332
THE HONGKON › WEEKLY PRESS AND
to
pay
to be a little hesitant about investing money in any other company. (Laughter). The gentle- men who have spoken are practical men and business men, and they have not spoken many words in favour of the Dock Company, but they bave speken in favour of the proposed company. But I am not perfectly satisfied that things are so favourable and I do not wish to sail out on a new ship and face a new storm. It has been said it would be very easy to secure the money the interest. Very well, then let the men who can secure the money and interest pay the Dock Company for its vainable property. I am ready to take my Tls. 25 and let the money go into the Dock Company, and let us use it for the development of its work. I am not willing to go into a new company. One is enough for me. (Loud laughter.) I do not know how many propositions have been brought forward. New propositions are always being discussed, and now comes this mammoth pro- position. The promoters are most sanguine. It is magnificent. They say That
is money sure to come in, and that a dividend of 14 per cent will be paid. Well, let the money come righ in-let it walk right in, but let these gentlemen pay the Dock Company for its valu.
properly.
Basets which we hold in this company that it is a business-like proposition that we ourselves should take up the question of developing these dead assets, for the benefit of the shareholders in | this company. That seems to me a perfectly sound business proposition. + have nothing more to say but that I second the amendment.
Mr. C. Holliday-I rise in support of Mr. Taylor's amendment to the resolution. He and Sir Charles Dudgeon have already dealt so fully with the matter that there does not appear any. thing left for me to say by way of elucidation. This I would like to say. I have been into the matter somewhat closely with the promoters and. As
Mr. Taylor will tell you if you ask him, all the awkward questions a mis. placed ingenuity could suggest. In the end I had to admit that taken all round the. scheme was sound and feasible. At any rate one thing was perfectly clear, it was no device on the part of the bulls or bears to boost up or to run down the shares of the company, but a business-like non-dividend and genuine attempt to turn a earning asset into a dividend earning one. ought to look at the matter in the dual capacity of prospectiva shareholders in the new com. pany, and shareholders in the Dock Company, Really and truly our interests are so identifidable that it is impossible to distinguish between them, Now as to the scheme itself. As far as my limited experience goes there is room for an other godown company in Shanghai, and I believe one which will take for its motto civility and efficiency is tolerably sure of success. (Applause) Of course iu a commercial under- taking there is always a risk and we shall no doubt bave our lean years as well as our fat
ones.
We
We
But I cannot help thinking that a fair return of capital over a series of years is prac- tically certain. I should like to emphasize the point that, grauted a new godown company is to be started, we are the people of all others at the present moment best suited to start it. have already got our shares in the Dock Company, and we shall continue to get a return on them, perhaps of Tls. 18 or 20 a year (laughter) so we can wait for the completion of
the the development of property in
had to pay for way that others, who their shares in cash would be unable to do. When the development is complete we shall still be getting our Tls. 18 or Tls. 20 on the Dock and in addition whatever dividends the new company may earn. In conclusion I commend Mr. Taylor's amendment to your favourable attention. (Applause.)
ä
Mr. A. L. Anderson.There is one thing that Mr. Taylor did not make quite clear in his able speech, and that is how, after the ten months have elapsed during which the Dock is to be partially filled up, these magnificent godowns are to be built, with electric light and lifts and cranes, how at the end of the first twelve months when the debenture interest falls due it is intended to pay it without any money, Does he expect to be able to pay the 7 per cent interest on the debentures after two months' working ? I should be glad to hear how it is to be done. I do not for one moment suppose that the principal would be used to pay the interest.
Mr. White-Copeer-The answer to that seems to be so simple that I am really soniewhat surprised at its having been put at this meeting. This company will not be the first company that will have taken some little time to com. plete its works. The usual practice at home in cases of this kind is to borrow more money than is required. The surplus of the borrowed then applied in payment of interest money until the earnings of the company are sufficient for it to pay the interest from them. Of course if you were to pay interest on borrowed money ont of your share capital you could not pay any dividends upon your capital until you had repaid the interest on the borrowed money. But if you have borrowed sufficient money to pay the interest there is no necessity to pay it from the earnings straight off. That is the answer to the question, and it is done at home year after year in the case of railway companies and other concerns which are not in a position to pay interest until cert in works have been completed. Mr. A. L. Anderson-Then I understand that part of the principal of the debentures is to be devoted to the payment of interest.
The Chairman- Exactly.
Dr. G. Beid-Having invested a little money in Messrs. Farnham, Boyd & Co., I have learnt
Mr. Taylor-Perhaps Dr. Reid would make an offer to rent the land at the opposite side to feed cows OB.
Mr. Read-I am prepared to take over Dr. Reid's interest at to-day's quotation straight
off
Dr. Reid accepted the offer.
Mr. Nielsen-Unfortunately I was unable to follow the discussion. The various speakers must have given some details of the profits I do not know expected of this concern. whether they have given us any hint of what we are to earn. I should like to ask how they have arrived at their figures, and if they consulted any technical people. We all know Marshall and another of course that Mr. gentleman represent big steamship companies. and naturally there is nothing more desirable as far as their business is concerned but to get more wharfage. I sympathize with them. If we were in the same position we should want to get the same thing. What I want to know is on whose authority the earnings of the company are based I have consulted some people whom consider authorities on the point, and if I have this question answered I shall be glad to give you what my authority says about the expected future earning capacity of company.
the
The Chairman-I call upon Mr. Taylor to
answer.
Mr. Taylor-I think Mr. Nielsen had better look at the report of my speech in the paper to-morrow. I do not wish to repeat all I have said.
Mr. Nielsen-I am sorry you will not repeat it I consulted a technical expert-(Cries of Name! name! name! as the speaker endeavoured to continue.)
The Chairman-What was the name of the expert?
Mr. Nielsen-I should have to ask his per- mission first. (Laughter.)
Mr. Anderson-The figures laid before us ware by Mr. Taylor himself. They were laid before us on the authority of Mr. Taylor, who, as we all know, is an authority- -on gold mining in Weihaiwei. (Laughter.)
Mr. Taylor-I told you what the space in the godowns would be. I can let you figure it out yourself. It seems to me a very simple pro. position.
Dr. Reid-I would like to have the views of
this other man. Why can't Mr. Nielsen give them without the name?
The Chairman (to Mr. Nielsen)-Can you give the figures without the name?
Mr. Nielsen-He said that if this company were started with a capital of Tls. 950,000 about one-third of what it is intended to start with, in his opinion it would be able to earu six per cent under very fauourable circumstances. How much would be earned on
a capital of Tis, 3,000,000 you can probably figure out fo: yourself by rule of three.
·
Dr. Beid.-I should like to know the opinion
of the Directors.
The Chairman.-The Directors are neutral. The Directors decided to leave the matter entire ly in the hands of the shareholders.
[November 12, 1906. -
The amended resolution, proposed by Mr. Taylor, and seconded by Sir Charles Dudgeon, was then put to the meeting and declared passed, 36 hands being shown in favour, and 22 against (Loud applause.)
Mr Taylor-I have much pleasure in pro
that the posing the following resolation: following gentlemen, Messrs. A. M. Marshall, C. R. Barkill, S. A. Hirdoon, L. Bridon, H. Delray, and W. H. Bacham be appointed, a« a comm tlest carry out the above resolution. (Mr. Taylor explained that the original revolu- tion was intended to refer to the two resolutions, but the second having been withdrawn, he would with the consent of the meeting alter the present resolution accordingly. There were no dissentients to this.) I wish to say that we are quite open to accept amendments to this resolution, or additions to it. All the gentle- men here named have kindly consented to take up this work, and you will see that we have three agents of very large shipping firms, and I think three pretty well-known busines‹ meu.
If you you could leave the matter to them. think your interests would be better secured
else by appointing someone
we shall be We shall however be happy to accept them. opposed to including anyone who has voted against this scheme.
Dr. Gilbert Reid--I beg to propose Mr Twentyman.
Mr. Hogg seconded Mr Taylor's resolution. The Chairman-I am afraid. Dr. Reid, you cannot put a man on the Board who has retired and is living out of the place.
Mr. S. Laurence-Might I ask if any cash offers for this property have been received ?
The Chairman -None, Sir. No cash offers were received.
The resolution was carried without dissent,
SHANGHAI RACES.
FIRST DAY.
SHANGHAI, November 5th. A cold wind, with intermittent showers, accompanied the opening of the races to-day: and the course was somewhat "slow." Results were as follows: --
MAL O PLATE, Tls. 250. half mile, 25 entries. ' Mr. Kanuck's Hokoku, 55 lbs, (Mr. Vida) Uncle Charlie's Coriander 155 lbs. *
(Mr. Moller 2 Mr. Neslaap's Rhone, 55 lbs, (Mr. Kremer) 3
Time 59-1/5 secs.
CRITERION STAKES, Tls. 410, one mile, 23 entries. Mr. Copenhagen's Cosmopolitan, 155 lbs. (Mr. Moller) Mr. John Peel's Cotswold ..
dead heat
158 lbs, (Mr. Johnstone, Mr. Quebec's Celtic 161 lbs (Mr. Meyerink) 3
Time 2m. 5- 15 secs.
Maiden Stakes Tls. 400, 3 mile, 62 entries. Mr. Ashford's Moriak, 155 lbs,
{
(Mr. Dalgliesh) 1 Messrs. Common and Robson's Mark Time,
158 lbs, (Mr. Burkill) 2 Mr. John Peel's Badsworth, 122 lbs (Mr.
Johustone) 3
Time 1 m. 31 3/5 803. Club Cup, Tls. 250, 2 miles, 21 entries. Mr. Durgor's White Blaze, 155 lbs,
(Mr. Crighton) 1 Mr. Fas' Comanche, 158 lbs, (Mr. Moller) 2 Mr. G. H. Potts' Norman King, 155 lbs, (Mr. Cumming)
Time 4m. 33 3 5 secs. Pon-ma-ting Cup, Tls. 250, griffins only, one mile, 55 entries. Mr. Marius' Aurelius, 152 lbs,
+
(Mr. Meyerink) 1 Mr. Oberlin's Raceland, 155 lbs,
(Mr. Sobnorr) 2 Mr. Nephew's Caselor 155 lbs, (Mr. Hayes) 8
Time 2m. 7 1/¡ socs.
entries.
***
FAH-WAH Stakes, Tls 250, 11 miles, 23
Mr. Marius' Argante, 155 lbs. Mr. Fobson's Laveader, 158 lbs, Mr. John Peel's 4rd Patrick, 155 lbs, ..
Time 3m, 50-1/5 secs.
...
(Mr. Meyerinh) 1 (Mr. Burkill) 2
(Mr. Johnstone) 8
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