For the descendents of Richard Dearie and his son John Russell
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Malayan Collieries Report Accounts and A.G.M. 1928
MALAYAN COLLIERIES,
LIMITED.
(INCORPORATED IN F.M.S.)
DIRECTORS' REPORT
AND
ACCOUNTS
For Year Ended 31st December, 1927.
TO BE PRESENTED AT THE
FOURTEENTH ANNUAL GENERAL MEETING OF
SHAREHOLDERS
TO BE HELD AT THE
Registered Office of the Company, Hongkong & Shanghai Bank Buildings, Kuala Lumpur,
ON
Friday, the 30th March, 1928, At 11 a.m.
J. W. FULLER,
Secretary.
Printed by Kyle Palmer and Co. Ltd. Kuala Lumpur
MALAYAN COLLIERIES,
LIMITED.
(INCORPORATED IN F.M.S.)
DIRECTORS' REPORT
AND
ACCOUNTS
For Year Ended 31st December, 1927.
TO BE PRESENTED AT THE
FOURTEENTH ANNUAL GENERAL MEETING OF
SHAREHOLDERS
TO BE HELD AT THE
Registered Office of the Company,
Hongkong & Shanghai Bank Buildings, Kuala Lumpur,
ON
Friday, the 30th March, 1928, At 11 a.m.
J. W. FULLER,
Secretary.
Malayan Collieries, Limited.
(Incorporated in Federated Malay States.)
Directors,
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 Fourteenth Annual General Meeting of the Members of the Company will he held at the Registered Offices of the Company, Hongkong and Shanghai Bank Buildings, Kuala Lumpur, on Friday 30th March 1928, at 11 o'clock a.m. for the following purposes: —
To receive and consider the Balance Sheet and Accounts to 31st December, 1927, and the Report of the Directors and Auditors.
To Declare a Final Dividend for the year 1927.
To Declare Directors’ remuneration for the year 1927.
To Elect Directors in place of those retiring.
To Elect Auditors for the ensuing year.
The Share Registers will be closed from Friday 23rd March 1928 to Saturday 31st March 1928, both days inclusive.
By Order of the Board,
J. W. FULLER,
Secretary.
Dated 15th March, 1928.
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, 1927.
The Directors have pleasure in submitting their Fourteenth Annual Report and Statement of Accounts for the year ended 31st December, 1927.
The working of the Collieries during the year is reviewed in the appended reports of the Managing Agents, who were solely responsible for the management of both properties from the date of the departure of Mr. J. Barr, early in the year. The output from the Batu Arang Colliery was a little down during the twelve months; but the increase in the Pamoekan Bay output more than balanced this, the combined result being a record tonnage, with, we are also pleased to say, a record net profit.
BATU ARANG. The output was affected somewhat during the last nine months owing to the loss of one of the F.M.S. Railways' contracts. This contract, however, has since been re-secured. The private demand for coal increased as the completion of new plants progressed. The increase in demand was principally for the lower-priced "smalls".
The mines are being equipped to produce considerably increased tonnages, and, upon the completion in the course of the next few months of the work now in hand, this Colliery should be in a position without any difficulty to double, if necessary its output.
PAMOEKAN BAY. The output of this Colliery shewed an increase during the year. As stated in the Managing Agents' report, development was interrupted by the occurrence of irregularities in the top seam. While these irregularities may or may not occur again, the steps which are being taken to prove them will enable development to be planned accordingly.
The newly appointed Acting Chief Mine Superintendent is now engaged on the opening up of the lower seam. With the two seams working simultaneously, the danger of short supplies would be reduced.
STAFF. As you have already been advised, Mr. J. Barr left Malaya in the early days of January in a very bad state of health, and in May it was found necessary to make other arrangements for the general management of the Company.
Your Directors decided to abolish the position of General Manager, and to appoint instead one, or if necessary two, highly qualified Colliery Engineers to advise upon and be responsible purely for technical matters in connection with both Collieries. Accordingly, Mr. R. Rutherford, formerly of the Ebbw Vale Company, South Wales, was engaged towards the end of the year as Mines Superintendent, Batu Arang, with the acting appointment of Chief Superintendent of Mines. Mr. Rutherford arrived in Malaya on the 16th December, 1927, and in his capacity of Chief Superintendent of Mines he is for the present engaged at Pamoekan Bay, more particularly in connection with the development of the lower seam.
INVESTMENTS. During the year the Company's Investments have been increased by the purchase of £31,000 4% Funding Loan 1960/1990 and H.K. $20,000 6% Hongkong Public Works Loan 1927.
PROFITS. The profit for the year under review subject to Directors’
and Auditors' fees amount to ... $1,173,660.20
Less commission to the late General Manager to October 1927 under the
terms of his agreement with the Company ... 7,335.37
$1,166,324.83 Io which is to be added the unappropriated balance from
the previous account ... $176,101.01
Less staff bonus 1926 ... 9,741.00
166,360.91
$1,332,685.74 Three Interim Dividends of 7 ½ % each on 257,505 shares were declared
during the year absorbing ... 579,386.25
$753,299.49 You will be asked to sanction fees to Directors in respect
of the year 1927 of ... $15,000.00
and Auditors fees of ... 3,000,00
18,000.00
Leaving available ... $735,299 49
Which your Directors recommend should be dealt with as follows: —
Final Dividend 12 ½ % ... $321,881.25
Write off Mine Development ... 176.128.44
Add to General Reserve ... 100,000.00
598,009.69
Balance to carry forward to next year's account. $137,289.80
(Subject to an appropriation for Staff Bonus to be left to the discretion of the Board.)
DIRECTORS. Messrs. Cunningham and Martin being the Directors longest in office, retire under the provision of the Articles of Association, and, being eligible offer themselves for re-election. Mr. J. Barr, under Article 90 of the Articles of Association ceased to be a Director in October.
AUDITORS. Messrs. Evatt & Co. retire but being eligible offer themselves for re-election.
By Order of the Board
J. W. FULLER,
Secretary.
Kuala Lumpur,
15th March, 1928.
Malayan Collieries, Limited.
Managing Agents' Report for the year ended 31st Dec. 1927 BATU ARANG COLLIERY.
We have the pleasure of submitting herewith our report upon the working of the Batu Arang Colliery during the year ended 31st December 1927. We acted for Mr. J. Barr, the late General Manager, from the 4th January until May, from which latter date the work formerly performed by him was definitely handed over to us.
UNDERGROUND DEVELOPMENT. This was systematically carried out during the year and is well in advance of production.
The North Mine was maintained in a condition of efficiency. Large reorganisations were effected during the year with the result that production was considerably increased, the resultant output represent ting a record in the history of the mine. In this mine, as a result of 15 years working, distances are becoming considerable. There are some 12 miles of permanent roads and ways to be kept open and maintained. The electric locomotives in hauling the year's output from face to main haulage incline covered 14,000 miles.
In the East Mine, now in course of development, there are some three quarters of a million tons of coal blocked out and ready for the hewers. Sand stowage-shaft, bunkers, and flushing chamber were completed during the year, and the main pumping plant is being duplicated. The steel pit top for this mine is now in hand, auxiliary haulage underground is installed, and, upon the arrival of the main electric haulage equipment, the mine will be capable of an output of up to 150 tons per hour. In layout and system of working this East Mine will benefit by the experience gained in the old established North and South Mines, which should result in practical immunity from underground fires, and in much more economical working generally.
HYDRAULIC STOWAGE AND UNDERGROUND FIRES An offensive, as distinct from a defensive, policy was inaugurated during the year. A number of fire areas in coal pillars of the old workings were dug out and sand stowed, and it is hoped by this means to eliminate the annoyance of fires in the vicinity of main roads and airways, which fire areas are a legacy of the days when hydraulic stowage was still being experimented with as a possible solution of the then very grave problem of spontaneous combustion. To-day, the efficacy of the system for our own seams is beyond doubt, and while it practically doubles the cost of production, it makes possible a good 95% extraction as against a problematical 20% by our employing any other method. Every yard of coal extracted is now replaced by a, yard of sand, and this branch of the Company's activities is probably on the largest scale of any Colliery outside of Germany.
OPEN CASTS. The output of coal from this source is subsidiary to that from the underground mines. During the year the reserve of stripped coal was brought up to the satisfactory figure of some 300,000 tons. This is readily available in the event of any unlikely temporary "shut-down" of the underground mines, so that the position of the Company and of its consumers is rendered as safe as it is reasonably possible to provide.
BUILDINGS AND PLANT. A start was made during the year to replace the remaining temporary buildings with those of a permanent nature. Standard types are being adopted for village shop-houses, artisans' quarters, coolie lines, etc., and when this programme is completed in the course of the next two years or so, the cost of maintenance will be reduced to a minimum and the efficiency, and incidentally the appearance of the surface, will be greatly improved.
The installation of more central station power and the electrification of all surface operations was gone into during the year, and we hope to be able to place our Consul ling Engineers in a position to make definite recommendations at an early date.
WATER SUPPLY. The demand of the resident labour force and of the power station boilers during the dry spells of the year having outgrown the present supply, a survey was made and plans prepared for a new gravity supply. It is hoped to put this work in hand during the coming year.
KUNDANG SAND PIT. Though production has been greatly speeded up, practically no further expenditure has been incurred on additional prime movers, as the pits will come within the electrification scheme previously mentioned
LABOUR EMPLOYED. The position throughout the year was satisfactory, the labour available at times being considerably in excess of our immediate requirements. The mean average employed was 2500, the dependents bringing the total resident population up to about 3500.
GENERAL HEALTH. The general health of our labour force remained excellent. Notwithstanding the fact that we have a well equipped hospital under a visiting European Medical Officer, the number of in-patients treated during the year represented a very small percentage of the total resident population.
GENERAL. The underground mines were maintained in good condition during the year. Close attention was given to the matter of costs and the more economical working of the mines generally, and in this connection, though the reorganisation was still in progress as at the end of the year we are pleased to be able to report a very fair measure of success.
Of the 365 days of the year, 100% production was achieved during 360 days, the five days lost being as a result of Chinese New Year, during which time it is the custom of the Company to shut down entirely. For the result achieved and the smooth and safe running of the Colliery we are considerably indebted to the loyal assistance of the Mine Manager, Mr. McEwan, and his reconstituted staff.
J. A. RUSSELL & CO.,
Managing Agents. Kuala Lumpur,
15th March, 1928.
Malayan Collieries, Limited.
Managing Agents' Report for the year ended 31st Dec. 1927 PAMOEKAN BAY COLLIERY.
We have the pleasure of submitting herewith our Report upon the working of the Pamoekan Bay Colliery during the year ended 31st December 1927. We acted for Mr. J. Barr, the late General Manager, from the 4th January until May, from which latter date the work formerly performed by him was definitely handed over to us.
MINE DEVELOPMENT. Production was, as in previous years, confined to the-top seam of the measures. Owing to several faults encountered, mine development as at the end of the year was not so far advanced as had been planned. During the year a new power driven boring drill capable of boring to a depth of 800 feet was acquired, and is now engaged in boring in advance of the workings. The results of the bores will enable development to be planned to result in much less dead work than has been the case in the past. During 1928 it is hoped to arrange for simultaneous production from both seams, so that should the top seam continue to encounter trouble, the output from the lower seam will, it is hoped, make good the deficiency.
COAL CUTTING MACHINES. The six machines worked satisfactorily throughout the year. The coal with depth becomes harder, a condition calling for machines with a different cutting device to ensure maximum capacity. This change of practice entails the scrapping of the cutting element of the existing machines and a gradual change over will be effected during the coming year.
GENERAL CONDITIONS UNDERGROUND. Owing to extensive development to the dip, ventilation very early in the year caused a good deal of trouble and a second fan of a capacity similar to that of No. 1 was installed. It is planned to install a fan of a capacity sufficient for the requirements of both seam workings, and this will probably be in operation towards the end of 1928.
New pumps were ordered 1o handle the water drawn by the lower levels. The underground haulage systems were considerably extended. Roof conditions throughout the mine, although always such as to call for continual vigilance, shewed no change during the year.
SURFACE. The Central Station Power Plant was augmented by the acquisition of two 300 K. W. Sets, the erection of which was still in progress at the end of the year. An Ice Plant of a daily capacity of 10 cwt. was installed, and is greatly appreciated by the staff and resident population generally. A number of major alterations were made to the general surface layout with a view to more speedy and economical handling of the product.
A new bungalow was erected for an additional member of the staff and all plant and buildings were maintained in good order.
LABOUR EMPLOYED. The total labour employed at the end of the year was 761 made up of 408 natives of the Netherland East Indies and 353 Chinese. Our output was rendered possible with this comparatively small labour force owing to the general employment of machines underground.
GENERAL HEALTH. The general health was, as usual, exceedingly good Dr. Bertels and later Dr. Kotter of Pasir, paid regular visits.
STEAM LAUNCHES. The S. L. Pamoekan was disposed of during the year. The purchase of another launch was negotiated in 1926 and was taken delivery of in the year under review and is now maintaining the essential services between the Mine and Kota Baroe and Pegatan.
SHIPPING. 59 ships were loaded and dispatched. Special attention was paid to the speeding up of the loading of ships, and in this connection we are pleased to be able to record a considerable saving. However, we are not yet satisfied and further improvements are planned during 1928.
GENERAL. We have pleasure in reporting that, as in former years, we have continued to receive the greatest courtesy and assistance from officials of all grades of the Netherlands East Indies Government Service. The mine was visited by a number of high officials including Mr. de Haan, Resident of South and East Borneo Mr. Swaab, Assistant Resident, Bandjermasin; Mr. Elenbaas Assistant
Resident, Kota Baroe; Mr. Hekking, Controleur, Pegatan; Captain Reeman controleur Pasir, and Major Habbema, Bandjermasin. Messrs. Bruinsme and Tusset Inspectors of Mines; Mr. H. Palm, Labour Inspector and the Inspector of Machinery made the customary visits. J
While the output shews a distinct progress on previous years, but for the faults encountered, the figures would have been more satisfactory Our appreciation is due to the present staff for their good services.
J. A. RUSSELL & Co. Kuala Lumpur, Managing Agents.
15th March, 1928.
MALAYAN COLLIERIES,
LIMITED.
(INCORPORATED IN F.M.S.)
DIRECTORS' REPORT
AND
ACCOUNTS
For Year Ended 31st December, 1927.
TO BE PRESENTED AT THE
FOURTEENTH ANNUAL GENERAL MEETING OF
SHAREHOLDERS
TO BE HELD AT THE
Registered Office of the Company, Hongkong & Shanghai Bank Buildings, Kuala Lumpur,
ON
Friday, the 30th March, 1928, At 11 a.m.
J. W. FULLER,
Secretary.
Printed by Kyle Palmer and Co. Ltd. Kuala Lumpur
MALAYAN COLLIERIES LIMITED.
(Incorporated in Federated Malay States)
HIGHER PROFITS DUE TO LOWER COSTS.
The fourteenth annual general meeting of Malayan Collieries, Ltd., was held at the Hongkong and Shanghai Bank Buildings, Kuala Lumpur, this morning, with Mr. J. A. Russell in the chair. Others present were Messrs. A. B. Slee, J. S. M. Rennie, W. D. Fraser, Yong Shook Lin, P. W. Gleeson, F. Cunningham, H N. Ferrers, W. H. Martin and J. W. Fuller (secretary).
After the notice convening the meeting had been read, the adoption of the balance sheet and accounts to Dec. 31, 1927, and the reports of the directors and auditors, was proposed by the Chairman, and being seconded by Mr. Ferrers was unanimously carried.
The Chairman, in his speech, said: The report and accounts having been in your hands for the required period, I suppose, with your consent, that they be taken as read. I again have the pleasure of being able to report a record year, both as regards tonnage and net profits. While the tonnage shows an increase, the gross revenue figure is actually lower, the enhanced profits being entirely derived from reductions made during the year in the cost of production. That is to say, although we have sold more coal, we have received less total money for it, yet still made a bigger profit. This is, I think you will agree, a very remarkable achievement, and shows that the company's increased prosperity is not being made at the expense of its customers. It is indeed the policy of your board to effect even greater improvement in the efficiency of producing, transporting and marketing its coal, and, while not reducing the rate of its shareholders' dividends, to lower still further the price of its product to its clients.
Financial Matters.
Marine transport costs during the year show a considerable saving. The accounts before you do not, as in previous years, show the F.M.S.R. coal freights prepaid by us on pit head sales, and eventually recovered; but only the unrecovered ones. These F.M.S.R. coal freights paid but recovered by the company amounted approximately to $471,000.
Royalties on coal were up by $21,956.18, this increase being due in part to the low allocation for Dutch Government royalty made for 1926, as was explained at this meeting last year, and in part to the natural increment incidental to a larger output.
Depreciation has been increased by $4,243.64 over the previous year, and amounts to the very respectable total figure of $108,203.55.
Mine amortisation is calculated to amortise the Batu Arang leasehold property account in about another 15 years from date. Considering the long life of the Batu Arang property, this allowance has hitherto been considered ample to cover both properties; but next year the amount may be revised in order more specifically to include the Pamoekan Bay leaseholds. The amount of our amortization fund is more than covered by investments in gilt-edged securities.
Taking the balance sheet as a whole, it is, I think you will agree, very evident that the company is in a better position than ever before. Sundry creditors are a little down, while sundry debtors and bills receivable are up by just about the amount to be expected as a result of the increased turnover. Coal on dumps is a little higher, but this difference really represents coal that was actually loaded but had not left the mine at the close of the year. With an increased turnover, quite naturally increased stocks become necessary. Cash in banks and in hand at $431,810.69 is down by $107,142.05, but as against this investments in gilt-edged securities are up by some $248,554.77.
The Final Dividend.
You will see that after paying three interim dividends during the year, amounting to 22 ½ per cent., and after allowing for directors' and auditors' fees, the former at a slightly increased rate, there is a balance of $735,299.49 remaining to be dealt with at this meeting. Your directors recommend a final dividend of 12 ½ per cent, which will absorb $321,881.25, and will give shareholders a total return of 35 per cent., upon their shares, which is at the same rate as that for 1926. Your directors further recommend that the balance of development account standing at $176,128.44 be written off, thus extinguishing this account altogether. This will leave a sum of $237,289.80, and for the disposal of this amount we recommend that $100,000 be transferred to general reserve bringing the same up to $1,200,000, and the balance of $137,289.80 be carried forward, subject to staff bonus, to the 1928 accounts. The carry forward is a little lower than that brought forward in the previous year; but in the sound financial circumstances of the company it is considered ample. Out of the balance to be carried forward, your board would ask you kindly to sanction its paying the customary bonuses to the staff upon the mines, the actual amount of the bonus to be left as usual to the discretion of the board. The bonus, as in previous years, will be paid only to members of the staff actually employed at the mines.
Everything " Running Smoothly."
There is little left for me to tell you. The year marked changes in the general management, which have already been described. Everything at the moment is running smoothly, and when the time comes to report to you on the current year we hope to be able to say that it has been a year of even greater progress.
During the year at present under review, except for a little shortage during the first half, the Railways made ample provision for the transport of our output, and, with the wagons now under construction or contemplated, we anticipate no difficulty in distributing the increased demand which we expect to be called upon to meet as the year progresses.
Marine transport costs showed a considerable saving, and we were able to keep our chartered ships running to a very satisfactory schedule. The matter of the benefits to be derived from the ownership of our own ships was considered during the year, and the expert opinion obtained by me in London is to the effect that worthwhile savings would result. However, still further information both as to shipping and the mine is required before a definite policy can be arrived at.
Technical Investigations.
The matter of the improved combustion of our coal, especially Rawang coal, had our attention during the year. Developments in low temperature carbonisation and also in pulverised fuel firing practice were studied. The former has been closely followed by this company ever since the inception of the company, as a study of our early reports will show. I myself have attended trials made upon our coal in England as long ago as 1916. Low temperature carbonisation however, is still in the experimental stage the world over, and while one reads a lot about progress with plants on a commercial scale, we have yet to see a satisfactory balance sheet of the various companies' operations.
With regard to the current year, all that I feel that I can or need say is that your board sees no reason at all why it should not be fully as prosperous as the one which is past.
I shall be glad to answer, if I can, any questions bearing on the report and accounts which shareholders may care to ask.
The payment of a final dividend of 12 ½ per cent, for the year 1927 was proposed by the Chairman, seconded by Mr. Ferrers and carried.
The Chairman next proposed the re-election of the retiring directors, Messrs. F. Cunningham and W. H. Martin. The former having been seconded by Mr. P. W. Gleeson and the latter by Mr. W. D. Fraser, both were reelected.
Messrs. Evatt and Co. were re-elected auditors.
After the presentation of the report, Mr. Rennie asked in what way any dividends from the Dutch Company (Pamoekan Bay Colliery) had been shown in the accounts. The Chairman replied that the board had come to the conclusion that in the interests of the shareholders further particulars should not be made public, but if any shareholder genuinely wished, for his private information, for any further particulars, he would be glad to supply him with them afterwards.
Mr. Slee asked where the reserve for sundry debtors came from, and the chairman explained that the reserve had been brought forward from last year, but had been increased this year by $3,000.
It was notified that the share registers would be closed from March 23, 1928, to March 31, 1928, both days inclusive.
After the business of the meeting had been concluded, Mr. Ferrers proposed a vote of thanks to the chair (Mr. Russell), and also to the managing agents, Messrs. J. A. Russell and Co., (particularly mentioning Mr. H. H. Robbins, of the managing agents' staff) for the way in which the business of the company and its mining operations had been conducted during the year.
Malayan Collieries, Ltd
(Incorporated in F.M.S.)
PROCEEDINGS
AT THE
FOURTEENTH ANNUAL GENERAL MEETING OF SHAREHOLDERS
HELD AT THE
Registered Office of the Company, Hongkong & Shanghai Bank Building, Kuala Lumpur,
ON
30th March, 1928
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:
J. A. Russell (Chairman)
H. N. Ferrers ` F. Cunningham
W. H. Martin A. J. Kelman
Secretary J. W. Fuller, A. C. A.
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 A. Butchart
Do. H. L. Griffin
Do. J. S. Gay
Mechanical
Engineer J. Kinnear
Electrical Engineer H. Tudor
Pamoekan Bay Colliery Staff
Mine Manager J. M. Muir (acting)
Underground
Manager E. A. D. Buck
Surveyor F. W. Brickman
Mine Assistant T. E. A. Benton
Do. J. Findlay
Do. J. Murphy
Mechanical
Engineer T. Duncan
Electrician J. Sument