1
December 31, 1904.]
Mr. Ferrers objected to the form of contract, saying that it was an unstamped, broker's note. Mr. Pollook contended that, though the word "Broker" was printed on the paper, it was not a broker's note at all; it was not signed by a broker.
Mr. Ferrers submitted that it was, but even if it was not the document should have been stamped.
Mr. Pollock said that Mr. Ferrers was argu- ing under Ordinance 13 of 1902, having re- ference to brokers' notes the sale of merchan. dise through a broker. Regarding the second objection, he could find no rule preventing this particular document being stamped afterwards.
His Honour took it that the document was not a broker's note, and for the present would regard it otherwise.
Evidence wás led.
The case was adjourned.
THE INTERNATIONAL COTTON MANUFACTURING CO., LD.
દ
The ninth annual general meeting of thi. company was held at Shanghai on Dec. 21sts It was reported by the N.-C. Daily News a follows: There were present Mr. C Rayner, (vice-Chairman), presiding, Messrs. W. H.s Poate and J. N. Jameson (Directors), G. Wuil- leumier (Secretary), G. B. Burgoyne, L. Mid. wood, C. Selby Moore, and J. M. Young, Lin Chang-yen, and See Ming-yue-representing
3,077 shares
The notice convening the meeting was read, Tue Chairman-Owing t the in lisposition of our Chairman, Mr. J. L. Scott, it becomes my duty, gentlemen, to address you to-day. The report and accounts have been in your hands for some days, and with your permission we will take them as read. As already stated in the report the war in the North, dear money, and the general political uncertainty have greatly in- terfered with the successful working of the mill We have also had difficulties to contend with in the reorganisation of our mill staff.-these difficulties have, however, been overcome, and
manner.
I think I may confidently say that the mill is now being worked in a very real and efficient After careful consideration, your directors have, found it advisable to recommend you to dispose of the accumulated balance at credit of profit and loss account as stated in the report; with a considerable portion of our share and debenture capital unissued it is impos- sible to distribute any of these accumulated earn. ings by way of dividends. and to carry them for ward inprofit and loss accoun might tend to raise false hopes in that respect. Of the Taels 50 000, which we propose to p'ace to reserve account, the sum of Taels 31,669 87 is actu lly invest-d in first-class securities of the debenture trusters, It is our intention to continue to place a portion of our future earnings to reserve account until a working capital has been accumulated suffi. cient for the proper running if the mill. Our buildings, plant, and machinery have been kept in first-class condition out of revenue at an expense during the year of Tls 19,00, and I should like t draw your attention to the fact that when the profit and loss entries recom- mended in the report have been made, we shall have written off Tis. 187.753, equal to about 19 per cent of the initial cost of our plaut and machinery which, however, your direc'ors do
not consider too much.
i
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CHINA OVERLAND TRADE REPORT. used to be told that it was lack of capital; no doubt that had something to do with it, but we cnt down the par value of our shares and rearranged our finances, but we are no better off.
an I think we must look elsewhere for the cause. To turn to accounts the net profit for 1902 was Tls. 91,220; for 1903 Tls. 26159; this year it was Tls. 14,223, surely a falling off of which we have had no reasonable explanation. With this year's report we find the war, coupled with our old friends, tight money and high cost of colton, made the scape- goats; as regards the former I think I am right in saying that as a result of the war we have had a demand for piece goods that we do not often experience, and as far as I can gather cotton yarn must have benefited also. A g re-ards the Russo-Chinese Bank overdraft account, I notice with regret that the directora have been unable to reduce this very heavy item beyond a paltry Tls. 1,690, notwithstanding that new debentures to the extent of Tls. 27.800 have [ben taken up. How can we expect the public to put their money into these debentures as ong as we are under such a very heavy obliza. tien to the Bank? Loan account. Tls. 80.000; this is a new account, and I think the directors have strained every nerve before committing the company to further indebtedness; it means more interest, and, as it is, we find the life blood of the concern used to pay our enormous interest bill, which has risen in the last three years from Tls. 33,454 to Tls. 42,674. On the other side of the balance-sheet I have only to refer to two items viz: (first) stocks ou hand, Considering the directors admit the difficulty of trading in times of tight money and dear cotton, when economy and a careful husbanding of the company's resources were of primary import- ance, we find they have launched out in stock to the enormous extent of Tls. 202.877 I think I am right in saying that that is a higher figure than any we have ever had since the Trading Company, and in view of the position of cotton I think the directors have made a grave error in so doing. A hand-to-mouth policy was surely the safest line to pursue until we have plenty of working capital or a phenomenally low price of cotton should tempt us to speculate. The second item I wish to refer to is the ginning mill, standing in the books at Tls. 15,000. I asked at a previous mesting whether the working of the ginning plant might not be so reported in the accounts that shareholders might judge whether it is a valuable adjunct to the mill or not This has not been done; we can only presume that the ginning mill at least pays its way, but I should like to find out
mill revered its connection with the American
whether it is worth to us the Tls. 15,000 that
we value it at. Does it pay us eight per cent. on its book value, or, if not, can we realise Tls. 15,000 for it. I wish to detain you for just one moment more. I want to ask another question; whether it is a fact that Chinese cotton is bought in Shanghai, and directly shipped to Japan, paying freight and export duty, spun there and returned to Shanghai, which means another freight and an import duty; whether such ya-n can and does compete successfully with our spinnings, and whether, if such is the case, the directors are taking any steps to find out how it is doue. In conclusion I have only to refer to one more matter that I would much
rather not have touched upon, but the Chair- man having failed, to refer to it, I must. It has been our custom to hold our annual meeting in the month of November; this year I am given to understand the reason that we are A month late, is that both the Chairman and Vice-Chчirman were absent from Shanghai, re- vealing an indifferenc toward the company's affairs that I think greatly to be deplored.
Mr. Selby Moore-Before we proceed to pass the accounts I wish to make a few remarks. Before actually touching the accounts them selves may I be permitted to place on re ord my own (and, I should think, most shareholders) disappointment at the lamentable result of the year's working. Last year the result of the year's working was considered disappointing. The Chairman, repling first to Mr. Moore's but after the Chairman's remarks at the annual final remark, regretted that the meeting was meeting I felt that batter times were in store held 1-ter than usual, but the postponement was "for us and that at last we had turned the corner caused by the unfortunate illness of the Chair-
and were,
if not within sight of a dividend, at man (Mr. J. L. Scott) and the fact that he (the least o the high road to it. What do we now Vice-Chairman) was away on holiday when Mr. find? This mill, which has now been runn ng Scott fell sick. In rega d to the importation some ten years, equipped with modern machinery of yarns from Japan at cheap rates, the directors and presumably overseered by competent men, had been doing their best to meet the competi- passes out of its sickly infancy into a more sickly tion, but owing to the high protective tariff in youthhood, and one trembles to think what its Japan, the manufacturers there were able to old a.e will be. Now there must be something dump their surplus, which was practically a rad cally wrong to account for this, and it is the bounty-fed yarn. on the China coast. The duty of the directors to right that wrong. We
company seemed to hold large stocks as Mr.
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Moore had said, but the stocks represented pur- chases to cover sales already made at a profit; the directors considered it the proper course to cover their sales in that way rather than risk the market.
Mr. Moore said he was quite in agreement with the Chairman on that point.
The Chairman said in regard to the ginning mill it was hardly to be expected that the direc- tors would give publicly the details of its work- ing, but the mill represented a splendid invest- ment; if Mr. Moore cared to call on Secretary next morning he could obtain all the details he required.
the
The following resolutions were then carried without further comment:-
Proposed by the Chairman, seconded by Mr. Poate That the report and accounts as pre- sented be accepted and passed.
Proposed by Mr Jameson, seconded by Mr. Liu Chang-yen. That Mr. J. L. Scott be re- elected a director.
Proposed by Mr. Selby Moore, seconded by Mr. Young
That Mr. A..R. Leake be re- elected auditor.
The meeting then terminated.
THE EWO COTTON SPINNING
AND WEAVING CO., LD.
The report presented at the ninth ordinary meet ng held at Shanghai on December 23rd,
was as follows :
The General Managers submit a statement of accounts to 31st October, 1904 showing the result of twelve months' working to that date. At the opening of the financial year in November, 1903, etton could be bought on reasonable terms, but it gradually advanced in price up to April, from which date the higher level established was maintained until August, supported chiefly by heavy demand for export Notwithstanding this, the Mill production was caused by the shortage in the American crop. sold at a profit for the first six months, when owing to the outbreak of hostilities between Japan aud Russia iur Northern outlets were practically closed to us, and with ac--- cumulating stocks and interest thereon profits disappeared
The balance at credit of Profit and Loss Account, including the sum brought forward from 1st year, amounts to Tls. 12,844.76. which it is proposed to carry forward to next account.
Consulting Committee. In accordance with Article XVII, the members of the Consulting Committee retire, but all are eligible and offer themselves for re-election.
Auditor. During the absence of Mr. Geo. R. Wingrove, the accounts of the Company have be n audited by Mr. W. H. Anderson on s behalf. The re-el-ction of Mr. Wingrove to the position of Auditor requires the con- firmation of the shareholders.
JARDINE, MATHESON & Co,
General Managers.
Shanghai, 6th December, 1904.
I he accounis are as follows :—
STÅ EVENT OF ACCOUNT For the year ended 31st October, 1904. LIABILITIES. Capital-Authorised 20,000 shares at Fls. 5 Tls 1,000,000; subscrised 15,000 at Tls. 50
Jardine, Matheson & Co. Accounts payable Uncollected dividend Sundry creditors Profit and lose
Property Buildings Plant... Water supply Furniture
Mill stores Cotton stock
Cotton yarn in process
Yarn stock .......
Tls.
750,000,00
272,000.00
13,346.27
ASSETS.
2,308.00 2,947.35 12,844.76
Tls. 1,053,916.39
Tls. 138,669.85 292,38 +42 367,893.54
4,22.81' 3,443.37
Unexpired fire insurance premia
Rates and taxas
Accounts receivable
Advances against seed cotton
+
14 17.79 -36,792.16
43,796.73 116,645.66
5,273.69
419.15
19,004.42 11,299.10
T. 1,053,946.38
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