to listen to some of the dend shall exceed the amount re technicalities of Dividends and commended by the Directors, and Prodis, and I will now endeavour that the Directors may declare such

endr

NOW

SALE

CHINA, JAPAN, MALAYA, STRAITS SETTLEMENTS, BORNEO, SIAM,

PHILIPPINES, KOREA, INDO-CHINA, NETHERLANDS INDIA, ETC.

for 1935

PUBLISHED ANNUALLY SINCE 1862

AN ESSENTIAL REFERENCE BOOK

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