CHAPTER XXVIII 



COST OF PRODUCING RUBBER 



THIS is a matter which calls for the continual careful con- 

 sideration of all concerned with the rubber-planting in- 

 dustry. The returns given by various large companies, which 

 are now producing on a considerable scale, vary very much. 

 Some few companies, which have a fair area in bearing, charge 

 the cost of the upkeep of all immature rubber against revenue, 

 which is all right and wise enough when the finances of the 

 company permit of such a course. It is not, however, correct to 

 charge it locally to the cost of rubber production, and it should 

 be left to the boards at home to make such apportionment as 

 they may consider wise. 



There ought to be a standard way of arriving at the cost of 

 rubber f.o.b. If out of 1000 acres 500 are in bearing, exactly 

 half of all local charges for rent, salaries and allowances, wages, 

 recruiting, hospitals, visiting agents, local agents, depreciation, 

 machinery, tools and utensils, manufacturing, packing, trans- 

 port, insurances and assessments if any should be counted 

 in against the cost per Ib. of the rubber f.o.b. It is the nett 

 cost f.o.b. that concerns one. London charges do not vary 

 much, and there are very few industries where the London 

 charges are so extremely moderate as in the case of rubber. 



When any estate is producing 100,000 Ibs. of dry rubber 

 per annum the costs should certainly not exceed one shilling 

 and sixpence per Ib. f.o.b. at most, and such a figure ought to 

 be looked upon as one which has to be reduced each successive 

 year till it is well under one shilling per Ib. 



There is no country in the East where rubber is produced 

 at so low a cost as in Ceylon, where the cost of rubber f.o.b. is 

 33 1 per cent, lower than in the Federated Malay States, and 

 leading visiting agents speak with confidence of bringing the f.o.b. 

 cost down to sixpence per Ib. The higher costs of rubber in the 



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