For the descendents of Richard Dearie and his son John Russell
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Malayan Collieries Report Accounts and A.G.M. 1927
MALAYAN COLLIERIES,
LIMITED.
(INCORPORATED IN F.M.S.)
DIRECTORS' REPORT
AND
ACCOUNTS
For Year Ended 31st. December, 1926.
TO BE PRESENTED AT THE
THIRTEENTH ANNUAL GENERAL MEETING OF
SHAREHOLDERS
TO BE HELD AT THE
Registered Office of the Company, Hongkong & Shanghai Bank Buildings, Kuala Lumpur,
ON
Wednesday the 30th March 1927. At 12 o'clock, Noon.
J. W. FULLER,
Secretary.
Malayan Collieries, Limited.
(Incorporated in Federated Malay States.)
Directors.
JAMES BARR, Esq.,
FREDERICK CUNNINGHAM, Esq.,
HUGH NORMAN FERRERS, Esq., WILLIAM HENRY MARTIN, Esq.,
JOHN ARCHIBALD RUSSELL, Esq.,
Managing Agents.
J. A. RUSSELL & Co., Kuala Lumpur.
Secretary.
J W. FULLER.
Registered Offices.
HONGKONG & SHANGHAI BANK BUILDINGS, KUALA LUMPUR.
NOTICE IS HEREBY GIVEN That the Thirteenth Annual General Meeting of the Members of the Company will be held at the Registered Offices of the Company, Hongkong and Shanghai Bank Buildings, Kuala Lumpur, on Wednesday 30th March 1927, at 12 o'clock noon for the following purposes: —
To receive and consider the Balance Sheet and Accounts to 31st. December, 1926, and the Report of the Directors and Auditors.
To Declare a Final Dividend for the year 1926.
To Declare Directors' remuneration for the year 1926.
To Elect Directors in place of those retiring.
To Elect Auditors for the ensuing year.
The Share Registers will be closed from Wednesday 23rd March 1927, to Thursday 31st March 1927, both days inclusive.
By Order of the Board,
J. W. FULLER,
Secretary Dated 17th March, 1927.
Hongkong & Shanghai Bank Buildings, Kuala Lumpur, F. M. S.
Malayan Collieries, Limited.
(Incorporated in Federated Malay States.)
Directors' Report for the Year ended 31st December, 1926.
The Directors have pleasure in submitting their Thirteenth Annual Report and Statement of Accounts for the year ended 31st December, 1926.
SHARE CAPITAL. The Share Capital remains unaltered. Dividends are calculated and paid in respect of $2,575,050.00 (257,505 shares).
LEASEHOLD PROPERTY. A title covering the 122 acres of extra land for sand at Pengkalen Kundang has now been issued to the Company, the Premium upon alienation amounting to $4,270.00.
KUNDANG SAND PITS. As in the past, these pits supplied the sand required for the hydraulic stowage of the underground workings at Batu Arang. The demand for sand increased in sympathy with the enlarged output of coal. The Company continued to win tin ore from this property, the proceeds of which off-set, to some extent, the heavy cost of the Hydraulic Stowage.
MINES, PLANT AND BUILDINGS. The General Manager's Reports on these are subjoined.
BATU ARANG. Operations functioned normally throughout the year, except for the increased costs of labour occasioned by the rise in the cost of living. The Colliery met without difficulty the additional demand experienced during the twelve months, and, should the need for it arise, is capable of a considerably increased output. Underground fires due to spontaneous combustion continued from time to time to occur, but were quickly dealt with by means of hydraulic sand stowage. The general health at the Mine was good.
PAMOEKAN BAY. A steady and increasing demand for Pamoekan Bay coal was experienced during the year; but, unfortunately, the underground fire which occurred in the last days of 1925, and the shortage of suitable labour which existed on the Mine throughout the year, again prevented the Mine from obtaining a sufficiently large enough production to satisfy all demands. The fire, although not serious in causing any permanent damage to the workings themselves, created for three weeks practically a cessation of production, while its resultant minor disarrangements lasted well on into the year. There appears to be no need to fear a recurrence of the fire. Pamoekan Bay coal is not subject to spontaneous combustion. The labour situation improved during the closing months.
The Steam Launch "Lin Hin," one of the two launches maintaining communication between the Mine and Kota Baroe, struck a reef on the 30th September, during a voyage from Kota Baroe to the Mine, and became a total loss. Fortunately no lives were lost. The launch was insured with Lloyds Underwriters for £2,500 and the claim has since been collected.
The general health and absence of accidents continued to be good.
It is hoped that the output will now materially increase, and that the Mine will experience no further set backs from flood, fire or shortage of skilled labour as it has done in the past.
INVESTMENTS. The Investments remain as reported last year.
LOCAL COAL MARKETS. The demand for the Company's Batu Arang coal continues gradually to increase, especially so for "smalls". The demand for the Company's Pamoekan Bay coal is far in excess of present production; but it is trusted that by the end of the coming year the output will more nearly equal the demand.
PROFITS. The profit for the year under review subject to Directors'
and Auditors' fees amount to ... ... ... $1,039,917.95
Less General Manager's Commission 1926 ... ... ... 7,799.38
$1,032,118.57
To which is added the unappropriated balance from
the previous account of ... ... $184,516.60
Less Staff Bonus 1925 ... ... 7,950.00 176,566.60
$1,208,685.17
Three Interim Dividends of 7 ½ % each on 257,505 shares
were declared during the year absorbing ... 579,386.25
629.298.92
You will be asked to sanction fees to Directors in respect
of the year 1926 of ... ... 12,000.00
and Auditors fees of ... ... 3,000.00 15,000.00
Leaving available 614,298.92
which your Directors recommend should be dealt with as follows: —
Payment of final Dividend of 12 ½ per cent (on
257,505 shares) making 35 per cent for the year 321,881.25
Write off Leasehold Property account 4,270.00
Write off Mine Development account 112,045.76 438,197.01
Balance to carry forward to next year's account 176,101.91
(Subject to an appropriation for staff Bonus to be left as formerly to the discretion of the Board)
DIRECTORS. Mr. H. N. Ferrers and Mr. J. A. Russell being the Directors longest in office retire under the provision of the Articles of Association and being eligible offer themselves for re-election.
AUDITORS. Messrs. Evatt & Company, retire but being eligible offer themselves for re-election.
On behalf of the Board,
J. A. RUSSELL & Co., Kuala Lumpur,
17th March 1927.
Malayan Collieries, Limited.
General Manager's Report for the year ending 31st December, 1926.
BATU ARANG COLLIERY.
I have the honour to submit herewith my report on the work done at Batu Arang Colliery during the year ended 31st December, 1926.
UNDERGROUND DEVELOPMENT. This has kept pace with extraction and is well in step with any possible increase in production.
UNDERGROUND FIRES. We have had our usual quota of these but none of them caused serious anxiety. They all occurred in the old workings where pillaring was attempted years ago and only gave rise to inconvenience until their exact locations could be determined.
HYDRAULIC STOWAGE.
This department of our mining operations functioned without trouble during the year.
OPENCASTS. Work proceeded here quite smoothly during the period under review. No. 5 and No. 6 are approaching the end of their usefulness but two new opencasts have been stripped and are in readiness to replace them.
SURFACE OPERATIONS. The slight hampering of surface operations due to shortage of labour in 1925 was not felt so much during 1926 as the number of arrivals of surface coolies from China was considerably above the average.
BUILDINGS AND PLANT. A Hospital built of brick and Dresser's quarters were on the point of completion at the end of the year and arrangements have been made for a Medical Officer to pay regular visits to the mine in future. A 60 kilowatt lighting set has been installed and electric light is now supplied to all the Kongsis, Shops and Houses in the village. The innovation appears to be much appreciated by our employees.
KUNDANG SAND PITS. Two steam boilers of larger capacity than those formerly in use were installed and put into operation during the year. As a result ample supplies of sand have been available for Hydraulic Stowage operations at Batu Arang.
FLOODS IN F. M. S. During the period of unprecedented flood in F. M. S. the Colliery workings and plant remained unaffected, but output was restricted for the few days during which the Government Railways were being so severely taxed by the flood waters.
LABOUR EMPLOYED. Owing to the increased output the number of coolies employed had necessarily to be increased to roughly 2500 an increase of 250 above the previous year.
HEALTH AND ACCIDENTS. While the health of our employees remained good I
regret to have to state that six fatal accidents occurred, two underground and four in the open
casts. In each case the resultant enquiry showed that the deaths were due to almost unavoidable
accidents. ,
GENERAL. The mine and plant connected therewith have been kept in a state of efficiency throughout the period and for this condition and for the smooth working of the whole concern, I take the opportunity of extending my thanks and appreciation to all the members of the staff.
Katoomba,
New South Wales.
19 th February 1927.
Signed JAMES BARR,
General Manager,
Malayan Collieries, Limited.
General Manager's Report for the year ended 31st December 1926. PAMOEKAN BAY COLLIERY.
I have the honour to submit herewith my report on the work done at the Pamoekan Bay Colliery during the year ended 31st December, 1926.
MINE DEVELOPMENT. Development underground has kept pace with production and the mine is capable of increased output at any time should the labour shortage referred to elsewhere in this report be relieved.
UNDERGROUND FIRE. The fire which occurred during the last days of 1925 was not of very serious import when compared with the damage usually wrought by mine fires. Our output suffered for some weeks and some trucks, rails and other equipment were rendered valueless for a time, but very little permanent damage has resulted. The fire area has been sealed off from the rest of the workings and will not be reopened for some considerable time.
COAL CUTTING MACHINE. An additional coal cutting machine, making 6 in all has been put into use and works satisfactorily.
GENERAL CONDITIONS UNDERGOUND. Ventilation is good, the pumping units are efficient and the endless rope haulage system works satisfactorily. Roof conditions, however, call for watchfulness every now and then.
MECHANICAL LOADER. This gave some trouble in the early part of the year but by shifting the driving gear from the wharf end to the shore end the trouble appears to have been removed and loader break-downs have not occurred for some time.
LABOUR SHORTAGE. There has been an acute shortage of labour throughout the whole of the year with the result that the mine output did not reach anything like the figure hoped for. Every endeavour was made to secure coolies but little success attended our efforts. It is not generally known, but is nevertheless a fact, that the Hakka is the only Chinese coolie who will work underground as a miner. The Hakka comes from Kwang Tung Province which has been in a state of turmoil for a long time and people from there could emigrate only under extreme difficulty. The net result has been that very few Hakkas arrived in Singapore during 1926 and we were not able to increase the number of coolie miners at Pamoekan Bay.
LABOUR EMPLOYED-
The total labour force employed at the end of the year was slightly under 600.
HEALTH AND ACCIDENTS.
The health of the community has been good; there were no serious or fatal accidents.
STEAM LAUNCHES, It is with regret that I have to report the loss of one of our Steam Launches—the "Lin Hin "—which blown somewhat out of her course by adverse winds struck a rock and sank No lives were lost and the launch was fully covered by insurance.
GENERAL. The mine is in good order and capable of improving its previous showing as soon as the right class of labour is available- For this state of things the staff is mainly responsible, and I take this opportunity of rendering my thanks for their ready co-operation and assistance.
KATOOMBA,
New South Wales.
19th February 1927.
Signed JAMES BARR,
General Manager.
MALAYAN COLLIERIES, 13
LIMITED.
(INCORPORATED IN F.M.S.)
DIRECTORS' REPORT
AND
ACCOUNTS
For Year Ended 31st December, 1926.
TO BE PRESENTED AT THE
THIRTEENTH ANNUAL GENERAL MEETING OF
SHAREHOLDERS
TO BE HELD AT THE
Registered Office of the Company, Hongkong & Shanghai Bank Buildings, Kuala Lumpur,
ON
Wednesday the 30th March 1927.
At 12 o'clock, Noon.
J. W. FULLER.
Secretary.
Charles Grenier & Son, Ltd., K. L.
MALAYAN COLLIERIES LIMITED.
(Incorporated in Federated Malay States)
The Speech of the Chairman of Malayan Collieries, Limited, on the occasion
of the 13th Annual General Meeting held at the Office of the Company,
Kuala Lumpur, on the 30th March, 1927.
Gentlemen,
The Report and Accounts having been in your hands for the required period, I propose, with your consent, that they be taken as read. I again have the pleasure of being able to report another record year both in regard to gross revenue and to profits. It is true that the increase in the latter item, profits, over the figure for last year is not very great; but it indicates continued progress in the right direction. The increase in gross revenue, however, amounts to the more substantial sum of $600,000/-, the total for the year being now just over the $5 million mark. These larger receipts are mainly due to bigger coal sales, and not to any increase in our selling prices. During the year, as you are aware, wages rose considerably, involving the Company in a large increase in costs, and but for this the profits would have been greater. In view, therefore of the general rise in all costs, it is very satisfactory to be able to record any increase at all in the amount of our annual net profits. I am happy also to be able to report to you that while costs per ton would now appear to have reached their limit, the Company's sales still continue gradually to expand. Despite a largely increased turnover, you will perhaps notice that the total amount paid by the Company during the year under review in coal royalties is actually lower than it was for the previous one. This is due to two reasons: firstly, that we pay a minimum total royalty upon our Borneo coal, which minimum total has in previous years never been reached, and, secondly, that a reserve which we created for the payment of Dutch Government royalties was in excess of what was actually required for this purpose during 1926.
I would point out that Depreciation, amounting to $104,000/-, has been increased over the sum which was written off for 1925 by $9,000/-, and I think you will agree that this shows a conservative policy.
1 believe that if there is anything in the Balance Sheet which requires explanation that explanation will be found referred to in the Reports which precede it. Compared with the position at our last Annual General Meeting, the Company is, as a whole, in a still sounder position, because the Company owes less to sundry creditors, has a considerably smaller sum owing to it by its sundry debtors, has hardly any stocks of unsold coal on dumps, and, while its investments remain the same, with $538,952/- of liquid cash in hand has over $100,000/- more than it had at the end of the previous accounting period.
You will see that after paying three interim dividends during the year amounting to 22 ½ %, and after allowing for directors' and auditors' fees at the same rate as those paid for 1925, there is a balance of $614,298.92 remaining to be dealt with at this meeting. Your Directors recommend a final dividend of 12 ½ % which will absorb $321,881.25 and will give shareholders a total return for the year of 35% upon their shares. Your Directors also recommend that the premium paid to the Government upon the extra area of 122 acres of State land acquired by the Company at Kundang for the purpose of procuring sand for hydraulic stowage be written off. This sand land is probably of no value except to the Company itself, and is a doubtfully realisable asset, and should therefore, your Board consider, be entirely written off. During the year the cost of driving a new tunnel, amounting to $12,045.76, has been added to Mine Development Account bringing this total to $287,045.76. Your Board recommend not only that this $12,000/- odd should be written off, but that the Development Account should be still further reduced to $175,000/- by writing off it a total sum of $112,045.76. Your Directors desire gradually to extinguish this Development Account altogether. These writings off will leave us a sum of $176,101.91 which we recommend be carried forward to the 1927 Balance Sheet. It is approximately the same balance that was carried forward at the end of 1925
to the accounts that are under review to-day. Out of this balance, your Board would ask you kindly to sanction its paying the usual staff bonuses to the staff upon the mines, the actual amount of the bonus to be left, as before, to the discretion of the Board, who in this matter act upon the advice of the Company's General Manager, Mr. Barr. I perhaps need not inform you that Mr. Barr himself, who draws a commission on profits, does not receive any bonus, nor does the Secretary to the Company, nor anyone not actually employed and resident on the mines themselves.
I very much regret to have to tell you that Mr. Barr was in exceedingly bad health during practically the whole of last year, and carried on under the greatest of physical difficulties; but he refused to take leave until certain mining schemes, which he had in hand, were further advanced. However, he steadfastly declined to give in until the close of the financial year, and did not leave here for Australia until early in last January. We have since heard that he is considerably better, although, you will be sorry to hear, still far from being quite recovered. 1 am sure that you will join with me in wishing him a speedy return to full health.
Mr. J. W. Fuller, A.C.A., during the year took over the duties of secretary from Mr. H. D. Brown on the latters leaving the country.
I hardly think that there is much for me to add to what I have said, except perhaps to mention that in the closing days of last year and the commencing ones of this, the F.M.S. suffered from the worst of floods it has experienced within living memory, so that traffic by road and rail was for a time completely dislocated. Despite the difficulties encountered, both at the mine and with transport, the Collieries at Batu Arang functioned practically without a break, and continued to supply the Railway and its other customers with their coal requirements. For this happy achievement the thanks of the Company are greatly due to the then acting mine manager, Mr. Muir, and his staff. The greatest difficulty encountered was in getting sufficient coal supplies to the Company's mining customers, because of the interruption to the Railway line and the grave deficiency of railway waggons. At one time the position was becoming most serious, but with the whole-hearted assistance of the Railway Traffic Manager and his entire staff, I am glad to be able to say that, so far as I am aware, no single customer of ours had to cease or to curtail operations owing to a shortage of fuel.
I shall now be glad to answer, if I can, any questions bearing upon the Report and Accounts which shareholders present may care to ask.
From: MALAYAN COLLIERIES LIMITED REPORTS & BALANCE SHEETS AND PROCEEDINGS AT ANNUAL MEETINGS 1926- 1935
Malayan Collieries, Ltd
(incorporated in F.M.S.)
PROCEEDINGS
AT THE
THIRTEENTH ANNUAL GENERAL MEETING OF SHAREHOLDERS
HELD AT THE
Registered Office of the Company, Hongkong & Shanghai Bank Building, Kuala Lumpur,
ON
30th March, 1927
Malayan Collieries, Ltd.
(Incorporated in F. M. S.)
Head Office-Hongkong and Shanghai
Bank Buildings, Kuala Lumpur
Telegraphic Address-"Arang"
Kuala Lumpur
Bentley’s Code
Telephone No. 64
Directors:
H. N. Ferrers (Chairman)
J. A. Russell F. Cunningham
W. H. Martin James Barr, B. E
General Manager James Barr, B. E
Secretary Hy. D. Brown
Managing Agents J. A. Russell & Co.
Batu Arang Colliery Staff
Telegraphic Address—“Collieries”
Batu Arang
Mine Manager W. McEwan
Assistant Manager
and Surveyor J. M. Muir
Mine Accountant C. A. Stanlake
Mine assistant B. Harold
Do. R. McEwan
Do. J. Pitkeathly
Do. J. Calder
Surface Staff H. L. Griffin
Do. J. S. Gay
Chief Mechanical
Engineer J. Kinnear
Electrical Engineer G. E. Vickers
Pamoekan Bay Colliery Staff
Mine Manager E. Barrett
Mine Assistant T. Bernard
Do. A. Bernard
Do. J. Findlay
Do. J. Murphy
Surveyor F. W. Brickman
Engineer T. Duncan
Electrician J. Sument