Dearie:Russell Family History

The Straits Times, 23 March 1940, Page 5 PROFIT OF MALAYAN COLLIERIES. 16 Per Cent Dividend For The Year. A SHARP rise in profit earned is shown in the accounts of Malayan Collieries which were issued yesterday for the year ended December last. After charging depreciation of about $288 000 the net profit, subject to directors' fees, was $ 620,775, compared with $551,139 in 1938. This has been added to $379,544 brought forward from 1938 making available $1,000,319. Three interim dividends of 3 per cent. each were paid and absorbed $309,006 and the directors propose a final dividend of 7 per cent. which if approved at the annual meeting in Kuala Lumpur on Friday, will require $240,338. This compares with a total of distribution of 15 per cent. paid for 1938. The directors have written-off leasehold property the sum of $105,000 and shareholders are to be asked to approve directors’ fees of $20,000 and a donation to the Malayan Patriotic Fund of $5,000. The amount to be carried forward to 1940 will be $320,975.

The Straits Times, 29 March 1940, Page 5 Labour Disputes: Action Wanted The present rate of industrial activity in Malaya is not likely to continue unchecked, but a satisfactory first half year seems to be assured, said Mr. H. H. Robbins when presiding at the annual meeting of Malayan Collieries, Ltd., at Kuala Lumpur today. Referring to labour difficulties and labour’s “transition from the unorganised state, following its abandonment of the principle of the Guild or the paternalism of the contract system, to its inevitable and desirable organisation in trade unions,” Mr. Robbins said: “In the interests of this country, and of its industries generally, it is to be hoped that a suitable procedure can be evolved from knowledge of local conditions and experience in other parts of the world, wherein a reasonable degree of understanding has been established between employer and employed. “Unless and until there is a clearer distinction between methods of subversion and of reform, and much simplified procedure and more definite action in rooting out those responsible for the former, we shall continue to have trouble. “This is not an attempt to shift responsibility; we as employers are conscious of our imperfections, but we do try to be just and helpful, and given, as early as possible, the backing of a more definite Government policy, or of a policy more suited to local conditions, all legitimately concerned would be vastly better off.”

The Straits Times, 30 March 1940, Page 4

LABOUR DISPUTES: MORE DIRECT ACTION WANTED

Further Trouble May Lie Ahead

COLLIERY CHAIRMAN WARNS INDUSTRY

Until a much simplified procedure is adopted, and more direct action is taken by the Government against those responsible for “methods of subversion”—as distinct from reform—amongst the labouring classes on Malaya, industries will continue to have trouble, said Mr. H. H. Robbins, chairman of Malayan Collieries, Ltd., at the annual meeting of the company in Kuala Lumpur yesterday.

Referring to the strike at the collieries during the year, Mr. Robbins expressed the hope that a “Suitable procedure” could be evolved to bring a reasonable degree of understanding between employer and employed. He referred to trade unions as “inevitable and desirable,” if worked up to gradually.

The company said the chairman, was expanding its plywood plant so that it would be in a position to supply all chests required by the Malayan rubber industry. With the lower prices offered by the company, the rubber industry could save $2,500,000 in two years and about $6,000,000 would be saved in foreign exchange.

The shareholders would wish the company to bear its fair share of Malaya’s direct financial contribution to the war effort, but the chairman hoped that this could be done without “increasing the already heavy burden carried by those shareholders domiciled at Home.”

The chairman said:

If we take the liabilities side of the balance sheet first, it will be seen that while capital remains unaltered at the figure of $3,433,400, the sub-division of the $10 shares into units of $1 was agreed at an extraordinary general meeting of shareholders on June 15, 1939, and duly confirmed at an extraordinary general meeting on June 30, 1939.

The actual sub-division has been effected in respect of all but a few shares which will no doubt be submitted in the course of time. As a matter of interest, I would mention that since the sub-division, the number of shareholders has increased from about 600 to approximately 700.

Sundry creditors and credit balances, including provision for contingencies, are very considerably up, due, in part, to heavy shipments of general stores, explosives and manufacturing materials and to a temporary provision for contingencies. The general reserve remains unaltered. The amortisation fund is higher by $50,000 in conformity with annual practice.

On the assets side, leasehold property shows an increase of $5,000, this being in connection with the purchase of a hill bungalow to which I shall again refer.

Buildings were added to by new construction, amounting to $98,151, and by transfers from plant and machinery and subsidiary undertakings, in the sum of $99,900. It was considered advisable to effect this transfer of buildings which were, for the most part, of the subsidiary undertakings, so that the accounts may mean just what they say.

General plant and machinery was added to the expenditure of $284,338, the principal individual item being a large electric dragline to further augment the stripping and opencast coal winning equipment. Additions were made to railway rolling stock and to the plywood plant.

Operating stores and spares and trading stocks increased in value by $65,630.50 and this, of course, is what might be expected under prevailing conditions.

Sundry debtors and debit balances less reserve is about normal for the turnover of the period.

Investments at $242,830.86 were increased during the year by a purchase of 4 per cent. Singapore Municipal Debenture Stock. Cash at bankers and in hand at $472,277 shows a normal increase of $53,922.

Bigger Profit

The trading and profit and loss account disclosed a profit of $620,775, which is an improvement of $69,635 on that of the previous year, but still $36,174 lower than the profit for 1937 which was the peak of our post slump earnings.

Working expenditure was down compared with the previous year, owing to the temporary loss of underground production and to an increased proportion of opencast coal, the stripping cost of which has been incurred in previous years.

Receipts were also down on much the same tonnage of coal sold, this being due to the incidence of low priced long term contracts, which are still current and to a substantial drop in the rail freights recovered.

This year was altogether dominated by the effects of the war, though it followed years spoilt by the threat of war. The year opened with a total domestic release of tin at 32 ½ per cent. with 28 ½ per cent. in the second quarter, which developed into an average of 75 per cent. for the second half year.

Rubber opened with a domestic release of 50 per cent. and averaged over the last half year 67.5 per cent, both figures being subject to an adjustment for previous overshipment.

Control Committees

Fortunately, the reserves of labour kept employed by Government and other employers during the slack periods of the past three years, together with the labour-saving equipment available, were sufficient to take care of the increased production of the industry.

At the moment, signs are not absent that, with the building up of stocks of tin and rubber at points of final requirement, the draw from this country will once again settle down to the replacement of actual consumption and wastage; and indications are that the trend of this year’s industrial activity here in Malaya will be the opposite to that of last year.

What we, in conducting your business, and those in charge of industry generally wish to avoid are violent fluctuations and their attendant dislocation and maladjustment, and in this we are largely in the hands of the committees which control the production of our two staple commodities.

As a result of the unavoidable heavy releases of tin during the last quarter of the year, labour became uneasy, and, although any increases in the cost of living were taken care of by a sliding wage scale, our labour force was induced to strike.

This resulted in the discarding of a system for which we had high hopes as a basis for eliminating, as far as possible, the human element in taking care of changing conditions. The system was based upon the tonnage of sales, which, as I have previously remarked, is a very fair barometer of the prosperity of the country, and incidentally of the cost of living; and it was this link with the company’s interests which was not considered by political theorists to be in the best interests of labour.

Problem Of Labour

I have referred from time to time to the problem of labour in its transition from the unorganised state, following its abandonment of the principle of the Guild or the paternalism of the contract system, to its inevitable and desirable organisation into trade unions

“In the interests of this country, and of its industries generally, it is to be hoped that a suitable procedure can be evolved from knowledge of local conditions and experience in other parts of the world, wherein a reasonable degree of understanding has been established between employer and employed.

“Here in Malaya, something following the spirit of ‘ the inevitability of gradualness’ is needed, and any attempt to force this country at one step into the adoption of principles which have elsewhere been considered right and serviceable with domiciled labour possessing full citizen rights, is, I am convinced, at this early stage wrong in the interests of master and man alike.

“Unless or until there is a clearer distinction between methods of subversion and of reform, and much simplified procedure and more definite action in rooting out those responsible for the former, we shall continue to have trouble.

“This is not an attempt to shift responsibility; we as employers are conscious of our imperfections, but we do try to be just and helpful, and given, as early as possible, the backing of a more definite Government policy, or of a policy more suited to local conditions, all legitimately concerned would be vastly better off.”

Mine Fire

Another unfortunate occurrence during the year was the loss of production from the east Mine, owing to a fire occurring at a particularly difficult point. The mine was promptly sealed off, and it is now a matter of awaiting suitable air conditions before an attempt at recovery is made.

Fortunately, no lives were at any time in danger, though the material loss, even if this is confined to damage to plant, will be considerable.

Fires represent one of the hazards with which we have constantly to cope and it is unfortunate that, in this instance, the fire gained the upper hand.

Progress with underground development was on the whole satisfactory, and this year should derive benefit from much of the work carried out.

For reasons which I have already stated, the demand upon the stripped reserves was considerable, and the value of such reserves to take care of abnormal demand was, and still is, much in evidence. The mechanical equipment at our disposal has enabled us, not only to meet the large increase in the demand for coal without competing in the market for extra labour, but to maintain a satisfactory tonnage of coal stripped and ready for extraction.

Plywood Chests.

A welcome feature of the year was the improvement in the demand for the product of the plywood section of our undertaking.

When last addressing you, I referred to the more satisfactory progress that was being made in the wearing down of conservatism on the part of users of chests. As a result of this hopeful trend, it was decided to avail ourselves of an offer of plant which promised an increase in the productive capacity of the factory of the order of 50 per cent.

When war came, the erection of this plant was almost completed, with the result that we were able to respond in a much more ready way to the demand created by the shutting off of supplies of chests from Baltic countries.

I have previously remarked that if the principle of support to local secondary industry in normal times is regarded by some as controversial, there can be no argument about the value of the production of such local industry in time of war. In conformity with this principle, we are still expanding the plywood plant, so that we might be in a position to take care of the full chest requirements of the Malayan rubber industry, if such should come our way.

As an instance of the value of the plant to the rubber industry and to the country generally, I might mention that imported chests of no greater intrinsic value than MalAply, are being sold in this marker at well over $1 each above our average selling price to estates this year, and at fully a dollar more than the average price at which we are at present offering our chests to users for delivery next year.

Such sales are helpful in assessing the value to the Malayan rubber industry of the local production of plywood. This, on the basis of a million chests sold this year would seem to be not less than $1,000,000 actually saved, while, judging by the trend of bookings for next year, the saving should be nearer $1,500,000; or $2,500,000 saving to the rubber industry in only two years.

Perhaps an even greater benefit to Malaya from the use of MalAply chests is the resultant saving in foreign exchange which, for 1940 and 1941 alone, would appear to be in the region of $6,000,000.

Big Figures

These are big figures and while they do not accrue to the benefit of industry and the State without the retention by us of a satisfactory profit on our capital outlay and to cover the risks and responsibilities assumed, we do feel that we are, to put it on a purely business basis, making a definite and practical bid for a continuation of support when more normal conditions return.

The saw-milling plant was re-housed and largely re-equipped and, after supplying the colliery requirements of sawn timber, it is fully employed manufacturing battens and planks for the plywood section.

The brickworks plant and wood distillation plant were not fully employed. The demand for brick was checked after the outbreak of war, due principally to the shortage of cement for general building purposes.

The war has set up an improved demand for MalAsote wood preservative one of the principal products of the distillation plant, but because of the difficulty in disposing of the charcoal at remunerative prices, the operation of the plant remained intermittent.

Though the existence of a cement manufacturing plant would, at the present time, be of great advantage to the country, it is doubtful whether, under present conditions, it would be wise to commit ourselves to the necessary greatly increased capital expenditure.

Meantime, however, the limestone deposits ate being check-drilled and the question will be given further consideration as soon as circumstances appear to warrant it.

Inherent Loyalty

It is with pleasure that I acknowledge for my own part and on behalf of my colleagues, the ability and keenness of the staff in general. Notwithstanding the strike during the year, I still believe in the inherent loyalty and interest of the majority of our labour force.

The provision of a staff bungalow at Fraser’s Hill has been under consideration for a number of years and with the outbreak of war, and the possible extra demand upon Government bungalows as a result of curtailed and postponed leave, an opportunity was availed of to acquire an attractive property. I sincerely trust it will prove to be an acquisition of real benefit and pleasure to all concerned.

In recommending a larger final dividend, and one in line with that paid in respect of the year 1937, your board has been influenced by the somewhat better profits last year, principally as a result of the improved returns from our subsidiary undertakings, and by the way the new financial year has begun.

That the present rate of industrial activity here is not likely to continue unchecked, seems certain, but a satisfactory first half year would appear to be assured. It would be more than usually unwise of me to attempt any forecast beyond that period.

There will be increased costs in more than one direction also difficulties under war conditions, that we shall continue to adjust and adapt ourselves to the changing circumstances and so, as far as lies within our power, to conduct the business in the best interests of all concerned.