October 1, 1898.]
CHINA OVERLAND TRADE REPORT.
lets. Stocks sold and unsold one lac Hongkong | affects holders, both foreigners and Chinese, -half Shanghai-Urgency retarding shipments extreme."
centres.
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371
transpires, the probability is the markets will further get into demoralization, to the serious detriment of the yarn trade in India and China. The urgency of the present position is evid- eut here from the figures given above, as also from the accumulations of Japanese and local threads in the principal markets, and the neces- sity of short time has been recognized both by Japanese and China mills, and we trust it will also be recognized by the Bombay spinnings.
We propose your sending the following tele- gram-
Millowners' Association,
Bombay.
Chinese merchants unitedly urge necessity mills working short-time. Rebellion Kwangsi, Kwangtung seriously inferring closing outlets. Stocks sold ausold oue lao Hongkong - half Shanghai. Urgency retarding shipments ex- treme."
We are, dear sir, yours faithfully Hongkong, 8th September 1898.
DOUGLAS STEAMSHIP COMPANY, LIMITED.
The ordinary general meeting of shareholders in the above company was held at the Company's offices ou 27th øpt. at noon for the purpose of re. ceiving the report of the general managers, to- gether with a statement of accounts to June 30th. Mr. J. H. Lewis presided. and there were also present the Hon. J. J. Bell-Irving, D. Gubbay, C. H. Thompson (Consulting Com mittee),. W. H. Parfitt, C. A. Tomes, J. H. Babington, W. H. Gaskell, E. Georg, W. 8. Bailey, J. H. Cox, W. Parlane, J. M. Michael, T. Arnold, A. V. Apcar, Morris, Chan Tong, and Chan Sni.
Mr. PARFITT read the notice convening the the in eting.
As
and certainly lends a justification to the urgency of the Chinese representation, but, unfor- Your reply to this message was duly to hand tunately, the remedy advocated does not cover on the 9th instant reading:-" Committee will present and impending difficulties of a per- consider question of short time provided China manent character, and consequently puts it out of and Japan milla co-operate-Millowners." the pale of feasible practicability. I am sure Believe me, I cannot sufficiently express to the Chinese merchants will not fail to see and you the thanks of the Chinese merchants for so scan the inevitable as the competition progresses. promptly roicing to them the views of your It may be said that the remedy for the present Association at the present momentous urgency. state of the trade must come to a greater extent Personally, considering the present position from within. The exercise of economy recom- of the yarn industry in India, Japan, and in mended in working is very desirable, but it can China, I am not much in accord with the views hardly change the relative positions of the of the Chinese merchants as to the feasibility trade and industry in India, Japau, and China, of the remedy they advocate to relieve the pre- as, given the mills, the same principle of economy sent congestion. The figures that they set is not past recognition or enforcement by any forth us to sold and unsold stocks in this market of the competitors. The Bombay mills, having and in Shanghai are beyond dispute. They are a central location in the midst of cotton pro- verifiable by various tests and comparisons, but ducing districts, have an immense advantage the one test of heavy accumulations in the go- and superiority over Japan and China. The downs of importers is of a very crucial nature, latter can hardly come up in the point and in and it goes to show in a very concrete manner the extent of having suitable raw material and beyond the shadow of a doubt that the pre-ready at hand, and however much they sent accumulations are unprecedentedly heavy, may compete, they have to rely for the and that they have very momentous bearing it chief portion of their raw material for taken in conjunction with importations of the manufacturing coarser counts on India and outturns of the mills of Japan and those of the India alone, and the one feature that is not North. That the over-loading is at the present to be neglected is, that, whatever the extent of moment a result of the rebellion in the two the competition, the opposition from the mills Kwangs is also certain. It is not only that the of India, possessing the indicated natural and markets of these two large consuming provinces permanent advantage, can hardly be extin- bare been temporarily shut off, at other larger guished. In this counection the margin of markets, for instance, those of the dis.ant pro difference between importations in the Far vince of Yunan, have also been shut off, inasmuch East of the raw material and the manufactured as Kwangsi being the high-road for conveyance stuff is a vital factor. If the margin of dif- of commodities to Yunan, that province though ference is a small quantity, the superiority aud not at present affected with rebellion, has, by natural advantage of the proximity of the raw the very closure of Kwangsi, been likewise material are in a great measure minimized. barred against supplies from the distributing The Japanese mills, seeing the nearness of their But the closure of these important parity with India on that score, iustituted more. outlets cannot but be temporary in its duration. ments in their country for the abolition of im. The CHAIRMAN said Gentlemen, the The latest advices received by the Chinese mer- port duty on cotton and export duty on yarn. report and accounts have been in your chants themselves from the interior of the Haring succeeded the ein the competition has hands for some days, and with your ap- country lend a hope that the suppression of the assumed a formidable shape for the Indiau mills.proval I propose to take them as read. rebellion is not far distant now, and that it will Lancashire acted in an analogous manner not be very long before a clear line can be au- before. To support and maintain her in nounced. If the cause of the rebellion as to dustry it had been one long struggle with heavy stocks stood alone, one may even look for her to get the Indian manufacturing indus- a reaction in the matter of demand, and to some
try fettered, Is it not incumbent on the extent in the matter of prices as well. But the Bombay mills, under the present changed cir difficulties that truly beset the yarn trade and the cumstances of the industry, to work on the same spinning industry of India are not of a short-lines? There is much more reason for them to lived character. Though at the present mo-
do so. To stem the torrent of foreign com- ment they are shrouded under the cover of the petition there is much more reason that the rebellions of the two Kwangs, the duration of Bombay mills should agitate and institute a the competition that has of late been set rolling movement for the imposition of export duty on by the mills in Japan and China, cannot for a raw material to the Far East. The mills in moment he doubted. Despite all disadvantages Shanghai are for the most part owned by for- aa to prices and difficulties as to disposal, the eigners, not Britishers. If there was justifica- working of the 75 mills of Japan, ruuning tion for the prolonged struggle of Lancashire 973,423 spindles, and of the 15 mills in Shang against the industry of an allied country, there hai and at outports, running at present 242,400 would be much more justification on the part of spindles, to be brought to their full complement India to go in for a movement to protect her of 460,200 spindles, distinctly evinces that the industry against for the most part an alien competition against the mill industry of India competition. Work the oracle for the imposi- will have a permanent touure, and that competition of export duty on cotton shipped to the tion is daily gaining so much in strength and Far East, and as soon as that impost is estab- intensity that any such ephemeral measure as a lished, the Indian mills will at once see short-tim- movement, if adopted exclusively by return of their former prosperity.-I am, dear the Indian mills, and without the co-operation | sir, yours sincerely, of the mills of China and Japan, would, instead of relieving the present congestion. at the least keep intact, if not enhance, present difficulties of over-supply, inasmuch as any curtailment of production brought about by the Indian mills would instantly be replaced by the mills of Japan and of China. To instance a result of the competition: for the fortnight ended 10th September last, whilst Shanghai took 4,200 bales of Indian threads, the off-take of Japanese threads was 3,000 bales, and of local threads about 2,200 bales. Had there been no competition, and if the mills of Japan and China had been working on different lines for finer threads as at first contemplated and not for coarser counts, the result of the fortnight's operation in Shanghai would have been sales of about 9,000 bales of Indian thread. The figure of 9,000 bales would have had its own value, and the present outcry about the rebellion of the two Kwangs shutting off large outlets would hardly have been recognized, and such a deterioration as of $10 to $13, or of well nigh 20 per cent. in the matter of prices within the short space of about two months would scarcely have been experienced. The present experience, as affecting sold and unsold stocks,
regards the year's working, attention is onlled in the report to the increased cost of fuel for the period under review, amounting to nearly $65,000, As a set-off against this, however, there have been larger cargoes generally and rates of freight were raised where practicable, with the result that the general managers and consulting committee are again in a position to recommend a dividend of 12 per cent., after providing for depreciation and placing a sub- stantial sum to reserve. It is to be hoped that the price of coal will decline to some extent in the near future, although we can. not confidently predict it. The item in the accounts of $40,000, the difference be- tween the book value and the insured value of the 8.8. Namoa at the time of her loss, and which, as you will note, has been placed to the credit of profit and loss account, must not be regarded as an earning, and may be considered as included in the amount proposed to be carried to reserve fund. It should also be borne in mind that $20,000 of this sum was taken from the company's own underwriting account. I am glad to state that our earnings so far for the current year are up to average and there are such indications of a steady expansion Care of Messrs. Framjee, Hormusjee & Co. of trade that the time is, I think, approach- Hongkong, 22nd September, 1898
H. M. MEHTA.
[Copy]
To H. M. MEHTA, Esq.,
Present.
a
Dear Sir,-We, the undersigned Chinese merchants dealing in Indian yaru and cotton. request you to send a telegram on our behalf to Millowners' Association at Bombay, asking them urgently to work the mills affiliated with the Association short-time. Our reasous for making this request to the Association are:-
Unprecedentedly large stocks-sold and un- sold in this market and in Shanghai without adequate outlets for their immediate consump
We estimate
tion.
*+
*
19
1
14
·
**
Unsold stock in Hongkong 55,000 Bales
Sold
42,000 Unsold
Shanghai 32,000 Bold
18,000 The rebellion in Kwangsi and Kwangtang has to answer for this unprecedentedly heavy accumulations, and as the uncertainty of its daration and course increases, the demoralization in the two principal markets is ever on the increase, and unless some curtailment of arrivals
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ing when, to meet the requirements of shippers who consistently support us and to maintain our position, we shall have to consider Increasing unr fleet, in adition to the steamer now building. I have nothing further to add. Before proposing the adoption of the report and accounts I shall be glad to reply to any question.
No questions were asked and the report and accounts were adopted, ou the motion of the CHAIRMAN, seconded by Mr. BABINGTON.
On the motion of Mr. MORRIS, seconded by Mr. MICHAEL, the Hon. J. J. Bell-Irving, Messrs. D. Gubbay, R. Shewan, and C. H. Thompson were re-elected the consulting com. mittee.
On the motion of Mr. BAILEY, seconded by Mr. GEORG, Messrs. J. H. Cox and W. H. Gaskell were re-appointed auditors.
The CHAIRMAN-That concludes the business,” gentlemen. Thank you for your attendance. Dividend warrants will be posted to-morrow morning.
Mr. BAILEY-I have much pleasure in pro- posing a vote of thanks to tlie general managers
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