232
COMPANIES.
THE DOUGLAS STEAMSHIP CO., LIMITED.
The twenty-second ordinary general meeting of shareholders in this company was held at the company's office on the 3rd September. There
pre: ent Mr. were
H. P. White (Chairman), Hon. Mr. C. W. Dickson, Mr. A. G. Wood and Hon. Mr. R. Shewan (Consulting Committee), and Messrs. C. D. Wilkinson, J. E. Bingham, W. Parlane, J. A. Jupp, J. R. Michael, T. F. Hough, E W. Mitchell, J. S. Perry, W. F. McIntosh, W. H. Potts, 8. J. Michael and Chan Sue.
report
The CHAIRMAN, Gentlemen, the and accounts having been in your bands some days I will with your permission take them as read. The result of the year's actual working while showing an improvement on the previous year is not so good as we had hoped for, but at the same time it should be pointed out that the profits on the working of the steamers are almost entirely derived from the regular coast trade of the company, there having been no Government or special charters during the period under review. Reference has been made in the report to the sale of the Thales and Harloong. Both these steaders were too small for our present trade, and as their running expenses were but little less than those of a steamer of almost double capacity, they had ceased to be remunerative for some time past. The question of a new steamer of larger capacity to replace those sold, has been temporarily shelred but will be brought for ward when the outlook for shipping in the East, is more propitious. Competition with the subsidized Japanese line still continues, but at the present time the remaining steamers of the Douglas Company are earning fair freights. We were fortunate in having funds available at a time when money was in good demand, and you will learn from the accounts that the company has now F. considerable sam out on mortgage which bears an average rate of interest of nearly 8 per cent. The income under this heading, will show a considerable increase in next year's accounts, and we are hopeful that at the next general meeting, we shall be able to show a better result on the year's working generally. In the cir- cumstances the general managers and consult- ing committee, after due consideration, have decided to declare a dividend of 7 per cent which virtually absorbs the whole of the actual profit on the year's working, to carry $7,638.79 to credit of the reserve fund, and to write off
8 per cent. from the value of the Company's properties (less the amount of the reseive fuud). Before moving the adoption of the report and accounts, I shall be pleased to answer any ques. tions that shareholders may wish to put.
Mr. PERRY-I should like to ask, Mr. Chair- man, whether any of our steamers have made a profit during the year.
The CHAIRMAN-It has never been the cus- tom to say whether any steamer is making a profit or not. There is no use in giving away information to our opponents, and nothing to be gained by it.
Mr. PERRY-Well, did any of the steamers make a loss?
The CHAIRMAN-I have answered your ques. tion, Mr. Perry. As I said before, there is nothing to be gained by giving information away to our opponents
THE HONGKONG WEEKLY PRESS AND' ..
Mr. PERRY- Mr. Chairman, I would like to make a few remarks and draw the attention of the general managers and consulting committee to the following facts in relation to the reports and accounts whose adoption we are called upon to pass to day. Analysing the amount of profits of $196,100.55, as shown in the account, I find that it is made up of the following items:- $126,160.00 difference between book value and sale
price of 8.8. Thales and 8.8. Hailoong. $31,421.71 Interest on the Co.'s investments.
$51,401.89 profit on unuing the steamers
and on coal. $12,783.05 less remuneration to general
managers and other charges.
Balance 38,61--84
196,100.55
It will readily be seen from the foregoing particularized items that out of the large sum
[October 2, 1905.
The CHAIRMAN-I am pleased to hear what you have said, Mr. Perry, but you say we had no opposition while the Japanese boats were off the rub, but
we have had a very strenuous opposition, the whole time with chartered steamers-an equal opposition to the Japanese own steamers, We have had the same number of steamers against us the whole time, and they cut rates and took cargo.
Mr. PERRY-But they chartered foreign steamers and had to pay for them.
money.
The CHAIRMAN-Thn they are losing
Mr. PERRY-What profit did we make, Mr. Chairman ?
of profits, viz., $196,100.55 as shown in the account, on the sum of $38,618.84 is the actual return derived from the running of the Co.'s fleet. Thus with what was supposed to be a fairly good year (one better than the normal) as the past one, and with a free field without any keen opposition from our competitor the Japa- nes (as the latter were obliged to charter foreign steamers at very high prices to t ke the place of their steamers which were employed by the Japanese Government as transports), our actual amounted only to the sum of $88,618.84. This return from the working of the steamers
net outturn represents 4.41 per cent. on the value of 8375,000 of the steamers, With this fact before us, it must be admitted that the company's position is anything but a satisfactory one; at any rate its earning powers have been so materially im- paired that, as an enterprise, its ability to acquire for shareholders remunerative dividings every ends. is fairly on the road to extinction. To pay dividends ont of profits accrued from sales of steamers and interest on mortgages, etc., is taking us rather beyond the line and scope of the business for which the company was originally constituted. Besides, profits from sales of steamers are a remote contingency and cannot be expected every year. and should not be fallen back upon for dividends. What most seriously engages our attention now is the question whether or not the company's fleet
88
now running, and with the prospective immediate resumption of competition by our indefatigable rivals- the Japanese-can make its way to pay the shareholders adequate dividends on the assets of the company. I may remark in pissing that should the company make it a rule of writing off eight per cent. from the steamers' value it would be found that the amount accrued from steamers' working pure and simple will not suffice to provide the wherewithal for this prudent and advisable Iolicy. At present the assets of the company in cash and steamers, etc., amount to about $1,4 0,000 and yet the shares are quoted at half the value, viz., 20,000 shares at $35 per share, equal to $700,000. Why this disparity, is an oft enough heard question. It is simply because the company has proved itself, for a number of years past, incapable of earning dividends com- mensurate with the capital at its disposal. The prospect is anything but promising, and it requires no power of prescience to foretell that the position of the company will not only retrograde but there is every likelihood that the rate of retrogression will be such as to foredoom it to extinguishment much sooner than it should be pleasant to contemplate. Isn't it about time, with the experience of recent years, that the general managers in conjunction with the consulting committee should devis some means of turning the valuable assets of the company to better ends? I hear there is a syndicate who will be willing to offer $50 per share »nd buy up sider such a proposal, or will they endeavour to the company. Will the general managers con-
suggest any other scheme to promote the inter- est of the shareholders?
Mr. HOUGH-Mr. Chairman, I rise to a point of order. We are called together to pass the report and accounts.
Mr. PERRY-Excuse me, I am making remarks on the accounts as published.
Mr. HOUGH-I think Mr. Pery is getting very wide of the mark. We are having a seroed inflicted upon us.
Mr. PERRY-I am passing remarks, Mr. Chairman, on the accounts.
Further than the accounts and report you The CHAIRMAN-Keep to the accounts then.
cannot go.
lines more.
Mr. PERRY-I will finish, I have only a few
The HAIRMAN-Go on.
4
Mr. FEBRY-I should be ruled out of order were I to bring forward a motion to the effect at the present meeting; but I offer it as a suggestion, meriting, prompt consideration, that an extraordinary meeting be called for discuss- ing a question of vital importance such as my proposal involves and give the shareholders & chance to express their views on the matter. Before sitting down I may point out that hold. ing as I do a large number of shares, I feel I hare some justification in giving public utterance to some of my views.
The CHAIRMAN-We made some profit. Mr. PERRY-We are losing money. The CHAIRMAN--All our dividends, you say, are paid out of profits of steamers. That is not so. They are paid out of the actual earn- time. We got the interest on mortgage that is part of the capital, and can always get that.
Mr. PERRY-I know we can, but we want to know what profit you made on the earnings of the steamers.
The CHAIRMAN $50,000
Mr. PERRY-Excuse me, $38,000.
The CHAIRMAN-Apart from that we have got rid of two steamers the Thales and the Hailoony which were certainly not paying steamers. We have now three s'eamers earn- ing fair returns, and I believe, as said in the report, that at next year's meeting we shall be able to show a better result.
Mr. PERBY-I am afraid that is questionable. The CHAIRMAN-I don't know. Mr. J. R. MICHAEL-Is there any chance of improving our position by coming to terms with the Japanese ?
The CHAIRMAN-I am tired of trying. I have tried them again and again, but you know the Japanese. They say they will write to Tokyo, but never do. We can get nothing out of them although I have been in communication with them time and time again.
There being no further questions the CHAIR- MAN moved and Mr. WILKINSON seconded, the adoption of the report and accounts.
The motion was carried.
Mr. JUPP moved that the Hon. Mr. C. W. Dickson, Hon. Mr. R. Shewan and Mesars. C. H. Thompson and A. G. Wood be re-elected to the consulting committee.
Mr. MITCHELL seconded the motion, to which
the meeting agreed.
Mr. PERRY moved that Messrs. W. H. Potts and A. R. Lowe be re-elected auditors.
Mr. HOUGH-Mr. Chairman, I have much pleasure in seconding Mr. Perry's motion. The motion was carried unanimously. The CHAIRMAN-That, gentlemen, concludes the business of the meeting. Thank you for your attendance. I really hope at the next meeting to be able to give a better report. Dividend warrants will be ready on Sept. 25th,
CANTON AND HONGKONG 10E
COMPANY.
The second ordinary general meeting of the shareholders of the Canton and Hongkong Ice and Cold Storage Company, Ltd., was held on Sept 3th at the Company's office, 31 Queen's Road Central. Mr. A. F. Carrick (president) was in the chair, and there were also present: Chan A Fook (vice president) Tsang Yuen Kai, G. A. Watkius and Messrs. Chan A Tak (secretary).
The Chairman-You have before you the accounts set out and these present absolutely nothing which requires comment from me, the only transactions being those necessarily caused by keeping the property of the company together and the payment of such outsta ding accounts as the Directors thought justified in settling. Since the last meeting, several vacancies occurred on the Board of Directors, either by resignation or death of members. To fill there vacancies Messrs. Lai Hui Kwan, A. F. Carrick, N. M. Holmes and C. W. Mead have been nominated and these appointments now require your confirmation. Before moving the adop tion of the accounts, I wish to say that throughout this reason of apparent inactiv- ity the Directors have not been idle but during the past four months have effected a reorganizā-
No comments yet.
Private notes are available after approval.