THE NETHERLANDS EAST INDIES 255 



Owing to the method hitherto in vogue of keeping 

 estate accounts in Sumatra, it is no easy matter to 

 arrive at exact figures in regard to the cost of produc- 

 tion of a pound of rubber f.o.b. at port of shipment. 

 At present the expenses connected with coffee cultiva- 

 tion are bulked with rubber where the two products are 

 interplanted, or, where an estate has young trees and 

 older trees in bearing, the expense of weeding has not 

 been allocated in proper proportion to capital and 

 revenue accounts. This confusion will be eliminated 

 when the rubber industry has further developed, but 

 for the moment the only practical course is to pick out 

 the different items, and not rely implicitly on the general 

 returns from estates. As a case in point take Telok 

 Dalam Estate, where the cost of production f.o.b. for 191 1 

 was placed at 58 cents per pound of rubber. An examina- 

 tion of the accounts discloses an item of 3,000 guilders for 

 a supply of cups, sufficient to last for three years, charged 

 against tapping and collecting for 1911. Similarly, all 

 the recruiting charges for indentured coolies brought 

 to the estate in 1911 were charged against the cost of 

 production in that year, instead of being proportioned 

 over the contract term of three years. Then, again, 

 depreciation on buildings had been omitted. Taking 

 account of these errors, the results worked out at 

 12 cents per pound less than 58 cents, and the cost 

 f.o.b. was 48 cents, or 9*20 pence sterling. The ex- 

 planation afforded by the general manager was that 

 he only wished to pay 8 per cent dividend for 1911, and 

 so debited many unusual costs against the revenue for 

 that year. After very careful consideration of all 

 details, the average cost of production f.o.b. Sumatra 

 for 1913 should work out as follows : 



