March 5, 1908.1
CHINA OVERLAND TRADE REPORT.
167
seconded, the re-election of Messrs. H. P. White Captain TILLETT proposed, and Mr. WILES and E. Gosts to the Board of Directors. Agreed to.
It was proposed by Captain Unsworth, seconded by Mr. LEIRIA, and carried, that Messrs. T. Arnold and H. U. Jeffrion be re-appointed auditors.
The CHARMAN-That is all the businesi, gentlemeu. Dividend warrants will be ready to-morrow.
THE HONGKONG HOTEL CO., LTD.
secounts having been in your hands for some
Then I shall be pleased to answer any questions., and S. Silverstone be elected to the Board of lays, I will, with your permission, following
Mr. MICHAEL-Questions may crop up out | Directors, war nanal course, take them as read. The net of my remarks. It is needless to say that Mr. PARLANE Seconded, and the motion was profits for the half year ending 31st December, the result of the past half year's working carried. 1905, amount to $171,649.83 as compared with is a great disappointment. One shudders $328.201.51 for the first six months of the year. to think what would have been our position and $370,159.05 for the corresponding period of had the construction of the extensive new 1904, a falling off which I am sure we all dock been sanctioned which was so urgently greatly deplore. To this sum must be added pressed upon the shareholders not long the sum of 3501,832.27, the balance brought ago. We have fallen upon bad times, but I am forward from last account, and, after deducting to some extent disposed to look upon this as a directors' and auditors' fees, we have available blessing in disguise, inasmuch as it is perhaps for appropriation the sum of $662,232.10, which only natural that during a succession of good sum your directors propose, subject to your years one is liable to become over confident and concurrence, to deal with as follows:-To pay a get rather lavish in expenditure, both temporary dividend for the half-year of 12 per cent, or 86, and permanent. In bad times it more than per share, absorbing 3300,000, and to carry for ever behoves as to restrict expenditure, con. ward the balance, $362,232.10, to a new account, sistent with the maintenance of efficiency, and while, as I have already said, we must all deplore in case such a polioy might have escaped so poor a result for the past six months, it was,
the notice of the Board, I desire now to urge you will recollect, foreshadowed to some extent this upon their attention. Far be it from me in my speech to you from this chair in August to advocate low salaries, for instance, but last, when I said I was afraid from various
rumour has it, with what truth I do not know, osuses we could not look for any substantial that in some cases we are not receiving value improvement in the immediate future, and it is for salaries paid.. I earnestly draw the Board's to be regretted that the depression in business attention to this question, as well as to the then referred to continued throughout the apparently unnecessarily large stock of remaining months of the past year. Happily materials carried, and it will be satisfactory to since we last met, the peace between Russia and know that these and all like matters have the Japan then looked forward to has become constant, careful and thorough scrutiny of the accomplished and the improvement in onr busi-Board. I hope that the outcome of improve- ness confidently expected to result therefrom mente will be gradually shown to the share will, I trust, have become apparent before I holders not in words and hopeful prophecies have occasion to again address you. We but in tangible results. have not been idle in our efforts to already
The CHAIRMAN Any other remarks, secure a share of the work to be done gentlemen? There being no further remarks, in vessels of the Russian Navy, but owing I beg to propose that the report and accounts, to our No. 1 Dook being unable to accom.
as presented, be accepted. modate their battleship Czarewitch we have so far obtained no work for them worth mentioning and from this
also, gentlemen, I regret to say we lost the steamers Minnesota and Dakota, which were obliged to go to Japan to be docked. The tonnage of ships dooked during the last six months shows a slight falling off of some 290 tons, the figures
Cause
an
for merchant vessels stand at 458,312 tone as against 392781 for the last half year, and for war vessels 29,130 as against 95,000; of this latter only some 3,013 tons represent foreign men-of-war, but I hope that in this connection we shall see a considerable improvement during the current six months, as we have now on our books four American battleships, and with the resumption of trade with this port by Japanese steamers we may reasonably expect increased share of the merchant shipping. The new work in the shipbuilding yard referred to in my last speech has been carried on satisfac. torily, we have completed and delivered the three large steel steam waterboats, a steel water barge for the U. S. Government at Mils, two large wooden lighters for local use and two small steam tugs for service at neighbouring ports. The large steamer for the Yangtsze trade and the cargo lighter for Bangkok are making good progress, and we have recently secured an order for twelve large wooden lighters which, together with various contracts for steel work for the Hongkong Milling Co., cast-iron columns, etc., for new buildings help to keep our works profitably employed. The work of installing the electric drive in the saw mill is still in progress and will be completed during the present half-year on the arrival from home of the motom, and we have now on order an improved planer and a new lathe. The earnings of our dredger Canton River are small; the employment which I told you wa we had in view for her on the completion of her work at Canton having failed of arrangement. The value of materials on hand has increased during the period now under review by some $150,000, mostly for the new Yangtze steamer now building and other contracts. Gentlemen, with nothing further to remark, before moving the adoption of the report and accounts a presented, I shall be pleased to answer to the best of my ability any questions you may have
to put
Mr. MICHAEL-I had a few important ques- tions to ask, but at this juncture I think it is better to refrain. I will content myself by making a few a remarks, and would earnestly call the attention of the Board to them. It is
}
needless to say
The CHAIEMAN-I think we might first have the report put before shareholders, Mr. Michael
Mr. BAIN-Mr. Chairman and Gentlemen, I had intended to compliment the directors and yourself upon the way in which the Company's affairs have been managed during the past year, and after the confession on the part of Mr. Michael, and your own explanation, I feel inclined to emphasise that I consider that the Board has exercised an exceedingly wise discre- tion in the distribution of profits that have been male, and that the profits made have been wonder- fully good considering everything all round. Instead of severe criticism, or criticism of almost any kind, the Board deserves the greatest oredit for what it has done. It is all very well to blame the Board for not doing this, not getting business and not doing that, but this seems to be simply out of the question. The lean year is a lean year, and noefforts on the partof even the leading man on the Board could change that; there has been a lean year in other places besides this However, I should like to call attention to the peculiar condition which forces itself on my mind that the Board has done right. There is a class or section of shareholders who com- plain of the smallness of the dividend; there is another section which complains of the large- That forces me to the conclusion that the Board has selected the happy medium, and in its wise discretion has done the best thing in the interests of the solid and bond fide investors of the Company. One other thing I should like to call attention to, hat is the wisdom of the Board, as shown in re-electing yourself, Mr. Chairman, for another term of office (applause). All know the interest you have taken in the Company-the enormous amount of labour and trouble you have taken on its behalf-and I think that everyone of us agree, not only those present, but those absent as well, in the wish that you shall continue for a long time to come the same good service which you have given so long on our behalf (applause). With these few remarks, gentle men, I have much pleasure ja seconding the motion for the adoption of the report and the passing of the accounts as placed before us.
The motion was carried.
ness of the dividend,
The ordinary half-yearly meeting of share. holders was held at the Company's hotel and there were also present-Messrs. W. H. on March 3rd. Mr. E. (sborne presided, Potts, W. Parfitt (secretary), P. C. Potts, A. Turner, E. J. (directors), C. Mooney Chapman, T. Arnold, E S. Haskell, W. A. Cruickshank, W. Taylor, Ho Fook, Ho Kom tong, Lo Cheung-shin, and Gaptains W. E. Clarke and F. D. Goddard.
been read,
The notice convening the meeting having
propose, if you please, that the report and Tho CHAIRMAN said :-Gentlemen,~I accounts be considered as read,
1rofits for the latter half of 1995 dim nî hed con- siderably in consequenos of collapse of our liquor and extra meal business an unexpected indeed, so complete, so sudlen has been the must be due to excep ional and temporary obange, that we feel encouraged to hope it circumstances, amongst which is probably the ris in exchange. For the patrons of that portion of the Hotel business which is known
as the bar and extra meal account consist
more
largely of mercantile murine offers drawing sterling salaries, and it is assumed that with a reduced dollar income, they are, and properly did. The opening of a rival establishment has so, unwilling to spend so much as they formerly contributed to the fall, but not materially, This unweloomy state of affairs onos emphasises the fact that our dividends in out of profits on liquor, and if the falling the past have been paid in great measure off referred to be other than a passing wave of abstinence, we shall have to consider seriously an increase in charges to visitors— especially monthly residents or we shall have to practise some rather drastic economies Meanwhile we are using every endeavour to wards retrenchment without sacrifice of offi cienoy or comfort, and amongst other ohanges oil for steam in the engine department. The we hope to economise by is the substitution of dividend which we recommend does not, I am aware, meet with the approval of some share- holders, who are of opinion that the $20,000 set aside last year for new electric lifts should
now be utilised to increase the dividend this
half year. But as the electric lifts have not been paid for, your directors do not share that view, and we hope that the general body of shareholders will endorse their recommendations concerning the suggested appropriation of profits. I shall be pleased to answer any
questions.
diminution of earnings will be permanent, or is Mr. ABNOLD-Do you anticipate that this it merely temporary ?
The CHAIRMAN—It is very difficult to say, Mr. Arnold; I don't think it will be permanent myself.
premature in reducing the dividend. With Mr. ARNOLD-I think you have been a little regard to the electric lifts not having been paid for, I presume it makes no difference; it stands on the other side of the account as oredited, und has been provided for. So much has really been written off the electric plant so far, aud that I think these accounts could very well so much transferred to repairs and renewals, afford to wait until it has been shown that this diminution in the earnings is permanent or profits be appropriated in this way—that temporary. Therefore, I would suggest that the dividend of 10 per cent. be paid, absorbing $60,000; that only $4,000 be transferred to Mr. SALINGER proposed that the Hon. Mr.repairs and renewals; that $629.51 be written C. W. Dickson and Messrs. G. H. Medhurst on the value of the electric plant; and that
Mr. MICHAEL--If I am in order I would like to say that I think Mr. Bain has misunderstood me in saying that we are blaming the directors for not bringing business. My version was that we should ask the directors for retrench ment to suit the times. We are quite contented with our fate with regard to business, and cannot ask the directors to bring us any more.
The CHAIRMAN-The directors will pay dae consideration to the remarks of Mr. Michael, as they always have done.
|
No comments yet.
Private notes are available after approval.