1906-11-10 — Page 12

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THE SHANGHAI DOCK ÅND ENGINEERING CO., LTD.

As showing the keepness of the controversy in Shanghai arising out of the proposal, which bas flaco been adopted, to sell a part of the Dock Co's property to be converted into & Whail and Wharehousing Co., the following letten, in continuation of the series which has been reproduced in our columes, will be read by local shareholders with amusing interest To the Editor of the

1906. THE HONGKONG TELEGRAPH SATURDAY, NOVEMBER 10

bulletin about the health (?) of the "sick mas" of Shangbai imparte to the not-to-be-envi-d shareholders,

But enough of this scheme. It has aci come down like a stick for it was too heavy and clumsy to go up like a rocket. Attraction of gravity was 100 much for it, and it has come down to ils natumi element, the earth, shattered. and deprived of life. l'eace be to its fragment. But, since a meeting has been convened, though its duties will be more of a burial party than that of a christening, may be permmed to suggest to the Dock shareholders, that their interests could be served best, not by surren

dering their property for paper-whether of value or not-not by taking cash for it and reducing their capital by that much, but by giving their directors a free band in the matter of the sale, and instructing them to apply the proceeds to the improvement of their property by the introduction of modern machinery equal to the demands that are likely to be made ou no establishment of the kiod. In this way, and in this way only, could they look forward to see their property become as valuable as it ought to be, and free from the bligh it has been suffering from through the machinations of jobbers and feather-your-own-nest sort of persons..

"NORTH-CHIWA DAILY, NEWS.” 'SIR-Logic would seem to be a commodity conspicuous by its absence among most women as well as among some trea, and your corre spondent "Fairplay, I fear, cannot be said to be specially endowed with this essential equip ment for rational argument, My anticio signed "Warning" was certainly headed The Shang hal Dock and Engineering Co., Ld., but be yond the mention of the name of the Company there was scarcely a word said in my article about the concern. My criticism was exclusive: ly confined to an analysis of the Guancing, Boating and prospects of the embryo What! and Godown Co., and I treated that concern as quite distinct from the Dock Company, for cannot imagine that the idea could ever have occurred to the promoters of the new scheme to incorporate their scheme with the present Dock Company. The capital of the latter Com pany is already T. 5,520,000, and if an amalga Dock Co., have taken the liberty of repeation mation were intended between the two Comit here, thinking that the unfortunate Dock panies the total capital would amount to Tls. shareholder could not be too often told what 7,140,000 provided Tis. 25 per share were re would best promote his welfare. turned to the present shareholders in the Dock Company. I need make no further comment on the abusrdity of such an idea: its accomplish ment would merely be a repetition al whil took place six years ago when the three Dock Companies amalgamated and raised their To the Edner of the capital by several million neis with results whicha re altogether too painftil to dwell upon.

We do not have a

Having dismissed the innuenda of "Fall play" that I harbour feelings of prejudice against the Dock Company, (the ments or demerits of which are not discussed in my previous article) I now come to the real point under discussion, namely, the financing, the munoer of floating and the prospects of the new scheme. "Fairplay" will no doubt nale with satisfaction that as a shareholder in the Dock Company I shall be glad to receive a return of Tis. 25 on each share held by me, and my cheats have authorized pe to say on their behalf that they are will ing to do the same. great number of shares between us, but from information gathered I am inclined to believe that the majority of the shareholders in de Dock Company are of the same way of thinks ing. Well and good. If the wind blows th way the promoters of the new scheme wit have to find the money, which may be a very simple problear for them to solve as far as I know. That having been done 1 take that the Dock Company has no more to do with the proposed Wharf and Godown Company, and that we each of us try to work out our in destiny according to our own light.

This suggestion has already appeared in your columns in a communication over the hame of "Shareholder," but as it

very per

tinent and made in the best interess of the

Thanking you in advance for your indulgence for this, and begging to enclose my card,-" Yours faithfully,

WARY BIRD,

"SHANGHAI MERCURY."

Sir, bave read with interest the cor respondence under the above heading, both in your paper and the N, C. D. Neun. As this new schemie concerns not only the shareholders of the Dock Co. but the public of Shanghai, 1 would like to make a few remar-5

he scheme is not, I think, quite to "bait. braided as Mr. "One of the Pablic" and ethers try to make nut and I don't agree with him that this scheme is to get a litle more wool from the shareholders. Une has only to glance at the list of provisional directors to see good standing names, three heads of large shipping companies (not agents) and three news of large bongs which have great business at the wharves; surely these names mean that this new concern will have good support

Regarding the flotation of the new Co. as the promoters are confident of being able to raise the money, it will be letter to wait salil the meeting and her what the promoters have to say on the subject tan to express my views. No coub, at the present, most of the"share- holders leel they prefer the money to the "piece of paper," but I would give "Wary Bird's advice to "Lank beinte you leap, but 1 mean it in another sense as evidently the pro- moters expect help from the shareholders-and as the property evidently cannot be sold-the shareholders if they are on greedy may be like the little boy, ie., get nothing!

return on the money.

Now 10 competition, "One of the Public "

the actual loss and depreciation to the old THE WHARF AND GODOWN SCHEME. shares will be allotted to the lock Company,

concern nod what one has to see is the better: iment of the Dock Company and its status on a more solid and lucrative basis. Each one for himself and the devil for the rest seems to ba the moito and aim of the piomoists of the new scheme of which fihirk the worly Directors | of the Dock Company are quite aware.

The present prospectus issued by the promo ters of the scheme does not show the probable caring of the New Company on the Capital so that the prospective shareholders might be able to know what return they may expect to gel on their invement. The absence of such information clearly shows that the promoters wish the public to build their castles in the air, Your correspondent need not contrast the mnagement run by the Directors, as against that by the agents. Shanghai public have had belate now full experience of the relative advantages and one need not hoodwink them any more. Thus far and no further must be the ruling principle.

Thanking you in anticipation, Mr. Editor, for the insertion of this letter in your valuable columns, I beg to enclose my card, I am, etc.,

V

BUSINESSMAN.

*༔

* EXTRAORDIN^RY GENERAL MEETING.

An extraordinary youeral meeting of the above company was held at 26, Broadway, Shanghai, on 1st inst, for the purpose of con sidering a proposal which had been made by 1. thirty-eight shareholders for the formation of a Wharf and Godown Company to acquire the Old Dock property and part of the propertv between the Cosmopolitan and International Decks.

Mr. John Prentice (Chairman) presided. The Secretary read the notice convening the meeting,

The Charman-Gentlemen, this meeting as you have heard has been called by thirty-eight shareholders and I believe Mr. Taylor is going to propose a resolution. Mr. Taylor!

Mr. Taylor-1 will not propose it. Mr. 11ogg will.

Mr. E. Jenner Hogg rise formally to pro- pose the following resolution, of which notice has been given.-That the directars he and they are hereby authorized to dispose of th: property known as the Old Dock, situated in Hongkew, and of part of the propery situated between the Cosmopoligs and the Interna tional Docks, as lately advertised in the public **SHANGHAI MERCURY."

press to a new company to be styled "The Sir,-Numbers have waited patiently to see

For the following consideration, name- some effort put forth to improve or investigately, that each shareholder in the hanghai Dock the causes that have maintained to place our and Engineering Company, Ld., shall receive Premier Local Industry in as present undigni- one fully paid-op share of the value of T15. 25 fied position.

in such new company for each share held by him in the Shanghai Dock and Engineering Company, "Ed.-1 am aware that an Amend. ment is to be put, and I shall therefore not speak on this resolution. It is an amendinest which has my full concurrence, and k-will be brought forward after this resolution has been

To the Editor of the

Everybody thinks there is some cause and each individual shareholder has his own ideas on the mailer Engineering and Finance un fortunately do not go hand in hand usually few will dispute the fact that these equally im2 portant factors have out existed in combination

10 the “Docks."

S. C. Farabam, Boyd and Co., Ltd, held for upwards of "five years practically-complete monopoly of all the work entering this post.

The New Engineering Company was the only

firm of any importance' opposing them.

What has been the result? Desperation, displaying always a leverish and panic stricken routiness to launch any scheme, however ili advised, so long as it offered any means to avert the inevitable downfall of this gigantic mumanaged concern. I am forced to use this strong term. Had the management "been sound, the many schemes and proposals submitted to the shareholders could never have been considered for the insting good of the company, as they all tended to raise the capital which is far too high already....

All the proposals came from the Directors to cover the original mistake wade in 1900, when the capital of the then existing companies was almost trebled Who made this foural error? Most people will say the Managing Directors, because at this period up the history of the con cern these gentlemen had the complete, con- fidence of their shareholders, Under the cicanistances what other action, could the shareholders take than support the proposals as placed before them? "Therefore, 1 claim that the blame does not rest with the "shme) holders.

The Directors know this and have been too ready, as have already said, to listen to the Pu fessional Speculator, and eager to grasp al any plan to save the situation.

their effect.

absolate necessity of reducing the capital, as I do not think it necessary to enlarge on the late events tend to show that is the intention in the whatt proposal now in view.

To

proceed to other causes that have had As soon as the Oriental Dock Company was absorbed, the S. C. Farnham, Boyd & Ce's Directors lost no time in clewing out the staff at the Young Dock" some jusdy and others simply because they were "Inconiers."

The Old/Deck Directors bring the major.

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seconded.

The resolution was scronded.

Mr. F. B. Taylor-The_promoters of the scheme to be submitted to you to-day have

been informed that the warding of the resolu- tion, as read to you, does not sufficiently safe- guard the interests of the shareholders in the Dock Company; and as it has been taken in hand for your benefit, they have had it amend Fed by a lawyer, and have deputeil me to move it, as redrafted, in the form of an amendment to the original resolution, I, therefore, beg leave to propose the following amendment :-

That resolution No. shall read: "That the Directors be, and they are hereby authorized to dispose of the property known as the old Duck subated in Hongkew and rd part of the t party souated between the Cosmopulitan and International Docks as lately advertised in the public Press to a limited company to be incorporated under the Hongkong, Ordinances with a capital of Tls, 1,780,00 in shares ni s. 25 each and having for its principal object the construction of wharves and of gadowns on the properly to be sold, and the carrying on of the business of what fingers, and that the con sideration for such sale shall be the sum of Tis 1,380,000 to be satisfied by the allotment issor to this Company or their nominees of $5,200 fully paid-up shares in the capital of such pro posed new Company.

Now i cannot hope that "Fairplay will believe me when I say that I was born with an inpare feeling of love for the general publ. and I have therefore an irresistible desire to

Re the time before the new Co. can start warm the public every time I lancy see some earning money, the Old Dock properly is thing which is going to hurt them. My judically ready for building godowns on and meet may be wrong, of course, but you are there is absolutely no reason why that portin aware of the vanity of a man of my dof the properly should not be earning money position he will persist in believing th within 3 months, The Pantung property is he is in the sight until 'arguments as im diferent, but understand this place can be pregnable as the broadside of a Dreadnougnade ready to start taking vessels within 12 are brought to bear against him. Now, Fam of the opinion that the proposed new scheme this so it is not very long to wait for t will be a financial failure for many years in come (for arguments please see my former

asks "What chance will the new concern article); that the sécurity offered to debanture have against such a powerful combinatini holders as insuficient; thai Hail to see h

as the S. and H. Wharees and the hinity, they soon made it apparent that same treat-materialize it will not pay: and that even if i and, where the promoters will get the money

Merchants' ? 'I think it has decidedly the with which to pay the interest on the defen

best chance in a tariff war, Does it not strike: turės during the first four years, and 1 there- One of the Public that the present wharves fore am bold enough to warn the public accou are very much behind time in every respec ingly. My former article is the result of that and the good old bambon still reigns supreme: conviction, and it remains for you or somen: e ele who has the new scheme at heart to refute seem to have passed over what i consider is one of the most important things in the new my arguments, and I shall offer you, or them. Scheme, ie, the wharves will have the latest a handsome apology for my presumption if scientific appliances for Wandling cargo which, you convict me. My arguments are surely not think, Mr. Editor, you will agree with me, unanswerable, for I am already convicted of spells reducing experse, and if a tariff war You say that you are convinushould wart, then, I take it, the new concern that a Wharf Company could begin to earn

will be able to cut down the prices to a figure money in under four years. So am 1; but not

which will still give them a 'fair, profit while this Wharf Company --I am, etc.,

the other wharves will be working at no profit. Where this scheme will affect the general public is in the fact that it will be run by the directors and not by agents (who only work for their own ends) and these directors being com. pose free shipping and three long ter~ who will have to work with one band for the company and the other for the public who with these gentlemen will be, the customers of the wharf.

one error.

October 25,

To the Editor of the

G. NIELSEN.

"SHANGHAI MERCURY." Sir,-Will you permit me to add a few words to the very sensible lester of the "Wary Bad which appeared under the above leading in your colimus of Saturday last?

As a silent observer of the many different phases through which the much abused Dork Company has struggled during the past few years, I was somewhat surprised to learn from the circular issued, that level-headed men of business are still available for the purpose of propounding another, and if possible a more hair-brained scheme than its various predeces. sors, whereby the unfortunate shareholders are invited to quietly allow themselves to be shorn of the little want left to them by fommer manipulators...

Thanking you, Mr. Editor, for your kindness in allowing me so much space in your valuable paper, and enclosing my card, —Yours faithful

ANOTHER OF THE PUBLIC.” Shanghai, Oct. 30th, 1906.

Ty.

*

To the Editor of the

This disguised feeling of animosity has been themain cause of bringing the strong opposition that opposes the Docks on every side to-day.

When Mr. Twentyman held the reins, his sympathies was entirely with his own men and the work was distributed to his own side of the establishment, so that the man in the street would know wlio was the power in the land!

Time brought about Mr., Twentyman's retreat and the other Managing Director at his innings. Still, he did not prove himself perfect any more than his predecessor, with the change of government, his special sphere of the last thiny-six years is having its sway,

It could he argued that any change in the Managing Directorate of a concern would bring about different methods. This we readily alavit; still, it is the common talk and well known that these evidences of the change of power have existed,

Large sums of money have been sacrificed this manner, not only in the Manager's office. but in the workshops as well The competitive feeling of the days before the amalgamating has grown into a bitter animosity amongst the forego foremen and native workmen brought about by the sway of power. ——————- .

I have endeavoured to point out some of the main causes for the prestat predicament, ie, Over-capitalization, mismanagement and want of harmony sight throughout the whole concern."

το

This

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and the opposition in it in certain quarters shows that success is anticipated. Seeing that you will have as opportunity of reversing your decision at the Confirmatory Meeting, if not entirely satisfied with the report of the Com mittee, I urge you to give it a chance and. to see what the able and experienced man to` be nominated under the next resolution can do for you (Applause).

The Chairman-Has any gentleman gol anything to say?

Mr. Bolliday rise in support of Taylor's amendment to the resolution. He and Slr Charles Dudgeon have already dealt so fully with the matter that there does not appear any. thing left for me to say by way of elucidation This I would like to sy. I have been into the matter somewhat closely with the promoterA and, as Mr. Taylor will tell you if you ask him, all the awkward questiona a misplaced ingenuity could suggest. In the end I had to admit that taken all round the scheme was sound and feasible. At any rate one thing was perfectly clear, it was no device on the part of the bull or bears to boost up or to run down the shares of the company, but a business-like and genuine attempt to turn a non-dividend earn ing asset into a dividend-earning one. ought to look at the matter in the dual capacity ol prospective shareholders in the new company and shareholders in the Dock Company, Really and truly

We

..

Our

interests ara 10 identified that it is impossible to dis tinguish between them. Now 10 the scheme itself. As far as my limited experience goes there is room for another godown com- Pay in Shanghai, and lelieve one which will take for its motto civility and efficiency tolerably sure of success (Applause). Of course in a commercial undertaking there is al ways a risk, and we shall no doubt have our lean Years as well as our fat goes. But I cannot a series of years is practically certain. I should help thinking thue a fair return of capital over like to emphasize the point that, granted a new godown company is to be started, we are the people of all others at the present moment best suited to start it We have already got our shares in the Dock Company, and we shall continue to get a returo on them, perhaps of Ths. 18 or 20 a year (laughter) so we can wait for the completion of the development of the for their shares in cash, would be unable to do. property in a way that others, who had to pay When the development is completed we shall still be getting our Tls, 18 or Tls, zo ́ on the' Dock and in addition whatever dividends the new company may enrn. In conclusion I com- mend Mr. Taylor's amendment to your favour. atle attention (Applause)

and will represent a payment of Tls. 1,380,000 for the Old Dock and for 110 mow of waite land between the Cosmopolitan and Inter- antional Docks. The remainius 16,000 shares will not be issued until the business of the now Company junified or demand more capital. The actual cash for developing the property will be provided by means of 7 percent deben tures to the amount of Tis, 5,120,000 to be issued Sir Charles Dudgeon-Mr. Chairman and as funds are required; and the placing of these gentlemen, I have much pleature in second, debentures will be the work of the Committeeing the amendment proposed by Mr. Taylor.

be nominated by you. I am authorized to | You have heard the very full manner

which, say that, once you have given the Committee & be has explained the scheme, and it is therefore theecessary authority, there will be no dili- not necessary for me to say anything further. calty in this matter. The first question we would like to say it seems to me that seeing have to ask ourselves is whether the amount to the amount of dead assets which we hold in he raised by debentures will be sufficient to this company that it is a business like proposi develope the property. Three independent tion that we ourselves should take up the rets of estimates have been drawn up, and | question of developing these dead assets, for we have selected figures rather in excess of the benefit of the shareholden in this comi the highest, so as to be on the safe side. pany. That seems to me a perfectly sound We find that Tis. 400,000 will cover the cost business proposition. I have colbing more to of building six four-storeyed godowns on the say but that I second the amendment. Old Dock property, fully equipped with elec- frie lifts, electric light, water supply hydrants, clc., as well of partially filling in the Dock, leaving a space for lighters to enter and dis charge. This expenditure on the Cosmopolitan property will be Tis. 600,000, and will provide six four-storeyed gadowns, together with wharves, rails, trucks, cranes, lifts, etc. makes a total expenditure of TIs. 1,000,000 and leaves us with Tis. 220,000 for interest and Contingencies. The next question to be con sidered is whether the enterprise will pay, and may say that we have already received assur ances of a considerable volume of business. In the O Dock we shall have storage space for 2,700,000 cubic feet of cargo. The current rate for storage appears to average over one and a af tael cents per cubic foot, I admit that this is a rough approximation. Charges are made by the picul, cask, case, bale, cubic foot, etc., but assume that they all bear some relation to the space occupied. I have here a list of charges, and judging from the rates per cubic foot, the average I have taken seems fair. Now assunting that our space is only half occupied and that the rate is only three-quarters of atael cent, the Old lock property should caro Tls. 121,500 per annum. On the other side we shali have storage space for about 3,600,000 feet, which a similar basis of calculation should earn Tiz. 167,000 per annum, or a letal- for the two properties of Ťis, 281,500. As the working expenses would be more than covered unde ordinary circumstances by the dues paid! by steamers, and by the storage in the open of coal,, timber, old iron and other cargo, this would be sufficient, after payine the interest on the debentures, to allow a dividend on the shares of over 14 per cent. This, Gentlemen, is the scheme we propose for the development of part of your unremata- tive property, and it rests with you to decide whether you will sane tion it. It will deduct no. Dock Company, as the earings of the Dock thing from the dividends you receive from the will not be lessened. Giving up the Uld Dock will be a saving, not a less of income, and the 110 mow of land on the other side brings you in nothing. On the other hand the scheme promises a handsome dividend which cronol be earned under present conditions. The cri

icisms of the scheme that have heard can be

Mr. A. L. Anderson,-There is one thing easily disposed of. There are still people in

that Mr. Taylor did not make quite clear in ha Shanghai who do not realize the pace at which the trade of the place continues to grow and

able speech, and that is how, after the ten months have elapsed during which the Dock. they argue that only the unusual conditions el

is to be partially filled up, these magnificent the past year are responsible for the large progodowns are to be built, with electric light and its lately made in godown business. They

lifts and cranes, how at the end of the fint forget the number of men, by no means foolish,

twelve months when the debenture interak who have considered it to their advantage to

falls due it is intended to pay it without any erect godowns in various parts of the Settle

money. Does he expect to be able to ment, and they forget the influence likely to be exercised by the work of the Conservancy pay the 7 per cent interest on the debenturer

after two Board and by the extension of the railway. Neither do they seem aware of the difficulties at present experienced by shipowners in finding accommodation for the discharge and storage of cargo. Judging from the past and losking, to fature expansion, it seems a safe prophecy that your property, if 'developed as suggested, will double in value within ten years: the thing you may be sure of, if we do not take this scheme in hand, others, will do so and wit make the profits we ought to secure for our An argument against the scheme is that the shareholders will raise antagon- ism in certain quarters and alienate busines from the Dock Company. This seems rather far-fetched, as the business of the Dock Com- pany depends on management which gives good work for reasonable prices and shwe a proper energy in securing patronage. More avel, by advertising the land for sale the Direr. tors have shown that they recognize the ad- visability of disposing of it, and the use we pro- se to put it to is probably what ane purchase! would do with it. Further, doubts are express. ed as to whether the debenture "money can be raised and about the payment of the interest. The answer is that inquiries have made it clear that the Committee will be able to get what is wanted that we shall shortly be able to pay the interest out of earnings and that we shall have ample funds to meet the interest before that time arrives. You must not be led away by the wild talk indulged in by imterested parties who say that nothing can be earned for at least four years. The Old Dock property should be

en who have spoken are triclical men and completely developed in twelve or at most fif teen months, and eighteen months will be suffi- business men, and they han fat spoken many cient to develop the property on the other side. words in favour of the Dock Company, but. I am told that we can begin to earn something they have spoken in favour of the proposed before everything is completed. The objection company. But I am not perfectly satisfied that if we wait longer we shall get more for the

that things are so favourable, and I do not wish to sail out on a new ship and face a new land appears to me ticularly futile. The

storm. It has been said it would be very easy result of offering the land for sale shows that

to secure the money to pay the interest. Very the present offer is favourable, and it would be foolish to wait an indefinite period in the hope well, then let the men who can secure the of getting an extra lakh or two when we can uney and interest pay the Dck Company send up the value of the property immediately for its valuable property. · I am ready to take by developing it, and earn a handsome dividend my Tis. a5 and let the money go into the Dock into the bargain. You must not forget, that Company, and let us use it for the development capital al 9 per cent doubles itself in about of its work. 1am not willing to go into a new ten years, but there is no prospect of our land, compan One is enough for me, (Load if left undeveloped, increasing in value at that laughter.) I do not know how many propari. rate. I wish strongly to impress upon you that tions have been brought forward, New pro- if you pass this resolution you will simply | positions are always being discussed, and bew authorize the proposed Committee to carry out comes this mammoth proposition. The the project if they find it feasible. Without moters are most sanguine. It is magnificent, They say that money is sure to come in, and your authority they can do nothing: for in

that a dividend of 14 per cent will be pad, stance, they cannot make arrangements for placing the debentures. We pledge ourselves Well let the money come right inlet it walk that at the Confirmatory Meeting the Com-right in, but let these gentlemen pay the Dock mittee will present a full report in which they Company for is valuable property. .t will inform you whether the estimates of ex- Mr. Taylor-Perhaps Dr. Reid would mako

an offer to rent the land at the opposite side to feed cows an.

selves.

months' working? 1 should be glad to beat how it is to be done. I do not for one moment suppose that the principal would be used to pay the interest.

Mr. White Cooper-The answer to that seems to be a simple that I am really somewhat sor prised at its having been put at this meeting. This company will not be the first company that will have taken some little time to' com. plete its works. "he usual practice at home In cases of this kind is to borrow more money than is required. The surplus of the borrowed money is then applied in "payment of interest until the earnings of the company are sufficient for it to pay the interest for them. Of course if you were to pay interest oa borrowed money, out of your share capital you could not pay say 'dividends upon your capital until you had repaid the interest on the borrowed monty, But if you have borrowed sufficient money ta pay the interest there is no necessity to pay it from the earnings straight off That is the answer to the question, and it is done at home year after year in the case ofrailway companies and other concerns which are not in a position to pay interest until certain works have been completed.

Mr. A. L. Anderson-Then, i understand that part of the principal of the debentures is to be devoted to the payment of interest.

The Chairman-Exactly.

Dr. G. Reid-Having invested a little money in Messrs. Farnham, Dr yet & Co, I have learnt to be a little hesitant abritat investing money in any other company, (Loughter), The gentle-

I may mention here that the second résolu- tinn regarding the reduction of capital will not be moved, as we are advised that it is noneces- sy and premature at this stage. It concerns and which would not be convenient to dea a matter which may be left to the Directors, with until the arrangements with the new Com pany are satisfactorily completed. Before says, ing anything regarding the amended resolutions, 1 wish 10 correct certain misconceptions, I might almost call them wilful mis-statements, which have been current lately! It has been een said that the scheme now to be proposed has been invented by certain speculators for the purpose of influencing the market: that it is not intended to materialize that if it does meat was to be administered to Boyd and Co's pays you can expect nocturn for least four staff. It is well known what happened in less years Every one of these statements is un- than two years.

true. The scheme owes its inception to Mr. | A. M. Marshall, and has been elaborated by him in consultation with sume of the keenesi business men in the place. Since his election to the Board, Mr. Marshalf has been very active in our interests, and as his own busi. ness has made him aware of the pressing need for more facilities for the discharge and storage of cargo, he has conceived the idea of benefitting the shareholders of this Company by showing them how they can make a profit by supplying that need. if you pass the Amended resolution the scheme will rapidly take concrete form, and I shall shortly lay be fore you figures showing that there need be no fear of failure. Above all things I wish to make it clear that this is an honest scheme.last experience may have made you a little shy of definite offers" and the like, but I beg to as- sure you that this scheme has been taken in hand with the' object of benefiting the share- holders of the Dock Company and that no one else will make anything out of it. There is another point I wish to touch on. The letter signed by thirty-eight shareholders was a pre fiminary proposal intended for the information of the Directors, specifying the business to be stransacted at this meeting, as required by paragraph 63 of the Articles of Association. It was not intended to be circulated as an offer in the shareholders, nor to be considered as the defisite form of a resolution to be submitted at this meeting. Since the letter was sent in, the promoters of the scheme bave, been hard at work considering ways and menns The first idea of offering alternatively cash or scrip has had to be abandoned, in order that the debrature money may be more easily raised. But you will understand that the strip offered is of higher face value than any cash offer could have been ander present circums tances. Now, gentlemen, you are aware that we have certain valuable property that practically gives us no return. The passive policy of letting it alone with the idea that it would increase in value every year may have had something to be said, for it in the past, but we consider that the time has come to do something of a more active nature. So much potential wealth musi not be wasted, and it would be altogether on- reasonable if our desire to develop our property in the most profit ble way were to give rise to antagonism or to the impression that we wish to enter into damaging competition with similar existing institutions. There are three ways in which this property might be dealt with. Vader happier circumstances it might be used in the extension of our present busi-penditure are within the mark, whether the ness; but conditions I need not enlarge upon profits expected are likely to be realized, and "SHANGHAI MERCURY."

whether the debenture money can be raised do not encourage this plan besides, we Sin,-"1's a long lane that has no turning. bring them much ahead of the New Company ani! it really seems as though the holders of

without any difficulty. If you are not satisfied We bave other land available for that. "SHANGHAI MARCURY,"

might sell it outright for cash if we could with the report, or if in the meantime a better Even though the Provisional

Mr. Nielsen-Unfortunately I was unabijo, STR-It was, I think, ok "Commodore."

secure a suitable offer.. There are those who offer has been received, you need not confirm Directors of the New Company are men of "Dock" shares have at last arrived at the turn-

your decision of to-day and you will have lost follow the discussion. The various spoalts Vanderbilt who, in his usually shrewd way it and leading in Shanghai, what guaranteeing point in their misfortunes. A pleasant are anxious to obtain the property at their is there that they will continge as frectors in little surprise reached them yesterday in the

own figure, and who think that by waiting long nothing. On the other hand, if you pass the must have given some details of the profit ex

resolution, you will obviously be in a much pected of this concern. I do not know wither. ence, very opropos, said :-" You may fool me of the public all the time; you may fooi all the the new concerns and lend their support in shape of Circular No. 2 informing them that. the magnanimous promoters of the now fameus

enough they will succeed.

show they are mistaken. They would stronger position for dealing with any offer that they have given us any hint of what wo public some of the time; but you cannot fool falute)

may come along. There is some vagus talk.earn. I should like to ask how they 9yars We have noticed how the business of the scheme to relieve the Company of a purtion of only purchase to make a profit out of the deal. all the public all the time, which is why your prophecy of bat a week ago has already been Shanghai Docks is falling off. So far Messrs. their surplus property, hung conceived the and it would seem the wisest plan to dispose of expected offers, and you will make it clear rived at their figures, and if they cousuld any that the must be better than Tls. 1,380,000. technical people. We all know of case that fulfilled, and wizz you stigmatised the oa Jardine, Matheson & Co., the agents, of the happy thought that so much hard cash would of it to ourselves and make the profit ourselves.

In other words you star competition which is Mr. Marshall and another geng

there "speculator's bubble bas burst, and the e-1, C. 5. N. Co., and Messrs. Melchers & Co. probably prove too great a shock to the already This is what is intended by the scheme sub.

bails quisitioners have withdrawn their cash offer, have heen the chief supporters and patronizers shattered nerves of the long suffering share mitted to you to-day. It is proposed to develop healthy, and under any circumstances the big steamship companies, and

holders, have thoughtfully withdrawn their this valuable property in such a way that the report of the Committee will be an excellent is nothing more desirable as far sarfage, 1 and propose to pay for the valuable property, of the above company and their representatives threat to pay them in Sycee, and will now allow shareholders of the Dock Company will get advertisement as it will show what can be doneness is concered but to get more to the same they are desirous of acquiring-property, Mr. re on the board of Directors, and when they Editor, which in the opinion of the propounders find that the object of the New Company, them to take the amount in shares of the pew the full benefit without being called upon to with your property. Gentlemen, we are pass sympathize with them. If we work

thing: Wharf and Godown Company! of the schema is worth considerably more which is a part and parcel of the old concern,

put their hands into their pockets. And that is through hard times. Our shares show a position we should want to get "Anything for a change as the herring is the way it is proposed to carry out the idea serious depreciation and our dividends have What I want to know than what they are offering for it, can you as to work against their interests, does it at all guess what? paper in the new concernt Paper1 stand to reason that they will continue their said, when he got out of the frying pan joto A new Wharf and Godown Compboy, entirely fallen. It is time we did something to help our earnings of the company

separate from the Dock Company, will be selves by pulling together. This is an losest consulted some people whom i sidor author I am not joking, Mr. Editor, though most of support to the Dock Company as heretofore the fired-Your, etc,

The gain, if any, to the proposed New Com-

AMUSED, floated with a capital of Tis. 1,770,000 in 71,200 and practicable scheme which men well ableities on the point, and if I by this question the Dock shareholders would wish I was. I am

abures of Tiv. 25 each, $5,200 fully paid-up' to judge are convinced will be very profitable, answered I shall be glad sq/a you what my - giving you cold, sober facts which the latest", pany will be more than counterbalanced by

Shanghái, 31st October, (gali.

"SHANGHAI MERCURY" Six-For some time past Shanghai dailies are full of acrimonious correspondence under the above heading and so far arguments oorged against the adoption of the new scheme seein to be the potent to be refuted.

ID

Who are running the successful opposition in Shanghai, hit men whom the dock share holders have paid to train and could ill afford to lose. Why is this? Mismanagement, nothing else,

In conclusion, it will be advisable to point out that the proposed wh if company is going to mb the dock company of the only propeny they have to enable them to compete with Japan and Europe for building river and coast. iny vessels.

Of course, it goes without saying, that pre- sunt holders of " Dock" shares will not refuse to accept Tls. 15 per share in hard cash for property, the disposal of which will not mate- Tially affect the earning power of their company,,

But the letter of your correspondent under But I think tha contemplating investors in the the heading of" Another of the Public" in your new scheme would study their own interests yesterday's issue induces me to say a few by taking "Wary Bird's" advice. to "look words, how much advocates argue upon assum- before they leap. The main points for coned presumptions. Assuming for argument's sideration arc-assuming the very improbable sake that the whole scheme of the promuters postion that the scheme goes through, and of the New Wharf Company is adopted which that in the course of, say, three years, the new is more than doubtial and that it will be wharves and godowns are ready for occupation working order within twelve months, and even Will the existing Wharf and Godown Com granting that the company will be in a position panies allow the new concern to cut into their

work to advantage against the oldestablished business unopposed? Is it not more likely

concerns, one has to balance the probable gain that a tariff will resnk? And in such event,

against the greater loss likely to be suffered by what chance will the newcomer have against the holders of shares in the 5. D. & Ę. Co. such a powerful combination as the Shanghai

Your correspondent seems to compute the & Hongkew Wharf Co. and the China Mer visionary large profits of the New Wharf Com chants?

pany on the presumption that Sh. & H. Wharf Co. and kindred old concerns are very much behind times in every respect and will watch the working of the New Wharf Company with prefect stolidity, overlooking the fact that the To the Editor of the ̧', well established position and fina cial facilities of these concerns will, if once they set to work,

Thanking you, Mr. Editor, for the courteous hospitality of your paper, and enclosing my card,Yours faithfully,

ONE OF THE PUBLIC. · Shanghai, 10th October 1906,

To the Editor of the

in no time.

Hangyang Iron and Steel Works will soon supply all ship quality steel required in this port as cheaply as it can be imported.

Why kill the docks by taking away their best astet? My candid opinion is to have no more schemes that do not tend to mend the three main causes; rectify them and the docks will soon work out their own destiny-1 am, etc.,

720

INTERESTED ONLOOKER,

FAIR EXCHANGE, NO ROBBERY,

Shanghai, et October, 1996.

In this I hope you

Mr. Read-1 am prepared to take over Dy Reid's interest at 10-day's quotation straight el

Er. Reid accepted the offer.

од

-1

thority the sed, I have