JulV 1, 1921 



THE INDIA RUBBER WORLD 



and other crimes. A starving Chinaman is a dangerous citizen." 

 THE VALUE OF ESTATES 

 In discussing this subject, the report divides the estates into 

 three classes : 



1. These are the estates which have been opened and planted in 

 the best way. They are clean, healthy, and funiishcd with per- 

 manent buildings, up-to-date factories, and will be able to carry 

 on for years without any heavy expenditure for new buildings 

 and capital outlay. In this group are classed all the best London 

 estates, like Harrisons S: Crosrteld, Guthrie, Boustead, etc. or the 

 Holland-American plantations in Sumatra. For various reasons 

 the original cost of such estates varied enormously, but it may 

 be taken as a good safe figure that to open, plant, and provide 

 all permanent buildings, etc., and to bring a first-class estate 

 into full bearing costs about £50 per acre. In 1919 such an estate 

 was valued by the market value of the shares at about £150 per 

 acre, that is, a one-pound share was quoted on the London Stock 

 Exchange at three pounds. At the present time its market value 

 is about £1 \2s. 6d., or £80 per acre. 



2. There are a great many estates in the East which have all 

 the properties of a rubber estate without being nearly first class. 

 They have been badly planted, overtapped. and in most cases 

 have poor buildings and factories. Most Chinese estates come in 

 this group, and, from what could be learned locally, it would be 

 possible to purchase an estate of this description at the present 

 time for between £40 and £50 per acre. It is in this group that 

 the biggest wastage will take place for the reason that many have 

 no funds and cannot operate at present prices. 



3. The native-owned estates which consist of simply so many 

 rubber trees and the most primitive means of tapping and curing 

 the rubber. These are worth practically nothing at the present 

 time. 



"On my visit to Kuala Lumpur," says the investigator, "I had 

 a conversation with a director of a large company which pos- 

 sesses 5,495 acres under rubber, and is a first-class, well-managed 

 property in every respect. He informed me that his company had 

 just completed the purchase of 1.000 acres adjoining their estates, 

 for £36 per acre. This rubber was well-planted and in good con- 

 dition but not yet in bearing and the owners were unable to 

 finance it until maturity. An ofl'er of £36, cash down, closed 

 the deal. I have no doubt that if any one was prepared to bid 

 a reasonable price for many estates the owners would be only 

 too glad to sell, but the figures I have given are the present values 

 according to the rnarket value of the shares." 



STOCKS OF RUBBER 



This is a subject on which it is exceedingly difficult to obtain re- 

 liable figures. In Kuala Lumpur, Ipoh, and Penang there are 

 many estates which have large stocks on hand, but one can get 

 nothing definite. One thing is certain, estates that did not sell 

 rubber forward for 1921 and are able to hold on to it, are cer- 

 tainly doing so. Similarly, the Chinese are holding big stocks 

 here, bought months ago, and are simply sitting on it indefinitely 

 until they can sell at a profit. Although there is no means of 

 proving it, the report's estimate of between 60,000 tons and 100,- 

 000 tons for the Middle East cannot be very far out. No one can 

 do more than guess at the figure, but there is certainly a great 

 deal of rubber in stock. 



IN GENERAL 



"While the big men in the planting industry," concludes the 

 report, "fully realize the nature of the present crisis, they are by 

 no means panic-stricken. A very great majority of the large es- 

 tates are well-provided with funds and can last for a long time. 

 It would be in their interests if the slump resulted in the disap- 

 pearance of many of the smaller and poorer estates. Where 

 convenient and possible, it might pay the big estates to buy up 

 the smaller ones. They take the view that this is not the first 

 slump in the history of the industry, nor is it confined to rubber 



alone, and that things will right themselves in time. Restriction 

 of tapping is by no means an evil. It enables the estate to rest its 

 trees and improves them in every way for bigger yields in the 

 future. The results of alteniate-day tapping are uncertain, but 

 it has been proved that if one can obtain 75 per cent of rubber 

 liy alternate-day tapping, as compared with daily tapping, the 

 cost of production is the same. The lower the selling price of 

 rubber, the more profitable is the alternate-day tapping system, 

 owing to saving in labor. Results so far show that alternate-day 

 tapping will yield at least 60 per cent of daily tapping, and the 

 probability is that this percentage will greatly increase as time 

 goes on. Furthermore, many estates were overtapped during the 

 boom. To rest them now will do them all the good in the world. 



"I have also tried to find out how long it would take for an 

 estate which ceased operations entirely and was allowed to grow 

 up to weeds, to reach a state when it would be of no value. Even 

 after a year's neglect it could be brought back to bearing with a 

 good deal of expense. After two years' neglect it w^ould be so 

 overgrown as to be practically valueless. In any case, it would 

 cost very little to keep an estate clean, even if no tapping 

 took place, and some estates are adopting this policy where the 

 company has surplus cash. It is always expensive tapping new 

 areas for the first time, and it is cheaper and better in every way 

 to leave the trees as long as possible before tapping them. 



"The general position in Malaya is bad, but by no means hope- 

 less. Although for the moment very few estates are producing 

 rubber under the present selling prices, the result of drastic econ- 

 omy will tend to bring down costs very considerably and will 

 give the estates a very necessary lesson in economy. Native and 

 Chinese estates will suffer badly and unless matters improve, 

 many will probably pass out of existence and become overgrown 

 with weeds. Apart from any compulsory restriction scheme, 

 there will be a big reduction in output this year, and I believe 

 even- mcnth will see a still further reduction in output generally. 

 It will depend on how soon and how much the market recovers 

 to a profitable level whether a big acreage in the Federated Malay 

 States will be lost for the future." 



COMPRESSED CARBON BLACK 



Carbon or gas black as first obtained at the factory is very 

 bulky and only about three to four pounds are contained in the 

 standard bag measuring 22 by 12 by 8 inches. By agitation and 

 proper methods of packing, however, much of the contained air 

 is expelled so that the standard package will contain 12^^ pounds, 

 net. 



Carbon black, being light and fluffy, if used on ordinary rubber 

 mills in an open room, is apt to be thrown up into the air as 

 the rolls revolve, rendering the operating conditions insufferable. 

 In consequence, black mixing is often conducted in a separate 

 room on hooded mills provided with a slight suction draft so that 

 the dust will be more or less under control. In this way the 

 ordinary uncompressed black may be tolerated. 



The desire to improve the conditions of handling carbon black 

 in the mixing room has led manufacturers to consolidate it in 

 compact packages. This is a slow process since the required pres- 

 sure must be applied gradually, permitting the air to seep out 

 of the bag where it is tied. In addition, the pressure at the final 

 stage must be left on the black some time, as otherwise expansion 

 would take place on removal of the pressure. Pressed black, as 

 ordinarily put out at the present time, is in standard bags meas- 

 uring 22 by 12 by 4 inches, or these are again compressed to 

 measure 22 by 6 by 6 inches. This final compression shows a 

 reduction in volume of more than half the original package. 



Many rubber manufacturers find that this compressed black, 

 while more acceptable to the workmen, is more difficult to mix 

 than in the loose condition. Tliis fact, togctlier with the increased 

 price entailed, tends to confirm continuance of the general prac- 

 tice of segregating the mixing of black stocks in a room apart 

 from other rubber work. 



