September i, 1909.] 



THE INDIA RUBBER WORLD 



423 



The Dark African Rubber Prospect. 



DECLIITE OF THE -ABIR' COMPANY. 



IN the palmy days of rubber trading profits in tlic Congo the 

 ABIR company (Abir, Societe a responsibilite Hniitee — orig- 

 inally the Anglo-Belgian India-Riibber and Exploration Co., 

 of Brussels) was conspicuous for the size of its dividends and the 

 quotations on its shares on the Belgian bourses — to say nothing 

 of the speculation in its shares. To quote from The Indi.\ 

 Rubber World, December i, 1901 (page 84) : 



The profits of the Socictc ABIK, based chiefly on rubber, but also to 

 some extent on ivory, have been, for these recent years: 



For 1898 2,482,697 francs ^= 248 f/er cent. 



For 1899 2,768,042 francs =: 277 per cent. 



For 1900 4^873,356 francs =: 487 per cent. 



At the bc'Kinning of 1898 shares in ABIR were quoted at 14,500 francs, 

 or 29 times the nominal value; at the beginning of 1900 the quotation was 

 17,600 francs, or 35 for one; by September, 1900, the figure rose to 28,925, 

 or practically 60 for one; at the beginning of this year the rate was 25,075, 

 or 50 for one. 



The most recent quotation for ABIR shares on the Antwerp 

 bourse available at this writing was 2,187^ francs, or a little 

 more than four times the par value, and the report adds : "Last 

 payment of coupons, July 15, 1905." Not even the recent high 

 price of rubber has served to support these shares, which a year 

 ago were quoted at 3000 (for 500 francs par). 



The ABIR company have always had close relations with the 

 State. At a certain time a new arrangement was entered into 

 [see The India Rubber World, February i, 1907 — page 142], 

 under which, in lieu of the former conditions, the company 

 should be entitled to receive on the quay at Antwerp, at the 

 uniform price of 4.50 francs per kilogram [=:39.4 cents per 

 pound], any rubber which might be produced on its concession 

 in Africa. The working under tlie new arrangement appears 

 not to have been satisfactory. 



At the annual meeting on June 7. referring to the trading 

 for 1908, the report says: 



■'The rubber was of indifferent quality and the general crisis 

 in the market compelled us to sell at a loss during more than six 

 months of the year. You know that the minister for the colonies 

 notified us that the working of the sources of rubber supply on 

 the company's territory was to be discontinued on and after 

 January I. As a result of this state of affairs, the Ixiard of 

 directors was greatly troubled, and the negotiations induced the 

 minister to declare that he would collect information on the spot, 

 as he earnestly desired to arrive at a solution which would re- 

 spect the lawful rights of the stockholders. The ministerial 

 decision was made in consequence of reports, declaring that rub- 

 ber lianas (vines) were no longer to be found on the greater 

 part of the concession. In contradiction of these reports we 

 have presented other certified statements. The contract of Sep- 

 tember 12, 1906, proves the obligation of the government to take 

 charge of the working for our account. The rights vouchsafed 

 us by the said contract remain unimpaired. The information 

 received leads us to believe that the order to cease gathering 

 crops is not absolutely comprehensive, since certain gathering 

 posts were said to be still in existence, at least on March 24 

 last." 



In l.a Chroniqiie Coloniale appears this extract from the com- 

 pany's profit and loss account for 1908 : 



General expenses in .Africa and Europe francs 63,815.79 



Selling expenses and royalty on the products 264,342.37 328,158.16 



CREDIT. 



Net proceeds of s,iles 303,655.12 



Rebate on the license for 1904 10.338.31 313.993-43 



ascrilnd liy the coinpauy to their having been obliged t^; sell rub- 

 ber during part of the year at less than the price at which it 

 was delivered by the government. The company having lived up 

 to all its obligations, including the planting of the required 

 number of rubber vines, it felt entitled to some compensation 

 from the government, to obtain which formal steps have been 

 taken. 



There is not space here for a furtlu-r discussion of the com- 

 pany's accounts, but the difference lutwcen two year's results, 

 as shown by the published accounts — 



Profits in 1900 4.873,356.00 francs 



Loss in 1908 14,164.73 francs 



— cannot be attributed alone to any governmental action. Even 

 in 1904, when the trading profit had fallen to 1,201.400.89 francs. 

 the ABIR company gathered 445 tons of rubber. The report 

 for 1908 shows the collection of only 10.^ tons, "equivalent, on the 

 basis of an estimated loss of 40 per cent, by drying, to a produc- 

 tion of rulilicr anitJiinting to 62 tons." 



UNFAVOKABLE RESULTS IN THE FRENCH CONGO, 



The accounts of Cie, Fran^aise du Haut-Congo presented at the 

 last annual meeting (Paris, July 26), while showing a profit for 

 the year 1908, revealed a gradual decline in prosperity. This is 

 one of the more successful of the rubber trading companies hold- 

 ing concessions in the French Congo, It is, in fact, the only 

 company, in a list of 32 existing ten years ago, which has 

 shown a profit every year ; some of the companies liave ceased 

 to exist. The report of the Frangaise du Haut-Congo, therefore, 

 may be regarded with special interest. 



During the year 47,800 kilograms of rubber figured in their 

 accounts against 70,885 kilos in the previous year; the amount 

 of ivory, however, increased. The gross and net profits (in 

 francs) and the dividends for four years have been: 



1905, 



1906, 



1907. 



i90f<. 



Debit balance 14,164.73 



This unfavorable showing — a loss on the year's trading — is 



Gross profit 881,193.60' 1.116.075.10 949.459.40 748.698,30 



Net profit 322.593,.'0 475.289.70 304.073.60 150,444,95 



Dividend on capital 



shares 7'7f 8% y% $'^' 



[a The figure is not at hand,] 



In addition to these dividends, iH per cent, on the "beneficiary 

 shares" (common stock) was distributed in 1906 and i per cent, 

 in 1907. 



These figures are presented only as a single indication of the 

 lack of success of the concessionaire trading system in the rub- 

 ber regions of the French Congo. We may refer here to a table 

 printed in La Chroniqiie Coloniale (Brussels, July 22. 1906). in 

 which details are given in regard to the 32 companies referred 

 to already, for the years 1900 to 1904, inclusive. Their nominal 

 capital amounted to 52.750,000 francs and their share issue to 

 .35,040.062 francs. An analysis of their published reports of 

 operations gave these figures : 



Combined net losses in 1900 francs 2,583..332 



Combined net losses in 1901 4.255.077 



Combined net losses in 1902 3.645-498 



Combined net losses in 1903 1,257.760 



Combined net Plains in T'P04 1,846.490 



Combined net loss in Ave years 9.895.177 



The one company, as already .stated, which shewed a net profit 

 every year was the FranQaise Haut-Congo. Their record of gain 

 from the beginning has been (in francs) : 



1900 105,805 1003 79-7S1 1906 475-^90 



1901 1 10,698 T904 19S.763 1907 304.074 



1902 43,148 1905 .322.693 1908 150.445 



The best that can be figured from this is an average yearly 

 return on the capital of less than 4'/ per cent., which is not 



