214
Shanghai Hongkong
183,243 86,992 148,796 14,613 9,146 227
Rents...
Interest
*
56,130
Profit on sales etc.
17,672
Commissions
480
Transfer fees
149
257,674
259,774
Dividend
172,666
200,000
Interest
77,400
Directors, etc. Balance
4,267
47,977 10,500
3,341
257,674
1,297
259,774
THE HONGKONG WEEKLY PRESS AND
The Shanghai Co. borrows money at 5.6 per cent. and invests it on mortgage at 8.2 per cent. and in property at 6.6 per cent, while the Hongkong Co. borrows money at 5.5 per cent. and invests it on mortgage at 7.5 per cent., the properties in which their capital is invested bringing in only 3.1 per cent., and yet there was a speaker at the last meeting who suggested they should clear out of mortgages which bring in 7.5 per cent. and put the money into property which brings in only 3.1 per cent. One bad feature in both companies is that last year neither earned the money they paid away in dividends; they had to consume, the Shanghai Co. $14,331 and the Hongkong Co. $13,316, from profit on sales of property to make up the amounts required for dividend, and it is not a bright look out if they have to depend upon such a source of income to maintain future dividends. The Shanghai Co. made, last year, 9 per cent. and paid 10 per cent. on present capital, and the chairman at the meeting said 11 per cent. was in sight for 1898, but I do not see where it is to come from unless they appropriate profits from sales of land. They may have $176,000 of earnings and $6,000 of balances brought forward, but $182,000 would give only 10 per cent. on the capital. The Hong kong Co. paid, last year, 5.3 per cent. and made only 5 per cent., but should pay more for this year as they carry forward a big undivided balance. Taking shares at their present values, Shanghai Lands Tls. 92 and Hongkong Lands $73, dividends make them both about the same value as an investment, a 5.4 or 5.5 per cent. stock, and people should be able to do better than that with their money. There seems brighter pro- mise for Hongkong Lands, if only the Company was decently managed, than there is for Shanghai Lands, which, for the time being at least, have seen their best, as shareholders cannot, or rather should not, expect the Company every year to make profits from the turnover of land. What both Companies want is additional capital. The Shanghai Co. has debentures running at 6, 54, and 5 per cent. interest. It has a reserve of Tls-200,000, mainly created from premiums on new issues. Its shares are Tls 50 each and it seems to have a funny number, 25,931, to pro- "duce its capital of Tls 1,296,550. It should in- crease to 50,000 shares by issuing 24,069 new ones at Tls 75, which would bring in Tls 60,172.5.0 premium, and this, with the reserve of Tls 200,000, would allow of the shares being allotted at Tls 65 each. The reserve fund would disappear, and very properly, because it has been created by shareholders and it should revert to them by being capitalized. The 24,069 new shares at Tls 65 would bring in Tis 1,504,445, with which they could redeem the 6 per cent. debentures and have Tls 800,000 in hand to invest on mortgage. The Hongkong Co. should capitalize ita reserve and call up the outstanding $25 per share, which would produce $1,250,000. With it they could pay off their debt of $875,000 and have $375,000 in hand to invest on mortgage, or, as the rate, 5 per cent. at which they borrow money, is not onerous, they could retain the whole, bring it to Shanghai, and compete against the Shanghai Co. for 8.2 per cent. mortgages. Until the reserve is capitalized shareholders in the Hongkong Co. are always liable to be shot at and have their dividends crippled by the managing Directors, I have not a copy of the Articles of Association, but, so far as memory serves, the managing Directors can claim commission of 5 per cent. on profits when the dividend exceeds 7 per cent. I suppose they have really been entitled to that commission for a number of years past, as they might say, and possibly do say, they pay dividends of 8 per cent., though it is actually
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only 5 per cent. on the paid value of a share. However, some one might look np the Articles of Association and see how the clause actually
runs.
NATIONAL BANK OF
CHINA, LIMITED.
The seventh ordinary annual general meeting of shareholders in the National Bank of China, Limited, was held on Saturday last in the Head Office of the Company. Mr. D. Gillies presided and there were also present-Messrs. J. T. Lauts, Chow Tung Shang, Chan Kit Sang, and Hoi Chuen (Directors), V. H. Deacon (Solicitor), A. Finke, E. Bischoff, W. G. Winterburn, E. Terry, E. S. Kelly, G. H. Potts, A. Moir, Van Neirop, J. H. Cox, Fung Wa Chuen, G. W. F. Playfair (Manager), etc., etc.
The MANAGER read the notice convening the meeting.
[March 19, 1898.
I assure you it is with deep regret that the Directors and the Chief Manager appear before you on this occasion unable to pay such dividends as we have paid in former years, even little as they were. However, we hope that in the future we will be able to do a little better, and that when we meet next year we shall have a more substantial and creditable re- port to submit to you. There is only one little matter that I would like to bring to your notice, and that is in regard to the mem- bers of the Board. I might mention that it is not my intention to ask you to nominate or elect any additional members to the Board, but merely to ascertain the opinion of shareholders as to whether it would be advisable or not to strengthen the Board by the addition of another European member. At present we have three Chinese members on the Board, and two Enr. opeans, and I think it would strengthen our hands very much indeed if we bad the advice and assistance of another European. However, that is a matter that will be left for you to decide, and I shall be very glad if you will show your approval of it at this meeting,
Mr. WINTERBURN-Is there another $2,000 - salary with a further addition to the Board P
The CHAIRMAN-In reply to Mr. Winter- burn's question, I may state the Articles of Association provide for a remuneration for each of the Directors of $2,000. However, as the business of the Bank has not been very prosperous lately, the Directors will be willing to divide the amount of $5,000 amongst six. instead of amongst five, so that the addition of another member to the Board would not in any way increase the working expenses of the Bank.
Mr. CHUN HING-The Bank has been started for several years, and you have been having five Directors for some time. I suggest that the same number of Directors be retained without any addition.
The CHAIRMAN-Gentlemen, as you will bave seen from the report (which, with your permission, we will take as read, together with the accompanying accounts) we are not in a position to give you a dividend on this occasion. As you are no doubt aware, there has been great tightness of money during the past half-year, and it says a great deal for traders and financial institutions that such continued tightness was tided over without disaster. To some institu- tions the period of tightness was a period of extra profit, but for us, unfortunately, it has not been so; this, combined with violent fluctuations in exchange, which made operations extremely difficult, accounts for the unsatis factory result of last year's working. Our funds are mostly employed in exchange operations, our advances being only a little over $900,000. The item “ Government securities belonging to the Bank has since been reduced by nearly half. Provision has been duly made in the past year's account for bad debts. Perhaps it is as
The CHAIRMAN-I would like to have an well to mention here, as we see we have omitted to state it in the balance sheet, that the total expression of opinion. The increase in the capital is represented by 40,453 shares. The number of Directors has been opposed by Mr. greatest economy will be exercised in future in Chun Hing. Still, although I would be very order to save expenses, which are rather heavy glad to accept what has been stated by Mr. compared to the capital in hand. We would Chun Hing, I think we ought to go a little remind you that in our report for 30th June, further and get the opinion of the gentlemen 1893, we stated as follows Your Directors who are present. Of course, there is no neces- have forfeited certain shares on which Le callssity for making it a motion, and secouding it. have not been paid (including those belonging All that I want is merely an expression of to Russell & Co.), and the amount paid thereon opinion, so I will put Mr. Chun Hing's proposal that no increase be made in the number of and now forfeited is all held in a special sus- pense account to be dealt with as they may see
members of the Hongkong Board. fit." Such amounts we subsequently utilized Eighteen voted for the motion, and seven
The motion was therefore carried, (as stated in our report) to wipe out bad debts, against it.
The CHAIRMAN-I am very sorry that for principally incurred here at the starting of the Bank and in Yokohama and Shanghai. Several the present the number of members on the London shareholders, however, having sug. Hongkong Board will have to remain as before. gested that such appropriations should be Mr. Cox thought the Chinese did not quite mentioned at the general meeting, we now
understand. do so. Eminent professional advisors in London recommend the scheme set before you in the report, ie, that the balance at credit of the forfeited shares account, together with the balance at credit of reserve fund, in all $109,496.64, should be amalgamated in a new account called capital reserve fund, and such fund will be brought up to $175,500 out of future earnings. Before proposing that the report and accounts be adopted I would simply state that the Bank is in a perfectly sound con dition. I shall be very glad to answer any questions that may be put to me by share- holders.
EL
No questions being asked, the CHAIRMAN proposed the adoption of the report and passing of the accounts.
Mr. SI FUNG CHANG seconded. Carried.
Mr. Wo YIT TANG proposed that Mr. Gillies and Mr. Chow Tung Shang be elected to the Head Office Board of Directors, and that the Right. Hon. C. B. Stuart Wortley, Q.C., M.P., be elected to the London Committee.
Mr. NG CHIT ME seconded. Carried.
Mr. WAI KI SANG proposed that Messrs. J. H. Cox and W. H. Potts be elected auditors for the Head Office, and Messrs. Deloitte, Dever, Griffith and Co. to the London office. Mr. CHONG WAI HING seconded, Carried.
The CHAIRMAN-Gentlemen, this is about all the business we have to put before you, and
1
Mr. FUNG WA CHUEN, who interpreted the remarks during the meeting, said they quite. understood.
The CHAIRMAN thanked the shareholders for their attendance.
PUNJOM MINING CO., LIMITED.
The first ordinary general meeting of the newly formed Punjom Mining Company, Limited, was held in the Company's Offices on Monday, at noon. Mr. D. Gillies presided, and there were also present-Messrs. E. Burnie, W. R. Loxley (Directors), J. B. Duncan (Secretary), T. Howard, G. Murray Bain, H. Wicking, M. B. Polishwalla, J. M. E. Machado, E. W. Terry, D. W. Craddock, Mahomed, S. B. Bbabha, Yap Ching Ho, and F. E. Ellis.
The SECRETARY read the notice convening the meeting.
The CHAIRMAN-Gentlemen, as notified by the Secretary, this meeting has been called in accordance with the Companies Ordin- ance No. 1, of 1887. There is no business to be done at this meeting, but while you are here I may as well state for your information that the last letters received from the mine continue to give very satisfactory accounts of the progress made on the lode. of opinion Mr. Philipps, the manager, is 1
found to be a that the main chute of ore will
south lode. continuation of the north and son That was his opinion on the 21st February If this is the case, it should be a very satisfac-
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