December 6, 1909.]
Spring. The climate here is proving too damp for him, and his advisers recommend a return to the sharper air of North China. Neverthe less, Sir Robert looks greatly benefitted by the holiday he has had, in spite of his periodical illnesses.
COMPANY MEETING.
THE INTERNATIONAL COTTON MANUFACTURING CO., LTD,
The fourteenth annual meeting of the above named company was held at the company's office in Shanghai last week, Mr. C. Rayuer (Chairman) presiding.
The CHAIRMAN said:-The report and accounts have been in your hands for some days and with your permission I will, as usual, take them 38 read, Before mov- ing their adoption there is really very little to say in further explanation. The mill has worked satisfactorily on day work
only throughout the year and a fair margin of profit has been secured in spite of exceptionally high prices having ruled for the raw material; in fact, cotton prices reached a level of more than double the values figured on when the local mills were first started.. There has, un- fortunately, been no improvement in the vexed question of watered cotton, and, it seems, very little practical relief can be expected locally owing to the strong competition for the staple between local mills and Japan. The remedy would be to leave Chinese cotton severely alone for a season and to draw the necessary supplies from other markets where water is not added, but this is, I am afraid, only occasionally possible. With regard to the policy followed by your Board of working by day only, the same may have exercised the minds of some of our shareholders, and I wish, therefore, to assure you that the matter has had our constant and anxious consideration. We tried night work years ago and abandoned it, and our Mill Manager considered it his duty last year to advise us that the circumstances which militated against night work then still held good last fall. At the commencement of the present season we have again reconsidered our position and some features appearing to look more favourable we have decided to take up night work, and after careful preparation the mill has been so running since the 15th instant. rest assured that the results are being very You may carefully watched, and I trust we shall benefit by this new departure. With regard to the accounts themselves, thanks to the liberal provisions made in the past, the value of the mill equipment to-day compares favourably with other similar undertakings, and the improved financial position of the company secins a matter for congratulation.
If any shareholder desires information on points I have not touched upon, I shall be pleased to furnish same to the best of my ability.
There being no questions,
Mr. C RAYNER proposed, Mr. A.HIDE second. ed, and it was carried That the report and accounts for the year ending 30th September, 1909, as presented, be accepted and passed.
Mr. C. RAYNER proposed, Mr. A. HIDE seconded, and it was carried--That a dividend at the rate of 10 per cent., or Tls. 7.50 per share, for the year ending 30th September, 1909, be paid to shareholders.
The election of Mr. Jas. N. Jameson to the Board of Directors was confirmed, and Mr. F. Ayscough was re-elected a Director.
Messrs. Lowe, Bingham and Matthews were re-appointed auditors of the company for the current year.
THE E. E., A. AND C. TELEGRAPH COMPANY,
TRADE PROSPECTS IN THE FAR EAST.
CHINA CVERLAND TRADE REPORT.
495
ly, £8,000, due to the commercial depression that had been so severely felt in the Far result of the year's working is highly satis I think you will agree with me that the East during the last few year Fortunately factory, as the profit exceeds that of the they had been favourably affected by the previous record in 1905-6 by Tls. 37,163.83. dollar exchange conditions prevailing in For 1905-1906 a dividend of Tls. 10 was China during the past half year, and the declared, and the General Managers and increased revenue from this source had not consulting committee hope that the proposed only enabled them to wipe out the traffic loss, payment of a dividend for this year of but to show a few hundred pounds increase for Tls. 11 will have your unanimous approval. the past half-year. During the last month or It is only in good years that appropriations two there had been a little improvement in most can be made to our reserves, which, judging by of their traffic, which encouraged the hope that the history of Cotton Mills in China, it seems When he last addressed the shareholders he ensuring a regular and satisfactory return on the depression was beginning to pass away! highly desirable to build up, with the object of explained that in consequence of the Australian the capital invested. I, therefore, trust that Federal Government having laid and opened the addition of Tls. 100,000 to Equalization of cables of their own between Victoria and Dividend Account, and Tis. 30,000 to Repairs Tasmania when the company's "exclusive con and Renewals Account, also the writing down cession expired on the 30th of April last, of Furniture Account by Tls. 1,262.28, may be they had been obliged to close their passed by you. Georgetown and Flinders Stations, and intended when a suitable opportunity occurred to pick up their cables between Victoria and Tasmania and utilise them elsewhere. For this purpose their largest ship, the steamship Patrol, stationed at Singapore, was necessary, and as they had so far had no other cable work for her to carry out in Australian waters, the Tasmanian cables had not yet been picked up. Seeing, however, that their capital account had for some little time past been considerably over-expended, and that the original cost of the Tasmanian cable com- munication (£70,000) was included in the capital expenditure, it was considered advisable to write down the capital account by this amount and debit the general reserve fund with it. This had accord- ingly been done, and when the cables had been picked up and overhauled the account could be finally adjusted by crediting the reserve fund with the estimated value of the old cables after deducting the expense of picking them up and transporting them to Singapore. The report was agreed to.
Presiding at the general meeting of the Eastern Extension, Australasia and China Tele- graph Company held recently, Sir John Wolfe Barry said that the gross revenue was practically the same as in the corresponding period of 1908, the actual figures being £290.931 this year against £290,295 last year. It was only right, however, to mention that the traffic receipts again showed a falling off amounting to, round-'
+.
In reply to the comments of a shareholder the Chairman said that there were signs of some recovery in the Far East and other parts of the world. It was true the expenses had been increasing, and that the net revenue did not allow of their having so large a margin after payment of the dividend as in former He ventured to hope that the proprietors need have no great alarm that the dividend would be maintained for the present.
THE EWO COTTON SPINNING
WEAVING CO., LTD.
years
The annual general meeting of the Ewo Cotton Spinning and Weaving Co, Ltd., took place on the 20th ult. at Shanghai at the offices of the General Managers, Messrs. Jardine, Matheson and Co., Ltd. Mr. David Landale presided, and there were also present:--Messrs. A. McLeod, E. E. Clark and Zee Quai-yuen (Consulting Com mittee), Mr. Duncan McNeill (Legal Adviser), Mr. A. Brooke Smith (Secretary), Mr. J. Kerfoot (Mill Manager), Messrs. H. J. Clark, C. P. Shaw, W. S. Jackson, E. E. Deacon, R. Lob, S. Quelch, R. V. Hummel, F. J. d'Almeida, E. B. Broadrick, G. H. Potts, Yang Saw-hang, W. C. Murray, Brodie A. Clarke, H. de Gray, A. L. Anderson and R. Wingrove.
practically the same as they were in 1905, al- Property, Buildings and Plant Accounts are though numerous improvements have been made during the past four years, almost all additions having been paid for out of Repairs and Re- newals Account. You will more readily realize that your property is in first class order when I tell you that, since the 17th August, 1908, when we again commenced working at night, the Mill has been run day and night, with only three slight interruptions one for the cus- tomary. Chinese New Year holiday, and two amounting to 3 days stoppage in September, through the iuability of sellers to deliver Cotton -the crop being late-in accordance with their contracts.
In common with other mills in Shanghai we have lately had
more than the usual trouble over watered Shanghai Cotton-re- presentations to the Taotai, through the improve matters. I fear this evil practice Chamber of Commerce, have failed to will be availed of whenever the market goes against sellers, as it has done lately, unless the Chinese authorities take criminal action against persons found watering Cotton. The thanks of the shareholders are due to the staff at the Mill, especially the Manager, whose duties particularly arduous when the Mill is being run day and night.
are
come
I regret to say that, at the moment, the outlook for the new year leaves a great deal to be desired, as while we have contracted for sufficient AND Cotton to keep the Mill going until the end of February, and sold the whole of our production to that time, our margin of profit does not compare favourably with that of the corres- ponding three months of last year. The 1909- 1910 China crop does not promise to be a particularly large one, at anyrate Japan is taking such large quantities that some Shang- hai mills have already commenced to purchase Indian staples for January-March shipment, to guard against the possibility of a shortage of supplies. However, I venture to hope that the General Managers may be able to before you next account, but, as many of you are well aware, year with a satisfactory dear Cotton has never worked to the advantage of the Cotton industry. At the moment, Cotton has reached, what appears to me, a dar gerously high level, and the work of those At the request of the Chairman, a quorum engaged in the Cotton industry will be no sine- being present, the Secretary read the notice cure for the next twelve months. I do not convening the meeting.
know of anything further to remark upon, but The CHAIRMAN then addressed the share- I shall be pleased to answer, to the best of my holders as follows:-Gentlemen,- With your ability, any questions that may be asked. permission. I propose to take
the report No questions were asked, and on the pro- and accounts for the year ended 31st position of the CHAIRMAN, seconded by Mr.. October, 1909, which have been in your MCLEOD, the report and accounts as presented hands for the past ten days, as read. As were adopted.
a
.
the accounts show, we have experienced an The next resolution was, that a dividend of encouraging state of trade during the twelve Tls. 11 per share be paid to shareholders on the months under review. The 1908-09 crop of register. This was proposed by the CHAIRMAN, Cotton was not a good one, and it was found seconded by Mr. McLEOD, and carried un- necessary to purchase considerable quantities animously. of Indian Cotton for your Mill. Our Cotton purchases generally were well timed, considerable quantity being bought at this time last year when prices were on lower level than has since been the case. The Company's financial arrangements with the General Managers were such that they were able to take full advantage of the position. Demand for Yarn has been very healthy, and we have had no difficulty in disposing of our production at gradually advancing prices,
The CHAIRMAN explained that in accordance with Article XVII the members of the Consult ing Committee retired, but all were eligible and offered themselves for re-election. He, therefore, proposed that the Consulting Committee as at present constituted be re-elected.
The motion was seconded by Mr. BRODIE A. CLAKE and declared carried.
On the proposition of the CHAIRMAN, second- ed by Mr. G. H. POTTS, Mr. G. R. Wingrove was re-elected auditor for the ensuinging year,
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