May 25, 1901.]:
Was!
Mr. REECE said his next commission Regulations, is not the Permanent Reserve our present lease with the Hongkong & Kowloon
What is the total amount of o that the General Managers have charged for the year 1900 under Article 82 of the New Regulations, and has any and how much of such commission been charged on goods ordered by or for the Company prior to the 20th December,
1900 P
.
The CHAIRMAN replied: The question applies to the London agency. The total amount of commission for the year 190 would amount to about £2,000. The greater part of it was commission on goods, ordered prior to 20th December, 1900. Out of this commission, the London agents have to pay office rent and rent of warehouses, salaries of all employees in London, rates, lighting, stationary, and petty charges.
Mr. REECE
again asked: Have the General Managers retained, received, or charged any other, and what remuneration or commission besides the remuneration and commission claimed by them under Articles 80 and 82 of the New Regulations ?
In reply to question the CHAIRMAN said:- The answer is in the negative.
What Was
Mr. REECE further - asked: the total cost to the Company of general management for the years 1899 and 1900 respectively?
The CHAIEMAN in reply said: The cost of general management in 1899 was $13,000.00, of which sum $3,600.00 was in the shape of General Managers' fees. As the Chairman informed you at the last Extraordinary General Meeting held to confirm the new regulations in answer to a similar question of Mr. Reece's, when the late General Manager, Mr. J. D. Humphreys, was alive, certain members of the present firm of General Managers were holding posts in the Company and were of course paid by the Company for their services. It was the chief reason for bring. ing forward the new regulations to alter this condition of affairs, as the General Managers considered that whatever remuneration they got should be for General Management, and individual members should not be receiving separate rememoration. For 1900 the remunera- tion for General Management is as shown in the Balance Sheet.
Mr. RERCE again queried: What were the book values of Inland Lot No. 16 sud the remaining portion of Kowloon Inland Lot No. 549, and for what sums were they respectively sold ?
The CHAIRMAN said: The book value of Inland Lot No. 16 has been appearing in successive balance sheets for several years, and I am rather surprised that Mr. Reece should think it necessary to ask the question, but I have no objection to saying that the price was $149,000. The profit on the sale of this property was $72,000. The profit on the sale of remaining portion of Kowloon Inland Lot No. 549 was $10.173.
Mr. REECE then asked the book value of R. P. of Inland Lot 549; and the CHAIRMAN said he was unable to say off-hand, as it was included with K.I. Lots 550 and 551, but to the best of his recollection the book price was 40 cents per square foot, and the area about 22,000 square feet.
Mr. REECE again asked: From whom, for what purpose and at what price was Marine Lot No. 2 C purchased P.
The CHAIEMAN-Marine Lot No. 2 C was purchased from the Land Investment Company, I have already informed you in my speech at this meeting the object for which it was purchased.
Mr. REECE rose again and said: The net profits for the year 1899, after writing off depreciation, amounted to $97,447.11. The pet profits for the year 1900, after writing off depreciation and deducting the extraordinary profit of $82,173 derived from the sales of land, amount to $92,330.96. How do the General Managers account for a falling off of $5,116.15 in the ordinary profits of the business ?.
CHINA OVERLAND TRADE REPORT. tions is not reproduced in the Now
Fand established under that Article now subject to the provisions of Article 86, paragraph 15, of the New Regulations, and must not the whole of the Reserve Fand be invested as provided by the said paragraph ? Is there any power under the said paragraph to place a sum of $100,000 to the credit of the Permanent Reserve Fund without, at least, specifically investing it? Is it not the fact that under the New Regulations the General Managers have no power to employ the Reserve Fund in the business of the Company?
:
The Chairman said-The Reserve Fund is invested in the business. We are advised that under section 15 of Article 86 the General Managers may set aside out of the profits such a sum as they think proper as a reserve fund or for such purposes as the General Managers shall in their absolute discretion think conducive to the interests of the Company, and in adding $100,0.0 to the Permanent Reserve Fund and investing it in the business we are of opinion that we were acting in the best in- terests of the Company.
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Mr REECE The question, sir, is whether there is any power to do that.
The CHAIRMAN-I am advised that the transfer is in order, and within the meaning of the Article.
There being no further question, the CHAIR MAN, seconded by Mr E. H. JOSEPH, proposed the adoption and passing of the Report and Accounts as presented.
This was carried, Mr Reece being the only dissentient.
The CHAIRMAN then proposed that the appointment of the Hon. C. P. Chater, Messrs. E. Osborne, C. Ewens and H. P. White as a Consulting Committee be confirmed.
Mr. R. E. HUM‣HREYS seconded. The motion was carried, Mr. Reece again dissenting.
Mr. H. P. WHITE proposed the re-election of Mr. Francis Maitland as auditor for the ensuing year.
Mr. TERRIy seconded.
This was carried. Mr, Reece not voting.
The CHAIRMAN--Dividend warrants will be ready to-morrow morning at ten o'clock, gentlemen. Thank you for your attendance.
THE WANCHAI WAREHOUSE
AND STORAGE CO., LTD.
An extraordinary general meeting of the shareholders of the above Company was held at the office of the General Managers, No. 5, Queen's Road Central, on Thursday afternoon, for the purpose of considering and (if thought fit) approving of an offer for the sale of the whole of the Company's property on Marine Lot No. 29, and Inland Lot Nos. 438/42, 613/615.
Mr. J. G. Schöter occupied the chair, and there were also present, Messrs. H. Broderson, J. Orange, E. Osborne (Consulting Committee), H. Oldenburg, A. G. Morris, A. Haupt, C. W. Dickson, A. Shelton Hooper, A. O'D. Gourdin, F. Smythe, G. T. Seth, Hon. J. J. Ball Irving, and A. von der Heyde.
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the worst feature for us is that at the re
Wharf & Godown Co. will be endangered. Probably owing to the Reclamation, now in active progress at the Naval Yard, the silting up of the foreshore in front of our Marine lot has began to such an extent, that the lessees experience already now difficulties in bringing cargo-boats alongside the pier at all times. olause in the lease gives them the right to cancel at one month's notice as soon as any Reclamation impedes the traffic. To your Committee and to my mind, this is a contin- gency, which must be faced at no, distant date. As soon as this happens we shall lose at once all our income; not only that, but the approach from the sea being stopped, it will be impossible or at least highly improfitable to continue using our buildings as godowns. There would be no other alternative, but to pull down at once, and build Chinese houses. Before we could start we would have to pay off the mortgage of $150,000. To meet this pay- ment and guarantee fund to the Govern ment before mentioned, we could call up all our capital $62.50 per share or $182,500.
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As this is, however, the only reserve we can fall back upon, you will readily see that this does not help us much further, because money is at once required for starting and completing such rebuilding. In Committee we have gone very carefully into this matter on the basis of estimates prepared by experts. which have also been open to your inspection and we find that a large amount of capital is required for which the return is not good enough-to justify us in recommending this plan to your approval.
Our signature to the Reclamation agreement would, however, not leave us anything also to do and we would then also have to go on with the development of the new reclamation. This again would require a very heavy outlay for the Reclamation itself, for building there of god. owns. on the Praya and a blook of Chinese houses inland. It would take a very long time till all this would be completed and in the meantime we would have to be content with a very much reduced income. We had prepared detailed estimates of cost of developing in the manner described the whole of our property and of the returns that may fairly be expected, which you had the opportunity to inspect, and we suppose that after going into those figures showing the very extensive capital required you will agree with your Committee and myself that it would be a very difficult matter for us to carry such a great scheme successfully through.
Our considerations farced on us the conclusion that it would be advisable to sell now all our property if possible and we had before us an offer we thought fit to entertain. I cannot do better than reading to you the corr spondence that passed on the subject:
Correspondence was the read.
In going into this offer Wave taken every means at our disposal to arint the proper value of our property. Very depends of course whether a more or less se vžine view is taken of the future and we have received one valuation; without details, however, which is The CHAIRMAN said-Gentlemen, it is only higher than the offer. The other estimates, a short time since we last mot, but we are forced however, going closely into the cost and the to take a decision sooner than expected regard-returns to be expected also include the closest ing the position we are placed in by the Praya calculations we could compile on this particular East reclamation scheme. You have been point. You will have seen that it is a rather invited to go into the particulars of information complicated matter. We further enquired and estimates of cost hearing on this question, into the value of land in the neighbourhood, which we had prepared and have been open to and we found that sales have taken place of your inspection during the week. In the first Marine Lot property with the right of reclama- place we might see how we stand if we take tion on terms which seem fully to bear out part in the reclamation and take over the land these detailed estimates. As the latter nearly which will accrne to our Marine lot No. 29. agree with the price offered we felt justified in According to estimate it will be about 64,000 putting this proposal before you fo square feet building ground. In a few months consideration. All the partieniars on time would be required to definitely bind our. we based our opinion have been at your disposal selves to the scheme, and the first thing apart from our share in the cost of the preliminary survey would be that we would have to find
and I endeavoured give in the foregoing further information, the decision now n rest
The CHAIRMAN said: Many reasons can be about $20,000 for the guarantee required by tosh you, I shall be glad to
given, such as increased cost of manufactured goods at home, disturbances in the North of China necessarily affecting our branches there, and increased salaries of the staff.
Mr. REECE lastly asked: How is the Reserve Fund invested P Having regard to the fact that Article 115 of the Old Regula
the Government. On this amount probably interests would be lost for five years. At pre sent we have no available money at all, as all our income has been promised to you as dividend.
I understand that the intention is to go on with the reclamation as quickly as possible and
best of my ability any questions. I will now propose the following re
That this Meeting do approve of the of the Company property Marine Lot No. 29, Inland Lot No. 438 3 to 442613 to 615 with buildings thereon to the Hongkong Land Investment & Agency Co., Ltd. at the pries of $300,000.—on the conditions enumented in
No comments yet.
Private notes are available after approval.