For the descendents of Richard Dearie and his son John Russell
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Malayan Collieries Report Accounts and A.G.M.1930
LIMITED.
(INCORPORATED IN F.M.S.)
16
DIRECTORS' REPORT
AND
ACCOUNTS
For Year Ended 31st December, 1929.
TO BE PRESENTED AT THE
SIXTEENTH ANNUAL GENERAL MEETING OF
SHAREHOLDERS
TO BE HELD AT THE
Registered Office of the Company,
Hongkong & Shanghai Bank Buildings, Kuala Lumpur,
ON
Monday the 31st March, 1930,
At Noon.
J. A. RUSSELL & CO.,
Managing Agents & Secretaries,
Printed by Kyle, Palmer & Co., Ltd., Kuala Lumpur.
MALAYAN COLLIERIES,
LIMITED,
(INCORPORATED IN F.M.S.)
DIRECTORS' REPORT
AND
ACCOUNTS
For Year Ended 31st December, 1929.
TO BE PRESENTED AT THE
SIXTEENTH ANNUAL GENERAL MEETING OF
SHAREHOLDERS
TO BE HELD AT THE
Registered Office of the Company,
Hongkong & Shanghai Bank Buildings, Kuala Lumpur,
ON
Monday the 31st March, 1930,
At Noon.
J. A. RUSSELL & CO.,
Managing Agents & Secretaries.
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.,
HUBERT HARRY BOBBINS, Esq.,
Managing Agents
J. A. RUSSELL & Co., Kuala Lumpur.
Consulting Electrical Engineers
SPARKS and PARTNERS, London.
Registered Offices
HONGKONG & SHANGHAI BANK BUILDINGS, KUALA LUMPUR.
NOTICE IS HEREBY GIVEN That the Sixteenth 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 Monday, 31st March, 1930, at Noon, for the following purposes: —
To receive and consider the Balance Sheet and Accounts to 31st December, 1929, and the Reports of the Directors and Auditors.
To Declare a Final Dividend for the year 1929.
To Declare Directors’ remuneration for the year 1929.
To Elect Directors in place of those retiring.
To Elect Auditors for the ensuing year.
The Share Registers will be closed from Tuesday, 25th March, 1930, to Tuesday, 1st April, 1930, both days inclusive.
By Order of the Board,
J. A. RUSSELL & Co.,
Secretaries
Dated 15th March, 1930. Hongkong & Shanghai Bank Buildings, Kuala Lumpur, F.M.S.
Malayan Collieries, Limited
(Incorporated in Federated Malay States.)
Directors' Report for the Sixteenth Year of the Company ended 31st December, 1929.
The Directors have pleasure in submitting their Sixteenth Annual Report and Statement of Accounts for the year ended 31st December, 1929.
In accordance with the usual practice, the working of the Collieries is reviewed in the appended Reports of the Managing Agents.
BATU ARANG. The demand for Rawang Coal shewed a substantial increase on previous years, and no difficulty was experienced in meeting this increased demand.
The reorganisation and re-equipment of the Colliery to bring it up to the latest practice proceeded, and considerable progress was made, notwithstanding the extra calls made upon the technical staff as a result of the larger outputs.
PAMOEKAN BAY. The output from this Colliery was slowed down during the second half of the year, owing to the depressed state of markets as a result of over-supplies of Coal. The position was somewhat improved as at the end of the year and stocks were moving more freely, but at considerably reduced prices.
The slowing down of output afforded an opportunity to concentrate more labour upon what was essentially development work, and the result of this will be felt when market conditions become normal and maximum production is again required.
GENERAL. Government has agreed to grant the Company agricultural rights over its Batu Arang properties and your Directors are now busy investigating the most satisfactory manner of utilising these rights.
Owing to ill health, Mr. Fuller left the services of the Company, and the Managing Agents were appointed Secretaries.
INVESTMENTS. These remain unchanged.
PROFITS. The profits for the year under review, subject
to Directors' and Auditors' fees, amount to ... $1,537,852.02
To which is to be added the unappropriated
balance from the previous account ... $146,725.40
Less Staff Bonus 1928 ... 6,883.33
139,842.07
$1,677,694.09 Three Interim Dividends of 7 ½ % each on 257,505 shares
were declared during the year absorbing ... 579,386.25
Carried forward $1,098,307.84
Brought forward $1,098,307.84
You will be asked to sanction fees to
Directors in respect of 1929 of ... $25,000.00
and Auditors' Fees ... 3,500.00
28,500.00
Leaving available $1,069,807.84
Which your Directors recommend should be
dealt with as follows: —
Final Dividend 12 ½ % ... $321,881.25
Write off Leasehold Property ... 400,000.00
721,881.25
Balance to carry forward to next year's account ... $347,926.59
(Subject to an appropriation for Staff Bonus to be left to the discretion of the Board).
DIRECTORS. Mr. H N. Ferrers being the Director longest in office, retires under the provision of the Articles of Association and, being eligible offers himself for re-election. Mr. H. H. Robbins 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. A. RUSSELL & Co.,
Secretaries.
Malayan Collieries, Ltd
The Directors,
MALAYAN COLLIERIES, LTD., Kuala Lumpur.
Gentlemen,
BATU ARANG COLLIERY.
We have pleasure in submitting herewith our report on the working of the Batu Arang Colliery during the year ended 31st December, 1929.
The output of the Colliery shewed a considerable improvement upon all previous years, and production proceeded without a serious hitch of any description.
Maintenance of Plant and Buildings throughout the property was of a satisfactory order.
Progress with Capital works was rather more pronounced than in the previous year, though there is still a considerable amount of expenditure which, owing to the unfinished state of the work, has not yet commenced to shew us any returns. During the current year the first real effects will be experienced, and from this forward the Capital expenditure of the past two years should be reflected in our costs of production.
UNDERGROUND DEVELOPMENT. Close attention was given to all underground workings, and several further improvements in practice have been decided upon.
THE NORTH MINE. In this mine, distances have become considerable with all the attendant disadvantages in the matters of supervision, transport, power transmission, etc., which this implies, and a good deal of time has been devoted to the subject of a further concentration of production. With the measures now adopted and contemplated, it is hoped to reduce costs to a figure comparable with those in the newly-equipped East Mine.
THE EAST MINE. This mine has now passed from the development to the production stage. Tenders for the plant for a completely equipped machine section are now being considered by the Board, and, with this decided upon and installed, everything possible will have been done to ensure the production of coal at the minimum possible cost compatible with all-round efficiency and safety.
HYDRAULIC STOWAGE. The arrangements for this functioned satisfactorily. The change-over to the new system at the sand pits was completed, and the electrification of this plant with power transmitted from the Main Power Station at Batu Arang, is now under consideration.
OPEN-CASTS. Preparations for the eventual centralisation of production from this source were continued. The tendency is to reduce the labour employed on stripping in favour of the mechanical equipment which is steadily being installed. With the bringing into production of the East Mine, the demand upon the open-casts will be considerably eased.
BUILDINGS AND PLANT. All permanent buildings were maintained in good order and repair, and further temporary buildings were replaced by those of a permanent type.
The general Colliery plant was considerably augmented, the whole being maintained at the high standard of efficiency required.
Good progress has been made in preparation for the change over from Direct Current to Alternating Current Power. Two-2000 K.W. Turbo Alternator sets were ordered, and all switch gear and the bulk of the transmission lines have been installed. The foundations for the generating sets are ready, and these should be in operation early in the second half of the current year.
WATER SUPPLY. A scheme for the supply of 750.000 gallons per day for all purposes has been worked out, and construction is to commence immediately. The catchment-area comprises some 600 acres, while the proposed dam will empound some 85,000,000 gallons, the area to be inundated being about 25 acres.
BRICKWORKS. Owing to the demand for bricks for our own requirements, and to the continual enquiries for our product for special purposes where a good quality common clay brick is required, it was decided to reorganise our brickworks with the result that modern plant, with a capacity of a million bricks per month, is now in course of erection.
LABOUR EMPLOYED. The position continued to be satisfactory, the supply at all times being fully equal to the demand.
GENERAL HEALTH. This as usual was exceedingly good. The hospital was maintained to the standard of efficiency required by our Visiting Medical Practitioner.
We are, Gentlemen,
Yours faithfully, J. A. RUSSELL & CO.,
Managing Agents.
Kuala Lumpur,
12th March, 1930.
Malayan Collieries, Limited.
The Directors,
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, 1929.
The production was a little down on the previous year, this being primarily due to a glut of coal in practically all Eastern Markets during the second half of the year. At the time of writing, stocks are moving more freely, but at reduced prices, and the Colliery has been instructed to resume full production.
MINE DEVELOPMENT. The slowing down of production permitted of a considerable concentration of labour upon development work, and advancement has been satisfactory. No fresh troubled ground of any consequence was disclosed in the bores drilled in advance of present workings.
COAL CUTTING MACHINES. No further additions were made. All machines were in service and maintenance was carefully attended to.
GENERAL CONDITIONS UNDERGROUND. These call for no especial comment. Gas is becoming more prevalent as the depth of the workings increases, but with the improved ventilation as a result of the installation of the new fan referred to in our last report, we anticipate no serious trouble from this source. Roof conditions remained very much the same as when last reporting.
SURFACE. The electric shovel was put into commission; but apart from this little new plant was installed.
A new general workshop was erected and fitted with a number of new machine tools, a foundry, and a sawbench.
The bungalow accommodation was sufficient without further additions.
The erection of new coolie lines continued and it is hoped within the next two years to have all labour housed in accommodation of approved type.
The total labour employed on the property was 702, made up of 385 natives of the Netherlands Indies and 317 Chinese. The total resident population dependent upon this Colliery is 1,362 souls.
GENERAL HEALTH. Our Visiting Medical Officer, Dr. Kotter, reported a very satisfactory state of health of the whole community. In deference to the wishes of the Health Authorities, we have engaged a Resident Medical Officer.
LAUNCHES. The M.S. "Kalai" served as an emergency launch in a perfectly satisfactory manner.
SHIPPING. The mine output was lifted by 35 ships as against 53 ships entered and cleared during the previous year.
GENERAL. The Mine was visited by a number of Government officials including: Mr. Koppenall, Resident Bandjermasin, Assistant Resident Bandjermasin, Mr. Eben-horst van Stengbergen, Assistant Resident Kota Baroe, Captain Drost, District Officer-Controleur, Mr. Van Harften, Mines Inspector, Mr. Bruinsma, Mines Inspector, Mr. Touissant, Mines Inspector, Mr. Post Uiterweer, Labour Inspector, Mr. Boudoin, Boiler Inspector, Mr. Germain, Electric Inspector, and Mr. Tollig, Inspector of Weights and Measures.
We are, Gentlemen,
Yours faithfully,
J. A. RUSSELL & CO.,
Managing Agents. Kuala Lumpur,
12th March, 1930.
MALAYAN COLLIERIES
The Straits Times, 1 April 1930, Page 19 and The Malay Mail April 2 1930 page 10. Under the Headlines: MALAYAN COLLIERIES, LTD. Chairman Reviews Year of Progress at Annual Meeting HOPE OF REDUCED PRICES AND COSTS. MALAYAN COLLIERIES MEETING. MORE DEVELOPMENTS. 35 Per Cent. Dividend Maintained. . AGRICULTURE, CEMENT AND BRICKS. . (From Our Own Correspondent) Kuala Lumpur, Mar. 30. The sixteenth annual general meeting of Malayan Collieries, Ltd., was held at midday at the offices of J. A. Russell and Co., managing agents and secretaries of the company, today, Mr. J. A. Russell, chairman of the company, presiding. (From the M.M. The chair was taken by Mr. J. A. Russell and those present were Messrs. H.N. Ferrers, W. H. Martin, F. Cunningham and H.H. Robbins (directors) and J.D. Morrison, C.A. Mathews and C. Crompton (Shareholders.) Addressing the meeting the Chairman said: The report and accounts having been in your hands for the required period may I assume that it is your wish that they be taken as read. It is my pleasure to be able to report to you another record turnover, and, while the increase in profits is not as great as was that occurring between the years of 1926 and 1927, and 1927 and 1928, in view of the reduction in our prices, I trust that you will consider even a small increase in profits as eminently satisfactory. Production at Batu Arang was just under 20 per cent, up on the previous year, while that at Pamoekan Bay was substantially the same as for 1928. The net price realised for our Rawang coal shows another reduction on the previous years; our policy is to strive further to cheapen it. We are happy, however to be able to tell you that although the tendency of our sale prices is downwards, so also is that of our production costs, and that under normal conditions the one should more or less offset the other. With reference to the Dutch company operating at Pamoekan Bay, I regret to say that, due to the enforcement of new Government rules, we have suffered from considerable labour troubles with our Chinese miners; but am happy to be able to inform you that at a recent meeting at Batavia with the head officials of the Netherlands East Indies Labour Department we were kindly given the opportunity to state the company’s case and were promised a special and sympathetic consideration of the company’s peculiar circumstances and difficulties. 0. Programme of Re-equipment. 0. It is also a matter of gratification that the N.E.I. Government, so I understand, is at least seriously considering the subject of converting Pamoekan Bay into an open port. When this is done the colliery should be much more favourably placed to conduct its mining operations and to sell its coal. 0. The accounts before you are similar in general detail to those for the previous year. During the twelve month a grant of land was bought at Batu Arang and also one at Fraser’s Hill; and these are the reason for the new item “Freehold Property” introduced into the balance sheet. Our programme of re-equipment with modern plant, and of increased general mechanization, was actively pursued during the year. 0. Buildings and general plant were added to at the cost of $771,427.05, the whole being depreciated by $179,408.36. All buildings erected during the period under review of the permanent type, calculated to last for many years. The plant installed was of a general nature; but the new power plant was by far the largest individual item of it. 0. The deprecation allowed, making $400,000 in two years, was sufficient to reduce to a nominal figure the book value of all plant which it is intended under our programme of modernisation to supersede, and this item next year should consequently be rather less. 0. Plant being Standardised 0. Mine stores and spares show an increase on the previous year of some $68,000, this being primarily due to a quantity of equipment in connection with the new plant which was taken into stores and not issued to the respective works before the end of the year. 0. In this connection, however, the additions to mechanical equipment in hand and contemplated will in future years increase this item of stores by reason of the number of spare parts that will be required. This is a matter which is having the close attention of the managing agents and all possible plant is being standardised in order to reduce as far as is practicable the number of variety of spares carried. 0. Stocks of coal on dumps at the end of the accountancy period were higher in value than at the termination of the pervious year by some $180,000, which increase was due to the congestion of coal in most Eastern markets referred to by the managing agents in their report, and to our plan of holding up at the mine the bulk of our output of Pamoekan smalls until the installation of the washery plant that has been decided upon, which machinery we hope to have in operation early in the second half of this year. 0. Today, however, I am pleased to be able to inform you that stocks of lump coal are again moving off freely, and the quantity which made up the figure of $261,598.50 as at the end of 1929 has since the close of year been greatly reduced, and should be down to normal before the middle of the current one. All stocks have been taken into account at conservative values. 0. A Satisfactory Proposition 0. Sundry debtors and bills receivable were a little down as compared with the previous year, while sundry creditors were a little up. All debts, with a few almost negligible amounts, have since been paid or are secured, and it is estimated that reserve against bad debts of $80,000 is sufficient for all foreseeable contingencies. 0. Investments at the end of the year remain unchanged. I might mention, however, that in view of rumours circulating during the last week in influential quarters of the City of London to the effect that the 5 per cent War Loan, £25,000 of which we hold, is to be converted into 4 and half per cent Taxable Conversion Loan, your directors have within the last few days deemed it advisable to dispose of your holding of 5 per cent War Loan and re invest the proceeds in the 1960-1990 4 per cent Funding Loan. This latter is free of income tax and safe from interference until 1960. 0. It will be seen that cash at banks and in hand at the end of the year was less than at the end of the previous year. Some of the difference was represented by increased stocks; but the chief reason for it was the better progress made with the programme of various new capital works. 0. There is nothing I think in the trading profit and loss account which calls for comment. 0. Such, then, is the position, and one which I trust you will consider quite satisfactory. But for our policy of recognising the interests of two parties as being essential to a real and lasting prosperity, we could have undoubtedly have made a somewhat higher profit for the year. It is, however, your Board’s policy to preserve a proper balance between the claims of shareholders and consumers; which duties do not really conflict, because only by satisfying the company’s customers can the company enjoy any permanent stability. 0. No Price Reductions. 0. Your board’s aim I might say, is ever to strive for a larger turnover with smaller individual profits; but with tin restriction the order of the day, our turnover is likely this current year temporarily to be adversely affected. We have, however, no intention of increasing prices- on the contrary we hope eventually to still further reduce them- nor do we intend, if we can reasonable prevent it, that shareholders should suffer a diminution of their regular dividends. 0. Successfully to carry on these twofold duties to proprietor and client, only one course is open, and that is to reduce costs per individual ton, which in turn means improved methods, which, in again in turn, calls for the completest mechanisation throughout. As you will realise from the amounts which your board has expended upon your account at Batu Arang during the past year, this all means money, and indeed, considerable sums of it. 0. This being so, and in view of the uncertainty, owing to tin restriction and general world wide depression, as to the precise demand which is likely to exist during the current year for the company’s products, your board has unanimously decided that it would be sounder finance upon its part not to recommend a distribution of an extraordinary bonus for 1929, similar to the one of 5 per cent which was given to shareholders for the pervious year, but to carry a larger sum forward. 0. As you will have gathered from the profits made, and also of the proportion of them spent in new equipment, the year has been one of very definite progress in efficiency. We are anxious that the progress should not be checked, and to ensure this desirable purpose we are prepared to do everything short of voluntarily cutting down the regular dividend rate of 35 per cent per annum. 0. Batu Arang Property 0. As indicated in the report which is before you, our negotiations with Government for agricultural rights over our Batu Arang property have had a happy issue in the form of a promise to grant us these rights upon certain terms, which terms we have not gone thoroughly into, as we are not yet able to go to Government and say just what we propose planting, and when. 0. Your directors have been very busy in this connection; but we are not yet in a position to make an announcement, and it will probably be quite a year before we have tried out by experimental planting the one or two products which we have in view. We believe these agricultural rights to be valuable, and it would indeed be an economic loss to the country for us not to develop those portions of the surface of the company’s large area at Batu Arang which are not at present being disturbed, nor are likely to be, by the extraction of coal from under them. 0. Several thousand acres of undulating land, a large part of which is quite good soil, with road and rail communication, healthy, and with a settled labour force and enjoying the advantages of cheap power and several other valuable facilities, must be a potential asset, and it is your Board’s policy to endeavour to convert every potential asset into a productive one. 0. Your board, however, is doing nothing in a hurry, and will carry out the fullest investigations before embarking upon any cultivation, or any other project, involving large capital sums, and will keep shareholders advised regarding them. 0. Extending Demand for Coal. 0. In addition to this problem in the economics of agriculture, your Board has been investigating ways and means of extending the demand for its Rawang coal. As an aid thereto, the establishment of coal consuming industrial plants has been, and is being, very seriously, and, in the case of cement manufacturing plant, very thoroughly, studied. With regard to this latter industrial undertaking, there are still some essential details to be settled before a decision can be arrived at for or against the enterprise; but at the moment, the prospects look encouraging. 0. Our investigations, so far as they have gone to date, have shown that, thanks to the concentration of raw material, cheap power and technical organisation which we possess at Batu Arang, and to our not needing to incur any promotion or vendor’s or other such burdening costs we are likely to be in a favourable position to establish the industry on an exceptionally sound basis and to manufacture a product of the highest standard of quality at prices competitive with those of the imported article. 0. In the meantime, as a first step to the policy of jointly developing the potentialities of the company’s existing assets and of finding an outlet for its coal, brickworks have been established at Batu Arang for the utilisation of the clays and shales derived from the company’s open cast coal workings and of employing Rawang coal for firing the bricks in a modern continuous kiln. 0. As the company itself uses so many bricks, and for long has had a small scale brickworks on its property for supplying its own requirements, this particular side project, after through investigation and consideration, was undertaken and is now nearing completion. 0. A Valuable Side Industry. 0. A specimen machine- made, coal- fired, clay brick is on the table, and you will see that it compares well with any clay brick made in any part of the world, while it is superior to anything I know of made at present in the F.M.S. Not only will it be a better article, but it will be sold at a cheaper price than sellers of clay bricks are at present asking. 0. The output of our first kiln will be from 10 to 12 million bricks per annum. We shall convert a waste product into one of value. We shall consume more coal and thus help to reduce our costs per ton. We shall improve the quality of one of the chief items of stores always used by us. We shall add a new source of company revenue. 0. Finally, and certainly not the least important consideration, we shall contribute, if, slightly, to the general prosperity and economic efficiency of the country by adding what we hope will prove to be a valuable side industry to our other activities. 0. Entry into extensive agricultural interests, and the establishment of new industries of the magnitude of cement works, would, of course, call for the investment of a considerable amount of fresh capital. This could be raised by issuing more shares, or by borrowing, or by both. I think that I might take this opportunity to mention that any issues of shares would, of necessity, be at a fairly high premium, so that the possibility of an issue should not have any material effect upon share values. 0. 35 Per cent Dividend. 0. However, even if all or any of these other projects materialise, and I hope that at least some of them may, there is still too much to be done and both world and local economic conditions are still too unsettled, to make it probable that any decision calling for a large expenditure of new capital can be arrived at much, if at all, before the close of the current year. 0. So that if a fresh issue eventually be made, there is small likelihood of any new emission during 1930, while I can also assure you that, in the event of additional capital being necessary, the Board will raise it upon payment terms as easy for shareholders as is possible, compatible with safety, and with due regard to the financial conditions prevailing. 0. With reference to the matter of splitting the shares into ones of smaller denomination which during the year was referred to by shareholders, the voting was: - For splitting, 22,145 against splitting, 98,688; total number of shares voting, 120,833. The suggestion was therefore, not proceeded with. 0. As set out in our report to you, after paying three interim dividends during the year amounting to 22 ½ cent, and after allowing for directors’ and auditors’ fees at the same rate as last year, there is a balance of $1,069,807.84 remaining to be disposed of at this meeting. Your directors recommend a final dividend of the usual 12 ½ percent, absorbing $321,881.25, which will give shareholders the now customary 35 per cent on their shares. 0. No Bonus Distribution. 0. In view of the very large sums which have been reinvested by you in your business from the time when the company first commenced to earn an income, it may interest you to know that, while the present distribution provides you with 35 per cent upon the nominal par value of your shares, it really represents 12 ½ per cent on the actual amount of capital at present being employed by you in the undertaking. 0. In other words 12 ½ per cent is the approximate rate of dividend which the company would at this stage, be paying to you on a par value of your increased number of shares if it had been the policy of your directors, as earnings were from time to time appropriated to finance the steady development of the business, to write up the amount of the company’s of capital, and to issue free shares to you to represent the additional sum reinvested. 0. Your directors further recommend that the sum of $400,000 be written off leasehold property, leaving a balance of $347,926.59 to be carried forward to the 1930 accounts. 0. This carry-forward is approximately the amount of last year’s carry- forward plus the amount which was paid last year as an extraordinary bonus. I would repeat, at the risk of unnecessary reiteration, that your Board’s decision not to recommend the distribution of an extraordinary bonus this year is prompted by the undoubtedly only temporary, straightened conditions prevailing throughout Malaya, and indeed the whole world, since I last had the pleasure of addressing you. 0. Today, not only is there a recognised over- production in rubber, but also an over production of tin; and in both industries rightly or wrongly, curtailment of output is in the minds of many. Of the two, the condition of the mining industry of the country the more actively affects us, and any restriction of working hours by it must be reflected in the demand for coal, and, to that extent, in this company’s earning capacity; hence what some shareholders may perhaps consider your Board’s over cautious recommendations. 0. Provident Fund Scheme. 0. The managing agents have reported to the Board the loyal service of the various members of the company’s staff at the collieries, and the hearty thanks of the shareholders are due to these gentlemen for their year of very hard work. You will notice in the directors’ report that it is proposed to pay members of the company’s staff actually employed at the mines the usual bonus, the amount of which token of appreciation I would ask you again to leave to the discretion of the Board. 0. I can assure you that this yearly bonus is greatly valued by the members of staff, not so much because of the amount, but because of the appreciation of their services which prompts it. I might also tell you that your Board are contemplating the institution of a provident fund for the benefit of the staff and have instructed the managing agents to prepare and submit to them a scheme for their consideration. 0. In conclusion I should like to say that with reference to the current year, I think I shall not be unduly optimistic in telling you that there is little doubt in the minds of your board as to the company’s ability again to give you a 35 per cent dividend. 0. I shall be glad to answer, if I can, any questions bearing on the report and accounts which shareholders present may care to ask. 0. A Bright Future. 0. In seconding the adoption of the report and accounts, which was moved by the chair, Mr. H. N. Ferrers said: 0. It is hardly necessary for me after the exhaustive survey of the position of the company which you have just listened to, to occupy the time of the meeting for any length. But I would like to say a word on the subject of our decision not to recommend to pay the same bonus as last year. Of course, we were careful to say then that this payment was an extraordinary one, but we recognised in spite of our warning shareholders might expect a similar distribution this year and we did not decide against giving it without careful deliberation. 0. We felt that in view of the depressing forecasts of local trade generally which have lately been made through such wide and influential channels of the prospects of the coming year, we could not take the responsibility of failing to make provision for the possibility of bad times to come. But, on the other hand we are far from accepting the opinion that things are so bad as they are made out, and we are certainly anxious not to do anything likely to make them worse. You will notice, therefore, that we have been taking such steps as are necessary to enable us to take full advantage of our opportunities when better conditions prevail. 0. The exceptional, perhaps, unique, advantages which we enjoy at Batu Arang have been carefully studied by the Board. While the raising and marketing of our coal will always remain our main concern, we recognise that the large area of agricultural land at our disposal and the provision of plant, buildings and machinery already on the spot enable us to engage in certain enterprises, to which the chairman has alluded, on a footing which no outsider can compete with. 0. You may be confidant that we have taken the precaution of obtaining expert advice and that we shall take no steps in a hurry. All our investigations, lead us to think that we have a bright future before us and we hope and believe that satisfactory as the past history of the company has been, its future will prove to be even brighter than its past. 0. The resolution was passed without discussion. 0. The report and balance sheet were unanimously adopted and the final dividend of 12 ½ per cent was unanimously approved on the motion of the chairman seconded by Mr. Martin. 0. The directors’ fees of $25,000 were approved on the motion of Mr. Morrison, seconded by Mr. Crompton and the auditors’ fees sanctioned on the proposition of Mr. Crompton, seconded by Mr. Morrison. 0. On the proposition of the chairman seconded by Mr. Martin, Mr. H. N. Ferrers was re elected to the Board and Mr. H.H. Robbins’ election was confirmed on the motion of the chairman seconded by Mr. Morrison. 0. On the proposition of Mr. Morrison, seconded by Mr. Crompton, Messrs Evatt and Co. were reappointed auditors. 0. In moving a vote of thanks to the chair, Mr. Ferrers said that the vote ought to be passed with exceptional enthusiasm. Their chairman had been connected with the company since its inception, it owed its existence to him, and it must have been a great satisfaction when he presided over a meeting of that kind and found that he had not had to put a single resolution which had not been unanimously accepted. Mr. Martin seconded the motion which was adopted. 0. The meeting then closed.
(NB No copy of this AGM is in MALAYAN COLLIERIES LIMITED REPORTS & BALANCE SHEETS AND PROCEEDINGS AT ANNUAL MEETINGS 1926- 1935. The report is bound in twice.)
Malayan Collieries, Ltd.
(Incorporated in F. M. S.)
Head Office-Hongkong and Shanghai
Bank Buildings, Kuala Lumpur
Telegraphic Address-"Arang"
Kuala Lumpur
Code—Bentley’s and Boe.
Telephone No. 64.
Directors:
J. A. Russell (Chairman)
H. N. Ferrers ` F. Cunningham
W. H. Martin A. J. Kelman
H. H. Robbins
Managing Agents & Secretaries:
J. A. Russell & Co.
Batu Arang Colliery Staff.
Telegraphic Address—“Collieries”
Batu Arang
Mine Manager W. McEwan
Mechanical
Engineer D. Tooms
Mechanical Asst. H. Gradon
Electrical Engineer C. Jones
Do. W. B. Joiner
Mine Accountant W. D. Morgan
Mine assistant B. Harold
Do. J. Pitkeathley
Do. F. C. Calvert
Do. J. S. Gay
Do. H. Morris
Do. J. Gibson
Do. R. Scott
Do. N. Beany
Do. F. Bellamy
Do. A. E. Bettany
Pamoekan Bay Colliery Staff
Mine Manager E. Barrett
Assistant F. W. Brickman
Do. J. Brailsford
Do. A. Knight
Do. A. Young
Do. T. Robson
Do. H.Burrris
Do. M. Dunlay
Do. V. Frodsham
Do. T. W. Russell