272 THE RUBBER INDUSTRY 



The cost of tapping and collecting is very much 

 higher in Java than elsewhere in the Orient for reasons 

 explained elsewhere. 



The yield of dry rubber from an estate planted 

 15 feet by 20 feet with 149 trees to the acre, or 20 feet 

 by 20 feet, with 108 trees to the acre, should not be less 

 than 280,000 pounds under normal conditions, basing 

 such figures on the actual returns obtained per tree, and 

 after making due allowance for local conditions. The 

 account at the close of the sixth year should be 



Lb. 

 Dry rubber 280,000 







Value at 2S. per Ib 28,000 



The annual expenditure is 15,975. Freight and 

 charges from port of shipment to date of sale are 

 ij pence per pound, or a sum of 1,750. The bonus to 

 manager and assistants would be 1,200. Directors' 

 fees and secretarial expenses in London or elsewhere, 

 about 1,500. Therefore the final return should be 







Gross return , 28,000 



Less freight and charges, 1,750 ; com- 

 missions, ;i,2oo ; cost production f.o.b., 

 I 5>975 > European directors and office, 

 i.5oo 20,425 



Net profit 7,575 



On a capital expenditure of 25,000 this would enable 

 a dividend of 30 per cent, to be paid. If the price of 

 rubber should drop to 18 pence per pound, the estate 

 would still be in a prosperous condition. Allowing that 



