1924-02-07 — Page 1

Dear

sobe with su

must call and see Lazarus and have them corrected.

LAZARUS

„12, QUEEN'N ROMO CENTRAL,

The mly European Operasers in the Cubens

Chc

Hongkong Celegraph.

FOUSRED

Ma 12.90

四拜禮: 號七 弍英港香

CEMENT COMPANY'S CAPITAL.

Increase Opposed by Directors.

THURSDAY FEBRUARY

1924,

BEATINGLE: COPY IN OTK

1933 they

FIRE

CORDS and STEAL

ED TUBES in even greater numb than at presek,

THE DRAGON MOTOR CAR CO., LTD,

and that

can, brought down sufficiantly to purpose, without stopping deld Board, mentioned in letters from 12.

paid of the whole of the A reduction in price snds, and this is no doubt not shareholders dated January 8th $2,50 'and' this ybar hesociated Portland Cement Car qualifying Green Island Cement contemplated. It comes to this, and 10th. I am unable to dis-did not know what they panies in London to meat competition on the beals Mr. Chairman, that sooner or sociate this resolution from the would pay, but very likely Mr. Home told us that we ware of quality alone. Up-to-date later the cash must be formd, and first two, and I regard it as a would not be more than last year. at the beginning of the cement machinery should also increase conditions may be adverse when vote of non-confidence in your Taking the average for the lastra. I think that here in Hong our output very considerably the situation is forced on you. present Directors following on ten years, they had an average ong we have evidence of that without an increase in expon For these reasons, Mr. Chairman, their decision in connection with dividend of $1,13 and the re-beginning, diture in the same ratio, and in 1 think we ought to proceed im- the verbal request made to our muneration had not bean to much “MADE IN HONGKONG." this connection it is illumina-mediately with the reposed in Chairman to increase the capital. an extent as to justify an increase ting to know that a factory increase of capital, and I have It is difficult to account for it of capital. He did not think

We have in the public Japan has an annual output of much pleasure accordingly in otherwise, as the Directors have they reqiaired the extra capital and the private works, in the re 4,000,000 barrels, and another in proposing the resolutions which numbered fiva för many "gears, aited for.—(Applause.)

glamshops contamplated North China of over 1,500,000 the Secretary has road', Perhaps I am mistaken in this "Mr. O." A. da Rosa said that, Government at Kowloon City. [barrels. I have never been mid (Applause).

view, and if so I can only with all respect to the Inst 90 and Kennedy Town in the re- what our output is. but let Mr. Braga-I have pleasure say it is unfortunate that speakers, they had left him un-climations contemplated at Lai OF THE DIRECTORS RESIGN. guess at a figure of something in seconding that.

Shareholders' Demands Carried.

FOUR

altered accordingly.

After speeches had been made

under 900,000. We are meeting:

|

meeting was

competition in the Phillipines, the Straits, Siam. Indo-China, Japan

for and against the proposals, the

sent position to B03

meeting voted in favour of them.

whereupon four of the Directors

gave one month's notice of their resignations.

THE CHAIRMAN EXPLAINS.

THE POSITION ANALYSED.

of

"THE FINANCIAL ASPECT.

MR. BERNARD'S OBJECTIONS.

As

the present occasion should convinced. There was one ox-Chi Kok and now in prospective have been selected to bring planation due to Mr. Bernard, works at Gin Drinkers: Bay, in forward the resolution, and and that was with regard to the the programme of works for the without even having submitted it second resolution increasing the Shing Mun River Yellay, water

what our

A QUESTION.

had

One of the most largely attend- | decision, that this ed Company meetings held in requisitioned for.

and North China, and there are Mr. D. G. M. Bernard said:-or made the suggestion to the number on the Board. Of course, scheme, and in the big dock Hongkong for years past, and at I think we are all agreed that rumours of other factories spring-Gentlemen.-The circumstances Directors beforehand. When they entirely dissociated them at Kowloon 1,400 feet long-a which there was the startling the present factory at Hok-Uning up in North China and, in connected with the calling of this came to this meeting, I expected selve from the view: that this | programine of works which will development of four out of the has get be moved; we have no Indo-China, but the strangest meeting are somewhat unusual, to bear some substantial reasons was a vote of censure. Apart employ all the cement our present five Directors resigning. took choice in the matter because of thing of all is the competition and, with your permission, I will why these resolutions were being from that he had nothing to add. factories can produce. (Hear, hear). 1" would like to see the place this morning at the offices the development schema of the locally in foreign coment, which relate them briefly so far as my put forward, but I regret to say of Messrs. Shewan, Tomes and Government, and we are really we have fortunately not up to knowledge of the matter is con- that I have heard none. The SHAREHOLDERS DEMAND day when the legend Made in

LARGER VOICE. Company. The meeting was an extremely fortunate that the now felt because of the demand cerned.

Rongkong" stamped – on every A special meeting of whole scheme of Gin Drinkers" extraordinary general meeting of growth in Kowloon in recent exceeding the supply.

Directors was called at short Bay, as I have said, is in the air Mr. J. P. Braga I have been barrel and on every bag of the Green Island Cement Com-years has so increased the value Our profits. gratifying as they notice and held on January 10th at the moment, and until

asked by a number of share cement shall go as a phrase for quality and for cheapness. To- pany, which had been called in of the land on which the factory have been. might have been at which we were informed by definite proposal is put forward it holders, personal friends of mine day we have competitive brands pursuance of a requisition made now stands that we can afford. better. were they not curtailed the Chairman that he had been is impossible to consider or to to come here to address the from Norway, Sweden and closer by-30 of the shareholders. The if need be, to scrap all our for want of ability to produce approached a day or two before discuss

financial Directors in their interests and requisitioners asked that the au- other fixed assets at Hok-Unmore, but in this respect there by a shareholder or shareholders position is going to be.

the interests of a number of other places like Haiphong and Shang- Well, gentlemen, with these shareholders absent from the these competitive brands in the hai. Why is it that we have thorised capital of the Company Apart, therefore, from. Govern- should be no ground for com-with a request that the capital of be increased from $3,000,000 to ment pressure, and viewing the plaint in the future if we adopt the Company be increased; and facis before you. I hope you will Colony in Macao. In the first

Colony It is simply because progressive policy. and be $6,000,000 by the issue 5,400,000 proposition entirely from our own

meeting realise that there is no object in place I think, on behalf of these our factory at Bok Uncannot pro the said that additional

($1

consider increasing the capital at the shareholders, I should dispel from duce more than the 900,000 barrels shares

called to to be angle. it will be folly economi- proceed with the erection of was

proposal paid on each share on being cally to resist the change further. the new factory energetically, the

there present juncture and the auch & your minds the idea that in any which Mr. da Raza mentioned issued), that the number of Bat to avoid any possible mis-With all respect to you seemed to be some excitement in procedure would not be in the one of these resolutions before Directors be increased from five apprehension on the part of share Mr. Chairman, the opinion is the share market on the subject, best interests of shareholders. As you any thought occurred, is the while ago. When Hongkong has a producing capacity large. to seven by the appointment of holders of a conservative frame of somewhat widely held that the the Directors authorised a state-ne of the Directors in whom you minds of the requisitioners or in

enough so defy all competition, Mr. C. A. da Roza and Mr. Limind. I should like to mention Green Island Cement Co. has meat to be made which embodied have invested the management the minds of the shareholders as

I say We shall be safoj Tse-fong to the Board. and that some figures. I have nothing stood still watching the remark their decision. It was this:That of the Company. I will ask the whole, to cast any aspersions

and to do that we the Articles of Association be later than the balance sheet of able development around us dur- the Board of Directors was not proposar of the resolutions to on the Board of Directors. I. for have money, and money is offer 31st December, 1924, to refer to. ing recent years, and this no set prepared, nor in a position to withdraw them. If he does not one, should be the last to but from that statement which doubt has encouraged the im- say at present, whether more wish to do so, I will, as a share associate myself with any such ed you, and may it be accepted. with every good grace. I can should not be different to the pre-portation foreign cement capital was required or not. The holder, ask him, if they are idea. If that had been present picture in my mind's eye, within great And I suggest also that our situation then was that it appear-passed, to do the sporting thing in their minds, when approached the present generation, Hong- extent, the only fixed assets business in the Colony should beed that the cement works would of demanding a poll, as the re by them to address you. I would kong not only as commfercial which will bave to be centralised by giving up the have to be moved from Hok Un.quisitionists, though they may at once have said "No." We port but Hongkong like Shang-

confidence, wel scrapped are the buildings and works at Deep Water Bay, and and the General Managers were carry the meeting by a show of have The chair was occupied by Mr. machinery valued at $419,000. carrying on the manufacture of in negotiation with the Gugern. bands, may not control over half confidence, and, 1 bope, we shall all the way from Roosung. R. G. Shewan and there were against which there was a reserve bricks, pipes, etc.. on the same meat for a site at Gin Driers the shares in the Company Those retain that can clop the banks of the Whasapo

flourishing industrial centre, also present Sir Paul Chater. for new plant of $8 lakhs, so that site as the new cement factors il Bay. We had received neodica- who signed the letter requisition Board of Directors. (Applause) with the border line of our territat Mr. G. M. Bernard, Mr. A. O. the sacrifice we are making has the necessary raw material caution of the terms on which this ing this meeting. I believe, repre- But gentlemen, the time bas fal waters on the mainland Ranked Lang and Father Robert already been provided for out of be obtained there. That is a side and worll be granted. but seated only some 125,000 shares arrived when shareholders as a by such buildings and chimney (Directors), Mr. R. F. Mattingley past profits.

of our business which has ap-it was a matter of hearsay that out of a total of 400,000 shares. body in Hongkong and generally | stacks that will make Hansking (of Messrs. Deacon. Harston and

parently only brought losses, the Government would lend the

in the Far East have refused to

s big industrial as well as a COIN-/ but the same business, if one Company some money on easy Shenton, the Company's solici

accept the doubtful dogma of the tors), Mr. Allan Keith (Secretary) The new site for the factory. may judge by the number carry- terms to establish themselves in

Mr. W. T. Shewan:-Might I infallibility of any Board of mercial part of which we may all

be proud. - (Applause.) and between 60 and 70 share-gentlemen, will be, I am told, ating it on in the Colony, must be the new site. I may say there ask a question?

Directors-(Applause). On this holders. Pressure on our space Gin Drinkers Bay; we have no

remunerative to others.

was nothing at all definite, and The Chairman -Certainly. present occasion, a muïver, and a RESOLUTIONS CARRIED. to-day does not permit of our information as to its suitability

it was only last week that I Mr. W. T. Shewan I under-not inconsiderable number, of giving the list af names as usual. but from a passing knowledge of

The Chairman then put the heard the matter, was to come stood the gentleman who proposed shareholders happen to be at the district it will cost a considar- Where are we to find the before the Executive Council for the resolution to say that any variance with their own Board, first resolution which, on a show able sum, perhaps $2,000.000 if not minimum of five to six million discussion to-day! Having in new machinery required for the but that is not to say be of bands, he declared carried more, to develop, and lay out for dollars necessary to carry out mind the fact that we had be-Gin Drinkers Bay scheme would cause we bold" divergent views All the Directors, with the excep

two million be necessarily of the expensive we have no confidence in you with three or four shareholders, tion of the Chairman' together the erection of an up to date this project? Obviously it must tween one and factory and the provision of a come from new capital, and the dollars surplus cash on fixed rotary kiln type. Is he not wrong gentlemen as a Board. But we

voted against it. sea wall, wharves, etc. On top of present time gives you the best deposit, and there seemed to be in that supposition?

[are glad of this opportunity The second and third resolu- that. there will be heavy capital opportunity to

The Chairman-Not neces to express our views, if only to an some prospect of a loan from the shares, which the Secretary will expenditure for kilns which no operation of this nature. Money Government, and also that thesarily.” I think he said modern let the Board of Directors under- tions were carried by a similar and now read to you.

doubt will be of the rotary type. has never been more plentiful in present site would fetch a con-plant but that is, of course, a stand that the time has arrived majority, the proposera The Secretary, having read the Two of these, the minimum we Hongkong through indifferent siderable sum when sold, we matter for the management en-when shareholders desire to have seconders being Mr J. M. Alves letter, the Chairman continu-should commence with, will take trade, but this condition may not were unable to see that there tirely...

a larger voice in the destinies of and Mr. Figuereido, and Mr. A. A. away a large sum and there are t! a survive a revival in business. was

any need whatever for

their properties.-(Applause). Alxes and Mr. Raymond respec- buildings, grinding machinery and You will be asked, gentlemen, to increasing the capital.. Our FATHER ROBERT OPPOSES You have been the guides, and tively.

INCREASE. other plant to be provided for authorisenew capital to the extent idea was that if and when

friends in the past and we hope DIRECTORS RESIGN. which will account for another of $3 million, but only in easy the Gin Drinkers' Bay scheme The Rev. Father Robert said he to retain in this Board, if the re- huge account. The schema stages as and when the Company matured, and we had a definite only rose to support the speech solutions happen to be carried At this stage, Mr. D. G. M. gentlemen, involves anything up should require fands for expital proposition before us, it would made by Mr. Bernard. Mr. da to-day, the same associates that Bernand rose and said:-1 have from five to six million dollars, expenditure, and it strikes me as be time enough to consider Roza had made a clear and able constitute the Board to-day. In listened with the greatest of ed at a Directors' meeting held staggering figures requiring some a wise policy to attach the liabi-whether or not it would be neces- speech, but it fight leave a the speech of the proposer of the interest to the speeches, made- on the 10th January last, this optimism to put up, bus, fortunatelity to shareholders in the mean-sary to ask for more capital, or wrong impression if it made them resolutions, the salient point be by the

shareholders' today, meeting being calied forly for ourselves, sot entirely de- while. I don't know what the whether other and better means think that the Directors did not made was this question of a pro and, having spoken myself on the that special purpose at pendable on the fortunes of Company's actual cash position could be found of providing any realise the necessity to change spective loan from the Govern-subject, there is nothing further. the request of certain share business to justify: the million may be, but I am assuming there money that might be requiral, the plant. They had had many ment. I ask you to consider that for me to state.

But I feel that, holders. The decision arrived and a quarter feet of land at will be a round sum of 15 lakhs and that is the position to-day, conversations on the subject and very sound advice of our immortal as a Director, my policy and my at was, as you know, communi- Hok-Un, nominally valued at $1 after payment of last year's-divi-

for more than three years hadbeen dramatist when he said: "Neither views with regard to the conduct eated to the public the same day.

NO REASONS GIVEN, per square foot. should give us dend. Even that sum and the

contemplating the change. As a borrower Bora lender be." of the business of the Company It was "That the Board of an opportunity to recoup that new capital will not be sufficient]

Now, gentlemen, the day, after to the cost of the removal, they

are not in accordance with the UNIQUE OCCASION." Directors was not yet prepared. figure. Is all this heavy ex- to meet the capital expenditure the meeting of the Directors, had never had an estimate of the

wishes of shareholders, and I now nor in a position to say at pre-penditure justifiable? A grethefore the Company.

a letter was prepared and signed cost and did not know what it Gentlemen, Father Robert has wish to give notice to our sent, whether more capital was prt is unavoidable even if th

by a number of shareholders re- would be. He thought that Mr, said that this is probably an Chairman that I wish to resi required or not." The reso new factory should be of the

quisitioning this meeting, but not da Boss did not know much more unusual occasion, and to my my position as a Directora lutions before you embody all the Hok-Uin type, and we are there- Rumours bave been

cur-giving any reason whatever why than the Directors themselves mind it is a unique occasion According to the Articles – of wishes of the shareholders who fore only required to justify ex-rent that the Company the resolutions were being put it might cost five million, three the history of public, compailies Association, I have to give one signed the letter of the 11th. penditure in excess of the cost of can finance this important forward. In connection with the million or two million collare in Hongkong that you have month's notice, but I hope that he January, and it is now for you a factory of that description. change by mezis of a loan proposed move from Hok Un, no When Mr. da Roza was speaking nearly half the number of will be able to fill the vac to say, whether they shall be ac Gentlemen. I don't know any-from the Government of proposition has yet been consider about the obsolete machinery shareholders coming to you, ao estlier date than th capted or rejected.

thing of the technicalities of Hongkong at a particularly cheap ad by the Directors nor even put they had, the Directors might instead of you going to them hat The Hon Mr. 40. cement manufacture, but, as a rate of intarest. If so, it will be before them. In spite of that, reply that they had at | in hand asking them for money I desire to aŭsociate my business proposition, the expandi-pleasant news, but more interest you ask us not only to increase present the machin ry, which for the development of the Com- the remarks of Mr. Born Mr. C. A. da Roza said:-Mr. ture appears to me to be sounding it will be to know the quid-the authorised Capital but had been employed in cement pany They are coming to offer to give one month's Chairman, -Early last month a We make a cement second to pro-quo required by the Governo call up $400,000 of it factories for the last 20 you a round $400,000 for the resignation from the representative group of share-gone, our cement still bold's ment. If it should mean a satenight away-money ~~ which, years and it was only since thras enlargement and improvement Bes Father Kobe holders asked you to place before the premier position in various of the land at Hok-Un at an things are at present, is not years ago that the new type of the plabf, and here we have exactl the Board of Directors a proposal markets solely because of its arbitrary price to be fixed by the wanted and would have to join of kilns: had been introduced, you in the same breath tell- - Sir Paul Ca for an increase in the Company's quality, but our prices are suffi- Government, if it should mean the other million or two on fixed They were among the first tong us that that offer must sama. respital in order to provide funds ciently above competitive brands that this Company will not deposit in the Bank-money, take advantage of the new type

down. To me it is for the purpose of erecting a new. to make it an important consider- receive the full benefit of the mind you, on which a dividend in renewing old machinery,

ation, and we are consequently secretion in value contrary to a would have to be paid slthough he did not, think they-they- risking further loss of some of our principle recognised by the Gov-not required nor employed by the lost time in taking advantag markets, "if these competitive vernment in another matter only Company, in its business ! This, the new inven brands should ever reach the to-day, I think, Mr. Chairman, gentlemen, is a proposition that i coment.

Green Island" standard of you will find the general body of cannot assent to alla shareholder, they were in the

shareholders against you. We and it involves a responsibility of being offert shall probably be able to do better that, as a Directo -1- dicine to sharehol ourselves, and we shall find ways ROLIDE

After the notice of meating had been real, th› Chairman said:

This meeting has been called in response to a letter signed by 30 shareholders. representing 123,078

ed:The question of moving the

factory from Hox Un has beer,

before the Directors for some time, and the suggestion which comes fram shareholders that the

capital of the Company should be

increased was specially discuss

MR. DA ROZA'S SPEECH.

Ifactory on another site which we

understond, by an arrangement

NEED OF NEW MACHINERY.

ith the Government, was im minent. You informed us. Mr. Chairman, that the proposal had baen duly submitted, and later an | quality. Banouncement appeared in some of the local papers giving really to decision in the matter. As far as I remember, the announce ment stated, that the Directors Tad pot decided, whether or nat issue new capital—the position “left in doubt, and it is for

carry out

GOVERNMENT LOAN?

Gentlemen, our comparatively and means to carry out a scheme higher prices have been kept up of development. On the other because of heavy working costs; hand, if the loan should be under we cannot afford to reduce them conditions, we could accept, how so long as the Company is handi- will repayment be made at lowe capped by, antiquated methrds as the Hok-Un - Jand - be not se of clearing it, and of forced on us by old and worn out realised?

Board into a machinery. Cost of manufacture fits

whe

w

Fience and I shoul this very large n

meetinghou

(Applause) that offer