April 7, 1902.]
owing by you to the Company. You say there is all this money owing by you to the Company, and we want it to be paid off in the current year, and it is bearing no interest.
The CHAIRMAN-I do not think it is right that the Company should charge an employee interest, and especially for a debt that was taken over.
Captain TILLETT-Apparently the share holders did not have any knowledge that you had that money.
The CHAIRMAN-Then why did Mr. Gaskell not put it in?
Captain TILLETT-Did you ask Mr. Gaskell to attend to-day?
The CHAIRMAN-Yes, I did specially. Mr. GRANT SMITH--Mr. Chairman, with regard to these shares that you say Watkins, Limited, have a lien on, are they in possession of the Company?
The CHAIRMAN-No, they are not. Mr. GRANT SMITH-Where are they? The CHAIRMAN-They are in the possession of the Court at the present moment, with your partner, who has a case on.
Mr. GRANT SMITH-Then, as it stands at present, that is not a security at all for the Company?
The CHAIRMAN-Yes, the Company can get all the dividends for the year, but not the trans- førs,
a
CHINA OVERLAND TRADE REPORT.
Mr. MUMFORD-I beg to second.
Mr. OSBORNE-I see there is something like $1,700 of bad and doubtful debts; can you give us any information on that point ?.
The CHAIRMAN-The majority of that is really belonging to the shipping community. We shall have very great trouble and difficulty in collecting it, though it is not absolutely bad. As opportunity offers we will recover something of it.
Mr. GRANT SMITH--I beg to propose that the Company be credited with the interest due by
you,
Major BROWN-I beg to second. Captain TILLETT-I think we have quite a sufficiency of motions now before the meeting. Let us proceed to the vote,
The CHAIRMAN-I beg to put the first resolu- tion to the meeting, that the debt be liquidated within the current year.
Five voted for the motion, and the CHAIRMAN declared it carried.
The CHAIRMAN-What interest do you suggest. Mr. Smith?
Mr. GRANT SMITH--I should say the interest should be at the current rate of interest of the day.
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MAJOR BROWN-Bank interest ? Mr. GRANT SMITH-I should say 7 per cent. The CHAIRMAN-The Bank rate is 6 per cent, Captain TILLETT-Be contented with that. Mr. GRANT SMITH-All right; that will do. The motion was carried, five voting for it. The CHAIRMAN-There is one other thing to which I have to refer. I have received a
ing us of the total destruction by fire of our branch at Shanghai. The loss, I may mention, is amply covered by insurance, If there are no more questions I would move the adoption of the report.
Mr. GRANT SMITH-But, if the shares are not in your possession, how can you get the dividend? Is there a lion on these shares as well? The CHAIRMAN-According to the articles of association there is a lien on the shares.telegram from our Shanghai manager inform The Company will have the dividend and that will be quite sufficient to liquidate the amount.
Mr. GRANT SMITH-Last year you told us that you did not include in the statement of accounts any profits made by the Company as the result of the sale of stores, etc., shipped up to 'lientsin. Will you tell us whether these profits are included in the report now before ns, and say what is the actual amount made from the shipment?
The CHAIRMAN-The amount is included in the report, and is about $4,000 roughly.
Mr. Gaskell having now entered the meeting, the Chairman was asked to request him 'to make a statement with reference to the loan. The CHAIRMAN-Mr. Gaskell, will you ex- plain why you did not include that loan in the first balance-sheet?
Captain TILLETT (addressing Mr. Gaskell).- The question I asked was this: I have asked the Chairman about this sum that he owes the Company, and he says it is a debt going back seven or eight years, since the Company took it over. It was known to you, and I said the shareholders did not know anything about it, but he said that that was a question that you could answer, and I asked him if he had asked you to be present to-day, and be said that he had. Perhaps you can give us some information.
Mr. GASKELL-As far as the taking over of the Company went, of course no bad debts were taken over. They never are in any Company.
The CHAIRMAN (interposing)-But this is not a bad debt by any means,
Mr. GASKELL-If the money was owing then at the time it should have been paid off. The reason why it Las not appeared specially in the accounts is that it appeared in the "accounts receivable, sundry debts," which have been amalgamated with the general debts owing to the Company, and have been regarded as good by Mr. Chan A Fook who told me he thought it was good; that was last year; but this year I have thought it advisable to mention it in my report.
The CHAIRMAN—And it is good; you may take it from me.
Captain TILLETT-It cannot be very good when it is standing out without bearing any interest. I think i is time Mr. Fook and yourself liquidated this debt between you.
The CHAIRMAN-The way to do is to leave it in the hands of the General Managers and they will liquidate it
Captain 'I'ILLETT-I am not prepared to take such a general statement as that. The money is standing out without bearing interest, and that is not good enough. 1 will be glad if some- body will second the proposal I make, that this debt should be liquidated within the current year.
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Mr. MUMFORD-With regard to the remarks you made just now, it seems to me that you are dissatisfied with the salary you are in rec:ipt of. I think that is a matter that should be con- sidered by the shareholders. It is not a very pleasant thing to her that the General Man ager is dissatisfied.
Captain TILLET--You are not quite in order, What is before the meeting is the report and balance-sheet.
Mr. MUMFORD-But he made a remark- Captain TILLETT-Yes, but that is foreign to the matter before the meeting.
The CHAIRMAN-I beg to propose the adop- tion of the report and statement of accounts now before the meeting. Will any gentleman secoud?
Mr. Ez8x181-1 beg to second. The motion was carried.
The CHAIRMAN-That is all the business, gentlemen; I thank you for your attendance. Dividend warrants will be ready on Thursday next, 3rd April, on application at the office. Warrants will not be sent out or mailed to any
опе.
Mr. OSBORNE—Mr. Mumford made a remark in reference to your salary, Mr. Chairman-
Captain TILLETT-The report has now been passed, and Mr. Osborne is not in order, as the meeting is finished.
The CHAIRMAN-Mr. Osborne is quite in order in making any remarks he pleases.
Captain TILLETT--But the business is finished. The CHAIEMAN-He has as much right as you or anybody else to make what remarks he likes.
Mr. GASKELL-I think Mr. Osborne is in order in expressing bis views, but nothing can be done.
Mr. OSBORNE-I do not want to carry the thing any farther, but I suppose we can have an opportunity of discussing the matter.
The CHAIRMAN-I will see that a meeting is called. There are increased management expenses, which will mean $200 or 8259 a month. Major BROWN rose to speak, but was fore- stalled by
The CHAIRMAN, who said-The meeting is absolutely finished.
Mr. GRAST SMITH-Major Brown has as much right to express his view as Mr. Osborne had.
By this time most of the shareholders had left the meeting.
Major BROWN-There is one point I want to bring forward, and that is the price of some articles sold here. It seems to me that some business is lost through excessive charges.
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The CHAIRMAN—And yet you are grumbling at the small dividends.
Major BROWN-Exactly so. A man told me that he was asked $3 for a certain quantity of menthol, and some time afterwards it was got for $15 at Watson's.
The CHAIRMAN-I asked him why he did not go to Watson's. That was Colonel——
Major BROWN-Oh, never mind who it was. It was got subsequently at the Pharmacy for $15. That costs at home, according to the Druggists' Price List 22/- a pound, yet $30 is asked for it at this shop by you, and you are an employee of the shareholders. I think that shows a little bit of business ability in losing business.
The CHAIRMAN-And if I had to buy it I could not got it for $15.
Major BROWN-But it was got subsequently. The CHAIRMAN-Yes, but I could not buy it. I have a pound for my own stock; and if yon think I am going to dispose of my whole stock, well that would not be business. A pound would last me for 20 years
Major BROWN-But there has been a demand for it lately.
The CHAIRMAN—As a matter of fact you don't know what you are talking about A pound of this drug would last me for 20 years, and that is sufficient for my wants. I do not keep it for the convenience of you or any one person. If you are not satisfied, you or any of the shareholders have the remedy in your own hands and know what to do.
Major BROWN Well, I may just tell you 'you're another"; a considerable quantity has been sold in this Colony of late ?
The CHAIRMAN -Yes, for two or three mouths, because of the presence of disease. I am speaking of what I know, I trust I know my own business. I am a chemist and you are not. I suppose if I came and told you how to run your hospital I would be ordered outside very quickly. I won't be told by you how to conduct the business.
Major BROWN-(retiring from the room)- I am just telling you you are losing business.
The meeting then dispersed.
The following are the report and accounts;- Gentlem: n,-We have now the pleasure to lay before you a statement of the Company's business and balance-sheet for the year ending the 31st December, 1901.
PROFIT AND LOSS ACCOUNT.
The amount standing at credit of profit and loss account, after paying all charges, salaries. etc., and providing for bad and doubtful debts, is $1,387.50,
In the accounts submitted to you last year, through a clerical error the stock included a portion of the plant and machinery of the value of 88,741.97. This sum is included in the amount $13.544.54 passed to equalisation of dividend fund at the last mesting, so that the net profit for the year 1901 was $10,129,47,
DIVIDEND'ACCOUNT.
We now propose with your consent to trans- fer from the equalisation of dividend fand to the credit of profit and loss account the sum of $8,741.97, which will then stand at $10,129 47, to pay a dividend for the year of 9 per cent. which will absorb $9,000," carry forward to equalisation of dividend fund $4,802.57, and to profit and loss account $1,129.47.
The accounts have been audited by Mr. W. H. Gaskell.
} General Managers.
G. A. WATKINS, CHAN A Foок, Hongkong, 20th March, 1902.
BALANCE-SHEET. 31st December, 1901.
LIABILITIBA,
Capital-10,000 shares at $10 fully pałd up 100,000.00 Reserve fund...
Accounts payable
Loans payable
Profit and loss account
Bills payable...
13,544.54
4,674.20
3,800.00
26,909.17
1,287.50
$150,315.41
ASSETS.
10,512.45
$8,058.20 393.67
$1,399.74
7,664.53
139.97
1,259.77
Aerated water plant Steam launch Less written off
Furniture and fittings Less 10 per cent. written off
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