October i, 1907.] 



THE INDIA RUBBER WORLD 



1 



Published on the 1st of each Month b^ 



THE INDIA RUBBER PUBLISHING GO., 



No. 35 WEST 21st STREET. NEW YORK. 

 CABLE ADDRESS: IRWORLD. NEW TORE. 



HENRY C. PEARSON, 



EDITOR, 



HAWTHORNE HILL, 

 ASSOCIATE. 



Vol. 37. 



OCTOBER 1. 1907. 



No. 1. 



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THE INDIA RUBBER PUBLISHING CO. 



Entered at New York postotBcc as mail matter of the second class. 



TABLE OF CONTENTS ON LAST PAGE READING MATTER. 



SOME LARGE RUBBER PROFITS. 



IT is no longer necessary to argue that rubber can be 

 produced on plantations, any more than in tlie case 

 of rice or tea or cotton. Nor is it any longer a question 

 whether it can be produced profitably. It is not by way of 

 argument, therefore, that we refer here to some details 

 from the latest report of the Vallambrosa estate which 

 appear on another page. Our reason for selecting this 

 company for special remark is both on account of the 

 extent of the plantation and the fact that it is purely a 

 rubber proposition, whereas the accounts of many of the 

 other rubber producing companies in the Far East relate 

 to other products as well as rubber. 



Briefly the history of the company is this : Early in 

 1904 the owners of three neighboring estates in the Fed- 

 erated Malay States, or their representatives, got together 

 in Edinburgh and formed a company for the amalgama- 

 tion of tlieir interests. Some rubber had been planted 

 during 1898 and the succeeding years, and the company 

 planned to plant a lot more rubber. The new company 

 issued shares of the par value in American money of 

 $218,992.50, which they divided among themselves, while 

 they allowed others to subscribe for $27,252.40 in shares, 

 making a total issue of $246,244.90, which is the amount 

 of capital stock now outstanding. 



From the date mentioned the work of the company was 

 that of development and additional planting. When the 

 company was two rears old — by which time the oldest 



rubber trees were six years old — it had marketed 39,113 

 pounds of rubber, with the result that the profit and loss 

 account had a credit of $23,598.60. No dividend was de- 

 clared, however. 



The figures for the third year — ended IMarch 31, 1907 

 — are of surpassing interest, viewed in comparison with 

 agricultural profits generally. The company marketed 

 156,922 pounds of rubber for $195,900.96 at a profit of 

 $1 per pound, gold, estimated by deducting from the cash 

 proceeds the cost of tapping the trees, coagulating, pack- 

 ing and transportation. The average yield per tree, from 

 six to eight years in age, was about one pound. But 

 meanwhile much additional planting had been done and 

 this and the whole cost of the upkeep had been charged 

 to revenue, so that the company figured its net profit al 

 only $147,166.76. After a liberal allowance for directors' 

 fees and a handsome "carry over" to the next year's ac- 

 count, the dividend declared for the year was 55 per cent, 

 on the capital stock issued, or a total of $135,489.70. The 

 net results from the rubber marketed would have yielded 

 a dividend of GSyi per cent, on the total capital. Is it 

 any wonder that shares have changed hands recently in 

 London at 9j/s times their par value — S46.84 for £1 

 shares ? 



While no other rubber planting company thus far has 

 made such a favorable showing, it must be noted that no 

 other rubber plantation on a similar scale is yet so fully 

 developed. As for yield, the first year's planting on 

 Highlands and Lowlands estates yielded during the last 

 twelvemonth over 7 pounds per tree. Suppose all the 

 \"allambrosa trees should do as well, when all of them 

 reach the same age as at Highlands, at which time there 

 would be no most cost of planting to be charged against 

 revenue. At the prevailing rates for rubber the dividends 

 would amount to several hundred per cent, a year. With 

 such results possible it is easy to understand the com- 

 placency with which rubber planters in the Far East dis- 

 cuss the possibility, in the remote future, of rubber prices 

 dropping to 3 shillings [=^73 cents] a pound. 



LIBR 

 NEW 



HOT A I 



O.aKI 



RUBBER CONSOLIDATION IN ENGLAND. 



THERE has not yet existed in England any such 

 amalgamation in the rubber goods industry as the 

 American newspapers refer to habitually as "rubber 

 trusts." But it might be suggested that, while diflfering 

 in form, certain cases of community of interest in the 

 British rubber industry are based upon the same prin- 

 ciples as those upon which the American combinations 

 have been based. 



For example, a mechanical goods manufacturing com- 

 pany at Manchester has been reorganized lately under the 

 control of the long-established Macintosh firm, who 

 finance it and name the directors. The same firm not long 

 since adopted a similar relation to another rubber factory 

 near Manchester. But the dift'erent concerns each main- 

 tain a separate corporate existence with nothing in the 



