1891-07-23 — Page 8

CHINA BORNEO COMPANY, LIMITED.

|

An extraordinary general meeting of share- holders in this company was held at noon to-day (18th (nst,) for the purpose of receiving the report of the directors and statement of account for the Inst half of 1890. There were present Messrs. |, Layton (chairman), A. P. Stokes, C. S. Sharp, Farlane, G. Fenwick, H. Wicking, A. G. Stokes, Wheeler, Joseph, Gomes, Perry, G. S, Coxon, G. M. Bain, and others.

THE HONGKONG TELEGRAPH, THURSDAY, JULY 23, 1891.

ments-my $15,000 or $20,000. The provision of this is an absolute necessity. Very good progress has been made this year with sales of timber stocks in Hongkong, and the mold stock at tha present time is comparatively small. The prices realized so far have been very fale considering everything, and we expect that a very short time more will see the end of these old stocks. There has been, If no Improvement, at any rate some movement in our timber market, and we hope soon to see some favourable opportunity of recommencing importations of suitable, sinod timber in moderate quantity. We still belleve a good market will be found here for the proper kind of stuff. The stocks at other ports are being gradually disposed of but progress is very slow and it may take some time yet before these outstandings can be anally closed up. Our tobacco lands are still unsold, so opportunity having presented itself of disposing them. The Board has been able to arrange through Messrs. T. A Gibb & Co., London, for a further extension of 13 months for Parent balance of purchase money. It is hoped the results of last season crops now on the way hour will "pravo a sufficient encouragement to stimulate some demsed for tobacco" lands on the Kinabatangan River. I don't know that there is much to be sald on the other items in the accounts, but would remark that the amounts of aundry debtors and sunday creditors have been materially reduced since the last accounts, when they figured as Creditors $139,178.30, Debtore $72,585.00; an gist Dec. Creditors $53,459.43 Debtors $31,275.39 and during the past half year further reductions have been made. Agency The present Agents, Mesme. Gibb, Livingston & Co. have resigned, but are carrying on the work of the Company until new Agents have been appointed. We had hoped to have made other arrangements but have t been able to do so. With regard to this matter and other points affecting the Company we should he much obliged 1 shareholders would make it convenient to attend a private meeting to be held at the close of this. Mr. Wheeler was invited to join the Board after the last meeting. The Directors have thought it necessary to lay before the Shareholders the facts relating to Mr. Abraham son's absence, and will be glad to have an expression of their opinion as to the course to be adopted towards him,

"not yet

of the cash also ?

EXTRACT OF LETTER FROM THE AUDITORS.

With the view of eliciting some explanation we desire to draw your attention to an extra ordinary discrepancy, shown in the accounts we have just audited in the value of timber held at Borneo by the Company. On the goth June Ego the value of timber so held, according to details finished by Mr. E. E. Abrahamson, was $55,018.38 while on 31st December of the same year the value for some unexplained reason had dwindled to $4.368.18. The expen diture between July and December 1890 of $17876.65 paid to contractors, and $23.773.51 paid coolfes &c. against an amount credited of $30.370.64 on account of shipments to Hongkong and deliveries to saw mill seem only to further complicate this simber account, and we should be glad to have the opinion of the Directors on this point before finally passing the accounts. EXTRACT OF LETTER FROM X. L. ABRAHAMSON

TO THE DIRECTORS OF THE CHINA BORNEO

Ching Qure's statement, which you will find in sy the old stock book I am forwarding, without taking the trouble to verify it in any way. And a toy method I need only point to the hopeless way in which his returns contradict one another. He was taken on at a very fair salary at a time whenɔju our business was increasing, and I placed int. plicii confidence in him, as I naturally have to do in all my subordinates, until I havo reasons to the contrary. Owing to my frequent and long absences from here and my faablilty to super- Intend personally jungle work 1" was obliged to take for granted as correct all the returns he sent in which owing to restriction of business I have now been enabled to check o

The following is the report safe

In accordance with the promise' mindo at the adjourned general meeting held on the 6th December last, your directors have now to lay before you the accounts of the Company, for the half-year ending 31st December, 1800

wall 2.

↑

Logu on steamer Sandakan working 4,238.6g Labacher and Lighters w volratni korklog.

Bad Debra 25 Salaries an Medicine attenda Telegrams

Working Auditors Fans Loss on Exchange,

By Commissions i „Tug Narmankurit Working,***

Frofit an Sales of Stores, or Sandakon Sawmills Work House and Store Rents "Profit on Sales of Attapt ⠀vania

for that period are so unfavourable.

They regret that the results of the working |,

TIMBER BUSINESS..

đậ During the6 months to December 18gs, there was” no improvement in this tende, and the Company's business in this article has been

The sawmills both at Sandakan and Hong kong have been fairly well occupied. The former very much curtalled RockNG WINE CALCULA

shows a profit on working acendit of $1,817.00/ The fatter shows a small loss of 318.30, but the

rst half of this year promises better results

THE LOCAL TRADE AND AGENCIES. Liter | Show a falling off in revenue, and the steamer Sandakan has unfortunately failed: to fulfil the anticipations formed as to, the results of her earning power. The working of the Norman

erst again shows a profitable result

No opportunity has yet presented itself of dis- posing of these. The Company has been unable to arrange the payment of kalance owing og same but & further, extension of 16 months time has been granted by the Government

Vnterest

Profit of Salo of Coafzimm............... dubbiały, t65 Lava Stock

Munster Feer A ©Balance carried to Profit and Loas

312 FROEIT AND LOSS ACCOUNT. To Amount brought forward from last

To Amount, depreciated as' për last > accounting 124 saa

Tp. Balance of Working: Account

brought down

i faktora khan adh

by Amount carried forward to a new

account............................... nafarergy dres

BVA TIMBER ETOČKE, GA ORRSTime (0) Kate of made gol. It will be observed that very heavy; amounts have had to be written off these, statements in.

B. LAYTON, regard to which will be laid before the meeting

Chairma

STATEMENT OF ACCOUNT TO DECEMBER 31ST,

Capital

1

Capital $750,000, divided into 7,500 shares of $100 each.

*Liabilities.

1,410 Shares fully paid

up allotted to E. E. PAN Abrahamson & Co.

In part payment as petit say per prospectus, exch......

757.67 375.70

300,00

3,Bay.o

164,86

376.66

130.82

20,00

18.00

·30361.89.

8.10,243.72

21,854-33

30.151.87

: $63-468.91.

ann.........$ 63,468.91

· $64,453.91.

We bave compared the Accounts with the Books and Fouchers at the Company's Office, and found them correct.

E. HENDERSON, Auditors. BAN YR.: LYALI, AMI

17 yanma "RAGIDE, LIVINGSTON & CO. Spearsteinn Agents, Hongkong and China.

Hongkong, 74th July, 1891.

BUNIAN MASA THE PROPOSED CHINESE beneath

CONSULATE,

valne $100 ..........................$141,000.00 W 140 Shares fully paid up

allotted to vendors of Sawmill in part-pay. ment of same each, Talue $100

608 Shares half paid op allotted to E.E. Abra-

|||The following letter was forwarded to the Hos. T. H. Whitehead on the 18th fast by the Government synnya muted shak

COLONIAL SECRETARY'S OFFICE,

adores Hongkong, 18th July, 18gr. SIR,With reference to the question which you put in the Legislative Comell yesterday

$4,000.03 i et ha siding whether the Government would lay an

the table coples ofrecent correspondance with the Secretary of State for the Colonles regarding the

hamson & Co. in partiotoposed appointment of a Chinese Consul at

́payment na për pros-

pectus each value $50 30,400.00 5.343 Shares kalf paid,

Hongkong; and to the reply of the Officer Admi Falstering the Government, I am directed by His up allotted to the Excellency to transmit to you for your informa

dimaal volston copy of a telegram on the subject received Hongkong & Shanghal Bank, Includ public each valus $50 267,100.00

$454,500.00 this morning from Lord Knutsford."

I have the honour to be, Sir, ing Agency Account (since closed), 87.799-09r Bills payable .......... iristen

0,104 31 Sundry Creditors ................................ $3.459-42.

The following correspondence was circulated instructions to measure only salcabin, Jogu for among the shareholders -

revaluation although my books show some 1400 logs, I have only returned 664 as having any value, the remaining 800 being either partially rotten or fall of holes and of that which is of rains a great portion is lying in the jungle where it will never pay to draw, thus reducing the average price of the whols to as low as 3 cents foot in ons instance, and in another It will af never bay to draw. Comparing the Billian stock at and of year with that of June 30th, there le a difference of 730 logs, Including everything good and bad which were all valued The Chairman after referring to the small

at the full value in June too and as seen by that attendance, due to the arrival of the mall

list the larger portion was to the jungle where to-day, sald-In accordance with the promise

felled. With regard to this 780 logs we had at made at

the last annual general meet

Copaan samas 200 more at that time than in Ing of the Company your directors have now to.

December last, Malapult we had since drawn las before you the accounts of the Company for

and made use of about 20 legs, S. Madang and the half year June-December, 1890. They

Demondang 150, S. Su Su about 70, total 440 regret that it has been impossible to present

loge leaving a difference of 340 to be accounted these accounts at an earlier date. Mr. Powell,

for at Suania, where none had been drawn. With the Company's book-keeper, only arrived in

by Chin Qui, a Chinaman engaged in Sandakan regard to this lot I can only say it was measured Sandakan in January last, and his whole time

for that purpose by Mr. Abrahamson, he was has been taken up in elucidating the accounts

COMPANY, LIMITED. > which he found in considerable confusion. In

sout over here to me and I took him up to the making up these accounts we have found It

ground to show him what was wanted. On his In reply to your letter of yth ulto, calling my necessary to write off, very large amounts. The

attention to the terrible deficiency, in the stock bringing his statement to me I took it as correct. report of the Committee of Investigation dated

of timber in Borneo and asking for explanations You will say how was it I did not know there 20th November 18go last will have already pre- pared you for considerable reductions in the

matters to be explained one, the fact of the difference between 650 and 299 loga, but I must to be laid before the shareholders there are two was some mistake, there being such a wide value of our assets, but it will not have prepared

deficiency and how it arose; the other may con- tell you that cone of these logs were cut and you for the great reduction in the value of timber

duct as manager In Bornes, in reporting timber rene lice work done on this land during my in stock that apparently never was in stock or in time, the last one and a half years, so that did stocks, more especially in Boraco, and this loss In the Borneo stock has given your directors

permitting it to be lost to the Company if it ever not know what stock there ought to have been. grave anxiety. This matter bas also attracted

was in their possession. In the first place per- there, the first year of my time with the Com the attention of the auditors, who although they

mit me to point out that the recent stock taking pany was spent almost wholly in starting have certified the accounts have done so on the

was with a view to a revaluation of the Company's tobacco lands and other odd jobs such as Saw. understanding that the Bourd would lay before

property, and therefore timber actually cut and mall, Gimanton Caves, &c., &c, and during this the meeting the information supplied them on

on the ground bat so deteriorated in value as time I had scarce anything to do with the the subject. We were quite unprepared for such

not to be saleable has not been included. For Timber work. As soon as I found out there had a diference, and here I think it is daatrable to

example, it appears from the return that there is been anything wrong hers. I made enquiries.onACCO LANDS explain the matter as fully as we can. The

no fron-wood at all where there ought to be and found the Chinaman had not only measured Committee in November stated that the actual

37,165 cubic feet. The Iron-wood is in fact on billan, but had gone out of his way to measure value of the stock in Borneo, was small, and

the ground, and' was properly returned in the

some old rotten Sengah Including it as billion, were of opinion that it would have to be largely

original stock Hat, but for want of the power to This I taxed him with but could get no explana- written down, and on consultation with Mr.

remove it, It has deteriorated so as to be now not tion from him and at once wrote and informed Abrahamson they recommended that it should

worth moving and to be unsaleable. It is there M, Abrahamson of it as he was then in Hong- stand at $15,000. The Board following out the

fore now entirely omitted. The same explan. kqng. I see Mr. Abrahamson states there is wishes of the Committee Instructed Mr. Abra-

ation applies to many other items, not of course no deficiency in the mill or Copuan stock, the hamson to furnish them with a detailed stock

to thefull extent, but to some extent. Mr. Allard ill I have nothing to do with but Copnan list made up by actually measuring the timber

should have been directed to have returned the stock shows only 113 logs this time (Decem whole of the wood in stock, and then distinguished ber) as agulust 479 in June 1890, unsaleable then in stock; and also specially directed that these stock lists should be countersigned by Mr.

Mr. Wicking wished to make a few remarks between what was of value mod what was not. So loge rict baving been included in last measure- about the Sandakan accounts. He was himself far therefore sa regard a considerable portion of ment. As tending to prove that information was Allard, #hom Mr. Abrahamson had put in -special charge of the timber department. This on the Committee of Inquiry, and had made the wood now apparently missing it was originally not held back by me into quality of billian has taken considemble. time. On the 4th memoranda at the time to which he might now properly returned by me as in stock. I am bound stock, on August 2nd last. I received an order refer. Mr. Abrahamson was invited to attend a to admit however that it is now plain to me that a for 100 logs of billian for Hongkong Dock Co. May we received returns showing the value on 31st December of the wood in Borneo to

meeting of the committee. A memorandum of great deal of timber has at different times 20 by 18 by 26.50, and knowing I could not get be $4,368.18. Upon this your Directors wrote stock on June 30th informed them that the timber

appeared in the stock lists which had so all this out of our stock and doubtful even where by return mall directing Mr." Abrahamson In stock at that date was worth $55,000, istence. I can only say that all the timberto cut it I wrote and told Mr. Abratinmkon so to hand over charge of the Company's business and that there was no necessity to reduce entered by me in the stock lists and returned or spoke to him about it, I cannot at this length of time recollect which. He writes and tells me I to Mr. Darby and to come to Hongkong at once, the valuation. Now at this meeting Mr. Abra- by me to the Directors as being in stock was to give explanations with regard to this matter hamson strongly recommended the value `to

must get it, and if I could not get it enough in so entered in accordance with vouchers and to the Board, and the shareholders in meeting, be written down a further 8a5,000. The com-certificates sent in to me in due course by our own land enclosed permission to cut on grant The actual amount, we were prepared to write mittee expressed great astonishment at this, and Mr. Allard (in charge for the last 21 years of the No. 177 belonging to a Chinaman and signed by off according to the committee's suggestion was

now there was to be another $15,000 written off, timber business and forest work of the Company) the owner Kho Hein, which I could use if $27,000; the amount we have had to write off is In fact, the truth was, as he had said before of or by other subordinates of the Company in that necessary. One would naturally ask with all our $5.550.17, or an unexpected depreciation of Mr. Abrahamson, no rellance whatever could be branch. There is no deficiency in the stock stock represented in June last, why could not $24.550.

The explanations given by Mr. placed upon bins. He had been from first to last at the mills or at Copuan where it was this be supplied?-because I was to ship nothing Abrahamson and Mr. Allard are faid on utterly untruthful and unrellable. He could not capable of being verified by me. The timber bat sound wood, and that we had not got the table for your perusal, but they are I possibly have been ignorant of the fact that deficient, is timber reported to me to have been sufficient of this size and length. Iron wood regret to say extremely unsatisfactory. Mr. the timber was not worth $55,000, for now an

Fielded and cut in the forests by the gangs of was considered as unsaleable some months ago, Abrahamson's explanation may be summed impartial inquiry bad shown that it was only coolies employed and pald by us and lying walt and so not entered on Dec. stock. Sengah up

thus: the wood and depreciated enormously, worth $4.000. Mr. Abrahamson had sent in an ing for removal to the mills or to the shipping Kruen, &c. in June last, I was not instructed to awing to the length of time it had lain in explanation, but he (Mr. Wicking) would not wharves. These forests cover over 5,000 acres,

take any measurement of this stock. It was the jungle, and no wood of an unmerchantable take the man's word on oath, such was his atter all at considerable distance from Sandakan, and compiled in the office, and value set upon it by quality has been taken into account. A great disregard of truth. The matter should be put it was a simple fimpossibility for me or for any

Mr. Abrahamson. In receiving my instructions- des] of wood that had been reported to him as

in independent hands and thoroughly sifted to the bottom. Was Mr. Abrahamson in charge of the coolle gangs. I was always shorthanded stocks in jungle and I sent infeame to office. I one in my position to check or verify the work to tako stock for June I was ordered by Mr. "cut" and for which the labour bill had been

Abrahamson, to measure the whole of billian' pald, had never existed, and until this occasion

In the office, I had the whole agency and general the Company's stock had never been properly

The Chairman-No, the cash’is all right, bualness of the Company to supervise and carry had no instructions to discriminate between good checked. It is most unsatisfactory that Mr.

Mr. Wicking continued, saying that he on in Sandakan. I was frequently absent from and bad logs knowing that Mr. Abrahamson Abrahamson should not be here to-day to give thought this meeting should be adjourned Bomeo here or in Singapore, on the Company's was well aware of the Inferior quality and that an account to you of his view of the matter, and for a week, so as to give the shareholders a buslecss under your orders. When in San the major portion was lying faraway in the jungle to carry out the expressed with of the Board to chance to consider the advisability of winding dakan. I had the estates in the Kinbatangan fully expected that he would make duc allowanCO be present at this meeting to answer questions, up the concern. Mr. Abrahamson went away to to visit periodically. I never was in robust for it in his valuation, and it was not till some months afterwards I found he had put the whole Mr. Abrahamson was specially directed verbally England on a plea of ill health, but in the health. I had to leave the jungle. work to and by letter to remain here for this purpose, but speaker's opinion that was merely an excuse Mr. Allard or Mr. Zecharialror to the measurers, valuation at 30 cents pcf. at which I was on the plea of ill health, supported by medical the fact was that he was afraid to stay, as he and to accept their returns as true. For all the extremely astonished, and had my opinion been certificates, he declined, and left the Colony by ought to have done, for this meeting. He intimber entered in my books I have vouchers asked at the time I should certainly have pointed the mall of 17th Jane for England. Weconsidered away simply to avoid what he thought would be signed by Mr. Allard or Mr. Zachariah ́or Mr.

but that it was greatly overrated. I have never this matter of Borneo stocks so grave that wo an Investigation resulting in anexposé of his con- Chlu Qal, the measurer at Suanlamba, all

been asked to give any valuation for any stocks looked on Mr. Abrahamson's presence here to-day duct. He hoped no salary would be paid to him, believed to be most trustworthy men. It Is of any sort. "'. as an absolute necessity, be as manager in Borneo

The Chairman said that the salary would, clear now that returns have been made of timber being the only person who could afford certainly not be paid without a contest. When as cut that never was cut. It could not have been us an adequate explanation, and we have the directors heard of this grave difference in stolen, and Mr. Allard and myself have been placed on record our unqualified disapproval of the wood stock, thay at once wrote to him and deceived by the Chinese gangers and measurera. the roarse he has seen fit to take in leaving the suspended him, requesting. Mr. Danby to take It was absolutely Impossible for me to have Colony for Europe without the sanction of the charge. Although Mr. Abrahamson was not checked or detected It Mr. Allard, I have no Board. It will be observed from the accounts definitely dismissed, most probably he would doubt, will explain if called on, how he was that the item of goodwill has been written off consider himself dismissed.

deceived. It was I assure you a great surprise altogether as recommended by the Committes,

to me, gentlemen, as to you, to find out the and against this amount fully paid up shares

existence of this enormous deficiency, and I can to the value of $55,166.54 have been either given

only explain it as the result of a deliberate fraud on up or promised, although they do not appear in

the Company by the Chinese and natives, whom the present accounts. We are endeavouring to

It was obliged to trust to do its work. The vist- obtain the surrender of the others and they will

mena of the forests, the dense undergrowth, the be accounted for in the 1891 accounts. With

entire absence of roads and means of communica. regard to the other items in the depro- The Chairman said that the Board had not Hons rendered it most difficult to check them. I ciation account we have written down the been content with the statement that $15,000 could not possibly and could not be expected to 'various assets to a figure which we think they must be written off, and wished to have an do it. It is as much a matter of regret to me as were fairly worth on 31 December. With Inspection and valuation of each log by Mr. to you, I am as largely interested in the Com- regard to the general working of the Com-Allard and himself, upon which Mr. Abraham-pany if not more largely than any other individual pany I regret to say that it has not been at all son's report was received.

shareholder, and these trauds' hava not been nathifactory, and money has been lost on nearly

committed with my knowledge or connivance, every lem. Of course these losses on wood &ć

If there be any other point on which you need we in a measure 'expected when we last met in

explanation. I am ready to tell you'all that I Noyember, and now that the values have so

know. largeir been written down it is, we hope,

EXTRACT OF LETTER FROM E.B. ABRAHAMSON possible to work the timber at a profit, But the worklog from June to December of "lunches, Sandakan &éć.

very disappointing seeing that the Bermeo people assured us they were all doing well. From In the couse of further remarks the Chairman what the present Manager writes us it would said the Sondakan was now on her regular rus, teem that the saw mill is thoroughly well built but on arrival in Singapore would be put up for and that if kept at full work on ordinary wood it sale. The Normanhurst was still on charter, should earn about 8 per cent. The expenses of but just now was in dock. The Zarafata running the business for the ball year under was engaged taking wood to Hongay. review? have been rather less thần before, Mr. Fenwick proposed to wind up the company but the full effect of various economies can. at once. not show until the 1891 accounts are closed. Mr. Wicking bad much pleasure in seconding. It is difficult to judge from these accounts how The Chairman pointed out that unfortunately, the Company is working now, for it was not this meeting was not, empowered to pass until this year that we have been abis to get the special resolution for winding up the company various accounts properly adjusted. Mi. Powell but if the shareholders expressed a feeling in bas got the accounts well in asud, and we shall favour of it the directors would call's meeting I trust be able to present you with much clearer for that purpose. This meeting was only to accounts each succeeding half year; but our consider the report and accounts. object in having a half yearly account made up Mr. Wicking naked how the accounts could be has been to get at the position as nearly and passed in this state, when the manager was as soon as we could. In accordance with the running away to avoid an investigation. He Committee's recommendation a call of 3 per had not been forced away by lilness, for he was share, has been made which has yielded say over a month-running about up and down the $21,000, $6,300 being still due. The 3,360 - steps of his lawyer's office, and did not seem at shares on which the call has not been paid, the all like a sick man. He should only have been Board proposes to cancel at once. That this allowed, to go away under a very heavy call, has not been fully met la very regrettable guarantee. as we are at the present time without funds and it will be necessary for some plan to be arrived at by which we can get some money in hand, Making the $ic call recommended in the Com- mittee's report would seem to afford a means of providing this, but in the present financial: position of the Colony as well as that of the Company, and in face of the tendency of the remarks made on this subject at the last annual meeting, the Board has thought it better net to make this further call until, maareholders have had a further opportunity of expressing them *Your. Directors Lowever cannot see their views)

are

waf to carrying on the Company without some

|

ཧཱུྃ་

Mr. Wicking: But should he not be prose cuted for giving false reposta?

his explanation

The Chairman:-Ha gives what might be sufficient reasons.

Mr. Wicking :-But why were they not given before, instead of saying there was $30,000 worth of wood in stocks?

Mr. Fenwick thought the Sandakan manager (Mr. Abrahamson) should be held responsible for the difference in the valuation of stock,

Mr. Wicking thought Mr. Abrahamson should be prosecuted criminally, using the balance of money in the company's possession for that purpose.

Mr. Fenwick:-I think we have been awind led, in plain English.

|

|

„TO TER DIRECTORS OF THE CHINA BORNEO CO, LD

EXTRACT OF LETTER FROM THE MANAGING DIRECTOR.

!

$599,861.83

Your moit obedient servant,

maggid trong ph (SRd.) F. H. MAY,

kathu) p Acting Coloniat Secretary.

Telegram.

Chinese Consul proposal withdrawn, BOD MY Goodwill:...........$69,406.83 pode despatch of 7th July, therefore not necessary to Less Depreciation: 646:83 and the Play correspondence on the table of the Legala-

dye Councilstuna Asema Town and Country Lands.#12,750.00 malam

Less Depreciation Takaitas,oooaa moja bet

velkara seg mamam 111,760.00 Land Concessions .........esia Timber Concessions: Less Depreciation

Steamship Sandakanni

Less Depreciation...

Sawmills, Sandakan Sawmits, Hongkong ...

Less Depreciationéána

Barque Tarapaca.....

Less Depreciation.es:

Les Depreciation

Stock of Timber in Hong-

15.393.29

15.757.87

(23,291,15

$75,185.24

CORRESPONDENCE;

(We do not upcoully endorse the opfofons expended by

Cartuspondants in this calumnă, ....

A

THE GOVERNMENT AND THE

WHATHLETIC CLUB.

To Tik Ratrón ór wits “HowntowÓ INTERGRAFIE," SI, I enclose; for the favour of publication,' copy of a letter received by me to-day from the #1 Government, in reply to my communication of

31st May last. 12 MSDALE

*5,000.00

At may

1,520.85.2

$13.687.71

13.103.02

more Yours truly,

Blinded VADU W. M, YOUNG,

Ied Moda Dandamiskit - esmith

Hongkong, 16th July, 1891,

admin Colonial Secretary's Office, 2140.80 MADELIN CHRIlokolor 1 a 15th July, 1891; 2

19:257.35 ||| BIL With reference to your letter of the zist *****::: 9,724-43 | May, I am directed by "His = Ezzellency-the old mig Odicer Administering the Government to inform Hugh crow that the adbjecs brought forward by you has 13,914-02 | | received the very careful, consideration, of tho 3m11 1978 Governusent. It is hoped that the schems for brumit the general extension and sanitary Improvement or 309,994 of the public recreation, ground in the Happy 2007 ein Valley to which you refer may yet receive. the approval of the Secretary of State, with a view to which" His Excellency fir: farmlahing more vek aldeicómplete information as to the details" and objects of the scheme than were previously, sub-

mited

By this mall I beg to hand you Timber Stock Lists up to the 31st December last together with their valuations. The latter have been put at the lowest possible computation ́and you will sea from the stock fists that all timber about which there is any doubt as to quality has been rigorously excluded. The great discrepancy be tween the present valuation and those submitted previously in this partly accounted for, but from the papers I am sending you will perceive that, to a great extent, the timber actually is not there. This is especially the case with the tim-Tug Normankurit. ber lying in and round the Sughlanba River. Less Depreciation The total number of logs including inferior stuff is 290, in the last stock list the number mes Boats, Lighters & Launc sired was ord. When stock was taken last Less Depreciation, autumn, the Europeans at Copnan Informed me that they would be unable to do all the stock House Property taking in the time allowed, and a Chinaman. Plant Account impos Ching Quee was recommended as a suitable Less Depreciation man and was employed on, this portion of the work. So far as I can make out, this Furniture man must have gone into the Jungle and spent a comple of days writing out fictitious measurements, He took 31 days to and and measure égo logu Stock of Timber in Bern against 63 days spent by Mr. Allard in finding | Less Depreciation, In reply to your queries 1 beg to inform you 293 logs. Another reason for the discrepancy that I received each month from the European is that formerly all stocks were compiled from Stock of Timberin Tients member of the timber staff returna in writing returns sent to the office by the head of the ··· Less Depreciation showing the quantity of the timber cut during Timber Staff, and I find that some of these are the month by the gangs. The timber staff were quite unreliable. I would ask you to refer to supposed to be constantly on the move from statement of stocks sent to our Agents last mall station to station and to inspect from day to day. These give an increase to the Billian Stock since and verify the work done, I believed that they June Ist of 23,200 cubic feet whereas that did this and trustad, their return... At the end of Stock only amounts to 32,000 cubic feet and Stock of Sawn Timber, Storpil each six months a stock list was made up shows only 2000 cable fect have been cut since last Coal................. ing timber on hand, quanilty said or skipped June so that there are 21,000 cable feet Sundry Debtorsiones during this period. This gave the stock on hand unaccounted for. In various ways, such as ons | Cashin band wapenristma at the end of each six months. These returns shipment per Tarapaca not included, loss of Bills Receivable........................ | you had.. It was only, recently. I had any occa. lege ice. this can be brought down to 14,000 | Shares and Investments ...

sion to question the accuracy of stock list, that | cubic feet and this balance of the discrepancy I Uncompleted voyage

since my last visit to Hongkong. On my return can only account for in the following manner: a. Tarapaca am

The timber when falled is measured by coolles |Amount depreciated as per in the jungle and the measurements are sent Balance of Proát and Loss Accor in here as returas. When the timber, is sent away from Capuan it is measured again under y European supervision, and both measurements appear in the same statement, the first an the out turn the second as the actual shipments The only thing to be inferred is that the coolles have given wrong measurements owing to their having "to do" a certain amount of work per diem and to their wishing to make their In answer to your request I beg to tender you" returns, ne favourable as possible, Roughly my explanation of the deficiency in the Co, stock speaking the difference between the Billan in Barnes. First and foremost comes the un-returns is 30-35 per cent, and between other justifiable way in which timber has been woods 12-13 per cent. As regards, the stock of Indiscriminately entered as stock, as for example, soft wood this has been nearly all written off a Chinese or other contractor has been engaged probably good legs will be found, and will of: to fell timber on the Co. isada; as soon as his course go to credit of Timber etc. With refers contract was finished or he had cut sufficient for a ence to the stock of good billan lying in the measurement it was taken and sent in to the office Jungle I think this should be brought to Copsan against his account, an receipt of which the timber so that in fature all stock, or nearly all, would to figuren, but probably there would be about so messired was immediately entered as stock. be at Copuan, Mr. Zachariah has offered to.

The Chairman did not think the man had any money to pay as security.

Mr. Fenwick thought that the longer the company went on, the worse they would be, and the greater their abilities. Sparta Apple The Chairman said the Board was trying to get offers for its property, If this matter did not interfere too much with that. If this meeting would pass a resolution in favour of winding up that would meet the case. There would be some assets-he did not, like to plodge himself

I get to work to have the imber checked and valued. The correct valuation of it by rejection of decayed and inferior timber was my principal object. To my astonishment I discovered the very serious deficiency in quantity. May I beg that these letters be read to the shareholders at the meeting.

EXTRACT OF LETTER FROM HAYWARD

ALLARD TO THE CHAIRMAN 'OF THE !

(****Y BOARD OF DIRECTORS, AND

Leri Depreciation

Dress

mak that the consideration of this

question has been delayed owing to the necessity of considering, with it, other important proposals invalving expenditure and also of obtaining miore In detall the proportion of the estimated cost of This cachome due to sanitary, and recreation perposal, respectively, in regard to which the Secretary of State appears to have been under 0.00 sama misapprehension. via 61.60 ||| [Find it been, supposed that the investigation o

into this matter would have involved so much 9577 delay as has occurred, your letter would kera 13.07 Booknowledged earlier, with an intimation * 63,465,98: that the subject was under consideration.

I have the honour to he, Bif 199,851.824 () m

our most abedient servant, „fronyms. Forely Yours Hermit 1281 VANGELIW. MEIGH GOODMAN,

Alloj, ANTAGO Acting Colonial Secretary,

STATEMENT OF DEPRECIATIO Te Goodwill win........................ïörð

Town and Country Lands „sition Timber Concessions *.. Steamship Sandakan.. Sawmills, Hongkong

# Tag: Normanhursta

BarquaiTarapacaṣi Basts, Lighter and Pant

Furniture... Stock of Timber

of Stock of Timber In2?

bil do Hongkong

w

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815 or $17 per share some thought Backing, and I am given to inderstand at a valuation of pull out all such timbers, at 85 per ton of Crochet

Mr. Wielding proposed, Mr. Perry secondedocents per cuble foot whereas ao of this had yet to so cuble feet, which will make the average By amount carried to new.

cost an cents. Whilst not wishing in any way for long meeting be adjourned until next work with a to Copuan of other depot for shipment,

available cash in band, and they wish toʻimake:- and it was unanimously: resolved that the fes expended on it in drawing from land Budeme na to minimize my responsibility fa the matter and valon pol, začiniti?

it plain; that such must be furnished them therefore remales for shareholders to determine what means had best be taken for this purposes I would say that no meney is now being expended. in animarktun supermanent at unproductive natore and that what we now require is only a comparatively small sun to meet current requires

to look at it as impartially as you can, I do not To lesson

how to considering the advisability of winding felled and squared lying in the jungle ought which I am quite ready to bear. I would request od 13 up the company moderne med en smiley never to have been valued at more than to cente you and the Board when considering the matter, Dre to Brat The Chairman pointed out that a fortnight's a cubic foot. Again all timber, that has once

zidlice would be, required in order - i

v.- to pres a' been measured has bean -allowed to remain in resolution for windleg up, lydus forms the stock at full valge ne matter how much it had meeting was then adjourned until Thursday next. | deteriorated; ("On" March and last receiving

want to throw any blame on, Mr. Alland beyond ErFUNERA carelessness six grant of matted in workings, any E

It wascarelessnesson kis path to infila) as correct free tvarme Bhanguát and

BAWA THE SHARE BILLVORNIH OUT

TO THE RISTOR

SIR "I shall toget If farther time is not given for the more matura consideration of the Share bilowkizhi la pet down for consideration to-day. Higt? Excellency their Governor "the

écretary Caplain »Superintendent of Bentor Police Humağistrate, Superinte of the n

andɔ Harbour)/Master: (offices conducted by no doubt

most: careful, thrashing out)

knowledge, that, before Fit is necessaryĝto,

ARGU