Nevember 24, 1897.]
THE
INTERNATIONAL
CHINA OVERLAND TRADE REPORT.
COTTON | future. If any shareholder has any question to ask, I shall be very glad to answer him to the bets of my ability. (Applause.)
MANUFACTURING CO., LIMITED.
The third ordinary general meeting of the International Cotton Manufacturing Company, Limited, was held at the Hend Office of the Company, Shanghai on the 4th November, Mr. E. A. Probst, Chairman of the Directors, pre- sided. There were also present Messrs. David Brand, James Jones, Edward Davis, Chew Pausan, and Chew Shing-ching (Directors), H. P. Wilkinson (Legal Adviser), G. W. Noel, A. W. Danforth, C. H. Noronha, Lin Chee, Ravnor, Midwood, A. Cushny, George, I. W. Turner, H. J. Limby, G. Pilkington, J. M. Young, W. H. Talbot, etc.
The Chairman, after the notice convening the meeting had been read, said:-Gentlemen, the report and accounts having been in your hauds for some days, with your permission, we will take them as read. With regard to the accounts, I will first go through the profit and loss account and make any remarks upon them which I may deem necessary or requiring any explanation. The first are the directors' fees Tls. 5,250 and anditors' fees Tls. 500, all of which are in accordance with the terms of the agreement and of the Articles of Association- leaving a balance of Tls. 30.111.69. On the credit side we have rent of Chinese houses Tls. 905,91. This represents the rent and seems a very small income from our pro- perty, which stands in balance sheet
the
as Tls. 74,153.57. This, of course. is a quite inadequate return, but the reason for it is that the houses have not long been tenanted. This property is proving a most valuable acquisition to the Company, for it enables us to house our operatives, and have them on our own premises. The houses are now fully tenanted, and we may estimate that the rents, which are advisedly very moderate, will never- theless give a good return on the capital outlay. Transfer fees are Tls. 192.70; Premium on shares Tls. 765. This arises from a premium on a sale of shares, not applied for, that we subsequently sold at a premium. Interest ac. count shows Tls. 568.52. This arises after hav- ing apportioned interest appertaining to work ing account, which leaves a balance of 568.52 to credit of net profits, with balance of working account Tls. 30,111.69. Coming to the liabilities and assets. There are 7.838 fully paid-up shares of Tls. 100 ench, Tls. 783,800. We have an overdraft at the bankers of Tls. 367,360.10. I will now deal with the suspense account, which is Tls. 45,452.95, and this item requires some explanation. Of the amount of Tis. 45.452.95 the sum of Tls. 35,000 appertains to items due on capital and expenditure account, namely. building, machinery which will be written off or has been with off already, the balance of some Tls. 10,000 has already been debited to working account in September, but was only paid in October. The sum of Tls. 5,277.21 is due to the American Trading Company for current expenses, etc. The balance of profit and loss account therefore is Tls. 30,111.90. The assets show that build- ings and land improvements stand at Tls. 211,920.03; plant and machinery, 678,827.49; property account, that is, Chinese honess and land, Tls. 74,153,57. This I have already dealt with. Sundry appliances, Tls. 6,711.29, is for plaut of a less durable nature, aud provision will have to be made to replace it from time to time. Furniture account I need not comment upon. The engine supplies account was Tls. 2,000, electric launch Tls. 40.30. The balance now standing to the debit of preliminary expenses, legal fees, etc., Tls. 4.129.87, we pro- pose to write off as we go along, probably in the course of this year. The fire insurance un- expired is Tls. 1,175.55, the value of the policies to the end of September. The stock of cotton is set down at Tls. 177,668.-18, and un- delivered yarn-sold, but not delivered--is Tls. 61,265. I have now dealt with the accounts, which show a net profit on the working up to date of Tls. 30,111.69, from which we propose to ask you to sanction the payment of a dividend of 34 per cent., absorbing Tis. 27,433.00, and to The financial carry forward Tls. 2,677.69.
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Mr. Noel With reference to that balance of
the working account, can you give the quantity of the yarn purchased and the expense of the
cotton.
The Chairman-I think, Mr. Noel, the Direc. tors have come to the conclusion that in showing the result of the working account they considered it inadvisable to put in any details. I can tell you our competitors in Japan, India, and else- where would be very glad to have these details given, but we think it inadvisable in the inte- rests of shareholders to publish that information. But while we cannot give the reasons now we shall be very happy to give details to any share- holder if he will apply to the office.
Mr. Noel Thank yon.
The Chairman-I will now propose, "That the Report and Accounts as now laid before the meeting be accepted and passed."
Mr. Brand-I beg to second that. Carried.
The Chairman proposed-" That a dividend at the rate of 34 per cent. for the year ending September, 1897, be paid to Shareholders.”
Mr. Davis seconded. Carried.
Mr. Noel moved "That Mr. E. A. Probst and Mr. E. Davis be re-elected directors."
J. M. Young seconded, · Carried.
moved" That
Messrs.
Mr. Danforth Rufus Eastlack and Thomas Wood be re-elected Auditors."
Mr. Midwood seconded. Carried.
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405
adle to place our debentures, not perhaps all at once, but at any rate by degrees. If the capital d es not exceed 1ls. >50,000, and we can issue d bentures at 6 per cent., I think we shall be doing exceedingly well for the Company. (Hear, hear.)
Mr. Noronha.-What is the rate of interest of the overdraft ?
The Chairman.-We are paying the usual rate, 6 per cent. Well, gentlemen, if no one That has anything else to say I will propose:—“* the Directors be and they are hereby authorised to create and issue debentures providing for the payment of the principal sums not exceeding Three-hundred thousand Taels Shanghai Sycee silver with interest at a rate not exceeding 6 per cent. per annum, such débentures to be in such form and to be secured in such manner and to issued to such persons and on such terms as the Directors think expedient."
Mr. D. Brand seconded. Carried.
The Chairman.-That concludes the business of the meeting. We propose to close our accounts half yearly, and I hope we shall be able to declare an interim dividend (Applause). I would like to state before we depart the very high appreciation which the Directors have had for the management of the mill under the director, Mr. James Jones, and for the good order and discipline of the mill staff (Applause). Dividend warrants will be issued to-morrow.
Mr. Jones-I thank you on behalf of the Mill staff and I also thank you for the remarks re- lating to myself and the kind manner in which you have expressed your appreciation of my services.-China Gazette.
The following is the report presented to the meeting:-
The Directors have the pleasure of submitting the audited Accounts for the year ending 30th September. 1897.
The Mill commenced working on the 17th of January with 2,000 Spindles, which have gradu- ally been augmented to the full capacity of 40,000 Spindles which are now erected and com- plete, and of which 32,000 Spindles have been in full work, day and night, for the past two months.
The Engines, Machinery and Buildings are now completed, and together with the Sprinkler Installation and Electric Lighting give every satisfaction.
The Net Profit on the working up to date amounts to Tls. 39,111,69, from which the Dir- ectors recommend a Dividend of 31 per cent. for the year ending 30th September, 1897, absorbing Tls. 27,433.00, and to carry forward
Tls. 2,678.69.
The Chairman-Gentlemen, I now come to the question of our finances. You will see from the balance sheet that we have an overdraft at our bankers, which is a rather large one, and your directors have come to the conclusion that it would be advisable to place our finances ou a more secure footing. The position is this. Our assets represent on capital expenditure, buildings. etc., Tls. 211.920; plant and machinery. Tls. 678.827; property, etc.. Tls 74.153; sundry appliances, Tls. 6,711; furniture, etc., Ts. 3.535; making in all Tls. 975,145, On account of machinery we have still drafts to meet t'the amount of Tls. 25.000, making a total of Tls, 1,000,145; cost of additional 5,00 spindles and alterations Tis. 50,000, making our total outlay Tls. 1,050,000, against which we have at pre- sent a share issue of only Tls. 783,800, leaving a deficit of Tls. 264,200." After due considertion of the subject we find that we can, with but slight alteration to our buildings and slight cost, accommodate another 5,000 spindles, bringing Directors, Mr. Chok Siau Yin has definitely our full working power up to 45,000. There'ired from the Board, Mr. E. A. Probst advantage of doing this is obvious, inasmuch as
retires by rotation, and offers himself for re- we shall be distributing our fixed charges over election. Mr. J. F. Seaman having gone home a larger outturn. We have had this scheme in in July last, Mr. Edward Davis,was invited to contemplation for some time past, but have take a seat on the Board to fill the vacancy, deferred its execution on the principle of wishing and his appointment requires confirmation. "to learn to walk before trying to rua;
" but we
Auditors. Mr. C. W. Wrightson having consider we are quite safe now in recommending resigned during August, the Directors ap- this addition to the mill, which with your appointed Mr. Thomas Wood to take his place, Tis.proval we will undertake at once. Without allowing for working capital the directors have decided to issne the 662 unallotted shares of the Company, which will bring our capital issue up to Tis. 850,000. We shall invite the public by tender for these shares and the Directors will reserve to themselves the right of accepting or refusing the prices offered for the shares. We find that the proportion would be about 12 to 1 and we thought it would be very difficult to divide the shares thus, as some of the share- holders, say those who hold fire shares. would not be able to get a share; but by placin them on the market we hope we shall do better. Furthermore we propose to ask you to sanction the issue of debentures-and I have a resolution to bring before you to that effect-to the extent of Tls. 300,000, the security offered to be the first charge upon the laud, buildings, and machinery of the Company. By our resolution we ask for a free hand to be granted us, for as time goes on we may not find it necessary to issue more than Tls. 200,000 debentures, if as much, and yon may rest assured we will not burden the Company with more than can help. With regard to interest, we have fixed it at the rate of 6 per cent. or not to exceed 6 per cent, and I think we are not over sanguine when I say that we shall be
part of our programme I propose to deal with after the adoption of the accounts and I would now only say that considering the short space of time the mill has been in full swing we con sider the report and accounts show a very satis factory and most promising outlook for the
we
and the Accounts have been audited by Mr. Rufus Eastlack and Mr. Thomas Wood; both gentlemen offer themselves for re-election.
The directors find that with slight alterations the present buildings can be made to accommo. date a further 5,000 Spindles. This will involve only a small additional outlay. To provide for this, and the 5.000 Spindles, the Directors are considering the best means of raising the necessary funds, and this will form the subject of a Special Resolution.
THE AMERICAN TRADING Co., JAS. JONES, Agent, General Managers. Shanghai, 28th October, 1897.
PROFIT AND Loss Account to 30TH SEPTEMBER, 1897. Dr.
To directors' fees To auditors' fees....... To General Agents' commission To balance
By rent on Chinese 'houses By transfer fees
By premium on shares. By interest account
Tis.
5,250.00
500.00
4,250.00
30,111,69
TIs 40,111.69
Cr,
Tls
904.91
192.70
765.00
568.52
37,680.56
By balance of working account
Tis, 40,111.69
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