216
ROYAL HONGKONG YACHT CLUB.
NINTH CLUB RACE.
THE HONGKONG WEEKLY PRESS AND
DIRECTORS' FEES.
TO THE EDITOR OF THE
This race was sailed on the 8th March in a
DAILY PRESS. light but steady east wind. The course was from SIR-Now that the Directors of the Union the Police Pier, Kowloon, round the Channel Insurance Society have gracefully withdrawn Rocks, Kowloon Rooks, dinghy off pier, twice their preposterous proposal it may seen ungra round; 13 miles. The following boats started:cious to refer to the matter further; but as two
Payne Dart
Erica
Princess Meteor... She
Royal Engineers
Mr. A. H. Barlow Mr. A. Denison
Dr. Lowson
Mr. T. W. Lammert Mr. C. H. Gale
The Arrow had a sail over for the Handicap prize.
In the beat up to Channel Rocks Meteor and Erica went away from the rest of the fleet and rounded with a lead of five or six minutes. The times were →→
Meteor. Erica
Payne
Princess Dart..
H. M. 6. 12 33 7 12 35 20 12 40 0
12 44
0
77
12 46 12 51 0
She Shortly after rounding the rocks the Erica ran foul of the Princess, which was beating up. As Erica was going free at the time and Princess was close hauled, the former hauled down her flag and returned to her moorings. The times at different marks were as follows:-
Kowloon Rock
H. M. 8. 12 49 10
Mark boat off Pier
H. M. 8.
16 55 23 25
1 27 25 1 31 10
7 20
Meteor.. Payne 12 56 0 Princess 12 38 0 Dart..
12 61 50 Shie
1 5 20 In the second beat up to Channel Rocks Princess passed Payne, and went into second place. Nothing further happened and the boats finished as follows:-
Meteor
Princess
Payne...
Dart
She Arrow
H. M 8.
2 57 34 3 3 31 3 7 20 3 18 11 3 19 50 3 21 14
The marks gained by the boats up to date are:-Erica 44, Princess 41, Meteor 36, Payne 3, Ladybird 1; in the second class She 60; and in the handicap class Arrow 30.
CORRESPONDENCE
[We do not hold ourselves responsible for the opinions aspressed by our correspondents.]
THE DOCK COMPANY.
TO THE EDITOR OF THE DAILY PRESE." SIR,As a shareholder unable to attend the meeting last Tuesday I have read with interost your report of the proceedings, the letter of Rhadamanthus," and your leading article of yesterday. I quite agres with you that it would have been better if notice had been given of the intention to propose such a resolution as was moved by Mr. Stokes, seconded by Mr. Mody, and carried by the meeting. But shareholders should remember that that is not the end of the
matter. I am inclined to think that so much of the resolution as purports to vote $3,500 to the Board as an addition to their fees for the past half year" is invalid as being in con- travention of article 69 of the new Articles of Association. As to the rest of the resolution, the limit of the directors' fees cannot be prospectively increased from $1,000 to $2,000 a year each except by a special resolution passed and confirmed at extraordinary meetings of the shareholders. These meetings must be duly convened and held and notice of the intended resolution must be given, so that the share holders will still have an opportunity of con- sidering whether or not the directors' remunera tiou should be increased. Nothing has yet been decided in this respect, except that the share holders shall be asked to consider the question, and if any sharoholder has au alternative proposal to make it is still open to him to make It.-I am, sir, your obedient servant,
Hongkong, 3rd March, 1896.
J. F. REECE.
(March 12, 1896,-
although we do not of course guarantee their accuracy, be taken as at least approximately correct. Now, all these gentlemen have, or are supposed to have, the important interests of their own firms to attend to, so it can be judged that the time which Mr. A., for instance, can devote to the companies from which he draws $1,090, a month is already sufficiently well paid previous, equally preposterous, proposals were for. You informed us some days ago that it practically sprung on shareholders, it may be as is business ability and experience as well as well that a little light should be thrown on the time that has to be paid for. Directors' subject and that it should be calmly considered meetings are generally held once a week and last before shareholders are caught again. It would half an hour, or say an hour on an average, be interesting, and, indeed, instructive, to know Let us take the case of Mr. J., who holds office how many of the 134 votes are held by gentle in two companies. This gentleman is supposed men who are directors of other public companies. to have had experience, as the storekeepers gay, Mutual accommodation is a virtue; it is akin to, of everything from a needle to an anchor. we may say a form of, charity, that is brotherly He attends say a hundred meetings a yier for love. We have faith in our directors' industry which he draws $41.66 each, pretty good pay and ability; we have hope for big dividends; for an hour's time and even his varied er- but, "the greatest of these is charity. There-perience. But another reason, which you did fore if any of those 134 votes were given on not mention, for appointment to directorships the mutual accommodation principle they are is that the appointees are supposed to be able to to be commended as the exercise of a virtue to bring business. Mr. K. sits on the boards of which we all lay claim. On the other hand it three insurance companies, from whose funds he must be understood that the 47 adverse votes draws nearly $300 per month, but I will under- wore not the result of a canvass; at least I and take to say that of a dozen commission agents the only other shareholder to whom I have whom you may name any one contributes more spoken on the matter were not asked. They business in a month than he does in a year. were apparently the votes of officious, discon- If fees are to be increased whenever a tempor- tented, and uncharitable shareholders; probably ary profitable business has been done they will they came mostly from Shanghai; dictated by have to be reduced when the business happens that restless, intermeddling spirit for which to have been unprofitable. We have known cases shareholders in the "Model Bink are hoted. I in which directors have foregone their fees would not presume to venture an opinion as to when a continuance of bad times has occurred, what the result of a canvass would have been; but, and we have known cases (more of the latter!) although it might have deprived the directors of in which they did not, as, for instance, the Hong- the opporturnity of showing their magnanimity, kong Bank directors when that institution paid it would have been the more satisfactory course.
no dividend and lost its reserve fund. If the In this connection may I ask, Why did not the companios they are supposed to manage have directors of the Dock Company adopt that plan been doing well they ought to be content with with regard to the increase of their fees, when the extra dividends which their talents (P) they had found it so successful in quashing the enable to be paid on the shares they hold; that brokers proposal to split up the shares? It is, supposing that they've got any. Directors cannot be contended that the proposal was not ought to be paid either a fixed sum, through known beforehand, as both that and the bonus to good Reports and through bad Reports, like the staff had been publicly spoken of for some any other employés generally more time, at- time. The bonus to the European staff as tention, and especially ability, are required well deserved. They are, I am told on the best when a business is not doing well than when authority, mostly all exceptionally able men in things are flourishing and, therefore, most likely their profession and had for a long time been going on smoothly-or they ought to be paid a working day and night, although the terms of percentage on the net profits, or even part one. their agreements do not allow anything for and part the other, but the plan of permanently 'overtiano." They are paid High salaries I raising the sum paid because there happens know, but they are the pick of the best yards at to have been a temporary increase in the home and they gave a great deal of extra work profits must be put an end to. It must ungrudgingly. Did the increase of work at be remembered that a fall in the dividends is the Dock outail any extra time or attention or almost inevitable; the reduction in the rate require any extra talent on the part of the of interest on mortgages and all round has directors? I trow het! Now that the play of tebe put against any prospective inorcaso in asking by circulur the opinion of the shore- business, and considering that competition is hokler for now and important proposals has been becoming keenor every day. such increase incrossfully a toptel hope to see it followed in
cannot be looked for in many cases. other ente
Had a foto been taken in this way enthusiastic buyers who are rushing up the in regard to the return of capital by the Steam-price of shares seem to overlook this fact. boat Company i el sure that the result would have beon different. At least the opinions I hoard outside were sluipst all trainst it. It might have been the same in the case of the bonus forced by a fow from the Douglas Steam- ship Comay, and had it been done in the base of the increase to the previously very high sum drawn by the directors of the Hongkong and Shanghai Bank I have not a shadow of la doubt that that increase would never have passed. Of almost all our com- panies the votes of the Hongkong and Shanghai shareholders would be sufficient to decide any question.
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Thoso
We are no advocates of a cheese-paring policy. In some cases directors' fees would stand rais- ing in other, and we think more numerous, The only casos, they would stand reducing. business-like way is to let the law of supply and demand take its course; an inferior man must be content with inferior remuneration; a stupid or lazy man is dear at any price, while a really good and working man is almost always cheap even at an exceptionally high salary. The mistake we make is the same as the sophistry. which underlies the argument on which trade- unionism is founded, that good and bad should be paid alike. This place is small, very small, and it is forgotten that directors are tho But, revenous a nos moutons, although employés of the shareholders, and while they think that Hongkong shareholders and not the have the right to sell in the dearest we have an (I had almost written clique of directors are the sheep. As I file the reports of all the equal right to buy in the cheapest market. These things should be done on the principle Companies in which I am interested I have
of business, not on that of brotherly love. taken the names of twelve men, and I find that The twelve gentlemen on the above list are, with Mr. A. is a director of ton Hongkong com- panies, from which he draws an annual sum of the exception of one rentier, all so-called mer- chants; soule represent "real live businesses,” $13,083 or thereabouts; Mr. B. from seren
some represent names: but all are brothers ap- companies gets 89,333; Mr. C. from seven,parently, at least they hold together. The times $8,916, Mr. D., eight, for $8,750; Mr. E., Bix, demand a change and demand that directors be $8,66 Mr. F., oight, 87,250; Mr. C. four, appointed and their remuneration fixed by the $6,660 Mr. H., five, $6,000, Mr. L, Eur, $4,250, M. J.. two, $4.166: Mr. K., three,Hongkong, 9th March, 1896. $3,333; Mr. L. three. $3,250. These figures were taken out by another persou (whose vic ws as well as my own I am expressing) and checked by me, and they may therefore,
SHAREHOLDERS.
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