July i, 1904.] 



THE INDIA RUBBER WORLD 



345 



MAKING GUTTA-PERCHA FROM LEAVES. 



AT the annual meeting of the shareholders of the Neder- 

 landsche Gutta-Percha Maatschappij (Dutch Gutta- 

 percha Co.), held at The Hague, on May 7, the report of the 

 board of directors for the calendar year 1903 was presented, 

 from which the details which follow are derived. 



Many improvements had been made during the year in the 

 factory of the company at Singapore, for the extraction of Gutta- 

 percha from leaves, by the Ledeboer process. The working ca- 

 pacity had been almost doubled, now being eqjal to handling 

 more than ioopikuls[i pikul = i33>^ pounds] of leaves in 12 

 hours. The capacity is to be still further increased by the ad- 

 dition of the machinery acquired from the Dutch India Gutta- 

 percha Co., in liquidation, and formerly used by them on Boe- 

 roe island. During the year the Singapore factory was idle 59 

 days. 



During the early part of the year there was difficulty in ob- 

 taining leaves, due to prohibitory taxes and other restrictions 

 on collecting leaves in Malacca and Sarawak, whence large 

 quantities had been received previously. Representatives of 

 the company went through Dutch Borneo and Sumatra, mak- 

 ing contracts for leaves with the native chiefs and other land- 

 owners, and also with the sultan of the Riou-Lingga archipel- 

 ago. Rules and regulations for the collection of leaves have 

 been established and premiums offered for the planting of 

 Gutta-percha species. Reports have been received that planta- 

 tions have already been started. The results from the new ar- 

 rangements for securing leaves were visible only during the 

 latter half of 1903. 



The Guttapercha product has been improved, the yield 

 varying from 1.05 per cent, to 3.5 per cent, by weight, accord- 

 ing to the source of the leaves. The Gutta-percha produced 

 during the year was worth 215.000 florins [=$86,430]. The 

 company's machinery for cleaning raw Guttapercha was little 

 used during the year, owing to the depreciation in the Gutta- 

 percha market, but it is intended to resume this branch of the 

 company's work. 



The company own two small steamers, for the transporting 

 of leaves — one in service in the Riou Lingga archipelago and 

 the other in the Barito river district, in Borneo. In the other 

 districts service is by means of chartered steamers. 



The company have continued the planting of Gutta-percha 

 in the regency of Preanger, in Java. In December about 60,- 

 000 young shoots were planted. Mention is made of an intended 

 planting of about 88 acres this year, and the purchase of con- 

 siderable additional land. The plantations are reported in 

 good condition, though better results have been obtained from 

 seedlings than shoots or stumps. There are now planted about 

 245 acres. 



The fiscal report showed a profit for 1903 of 38.746 florins 

 [=$15,576]. But there was a deficit at the beginning of the 

 year of 107.779 florins [=$43,327]. which is thus reduced to 

 69 033 florins [ = $27,75 '] and il is hoped that the deficit will be 

 wiped out during the present year. Reports from Singapore 

 indicated a profit of about 90,000 florins since January 1. 



The directors were authorized to issue the treasury stock 

 when this should appear desirable, though it was stated that no 

 present necessity exists. [For a former report, see The India 

 Rubber World, July 1, 1903— page 337.] 



PRODUCTION COST OF INSULATING TAPE. 



TO the Editor of The India Rubber World : Referring 

 to the article in your May number on the cost of the 

 manufacture in insulating tape, I beg to take issue with it and 

 add a little to it. 



Your correspondent says that the cheapest tape costs § .0886 

 when made with a compound costing 5 cents per pound and 

 using 4 pounds compound to 1 pound of cotton. No 5 cent 

 calender compound has ever been made that will show better 

 than 3 pounds to 1 for the average day's run, making the cost 

 $ .0983. I do not consider " spreader " tape at all, as uncured 

 naphtha containing goods will not stand outside exposure and it 

 is a mistake for such material to be offered as insulating tape 

 except for inside use. 



To the cost (crude material) of $ .0983 should be added 3^ 

 per cent, for wasted cloth and compound and the waste which 

 occurs in cutting up tape, making the net cost of the cut ma- 

 terial $ .1017 per pound. 



Your expert has allowed too little for " interest." He should 

 add a 6 per cent, dividend on the $75,000 capital that would 

 always be involved in an annual production of 500,000 pounds 

 of tape. That is as much of a " cost " as the "labor," and a 

 profit above that of not less than 10 per cent, should be ob- 

 tained for " contingencies," as any tape manufacturer doing 

 $100,000 business per annum will at all times carry a contin- 

 gent liability of from $10,000 to $20,000 in the notes of his cus- 

 tomers and the 10 per cent, "contingent" profit is none too 

 much for insurance, as shown by the failures of electrical sup- 

 ply dealers during the past five months. 



Your contributor has allowed $1143 for power. The goods 

 produced could not have been made on day runs with less 

 than 150 HP., and $6000 would be nearer right. No item of 

 " repairs and depreciation " appears in this cost and the item 

 should be not less than $2500. 



These items, added to those your correspondent mentions, 

 biing up the cost per pound to $ .236 in any coal burning fac- 

 tory in America, with experimental work and returned goods 

 still to be accounted for. This is with cotton cloth at the price 

 your correspondent figured it. 



It is a sad fact that several rubber manufacturers are selling 

 electrical tape to-day at prices as low as 18 cents per pound. 

 Some of them sell bias tape as cheaply as the straight and the 

 former costs 3 cents per pound more than the latter. Some 

 are selling white tape as cheaply as the black, when the white 

 costs 5 cents more to make. Some sell tape in oiled paper at 

 the same price they get for it when wrapped in heavy tinfoil 

 and pasteboard boxes, whereby they lose just about i}£ cents 

 per pound. 



Competition may be the " life of trade," but when competi- 

 tion results in prices from 10 to 20 per cent, below cost, it sim- 

 ply shows that the rubber trade has its share of men who do 

 business on their first impressions instead of actual conditions, 

 and let successful departments of their business bear the 

 utterly useless losses of an unsuccessful department. Yours 

 very truly, c. E. farrington. 



Boston, June 20, 1904. 



Massachusetts Chemical Co. 



The value of exports ol rubber from Madagascar, according 

 to an official report, increased from 545.630 francs [=$105,307] 

 in 1902 to 2,594,110 francs [=$500,663] in 1903. No explana- 

 tion of the increase is given. 



The India Rubber World has received, through the court- 

 esy of Messrs. Witt & Co., of Manaos. Brazil, a series of hand- 

 some picture post cards, based upon recent photographic views 

 of the city of Mandos and of rubber trading stations and 

 seringuals on the upper tributaries of the Amazon, the whole 

 presenting a better idea of some features of the rubber business 

 than any pictures that have come to hand hitherto. 



