August 2, 1909.]
COMPANY MEETING.
THE INDO-CHINA STEAM NAVIGA. TION CO., LTD.
The twenty-eighth ordinary general meeting of the above Company, 29, Cornhill, E.C., on the 29th ult., Mr. W. Koswick, M.P., Chairman, presiding.
The CHAIRMAN said: Que of our colleagues, Mr. Walter Fisher, is unfortunately not with us to-day, as he has been called to America for a short time. The Report which the Directors submit to you to-day, we again regret, shows an unsatisfactory result, the earnings of the steamers having for the year proved insufficient to meet the necessary outgoings. We are not singular in this experience, for the shipping industry throughout the year, and in all parts of the world, has been seriously affected by the severe depression that has prevailed. This is of course, but poor consolation, and only shows how general has been the shrinkage in the employment of shipping. The President of the Chamber of Shipping in his inaugural address in February last de- scribed the position of the shipping trade in these words :----
"The depression which existed in the ship- ping industry during the year just past has been the worst for shipowners that they have ever experienced. Depression marked its opening, continued to its close, and is still continuing. In all directions the margin of profit on trading has been almost nil even without taking into account the depreciation of property-and in many instances direct loss has been incurred.
"A monentary spurt in some particular trade has now and then taken place during last year which encouraged shipowners to look hopefully to the immediate future, but a short time afterwards their hopes were falsi fied and freights receded even to alower depth than they had previously touched. Not only has this been the case with cargo steamers passenger and cargo liuers have also suffered." And I would ask you to refer to the Report of the Norddeutscher Lloyd to see that depression has extended also, and seemingly as severely, to other than British shipping. The outlook now. however, is less unsatisfactory than when we last met, for whereas it was then extremely difficult to obtain employment at remunerative rates of freight, we are now experiencing im provement which we trust will continue, as in our particular trades there has been considerable dispersion of superabundant tonnage, and pros- pects appear more reassuring.
CHINA OVERLAND TRADE REPORT.
I now touch upon the insurance question which, when we last met, was commented upon. In former years the Company ran a very sub- stantial line in the underwriting account when rates of premium were materially higher than at present. Immunity from serious accident for many years permitted the accumulation of sub- stantial balances at credit, which the Board regarded as a part of the profits made on that branch of their business HS of the Company's own steamers, and, from insurers
time to time, the account was drawn upon to supply a part of the Depreciation and to augment the general profit of the Company. In 1908, however, insurance competition became very keen and rates were reduced to so low a level that it became evident a change of policy was desirable. It was, therefore, decided to effect the insurance of the greater portion of the marine and fire risks with Lloyd's and the Companies, hich was done at favourable rates of premium and the Company now takes only 15 per cent. of the marine insurance risks.
You will observe in the Report that the Board is, through a committee, examining and considering the heads of expenditure and organisation with a view to seeing if it be possible to effect economies in the working of the fleet. In these remarks I have endeavoured to place a clear statement of the Account and of the position before you. If, however, I have not succeeded in making any point clear or if I can give further information thereon I shall be happy to do so. I beg to move-" That the Report of the Directors and the Accounts for 1908 as presented be approved and passed."
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Mr. E. BEAUCHAMP, M.P., seconded the adoption of the report, and a score of questions were then put by two shareholders.
Mr. HUMPHRIES suggested that there had been overbuilding, and said that if for various reasons profits were unattainable it would be better to wind up the company while its capital was still intact. He also suggested that the general managers. Messrs. Jardine, Matheson and Co., should be paid on the basis of a fixed sum annually and a handsome commission on the net profits instead of on the gross freights.
Another shareholder also asked a number of questions, suggesting that the agreement with the general managers should be altered, and expressed the opinion that Mr. Keswick, a partner in the firm, should resign the chairman- ship of the
and make company
for a younger
man.
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way
The CHAIRMAN, in his reply, said it would re- quire very clear evidence to convince him that any economies had been disregarded which it was possible to observe in the efficient care of the business and the making of the utmost efforts to secure the best possible results. With regard to a question as to ho inspired the We have made the same ample provision for partners of Messrs. Jardine, Matheson and Co., the Depreciation of the feet as on the last occa- resident in t.ongkong and Shanghai. to give sion and to do this and to provide for the ont freely two months ago that no dividend outgoings of the year we have taken £80,000 would be paid, the speaker said he was absolutely from the Underwritingccount and we have ignorant of anything of the kind having taken again had recourse to the General Reserve Fund place. When prosperity returned again to which is closed by the transfer of £10.000 to the shipping trade of the world, he Profit and Loss. The transfer from the former tiuued. he had no doubt that there would account leaves a balance at credit of £143,891 be again a period of prosperity forthcom- 18s. 11d., a sum more than sufficient to meet any ing for the company, and to wind it up conceivable call upon the fund for marine. would be a crime committed against British loss and averages. The various items in the interests in China. As to the agreement with Balance Sheet and Revenue Account do not, the general managers, any change would have think, call for special remark; we have had to to be affected by mutual consent, and it meet the usual charges for the year, such as certainly not the caso that they were making Interest on Debentures and General Expendi- unduly large earnings out of the company, ture Charges, which are much the same as for The polite hint to himself to resign his position last year.
We hope to be able. given more he should ignore unless it was the desire of the prosperous times, to deal more drastically with Board that someone else should occupy that the writing down of the item which figures on position. He had fulfilled every duty which the credit side of the Balance Sheet for deben-devolved upon him as chairman. He added ture expenses. After meeting all outgoings, including Depreciation, the transfers made will enable us to carry forward £15,162 Os. 8d. to the new account.
It is a matter of regret to the Directors that they are unable to recommend the payment of a dividend on this occasion, but if the improved conditions I have alluded to continue, it may be found possible later in the year to pay a dividend
on the Preferred Shares.
During the year there have been issued £11,000 of Debentures, which, with the amount previously issued and bonds for £60,000 placed with bankers and made available to meet possible requirements, represents in all £325,825,
was
that the company had not, in his opinion, done more than meet the requirements of trade so far as new ships were concerned.
The resolution was then put to the meeting and carried nem. can.. Messrs. H. Humphreys and R. H. R. Burder abstaining from voting and desiring that the same should be recorded.
The
The CHAIRMAN then proposed that:-" retiring Directors, Mr. W. Paterson and Mr. W. W. Dickinson. be re-elected," which was | seconded by Mr. H. Beazley, and in response to a request of Mr Burder that the Directors should be put up separately for re-election, he took the sense of the meeting on the proposi- Įtion, which was adverse to the suggestion.
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Mr. W. PATERSON defined his position as Director in a few remarks, and the motion was then put to the meeting and carried nem. con.
Mr. W. CUMIN SCOTT asked for how long improvement in steamer employment had been noticeable, and the Chairman stated that with the opening of the Northern season this year matters had taken a turn for the better.
Mr. R. GALFORD proposed that:-"The
re-elected at the same remuneration as formerly," Auditors, Messrs, Turquand, Youngs & Co. be
which was seconded by Mr. J. R. Michael and carried unanimously.
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Mr. W. CUMIN SCOTT proposed a vote of thanks for the Chairman and the General Managers of the Company, adding that he did not perso nally know the gentleman who occupied his holding that position. the chair, but he had very great confidence in
Mr. M. L. HUTTON seconded the motion, which was unanimously accepted.
The CHAIRMAN suitably responded and the meeting then terminated.
COMPANY
REPORT.
THE HONGKONG, CANTON & MACAO STEAMBOAT CO., LTD.
The Report of the board of directors to the ordinary half-yearly meeting of shareholders to be held on Tuesday, the 10th August, is as follow :--
The directors beg to submit to the share- holders the report and statement of accounts for the half-year ending 30th June last.
After paying running expenses, salaries, premia of insurance, repairs and all other charges there remains, including $20,279.30 brought forward from last account, the sum of $171.170.01 at credit of Profit and Loss account. From this amount the directors recommend that a dividend for the half-year of one dollar and twenty-five cents per share, or $100,000, be paid to - shareholders, $20,000 be written off book value of steamers, 810,000 be written off wharves and properties, $ 0,000 be transferred to de- preciation and insurance fund, $10,000 to special repairs fund, leaving a balance of $21,170.01 to be carried forward to new account.
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The usual overhaul and repairs have been effected during the half-year and the steamers are all in good running order.
Messrs. G. FRIESLAND and C. H. Ross re-
signed their seats on leaving the Colony, and Messrs. JW. BANDOW and C. E. ANTON were nominated by the Directors to fill the vacancies subject to confirmation by the shareholders at this meeting.
In accordance with the Articles of Association Messrs. C. LENZMANN and H. E. LOM KINS retire from the Foard by rotation, but being eligible, offer themselves for re-election. GOURDIN and W. HUTTON POTTS, offer them- The retiring Auditors, Messrs. A. O'D.
selves for re-election.
Hongkong, 20th July, 1909.
LIABILITIES.
R. SHEWAN,
Chairman.
Amount of capital, 80,000 shares
of $15 each fully paid up Amount at credit of depreciation Amount at credit of equalization
and insurance fund
of dividend fund....... Amount at credit of investment
Buctuation account Amount at credit of special repairs
fund Unclaimed dividends Sundry creditors Bills payable Amount at credit of profit and
loss a/c....
ASSETS.
Value of steamers Hon am, Heung- shan, Sui-An, Sui-Tai and Hoi Sang, ths of Kinshan and 3rd of Sainam, Nanning, Lintan, and Sanui Value of lighters Sunlee and
Wolee
$1,200,000.00
607,500.00
250,000.00
119,267.35
12,645.83
3,717.25
36,893.69
41,981.60
171,170.01
$2,443,175.73
$1,063,000.00
7,636:60
+
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