JuNftt, 1887, J 



THE TROPICAL AGRICULTURIST. 



799 



PLANTING IN JOHOBE. 



[This prospectus and Company proved abortive after 

 publication. — Ed.] 



The Johoee Company, Limited. 



CAPITAL.— Ordinary Shares (of £10 each), 



£600,000. Total Capital £850,096. 



PROSPECTUS. 



This Company has been formed for the purpose of 

 acquiring the valuable Concessions obtained in Novem- 

 ber, 1884, and May 1886, from the Sultan of Johore, 

 by W. McGregor Smith and Dalton Sayle, in the 

 name of Mr. AVilliam Keswick, of Hong Kong, and 

 of No. 3, Lombard Street, in the City of London, 

 Merchant, as their Trustee. 



These Concessions comprise (with the special 

 privileges hereinafter more particularly described) the 

 right to tclect 100,000 acres of laiul (an area of 

 upwards of 156 square miles) in the territory of 

 Johore and Moar, in the Malay Peninsula, which is 

 distant only about 90 miles from Singapore. The 

 concessions are held direct from the Government of 

 Johore, which has recently entered into an offensive 

 and defensive treaty with the British Government. 

 Of these 100,000 acres, upwards of 80,000, believed 

 to be the choicest and most valuable land in the 

 territory, have already been selected, the survey being 

 now in progress as regards the remainder. A skilled 

 planter accompanies the surveyor, with instructions 

 to reject any land not of the richest character. 



The tenure is for a term of 999 years, and the 

 property is not burdened with any fixed payment 

 the rent being 2^ per cent, of the gross products 

 on the spot. 



Opium is a Government monopoly, but its cultivation 

 by the Company is not contemplated. With the 

 exception of Opium, Pepper, Gambler, and one or 

 two other items of an unimportant character, Export 

 or other Duties cannot, under the terms of the con- 

 cessions, be imposed upon any of the products cultivated 

 upon the property. As such duties, which will probably 

 vary with the requirements and expenses of the 

 Government, are chargeable to other Planters in the 

 territory, it is at once apparent that the value of the 

 concessions is enormously enhanced. 



The climate of the southern portion of the Malay 

 Peninsula, situated within three degrees of the 

 Equator, and practically surrounded by the sea, is both 

 humid and equable the mean variation of the temper- 

 ature of Singapore and Johore being from 70 ° to 90 ° 

 (Fahrenheit). The rainfall averages 100 inches, which 

 renders land in this territory peculiarly adapted for 

 the growth of tropical products, one special advantage 

 being that they are capable of cultivation a?? tA«7/ear 

 rovnd without intermission. There are no regular 

 wet or dry seas-ons, as in most other tropical countries, 

 but the rainfall continues at short intervals throughout 

 the year. For example, it may be mentioned that 

 two distinct crops of Tobacco, the same as the well 

 known Sumatra Tobacco grown by the various Deli 

 Companies can be produced in one year, Johore is 

 only divided from Sumatra by the Straits of Malacca. 

 The lands af^quired by the Company are of virgin 

 Boil, and contain forests of primeval timber, including 

 Teak, Ironwcod, India Rubber, and various other 

 tropical and valuable woods. Many ard various speci- 

 mens of this timber were shown at the Forestry 

 Exhibition in Edinburgh, in 1884, and a large number 

 were awarded prizes. 



The lands are remarkable for the numerous Fibrous 

 Plants, such as "lihea." "Mhooiva,'' &c., which are 

 indigenous to the soil; "Rhea" and " Mhoorva ' 

 are used as substitutes for Cotton, Flax and Wool, 

 the former being also employed for mixing with Silk. 

 These fibres will, on account of their low cost, 

 gradually but surely revolutionise the manufacture of 

 many descriptions of staple goods, and a reference to 

 the annexed report of Mr. W. E. Death shows the pro- 

 fits which the growth and preparation of these fibres 

 fX9 calculated to produce. 



The long standing difficulty in connection with the 

 separation of the fibre from Rhea stems which has 

 for so mauy years occupied the attention of the 

 Government of India has recently been overcome, and 

 Machines have been invented which are able to reduce 

 these fibres to a marketable condition. 



The lands are also specially suitable for the growth 

 of Tobacco, Pepper, and other products, and it is 

 proposed to expend the Capital of the Company now 

 asked for in the cultivation of about 17,000 acres in 

 the following proportions: — 



Tobacco. Pepper. Fibres. 



10,000 Acres, 2,000 Acres, 5,000 Acres 



* Estimated 1 

 Working V £275,000 £64,000 £145,000 



Capital. J 

 Estimated! /-3rd Year £90,000 \ 



Aunual I £260,000 J 4th „ £90,000 f £205,000 



Profit. J "1 5th & subse- ( 



tquent years £140,000} 

 Estimated Ultimate Annual profit on Expenditure of 



£500,000 £605,000. 



* It must be borne in mind that a considerable 

 portion of Capital expenditure is returned with each 

 crop, aud is available with the reserve fund for the 

 planting of further land. 



Such an Estimate of profit as the foregoing may 

 at first glance, be sceptically ref;arded, but in evidence 

 of the immense profits wl.ich are being derived 

 through the employment of capital in undertakings 

 precisely similar in character to that of this Company, 

 the following particulars cf dividends paid by the 

 Deli Companies of Sumatra, may be quoted :— 



DIVIDENDS PAID BY. 



In 



1882 

 1883 



18E1 

 1885 



O'he Deli 

 Maatschappy. 



65 per cent. 

 101 " ,. 



77 „ 

 107 



The Returns for 1886 are not yet available. 



The Singapore and Straits Directory, which contains a 

 record of Estates and Lands held in the Straits Settle- 

 ments, Sumatra, &c., shows that the lands leased by 

 the three above-named Deli Companies, collectively 

 embrace under 77,000 acres (of which it is understood 

 that only a small portion is at present under actual 

 cultivation). The total paid-up Capital of these three 

 Companies amounts to upwards of £400,OC J. Not only 

 have the Deli Companies paid these dividends, but 

 they have in addition set aside 15 per cent of thjir 

 profits towards a sinking fund for redemption of 

 capital. The Deli Companies' Leases have moreover 

 only been granted for a period of 75 years as against 

 999 years, the term for which the Johore Company's 

 Estates are held. The present price of the Deli 

 Maatschappy 100 guilders shares is 680. 



A considerable portion of the Estate will, when 

 cleared for cultivation, be let to tenants, who are 

 readily obtainable from the Malay and Chinese popul- 

 ation. The rental for which it is estimated will aver- 

 age £4 lOs. per acre per annum. 



The work of clearing and cultivating the land must 

 necessarily occupy some time, but with special regard 

 to tobacco, a crop can be rai.sed and realised during 

 the current year, and assuming that at least 5,000 

 acres — a moderate estimate— can be brought under 

 cultivation within the first 15 months, and that in 

 each following year a further 5,000 acres can be made 

 productive at least £100.000 net profit should be rea- 

 lised during the year 1888, and in subsequent years 

 this profit should be proportionately increased. The 

 following condensed summary shows the profits which, 

 under such circumstances, would accrue to the holders 

 of the Ordinary Shares, a sum of £16,000 being allowed 

 in the calculation for each year for Establishment 

 expenses. 



Minimum Estimated Net Profit during 1888, say 

 £100,000. 



6 per cent. Interest on Debenture Bonde, 



;C250,000, frill abswb .„ ..* £15,000 



