158
that the first item oɔncerning which a question is asked, contingent liability, includes an account from Messrs. Houston & Kidd, civil engineers, for work done since the year 1900. They were first employed during the days of our former chief manager, and as there appears to have been a considerable amount of work done prior to the time that most of the present members of the Board had any dealings with it, and the account, was not rendered in such a condition as to warrant your present Board in approving the same, the matter has been held in abeyance for se tlement during the present period, and will no doubt receive the earnest consideration of your directors. With regard to the profit on the Kinshan, I think your able chief manager and the staff are not likely to take a contract unless there is going to be a profit. Concerning the amount of 820,00 to contributing shareholders, this is spread over the whole year. Nothing was voted during the first half of the year, but at the end of the second half we voted $20,000 to extend over the whole year. I may mention that during the second half of the year shareholders contributed over 70 per cent of the gross earnings, and I find that this was also the case during the first half of the year.
Mr. FREDERICKS- Will you kindly give me a more definite answer as regards the manager and the staff not taking contracts on which no money was made ? Your answer was not very
definite.
The CHAIRMAN-I must rale you a little bit out of order there in asking the directors to say in public meeting whether or not they have ever undertaken work on which a loss resulted. There are certain items of business with every concern that are not made public (hear, hear), and I think the majority of the shareholders present will agree with me that there are certain items, especially, surrounded as we are with such a field of competition, connected with the inner workings of cur concern that for our benefit should be kept to ourselves. By "ourselves" I mean you, gentlemen, and there is no reason why any individual shareholder should not go to the office at any time and get information that he would personally like for his own information, of course, and not for publication in the Press or to the detriment of the Company.
Mr. FREDERICKS-Do you mean that if you come here to enquire into this, you will have access to the books?
The CHAIRMAN—No, sir. Mr. FREDERICKS-Will any such informa. tion be given privately?
The CHAIRMAN-Yes, sir; if you undertake not to publish it, and the balance of the mem- bers of the Board are satisfied that they can give you the information without detriment to the Company.
Mr. FREDERICKS-Bat it seems to me that you indicated in your first answer that there was a profit made on the Kinshan,
The CHAIRMAN-The steamer is not com- pleted yet. Something might happen. We might lose a lot of money if a serious accident happened.
Mr. FREDERICKS-But, barring accidents? The CHAIRMAN-Barring accidents, I think we are fairly safe. I think I intimated that.
Mr.FREDERICES-Yes, so you did, but I only wanted to know whether or not you did make any profit.
There being no further remarks on the report and accounts,
The CHAIRMAN said-Gentlemen, I beg to move the adoption of the report and accounts. As some members may like the item of the provident fund disposed of separately, my motion will be the adoption of the report and accounts, leaving out the question of the provident fund,
Mr. H. HUMPHREYS-1 beg to second the motion. It's ems to me that there is very little required from me in the way of comment. The proposal to inaugurate a provident fund should commend itself to shareholders, and I trust the same idea which prompted the movement will influence the directors in seeing that no soessary extravagance or unneccesary ex- fiture, is carried on in the Dock itself.
The motion was carried unanimously. Mr. J. R. MICHAEL We have very carefully considered the report and accounts submitted
|
|
|
THE HONGKONG WEEKLY PRESS AND
|
[February 28,Ƒ1903.
to us, and there is no gainsaying the fact that ; the fact that the ship had to be kept—a valuable they are very disappointing; they are the worst ship like that—under repairs for so much longer, we have bad for several years. Even in 1898 as the result of the accident: Now, with when our capital was nearly a million dollars | regard to the provident fund, you made a state- less than it is now, we had better returns. Our ment that it was going to prove more burden- profits were $1,013,000 and $892,000 respectively, some to the Company than continuing me we against the $737,090, which the accounts of 1902 haro in the past. On looking back, I nes that show as to-day with exchange 30 per cent, lower w began paying our staff bonuses in the year than in those years. Bearing in mind that mean- 1895; that was the first year in which wo while the business of the Company has increased paid them a bonus. We paid them a bonus to a considerable extent, the fast that you could | that year of $20,000; that amounted to 15 per not do better now than show us such poor cent. of their salaries. In 1896, the next year, results implies that there is “something rotten we paid a bonus of $20,50), which also amounted in the State of Denmark"; there must be mis- to 15 per cent. of their salaries. In 1897 we management somewhere, and we think it is did not feel we were justified in paying any your duty to find out on whose shoulders the bonus, bat in 1899 we paid them a bonus of responsibility rests, and to put an end to this 82 1,50), and that amounted to 15 per cent. miserable state of affairs. If all we hear is of the`r islarios. In 1899 we paid them a true, the management and the staff are all at į bɔnus of 12 per cent. on their salaries, in 1900 sizes and sevens. We have a well-tried staff | of 11 per cent,, and in 1901 of 10 per cent, on who, under the capable management of the their salaries. Your directors after considering late Mr. Gillies, worked harmoniously and the matter very carefully, and not settling it contentedly to the great ben-fit and advantage at one meeting, for our deliberations extended of the Company. All this seems to be altered over three or four months, decided that it ROW. We have had several resignations, would be more satisfactory to all concerned, if thereby losing in some instances the services of it was satisfactory to the employees, to have a old experienced servants, who were, so to provident fund that would enable us to render speak, most valuable assets of the Company. soms assistance and be ourselves possibly in We shareholders feel that all these things must no worse position than before, but in a better be enquired into and explained, and we hope the position, fussmuch as there would be no excuse directors will take this task in hand seriously then for employees, in terminating their as soon as possible. There is ane matter upon | services with the Company, in indigent circam- which the shareholders will be glad to receive stances, coming to us and asking for pecuniary some information. I refer to the case of the │assistance, as has ben the cass in the past. Mari · Jebsen. It seems that through carele »- It is on account of this that the directors ness on the part of a mebody in the employ of selected this as the best way out of the the Dock o. we were let in for a large loss.¦ difficulty, but it is for you here to-day, gentle- Can the directors enlighten us as to the amount men, to decide, and if there is anyone elso who of our loss? And who is the person to blame? | won'd like to mak: a few remarks on the subject With regard to the proposal for a provident before I put the matter to the meeting, wo will fund, in the face of such mismanagement as ❘ be glad to hear them. we think must ex st, it cannot commend itself for acceptance. The Europan staff is well paid. Some think that one of them at least, is far too well paid. They are an intelligent body of men, well able to look after themselves, and know exactly what to spend and what to save and if they do no!, it is not our fault. There is no need of making this grandmotherly pro- vision for them, and the present occasion is certainly not the right one for considering it. Rather let us as in the past pay a bonus to the staff when we have a good-half year. It is folly to bind ourselves and our successors to this extra outlay. Une suggestion I should like to make to the directors: seeing that we are paying a great portion of our expenses in gold, it seems to me very desirabl, that our charges and tenders should be placed on a similar basis. Though rather late in the day, it will protect us from losses through a drop in exchange between the time of presentation of our bills and that of payment, and it will further enable shipowners to make a more ready comparison of the cost of the work done here with that of work done in Japan and at home, I strougly urge this upon the consideration of our directors.
|
|
|
|
Mr. MICHAEL-The mere fact that you admit that we, the shareholdere, have been so liberal in giving bonuses in good years to the employees is in itself a guarantee that we are always willing to give a bonus in good years, but not with miserable accounts like these. Our exchange has gone down 3) per cent. and our profit has gone down. Our capital was $1,500,000 in 1896; now it is 24 millions. Exchange has gone down 30 per cent, and qur profit has gone down very much. And now wo are going to bind ourselves, and future sharehold rs to a fixed bonus. We are always willing to give a bonus in good years, and the proof is there—that we have been liberal in the past. One other thing I should like to say. You have assured us that the loss on the Marie Jebsen was $5,000. Do we understand that that was the total loss ? Some are estimating the loss at 820,000, some at 831,000 and some at $40,00.). Now it is minimised to $5,0′10 ani F should like a repetition of this craßemation. Did you make a profit, and besides making a profit was this 85,/00 lost, or do you mean to say that you have done the work for nothing and that after doing the work for nothing there was a loss of $5,000 against the share- holders ? I should like a very clear answer, because thera is a rumour that the damage was 825,000 to $40,000.
The CHAIRMAN-Mr. Michael and gentle men, The remarks yon have made, which do not d-al directly with the question we are now c03- sidering, namely, a provident fund for the European staff, will no doubt receive the attea- The CHAIRMAn-Referring to your first tion of the directors for the future. I think I question on the provident fund, in 18'6 when am safe in telling you, however, that in a good we roted that bonus to the staff on that profit many of the items you here mentioned what of over one million dollars for each half-year you fear and also what you state is not correct. the appropriation to shareholders was only $31 The matter of making our charges on a sterling per share on the prevent subdivisible basis, as basis is a matter which, as I mentioned in my against 80 now; and that might have influenced speech, has been receiving for some time, and the bonus to the staff. With regard to the will continue to receive, the serious considera- Marie Jebsen unfortunate affair, of course when tion of your directors, and as we are all share- I said there þras a loss to the Company of about holders, too, I think your directors will give the | 85,000 I did not mean to convey that there was matter such serious consideration as will resulta profit and then a loss. There was an actual in the best interests of the Company. I may loss to the Company of 81,509. say that some of our contracts, taken where the contractors lived outside the Colony, have been made in sterling. For instance, the two now large steam lighters we have under construction, which I mentioned in my speech, were con- tracted for in sterling. "With regard to the unfortunate accident to the Marie Jeboen, as the result of the typhoon, I do not know that any of us here are responsible for the typhoon, or possibly the ability or the op- portunity being given na to avoid the damage that occurred to that rensel. The result was that there was a loss to the Company-a 'small loss ; it was under $5,000, notwithstanding
|
Mr. MICHABL—That is doing the work for nothing?
|
The Chairman—-Our profit was eaten up by the necessary repairs.
Mr. MICHAEL-Then the answer is that wà docked the|Marie Jeboon free; employed our men on the work, and lost $5,000.- This is not proper book-keeping. The whole hould be shown in the nocounts.
The CHAIRMAX--As I said before, advisable always to give publis, · bronz information concerning the inne a concern, where there is to contend with, for it might
Page 10Page 11
No comments yet.
Private notes are available after approval.