February 15, 1909.]
COMPANY REPORT.
HONGKONG AND SHANGHAI BANKING CORPORATION,
The eighty-seventh report of the Court of Directors to the ordinary half-yearly general meeting of shareholders to be held at the City Hall, Hongkong, on Saturday, the 20th February, is as follows!—
To the Proprietors of the Hongkong and Shanghai Banking Corporation.
GENTLEMEN,-The Directors have now to submit to you a general statement of the affairs of the Bank, and balance sheet for the half-year ending 31st December, 1908.
The net profits for that period, including $2,005,774.81, balance brought forward from last account, after paying all charges, deducting interest paid and due, and making provision for bad and doubtful accounts, amount to $5,644,125.65.
The Directors recommend the transfer of $500,000 from the profit and loss account to credit of the silver reserve fund, which fund will then stand at $14,500,000.
After making this transfer and deducting remuneration to Directors there remains for appropriation 5,129,125.65, out of which the Directors recommend the payment of a dividend of two pounds sterling per share viz.: £240,000 and a bonus of five shillings sterling per share, viz.: £30,000 amounting in all to £270,000 which at 1/82, the rate of the day, will absorb $3,122,891.57.
The balance $2,006,234.08 to be carried to new profit and loss account.
DIRECTORS.
The Honourable Mr. W. J. Gresson has been elected Chairman for the year 1909, and Mr. H. E. Tomkins Deputy hairman.
1
Mr. R. Shewan, Mr. E. Shellim and the Honourable Mr. H. A. W. Slade retire in rotation and being eligible for re-election offer themselves accordingly. The Directors very much regret to have to record the death of their colleague M. C. G. R. Brodersen last October. Mr. H. A. Siebs has been invited to, fill the vacancy: this appointment requires confirmation at this meeting.
AUDITORS.
The accounts have been audited by Mr. W. Hutton Potta and Mr. J. W. C. Bonnar, who offer themselves for re-election.
E. SHELLIM,
Chairman.
Hongkong, 9th February, 1909.
Abstract of Assets and Liabilities, 31st December, 1908.
Sterling reserve fund, £1,500,000
LIABILITIES.
Paid-up capital
...
@ex. 2/-
Silver reserve fund
Marine insurance account
Notes in circulation :—
Authorised issue
against secur- ities and coin de- posited with the Crown Agents for the Colonies and
their
trustees Additional issue authorised by Hongkong Or- dinances against coin lodged with the Hongkong Government
$15,000,000.00
$15,000,000.00
15,000,000.00
14,000,000.00 250,000.00
20,006,779.00
5,006,779.00
Current Accounts:-
Silver
·Gold £7,835,952
88. 2d=...
892,179,322.53
90,613,930.34
182,793,252.87
$60,741,375.15
Fixed Deposits:
Silver
Gold £4,759,798
14s. 6d. 55,044,073.73
*Bills payable (including drafts on *London bankers, call loans and and short sight drawings on London Office against bills re- ceivable and bullion ship- ments)
***
115,785,448.88
15,543,824.40
CHINA OVERLAND TRADE REPORT.
Profit and loss account...
Liability on bills of exchange re-discounted £3,783,112 88. 2d. of which £2,786,448 188. 5d. have since run off.
ASSETS.
Cash Coin lodged with the Hongkong Government against authoris- ed and/or excess note circula- tion Bullion in hand and in transit, Indian Government Rupee
other
paper
5,644,125.65
$384,023,430.80
$51,759,923.38
COMPANY MEETINGS.
129
HUMPHREY'S ESTATE AND FINANCE CO., LD.
The ordinary annual general meeting of shareholders in the Humphrey's Estate and Finance Co., Ld,. was held at the registered offices of the Company, Alexandra Buildings, st noon on Feb. 6th. Mr. H. Humphreys presided, 13,000,000.00 and there were also present, Dr. J. W. Noble; 5,450,265.90 Messrs. J. A. Jupp, H. A. W. Slade, J. W. C. Bonnar (directors). E. Seth (secretary), J. M.G. 2,673,731.33 Machado, Ho Fook, J. M. Wong, W. E. Clarke, H. Percy Smith, D. K. Mosa, W. A. Dowley, 11,591,068.25 C. B. Buyers, H. Summers and Captain T. P.
Hall.
Consols, Colonial and
securities... Sterling reserve fund investment viz :
£1,208,000 21 per cent. Consols at
I'
82
.£990,560
(of which £250,000 lodged with the Bank of England as a Special Lon- don Reserve.) £255,000 23 per
cent. National war loan, at 90 £325,000 Other
sterling securities, written down to...279,940
229,500
£1,500,000@x2/-15,000,000.00
Bills discounted, loans and
credits Bills receivable Bank premises
GENERAL PROFIT AND LOSS ACCOUNT. Dr.
To amounts written off :-
Remuneration to Directors To dividend account:-
per
$2,775,903.61
Dividend £2
share on 120,000 shares £240,000 at 1/8- Bonus 5/- per share on 120,000 shares £30,000 at 1/83 $ 346,987.96
The CHAIRMAN said:--Gentlemen,—With your permission I will follow the usual custom and take the report and statement of accounts as read. Reference has been made in the report to the opening of a new account" Typhoon and Floods Insurance Fund" by the transfer to same of the amount previously appearing under the heading of "Fund for Equalization of Dividend" for which we obtained the sanotion of the Share- holders in October last and to the withdrawal of $6,738.06 from this fund. On the other hand during the year $4,746.12 has been added to the Insurance Reserve Fund which represents the value of expired fire risks underwritten by our- ́‚ selves. Turning to the Accounts, your will see that the amount invested in property has been increased by a sum of $79,992.26 being amounts paid on account of the contract for 120,074,613.25 the erection of a blook of six three-storied build- 162,767,471.23 ings in Robinson Road, Kowloon, now nearing 1,706,357.46 completion. All the flats have already been let, also one of the shops. This blook has been built $384,023,430,80 on a portion of one of the three lots purchased in June 1906. I might mention in regard to this purchase that ten per cent of the purchase money was paid in cash and ninety per cent viz:---$346,453.20 remained on mortgage free $15,000.00 of interest until 31st December, 1908, so that the Company will commence paying. interest at the rate of six per cent per annum on this sum as from the first of this year, It was the original intention of your directors to build on a larger scale than they have done on the ground thus accrued but the lack of demand for all kinds of property to which I made reference at our last annual meeting has again been a conspicuous feature of the year under review and in consequence the prosposed building programme was considerably curtailed. Our liabilities under the heading of "Sundry Creditors are larger by $85,768.05 mainly in consequence of the new buildings at Kowloon just referred to. Rents show a falling off of $7,349.97 but this is more than accounted for by the fact that Marine Lot 48, for which we used to get $1,100 a month and taxes, became vacant in April last and is still vacant. You will observe that no appropriation has been made in the report for remuneration to General Managers and Directors. Under the clauses 72 and 82 of the Articles of Association the Directors and General Managers are only entitled to their 5 per cent. commission on the net profits for each year that the same amount to seven per cent of the capital of the company. Under this arrangement Directors get nothing in bad times and the General Managers practically nothing. I say practically nothing in the case of the General Managers because I estimate they make perhaps $1,000 to $1,500 per annum clear on their allowance. If the bad times are going to continue it is possible shareholders may be asked to make some change in the Articles relating to remuneration as they were framed when everything in the Colony and property in particular was booming. I have nothing $15,000,000.00 further to add, but, before moving the adoption of the report and statement of accounts I shall $15,000,000.00 | be pleased to answer any questions shareholders
may have to put.
-$3,122,891.57 To transfer to silver reserve fund 500,000,00 To balance forward to next half-year 2,006,234.08
By Balance of Un- divided profits,
Cr.
30th June, 1908 ... $2,005 774.81 By amount of net profits for the six months ending 31st Dec. 1908, after making provision for bad and doubtful debts, deducting all expenses, and in. terest paid and due...
3,638,350.84
$5,644,125.65
$5,644,125,65
$ 5,644,125,65
STERLING RESERVE FUND.
To balance £1,500.000 at ex. 2/-. $15,000,000.00
(invested in Sterling Securities.)
$15,000,000.00
By balance 30th June, 1908
$1,500,000 at ex. 2/-
To Balance
SILVER RESERVE FUND.
By balance, 30th June, 1908, By transfer from profit and loss
account,...
There being no questions, the CHAIRMAN $14,500,000.00 moved the adoption of the report and account.
Mr. DoWLEY seconded, and the motion was
$14,500,000.00 agreed to.
The CHAIRMAN moved the re-election of Dr. $14,000,000.00 J. W. Noble and Messrs H. A. W. Slade, J. Scott Harston, J. S. Van Buren, J. W. C, 500,000.00 Bonnar and Ho Tung to the directorate.
Mr. Moss seconded, and the motion was 14,500,000.00 * carried.
No comments yet.
Private notes are available after approval.