-374
THE HONGKONG WEEKLY PRESS AND
THE YAH LOONG COTTON SPIN-
NING CO., LIMITED.
The second ordinary meeting of the proprie- tors of this company was held at the offices of the general managers, Messrs. Fearon, Daniel & Co., Shanghai, on the 28th October. Mr. H. W. Daniel presided and there were also present Messrs. J. Liddell, J. R. Twentyman, A. Werth, and Wong Kiah-zur (Directors), A. Groener, F. W. Styan, J. Stampff, C. R. Wehrung, C. W. Wrightson, J. B. Walsh, A. P. Stokes (legal adviser), Yu Kee, Ah Ee, J. F. Rodewald, and H. C. Figuiredo.
The notice convening the meeting having been read,
|
Mr. Stampff seconded, and the resolution | By balance.. was confirmed.
The Chairman, in reply to Mr. Rodewald, said it was proposed to close the books of the company for the year at the end of December and to hold the next ordinary meeting in March. A vote of thanks to the chairman concluded the proceedings.-N. C. Daily News.
Capital
meeting :-
The following is the report presented to the Sundry creditors
The directors, in submitting their first report, together with the accounts of the Company for the year ending 31st July, 1898, regret that they are not of a more favourable nature. They would, however, like to draw the attention of shareholders to the exceptional combination of circumstances which has hampered the Com pany during its first year of working.
On taking over the mill from the former owners it was found necessary to make a clean sweep of the old Chinese staff and system. Later on it was considered expedient to make a change in the foreign management. The directors have now engaged the services of Mr. Walsh, a manager well-known in India, and the results of this change are, so far, highly satisfactory.
The Chairman said-The report and accounts having been in your hands for some days I will therefore propose that they be taken as read. In the report the directors expressed their regret at its unfavourable nature, but I think you will admit that the statement of the very great difficulties with which the company has had to contend reasonably explains the unsatisfactory result of the year's working. According to the resolution passed at the statutory meeting held in December, it was proposed that the accounts be closed on 31st July, the then chairman having named this early date, being naturally anxious to let share holders know results at the earliest opportunity. This date, I may say, is not altogether satisfacing ground" for the over-production of Bombay tory, as owing to the dullness of the yarn market during the summer months, a spinning mill must necessarily hold considerable stocks at that date. In future we propose to close the books on 31st December, holding the annual meeting in March, as provided for in the Articles of Association. In accordance with
the custom now prevailing we have not published details of the working account, but the books of the company are open to the inspection of any shareholder. The heavy overdraft which appears in the account is, of course, largely due to the shares not being fully taken up and to the value of stocks which were at date of making up our accounts still to be realised. These stocks have been largely re- duced by a greatly improved demand during the past month and our indebtedness to the Bank is reduced. We have every reason to be satisfied with the services of our new mill manager, Mr. Walsh, and with the economies he has been enabled to effect in the cost of pro- duction. All advices from cotton producing countries point to plentiful supplies and conse- quently low prices. I therefore think we may safely count on cheap cotton for the present season at any rate, which encourages your Directors to take a hopeful view of the future. As to the extension of the mill to 20,500 spin- dles, I may say that we are proceeding with this on the most economical terms. You will notice that nothing has been written off the value of the machinery, as an immense amount of labour has been spent in putting it into good order. Our yarn is in good demand and is daily gaining in popularity, as evidenced by the large sales we have been able to make since the late demand sprung up. We refer in our re- port to changes in the labour system; the chief change is the establishment of a contract sys tem resulting in a greatly improved out-turn. There has been some slight trouble with the workpeople over this change; but the difficulties are now overcome and they are already dis- covering the advantages of the system. If there are any questions to be asked we shall be ready to answer them.
The Chairman then moved, in the absence of any questions from shareholders, the adoption of the report and accounts as printed and circulated.
Mr. J. Liddell seconded and the proposition was unanimously carried.
Mr. C. R. Wehrung proposed, and Mr. F. W. Styan seconded that the appointments of Mr. H. W. Daniel and Mr. J. Liddell as directors of the company bé confirmed. This was also agreed to.
Mr. Rodewald moved, and Mr. Groener seconded the re-election of Mr. A. Werth and Mr. Wong Kiah-zur as directors of the com. pany, a proposition which was also accepted unanimously.
Mr. Styan proposed the re-appointment of Mr. Crawford D. Kerr as auditor for the coming year.
The high price of cotton during the past twelve months has militated against profitable-results, while the deplorable state of the yarn market, owing to Shanghai having become the "dump-
and Japan, has led to a range of price below the cost of production. The demoralised state of the market induced the directors to check the mill's production by the temporary cessation of night work, the resumption of which will depend on the future course of the yarn market.
The above facts show that the Company has had an exceptional year to contend with, but it is expected that, with a lower range of prices for cotton, and a return of the yarn market to its normal basis, future results will warrant the confidence possessed by the directors in the undertaking; therefore the extension of the Mill, bringing the number of spindles up to 20,500, is now being proceeded with.
The directors feel that the difficulties which
have hindered the development of the Company during the year will not be entirely without compensation in the near future. The unre- munerative prices lately obtained have stimulat- ed four out of the five Foreign-owned mills to form themselves into a Mill Owners' Association, working together for the protection of mutual interests. The question of native wages, which it was considered demanded primary attention, was at once taken up, with the result than an
agreement has been come to which will materially lessen the cost of labour. Other items of ex- penditure have also been carefully gone into, and economies effected which it is hoped will be of a permanent nature.
The machinery having been thoroughly over- hauled and repaired under the supervision of a foreign fitter, the directors consider it in better condition than when taken over, and therefore do not deem it necessary to write off any sum for depreciation at this date.
Mr. J. S. Fearon and Mr. C. O. Liddell
having left Shanghai, Mr. H. W. Daniel and Mr. John Liddell have accepted the vacant seats on the Board, and confirmation of these appointments is required.
In accordance with the articles of association
Mr. Werth and Mr. Wong Kiah-zur retire, but offer themselves for re-election.
[November 5, 1898.
30,849.27
Tis. 80,890.56
BALANCE SHEET, 81st July, 1898.
LIABILITIES,
Tis
Less unissued sharos..
750,000 178,400
571,800.00
Overdraft at bankers.
315,852.88
7,480.11
Tis. 894,412.99.
AMETS.
Te 110,184.83 192,653.41
805,702.58
1,489.01.
22,823.53
190,797.05
6,978.92
Cotton and cotton waste Coals
20,870.39
1,418,50
9,097.72
229,171.58
· 1,639.28. 30,849.27-
Property. Buildings Machinery Furniture Sundry debtors Value of stock...
Yarn
Cotton in proceSU
Mill stores
Unexpired fire insurance Balance of profit and loss account
Tls. 894,412.99.
SATURDAY'S GYMKHANA.
The afternoon turned out very fine in spite The six competitors for the first race turned out of the threatening appearance of the morning. rather late, but a good race ensued. Silver Bell made most of the running but in the straight Mr. Crane drew away on Tocsin and won rather easily, Captain Burney on Landsknecht just catching Silver Bell on the post. The tent peg- Simonds and Captain Laurie picked up peg for ging brought out fifteen riders. Captain peg in the three runs allowed and were then ordered by the judge to try two more runs in the second run Captain Laurie only secured a "draw" and Captain Simonds taking his peg was declared a winner. The Steeplechase on foot brought ont eight runners and there was vantage. Lance Corporal Williams, of The King's a general rush by the spectators for points of Own, won easily. Fourteen ponies entered for the Polo Scurry and there was rather a scramble at the turning post. Captain Laurie's pouy turned inside the others and secured ward journey, winning by about a length from a start of about four lengths on the home-
Landsknecht. The Ladies' Nomination was per- haps the favourite event, as the nominators two judges, Mrs. Bell-Irving and Mr. Hough, took great pride in their productions. The took a long time over their awards, finally giving first to Mrs. Godfrey Master, who had created a masterpiece that in dress and appear- ance was well fitted to take part in the noble sport of hunting at home. Mrs. Long's dum- my ran her very close, being a clever and well thought out caricature of one of our leading jockeys.
Mr. Johnson, nominated by Mrs. Gawne, carried off the honours, though he was all but caught on the post by Captain Laurie.
Several ponies did not wait for their riders, burdens broke their bridles and bolted. Five but seeing them approach with their strange
riders turned out for the last race, which was well contested between Tocsin and Digby Grand,
the former winning by a length.
The attendance was perhaps small, but beauty Mr. Crawford D. Kerr has been appointed and fashion were both well represented. Ad- auditor to the Company, and offers himself formiral Fitzgerald and the officers R.N. did the re-election.
J. R. TWENTYMAN, Directors. JOHN LIDDELL,
FEARON, DANIEL & CO.,
General Managers.
Shanghai, 15th October, 1898.
PROFIT AND Loss Account, 31st July, 1898.
Dr.
To agency expenses......... To interest account To directors and auditor's fees
Loss on working account.
By transfer fees, By premium on shares
4,000.00 .14,083.42
2,750.00
Tla
20,833.42 10,057.14
Tis. 30,890.56
Cr.
TH.
29.39 11.90
honours nobly in entertaining, and refreshing the inner man. At the completion of the pro- gramme Mrs. Black very kindly gave away the prizes. Fortunately, the last race was run be- fore it began to get dark, the great difficulty at this season of the year. This completes the gymkhana season.
The hand of the King's Own was in at- tendance.
The following were the officials :—
Judges The Hon. J. J. Bell-Irving and Mr. V. A. Cæsar Hawkins.
Handicappers: The Hon. C. P. Chater, C.M.G., and Mr. Grote.
Starter -Mr. A. Babington.
Timekeeper:--Mr. J. McKie.
Clerk of the Scales:-Mr. J. McKie,
Hon. Treasurer --Mr. G. C. C. Master.
Hon. Secretary-Capt. J. H. Laurie, K.O.R.
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