May 26, 1900.]
fixed under a contract which is in possession of the Secretary at this moment. I may mention that if the arrangements had gone on with Mr. Norwrojee, the Secretary just tells me the charges would have been practically the same as they are at present.
Mr. MACKENZIE-With reference to the turnstiles, Mr. Chairman, is it the intention that monthly ticket holders should pass through the turnstiles have spoken of?
you
The CHAIRMAN-Yes, but the directors will do all they can to have as little trouble with the turnstiles as possible. In the beginning it may be necessary that they should pass through the turnstiles. We have tried to avoid the turu- stiles for first-class passengers, but to stop these leakages and put a check on our collectors they must be resorted to.
Mr. SAYER-When the turnstiles are erected will there be a reduction in the number of col- lectors on the boats ?
The CHAIRMAN--Certainly. Major BROWN-May I ask the directors if it is not possible in connection with the forgeries to carry out the system of English companies with regard to transfer. That is, when notice has been received at the office of the Company that some shares are to be transferred, notice is sent to the seller that on such and such a date shares will be transferred provided no objection is raised by him. That is done in a good many places.
CHINA OVERLAND TRADE REPORT.
The report and accounts were adopted unani. mously.
Mr. Moxon proposed that the appointment of Mr. J. A. Mackay to the Directorate be confirmed, and that Mr. P. Sachse be re-elect- ed a Director.
Mr. JORDAN seconded. Carried.
369
The resolution that they be taken en bloc was carried; and the resolutions were carried by large majority.
The CHAIRMAN Gentlemen, that is all the business of this meeting. There is another meeting.
ALTERATION OF ARTICLES. Another extraordinary meeting was subso-
Mr. MURRAY Bain proposed that Mr. W. quently held, H. Potts be re-elected auditor.
Mr. WONG KAM FOOK seconded. Carried.
This concluded the business.
EXTRAORDINARY, GENERAL
MEETING.
An extraordinary general meeting of the Company was afterwards held.
The CHAIRMAN said—The effect of the reso- lution which I am about to propose will be to fix the quorum at general meetings at five. Under our Articles the quorum varies accord. ing to the number of Shareholders, at present being 20, and owing to the diffioul y experienced in getting the requisite number of persons to attend meetings we think it well to alter the Articles in the manner suggested.
The CHAIRMAN then proposed
That the regulations contained in Table A in so far as they apply to this Company be altered as follows:-
That the following clause be substituted for Clause 37 of Table A: The quorum for all the purposes of a General Meeting shall be not less than five members present in person or by proxy. No business shall be transacted at any General Meeting unless the quorum requisite be present at the commencement of the business."
Mr. C. W. DICKSON seconded. Carried.
The CHAIRMAN-That is all the business. I thank you for your attendance.
The following was the report presented to shareholders at the above meeting.
The directors have the pleasure to submit to shareholders their report with a statement of accounts for the year ending 30th April, 1900.
ACCOUNTS.
The CHAIRMAN said-The proposed increase of capital is required to pay for the new double enders, which will absorb $50,000. also for other new boats which will, it is anticipated, be re- quired as traffic increases and for opening up new lines where there may be opportunities for profitable employment. We had intended to issue this new capital by instalments in the form of fully paid up scrip from time to time as money was needed, rather than issue the whole of it at once in the form of partially paid up scrip. This latter method involves not only additional expense in advertisting, legal, and other charges, but involves also disadvantages and inconven- The CHAIRMAN-It would be almost impos- iences which are inseparable from a partially sible in Hongkong. Shares are rarely trans-paid up scrip and which therefore cause a part- ferred here direct from a seller who holds the ally paid up scrip to be unpopular with Share- shares in his own name to the intending pur- holders. For this reason the resolutions were chaser. As probably many gentlemen in the worded in the manner they are. There was room will know there are blank transfers and never the slightest desire or intention on the scrips going about the colony for five or six part of the Directors to issue the capital to years, and the man who signed the transfer if persons other than Shareholders, and the resolu. called upon would reply he knew absolutely tions were put into their present form simply to nothing about it; he had parted with his in- allow the Board-to effect, in an economical man- terest four or five years ago.
ner, what appeared to them most beneficial to those persons who are registered as shareholders on the 9th June, at a premium of $5 per share The amount at credit of profit and loss account i.e. $16 per share, of which 84 will be payable on after paying for repairs and making good the 16th June and the balance when needed, and loss on forged scrip referred to below was these new shares of $2.50 paid up will participate $14,619.50, which, with the approval of share in the current year's dividend pro rata. The pre-holders, it is proposed to appropriate as follows:- mium of $6 may perhaps be considered by some too high. The Board however thinks that the permanent interests of the Company should have first consideration and being of opinion that the new capital can be obtained at 86 premium, and even at a higher figure, they feel it their duty to recommend the issue at that price. Having Mr. MACKENZIE-Has the man been prose- thus publicly stated our intentions I trust that cuted P
you will see fit to pass the resolutions in their The CHAIRMAN-We cannot get him, unfor-present form. To reject or alter them will en tunately. We offered rewards and informed the Police, but he could not be traced.
No more questions being asked, the CHAIR- MAN proposed the adoption of the report and accounts.
Major BROWN-Would it prevent any possi- bility of forgeries in future, because I take it that in this case the Secretary did not check the register with the forged scrip?
The CHAIRMAN-Yon are mistaken. Every precaution that could be taken was taken to see that the scrip was right, but where forgery comes in it is a very difficult matter to know when you are safe. This man was in the employ of the Wharf Company for ten years. The directors went into the matter and thoroughly satisfied themselves that every precaution had been taken.
Mr. WILCOX-I have much pleasure in se- conding, I think that all will agree that it is a very wise policy to build up a reserve in a Company like this, especially where it is intend- ed to underwrite the fleet on account of the high premiums charged. I think on the whole the report is most satisfactory. Of course we have been the victims of a fraud, and the amount that would have been set aside for depreciation has had to be devoted to another purpose./ In future the depreciation will have to be provided for and the underwriting too. That will be done, I presume, by annually increasing the reserve fund. Too much im- portance cannot be attached to that, and I think we ought to go in for a steady addition every year to the reserve fund until it attains a substantial figure. With those remarks I beg to second the adoption of the report and ac-
counts.
¡
Mr. YULE-Before putting the resolution, Mr. Chairman, I would like to point out that from the remarks you made it seems illogical to state that when the forgeries were committed proper precautions were taken, as you say further precautions have since been taken. I understand that if these proper precautions are taken now that they were not taken before.
The CHAIRMAN-It is only when a fraud is committed that you begin to realise low it could have been committed. Knowing how it was committed we are adopting extra precan- tions to avoid its recurrence,
i
tail delay and expense which a small Company like this can ill afford to bear, and I trust I have made it quite clear to you that the Board were actuated in this matter by a genuine desire to do what they considered best for the welfare of the Company. (Applause.) We have no doubt the whole sum asked for will be subscribed, in which case the $60,000 premium will be trans- ferred to the reserve fund. I now beg to pro- pose the following resolutions :----
1.
That the Capital of the Company be in- creased from $100,000 to $200,000 by the creation of 10,000 New Shares of $10 each. 2.-That the New Shares be issued at such time or times and at such premium as the Directors may determine. 3.-That the New Shares be Allotted to such persons and upon such terms and con- ditions as the Directors may determine. Mr. W. J. GRESSON seconded. Mr. SAYER-Would it not be better to take these separately. Eapprove of the first resolu- tion.
Major BROWN-May I ask if they are to be taken separately the first one I heartily ap prove of that seems to be the wish of the other shareholders.
The CHAIRMAN-It can be done as proposed. It has been proposed by me that they be taken en bloc and second by Mr. Gresson. I should like to get the feeling of the Shareholders.
Captain BERGER - Surely the increased capital is one thing and the allotment another.
ifr. SHARP proposed that the resolutions be taken en blbc.
Mr. MURRAY BAIN seconded.
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The nett earnings of the boats after paying all working expenses were $25,845.55 against $24,122.18 "last" year, being an increase of $1,723.37.
Directors' and auditor's fees ...$ 1,000.00 Dividend of $1.05 cents per share being
at the rate of 12 per cent. per annum 10,500.00 Write off turnstiles Transfer to reserve fund Carry forward to new account
224.55 2,000.00
894.95
$14,619,50
The directors much regret having had to pay- a sum of $4,652.50 for the purchase of share certificates to the extent of 250 shares which had been fraudulently issued by one of the clerks and for which they were advised the Company was liable.
BOATS.
Two new double-enders similar to the Morn ing Star were contracted for in August last and the first of them is expected to be delivered next August. The question of insuring the boats has received full consideration and in view of the heavy premium required and their immunity from serious accident in the past the Board are of opinion the risk should be borne by the Com- pany itself and provided against by additions to the reserve fund.
DIRECTORS.
Mr. E. 8. Whealler having resigned, his place has been taken by Mr. J. A. Mackay Mr. P. Sachse retires in accordance with the Articles of Association but being eligible offers himself for re-election, and the appointments of these gentle- men require confirmation.
AUDITOR. Mr. W. H. Potts has audited the accounts, now presented and the directors recommend him for re-election.
C. P. CHATEE, Chairman.
BALANCE SHEET, SOTH APRIL, 1900.
́LIABILITIES,
To capital.
10,000 shares at $10 each fully paid up. 100,000.00 To reserve fund as per last account $2,000 To transferred from profit and loss and
account
2,000
To unclaimed dividend
To accounts payable":
Major Bsowy proposed as an amendment To balance of pront and loss account that they be taken in detail.
Dr. BELL seconded,
£,000.00 9.75 16,283.70
894.95
$121,183.40
No comments yet.
Private notes are available after approval.