March 13, 1900.j
be profitably, invested in the company's opera- tions and at once, would be to injure and not to benefit the company. On that point your directors have satisfied themselves, and believe that they can find scope for the profitable em- ployment of any capital called up, and thera fore, if this meeting approves of the capital being fully paid up, the Board is ready and willing to give effect to your views, although it is a matter which, under ordinary circums tances, is wholly within their discretion and power. They would like, however, to have that course approved by something more than a bare majority. With reference to the second point, the Board is of opinion that if a call is to be made, it should be made at an early date and in one sum. To call up the amount gradually would militate against the object Mr. MoCons chie and his friends have in view, to get fully paid up shares in which Trustees and others might promptly invest their monies. We в e no reason either in the present position of the colony and of the money market, why the un- paid capital should not be got in at once. As to the third point, we would have you to bear in mind that, in applying this reserve fund as it is now proposed to apply it, you are adding nothing to the present earning power of the company, while you are increasing the amount of the capital on which we have to pay dividends. This one and a quarter milliou is at present employed as if it were part of the company's capital. Our working capital at the moment is practically $3,750,000 all usefully employed, and we pay dividends on $2,500,000 only. As to the fourth point, we bare taken legal advice and
are assured that the reserve faud of one and a
quarter millions created by the special resolu- tion of the 6th April, 1889, may be capitalized and applied in payment of the calls or part of them as proposed. It is not a fund accumulated out of the profits of the company in its curent bsiness. It is mouey that came directly out of the pockets of the shareholders. It was created by a special resolution and its destina- tion may be changed by a like special resolution duly confirmed and registered. So that if on other grounds you think it well to apply this fund ir payment of a portion of the unpaid capital now to be called up, you may safely and effectually do so by the special resolution of which notice has been given. I now beg to propose the first resolution, namely, "I.-That the proposal of the directors to call up the un- paid capital of the company in one call of $50 per share, payable on 1st July next, is approved. Mr. MCCONACHIE seconded and the resolu. tion was carried unanimously.
The CHAIRMAN-I am very glad to see the proposition carried unanimously, because by our articles you must have at least a majority of three-fourths. It is better that it should be unanimous. The first resolution having been carried, I now beg to propose the following special resolution:-"That profits accrued to the company from the issue at a premium of the now shares in the company. autho. rised to be issued by the special resolution passed on the 6th, and confirmed on the 23rd day of April, 1889, amounting to the sum of $1,250,000, and which was then carried. and is now standing to the credit of the re- serve fund in pursuance of such special re- solution, be capitalized and be applied in part payment of the gall of $50 per share on all the share in the company, to be made by the board."
Mr. PETER Seconded and the resolution was carried unanimously.
The CHAIRMAN announced that the sharehol- ders would be called together again to confirm the special resolution which had just been passed.
There were 3,805 visitors to the City Hall Alussum last week, of whom 16i were Ea- ropeans,
Mr. Francis Arthur Hazeland, Deputy Re. gistrar and Accountant of the Supreme Court, was called to the bar on the 26th of January st Lincoln's Inn.
The Death-rate for the month of February in the Colony was as follows:-British and Foreign Community, Civil Population, 15.8 per 1.000 per annum ; Chinese Community, Land and Boat,
21.4
CHINA OVERLAND TRADE RÉPORT.
169
THE HONGKONG rope manuFAC | siderably below the market value. There is mo
TURING COMPANY, LIMITED.
The fifteenth ordinary annual meeting of shareholders in the above company was held on the 8th instant, at the company's offices, No. 9, Praya Ceutral. The chair was occupied by Mr. M. Shewan and there were also present: Messrs D. Gillies, J. H. Lewis and A. J. Ray- mond (Consulting Committee), E. S. Kelly, F. J. V. Jorge, H. W. Dann, A. H. Babington, G. C. Anderson, G. W. F. Playfair and R. D. Anderson (Secretary)..
thing else in the accounts that I see that rang quires any comment, but if any of you have any a questions to ask I shall be happy to answer them. I may add that, of course, if you adopt oar proposals for the increase of capital, the nsual extraordinary meetings to effect them will be called as soon as possible,
No questions being asked, the Chairman pro- posed the adoption of the report and accountal
Mr. GILLIES seconded and the motion waH | carried.
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On the motion of Captain G. C. ANDERSON, seconded by Mr. PLAYFAIR, Messrs. Gillies, Lewis, Raymond and Showan were re-elected as Consulting Committee for the ensuing your.
Messrs. Thos. Arnold and Fullarton Henders sou were re-elected auditors, on the motion of Mr. LEWIS, seconded by Mr. BABINGTON.
The CHAIRMAN-That is all the business of the meeting. I will now read you the follow
THE HONGKONG ROPE MANUFACTURING
COMPANY LIMITED.
Notice is hereby given that an Extraordin- ary General Meeting of the Hongkong Rope Manufacturing Company, Limited, will be beld at No. 9, Praya Central, Victoria, Hong. kong, on Saturday, the seventeenth day of March, 1900, at 12 o'clock noon. when the sub- joined Resolution will be proposed. Should the Resolution be passed by the required ma- jority it will be submitted for confirmation as a special Resolution to a Second Extraordinary Meating which will be subsequently convened.
That the Capital of the Company be in oreased from $250,0 )0 to $590,000 by the crea tion of 5,000 new share of $50 each, such increase to be made up by the conversion into Capital of the sum of $250,000 out of the Re- serve Faud or the Investments representing the same.'
Dated the 8th day of March. 1900.
SHEWAN TOMES & Co.,
General Managers. As soon as these resolutions have been passed and confirmed, scrip for the new shares will be issued to all shareholders whose names are on the register to-day.
THE CHINA FIRE INSURANCE
The CHAIR MAN said-If you have no objec. tion we will take the report, which has been in your hands for some time, as read. The fear that has elapsed since we last met has, as we then anticipated, been a very difficult one. The rebellion in the Philippines lasted longer than we expected, and as you know the hemp ports were only finally reopened the other day. The price of hemp rose to heights which in ordinaying notice times we should consider enormous, and it became a very auxious and difficult matter for us to decide as to whether we were justified in laying in stocks at anch figures. On the one hand we naturally wanted to avoid having to shut down and lose our hold on the trade we bave long aud carefully built up with the coun. tries around us, but on the other hand if we did not do so, we had to face the very probable likeli hood of being caught on a falling market with a heavy stock of very costly raw material, We were between the devil and the deep sea; in spite of ourselves we had to gamble to a large extent and if as some people think the eud justifies the means, we are certainly well justified by the present result. We hope, however, that un one will run away with the idea that such profits as these can be expected from ropemaking every year. The problem before us this year will be. I think, a very different one. Instead of haying hemp on a steadily rising market for hope, we shall probably have to accept lower and lower prices for the manufactured article as soon as the markets at home begin to feel the effect of their imports of cheaper hemp. For- tunately our present stocks of raw material are not large. At the end of last year, as you will.] notice from the report, we had nsed up every pound we had and our stook of rope was diminishing so rapidly that we were very thankful when the hemp por.s were at last re opened. Uutil the hemp market settles dowu we shall, of course, buy sparingly, but it is very evident to us that we must be in a position in future to carry much large stocks of both raw and wrought material. For this reason and alsobecause we contemplate further extensions to the factory and plant, we ask you to allow us to retain the profits for the year and use them as conditional capital. The company will then be in a very strong position indeed and fit to cope with any increased demand that may spring up. Opposí. tion concerns have been spoken of by our neigh. bours in the Philippines, but after consideration they have seen no advantage to be gained over us, and if we ourselves saw any we would at once advise you to establish a factory over there as well. The fact is that after careful study of the conditions and going so far as to send our Superintendent, Mr. Klinck, who was formerly in charge of a rope factory there and knows the country and people well, to Manila to look into the question on the spot, we could see no inducement whatever. On the contrary the superiority and cheapness of Chinese labor here leaves a large balance in favour of this side, not to mention the far greater facilities we have here in the way of storage and transhipment and direct transportation to almost every part of the world, as well as the benefits we also derive from having bought our plant at home when exchange was greatly in our favour and our land at a price much below what would have to be paid to-day for ic. In the fine position we shall now be in, we need have little fear of competi- tion from the Philippines r any other quarter. If any should come we shall be able to live where it will starve, for it is our firm intention to keep our prices in futurs down to a level that will defy competition, and to make up for the reduced returns by the larger turnover we shall do. You will notice we have re-valued our investments, but have not taken foradit for as much as we could have done, and you will find if you will take the trouble to work it out that the figures we have placed against this item are sti li con-
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COMPANY, LIMITED.
The thirty-first ordinary meeting of share- holders in the above company was held in the company's offices, No. 3, Queen's Road Central, on the 8th inst. The chair was occupied by Mr. H. L. Dalrymple, there being also present: Messra N. A. Siebs. H. Haupt, A. MoConachie, E. Goets, A. G. Wood, D. M. Moses (Directors), G. L. Tomlin (Seore- tary), T. H. Reid, H. W. Slade, G. T. Veitch, C. Palmer, A. Moir, B. M. Conceição, and Chau Pat
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The SECRETARY read the notice convening the meeting.
The CHAIRMAN said-Gentlemen, the Dires- tors' Report and Statement of Accounts of the company for the past year having been in your baads for about four weeks. I have no doubt you will consent to take them as read and I will now make such comments on them as appear called for. You will probably recolle t that when we met last year it was pointed out to you what s small balance was carried forward to the credit of Working Account 1898. . That small balance was still further reduced by olalms and return premia psd in 1899, and the year 1893 has even. ually ended in a profit of $86,435.17 only, which is the worst record for the past 23 years, ́al- though the loss ratio of 78 33 per cent, compares favorably with 91.62 per cent. shown in 1891, in which year, however, your dividend fall from $6 to 84 per share, whilst on the present'occasion we are in the satisfactory position of being able to propose the usual dividend of $6 per share, thanks to the creation of the Extra Reserve Fami formed for such a purpose from part of the pro- fits of 1897. Whilst on the subject of the Extra Reserve Fund I would beg to refer to the som- tested qisim mentioned in the Report. This un- fortunate incident happened in connection with the serious Kobe Pier Fire in March, 1898, when a dispute arose as to the liability' coming under a Marine or a Fire Insurance Policy. After many delays the decision was given against the company in H. B. M's Supremo
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