184 THE RUBBER INDUSTRY 



and meet with unforeseen contingencies requiring most 

 substantial financial assistance. Failing such aid a 

 deadlock must ensue, and the liquidation of the company 

 follow. In cases where debentures have been issued, 

 the assumption is that the holders will foreclose, and 

 obtain possession of the property on a low capital basis. 

 Where no fixed charges exist the estates will be absorbed 

 by more fortunate concerns, or purchased at a compara- 

 tively low cost by European, Chinese, or local capi- 

 talists. There does not appear to be any likelihood of 

 such properties going out of cultivation unless in very 

 exceptional circumstances. It is safe to assume that 

 the general effect of over-capitalization will be towards 

 the extension of the present cultivated area and the 

 consolidation of properties into larger holdings. 



As an indication of the amount of over-capitalization 

 resulting from the rubber boom of 1909-10, it is neces- 

 sary to refer to the value of the flotations made in 

 those years in Europe, Hong-Kong, Shanghai, and 

 locally. It is not possible to give exact figures, but 

 the approximate amount, certainly on the cautious 

 side, may be taken as 



British, subscribed in 1909-1911 ^24,000,000 



Local and Chinese, subscribed in 1909- 1911 3,000,000 



27,000,000 



This gives an average capitalization of 54 per acre, 

 distributed over 500,000 acres comprised in Group 

 No. 2. Groups Nos. i and 3 may be capitalized at 

 4,000,000, or an average of 27 per acre. 



From 1907 to the end of 1911, the nominal capital 

 of rubber companies floated in London for all countries 



