March 19, 1898.]
tory matter for the shareholders, as we will then be right upon the lode without very much prospecting to do, and I hope in the course of another two weeks we shall have the satisfactory information that ore is being got from the lode, and that the mill is working full time upon lode ore. As you are aware, for many months we have had to be satisfied with what we got from the headings. The headings are of very low grade, and the results have been rather poor. However, it is very fortunate for the Company to have these headings, because they have enabled us to pay our way, returning a little more than working expenses, I may also mention that the lease is now being prepared which will give us fifty square miles of land, running north and south in the direction of the lode, and that all the privileges on the land adjacent to the Company's property, such as water rights and the cutting of timber, will be secured to us by the lease. Thus I have shown that the Government is dealing very Jiberally with the Company, at all events we have nearly everything we asked for from them, and I think the concession they have given us with regard to water and timber rights is a matter that will be very much appreciated by the Company, and will be of great value to us. If we had been shut in and limited to the area of land which we had received on lease it might have put us to great disadvantage if we had had to make arrange ments with the proprietors adjacent for the cutting of timber or right of way. All that has been secured to us, and will increase very much the value of our concession. I may also mention that Mr. Blamey has left the mine, and I believe he comes to Hongkong, and if he does so we will then be able to get any explana- tion he can give with regard to the Company, There is a letter here, received from Mr. Bailey, who is now in London trying to obtain money for the purpose of prospecting down at Punjom. So far, I believe, his efforts have not been successful, but I will read his last letter which may give us some explanation.
London, 4th February, 1898. Dear Sirs have laboured assiduously to secure capital to prospect, develop, and pur- chase 3 our property under the terms of your proposal to mo of 1st September, 1897, but, I regret to say, unsuccessfully.
The terms upon which it is offered, which I have submitted as you have given me, I cannot deal on.
I will say that the mining market both public and private, here and in the United States, is dull; there is no "boom or "fever" whatever, and, while there is something doing all the time, both the property and terms offered must be very attractive to secure support.
Your property is sufficiently good, I am as well satisfied as ever, to secure the attention and aid of capital upon satisfactory terms.
The question is, can we agree on terms if you are still disposed to negotiate with or through me?
How much money and time may be required to determine positively the value of any of the mines is of course uncertain and speculative, and hence whoever puts in this speculative money I find demand larger interests than formerly, when money went into mining a good deal on excitement and when there were not so many mines seeking money as to-day.
I am satisfied a deal may be carried through if you will reduce the interest to be retained by you to 25 per cent. in the property, or perhaps 33 per cent. and reduce the purchase price or increase time allowed for exploitation, or both.
If you are disposed to make a proposition on these lines sufficiently attractive to capital, I anticipate little difficulty in securing the neces- Bary funds to operate your property on a proper scale and from the extent of its value as rapidly as possible.
Believing your property to be a good mining speculation for large capital and having now spent considerable time and money in endea- vouring to handle it, I trust I may yet be able to get yourselves and capital to agree on terms to the mutual advantage of all concerned.
I expect to sail for America in a few days, but may return here soon. Will you be so kind as to advise me of your pleasure in duplicate to here and care of Palace Hotel, San Francisco. California, U.S.A.
CHINA OVERLAND TRADE REPORT.
If
you wish to feel you know me better, I beg to refer to the International Trust Co., Denver, Colo., U.S.A,
If I do not commence work on your property by March 1st, 1898,-which there is but the slightest possibility I will-do-I will on or im- mediately after that date write you formally to that effect, thinking you may prefer to have such a letter for your records.-Very truly yours,
L. L. BAILEY. The Punjom Mining Co. Ltd.
215
LUZON SUGAR Refining CO, LIMITED.
The following is the report for presentation to the shareholers at the sixteenth ordinary an- nual meeting, to be held at the offices of the general agents, at 12.30 p.m., on Wednesday, the 23rd March -
The general agents beg to submit to the shareholders their report on the Company's busi- ness with a statement of accounts to 31st De cember last.
In consequence of the slack demand in the Spanish market the refinery was not working during four months of the year, and through- out the remaining eight months the margin on sales of retined sugars left only a small profit.
The CHAIRMAN (resuming)-Gentlemen, this letter is perhaps not altogether satisfactory, but seeing the improved prospects we have had at the mine, I do not think we need be very much downcast about it. think our prospects are very much brighter than when we entered into negotiations with Mr. Bailey, and although Inclusive of $12,766.38 brought forward from perhaps the present is not the proper time to the year 1896, the amount, standing at credit of consider this letter of Mr. Bailey's, I may men-working account is $36,900.31, which the general tion that so far as my own opinion goes I do agents and Consulting Committee recommend not think it would be wise to offer the property should be appropriated as follows, viz. on more advantageous terms. (Hear hear.) I think our property is worth all we ask for it, and I have every reason to believe that before another month is over we shall find ourselves very much stronger and in a much more prosperous position This letter will, of course, be considered by the Board. and an answer sent to Mr. Bailey, but I think the opinion of the Board more or less coincides with my own, and that our answer will be on the lines I have just stated.
Mr. MURRAY BAIN-Might I ask what was the date on which the understanding practically expires, or may expire, at the option of the Company, with Mr. Bailey? It appears to me that the bulk of the shareholders will agree with what you have stated that they would now
failing any possibility of Mr. Bailey succeed- ing in his project-just as soon work the mine themselves, as leave it to anybody else. It may be remembered that at the meeting when the agreement was sanctioned by the shareholders I especially called attention to the limitations and conditions in the event of Mr. Bailey fail- ing, and these were that we were to resume at once, and lose no time.
The CHAIRMAN-The time fixed for Mr. Bailey to commence exploitation at the property was limited to the 1st March this year. That time has now expired, and probably by the next mail we shall receive a letter from Mr. Bailey withdrawing the offer, as he is not able to comply with the conditions entered into with the Company.
Mr. MURRAY BAIN-That is to say, we are now in a position to say we are finished with him.
The CHAIRMAN-We are practically finished with him, and I do not think
we need regret it, as our prospectsi are becoming very much better. We have now got sufficient money to develop the mine, and yet pay ex- penses, and with further development I believe we will have no difficulty in disposing of part or parcel of the property, if we wish to. The section, No. 15, of the agreement with Mr. Bailey, is as
follows: If the prospect- ing operations on the Company's concession have not been started within six months from this date (1st Sept., 1897) this agreement can be determined and declared null and void by giving you, in writing, one calendar month's notice to that effect at your address at Palace Hotel, San Francisco, California, United States
of America."
Mr. MURRAY BAIN-Notice has been given ? The CHAIRMAN-No, but it will be given Of immediately after the next Board meeting. course, the Board will have to meet and discuss this letter, and decide what future action shall be taken, but there is no doubt that the letter will be written immediately after the meeting.
There were CHAIRMAN thanked shareholders for their no further questions and the
attendance.
To apply to reduction of
property account... Dividend of $3 per share Carry forward to next ac-
count
$10,000.00 21,000.00
5,900.31
$36,900.31
CONSULTING COMMITTEE,
The Consulting Committee consists of Messrs. D. Gillies and J. H. Lewis, who offer themselves for re-election.
AUDITOR.
Arnold, who offers himself for re-election.
The accounts have been audited by Mr. Thomas
JARDINE, Matheson & Co., General Agents.
Hongkong, 10th March, 1898.
CAPITAL ACCOUNT, 31ST DECEMBER, 1897.
LIABILITIES.
Capital account Jardine, Matheson & Co.'s current account
(ash
Sundry creditors
Profit and loss account...
Property account Refined sugar
ASSETS.
Coal, charcoal, stores, mat bags, &o... Fire insurance
Hongkong & Shanghai Banking Corporation. Sundry debtors
700,000.00
88,359.12
1,597.48
7,799.05
36,900.31
$834,855.96
$ 0.
642,142.48
133,716.62
40,444.47
2,775.76
1,577.21 13,999.47
$334,655.96
Profit and Loss Account.
Dr.
To interest To remuneration to Consulting Committee To General Agents' and Manila Agents' com-
mission
To auditor's fee. To balance...
Cr.
By balance from last year By gain on sale of steam-launch " Precursor" By gain on working...
By exchange
0.
6,124.58 1,500.00 -
6,852.51
150.00
36,900.31
$51,527,40
12,766.38 38,222.52
505.26
83.24
$51,527.40
CHINA SUGAR REFINING CO., LIMITED.
The following is the report for presentation to the shareholders at the twentieth- Annual General Meeting, to be held at the Offices of the General Agents, at noon, on Wednesday, 23rd March :--
The General Agents beg to submit to the shareholders their report on the Company's business for the year 1897, with a statement of accounts to 31st December last.
A correspondent writes to the Siam Free Press :-"You alluded the other day to a case Inclusive of $2,221.08 brought forward from of iron pans having been received by a local firm the year 1896, the nett gain on working amounts instead of boots and shoes. But what do yon to $508,753.31, of which $80,000 was paid as say to a case of skates that was sent a few interim dividend on the 30th August last. years ago to a Singapore firm on spec? And In view of the satisfactory results of the what was still more strange, the skates were year's working and of the desirability of mai actually sold at Singapore to u speculative Captaining as far as possible uniform dividends, tain who took them to China and resold them at a good profit.”
the General Agents and Consulting Committee recommend the formation of an Equilization of
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Private notes are available after approval.