January i, 1885.] 



THE TROPICAL AGRICULTURIST. 



549 



on the other hand its fertility has not been affected 

 by previous cultivation. The soil of coffee estates 

 that have not been badly affected by wash appears 

 admirably adapted to tea cultivation in most cases, as 

 the roots of the plant, which is a very deep feeder, are 

 able to tap stores of nourishment left untouched by coffee. 

 The suitability of the Ceylon climate, with its 

 abundant and evenly distributed rainfall, for the pro- 

 duction of leaf, need not be enlarged upon ; the 

 advantages we possess in that respect are well-known. 

 In the wet portions of the lowcountry the climate 

 is very forcing, and causes a growth which is re- 

 markable in what apparently seems a poorish soil. 

 Hence, earlier returns may be looked for in sucli 

 districts, and with this is joined the advantages of 

 cheap production. Such laud, being in all cases 

 jungle, requires of course more capital to bring it 

 into cultivation than coffee land. 



On the hills in almost every case the only land 

 available is that which has at one time or another 

 been in coffee. If recently abandoned the cost of 

 clearing such land is great : abandoned coffee of old 

 date here showing a considerable advantage. In the 

 case of cultivated coffee, however, much of the cost 

 of putting the land into tea will be covered by the 

 crop from it, whilst the cost of felling, reading and 

 draining, and in most cases the erection of lines, 

 bungalows and stores is avoided. Under such cir- 

 cumstances, the conversion of a coffee estate into a 

 tea-garden becomes an undertaking requiring a com- 

 paratively small outlay of capital, apart from the 

 original purchase. 



K250 per acre should be amply sufficient to bring 

 a tea estate into bearing, where the original purchase 

 has been that of a block of forest land. Such land 

 can now be procured for about K30 per acre and 

 upwards. Where a coffee estate bus been purchased 

 a far smaller sum will suffice : the exact amount will 

 depend on the thoroughness with which the land has 

 been originally opened, and the extent to which 

 the old product assists towards the introduction of 

 the new. 



A capital of RCO.000, or say £5,000 sterling, should 

 be sufficient to bring into full bearing, with all the 

 necessary machinery and buildings, a tea garden of 

 200 acres, allowing also for the purchase of a reserve 

 of timber. A garden of this size, if care has been 

 taken in selecting the seed, and if the soil is fairly 

 good, should give a continuous yield of 400 lb. per 

 acre, costing from 30 to 35 cents per lb. (according 

 to circumstances) to put in Colombo, and netting at 

 present prices 60 cents. 



Low prices are, at the present moment, the burthen 

 of most reports regarding Indian Tea Companies. 

 The margin between cost of production and sale price 

 is, just now, at the very lowest point compatible 

 with the realization of a fair dividend ; many con- 

 cerns, in fact, yield no dividend at all under the 

 present circumstances. Allowing, therefore, for a 

 further fail in prices of 10 cents per lb., one which 

 would have a serious effect uprn many of our Indian 

 friends, we ;- till have a margin of profit of 15 cents 

 per lb. or R60 per acre. This on a 200 acre elate, 

 costing [160.1100 to bring to a bearing age, shows in- 

 terest a the rate of 20 pei cent on the invested capital, 

 in the cases where ceff e estates are purchased f>r 

 conversion into tea gardens each investment must be 

 considered on its own merits. As a rule such invest- 

 ments offer great inducements to capitalists, for the 

 returns from coffee and cinchona will usually go a 

 long away towards meetiug the cost of planting with 

 tea, whilst the prices at present ruling tor such laud 

 are very low. 



In the foregoing letter I have not thought 

 it necessary to support the statements made by 

 any proof, nor has space allowed any entry into 



details : abundance of such are at the command of 

 any one who is desirous of enquiring closely into 

 the subject. My object has been to shew briefly the 

 inducements which Ceylon now offers for the invest- 

 ment of capital in the tea enterprize, and to illustrate 

 the fact that the present moment affords opportunites 

 which may not for long be so readily offered. 



T. C. OWEN. 



CALCUTTA TEA SYNDICATE. 



Calcutta, 1st Dec. 1884. 



Dk.u; Sins, — The last circular issued by the Committee 

 was elated the 3lst July 188-1, and since then there has 

 not been anything of importance to communicate until 

 now, when more satisfactory advices have been received 

 which the Committee wish to place before you in the 

 hope of encouraging further shipments to the new markets 

 which have been opened out by the Syndicate. 



Australia.— Messrs. James Hentv & Co., in their letter 

 of 22nd October, advise the sale of two breaks of tea shipped 

 by the Syndicate per steamer "Bucephalus," at a piice 

 equal to about 3d per lb. over the London valuations put upon 

 the teas here at time of shipment, and they say that at 

 the same auction some 61 10 packages sold exceedingly well 

 and left a handsome profit to the importers. The biddings 

 were brisk, and the prices obtained were Is 9§d per lb in 

 bond for medium orange pekoe, Is 3d to Is 8d fur pekoes, 

 and Is 2d to Is 4Jd for pekoe souchongs. 



They strongly recommend further and full shipments 

 of Indian teas, and they say that small quantities packed 

 111 whole-chests would meet with a ready sale ; but as the 

 market for these large packages has proved so precarious 

 the Committee think it would be prudent to confine ship- 

 ments to half chests of 38 to 40 lb. nett. 



It is satisfactory to find that the exports to Australia and 

 New Zealand during the past two months have amounted 

 to 400,000 lb., and that the total shipments to these markets 

 compare favourably with those of last season. 



America.— Messrs. John C.Phillips & Co., the New York 

 Agents of the Syndicate, write, under the date of 12tli 

 August, that Indian teas are certainly better known and 

 more generally used each season, and from what they can 

 learn they think the number of mixers is steadily incresing. 

 In a subsequent letter these friends say that Indian teas are 

 well enough known now to lead to a rapid increase in 

 their consumption if supplies from Chioa were seriously 

 interrupted in consequence of the hostilities between that 

 country and France. 



As regards the future demand, they write on the 14th 

 October that they think their market is preparedto take 

 an increasing supply at steady prices; but without regular 

 shipments somewhat in excess of the demand, the enquiry 

 for Indian teas will not extend but will die out again 

 gradually. 



In this view of the matter, it is disappointing to find 

 that the exports to New York have fallen off considerably 

 as compared with those of last year, but it is hoped that 

 the trade will not be allowed to languish for want of further 

 support. 



Northern Europe.— The Committee are happy to be 

 able to say that a very fair quantity of the present season's 

 tea has been received for shipment to Amsterdam. Judg- 

 ing from sales already advised, it seems probable that fully 

 London prices will be realized for all suitable qualities 

 provided the demand for Iudian tea in Holland is pro- 

 gressing in proportion to the increased despatches from 

 this side. 



The shipments of the Syndicate since the 1st May hive 

 beeu: — 



To Melbourne. To New York. To Amsterdam 



23,890 lb. 25,644, lb. 30,395 lb. 



And the total exports from the same date to the 30th 

 November from all sources have- been : — 

 To Australia and New Zealand. To America. To Amsterdam 

 569,453 lb. 30,738 lb. 32,255 lb. 



Against last year — 



206,536 lb. 101.831 lb. 1,800 lb. 



— Yours faithfully, A. G. Watson, Honorary Secretary. 



