October 2, 1895.]
CHINA OVERLAND TRADE REPORT.
at this office, and it is hoped that the gentlemen present to-day will, if possible, then attend. That is all the business before the meeting, and I thank you for your attendance,
CHINA TRADERS" INSURANCE COMPANY, LIMITED.
The SECRETARY read the notice convening the meeting.
assort--That after payment of five dollars per share, or $400,000, out of capital, the balance of about a million dollars left in our hands will amply suffice for all requirements. That the division of this sum among the shareholders will relieve the Board of the responsibility of finding profitable investment for it at a time when money is cheap, the Bank rate for deposits low, and investments on mortgage difficult to procure at more than 6 or 6 per cent. That the much talked of opening of the West River The twenty-ninth ordinary meeting of share is still doubtful and apparently far from realiza-holders in the China Traders' Insurance Com- tion. That the Company, in view of the un- pany, Limited, was held at the head offices, Queen's certainty of that much desired concession, cannot Road, on Saturday at noon. Mr. J. Thurburn reasonably postpone longer meeting the wish of presided and there were also present-Messrs. the shareholders that a portion of their capital P. Sachse, J. Kramer, St. C. Michaelsen (Direc now invested in stocks and loans should be re-tors), R. H. R. Burder, W. H. Wickham, H. turned to them. That in the unlikely event of M. Mehta, E. Burnie, R. C. Wilcox, E. W. the West River being opened, if after the Mitchell, J. D. Hutchison, J. Goosmann, E. C. expenditure of the million dollars in hand more Ray, W. Parlane, Chan Toung Fat, and W. capital were needed for purchase of steamers, H. Ray (Secretary). etc., it could readily be raised either by a loan, the issue of debentures at 6 per cent., or by creation of additional capital. That with our capital and reserve we have at all times sufficient credit with the public to raise as much money as may be required on loan. That this Company unlike insurance companies, is not a credit concern with whom the posses- sion of large sums readily available is an object, ensuring big business, That having regard to past experience, it can hardly be said that the possession of increased capital served to stave off opposition, nor is it probable this would avert it in the future. That under the subsisting agreements recently entered into with other companies engaged in the river trade we are debarred from at present increasing our fleet or enlarging our field of operations. Our invested capital has been and is a drag on the earnings of the capital sunk in the fleet, etc. As shown by our published accounts for the past half year, the Company's floating stock, that is to say, the steamers, lighters, with the neces sary adjuncts of wharves, stores, spare gear, etc., yielded a handsome return, as against a little more than 6 per cent, accruing from our various investments. When the capital is reduced the net earnings on the smaller amount will provide a larger percentage as dividend to the shareholders, and with an improved business still better divi- dends may be looked for by investors in our stock. That with the money so easy as it promises to be, it is unlikely the Company will be able to main- tain the rate of 63 per cent. all round on its in- vestments of so large a sum as fourteen lakhs. That it is not necessary for a River Steamboat Company to have such a large amount of capital employed in directions foreign to its business in order to keep up an appearance of reserved strength, and that the paying out of four lakhs from this invested capital will, for the reasons. set forth above, in no way weaken the position of the Company, whose credit is sufficiently well established. It is now, gentlemen, for you to decide whether or not this return of capital shall be made, and I wish to state, gentlemen, that the directors being divided in opinion on this question of return of capital, in deference to each other, have resolved not to vote one way or another at this meeting. Will some share- holder propose the resolution?
The CHAIRMAN Gentlemen, I will with your permission take the report and statement of accounts as read, they having been in your hands ten days, and have no doubt received every attention. As stated in the report a change has this year been made in dealing with sterling, receipts and payments. Since the formation of the Company these items have been taken, for the purposes of statistics, at a uniform rate of 4/- per dollar. Until the recent material fall in exchange the mode of adjust ment was of little moment, but considering the very marked difference that exists at present between this rate and that now current, the directors are of opinion the latter should take the place of the previous fixed system, and this will be the practice in future. Although the net result will be precisely the same by either method the present mode will show the revenue and expenditure in silver, the currency in which the Company's accounts are kept. This change also accounts for the apparent increase in charges and directors' fees (the latter include the fees of consulting committees in London and Australia), these and other sterling charges being calculated at the current exchange instead of 4/- as formerly. The business transacted during the past twelve months is very satisfac. tory as regards receipts, the premia being in excess of the previous year, after allow ing for the difference in rates of exchange just mentioned-a result which is partly due to premium obtained for war risks during the late China and Japan war. The losses, however, have been exceptionally heavy, but in spite of these the result of the year's working I think will not be considered, under the circumstances, unsatisfactory, and the directors are glad to be able to recommend the same dividend as last year, viz,, 20 per cent. to shareholders and 15 per cent. to contributors of business, and to carry forward $290,000 to new account. The profits realized by the sale of a portion of the Company's.sterling securities, referred to at last meeting, amounts to $100,000, and the directors propose that this sum be transferred to reserve fund, raising it to $900,000. Messrs. Palmer and Turner have made the customary annual valuation of properties mortgaged to the Com- Mr. FENWICK-I have much pleasure in pro- pany in Hongkong, and their report shows the posing the resolution which you have heard security in every instance to be ample. I think read, and before doing so I may say that I hold nothing else requires remark by me, but before proxies for twenty-eight shareholders in Shang-proposing the adoption of the report and hai, representing over $11,000. I think I may say that nearly all the Shanghai shareholders are unanimous in desiring that this return should be made to the shareholders. I think the Chairman has expressed our views so clearly on this matter at this meeting that there is no further need for comment. Gentlemen, I beg to propose the following resolution "That the capital of the Company be reduced from $1,600,000 divided into 80,000 shares of $20 each to $1,200,000 divided into 80,000 shares of $15 each and that such reduction be effected
by returning to the holders of the 80,000 shares which have been issued capital to the extent of $5 per share and by reducing the nominal amount of all the shares from $20 to $15.”
Captain TILLETT-I beg to second that, gentlemen.
Carried ananimously.
The CHAIRMAN The confirmatory meeting will be advertised for Wednesday, 16th October,
accounts I shall be glad to give any further in- formation that may be asked for.
There were no questions, and the CHAIRMAN moved the adoption of the report and accounts.
Mr. HUTCHISON seconded. Carried.
Mr. MITCHELL proposed and Mr. WILCOX seconded the confirmation of the appointment of Mr. M. D. Ezekiel as member of the consult. ing committee.
Carried.
On the motion of Mr. BURDER, seconded by
251
Mr. GOOSMANN-Mr. Chairman and gentle- men, now that the report has been adopted I think we can be quite well satisfied with the result of last year's working, and I would like to propose a vote of thanks to the Board of Directors, Secretary, and staff, and I have no doubt somebody will be found willing to second the motion.
Mr. WICKHAM-I have much pleasure i seconding the motion.
Carried.
The CHAIRMAN-I beg to return thanks on behalf of the directors and staff; we are all very glad to have attained such a pleasing result.
THE HONGKONG HOTEL COM- PANY, LIMITED.
The following is the report of the directors to be presented at the ordinary meeting of shareholders, to be held at the Company's hotel, on Friday, 4th October :----
In accordance with section 53 of the articles of association, the directors have now to submit to the shareholders their half-yearly report for the six months ending 30th June, 1895.
ACCOUNTS.
The profit and loss account of the Company shows a credit balance of $5,668.38, including $576.92 brought forward from last account, as compared with $2,765.31 on 30th June, 1894. offices is slightly less than for the half-year The amount received from rents of shops and ending 31st December, 1894.
The profit of the hotel, as distinct from that of the Company, for the six months amounts to $19,211.05, against a profit for the same half- year of $20,144.53. The profit of the hotel for the past half-year would have been $20,261.05 but for an exceptional disbursement in January last of $1,050 for the passages of the late manager (Mr. R. Tucker) and his wife to England.
The profit on the board and lodging account" for the half-year $27,681.14, against a profit on the same account for January to June, 1894, of $24,874.97.
++
The "bar and wine accounts show a surplus of $11,648.49, against $7,839,85 for the same period of the previous year.
The
profit to the extent of $338.25.
billiards account" shows a diminished
Salaries and wages of the hotel staff for the six months amounted to $10,226.02, against $9,784.13 for the second half of 1894.
The sum of $5,057.43 due for debts owing to the hotel for some years prior to 1895 has been placed to a suspense account, as it is probable that a very large part of it will have to be written off as bad during the current year.
Of the item of $2,166.20 for salaries at the debit of the profit and loss account of the Com- pany the sum of $1.301.20 was paid on 3rd January last to the late manager (Mr. Tucker) for arrears of commission due to him and for salary attaching to the unexpired period of his agreement.
HOTEL COMPANY'S ACCOUNT. The sum of $1,000 on account of calls has
been collected during the half-year from persons
whose shares have been forfeited. This amount now stands at credit of profit and loss account, but the directors recommend that it should be written off furniture account" during the current half-year.
44
MANAGEMENT.
Mr. J. Richardson, Manager, resigned on 4th May last, and Mr. C. Mooney, Secretary, on 30th June. Mr. A. Fonseca has been appointed Manager and Secretary.
DIRECTORS.
Messrs. E. Osborne and R. C. Wilcox retire
Mr. WICKHAM, Messrs. Sachse and Ezekiel by rotation, but offer themselves for re-election. were re-elected members of the consulting committee.
Messrs. H. U. Jeffries and T. Arnold were, on the motion of Mr. MEHTA, seconded by Mr. CHAN TONG Fat, re-elected auditors.
The CHAIRMAN-Gentlemen, the business before the meeting is now finised, and the dividend warrants will be ready on Monday,
AUDIT.
antly
lity The aunts have been audited by Messrs. W. H. Potts and W. H. Gaskell, who offer, themselves for re-election.
EDWARD OSBORNE,
Chairman, Hongkong, 28th September, 1895
No comments yet.
Private notes are available after approval.