1936-02-01 — Page 2

Page

CHINESE ENGINEERING

AND MINING

Of Unregulated Competition

Effects Of

London, Dec. 31

The Twenty-third Annual Or- dinary "General Meeting of the Chinese Engineering and Mining Company. Limited, was held yes- terday at Winchester House, Lon- "don, E.C.

Mr. W. F. Turner (the chair- man), in the course of his speech, sald-The result of the opera- tions for the year is a credit ba- lace of £29,688: compared with a debit balance in the preceding year of £1,006. This is too small usum to permit of any appre clable dividend, and we therefore propose to carry it forward to the current year. The balance-sheet is one that can be contemplated with satisfaction. "The company's financial position leaves nothing to be desired,

Competition of Chinese-Owned Coalmines

The directors' report states that conditions "the unfavourable

the year which existed during

mentioned 111 their 1933-34. as

and be- last report, continued

accentuated in the year 1934-35 Trade depression increased throughout the country competition of Chinese- and the

came more

uwned coalmines was acute,"

I regret to say that our reports show that the depression has per- alsted down to the present time, which is half-way through the

current year. That, of course, is a condition front which we suffer along with other Industrial and commercial enterprises in Chia As regards the question of com- petition of Chinere-owned coal- mines, the chief managers report that:-

"Collieries all over the country, Freed at long last from military interference, are producing to the maximum of their ability with- out consideration of market con- ditions or of their own future fin- ancial stability. No Government

control exists, nor in its place can community of duence such as the Coal Minung Association exeris in Japan." The majority of tite mining companies in China are in a deplorable financial cun- dition. Having existed on louds from Chinese tanks and with fur- ther crecul restricted, they are now forced to sell their outjat. and surplus stocks at any price in order to realize cash and meet their creditors' demands.

"Every endeavour has been made throughout the year by us to call these various mining com- panies to some realization of our common interests and by negotia- tion to establish some equitable form or control of production and distribution. With the exception of agreement with the Chung Hsing Mining Company, all our

Future Possibilities

are alert

The chief managers as to the need of the situation and the possibility of bringing about some combination of coal- mining interests to deal with the questions of production and of the marketing of coal in the general interest. Sooner or later some such combination,

would

think, must come into being, with results that will be beneficial to the business of the administration and restore 10 this company a reasonable and satisfactory de- of the prosperity which It gree enjoyed for so many years.

The directors: report goes na to say that "on the other hand it is satisfactory to be able to report that the transport of coal from the Kalping Mines by the Peiping- Liaoning Railway has not been interrupted and that there has been an almost entire absence at the mines of the labour troubles which were formerly a cause of grave anxiety to the management When you from time to time." rend in the newspapers more or less alarming accounts of polit!- cal changes, impending or actual; In North China, accompanied by references to the affairs of the Källan Mining Administration, you may be reassured by the fact that down to the present time there has been najinterruption in the transport, di coal from the Kallan Mines, which amounts, on the average, to about 80,000 ton, per week. and no interference with its business..

Extensive Beorganization

During the latter part of the year an extensive scheme of re- organization at the mines area was undertaken. The area was placed under the control of chter administrator so as to en- able the engineering staff to de- Vole

exclusively their attention

to the actual working of the

HONG KONG DAILY PRESS, SATURDAY, FEBRUARY 1, 1936.

ENGINEERING

INDUSTRIAL ENTERPRISES

In Chengtu

Mcdern industrial enterprises Chèngtu, the provincial capi- tal of Szechuan, date from about the beginning of the 20th cạn- tury, when the Túng Jen weaving- factory WBS established by local oficial. This enterprise was short-lived. but another

existence came into.

in 1909. known as the Chi Ming Electric

After Company, Ltd.

the es- tablishment of the Republic in- 'dustrial development was retard- ea by unsettled conditions in the province, and not comparatively recently were factories of various descriptions started on a small scale. The following are details ot some of the more important enterprises:~~

POWER-PLANTS

These are concerns engaged as public utilities in providing cur- rent for lighting and power, and are five in number, detalls being as follows:

Chi Ming Electric Company Ltd. This is the largest enter- prise of its kind in Chengtu." established in "August, 1909, with. a capital of $300,000 in 30,000 shares, and operating two plants, one outside the East Gate and one in the city. The equipment includes a turbo-dynamo of 1.000 kilo-watts and other plant, valu- ed at about $200,000. supplying 1,000 000 watts annually at .45 cents. About 30,000 lamps in the city, are supplied with current by this company. About 2,800 tons

0

coal are consumed annually, 1,200 tons being supplied by col-. lleries in Pingshan the remainder coming from Penghten.

Hsing Yih Hydro-Electric Plant. This plant was established to- ward the close of 1931. and operations started 'n January 1932, employing about 60 workers for an eight-hour day. Capital

mines, and relieving them of all, was fixed at $500.000. with $260,- extraneous matters.

You will appreciate the impor- tance of this subject if I quote Home of the reforms which are being undertaken by the chief administrator and nis depart ment: The reregistration of all our labour force, which will en- able us to strike on our payrolis labourers who succeeded either by threats of force or by bribes in securing registration under false names which enabled them obtain higher rates of pay tuan those to which they were legitim- ately entitled, and even in some cases double registradowith the financial benefits accruing from this fraud; reorganization of our stores department; reorganiza-

to

on of our workshops; and, fin- ally, predistribution of labour so

efforts have falled. The financials to eliminate the large surplus

Braits in which other companies find themselves would seem to be 100 severe to enable them to look beyond their immediate and pres- sing dimculties."" ;

Need for Rationalized Control " In another passage the chief managers say: "Our attempts: to convince our Chinese compett- tors other than the Chung Hsing Mining Company that a ration- alized control of the coal industry Is necessary have again met with failure. During recent weeks, however, a commision of Chinese Anancies and business men, tu cluding several interested in the production of coal, has visitedTM Japan at the invitation of similar Interests in that country, and during the course of their visit had the opportunity of studying the methods adopted by

labour force which we have been obliged to carry on our books over a number of years owing to our fear of the consequences if we had attempted dismissal of labour.

Position Summed Up-

I would summarize what I have said this morning in this way: the business of the Kalan Mining Að- ministration is adversely affected for the time being by condition or influences of a national char- acter-viz., the fact that China is passing through a period of severe trade"."depression, aggravated by the difficulties of the political si- uation vis-a-vis Japan. Then come the direct questions of cost of pru- duction at the Kallan Mines, the competition of Chinese-owned mines 28 regards output, and question of the selling prices of coal in the Chinese and other markets.

F

producers and suppliers of coal in Japan to We are satisfied that these mat regulate the industry. We Urters are receiving the closest at- derstand that these gentlemen tention from the chief managers were profoundly impressed with of the administratioff. There their investigations, and we are hopeful that they will institute an inquiry into the state of the 'coal industry in China and in-

is no short cut as regards the so- lution of any of them, but for my own part I cannot doubt that in course of time their efforts

000 paid-up. The neighbouring river is used for power, but as the stram dries up during the winter, water, water-power cin be utilized only for about 'x months, and for this reason gas, Diesel. and steam-engines are used to maintain a supply of electricity throughout the year. During the summer and autumn, 'when the river rises, two hydro- electric generators of 50 horse- power are uscd, used. The an- nual supply of power amounts to 500,000 watts, sold at 32 cents.

OTHER USES

When this enterprise was first established it was also planned to manufacture) motor-car parts and rice-milling machinery, but owing to financial difficulties this into scheme was never carried effect, though pumps are made to meet dernard.

Kuang Ming Industrial Com- pany,

has Ltd.This concern

manu-

three departments, electric Dght. gardenhusbanddry." and facturing. It was found in 1930, but not until April 1931, were operations actually started, capi- tal being fixed at $100 000 ot

paid-up. which half is

The electric department is equipped with two 30 h.p. and one 25 h.p. gas-engines and a 30 h.p. Diesel engine. the annual capacity amounting to 200,000 watty.

AND

BUILDING

MINING INDUSTRY PURCHASES

Canada's Realisation

The large market created by the growing mining industry of realized for Canada has been some years by those closely as- sociated with it but it is only

has recently that the market been

measured. The known. though, not the full, measure of that market for 1934 has now been valued at $78.083,000. This the estimate was prepared by statistical official of the Dominion Government in co-operation with the Ontario Mining and Cana- dian Metal Mining associations The survey is not complete as a riumber of companies and Indly- duuls did not possess records of the information needed for the purpose. It does include most of the larger mining organizations and, so far as it goes. is based on

In es data of actual purchases. timating the full value of the market provided by the mining industry. It is also necessary to remember the large and varied demands, agricultural and cther- wise, of the mining, communities. quite apart from mining stores and equipment, which form the

basis of

abova.

the estimate quoted

purchase

THE ANALYSIS An analysis of the for 1934 reveals that the total of $60.99.000 for the metal mining and non-ferrous smelting and re- finha companies comprises 80 per cent the total for the whole mining Industry. Within this group. in turn the value of the purchases by the Canadian gold mining industry alone constitutes 39.4 per cent or $23.994.000. Pur- chases by the copper-gold-silver mines and metallurgical plants smelting these ores amounted to $9,777.000; the sum of $16,170,000 nickel- was expended by the copper mining, smelting and re- Aning industry; $10.425.000 by the silver-lead-z ne mines and metal- Jurgical plants and $594,000 by the cobalt-silver mining and smelting Industries. In the non- metal mining industries pur- chases by the coal mines were, valued at $580.000 and $2.024.000 was expended in the asbestos

MACHINERY IN THE SPANISH OLIVE INDUSTRY

A recently-lisued Spanish Or- der prohibits for the duration of the depression the use in the olive industry of stoning, sorting and stuffing machines. All such opera- tions

are to be done by hand whenever possible. The explana tory note to the Order states that the general use of machinery in this industry has led to a eqn- siderable amount of unemploy-

ment among the rural population, especially in the province of Be- ville, where work of this sort was formerly an important source of gain. It is stated that a sorting machine, the supervision of which requires only one man and two women, sorts 340 bushels of olives in eight hours," a task which would require the services of 48 women and 3

If it were done by hand. Orders issued on June 9, 1934, and June 10, 1935, had, for similar reason, already

placed. certain

men

restrictions on the use of machinery in agricul-

ture.-

About 2.000 lamps are supplied with current by this concern, the rates per lamp being as follows: 16 watts, $1.20 per month: 25 watts, $1.80; 30 watts, $2.10; 40 watts, $2.90; 50 watts, $3.10; 75 Engineering. watts, $4.40. and 100 watts. $5.7 monthly. Every year about 200,000 cattles of anthracite of: from Penghsien, 70,000 cattles of charcoal, and 1,000 cattles lubricating - oil ате used

of

ICE FACTORY

maining industry. The returns received for the structural mate- rials group aggregated $2509,000.

O the total expenditures in au branches of the mining Industry throughout the Dominion, those of Ontario amounted to $35,07,000 0: 461 per cent. British Columbia (including the Yukon) stood second with an aggregate value of $17,531,000 or 23.1 per cent. Quebee came third at $9,714.000. and was followed in order by Nova Scotia $5,483,000, Manitoba and Saskatchewan $4843,000,000, Alberta $3,198,000 and New Brun- swick $240,000.

EXPENDITURES

The extent of certain particu- lar expenditures, is reflected in such items as $9,139,000 for elec- tric power. $8.871,000 for ecal, oil and other fuel, $5.311.000 for ex- plosives. $4.154,000

for lumber

and timber, "$2,301,000 for ota- tion reagents, cyanide and other chemicals, and $1.^50,000 for rock drills and parts. Other important items include pipe fittings, plum- bing supplies and valves $1,655,- 000; iron and steel bars, sheets, plates and all structural steel $1,782,000. cement, brick, building paper, paints and miscellaneous building materials $1.438 000; elec- trical equipment and supplies crushing.grinding and screening machinery and parts $1,275,000; mmachinery and parts $1,538,000: mine ma- chinery and parts including stee! mine shop equipment, hoista. pumps, etc.) $1.756,000;" smelter machinery and parts $751000. and smelter fluxes $1.509,000.

$2.343,000;

The total value of the mineral production of Carında in 1934 Lccording to the final Agures. was $278,182,000. Of this total metals accounted for $194,111,000. fuels for $54.262.000, nonmetallics for $10.502.000, clay products $2.- 680,000 and structura materials $16,806.000. The output" of 1834 showed a gain of 25 per cent approximately over 1933 and was the third higheɛt on record being exceeded only by 1930 at $279,- 874,000 and 1929 at $310,850,000.

THE WATER SUPPLY OF LIVERPOOL

The total quantity of water drawn from all the sources of supply at the disposal of the Liverpool "Corporation. Water Works during the year ending March 31, 1935, was 14,315 milion gallons. This was approximately 12 per cent. Less than the pre- Vious year and the average for the preceding five years. It is stated in the annual report of the Water Engineer that the re- duction was due to the response made to appeals for economy in the use of water. Moveover, re- strictions on the use of norepipe. were continued up till the end of November. 1934. Work on the further development of the third instalment of the Vyrnwy" Aque- duct is being actively pursued. On the Norton-Prescot section, the length of third main between Cuerdley valve house and Rain- hill valve house was completed in January, and, by means of the cross-over connections to Noa. 1 and 2 mains, an additional sup- ply was obtained. Work on other sections is progressing. Within the City of Liverpool and Its suburbs, and, in Chorley, the total length of new distribution and service mains laid during the 12 months under review was 24 miles 306 yards. Of this length the Corporation housing schemes were responsible for 3,616 yards of, 4-1, 5-in arid 8-in mains. Davidson, Lieut.-Colonel JR. C.M.G., relinquished the position of Chlef Engineer on May 31, 1934, after forty years' service with the Department (including twenty years as Chief Engineer), and took up the appointment of Chief Engineer to the Metropoli- tan Water Board. He was suc- cceded by Mr. F. Hibbert. Engineering.

Teing Yang Ice Factory- Founded 1932 with a capital of $10.000, this concetri is engaged by the concem. The manufac-

in manufacturing ice and mine- turing department is Ja tit

tal waters, the plant being worth branch. factory outside the South) Gate, where there is a 16 h.p.

approximatey $70.000. Although full annua capacity is 900.000 gas-engine, But on account d financial dificulties, operations pounds of ice, and 1,800,000 bot are limited to the making of ties of mineral waters, the actual

annual outpat is only 300,000 Water. pounds and 160,000 bottles A

augurate an association to devise, will be attended by a substantial machinery parts. The gardening

means of adopting similar me-. degree of success and that, sub- thods.

ject to what I have called the con ditions or influences of a national character, we may look for bet ter results than those which have been obtained during the last two or three years. The chief man- agers, Mr. J. Nathan and Mr. C. Kn, and the heads of departmen deserve our thanks for the ser vices they have rendered under 'the difficult conditions of the past year.

"There being neither Govern- ment control of this industry nor any effective association serving the industry as a whole, no genez al figures of demand and supply are available. From information, gathered by our various agents in the different markets in which they operate, we estimate that the demand for coal throughout China during the last financial year was some 10 per cent. ·less "than during the preceding year."

department is temporarllF BUB- pended. The workers employed in the two active departments number, 40, receiving from $12 to $30 per month and working eight hours, daily.

of

Io Chung Machine Shop This is a small conern establish- ed in 1934, with a capital $10,000, to provide work for men formerly employed in the repair- shop of the 24th Army. It has a Diesel engine

sales department is being main tained in the city, but the bual ness season lasts only for six months in a year.popyt po

's An experimental workshop is attached to the Provincial Tech nical College, organized in 1913, and ensting $30,000. It consists of four departments-mechancial, metal beating pattern making and casting and is equipped cal experience number about a

$25.000, Workers employed are about 30 in number, while students working to gain practi-

and employed with a 10-hp, gas engine, a dozen The principal output con- ists of boilers, machinery Darte, The report and accounts, were about 30 men in manufacturing/ plane, a drilling-machine and unanimously adopted

machine" parts and repata

other plant, valued altogether at me

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