June 1, 1920.] 



THE INDIA RUBBER WORLD 



559 



Pebit. 

 FIBST TEAB. 



Land purchase 2,500 acres @ $2, 1st payment 257o $1,2S0 



Clearing, plowing, planting 1,000 acres land, which is 90% 



cogan @ S25 25,000 



Fencing 1,000 acres ^ $3 3,000 



Tools, cattle, etc., using native methods 10,0OU 



Superintendence and administration: 



General .superintendent $8,000 



Four white foremen @ $1,800 7,200 



Cashier ind bookkeeper 2,400 



Office assistants (native), stationery, furniture, 



etc 5.000 



22,600 



Miscellaneous, such as surveys, roads, wharves, launch. 



water supply, drainage, doctor, medicine, etc 20,000 



Superintendents bungalow and furniture 2.000 



White men's quarters 1.500 



Laborers' ijuarters first year 1,500 



Office and store — two-story 2,000 



Store with stock 3,000 



Tools and cattle sheds 1,500 



Hospital and equipment 5,000 



Interest on $100,000 @ 6% 6,000 



Total expenditures $104,350 



Profits from store first vear 



lO.OOO 



Cost of first year's development $94,350 



SECOND YEAE. 



Second payment on land purchase $1,250 



Clearing, plowing, planting 1,500 acres @ $25 37,500 



Fencing 1.500 acres (d $3 4.500 



Maintenance of 1,000 acres, second year @ $4 4,000 



Tools, cattle, etc., using native methods 10.000 



Superintendents and administration 25,000 



Miscellaneous 15.000 



Interest at 6% on $200,000 12,000 



Total expenditure $109,250 



Store profit for second year - 



15,000 



Cost of second year's development $97,250 



THIKD YEAR. 



Third payment on land purchase $1,250 



Tools, cattle, etc 5.000 



Maintenance of 2.500 acres (S, i4 lO.OOO 



Superintendence and administration 25.000 



Miscellaneous 10.000 



Interest on $250,000 @ 6% 15,000 



Total expenditure $66,250 



Store profits for third vear 



15.000 



Cost of third year's development $51,250 



rOUKTH YEAR. 



Last payment on land purchase $1,250 



Tools, cattle, etc 5.000 



Maintenance of 2.500 acres S $4 lO.OOO 



Superintendence and administration 25.000 



One-third cost of crepe plant to be designed for 

 fuil development but installed as needed: 



2 Universal washers . $6,000 



30 macerating, creping and finishing mills 25,000 



400-h.-p. steam plant 9.00U 



$40,000 14.000 

 Note. — If hydroelectric probably $10,000 higher first cost 

 against cheaper maintenance and operation later. 



Miscellaneous 10.000 



Interest on $300,000 (§> 6% 18,000 



Total expenditure $93,250 



Store profit for fourth year 



15,000 



Cost of fourth year's development $78,250 



FOURTH YEAR. 



Tools and cattle, including tapping implements, etc $10,000 



Maintenance of 2.500 acres (» $3 7.500 



Plant operation and tapning 100.000 trees 30.000 



Superintendence and administration 25.000 



Half cost on: 



2 buildings. 120' x 5' two-story with drying 



system with cement floors $10,000 



2 buildings. 120' x 50' for smoke 5,000 



1 building, 150" x75' one story, cement floor for 



crepe plant 5,000 



1 building, 150' x 75' with cement floor for co- 

 agulation plant 5.000 



1 building. 120' x 60' single story, cement floor 



for grading and packing 4,000 



1 building. 100' x 50' single story, cement floor 



for box factory and repair 4,000 



$33,000 



One-half cost applied this year 16.500 



Second payment crepe plant machinery C/j cost) 13,000 



Miscellaneous 10,000 



Interest on $400,000 <d 6% 24.000 



Total expenditure $136,000 



Rubber returns 100,000 X H\b. @ $0.40 30,000 



Profit on store for fifth year 15,000 



45.000 



Cost of fifth year's development $91,000 



SIXTH YEAB. 



Tools, cattle, including tapping equipment $10,000 



Maintenance of plantation 7,500 



Plant operation and tapping 250.000' trees 70,000 



Superintendence and administration 25,000 



Final cost of crepe machinery (.yi cost) 13,000 



Final cost of buildings ('4 cost) 15.500 



Mi«:ellaneous 10,000 



Interest on $500,000 @ 6% 30.000 



Total expenditure $182 000 



Return from 250.000 trees: 



loo.noo X i;<i = 125.000 ibs. 



150.000 X Ki = 112,500 lbs. 



237,500 lbs. @ $0.40 95 000 



Profit on store isfiQO 



110,000 $110,000 



Cost for sixth year $72,000 



SEVENTH YEAR. 



Tools, cattle, etc $10,000 



Maintenance of land and building (5% of cost) which 



is $90,000 4.500 



Tapping ...... 50,000 



Plant operation, boxing and shipping 387,500 Ibs 30.000 



Superintendence and administration 25 000 



Miscellaneous loioOO 



Interest on $500,000 @ 6% 3o;ooo 



Total expenditure $159,500 



Returns from 250.000 trees: 

 lOO.OOO X 2 = 200,000 lbs. 

 150,000 X 1J4 = 187.000 lbs. 



„ ,. , 387.500 lbs. @ $0.40 $155,000 



Profit from store 15000 



Total receipts $170,000 



Deduct expenditure 159,500 



Credit balance (represents 2% on $500,000 capitalization) "$10^500 



EIGHTH YEAR. 



Cost of up-keen and operation sioo nnii 



Return from 250.000 trees: ^.lou.uuu 



100.000 X 3 =: 300.000 lbs. 



1 50,000 X 2 = 300,000 lbs. 



600.000 lbs. ® $0.40 $240,000 



Profit from store 15 000 



DXrexpr^diii^es"::;:::;;; ::::;::;::::::::::::::;: *i6o:mo 



Credit balance (represents 20% on $500,000 capitaliza- 



"°"^ $95,000 



NINTH YEAR. 



Cost of up-keep and operations $175,000 



Returns from 250.000 trees: 



100.000 X 3'A = 350.000 Ibs. 



150,000 X 3 = 450.000 Ibs. 



^ , , 800,000 lbs. @ $0.40 $320,000 



Profit from store 15 000 



Total revenues Tv\Z7\nn 



Deduct expenditures ...,.: UsiooO 



Credit balance (represent 30% on $500,000 capitaliza- 



*'°"'> $160,000 



TENTH YEAR. 



Cost of up-keep and operation STin nnn 



Returns from 250.COO trees: $-00,000 



100.000 X 4</i = 450.000 Ibs. 

 150,000 X 3'A = 525.000 lbs. 



„ , , 975.000lbs. @ $0.40 $390,000 



Profit from store 15.000 



Total revenues $405,000 



Deduct expenditures 200.000 



Credit balance (represent 40% on $500,000 capitaliza- 

 •'o"^ $205,000 



CONCLUDING REMARKS. 



The total cstimaled cost to develop a 1.000 hectares C2.50O 

 acres) rubber plantation in the Philippines is $500,000 or $200 an 

 acre. Such a plantation properly developed should average 500 

 tons to 635 tons (4(X) to ,500 pounds an acre year) of crepe rub- 

 ber a year henceforth at a cost of from $0.20 to $0.30 a pound. 

 This cost will make for a good profit until the peak is reached 

 when the demand is exceeded by the production. It is then that 

 the low production cost, wherever it tnay occur — it points to 



