1938-03-29 — Page 3

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HONG KONG DAILY PRESS

Million

GOOD YEAR

Dollar

REVIEWED

MEETING

New Shares To Be Issued

"I believe that a spirit of team work and co-operation permeates this organisation which has contributed very largely to our success during 1937 and which will enable us to face the uncertainties of the future with confidence and hope. Under present-day conditions we dare not speculate as to what that future has in store for us, but at any rate we can and will work so that we deserve success," said the Hon. Mr. Stanley Dodwell, in the course of his address from the chair at the annual meeting of the Hong Kong and Whampoa Dock "Co., Ltd., held at the offices of the Company yesterday morning.

The chairman was supported by the Hon. Mr. J. J. Paterson and Messrs. J.H. Jessen, L. Radoodle (Directors, Mr. E. Cock, Chief Manuger and Mr. E L. Hosle Secretary) and the following share- holders:

Messrs, Lo Koon-hang. Lo Koon-kan, NV.A. Croucher. T. Ranisay. G.V.T. Marshall, Wong Ping-sun. G.W. Sewell, Wong Pak-kan, A.H Vaswani, E. Abraham. A.H. Ports and A.R. Fullerton (representing Messrs. Felix and J.E. Joseph).

135

GENERAL

Profit

For

TUESDAY, MARCH 29, 1938.-PAGE 3

Kowloon

Docks

EXTRAORDINARY MEETING

each shareholder calling this ex- traordinary general meeting.

Under the Articles of Associa- Following the annual meeting ansion of the Company it is neces-

repaired It is for this

we for the building of Diesel Engines ed without delay and reason that strongly recommend only the same of the Burmeister and Wain type. expeditiously, thanks to our hav dividend as last year, but that We now have orders for five en- ing on hand sufficient steel for $507,300 of the Reserve Fund begines, a very gratifying sequel to the purpose. that

Glant

To all the extra work entailed extraordinary meeting was held at sary before any part of the un- statement. Our capitalised in the manner of which to

the following resolution. divided proats can be capitalised you have been notided, and that crane has passed its tests with no

by this catastrophe, your stad, which both European and Chinese, re- proposed by the chairman and to pass a resolution to that effect we make a fresh issue of $1,014,600 difficulty of any kind, and is now

sponded in a manner which de-seconded by the Hon. Mr. J. J. in General Meeting. Your Direc- of the unissued capital at par, and connected up with the Kowloon- tcsts have

serves the admiration and the Paterson, was passed:- so bring our capital more nearly Canton railway. The

thanks of all concerned. to the gure it should be for an been witnessed by Lloyds and

Another abnormal other Society Surveyors and our

happening enterprise such as ours.

Civil Engineer advisers, and certi during the year found us able and feates obtained from them.

glad to render assistance to. of our owner friends. By landing and atering cargo on our property during the congestion caused by the hostilities in the North, we enabled some of them to keep their ships running which otherwise would have suffered serious delay.

PROMISING FUTURE the times we are passing through. it is folly to prophesy SEPTEMBER TYPHOON but taking into consideration the

In my early remarks I made reduction in interest, which the passing reference to the typhoon, new capital" wil1 automatically but I think its magnitude and its bring about. your Board consider results call for something more that there is a reasonable prospect from me.

of maintaining the present level While it may be difficult for us of dividend even in normal times, not to recall the old proverb that The capitalising of the Reserve "It's an ili wind that blows nobody Fund will require a resolution, any good" these cataclysmic bring which will be put before you later widespread distress and worse to

The other appropriations commended are considered essen- tial by the Board, and I feel sure material have naturally in-will meet with your approval.

CHAIRMAN'S SPEECH Addressing the meeting the creased with "the larger volume of chairman sald:—

Gentlemen:--The gross profit of $1.780,579.59 is the best we have had for very many years. It is the result of hard work during what we must regard as an ex- ceptional year, in that it embraced one of the worst typhoons in the history of the Colony.

Before the typhoon, however, our work had increased consider-

above ably

work and are conservatively valued at present-day prices. The in- aneing of our larger stock require- ments, together with that of our new construction work, account tor! the fact that our overdraft shows ifttle change from last year. 1 venture to think, however, that it is a more healthy overdraft than formerly.

CAUTIOUS ATTITUDE

the level of '1336. Depreciation of necessity shows several factors contributing to this a moderate Increase in proportion welcome improvement. The gen-to the increase of our plant. and

In considered ample. eral increase in world trade, the rising prices of materials and of

During the years 1935 and "1938,

the cost of new ships, which in-sensing that the pulse of overseas duced owners to keep their older trade

was gradually getting ones in working order, and the stronger, we planned. on cautions accurity brought about by a stable lines. to be ready to move with" dollar, are three good reasons for the better times should they come the increase, but another one is along. Had we not done this, we our increased efficiency.

could never have taken such full The nett profit of $1,188,961.16 advantage of the opportunities must also be considered salls-presented in 1938 and 1937, as we factory, and to relation to the have been able to do. On the gross profit abows a large pro- other hand, your Board do not portionate improvement on last intend to be carried away by a year.

spirit of over-optimism, and re- This is due of course to the cognise that it is their duty to larger volume of business, since conserve your interests against the certain of our overhead charges severe fluctuations to which all remain more or less stationary in companies connected with ship- both good and bad times. Etocks i ping are subject.

Having regard to the present wide Buctuations in the cost of materials, particularly of non

ferrous metals, it is only prudent to make provisions against a further decline in value, to the extent of $150,000.

It is also necessary that wel create a special reserve of $350,- 000 to meet the cost of 'a `new heavy engine shop on, a site much nearer than the present shop to the large ships along- xide and in the larger docks,

Not only is transport from the existing shop a costly and lengthy business, but the congestion in it is becoming serious. It was last extended in 1920, but in view of its Inconvenient location, further enlargement is uridersirable and | uneconomical.

some

EXCELLENT RESULTS We were also able to help in providing accommodation for IE- far too many of those who go to fugees, putting up altogether about

their livelihood.

and The 150 men,

children sea, for fortitude of the officers and men without charge. who kept the sea during that ter- rible night of September 1. when

reached the wind

women

I feel therefore, Gentlemen: that. quite apart from the financial Company in 1937 is one of which the highest aspect. the record of the Dock

we all may take a little pride.

I belleve that a spirit of team-

velocity ever recorded, is beyond

praise.

And so too has been the work

"That it is desirable to capi- talize the sum of $507,300.00 being part of the undivided proats of the Company stand- ing to the credit of the Com- pany's reserve fund and ac- cordingly for the purpose of effecting such capitalization in pursuance of article 122 (a) (b) of the Company's Articles of Association a bonus of $2.50 per share on the issued shares of the Company be and the same is hereby declared and that the Board of Directors be and they are hereby authoris- ed to satisfy such bonus by the distribution amongst the per-.. sons who are registered us holders of the present issued shares of the Company on the 28th day of March 1938 of one of the newly issued shares of the Company credited as fully paid up in respect of every four shares of the Company by such persons 28 aforesaid and that such new shares rank pari passu with shares already issued as from 1st day of July 1938 with regard to dividend and that the Board of Direc- tors Issue to shareholders holding a number of shares which is not a multiple of four. a fractional certificate in res- pect of the odd share or shares held by them and allot one new share to every person who shail produce (within such period as the Board of Direc- tors shall determine) fraction- al certificates making in the azgregate a total of one share and that fractional certif- cates shall carry no right to participate in dividends."

the

of the men engaged in the work and co-operations permeates salvage

held of the victims of the this organisation, which has con- storm.

In most cases there were tributed very largely to our success risks to be taken and li one at during 1937, and which will enable least there was real danger to us to face the uncertainties of the future with confidence and hope. our staff.

We exercised the most pains-Under present-day conditions we taking care for the salety of the dare not speculate as to what that so exposed, but I deeply future has in store for us, but regret that in spite of our ef- at any rate we can and will work forts. six workmen lost their so that we deserve success.

The chairman then proposed the Ilves In the salvage of the "Talamba" in peculiar circum-adoption of the report and ac- stances which could not have counts. This was seconded by Mr. Marshall and carried unanimously. been foreseen.

men

SALVAGE WORK

OTHER BUSINESS

The chairman then announced CAPACITY TREBLED

You will be interested to hear During the year we trebled our that we salved or rendered assis-that "Mr. Felix A. Joseph had re- steel furnace capacity and have tance to a very large number of signed from the Board as he was the mast important of not certain when he would return made our first large sternframe-ships. the net weight of the heavier por-which were the "Conte Verde," to the Colony.

The Hon. Mr. J. J. Paterson was tion being 3.3 tons. I mention this "Talamba." "Gertrude Maersk," to indicate that technical progress "Bonneville," "Feng Lee," "Ens relected to the Board of Directors is keeping up with the increasing Lee." Luhsing." "Kousing," "Pro- and the appointment of the Han. calls made on us, and is being duce," "Shenandoah,” “Emmy” and Mr. J. J Paterson was confirmed.

"India."

Messrs. Lowe Bingham and Mat- maintained in all departments.

Last year I was able to inform Most of these ships sustained thews and Messrs. Percy Smith, shareholders, that we held a sub-considerable damage and as each Beth and Fleming were re-elected licence from Harland and Wolf of them was floated, she was dock- 'auditors

CHAIRMAN'S SPEECH

tors recommend that the sum of $507,300 being part of the 12n- divided profits of the Company standing to the credit of the Com- pany's Reserve Fund be capitalised and that a bonus of $2.50 per share on the issued shares be de- declared and it is proposed to satisfy such bonus by the distri bution amongst the members who are registered at holders of the issued shares of the Company on March 23, 1998 of one bonus share of $10.00 each fully paid up in res- pect of every four shares held.

NEW SHARES

I do not think it necessary to read the resolution again which is rather lengthy, and with your ap- If the proval, will take it as read. resolution is passed. each share- holder will be allotted share of $10 each fully paid up in respect of every four issued shares held and such new shares will rank for dividend from July 1, certificates will next. Fractional

one new

be issued in respect of the odd share or shares (if any) in the de- nomination of one fourth of a share each.

FRACTIONAL CERTIFICATES An allotment of one new share will be made on request in ex- change for every four fractional certificates. Fractional certin- cates will carry no right to parti- cipate in any dividend and it is therefore advisable to either sell your fractional certificates or pur-. chase additional fractional certi- dates making in the aggregate a total of one share, to obtain the full benent.

There is nothing further for me to add except to say that the Board of Directors has decided that all fractional certificates ag- gregating a total of one or more In putting the resolution before complete share must be lodged the meeting the chairman said:- with the Company on or before Gentlemen: The purpose of this the June 1, 1938, after that date meeting is to deal with the resoluthe right to request an allotment tion set out in the notice sent to in respect of fractional shares will

1938-03-29 — Page 3

Comments

Private Research Note