August 1, 1912.] 



THE INDIA RUBBER WORLD 



547 



THE MALAYAN EXPORT TAX ON RUBBER. 



'T'HE recent London agitation in opposition to the Malayan 

 *■ export tax of 2J^ per cent on rubber, has been followed with 

 interest, both in England and in the Federated Malay States. 



Mr. Arthur Lampard, at the annual meeting of the London 

 Asiatic Rubber and Produce Co., remarked : "I and a good many 

 others associated with me have a strong belief in Free Trade, 

 and the thing that really we dislike very much is the export tax. 

 There is no export tax at all enforced in Ceylon or Southern 

 India, nor, of course, is there in Sumatra or Java, and while we 

 are told that this is necessary for the conduct of the business of 

 the Federated Malay States, we fail to see how it is possible that 

 that should be the case when they have a surplus of something 

 like five millions sterling. The money is being raised out of 

 Perak, Selangor and Negri Sembilan. It is not being spent there. 

 It is being raised largely out of the rubber industry. . . . We 

 believe that any unnecessary cost which is put on to the rubber 

 industry in the Federated Malay States which makes working 

 there less favorable than it is, say, in Ceylon and Southern India, 

 should be brought before the notice of the public. It is our duty, 

 as representing your interests, to make these facts public, because 

 that is the only possible way in which we can get them rectified." 



In replying to these criticisms and other similar utterances, 

 Sir Ernest Birch, in a letter to the "Financial News," said : "I 

 will take the ad valorem duty on rubber first. I do not know at 

 exactly what sum it works out, but, with rubber at 5 shillings per 

 pound, I take it that it is in the neighborhood of lYzd. per pound. 

 . . . Can anybody who is able to look at both sides of a question 

 say that it is overtaxing an industry which pays over 100 per 

 cent, to take 2^ per cent, for the purposes of general adminis- 

 tration?" . . . 



Dealing with the general question of the finances of Federated 

 Malay States, Sir Ernest adds: "Has not the government of the 

 Malay States established a reputation for strength of purpose 

 with most successful results? ... Is the administration to shape 

 itself to suit the rubber industry only, or is it to look forward to 

 the fuller development of the States, to important railway ex- 

 pansion, and to the building up of a huge and varied trade?" 



While Brazilian planters have to pay an export duty of 22 per 

 cent., there seems in comparison but little ground for complaint 

 on the part of the planters of the Federated Malay States. If 

 even contributing to the surplus of $25,000,000, it is to be assumed 

 that rubber planters will profit in the future by the railway ex- 

 tension and other improvements to which it will be devoted. 



MALAYAN ESTIMATES BEING MADE GOOD. 



By the most recent statistics the estimates of increased 

 Malayan rubber production are being made good. In round num- 

 bers exports of the first six months of 1910, 1911 and 1912 were, 

 respectively, 5%, SVa and ISVa millions of pounds, the estimate 

 ■of 36 million for 1912 being thus in a fair way of being realized. 



According to the information cabled by the Federated Malay 

 States government to the Malay States Information Agency, 

 the export of plantation rubber from the Federated Malay States 

 for the month of June amounted to 2,305,915 pounds, which 

 makes the total for the six months of the present year 15,382,265 

 pounds as against 8,349,397 pounds for the corresponding period 

 of last year. 



Yield, 1911. 

 I;stablished. (Pounds.) 



1895 Linggi Plantations 1,097,719 



1909 Straits Rubber Company 985,279 



1905 \nglo Malay Rubber Company 780,972 



1906 Highlands & Lowlands Rubber Company 633,000 



1899 Selangor Rubber Company 501.638 



Total, pounds 3,998,608 



Average for five companies 



Appended are the comparative statistics for the corresponding 

 periods in 1910 and 1911: 



1910. 1911. 1912. 



January Pounds 768,743 



February 728,458 



March 899,383 



April 1,123,097 



May 877,435 



June 879,675 



1.329,170 

 1,490,849 

 1,916,219 

 1,235,917 

 1,147,488 

 1,229,754 



2,730,576 

 2,715,767 

 3,089,583 

 2,285,390 

 2,255,034 

 2,305,915 



Totals 5,276,791 



8,349,397 15,382,265 



MALAYAS PROMISE AND PERFORMANCE. 



Commenting upon the fact that various leading rubber compa- 

 nies in the Federated Malay States (wdiose financial year ends in 

 March), have not only materially exceeded their output of 1910-11 

 in that of 1911-12 but have likewise exceeded the estimates of 

 increased production, the "Investors Chronicle" of London 

 writes : "This is a magnificent record. Nature does the work 

 expected of her, with almost mathematical precision. And it 

 must be said in justice that the planters and managers equally do 

 theirs. ... So far as estiinate and results go. the above recoi'd 

 shows there is no agricultural product which can compare with 

 the Hcica in the almost mathematical accuracy with which its 

 outputs can be gauged by competent authorities, and its remark- 

 able ability, so far as the F. M. S. is concerned, to rise superior 

 to cliinatic conditions." 



MALAYAN COSTS AND YIELDS. 



IN connection with the statement which has been made that 

 *■ synthetic rubber could be produced at 60 cents per pound 

 (and possibly at 24 cents or less), it is of interest' to note from 

 the subjoined table that the average cost in 1911 of the five 

 largest jMalayan companies, which together furnished more than 

 one-sixth of the Malayan output, represented 38.76 cents and the 

 average selling price about $1.22 per pound. Plantation rubber 

 has thus a large reserve of competing power. 



.A.nother point to be considered in connection Avith the present 

 phase of the synthetic question is the progressive increase in the 

 estimated Malayan output (as shown by subjoined table) from 

 23,400,000 pounds for 1911 to 130,000,000 for 1916. Comparing 

 the estimates of the Dutch Consul General at Singapore with 

 those of the United States vice-consul at the same point, the fig- 

 ures, though more or less differing for the years 1912 to 1915, 

 are practically the same for 1916 : 



Is. 7.12d. 



38.76c. 



5s. 0.16d. 



$1.21.95 



124 per cent. 



