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Half-year ended 31st December, 18.2. THE EASTERN EXTENSION AUSTRALASIA AND CHINA TELEGRAPH COMPANY (LIMITED). Directors. —Sir John Pender, G.C.M.G., M.P. (Chairman), Sir James Anderson, Francis Augustus Bevan, Esq., Charles William Earle, Esq., the Right Hon. Viscount Monck, George Garden Nicol, Esq., John Denison Pender, Esq., the Most Hon. the Marquis of Tweeddale. Secretary. —F. E. Hesse, Esq. Offices. —Winchester House, 50, Old Broad Street, London, E.C.

Report and Accounts of the Directors for the Half-year ended 31st December, 1892, to be submitted to the Thirty-ninth Ordinary General Meeting, 19th April, 1893. 1. The usual statements of account for the half-year ended 31st December, 1892, are submitted herewith. 2. The gross receipts, including Government subsidies, have amounted during the half-year to £247,766 19s. Id., against £243,658 Bs. 10d. for the corresponding period of 1891. 3. The working and other expenses, including £38,103 Is. Id. for cost of repairs to cables and expenses of ships, absorb £91,768 18s., against £74,314 9s. sd. for the corresponding period of 1891, leaving a balance of £155,998 Is. Id. From this is deducted £6,030 Bs. 3d. for income-tax, and £31,895 for interest on debentures, debenture stock, and contribution to sinking fund, leaving as the net profit for the half-year £118,072 12s. 10d., which, with £70,271 Is. 9d. brought forward from the previous half-year, shows an available balance of £188,343 14s. 7d. 4. One quarterly interim dividend of 1J per cent, has been paid for the half-year, and it is now proposed to distribute another of like amount on the 20th instant, making, with the interim dividends paid for the first half-year, a total dividend of 5 per cent. It is also proposed to pay a bonus of 4s. per share, or 2 per cent,, making a total distribution of 7 per cent, for the year 1892. The balance of £75,843 14s. 7d. has been carried to the General Eeserve Fund, which, after being credited with interest received on investments, now stands at £509,732 19s. 5. The alterations of tariff with the Australasian Colonies, to which reference was made in the last report, came into force on the Ist January last, and the result so far is encouraging. 6. Since the close of the half-year the tariffs at the stations affected by the serious depreciation in the silver currency have also been adjusted, so as to avert as far as possible the loss on exchange from which the company has so long suffered, and which during the past six months amounted to the large sum of £11,692. 7. In accordance with the provisions of the trust deed, dated the 15th May, 1879, 353 of the company's 5-per-cent. Australian Government subsidy debentures, amounting to £35,300, were drawn by lot on the 6th instant for payment at par on the Ist July next. The numbers of the drawn debentures are given at the end of this report. 8. The company's maintenance-ships have, as usual, been employed on various repairs during the half-year under review, but, owing to most of the cables being duplicated, the traffic has not been materially affected. 9. In accordance with the articles of association, Sir John Pender, G.C.M.G., M.P., and Sir James Anderson retire by rotation, and, being eligible, offer themselves for re-election. 10. The retiring auditors, Mr. Henry Dever and Messrs. Welton, Jones, and Co., also offer themselves for re-election. John Pendeb, Chairman. Winchester House, 50, Old Broad Street, London, E.C., 10th April, 1893. Revenue Account for the Half-year ended 31st December, 1892. Dr. £ s. d. i Or. £ s. d. To Genera] expenses in London (see Ab- j By Message and other receipts .. ~ 236,597 4 10 struct A).. .. .. .. 5,657 2 2 Less payment under General expenses at stations (see Ab- agreement with Great etouctß).. .. .. .. 41,297 9 1 Northern Telegraph Use of patents .. .. .. 100 0 0 Company .. .. £1,260 0 0 Electricians' retaining-fee .. .. 50 0 0 Less loss on exchange.. 11,692 19 3 Directors'remuneration .. .. 2,000 0 0 . ■ 12,942 19 3 Auditors'fees .. .. .. 100 0 0 1 Staff endowment assurance .. .. 890 17 8 223,654 5 7 Expenses in connection with Australian Australian duplicate cable subsidy .. 16,200 0 0 negotiations .. .. .. 70 8 0 [ Tasmanian cable subsidy .. .. 2,100 0 0 Repairs to cables (see Abstract C) .. 38,103 1 1 Tonqi;m cable subsidy .. .. 5,300 0 0 Maintenance-ships' Reserve Fund .. 3,500 0 0 Malacca cable subsidy .. .. 200 0 0 Income tax .. .. .. 6,030 8 3 Macao cable subsidy .. .. 250 0 0 Interest and sinking fund on account Transfer fees .. .. .. 62 13 6 of 5-per-cent. Australian subsidy debentures.. .. .. .. 25,495 0 0 Interest on 4-per-cent. mortgage debenture stock .. .. .. 6,400 0 0 Balance .. .. .. .. 118,072 12 10 £247,766 19 1 £247,766 19 1