372
THE STRAITS INSURANCE CO.,
LIMITED.
The following is the fifteenth annual report for presentation to the shareholders at the twenty-second ordinary general meeting, to be held in the Company's Offices, Singapore, on the 3rd day of May:
To the shareholders of the Straits Insurance Company, Limited.
Gentlemen,--Your Directors beg to submit the annexed balance-sheet for the year ended 31st December, 1898.
The Accounts have been adjusted at the ex- change of 2/- per dollar.
THE HONGKONG WEEKLY PRESS AND
Working Account, 1898. Dr.
To net premiums from 1st January to 31st December, 1898, after de-ducting re-insur- ances and return premiums
Cr.
By head office charges... By branch and agency charges By commissions...
By directors, committees and auditors' feer... By losses and claims paid" By balance...
PROFIT AND Loss Account. Dr.
To balance of profit and loss at 31st Decem-
ber, 1897...
To balance of working account at 31st Deo-
ember,.1897
To interest on investments
To transfer fees
To from reserve for renewal of buildings. To increased value of investments To unclaimed dividends written off To balance.....
1898.-The Net Premiums for the year amount to 632,786.60 (£63,278-13-2) on which claims have been settled up to 31st December last, amounting to $257,097.42 (£25,709-14-10). Commissions and expenses amount to $206.866.89 (£20,886-13-9). The Balance $166,822.29 (£16,682-4-7) is carried forward,
1897.-The settlements on account of 1897, and previous years amount to $516, 153 (£51,615-7-1). It is estimated that a further sum of £7,000, will be required to fully liquidate these old accounts, involving the loss of about half the paid up capital of the Company. To replace this it was resolved at an extraordinary general meeting of shareholdors held on 15th March, and confirmed at a similar meeting on 29th March, to increase the capital of the Company By claims paid on account 1896 and previous by 30,000 sterling value shares, fully paid, of $10 each (equivalent of £1 sterling). An alternative solieme has since been placed before shareholders, and generally approved, for the reconstruction of the Company in London un- der conditions which have been fully explained to you by circular, dated 20th March last, Negociations in regard to this scheme are proceeding.
Interest
оп Investments amounts to $27,531.26 (£2,753-2-6).
The values of Company's Properties in London and Singapore have been certified by expert valuators, and all known bad debts have been written off.
DIRECTORS.*
On his return to the Colony, Mr. D. W. Lovell was re-appointed to the Board.
In accordance with the provisions of Clause No. 105 of the Company's Articles of Associa- tion, the Hon'ble T. C. Bogaardt and the Hon'ble G. S. Murray retire from the Board, but offer themselves for re-election.
AUDITORS.
In accordance with Clause No. 146 of the Company's Articles of Association, Mr.J. Lyall and Mr. R. Dunman retire, and the firm of Messrs. Lyall & Eratt, and Mr. W. Dunman, acting for Mr. Robert Dunman, offer them. selves for election as Company's Auditors.
T. C. BOGAARD, Directors. D. W. LOVELL,
Singapore, 19th April, 1899.
BALANCE SHEET, 31ST DECEMBER, 1898, Dr.
To capital fully subscribed, 30,000 shares at
$100
To capital paid up
To unclaimed dividends
To sundry creditors
To mortgage of London premises
Cr.
By cash on current account with Banks, Bin-
gapore, China, de
$ 0 3,000,000.00
By fixed deposits with Banks, Singapore By real estate owned by the Company, Sin-
years
Or.
By claims, re-insurances and return premiums
paid on account 1897 By property charges
By bad debts writtenff as irrecoverable...
By taxes on profit account 1894
632,786.60
!
0.
[May 6, 1899,
increase of about £20,000 in fixed deposits and current accounts: This indicates that the bank': has gained in the confidence of the public, and I am glad to say the amount has still further increased since Jan. Ist, not only at head office, £632,786.60 but also at branches where silver deposits will greatly assist the business of the bank. To 0. turn to the other side of the balance-sheet, I 47,062.74 will direct your attention first to "unrealised 126,816.90 assets of old bank," £76,178 2s. 10d. This has 19,668.27 been reduced by about one-third-£24,500– 15,418.98 257,097.42
since Deo. 31st, 1898, by realisations, and the 166,822.29 Board intend during the year to continue re- alising these assets as favourable opportunity $632,786.60 | offers. As to the deficienoy account, this, of course, applies to the old bank and appears this year as £209,946 19s. 8d., having been reduced by calls recovered during the year to the extent of £3,494 13s. 10d. As men- tioned at last meeting, the only large items which can greatly reduce this account are the sums to be recoved from the Chinese and American shareholders. The decision of the Taotai of Shanghai in the Chinese suit, which was unfavourable to the bank, has not yet been reheard on appeal before the Viceroy of Nan. king, to whom it was referred. The case is in the hands of our legal advisers at Shanghai, who are giving it every attention. The de oision of the New York Court was entirely in the bank's fvour, but the defendant has appealed against it to the Appellate Divison of the Supreme Court of the State of New York, and I am glad to tell you that our New York 2,004.99 solicitors appear confident that we shall succeed
997.97
in that Appellate Court also. I need scarcely add 8,430.00
that we shall prosecute the appeal with vigour, and allow no delay to arise in bringing it on $522,586.49
for hearing.
847.66
219,173.45 27,581:26 88.00 8,220.00 23,055.04 195.00
248,976.08
: 522,586.49
G.
$123,385.44
892,768.09
BANK OF CHINA AND JAPAN, LIMITED.
|
When we turn to the profit and loss account, it is disappointing that the amount at credit is only £2,325 13s. 2d., and that it shows a redu- tion on the earnings of the preceding year. The fourth annual ordinary general meeting Many circumstances have conduced to this result, of the Bank of China and Japan, Limited, was bat chiefly the conditions of exchange, with held, on 27th March, at the Cannon-street the bank's still limited capacity in 1898, Hotel, E.C., Mr. W. Keswick, M.P., presiding.account for it. Extreme caution had to be. having read the notice convening the meeting,
The General Manager (Mr. F. C. Bishop)
The Chairman said-In September last you were advised by circular that a final payment had been made on May 14th to depositors in the old bank. The liabilities of that bank having thus been all discharged, only one general balance-sheet to Dec. 31st last falls to be sub- mitted to you. To turn to the balance-sheet, the capital account shows that only sixty shares have been allotted during the year 1893 to old shareholders; but since then a further fifteen have been issused. This is due to the Board having adhered to their policy of allotting shares only after the call of £3 158. had been paid in full. There are three shareholders holding 645 shares who are paying up the above call with the objects of coming into the new bank. You will notice a sum of £654 15s. 3d. has been al- ready received from them, and the balance we expect to be paid during 1899. Overdue calls amounted on December 31st to £14,786 7s. 11d., but have since been reduced to £14,050 18s. 2d., of which certainly £2,000 is quite good and will shortly come in. The balance of about £12,000 may be divided into two classes, one consisting of shareholders who have not paid the first, second, and third in- 27,507.99 stalments of call and the other of those who have paid. From the first class £1,299 58. is due on the three instalments, and every effort is being made to recover this sum, as also a sum of £3,728 further due by the same shareholders for subsequent instalments. From the other class the remainder of the outstandings, amount- ing to £7,023 13s. 2d., is due, being payable in respect of the fourth, fifth, sixth, and seventh instalments. The shareholders by whom these outstandings are due should recognise that it is decidedly to their advantage to pay up the balance, as they have already paid at last £2 per share, and in many cases more. Should they fail to pay up, the Board have power to forfeit their shares after giving due notice; and, were their shares forfeited, and the sums already paid on them transferred to credit of 82,153.79 deficiency account, such transfer would result in a clear gain to the bank. The only other $770,830.03 | item calling for remark as regards the accounts on the liability side of the balance-sheet is the
600,000.00 940.00 19,890.08 150,000.00
$770,830.30
gapore
By Chinese Imperial Government loan E. By agency balances and sundry debtors for
premiums, &o., ̃ˆ
By branch balances, London, &c.
By cash on ourrent account with Banks,
London, &o.
By fixed deposits with Banks, Australia, &o... By metropolitan fire brigade debentures
By freehold office premises, London
By remittances in transitu
By furniture and stock at head office and
branches
By cash in hands of cashier
By balance of profit and loss ac-
count
$248,976.08
By less balance of working ac-
count
166,822.29
C.
80,000.00
70,000.00 12,893.97
15,384.59
108,862.96
54,942.51 82,634.58 15,400.00 800,000.00 11,487.20
9,741.56 20.88
|
observed, and transactions restricted to a small margin for profit as turns over in exchange. With considerable silver assets of the old bank still to realise, the management hesitated to place much of the new bank's gold funds also in the East, and the chance of earning good profits for the new bank was thus lost through what may be considered over-caution and attan- tion to the interests of the old bank. The working of the two banks was thus so intimate that it was not possible to separate the actual profits, and hence they appear as they do in profit and loss account. No losses were made by the bank during the year, but charges ac count was burdened somewhat by sickness and by furlough expenses. The amount; £11,260 168. 8d., includes also the fees paid to the com. mittee representing the depositors in the old bank, but which is now at an end. With a view to helping exchange business, by being connected with so important a market as Singapore, we opened an agency there early in January last, and so far it gives promise of being a right step. Fortunately it does not involve any considerable expense, and I may say all our arrangements are made to obtain efficiency wherever business is carried on, and with a due regard to economy. The Board are of opinion there is a reason- able prospect of success in the future; that where established there are promising fields for profitable operations, and that there is every likelihood with the capital the bank possesses and the improved credit and confidence it en- joys, it will secure a good business and earn fair dividends. You are aware that there is still the liquidation of the old bank to complete, and recalcitrant shareholders in it to deal with, and more especially those of them who are Chinese subjects. Such matters require consi- derable handling, and so do also the realisation of the assets, and these subjects will necessarily demand the care and attention of the Board. The Chairman concluded by moving the adop- tion of the report and statement of accounts. - Mr. David McLean seconded the motion.
In answer to a question put by Mr. Fleming, the Chairman said the reason the expenses this year were so much higher than last was owing in a great measure to sickness of their staff. Their Hongkong manager was home on 'fur-
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