ཡ ་ ་
July 23, 1906.1
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up
the Viceroy down concurred, on the market. Unfortunately Peking took it into its head to send down a new Fantai, who proved to be of the new school of which the present Nanking Viceroy, and the late Tuotai YUAN, of Shanghai notoriety, belong. Nothing was at first ostensibly done, and Mr. LITTLE arranged with the lea ling bankers in Chungking to issue shares in return for deposits, and some seven hundred had been actually applied for locally, and everything was ready for the final issue of the prospectus; it being understood that both natives and foreigners were at liberty to become shareholders. When then the date of issue was fixed at Shanghai, and telegraphed up to Chungking, everything seemed in order to begin. The first intimation that there was likely to be any hitch came from the native bankers at Chuugking, who without assigning any reason suddenly refused to receive the deposit from the native shareholders. It subsequently turned out that they had withdrawn under threats from the officials, owing to the influence brought to bear on the Viceroy through the new Fantai. In Shanghai the full number of shares were, however, subscribed for, but there being a necessary need for further surveys, and a good deal of preliminary work, such as the making of a small convenience fram, to be taken before the real development of the mine commenced, only the preliminary call had been paid up. Under the concession the time for starting the company had been limited, and the first step taken was to make an attempt to entirely cancel the agreement, this period having been unavoidably delayed a few weeks; this with some difficulty having been got over, the next step was to question the validity of te new company-first because half the shareholders were not Chinese, and next because the entire capital had not been paid into the bank at Shanghai. With regard to the first it was explained that it was entirly owing to the obstruction of the officials in Szechwan, who had forbidden tho payments of the native subscribers to be received, that the number of native share holders was less than had been anticipated; but that in any case there had been no stipulation as to the number, and that there were actually a number of native shareholders whose subscriptions bad been paid in in other places. To the second objection it was shown that it had never been intended to call up all the capital in the first instance, that not being the custom where foreign companies were concerned, there being actually no need to call for the remainder of the capital till the preliminary works were further advance., Unfortunately the term of Sir ERNEST SATOW as Minister expired at this time, and local officials took advantage of this to obstruct in every way the works. An engineer, who had been sent up to make the preliminary surveys for the convenien e tramway to the Kialing River, which had been included in the concession, was not permitted to get to work, and practically everything has been done that the most perverse ingenuity could suggest to render the entire concession nugatory.
The present case is the more noteworthy that every requirement had been scrupulously observed on the part of the concessionaires, and every allegation made had been successfully refuted.
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We have gone the more fully into this case as an instance of the lengths the reactionary party, at the moment in the ascendant, is prepared to go to gain its ends. In this particular case there is no allegation of any interference with native
OF
the
CHINA OVERLAND TRADE REPORT. ideas or wishes; the entire province was, in businesslike than they would be a fact, in favour of the scheme, and the individuals i‹ very graat The change in opposition has proce ded from these clique the management of " Farnham's" does not who all through the empire are prepared seem to have restored the confidence that for the most selfish ends to jeopardise the was lost. It is alleged that the new men good name of their country in the eyes of have allowed the old mad, bal ways to the world. It is on a par with the farce continue. One charge is that the last being enacted with regard to the Canton dividend paid was more thin the company Hankow railway, and which would exclude earned; aud « critic asks if the liquidators · every means of communication with outer are going to make any enquiry into nations, and revive the bad old times of finance that prompte! the payment of Kiaking and Taokwang. There can be but certain dividends—no‘oriously the one that one ending of such a policy and that is to completed the annual dividend of 28 per bring China again into collision with the cent". Nothing was written off for depre- Powers; and the inevitable result of suchciation of plant and stick, which iuclu les a struggle must mean the entire destruction | such deteriorating properties abiers au l of China's independence as સ nation. Chinese tenement. The gentlemen who Against this eventuality England more were elected liquidators, a shareholder especially has been struggling for many thinks, should have had sufficient courage years; but it is characteristic of the little to discontinue the error of their predecessors understanding of affairs possessed by the who paid unearned dividend, whereas they new party that it is precisely against had taken for the purpose Tls, 30,000 from England that the principle of exclusion is previous years' profits. Some dissatisfaction the most rigorously directed.
has also been expressed with the audit certificates; the sketchy manner in which soufe auditors perform their important duties has lately begun to attract attention ; and doubtless public opinion will lead to their really earning the fees they receive. The most interesting statement of all is the one that " perso al friendship prevents acrimonious remarks in Shanghai”. Sɔ it ought, and, we my add, it ought to prevent anonymous attacks and criticisms. But the meaning of the state nent will be well understood by all who know anything of the conditions attending company mau ge ment in the Far East. For "personal friendship" should be read "other business relations", and then it becomes quite clear bow a crop of anonymous criticism is so olten followed by the raport, "There were no questions, and the report and ace sants were passed"It is giling, pure gambling, which seems to have ruined the reputation of this most important busin 188 of a most important port. “Farnha'n's have been what the brokers call a “fl id stock, which we take to mean a stock more than usually favoured by bulls and beirJ. 'The moral for investors seems obvious.
DEPRECIATED DOCK SHARES.
看着
to cause the ex-
PALMERSTONIAN HAND WANTED.
"
(Daily Pres‹, 25th Julv.) Undoubtedly the most sensational feature of recent share reports has been the slump in "Farnham's ' as they are usually called on the local "Rialto". The price of the shares has been on the decline ever since the New Year, when they were supposed to be worth anything from Tls. 140 to Tls. 150. In the last three or four months their fall was accelerated, and last week, when the liquidation meeting was beld, what a contemporary very properly calls panic prices were touched. At the outset it may be as well to admit that there has been more panic than reason traordinary reduction in market value; and any genuine investor who, for ho better cause, has been persuaded to sell out now can claim little sympathy over his loss of something like six hundred pounds sterling per bundred shares. Farnham Boyd's, or. as it is now called, the Shanghai Dock and Engineering Co., is a sound concern enough, which even in its least busy times, with proper management, may be expected to afford a safe iuvestment with souble returns. Unbappily for the ordinary in- vestor, however, the shares appear to have become a popular medium for gambling
(Daily Press, 26th July.) and it is these gamblers who have cused Inspired by Dr. MORRISON, than whom it all the trouble. For it seems fairly clear would be difficult to find a more trustworthy that in former days there was some specula councillor, the Times has been urging the tion by men whose interest in the business British Government to "assume the position should have been more identified with the due to our paramount interes.s, and to interest of the sharehol·lers generally than enforce a satisfactory settlemut with the
the case.
Any suspicion of such Chinese Government, independently of
necessary". This was said with operations attracts the outside speculator us
to the administration of the Carrion attracts vultures. Whether they belation "in the know", or only think they are, the Settlement of Shanghai. That settlemu, fluctuating value of the shares tempts them the pulse of our particular “sphere of more than a steady quotation; and their influence", is techuically an international intervention, of course, adds to the uncer- settlement. but we suppose in the event of a settlement of its status as a settlement, tainty and increases the troubls. presume it will be admitted that company that Great Britain's "paramount interest4" scrip not really intended to play the part would be recognised. Ar all events, they of lottery tickets, and that the price of stock should not be overlooked for want of in a normally healthy concern should not claiming, and are g'al that such ordinarily imitate the jumping-jack. The influential authorities are not disposed to best of directors, too, especially in ecm. ignore the pre-eminent claims of the British. munities where personal and other business Shanghai, with its finicking representatives relations
ure of lesser Powers whose interests There are are a0 much involved,
not to be compared with the British, has embarrassed by the condition at which we have hinted. The man who "jumps in and ong been a sort of mirror_reflecting_the out again cares little about building up position of China and the Powers. Touse reserves or allowing for depreciation. He with least at stike bave had the most tu wants, in addition to the artificial profits say, and, owing to the extraordinary that he makes, as much extra cumshaw lethargy and supineness of the British from dividends as he can get. The ordinary nation in the last few decades, they have iuvestor also rarely objects to fat dividends, succeeded in hindering and hampering so that the directors' temptation to be less I negotiations with the stupid officials ng tinst
was
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