The-Hong-Kong-Weekly-Press-1897-03-03 — Page 3

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March 8-1897.3 PUBI

ANIES AND THEIR RESERVE FUNDS.

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CHINA OVERLAND TRADE REPORT.

Interests of insurance companies dictate a policy of strengthening the reserve, and the Hongkong Fire Insurance Company would be wise to remove the limitations on the ultimate amount of the reserve fund and that fund in any one year. the amount that may be appropriated to

THE BLACKBURN COMMISSION.

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that have shipped tinental makers made na cheaply same attention, been giv ture.

There are oth British manufac way, such as yellow

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bamboo steel, wire nails, the two latter having indeed almost entirely left them, These are facts which the British merchanta to bring home to the manufacturer, in China have again and again endeavoured avail. Secure in his belief that because the home demand had increased and that therefore his works occupied, the trade was as flourishing were still busily

as of yore, he shut his eyes to the truth and would not be persuaded that the industry was really declining. The Black- burn Mission will be able to rudely dis- sipate these dreams, and, we hope, succeed in convincing British manufacturers that if they are to hold their own in the future they must not only study the requirements of the consumer abroad, but that they must resort more to technical training and a thorough knowledge of chemistry. Above all things the British manufacturer should beware of the temptation to despise small things. It is largely due to their careful attention to the supply of small wants that the Germans have gained such a hold on the markets of the Ear East. In many in- stances they have created a business for themselves; and it must be conceded that by their indefatigable industry and intelligent observation they have richly deserved the success attained.

The advantage to a Public Company of building up a substantial reserve fund in times of prosperity has been strikingly illustrated in the case of the Hongkong Fire Insurance Co. At the annual meeting yesterday the Chairman congratulated the shareholders on the fact that after the lapse the Blackburn Chamber of Commerce to It was a happy inspiration that prompted of some years they were again able to streng- send a Commercial Mission of Inquiry to then the position of the Company by adding China. The members of that Commission to the reserve fund as much as the articles of could not fail to gather a great deal of association permit of The original articles | valuable information which if not exactly limited the reserve fund to the sum of one

new would receive more attention from the million dollars. That amount having been manufacturers of Lancashire than they are wont to give either to reports of the Consuls reached when the report for 1886 was or the complaints of the merchants and presented, and it being deemed desirable traders who handle their goods in Eastern that the fund should be further. augmented, Asia. When the British manufacturer is an extraordinary meeting was held on the informed by a Consul of such and such an 22nd February, 1887, that is ten years ago, to exclaim :

opening in a certain country he is too prone Oh, the business is so small; at which the articles were altered to the

"it is not worth competing for:" Or when effect that "The reserve fund having now advised by an agent abroad that so many reached the sum of 81,000,000 the General pieces of a certain class of goods can be Managers and the Consulting Committee placed if he will alter the width or the may appropriate from time to time so much weight, he will write out promptly that it of the profits as they may deem desirable to will not pay to alter the looms for such an "the reserve fund until the said fund shall order. And the order then goes to a Con- "amount to the sum of $1,500,000, pro-tinental maker, who, while gaining little "vided always that such annual appro- "priations shall not exceed ten per cent. of "the said profits." In the balance sheet for 31st December, 1886, the item appeared "To reserve fund, amount reserved from "the profits of 1869 to 1885, $1,000,000." The following year the sum of $31,486 was carried to the reserve fund, and, after

THE PRAYA RECLAMATION. deducting this amount, the profit shown was $262,200, and the dividend paid was

Hongkong Hotel Co., Limited, held on At the meeting of the shareholders of the no less than $27.50 per share. Then the

Saturday, reference was made by the Chair lean years set in and the dividend for 1887, paid in 1889, fell to $16.50. For the year

clamation fronting the Hotel. man to the slow progress made with the re- 1888. a dividend of $23 was paid and

"It is," said Mr. ÖSBORNE, "some two-and- property. $24,563 added to reserve fund; for 1889 the

"a-half years since this section was com- dividend was $18 and the addition to the reserve fund $3,951; for 1890 the dividend

"menced and although we have the as- surance ofGovernment that no unnecessary was the same and no addition was made to the reserve fund; for 1891 the

delay has occurred we cannot but feel that I dividend was $17) and again no addition

we have cause to be dissatisfied with the was made to the reserve fund, while for the

present state of affairs, the more so as "there does not appear to be any prospect of year 1892 the dividend fell to $16 and the

a definite date for its completion."

The Bum of $60,000 was withdrawn from the

Hotel Company is only one of many interests. reserve to meet loss in exchange on re-

adversely affected by the delay in pro- mittances to London, thus reducing the

ceeding with this section of the reclamation, reserve fund to its former figure of $1,000,000. Since then there has been no additions

and the most important consideration of all It is satisfactory to find that the Black-is the danger to the public health arising to the reserve fund until yesterday, burn Commercial Mission have been able from the present condition of affairs. The when the sum of $21,688 was carried not only to grasp these facts, but to Government, we believe, is in somewhat of to the fund from the profits for 1895. put them forcibly before their Chamber a quandary, and it might be well if a re- The dividends for the intervening years in their reports. Mr. JOHN WHITTAKER, presentative committee of business men were been for 1893, $14; 1894, 69.05; 1895, a member of the Blackburn Chamber appointed by his Excellency to consider

It will thus be seen that in ten years Committee, speaking at the annual din- and report upon the subject. From the dividends have fluctuated between $27.50 ner of the Oldham Chamber of Com- engineering point of view it is not considered and $9.05, and had it not been for the merce, although not at liberty to give the advisable to proceed with the building interest earned on the reserve fund it would contents of the reports received from the the sea wall until the foundation has finished have been impossible in some years to pay Commercial Mission, which were very settling, and when that will be no one, more than two or three dollars. The sun voluminous, said the key-ndte was undoubt possibly tell; it may be five years, or ten of prosperity is again shining on fire insuredly to the effect that if they wished to keep years, or twenty years. It would, however, ance business, rate-cutting having been the trade of China they must make goods suit be quite feasible to proceed with the work, suspended for the time being, but in view of able to the Chinese. "Hitherto," he added, but with the possible consequence that the experience of the past it would be wise

we had made goods such as we thought owing to continued sinking of the founda- for the various companies to take advantage" ought to be wanted instead of trying to tion the wall might become irregularin- of the good times to strengthen their reserves "find out what really was wanted. Some level and it might be necessary ultimate very materially and to be content with the

bundles of yarn made in China had been to add another course. That would not be pay f moderate dividends. The bona "received, and these would be forwarded to a very serious matter, but Mr. Coopi

the only person besides the "Oldham. If Oldham could make a similar professional man, declines, we hea

interests it is necessary to "article at a reasonable price, he believed with the work on his own

not desire extraordinarily" there was a large amount of trade to be until he is satisfied the dends with the risk of seeing them "done in that direction in China." There such a condition tha

few years by two thirds; are numerous articles, such as lastings,pleted will be perfect. The Gov desires is a steady return that he Spanish stripes, union cloths, llama braids, its part declines to assume the can depend upon with safety the permanent hosiery, glass, aniline dyes, and other goods of giving the Director of Publi

have

or no profit by that special transaction, manages to obtain an opening, and by and by develops a considerable trade in a new line. Or it may be a question of colour, and the British manufacturer will not depart from his old shades, with the result that the business presently leaves him. In metals and tools the British manufacturer, again, will not cater for the consumer; he considers that the con- sumer ought to take what is placed before him, and is mightily surprised later on to find that the trade has passed him by, foreign makers having shown more disposi- tion to consult the buyer's taste. In a vast variety of ways manufacturer has lost ground of late years, the British

chiefly because he has shown want of adaptability to requirements and because he has not, like his Teutonic competitor, striven to create new lines of business. He has been satisfied with the orders that came to him, and has not cared to put himself out of the way either to make new business or to make special effort to preserve his own trade.

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