Page
Augtist 18, 1897.)
CHINA OVERLAND TRADE REPORT.
future. (Applause). In conclusion, I have great pleasure in recording our high appre- ciation of the able manner in which we have been served by the Chief Manager and the staff generally during the half year. (Ap- plause.) It is to their efforts we are prin- cipally indebted for the successful working of the Bank during a period which called for very careful steering. Our thanks are specially due to our Chief Manager,—(applause)—to whose foresight and ability a very considerable portion of our success is due. I have no doubt that shareholders, not only here but everywhere, will cordially concur in what I have just stated. (Applause.) Before moving the adoption of the report and passing of the accounts, I shall be glad to answer to the best of my ability any questions shareholders may wish to ask.
There being no questions, the CHAIRMAN moved the adoption of the report and passing of accounts.
Mr. J. H. LEWIS-Mr. Chairman and gen. tlemen, 1 am sure that we all have listened to the remarks of the Chairman with much interest. (Applause.) The report before us is to my mind a highly satisfactory one, and remembering what we have just been told regarding our sterling investments, funds in Japan, and capital in India, I think we may safely congratulate ourselves in being in a remarkably strong position. The strength of it, as revealed by the very fall statement which you have just heard, should have the effect of removing any apprehension which may have arisen in the minds of those who feared the fall in silver might adversely affect our interests. The Chairman has so clearly and fully ex- plained the position of the Bank that it is unnecessary for me to refer to it beyond saying that all shareholders must agree with me that seeing our reserve fund so steadily mount- ing up is a sure indication that in spite of flue tuations in exchange and competition we are still able to hold our own, and that we may con- confidently look forward to our interests being as ably guarded in the future as they have been in the past. I have, therefore, much pleasure, gentlemen, in seconding the adoption of the re- port and statement of accounts. (Applause).
depreciating value of the dollar. Our capital consists of ten millions of dollars. Only quite recently the sterling value of same at exchange of 2/6d was £1,250,000, still more recently at exchange of 2., it represented £1,000,000, and within the last few weeks it has gone under that amount, and at 1/104d, the lowest point touched, it represents £927,083. To make up for the shrinkage in the sterling value of our capital I have great pleasure in stating that the value of our sterling securities in London exceeds by £95,890 the amount at which they stood in our books on the 30th of June last, (applause) - not taking into consideration the difference in exchange on the £250,000 Consols standing in our books, as you will observe from the report, at 95 and Ex. 2/6d. as compared with 1/113d on the 30th of June. (Applause.) You are aware that a large portion of our business is with India where we have to deal with a protected and a contracted currency. Before the closing of the mints in June, 1893, we could count upon an out-turn of 221 for any dollars shipped to India for conversion into rupees; said rate was looked upon as a minimum. Within the last few days the rate touched Rs. 1444 for $100, a very heavy margin for the Indian export trade to the Far East to contend with. Rs. 50 lacs of the Bank's capital are devoted to the Indian, Ceylon, and Burmah agencies. The capital stands at an exchange of Rs. 200 for $100, so that if it were with drawn at an exchange of Rs. 150- for $100 we would net the round sum of Rs. 124 lacs. (Applause.) Yon will therefore see that with our rupee, as also with our sterling commit- ments the Bank is in a very fine position. From the 1st of October next, Japan will be on a gold basis, and silver will only be used as a subsidiary currency. In thus changing their standard a sturdy prop is taken from silver When their decision became known a sharp drop took place which has continued with more or less regularity ever since. Under Japan's new currency laws we can look for a steady exchange there, and should silver either decline still further or remain about present price we will realize a very handsome profit on the large amount of the Bank's funds in that country; Therefore from many points of view the recent heavy depreciation in the price of silver cannot be looked upon as an unmixed evil to the Hongkong and Shanghai Bank. (Applause.) At our last meeting reference was made to the ex- pectation of an increasing trade in the Far East, and although development has not yet come with giant strides, signs are not wanting that a more enlightened policy in the treatment of foreign trade by the rulers of the vast Chinese Empire will conduce towards this desirable result. We have in the opening of ports on the West River and facilities to trade there the first fruits of this policy, which is receiving more than encouragement from our official re- presentatives. The depreciation in silver has placed surrounding countries which are now on a gold basis at a disadvantage in their trade with China, and will unquestionably give à further impetus to manufacturing enterprise in China and Hongkong, so that we may see consider able changes in the current of trade in the not very distant future, but whatever changes may -be in store for us it will be the earnest endea- vour of this Bank to be always ready to meet them with benefit, not only to our constituents, but also to our shareholders. (Applause.) The profits for the half year admit of paying the usual dividend of £1 58. per share, placing five lacs to reserve, and carrying forward about three lacs. I need hardly remind you that the lower exchange goes the more onerous the task will be of maintaining a sterling dividend of £15 per share; however, without being over sanguine I wish to express our con- fidence in being able to do so. Dur ing the late prosperous years we have inade our accounts very comfortable, and have still unappropriated a considerable amount of the profits realized on the negotiations of the loans we recently participated in. After transferring the above five lacs our reserve fund will stand at $7,000,000 and it is our in- tention to add to this as much as possible at
The CHAIRMAN-On behalf of the Directors, the end of each half year. So that our position the Chief Manager and staff, I beg to thank is an excellent one and with the steady sup-you for your vote of thanks. We shall all con- port of our shareholders and constituents we tinue to do our best for the future welfare of have every reason to look confidently to the | the Bank. (Applause.)
Carried.
Mr. HENRY HUMPHREYS proposed the con- firmation of Messrs. David Gubbay, A. J. Ray mond, Gerald Slade, and G. D. Böning as Directors.
Mr. G. STEWART seconded. Carried.
The CHAIRMAN-That is all the business, gentlemen. I thank you for your attendance. Dividend warrants will be ready on Monday. (Applause.)
149
HONGKONG AND WHAMPOA
DOCK CO., LIMITED.
The following is the report of the Board of Directors of the Hongkong & Whampoa Dock Co., Limited, to the ordinary half-yearly meet- ing of shareholders to be held at the offices of the Company on Monday, 23rd August:
To the shareholders of the Hongkong and Whampoa Dock Company, Limited..
Gentlemen, The directors have now to sub- mit to you their report, with a statement of accounts for the half-year ended 30th June last.
The total receipts for the six months are $1,255,248.30, and the net profit, after paying interest dne and all charges, amount to
..$325,345.88
to which has to be added the balance
brought forward from last account... 104,104.71 $429,450,59
and from this have to be deducted-
Directors' Fees... Anditors' Fees
.$7,000.00 500.00
7,500.00
leaving available for appropriation $421,950,59 The directors recommend that a dividend for the half-year of 8% or $125,000 and a bouns of
4% or $62,500 aggregating $187,500 be paid to
contributing shareholders, that $5,427.08 be the shareholders, and a bonus of $20,000 to
written from the value of the Kowloon Docks
reconstruction of No. 1 slip passed direct to debit of Revenue Account), $7,599.47 from Cosmopolitan Docks, and $5,633.12 from the steam "launches, that $100,000 be passed to
($20,572 paid during 6 months on account of
Reserve Fund, and the balance, $95,790.92, be
carried to new account.
Ship No. 1 has been put in thorough good been renewed. The work is nearly completed order, the whole of the part under water having
and the cost will be within the sum estimated at our last meeting.
has been introduced into the saw-mill, joiner's During the six months the electric light shop, and boat-builder's shed, and a new process of galvanizing by electric deposit, both of which have given very great satisfaction.
The Company is in treaty with the Govern- ment for a further extension of land on the North-West boundary, Hung Hom, and a reso- lution to enable the Board to acquire this land on behalf of the Company will be submitted at this meeting.
ST. C. MICHAELSEN, Chairman.
Hongkong, 11th August, 1897.
CAPITAL ACCOUNT, JANUARY TO JUNE, 1897.
Mr. D. GILLIES-Gentlemen, I have great 30th June, 1897. Aberdeen.
statement
ASSETS.
To value of Aberdeen Docks, as per last
$ C.
1,118,475.95
Kowloon.
per last statement. Less amount since written off
To amount paid purchase money Hunghom inland lots Nos. 171 and 172
To balance of contract paid Chang Ying Cheong for excavation To amount paid on account for removal of hill on the new extension to marine lot No. 27, Kowloon
pleasure in expressing a few words of satis faction at the very excellent report which has been presented to shareholders and in com- plimenting the Board of Directors on this To value of Kowloon Docks, as occasion for the very skilful and able manner in which they have conducted the business of the Bank. For although we have had to contend against much keen competition and rivalry, yet I feel justified in stating that at no former period of our history has the Bank over rested ou a more solid foundation. At any rate I am sure the position is such as must commend itself to every shareholder who holds the welfare of the Bank above either private or personal con- siderations. Our prosperity during the past six months, notwithstanding the great un- certainty that has attended most commercial enterprises and the
very great anxiety and difficulty that must have been ex- perienced in following the right course with regard to silver, indicates that our Board of Directors, our very able Manager and his staff-(applause)-have all exerted their talents and their zeal to the utmost in order to place before us such a very creditable balance sheet. (Applause). As a proof of our confidence I most cordially ask you to accord a very hearty vote of thanks to those gentlemen, the Board of Directors, our able Manager, and the staff. (Applause),
To amount paid during six months on account of 18 new houses...
To amount paid for the erection of new work-shope and fitting up new galvani ing plant, (electric process)
To amount paid for new electric lighting installation and fit- ting up same in sawmill, joiner's shop and boat shed.. To amount paid on account of new chimney for engine and boiler shops
To cost of new machines added during the six months.....
To value of Cosmopolitan Dock, Cosmopolitan Dock,
43,175.95
1,075,000.00
5,000.00
450.00
2,058.30
15,373.15
13,737.00
6,392.63
$ 0.
100,000.00
2,100.00
10,318.00
· 1,130,427.08
as per last statement
267,779.68 Less amount since written off* 17,779.68
250,000,00
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