Dearie:Russell Family History

The Malay Mail Tuesday 16 September 1919.p.8 and edited version in MALAYAN COLLIERIES, LTD. [Articles] The Straits Times, 16 September 1919, Page 8

Malayan Collieries Coal Sales Total 179.831 Tons. 15 per cent Dividend. The Directors’ of Malayan Collieries, Ltd., in submitting their sixth annual report and statement of accounts for the year ended 30th June, 1919, state: Titles. - During the year application was made for conversion to a mining lease of a further 5,858 acres, making a total area held under lease approximately 9,235 acres. The prospecting licence was not renewed over the balance of the original concession. Mines and Plant. - An account of these will be found in the Mine Manager’s sub-joined report. Coal Sales. - These totalled 179,831 tons as against 161,272 for the last financial year, and 135,663 for the previous year. Prospecting. - Work was carried on vigorously during the year under review and a large extension in depth of the Great Seam has been proved. The Mine Manager states that this seam contains 5 millions tons of good clean coal. Private railway Line. - The extensions to the Company’s private line amounting to 3 and half miles were completed and are now in use. London Agents. - Messrs. J.D. Hewett and Co., of 101, Leadenhall Street, London, were appointed the Company’s financial agents. Consulting Engineers. - Messrs. Forster Brown and Rees of Cardiff and London continued as the Company’s consulting engineers. Profits. - The profits for the year, subject to Directors’ Fees, amount to $407,788.46; less interim dividend 5 per cent. paid on February 15th, 1919, $75,000.00; making $332,788.46; to which must be added the balance brought forward from last year’s account of $15,094.04; leaving $347, 882,5; which the Directors recommend should be dealt with as follows: - Payment of a final dividend of 10 per cent. on 150,000 shares, making 15 per cent for the year, $150,000.00; balance to be carried forward to the next year’s account, $47,882.50. Directors. – Mr. Adolf Alois Henggeler and Mr. John Archibald Russell were granted leave of absence in February this year, the latter appointing Mr. R. C. Russell to act as his alternate. The retiring Directors are the Hon. Mr. Robert Peebles Brash and Mr. Chew Kam Chuan, who being eligible offer themselves for re-election. Auditors. – Messrs. Evatt and Co. retire, but being eligible offer themselves for re-election. Mine Manager’s Report. The report of the Mine Manager Mr. T.L. McCall, is as follows: - Coal Sales.- The sales of coal for the year under review amount to 179,831 tons. This output was obtained as follows:- Main Seam South Mine 70,601 tons Main Seam North Mine 96,755 tons Great Seam No. 1 Opencast 5,791 tons Great Seam No. 2 Opencast 6,684 tons Total Coal Sales 179,831 South Mine, Main Seam. - The main incline has not been advanced but branch roads have been driven ahead and have proved an additional 300 feet of ground. The coal so proved is free from faults and continues to dip at an even grade. The footage of the exploration work ahead of the main incline would have been much greater but for the fact that that it was found necessary to flood a portion of the road to subdue a fire due to spontaneous combustion, and the subsequent unwatering occupied five months as it was impossible at the time to obtain a pump suitable for this work. In my report last year I mentioned that this mine had been opening up some badly faulted ground, which had seriously hampered development work, but this year it gives me pleasure to report that the workings have left the disturbed ground and are opening up excellent faces of coal. During the year some 470 feet of underground roadways have been arched over with brickwork, and the numerous cases of spontaneous combustion that occurred, where and when this work was in progress, are a certain indication of the necessity of this work, more especially where the main roads pass through faulted and broken ground. There have been numerous cases of spontaneous combustion in other parts of the mine other than those mentioned above, but in all cases they were promptly detected and dealt with before they had assumed serious proportions. North Mine, Main Seam. - The main incline has not been advanced as the development work is ahead of the established programme. Both No. 1 and No. 2 branch levels have made excellent ?progress, indeed No. 1 branch level face is now two thirds of a mile away from ?? ?line. To give a further idea of the area of the ground that has been opened up, it may here be mentioned that there are six miles of tram track in actual use in this mine, and moreover, there are several sections from which the coal has been exhausted, and the rails removed, which are not yet included in the above figure. Development work has proved this mine to be comparatively free from faults with a consequent reduction in areas of crushed coal as compared with the South Mine, and, as a result, there are fewer cases of spontaneous combustion and less timbering is required. Large areas of coal in this mine are now ready for working with the hydraulic stowage system. Pumping. - In order to deal with all the income of water from Nos. 1 and 2 benches of the South and North mine, a site for a pumping station has been selected in the South Mine and at present, is in course of preparation. This station will comprise four turbine pumps each capable of throwing 500 gallons per minute up to the surface. It is confidently expected that, once this station is running, the major part of the water troubles, that have hitherto beset us, will disappear. All the water that we have to contend with is merely local seepage water from the surface and consequently during dry seasons the income of water is small. As makers have hitherto been unable to supply pumps suitable for high lifts, we have been obliged to struggle with inadequate plant and makeshift arrangements during the wet weather. Ventilation. - The new Sirocco Fan, which has a capacity of 200,000 cubic feet of air per minute, is now erected and will be run as soon as there is sufficient electrical power to drive it. In connection with it a new ventilation shaft, 14 feet 2 inches in diameter, has been sunk and bricklined throughout. The depth of this shaft is 75 feet. Hydraulic Stowage. - Owing to circumstances beyond our control, we were unable to enter into possession of our land at Kundang, from whence the supply of sand will be drawn, until March of this year, and consequently this work is behind-hand, but now is being vigorously pushed forward. Colliery Railway and Siding Extension- It was not until last December that our first consignment of rails arrived from America, and it was possible to resume rail laying. All rail laying is now completed, with the exception of siding accommodation at Nos. 3 and 4 Opencasts. Siding accommodation for railway wagons has been provided at Nos. 1, 2 and 5 Opencasts and the necessary loading screens erected. In all some 3 and half miles of track have been laid and are in use. Opencast Mines. No. 1 Mine, Great Seam. - This mine had to be closed down for coal getting for some little time, whilst the necessary arrangements in the new loading arrangements were being made. This accounts for the reduced output of this mine. No. 2 Mine, Great Seam. - As soon as the railway connection was through, this mine started producing coal and during the five months that is has been at work has produced 6,684 tons. No. 3 Mine, Great Seam. - A big yardage of the overburden has been stripped and a valuable bed of clay exposed which overlies the coal. The spoil is used for making the railway embankment, which requires a considerable amount of material added to it. The clay is loaded into railway wagons and sent to our brickyard. No. 4 Mine, Great Seam. - A drainage shaft is at present being sunk, and now that the railway is through, machinery for hauling and pumping can be brought in, and stripping the overburden will be started. No. 5 Mine, Main Seam. - The site of this mine was located during the past year, and permission to work it having been obtained from the Mines Office, it is now being opened up, and coal showing at the bottom of the mine. A small electric generator has been purchased and is being installed at this mine to supply current for lighting all the opencasts. Machinery.-All deliveries of machinery both from England and America have been sadly behind-hand and want of plant has had an adverse effect on the output. All the plant installed has been kept in the highest state of efficiency and is giving excellent service. Plant at present on order comprises boilers, chimney, electrical generators, motors, pumps, electrical cables, coal cutters, coal conveyor, locomotive, piping, briquetting plant etc. Buildings. - A new office has been built as the requirements of the mine have outgrown the available accommodation of the original office. An additional bungalow has been completed and another is in the course of construction. Boring. - A number of bores have been put down during the past year, the most important of which has proved a large extension in depth of the Great Seam. The proved area of this seam now contains over 5 million tons of good clean coal. At present we are unable to prove this seam at a greater depth, as our boring plant is not capable of doing such work, but it is evident that an enormous tonnage of coal must exist to the dip of the bore referred to above. Brickyard. - A machine for making wire cut bricks has been purchased and put to work. In order to deal with our increased output, four additional updraft brick-kilns have been built as a temporary measure pending the erection of a continuous kiln. The finished brick is of a high class quality for engineering work and eminently suitable for use in underground arching, which owing to the great roof pressure requires a strong brick. The local hand made brick is absolutely useless for arching purposes as it will not stand the strain. The clay for making the bricks is mostly obtained from No. 3 Opencast Mine, though a small quantity is also obtained from the other opencast mines where a thin bed of clay overlies the coal. Wages have risen throughout the year in sympathy with the increase in the price of foodstuffs, and towards the end of the year, owing to the inflated price of rice, it was necessary to supply our coolies with rice at a price below market rates. In all there are some 1,500 coolies employed in and about the mine. In conclusion I would like to express my appreciation of the European Staff, who have worked well and willingly during the year. The annual meeting is to be held on Saturday, Sept 20th at the Hongkong and Shanghai Bank Buildings, Kuala Lumpur.

The Malay Mail, Monday September 22, 1919 and Malayan Collieries. [Articles] The Straits Times, 24 September 1919, Page 9

Malayan Collieries. Increasing the Output. Future profits. The sixth annual general meeting of shareholders in Malayan Collieries Limited, was held at the registered office of the Company, Hongkong and Shanghai Bank Buildings, Kuala Lumpur, on September 20th at 11 am. Mr. R. C. Russell presided. Mr J.J.F. McEwan for the secretaries, Messrs. J. A. Russell and Co., read the notice convening the meeting, and also the minutes of the last meeting, which were confirmed. The annual statement of accounts and balance sheet and the report of the directors and auditors were submitted to the meeting. The Chairman, in moving their adoption said: - Gentlemen:- The Report and accounts having been in your hands for the specified period, I shall, with your permission, take them as read. Before moving their adoption, however, I will, as usual, make a few comments upon the items on the balance sheet before you. Taking the debit side first, unclaimed dividends amount to $4,104.37. Sundry creditors $106,090.58, consists chiefly of wages, Government Royalty, and freight, also traders’ accounts due by the Company for June account, and has since been paid. Accrued expenditure is the proportion, applicable to the period under review, of the Company’s Consulting Engineers fees for the year 1919. Reserves total $272,500. Made up of a General Reserve Account $150,000, which was started last year, $10,000 for bad debts, and $112,500 mine amortization. This figure is made up of $75,000 placed to this reserve in the previous year and $37,500 charged to revenue for the present financial year. I will refer to this again when I come to the Profit and Loss Account. Turning now to the credit side, you will see “Mine Property” remains at the same figure, $1,003,474.50, as also does Mine Development Account at $100,000. It has not been considered necessary to depreciate this asset, as all work such as brick arching, etc., rendering the underground roads permanent, is now being charged to revenue. “Buildings” stand at $87,086,61. Depreciation on this item is somewhat heavier than formerly, in view of the fact that it has been considered advisable to increase the rate of depreciation on all temporary and semi permanent buildings. “Machinery and Plant”, including “plant in transit” is increased by $230,862,87 making a total of $521,123.54 from which has to be deducted $74,872.69 for depreciation. The large increase under this heading is represented in the cost of the new plant consisting of electrical locomotives for underground haulage, underground rails, new generator and electrical cables, cement gun, pumps concrete mixer, etc. The Company’s private railway line was extended during the year and now stands at $119,638.28, after allowing for depreciation, the additions amounting to $90,006,03. Our stock of materials such as mining stores, etc., stands at $88,259.11 as compared with stores on hand last year last valued at $63,817,03. In connection with the hydraulic sand stowage scheme, $18,917,03 was spent during the year. The late delivery of plant has been mainly responsible for the delay that has arisen, but now that the necessary materials are on their way from Home it is confidently to be expected that the scheme will be started shortly. All the necessary construction work here is making favourable progress. As soon as this system is working, it will be possible to commence coal getting by means of the experimental coal cutter and coal conveyor that were now due to arrive. At the closing of accounts we were owed $192,371.50, being mainly the amount of coal sales during June; although we have few bad debts you will observe that a considerable sum is required to ?nn??nce our coal sales. The item “Unexpired Expenditure” $1,858.54 represents quit rent and insurance paid but applicable to the ensuing year’s working. Cash with Company’s bankers at the close of the year amounted to $163,291.92 of which $125,000 was on fixed deposit. Cash at the mine amounted to $462.05. Turning now to the Profit and Loss Account you will notice that the loss of mining the year’s output was $931,264.49, exclusive of Government Royalty and prospecting expenses. The main items of this sum are wages and salaries $536,896.39, materials used $57,482,05, cost of brick arching and timbering the main roads underground $105, 267.54. $14,000 has been set aside for European leave salaries and passages for members of your staff already overdue leave, and a sum of $104,830,04 as depreciation; head office expenses, including the Company’s London consulting engineers’ fees and expenses, audit fee and also expenses in connection with the purchasing of plant in America total $47,684.41. A sum of $37,500 has been added to the Mine Amortization Reserve, being 2 and half per cent on the issued capital of the Company. Last year the sum so set aside was $75,000, and this reserve now stands at $112,500. The Company paid $44,957,90 to the Government as Royalty in accordance with the terms of their leases, and $5,822.05 was spent on prospecting, but this latter sum does not include European supervision, or depreciation of the diamond drill. The coal sales for the year yielded a gross return of $1,570,241.25, which after deducting the amount paid to the Railway Administration for freight, $161,699,05, gives net sales of $1,408,542.20, while sundry other items of revenue produced $18,790.70. After deducting all charges, the Company has made a profit for the year, subject to the payment of directors’ fees, of $407,788.46. To this profit has been added the balance of $15,094.04 brought forward from the previous year’s account making a total of $422,882.50. Your directors declared an interim dividend of 5 per cent on the 15th February, 1919, absorbing $75,000, leaving $347.882.50 available now for distribution. This sum however is not actually available for that purpose, since you will have noticed that a very large amount has been re-invested in the mine, in the shape of new plant etc., for which it would otherwise have been necessary to find new capital. Your directors have decided to recommend the payment of a final dividend of 10 per cent, making a total distribution for the year of 15 per cent. This will absorb $150 ,000, leaving $197,882.50 of which it is proposed to place $150,000 to the General Reserve Account, which will then stand at $300,000, leaving to be carried forward, subject to directors’ fees and a bonus to the mine staff, a balance of $47,882.50. You would now probably like to hear something regarding your property. You will have noticed in the directors’ report that the prospecting licence held by the Company has been handed back to Government after a total selection of 8,035 acres had been made. The reason for abandoning the prospecting licence, after taking up this area, and making with the original lease a total of 9,235 acres, is that from the prospecting results we have proved a portion of the area to be valueless from a coal point of view. The area now held by the Company amply covers the coal measures proved. A frequent question raised is what is the life of the mine. No true or exact figure of the available tonnage in the coalfield can be given, until it is possible to obtain boring-plant to prove the coal measures at the lower depths, but I can safely say that sufficient coal is available from our present data for a life of 30 years, even should our output rise to the quantity we eventually hope to produce, namely 400,000 tons per annum. This coal may rightly be termed in sight, and should our surmises as to the continuance in depth of the measures be correct, and we have every reason to suppose this to be so, then this coal would be only a fraction of the total amount available. Now as to attaining this output, our programme for the future entails a large expenditure, and I would state that during the present financial year we will have to purchase nearly $200,000 of plant, plant that is vitally necessary to maintain our present output, but, to materially increase it, without taking into consideration the cost of sinking a central shaft in addition to the present inclined haulage system, we shall have to spend about £50,000 or $430,000 on plant such as boilers, coal cutters and conveyors, brick kilns, electrical cables for pumps and coal cutters improved haulage and screening plant, log sawing machinery, another locomotive and a diamond drill. With regard to future profits, I might say that the development of the Company’s property is still in its infancy, and I can foresee a number of years of heavy expenditure in order to bring the property to that state of efficiency that is desirable in a coal mine, and, if we are to continue to pay a steady rate of dividend and also to compete successfully with outside collieries, it is absolutely essential that that your directors’ present policy of providing for extensions out of revenue, be continued for some time to come. Our competitors are more fortunately placed than ourselves, as our period of heavy expenditure coincides with a time when machinery is at least three times the amount our competitors paid for theirs, and our depreciation is accordingly a much heavier charge on our profits than is theirs. It is hoped by the introduction of coal cutters and other labour saving devices to increase the efficiency of our native labour, coal cutters taking up the heaviest manual work now necessary underground, and thereby to reduce the cost of production whilst increasing the output. Labour, although taking more kindly to coal mining, still demands a high rate of earning, and I am afraid that until conditions locally, both as to the cost of living and the cost of remitting to China, improve, we shall continue to have to pay our labour high rates. We are this year purchasing a briquetting plant capable of turning out 100 tons per 8 hour day. This plant we hope to have erected and producing by the spring of next year. The briquettes we intend manufacturing are ovoids, weighing 2 ozs. each, equally suitable for either mechanical stoking or hand firing, and have been satisfactorily proved on a commercial scale. Owing to their suitability for storage and the ease with which this class of fuel can be handled, we hope to be able to capture a portion of the bunkering trade of Singapore and Penang. There is, as you know, at present, a world shortage of coal, the production from most of the large coalfields has fallen considerably of late years, and I anticipate that the cost of imported coals to the Straits will remain at nearly its present figure, and this renders the time very favourable for the introduction of our briquettes. During the year under review the mine has been understaffed, and it has been impossible to obtain any new assistants. Mr. McCall and his assistants have loyally responded to the heavy demands made on them and have worked exceedingly well. I shall later ask you to pass them a hearty vote of thanks and the usual bonus for their good work. We have now, however, obtained three new assistants from Home and it is to be hoped that Mr. McCall, our General Manager and Mr. Porteous, our Engineer, will be able to take their leave, now long overdue. I now beg formally to move that the report of the directors produced, together with the statement of the Company’s accounts as at June 30th 1919, duly audited, be now received approved and adopted, which motion I will ask Mr. Chew Kam Chuan to second; but before putting it to the meeting I shall first endeavour to answer to the best of my ability any questions that shareholders present may care to put. There being no questions Mr. Chew Kam Chuan seconded the Chairman’s motion to adopt the report and accounts, which was carried. The Chairman then moved the payment of a final dividend of 10 per cent making 15 per cent for the year upon the share capital of the Company, the placing of $150,000 to General Reserve account and the carrying forward of the balance to next year’s account, which was seconded by Mr Chew Kam Chuan. The sum of $5,000 was voted to the directors in remuneration of their services for the past year. The Hon. Mr. R. P. Brash and Mr. Chew Kam Chuan were re-elected to seats on the board. Messrs. Evatt and Co. were re-elected auditors for the ensuing year at a fee of $1,000. A vote of thanks was passed to Mr. McCall and his staff on the mine for their services during the past year and a bonus of one month’s salary granted as a mark of the Company’s appreciation. The meeting concluded with a vote of thanks to the Chairman and the directors.