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For the descendents of Richard Dearie and his son John Russell


Malayan Collieries Report Accounts and A.G.M.1929

Malayan Collieries, Limited.
(Incorporated in Federated Malay States.)
Directors
JOHN ARCHIBALD RUSSELL, Esq. (Chairman),
HUGH NORMAN FERRERS, Esq.,
FREDERICK CUNNINGHAM, Esq.,
WILLIAM HENRY MARTIN, Esq.,
ALBERT JAMES KELMAN, 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 Fifteenth 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, 27th March, 1929, at Noon, for the following purposes: —
To receive and consider the Balance Sheet and Accounts to 31st December, 1928, and the Reports of the Directors and Auditors.
To Declare a Final Dividend for the year 1928.
To Declare an Extraordinary Bonus for the year 1928.
To Declare Directors’ remuneration for the year 1928.
To Elect Directors in place of those retiring.
To Elect Auditors for the ensuing year.
The Share Registers will be closed from Thursday, 21st March, 1929, to Thursday, 28th March, 1929, both days inclusive.
By Order of the Board,
J. W. FULLER,
Secretary.
Dated 12th March, 1929.
Hongkong & Shanghai Bank Buildings, Kuala Lumpur, F.M.S

.
Malayan Collieries, Limited
(Incorporated in Federated Malay States.)
Directors' Report for the Fifteenth Year of the Company ended 31st December, 1928.
The Directors have pleasure in submitting their Fifteenth Annual Report and Statement of Accounts for the year ended 31st December, 1928.
The working of the Collieries is reviewed in the appended reports by the Managing Agents and need not be again traversed here. The outputs from both Collieries represented record tonnages, resulting in, we are pleased to say, a record net profit.
BATU ARANG. The demand for Rawang Coal increased with the bringing into commission of new mining and industrial plants throughout the F.M.S.
The Colliery is in a position to respond to any likely increased demand in the immediate future, while development and equipment continue to be kept well in advance of current requirements in order to be in a position to cope with more distant needs.
With a view to the counteracting of higher costs incidental to deeper workings, and in order to place this Company in a position to pass on to consumers still further reductions in price, a comprehensive programme involving considerable capital expenditure has been entered upon. It is aimed over the next three or four years to equip mechanically all departments of this Colliery in the most modern and efficient possible manner.
PAMOEKAN BAY. Here also the output shewed a further substantial increase on the figures for the previous year; but is still far below the figures which it is your Board's policy to obtain.
As indicated in the Managing Agents' report on this Colliery, the cause of considerable disappointment during the year was one of personnel. The Chief Mines Superintendent, of whom your Board entertained such high hopes for the advancement of this Colliery, failed to uphold his very considerable Home reputation under Tropical and Asiatic labour conditions. When this fact was once clearly proven, no time was lost in terminating the Chief Mines Superintendent's appointment, and in making other arrangements.
STAFF GENERALLY. Apart from our foregoing reference, nothing of importance to justify inclusion falls to be reported here.
To provide change and relaxation for the members of the staff of the Company, a site has been acquired on Fraser's Hill and it is expected to commence building shortly.
INVESTMENTS. These as such were not added to during the year, but the royalty on coal produced from Pamoekan Bay Colliery was compounded for the sum of $850,000 and has been capitalised. As the leasehold of the Pamoekan Bay Colliery is now the entire property Mynbouw en Handel Maatschappij Goenoeng Batoe Besar without encumbrance, it has been considered preferable in future to shew this asset in the Balance Sheet as Leasehold Property, and the whole has accordingly been transferred to this account.
PROFITS. The profits for the year under review, subject
to Directors' and Auditors' fees, amount to . . $1,519,215.60
To which is to be added the- unappropriated
balance from the previous account of ... $137,289.80
Less Staff Bonus 1927 ... 9,640.00
127,649.80
$1,646,865.40
Three Interim Dividends of 7 ½ % each on 257,505 shares
were declared during the year absorbing ... 579,386.25
$1,067,479.15
You will be asked to sanction Fees to
Directors in respect of 1928 of ... $25,000.00
and Auditors' fees of ... 3,500.00
28,500.00
Leaving available ... $1,038,979.15
Which your Directors recommend should be dealt with as follows: —
Final Dividend 12 ½ % ... $321,881.25
Extraordinary Bonus 5% ... 128,752,50
Write off Leasehold Property ... 441,620.00
892,253.75
Balance to carry forward to next year's account ... $146,725.40
(Subject to an appropriation for Staff Bonus to be left to the discretion of the Board).
DIRECTORS. Mr. J. A. Russell, being the Director longest in office, retires under the provision of the Articles of Association, and, being eligible, offers himself for re-election. Mr. A. J. Kelman having accepted an invitation of the Directors to join the Board, offers himself for election by the Shareholders.
AUDITORS. Messrs. Evatt & Co. retire, but being eligible offer themselves for re-election.
By Order of the Board,
J. W. FULLER,
Secretary.
Kuala Lumpur,
11th March, 1929.


The Directors,
Messrs. MALAYAN COLLIERIES LTD., Kuala Lumpur.
Gentlemen,
PAMOEKAN BAY COLLIERY.
We have pleasure in submitting herewith our report upon the working of the Pamoekan Bay Colliery during the year ended 31st December, 1928.
MINE DEVELOPMENT. As a result of experience and with the very material aid of the power drilling plant which was kept busy throughout the year, the planning of development was considerably simplified so that the progress made with development should have been greater but for the unaccountable failure of the then Chief Mines Superintendent, Mr. Rutherford, to advance a companion air-way into the East Dip section in which area the bores from the surface had indicated the presence of a very large extent of untroubled seams. A change in mine superintendence was accordingly decided upon, since when progress has been more satisfactory, and we hope will shortly be entirely so. A certain amount of development work was carried out in the lower seam, and this work will be proceeded with during the current year.
COAL GETTING MACHINES. Two more machines were brought into commission.
GENERAL CONDITIONS UNDERGROUND. A new Ventilating Fan was purchased: but has not yet been installed. This work will be carried out during the current year.
The auxiliary pumping equipment was increased while the capacity of the main pumps was duplicated.
Extension of the workings called for additions to the auxiliary haulage equipment.
Roof conditions were not generally materially altered; but as the depth of the workings increases, these will call for rather more attention.
SURFACE. No material additions were made to the surface plant. An Electric Loading Shovel was ordered and was expected to be in commission for the three latter months of the year; but owing to delayed delivery the benefit of this shovel will not be felt until the current year.
Two new bungalows and several coolie lines and natives quarters were erected.
The total labour employed at the end of the year was. 1043, made up of 581 natives of the Netherlands Indies and 462 Chinese. The total resident population dependent upon this Colliery is 2200 souls.
GENERAL HEALTH. This was, as usual, very good indeed, and we are to a great extent indebted to Dr. G. E. Kotter, the Company's Visiting Medical Officer, for this satisfactory state of affairs.
LAUNCHES. The Steam Launch purchased during 1926 was withdrawn from commission for inspection and report.
The M. L. "Kalai," formerly of the F.M.S. Preventive Fleet, was purchased as a standby launch for use by the Doctor and in cases of emergency.
SHIPPING. The tonnage loaded, though considerably higher than in the previous year, was taken by 53 ships, as against 59 ships entered and cleared during 1927, this reduction being due to the larger ships employed.
GENERAL. It is with satisfaction that we have to report that, as in the previous years, we have received courteous and helpful treatment from Officials of all grades of the Netherlands East Indies Government Services. The mine was visited by a number of high Officials, including Mr. de Haan, Resident of S. & E. Borneo and his Secretary Mr. Van Reek; Mr. Swaab, Asst. Resident, S.E. Borneo; Mr. E. Elenbaas, Asst. Resident, Kota Baroe; Mr. Hekking, District Controleur, Captain Reeman and Capt. Drost, District Controleurs and Military Officers; Mr. de Jongh, Chief of the Government P.W.D.; Mr. Van der Ploegh, Chief of Mining Department of P.W.D.; Mr. Arnold, Chief Mines Inspector from Bandoeng; Mr. Van Beukering, Chief Customs. Officer at Kota Baroe, Dr. Ingenieur Zeijlomans Van Emmichoven and Mr. Ubaghs, Government Geologists; Mr. Post Uiterweer, Inspector of Native Labour; Mr. Bruimsina and Mr. Toussaint, Mines Inspectors; and Mr. Germing, Mining Electrical Inspector.
STAFF. Mr. R. Rutherford, who was engaged, when holding a very responsible Colliery position in South Wales, as Chief Mines Superintendent to be the Company's principal technical adviser, and in particular to re-organise the underground workings at Pamoekan Bay, arrived on the property and took charge of it on the 2nd January 1928. In view of your Managing Agents reports as to unsatisfactory outputs, and increasing costs. Members of the Board visited the property with our Managing Agents representative on the 26th August, 1928 and found that underground conditions at the mine had materially deteriorated since Mr. Rutherford took over the resident control. This state growing worse, Mr. Rutherford's agreement was terminated on the 14th November, 1928.
We are, Gentlemen,
Yours faithfully, J. A. RUSSELL & CO.,
Managing Agents. Kuala Lumpur, 5th March, 1929.

(For balance sheet see Malayan Collieries page for 1929)

MALAYAN COLLIERIES
LIMITED

REPORT And ACCOUNTS

Year Ended 31st December, 1928

Registered Offices
HONGKONG & SHANGHAI BANK BUILDINGS
KUALA LUMPUR
F.M.S.
The Directors,
Messrs. MALAYAN COLLIERIES, LTD., Kuala Lumpur.
Gentlemen,
BATU ARANG COLLIERY.
We have pleasure in submitting herewith our report upon the working of the: Batu Arang Colliery during the year ended 31st December, 1928.
The year has been one of very definite progress in all directions, though the movement in the matter of the several new capital works indicated, in our last year's report has not been as rapid as we had hoped. With steadily increasing demands upon the Colliery for its product, culminating in another record year's output, the normal staff has been too fully occupied in work incidental to production to be able to devote sufficient time to our programme of new capital works: but with the recent and contemplated additions to staff to take charge of these capital works, and with the large volume of information now reduced to paper, results should he more concrete and easily visible during the current year.
UNDERGROUND DEVELOPMENT. The systematic advancement of this was continued, and in all directions is suitably in advance of production.
THE NORTH MINE was maintained in a condition of efficiency and the output from this mine represents another record. The new Main Deep section was developed and long-wall production commenced towards the close of the year.
The controlling factor on outputs from this mine now being the main haulage, the transfer of the existing haulage to other uses, and the installation of a new electric haulage of increased capacity, is being considered.
EAST MINE DEVELOPMENT, The East Mine output also exceeded that of any previous year, this notwithstanding the fact that the new pit-top and haulage were not installed before the close of the year. Everything underground is ready for rated production upon the completion of the pit top installation, which installation will be of the most recent type in every respect.
HYDRAULIC-STOWAGE. All coal extracted from the underground workings was as usual replaced by sand hydraulically stowed. While, as we have previously explained, the nature of our seams renders impossible the entire elimination of fires, Hydraulic-Stowage has reduced the incidence and the danger of such fires to the maximum possible extent.
OPEN-CASTS. Production from the Open-cast mines continued to augment that from the Underground Mines. The tendency in this section is to centralise operations, and when the available coal in the several existing Open-cast mines is exhausted, coal winning by this method will be concentrated in one mine, which one mine is now being prepared and is to be equipped upon the most mechanically efficient lines possible. The stripped reserves as at the end of the year shew an increase of some 25% on those as at the close of the previous year.
BUILDINGS AND PLANT. All permanent buildings were maintained in good order and repair and a number of additions were made. As little money as possible was spent upon the remaining temporary buildings, for, as already indicated, the policy is to replace these by permanent brick and re-inforced concrete buildings as they become unsuitable for further service.
The plant of the Colliery has never been in a better state of repair, while considerable work in the way of re-modelling and adaptation has been carried out, all with a view to improved efficiency.
The matter of increased central station power was worked up to the stage of calling for tenders, and it is expected that orders for all equipment will be placed in the course of the next month or so.
WATER SUPPLY. On the advice of the Health Officer and. the Company's Medical Adviser, we have abandoned the proposed gravity supply. A license has now been obtained from Government, to take water from an adjoining Forest Reserve and surveys are nearing completion. This will call for some two miles of pipe line to the power house and main residential area. It is a low level supply and it is proposed to pump the water to a service reservoir placed on a hill at a suitable height to ensure gravitation to all users.
KUNDANG SAND PITS. New hunkers and earthwork for new sidings were completed during the year, as also was the opening out of a new mine to permit of work on either side of the siding.
LABOUR EMPLOYED. The position throughout the year was satisfactory, there being no shortage of any class of labour. The mean average number employed remained about the same as during the previous year, though the resident population shews a distinct tendency to increase.
GENERAL HEALTH. This remained good, the lost time owing to illness, being very small indeed. The Hospital under our Visiting Medical Practitioner grew in favour during the year, though not at any time was accommodation overtaxed
GENERAL. No incident of outstanding importance falls to be recorded, instead the year was one of steady progress as a result of loyal and unremitting service by all concerned.
We are, Gentlemen.
Yours faithfully,
J. A. RUSSELL & CO.,
Managing Agents. Kuala Lumpur,
5th March, 1929.

MALAYAN COLLIERIES,
LIMITED.
(INCORPORATED IN F.M.S.)
DIRECTORS' REPORT
AND
ACCOUNTS
For Year Ended 3lst December, 1928.
TO BE PRESENTED AT THE FIFTEENTH ANNUAL GENERAL MEETING OF
SHAREHOLDERS
TO BE HELD AT THE
Registered Office of the Company,
Hongkong & Shanghai Bank Buildings, Kuala Lumpur,
ON
Wednesday the 27th March, 1929,
At Noon.
J. W. FULLER,
Secretary

MALAYAN COLLIERIES,

LIMITED.

(INCORPORATED   IN    F.M.S.)

PROCEEDINGS

AT   THE

FIFTEENTH ANNUAL GENERAL   MEETING OF

SHAREHOLDERS

HELD   AT THE

Registered Office of the Company,

Hongkong & Shanghai Bank Buildings, Kuala Lumpur,

ON

Wednesday the 27th March, 1929,

At Noon.

Printed by Kyle, Palmer & Co.. Ltd., Kuala Lumpur

MALAYAN COLLIERIES,

LIMITED.

(INCORPORATED   IN    F.M.S.)

PROCEEDINGS

AT   THE

FIFTEENTH ANNUAL GENERAL MEETING OF

SHAREHOLDERS

HELD   AT THE

Registered Office of the Company, Hongkong & Shanghai Bank Buildings, Kuala Lumpur,

ON

Wednesday the 27th March, 1929,

At Noon.

Malayan   Collieries   Limited.

(Incorporated in Federated Malay States)

The Shareholders,

MALAYAN COLLIERIES, LTD.

Dear Sir or Madam,

We have pleasure in reporting to you the proceedings at the Fifteenth Annual General Meeting of the Shareholders of the Company which was held at the Registered Office, on Wednesday the 27th March, 1929.

We should add that, as the meeting was dispersing, Major A. B. Slee informed the Chairman that he believed the Chairman had not fully understood his question regarding the purchase of the royalty rights on Pamoekan Coal, and explained that he would like to know what royalty was being paid by the Company prior to its acquisition of those rights. The Chairman in reply informed Major Slee that the Company had formerly paid a royalty which worked out at an average of 40 cents per ton of coal sold, with a minimum of $50,000 per annum.

Yours faithfully, MALAYAN COLLIERIES, LTD.,

J. W. Fuller,

Secretary.

Malayan Collieries, Limited.

(Incorporated   in Federated Malay States.)

Proceedings of the Fifteenth Annual General

Meeting,

The fifteenth annual general meeting of the Malayan Collieries Ltd., was held at Hongkong and Shanghai Bank Buildings, Kuala Lumpur at noon on the 27th March, 1929.

The Chairman, Mr. J. A. Russell, presided and the others present were: —Messrs. W. H. Martin, A. J. Kehnan, H. K. Ferrers, F. Cunningham (Directors), E. C. Wakefield, C. B. Towill, W. D. Fraser, H. B. Orr and Major A.  B.  Slee (shareholders) and the Secretary (Mr. J.  W.  Fuller).

The Chairman, before moving the adoption of the balance sheet and accounts to December 31st, 1928 and the report of the directors and auditors said: —

Gentlemen,

The report and accounts having been in your hands for the required period, I presume it is your wish that they be taken as read? I trust that the perusal of the accounts caused you something of the pleasure which I myself feel in being able to report another year of very material progress and substantially increased tonnages and total profits. Once again the increased profit has been made, notwithstanding a substantial reduction in revenue received per ton of coal sold during the year. This fall in revenue per ton has been due to reductions which we have made in the selling price to customers, particularly in our lump grades of Rawang coal; to the introduction of a zonal system under which we hope eventually to deliver Rawang coal to all consumers situated at any point on the F.M.S. Railway system at a uniform rate; and to the very pronounced increase in the demand for Rawang small coal, which coal is the lowest priced of our three grades. Fostered by its low price, the demand for our Rawang Small Coal has steadily increased until to-day more than 50% of our output is taken in this form. This increased demand for cheap Rawang "Smalls'' naturally decreases our average rate of income per ton of coal sold. That, despite selling our coal at lower prices, we have been able to increase our profits, has only been effected by rigid economy and the introduction of improved methods. Pleased though we are with the progress made last year, it is your Board's policy to effect still further economies in the interests alike of shareholders and consumers.

In the accounts before you we have reverted to the original system of including F.M.S. Railway Freights paid on behalf of F.O.R. Pit Head buyers and eventually recovered by us. Figures as per Trading Profit and Loss account can be rendered comparative with 1927 figures by deducting from Expenditure and Receipts the sum of $611,944.97. Our actual Railways Freight bill was much in excess of this amount, as of course freights paid by us on coal sold for destination are not included, these having been absorbed into costs.

Sea Transport, Storage and Delivery Charges per ton of Pamoekan Coal transported were satisfactory. A satisfactory return freightage was obtained by our either sub-chartering to others our returning empty vessels, or by ourselves carrying cargoes of general merchandise in them from the ports where our steamers discharge their coal to destinations nearer to the Colliery. We have thus become ocean carriers of other goods besides coal, and have to this extent had to enter the general shipping business.

Royalties on coal remain appreciably the same as for last year. While the F.M.S. Government Royalty was considerably up, the compounding of the privately-owned Royalty on Pamoekan coal has represented a corresponding saving.

Depreciation for the year at $233,268.35 has been increased by $125,064.80 and no doubt you will welcome an explanation of this increase. As explained in the Board's Report to you, a comprehensive programme, involving considerable capital expenditure, has been entered upon. While depreciation in the past has been ample, to write off every item of plant well within its working life, our determination to bring, and to maintain, the Collieries at the highest possible pitch of efficiency, mechanically and in every other way, has introduced the factor of obsolescence. Batu Arang Colliery has sprung from a comparatively small beginning away back in 1913, and while at that time the plant was well selected there is now every indication that it would be advisable in the interests of efficiency to change a considerable portion of it to more modern and much larger plant. Practically the whole of the, Opencast equipment comes under the above category, and other cases in point are the North Mine Main Haulage and the Central Power Plant. The bulk of the Opencast equipment was purchased during the War, when we considered ourselves exceedingly fortunate in obtaining plant of any description at all. This Opencast plant has served a very useful purpose and has by now practically been written off, but no consideration of its further useful, as distinct from its efficient, life will influence us to retain it for any longer than is necessary to complete the new equipment which we are installing. When the North Mine was equipped some fifteen years ago, its haulage, with its ponderous gears and massive drums, was one of the show items of the property. To-day the Managing Agents tell us that in the interests of increased outputs and efficient working, this haulage must give place to an electrically operated machine of double the capacity. Our Central Generating Plant when it was installed was as efficient as anything in the country. To-day it is insufficient for our purpose, both as regards the quantity and the range of action of its output, and it is to be replaced by Turbo-Alternator sets of some four times the capacity. Much the same applies to a considerable proportion of the rest of the plant. The transition is to be gradual; but it will eventually be complete, and we are determined that when that time comes we shall not be confronted with the problem of inflated plant values.

Mine Amortisation. This is only increased by $12,500/- to 50,000/- for the year. When addressing you last year, I indicated that this item for 1928 would be greater; but of course the compounding of the Pamoekan Bay Royalties has altered the position since then, and instead of concentrating upon the Amortisation Fund we can now divide our attention between doing this and the writing down of Leasehold Property. You will observe that the whole of the Amortisation Fund of $481,250.00 is represented in investments in good securities. It is your Directors' intention to continue this policy of outside investment.

I think you will agree that an analysis of the Balance Sheet discloses a stronger position than ever before in the history of the Company. Sundry Creditors and Bills Payable are somewhat up due to the larger volume of business—a remark which applies to the increase of some $185,943 under Sundry Debtors and Bills Receivable. The increase in the Reserve against Sundry Debtors is in proportion to the increase in the amounts outstanding, and is, I think it is unnecessary for me to assure you, ample for all requirements.

The increase in the value of stocks of coal on Dumps reflects the increased turnover, and the figure may be regarded as entirely satisfactory and not in any way indicating any lack of demand for the product of our Pamoekan Colliery. The item ''Investments" has been affected by the transfer of the Pamoekan Bay property from under this head to that of "Leasehold Property".

As set out in the Directors' Report, after paying three Interim Dividends during the year amounting to 22i% and after allowing for Directors' and Auditors' fees at somewhat increased rates, there is a balance of $1,038,979.15 remaining to be disposed of at this meeting. Your Directors recommend a final dividend of the usual 12 ½  % which will absorb $321,881.55 and will give shareholders their customary 35% dividend on their shares. In view of the record profits, your Directors are also recommending the payment this year of a special bonus to shareholders of 5% absorbing a further $128,702.50. With the large programme of capital expenditure before us, it would not be wise to do more than this at the present stage. When we have modernised and greatly increased our whole plant, and when we have still further reduced the price of Rawang Coal to our customers, we shall be in a position to judge whether we can afford to be more liberal to our shareholders. Your Board is very much against any inflation of capital, and it is its present policy to finance all improvements and enlargements as much as possible out of revenue. It believes such a course to be the best in the long run, and to be in the truest interests of the shareholders. Your Directors are hopeful that in two or three years' time, when they shall have completed their present programme, this Company will be in a really exceptionally strong position. Your Directors further recommend that the sum of $441,620/- be written off Leasehold Property. This will leave a sum of $146,725.40 which we recommend be carried forward, subject to Staff Bonus, to the 1929 accounts. This carryforward is a little more than that brought into the accounts for the previous year and is considered to be sufficient for requirements.

Such are the financial results of the Company's operations for last year and of your Board's recommendations for their disposal. I do not know that there is a great deal more of interest for me to tell you. As previously stated, the year has been one of very material progress, not only in at present calculable things such as tonnages, costs and proceeds of sales, but also in the more abstract essentials, which are the foundation of the calculable things of tomorrow, such as organisation, research and service.

I feel that no year can be completely and satisfactorily closed without reference to the manner, in which the F .M.S. Railways provides for the reception and handling of the increasingly large outputs of the Batu Arang Colliery. While it would not be quite correct to say that the rolling stock was at all times fully capable of the demands placed upon it, and that deliveries were made in a perfectly regular manner, we can quite frankly say that no really serious hitch occurred, and I think that I am perfectly right in stating that not once during the year under review did a consumer of Rawang Coal find it necessary to log so much as an hour's delay due to shortage of coal because of failure on our part to supply or of the Railways to deliver. Reliability being the keynote of Railway work, this, I think, is the highest tribute that I can pay.

Marine transport was, as in past years, conducted in chartered tonnage. As a result of the improved outputs we were enabled to employ larger ships than hitherto; but, while the results have shewn a further reduction in costs, we have experienced difficulty in obtaining ships combining the tonnage and comparatively high speed which is desirable for our special trade. It is just this condition which may later on compel us to enter the ranks of deep-sea ship-owners instead   of charterers as at present.

Considerable further research work was conducted during the year in the matter of Low Temperature Carbonisation, Briquetting, Pulverised Fuel Firing and in the perfection of the firing of Rawang Coal on Mechanical Grates. While the results in connection with the first three have been enlightening and mark a very definite step forward towards the perfection of methods, it is more particularly in regard to combustion on chain grates that the major improvements have been effected. During the year it has been proven that under the most efficient locally existing central station conditions, Rawang Small Coal has in practice an evaporative capacity of 5.75 lbs. of steam per pound of coal. In practice also a kilowatt of power is being obtained from 2 ½ lbs. of our coal, and on this basis we are therefore delivering "Rawang Smalls", to any point on the F.M.S. Railway System, at a price which will permit of a fuel cost of under one cent per unit. This figure, however, favourable though it may seem, represents a station overall efficiency of but 15.8%. In the light of present experience it should really be possible in practice to obtain a kilowatt of power from 2.15 lbs. of "Rawang Smalls". This would represent an overall thermal efficiency of 18°/, as against the highest efficiencies in the United Kingdom of in the vicinity of 22%. On the basis of this actually obtainable 18% overall efficiency, we are thus really delivering our "Rawang Smalls" to any point on the F.M.S. Railway system, at a price which, will permit of a fuel cost of under .85 cents per unit. This maximum figure of .85 cents per unit compares very favourably with the very best figure obtainable in the United Kingdom with the higher grade coals mined there.

Experience has taught us that in the larger and more up to date and efficient self-contained steam Dredging Plants, the consumption of "Rawang Smalls" averages 6 lbs. per yard treated. This represents a figure of from 1.8 to 2.5 cents per yard according to the situation of the plant. This is a remarkable advance on the figures of a few years ago; but efficient though the results are, there is we believe, further room for material improvement, and it is the policy of your Board to aid such improvement in every way in its power. In the meantime, the gradual extension of the zonal system will tend materially to reduce the maximum figure of 2.5 cents per yard which I have just mentioned.

The Managing Agents report loyal and efficient service by such members of the Collieries' staffs as were with the Company at the end of the year, and I am sure that you all appreciate the value of such loyalty and service and your Board would ask you kindly to sanction its paying the customary bonuses to the staffs upon the mines, the actual amount of the bonus to be left to the discretion of the Board. The bonus, as in previous years, will be paid only to members of the staffs actually employed at the mines.

With regard to the current year, I can only say that, notwithstanding the higher standard of profit now established, your Board cannot see why, with a continuance of efficient and long-sighted management, it should not be as prosperous as the one just closed.

I shall be glad to answer, if I can, any questions bearing on the report and accounts which shareholders may care to ask.    (Applause).

Mr. E. C. Wakefield: What amount of compensation was paid to Mr.  Rutherford upon the termination of his agreement?

The Chairman: As in accordance with the terms of his agreement for service, upon the summary cancellation by the Company of his agreement he was paid the sum of $6,751.42, being 3 months salary in lieu of notice, leave pay due and passage for himself and wife to England.

Mr. E. C. Wakefield: Has the Board ever considered the question of splitting our shares?

The Chairman: About a year ago the Board considered the advisability of splitting the shares and came to the conclusion that there would be little or no real advantage to shareholders in so doing. The directors formed the opinion, when they at that date discussed the matter that if splitting the shares made them slightly more liquid, which they were not sure would be the case, they would only become so because splitting converted them into gambling counters. As gambling counters they would, however, fluctuate in market price much more than they do at present. Would this be an advantage to the genuine investors in the Company, as apart from the speculator who has no real interest in it but only wishes to snatch a gambling profit? Besides, fluctuations cut both ways. If the price of the shares at times improved beyond what it is now likely to go to, it would also at other times fall lower than it is now likely to reach. Our endeavour is to make the shares of our company a sound and solid investment. Is it an advantage for an investment aspiring to be a sound and solid one to fluctuate in market price? Your Board thought not, and that the probable disadvantages of splitting the shares more than outweighed the probable advantages of doing so. However, your directors are quite willing to be convinced that the opinion which they formed upon the subject was a wrong one, and if Mr. Wakefield assures us that there is a substantial body of shareholders who wish to have the shares split into smaller denominations, they will certainly reconsider the whole matter.

Major Slee said that there was the question of the small holder and of   the   difficulty of   getting   a   small   number of   shares.    A young fellow might like to invest in the company but found it very difficult to get less than a hundred or fifty shares.

The Chairman: We quite realise that there, are points for and against and we tried to weigh one against the other. We are willing to admit we may have been wrong. Major Slee tells me that it is very difficult to get ten shares; but a fair quantity of shares pass through this company in small numbers and only last week I signed one share certificate for 15 shares. However, I am quite willing to take Major Slee's assurance that it is very hard to get small numbers. It seems to us that providing it actually is possible to get ten shares, it is no more disadvantageous to a small shareholder to buy ten shares of ten dollars each than to buy one hundred shares of one dollar each. However, as there seem to be several shareholders who consider it a desirable thing to split the shares, the directors will reconsider the matter and will be very glad of opinions from other shareholders on the point.

Mr. Wakefield said that he knew of half a dozen cases of friends of his own who would like to buy Malayan Collieries shares. They could not afford to buy ten dollar shares at their present price but they would be willing to put down money if the shares were split and more easy to buy.

Major Slee said he tried hard to buy fifty shares recently and eventually he managed to buy 40 but could not get the remaining ten.

Major Slee asked the Chairman for information as to the basis on which the royalty on coal produced from Pamoekan Bay Colliery had been capitalised.

The Chairman said that the royalties were purchased for $350,000 by negotiations between the two parties. The basis was one which the representatives of the Company and the holders of the royalties, Messrs. The Eastern Mining & Rubber Co., regarded as a fair compromise.

In reply to a further question from Major Slee as to the basis of the purchase, Mr. Russell said that the basis naturally depended upon the estimate which one made of the probable rate of coal production from the property. The directors calculated that by buying the rights for $350,000 they were effecting a saving of considerable benefit to the Company. The sum paid was a compromise between the Board's estimate of the value of the royalty rights and the figure placed on them by the former owners. The Board would not have agreed to the sum paid had it not been convinced that it was doing something which would pay the Company handsomely now,  and even more so in the future.

A final dividend of 12 ½ per cent, for the year 1928 was carried on the proposal of the Chairman, seconded by Mr. W.   H.   Martin.

An extraordinary bonus of 5 per cent for the year 1928 was carried on the proposal of the Chairman seconded by Mr. H. N. Ferrers.

The Directors remuneration of $25,000 for the past year was carried on the proposal of Mr. E. C. Wakefield, seconded by Mr. W. D. Fraser.

Mr. J. A. Russell being the Director longest in office retired under the provision of the Articles of Association but being eligible offered himself for re-election.

The Chairman stated that he was glad to say that Mr. A. J. Kelman had accepted the invitation of the Board to join as a director. He thought that the Company could congratulate itself in having secured a gentleman of such wide mining experience and professional attainments.

Mr. J. A, Russell was re-elected a Director on the proposal of Mr. W. H. Martin seconded by Mr. F. Cunningham.

Mr. A. J. Kelman's appointment as a director was confirmed on the proposal of Mr. H. N. Ferrers seconded by Mr. F. Cunningham.

Major A. B. Slee proposed and Mr. C. B. Towill seconded that Messrs. Evatt & Co., be re-elected auditors for the ensuing year.

On proposing a vote of thanks to the Managing Agents Mr. F. Cunningham addressing the Meeting said: —Before the meeting closes I would like to say how grateful indeed we are to the Managing Agents, Messrs. J. A. Russell & Co., for the very efficient way in which they have managed our mines and I might say that the extraordinarily good balance sheet which your Directors have been able to put before you today is very largely due to their untiring efforts. In conjunction with the managing agents, I should like to mention the name of their Manager, Mr. H. H. Robbins, whose wide range of technical knowledge and indefatigable energy has been of vast help to the company. Mr. Robbins had a seat on the Board during Mr. Russell's absence on leave and he was a tremendous asset to us and we only hope that during the current year it will be possible to find a permanent seat for him on the Board (Applause).

Mr. H.  N.  Ferrers seconded.

A vote of thanks to the Chair proposed by Mr. E. C. Wakefield concluded the meeting.

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. Stanlak           
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

From the Singapore and Straits Directory, Fraser and Neave, 1929. SOAS archives