1935-01-02 — Page 3

THE HONGKONG TELEGRAPH. WEDNESDAY, JANUARY

1935.

CEMENT CO.'S LOSSES

GREEN ISLAND EFFECT REDUCTION BY TWO-THIRDS OF CAPITAL

POLICY VIOLENTLY ATTACKED

Reduction by two-thirds of the authorised capital of $6,- ,000,000 In consequence of losses, was approved by shareholders of the Green Island Cement Co., Ltd., at an extraordinary general 'meeting held in Exchange Building on Monday,

The position of the Company, due to severe competition, tariff difficulties, and other adverse trade, conditions, was fully set out by the Chairman (Mr. J. Scott Harsion) who also repiled to criticisms by a shareholder, Mr. H. Odell.

An amended resolution brought by Mr...Odell for an "Investigation committeg" with a view to discontinuing business wná rejected.

The Chairman said:

reviewing the book values of the Gentlemen,--The purpose for which Company's land and other assets res- this Meeting has been called is to [pectively. These specialists have consider and, if thought fit, to pass, carefully considered the book values with or without amendment, the of our assets, and have reported in special resolution and the ordinary detail to your Board and, advised resolution set out in the notles which in the explanatory note altached to has been in your hands for the re-the notice convening this meeting, quisito period and which has just coples Menara. Leigh & Orange's valuation and of Messrs. Lowe, Bingham & Matthew's ment

been read,

Attached to the notice in an ex planatory note dealing with the sub- Ject-matter of the resolutions, and therefore, in formally proposing them, it is my duty, as Chairman of Directors, to nequaint you with the considered views of your Board and to amplify the information which has already been given to you.

of

mado

ontem

For-Arels for of travellers by son and alembera has cavand havoc on lend as well, Travelling

in a dense for at Clinton, Mast., « begvily inden freight train rammed into an unattached locomo. tive. Four railroad employees were killed, both wazines were wrecked, seven freight care derailed and

hundreds of yards of tracka ripped up.

I now turn to the resolution nue-holders will support it and see it bered 2 set out in the notice calling through. With these few remarks the meeting. The purport of this have much pleasure in coraling resolution is merely to consolidate the the "perial resolutions as read by the reduced nominal value of the Com-hair'man. pany's shares from $2.50 to $10.00) each, the latter being considered a

Objection by Mr. Odell

ficates shall be issued.

Ch) Un Auen Consolidation aforeenkt the existing certifiente of stinres shall be, callid in by the Directors and cancelled and that new certificates shall be isquet! subject to the provisions contain- ed in the Company's Articles of Anunciation.

Mr. Frank Austin seconded and the resolution was carried.

of Assets and Liabilities before Anil after re-valuation entering upon a new period of pros-most practicable. thing to be done in have been

available for perity at some

later date, their the circumstances, Inspection by share-holders on applica- participation in such prosperity, will is with much regret that we hear tion to the Secretary. In reviewing in no way be affected by the step now of the necessity for this step being the book values of our assets, the alm contemplated.

taken and i feil sure that all slinre- throughout has been to arrive at values which more clearly reflect the true position of the Company, having full regard to it present The reduction of enpital, now re-

eir jeumstances, to the culmination commended many months of very serious thought Cancellation of New Shares

“This concluded the business. and deliberation on the part of your

Shareholders Present Board, and it is submitted without The result of these investigations are practical value allowing for! Mr. H. Odeil delivered 'n lengthy

Present were Mr. J. Scott Harston reservation as being the most prudent entails an aggregate reduction of our iter control and easier handling, speech attacking the past policy of (Chairman),

Sir Robert Ho Tung, step which can and should be taken present book values to the extent of Fractions of the new shares will be the Company and concluded:"

Messrs. A. L. Shields, T. E in the best interests of the Company $3,982.760.41. und

Summing up, I cannot honestly, ace Peares and Tae-fong (Directors), the fullestolt for the benefit of holders.

I now beg to formally propose the how by writing down asseta-which T. C. T. Beck (Acting Secretary), A. having regard to the circumstances consideration, your Board recommend in which it now finds itself.

that this for should be provided for following Resolution (No. 1 in the our balance sheet of nine months ago Ritchie (Auditor), R. A. Wades by reducing the Company's pald-up tice convening this Meeting) told us were still intact--the position (Solicitor); and the following share. of the company can be altered, Weholders: Messrs. Frank Austin (At- Capital to the extent of $3,967,088, Sprelal Renutution:

That the Capital of the Com-have been losing money, we are losing torney for A. J. David), M. A. the balance of $14,776.43 to be applied The root chases of our present to $247.50 against Return of Capital

pany be reduced from $6,000,- money to day, and we will continuel Figueiredo, C. E. L. Grist, H. J. M. 000 (divided into 800,000 shares: to lose money until our entire capital| Flenetrodo, Leung Kum-cheang, N. generally accentuated by tariff diffGeneral Reserve Account, and as to Account, na to $11,336.0% against

of $7.60 ench) to $1,054,040 is wiped out.

V. A. Croucher, I. O, Odell, P.. M. culties and, in particular by never $3,192.11 against Bad Debts Reserve

divided into 781,970 shares of Let us move on, gentlemen, frons) Ellie, A. „J, Edgni, M. F. Politi, F. and unremitting competition, aided

$260 each, and that such re-lour fairyland of feverish sprealation¦ E. Silva. A. Kitchell, K. C. Mark, duction be effected in manner to a world of realities. I plead with Yu Chee-lick, Lo Yuk-tong and Tang by a favourable competitive exchange. Account. In short, the proposals mean, firstly, the Te the latter, your attention was first before you will

follow:

[you to support me in the following Kit-wat. drawn from this chair as far back cancellation of all shares partly paiti nx the month of March, 1932, when in respect of which enlls are now loutstanding, and secondly, the can-

Root CauseN.

troubles are bad trade conditions,

after

the Company's accounts for the year relation of two-thirds of the mount 1931 were under review. The exist

on the fully-paid sharen, ence and effect of this competition Paid continued to be felt more and more their nomium amount from $7.50 to which will in consequence reduce acutely, and at the annual meetings. each. held in April, 1933, its seriousness

was stressed by myself as Chairman, In considering the applieution of and a warning was given that your ur lasses on capital assets in the man. Company could not reasonably be exer shown, your Bound anticipate that preted to survive a continuance of further trading losses will be nx- the Intensed damping of cement, perienced in view of the probable con which was then being experienced in tinuave, for some time to come, of this Calony and chewhere, Again, adverse Trade conditions and ous de In April of this year it was my uncompetition, and for this reassin your pleasant duty to advise you that the Band Company had been operating under opinion is shared by Messrs. Lowe, Ising hum & Matthews) that the extremely adverie conditions, the very serious effect of which hud forced your General Reserve Account shoult Board to go so far as to open negatiu- retained on our books. In this con tions for the disposal of partions affection, it is necessary for inn your plant.

про of the opinion Du hiel

вет

emphasise that whatever may be the (eventual result of the Company con-

tinuing business. It is essential that; it shall carry on until such time as the present locks of limestone shall

realisable

- You will therefore fully appreciate that the verse influences nifeeling the Company for the past four years have had the unremitting attention have been consumed, because there of your Muangement, and it is only stocks of raw materials, in any form after this long and painful xther-than-manufactured -- Cement, perience, during which no effort has would have. little or no bern spared to defend your interests, that you are now asked to acknow- ledge the loss of part of your invest ment in this undertaking, in the hope that the reminder muy have the bet ter opportunity to survive.

value. In other words, naruming the Company were to proceed to liquida-

inn now. It would still be necessary to continue the production of Cemit in order to realise its stocks of w ¡nuteriáls to the best advantage. The present polley of your Board is, there- Two-Thirds Capitel Lost fore, to carry on the Company by the most economical menis until such time Briefly, Gentlemen, approximately as the large stocks of our more im- two-third of your capital assets can portant raw materials have been con be considered to have been lost in so sumed and, at the end of that period, far as they have become non-revenue to consider carefully, whether or not producing to auch an extent that their it will be possible for the Company. retention at their present values on relieved of the incubus of heavy de- our books will no longer reflect the [preciation charges consequent upon true position of the Company.

the writing down of capital assets When it became fully apparent sanction-to operate on

which shareholders are now asked to that some definite, drastie action was basis.

a profitable essential in order to preserve foundations of our undertaking, your Board, in considering the measures to be taken, sought the advice of In conclusion, I would ask share- Menara. Leigh & Orange, Architects holders to appreciate the fact that the

thn

Book ValuCK

and Civil Engineers, and of Messrs. losses now being written off are on Lowe, Bingham & Matthews, Char: book values only and that, in the tered Accountants, for the purpose of jevent of the Company surviving and

(a) By cancelling Capital which barndment to the resolution before The chairman and Mr. J. B. has been lost or unrepresented you: "That the reconstruction Taggart roflied to Mr. Odell's by available assets to the ex-jscheme be held in abeyance; that an eritleisma.

Members of the Rugby Team of the Meiji University, Tokyo, pennant winners of the inter Members of the Rugby Thame of the Meiji recently to play a series of matches with local teams.

THOROUGH CLEANER-

tent of and by the cancellation Investigation Committee be formed, of the 18,031 shares of the independent of the management of the Company in respect of which company, for the purpose of ascertain- arrears of enlls are now out-ing in us short a time as possible, and Landing but, auch reduction to in as thorough a manner as possible

Chicago, Dec. 17. be without prejudice to the whether we should continue in business.

Jack Jones goi a job cleaning a Company's right to sue for and or not"

of enlis

cigar store after hours. Mr. Odell's nmendment

Detectives recover all arrears now outstanding and due in seronded.

who arrested him said he cleaned respect of such shares.

The Chairman then put the Rewolu: 100 thuroughly, sweeping cartons (b) By cancelling Capital which tion he had proposed and which Mr. of cigarettes into refuse which

was not

has been lost or is unrepresent-¦ Frank Austin had seconded, and this later was picked up by an Ne- ed by available assets to the was carried.

¡ complice.-United Press. Second Resolution The Chairman; I now beg to fur-

extent of $6,00. per share in respect of each of the remain-

-

MODERN

Peterboro, Out. Dec. 17. Here is the definition of a

ing 781,076 shares of the Com-mally propass the following Resolu- pany and by reducing the tion (No. 2 in the notice convening! nominal amount of each such this meeting) as an Ordinary Re

Isolation: share from $7.50 to $2.50 shareholder will kindly second on And I shall be much obliged if somu 2. That immediately on the fore

going reduction becoming effective proposal, whereupon questions thereon

pany reduced to $250 per share shalt¦ be consolidated in such tanner that foreign-born resident when he every four shall constitute one $10.00 appeared in court on 魏 trafle share and thai-

charge: "Are you moderate, im- (a) On such consolidation AS moderate or a teetotaller?" the aforesalt the Directors shall have magistrate asked. "Modern, your fall power to make such provisions!

the said 781,978 shares of the Con modern drinker" as given by a

may be raised.

Practicable Course

Mr. Frank Austin: We have Üsten- ed to the explanation and details i given by the Chairman of the neces sity for the reduction of capital, and I feel sure all shareholders will agree; with the proposed reduction us the

by safe or otherwise as they think worship," the accused answered expedient for the case of fractions promptly. "I drink it whenever bul so that no fractional certi- I can get it."-United Press.

LANE, CRAWFORD'S

STORE. WIDE

SALE

COMMENCES.

2ND JANUARY 2ND

All

Departments Participating

WORTHWHILE BARGAINS !

LOW PRICES !

BIG DISCOUNTS !

BIG SAVINGS!

New Year Hampers

We beg to notify Customers that Assorted Hampers suitable for the Festive Season may be obtained from us at the following Reduced Rates:-

No. 1 HAMPER-$45.

1 Qt. Moet & Chandon Dry 1 Qt. Superb Tawny Fort.

Imperial Champagne.

1 Pt. G. F. Peppermint..

I PL. D.O.M.

1 Qt. Martell's XXX Brandy,

2 Qte. King George V Gold Label or John Haig Gold Label Whisky.

Qts. St. Julien Clares.

1 Q. Old Brown Sherry, Black

Seal.

1 Qt Taylor's Old Tom or Dry

Gin.

1 Qt. Burgoyne's Burgundy.

1 Phial Pomeranzan Bitters.

No. 2 HAMPER--$40. 1. Guillemart Champagne. I Pt. D.O.M.

1. Burgoyne's Burgundy.

1 Q Martell's XXX Brandy.

? Q. King George IV Gold Label or John Haig Gold Label Whisky.

2 Qs. Tawny Dry Port. 2. Qts. St. Julien Claret.

1 Qt. Taylor's Old Tom or Dry

Gin.

1. Vino de Pasto Sherry.

1 Phia Pomeranzan Bittern.

No. 3 HAMPER-$35.

1 Qt. Burgoyne's Burgundy.

1 Pt. G. F. Peppermint.

i Pt. D.O.M.

Qis. Tarragona Port.

Qts. King George IV Gold Label or

John Haig Gold Label Whisky.

1 Qt. Pellisson Brandy.

Qt. Amontillado Sherry.

1. Taylor's Old Tom or Dry

Gin.

2 Que. Medoc Claret.

1 Phla Pomeranzan Bitters.

Other Hampers made up to suit Customers' requirements.

GANDE, PRICE & CO., LTD.

Tel, 20135.

St. George's Building,Ice House Street.

HONG KONG.

CARPETS & RUGS

VACUUM CLEANED OR

SHAMPOOED THOROUGHLY

BY MODERN & UP-TO-DATE.

METHODS AT REASONABLE

CHARGES.

PRICE. LIST

POSTED ON REQUEST.

ન

School girl drumines loading a „parade in Adrianopfə commemorate the delivaranes of the alty by Kemal

Pasha,

Three slim, revolving bindes carry this craft through the air-withädt benaßit of wingel 12%. a new type autogiro, shown hare ni it was demonstrated before government experts at a small Gold

la_front of the Army, War College, Washington.

ARTS & CRAFTS

LIMITED

CARPET CLEANERS & STORERS.

4A, DES VOEUX ROAD.

JUST OPPOSITE the Dairy Farm's Soda Fountain.

The MING YUEN STUDIO has- removed to the 3rd Floor of No. 6 Queen's Road Central.