25 



Such a property should at least yield, if properly 

 planted, 150 lb. per acre per annum. The annual profit 

 on a capital of ;^3o,ooo would be ;^"ii,25o, or 37-! per 

 cent. Every penny per lb. for rubber above or below 

 2S. 6d. means an increase or decrease of about 2 per cent, 

 on the available dividends. 



If, a 5 is quite probable, the estate yields 300 lb. of 

 rubber per acre per annum, every penny difference in. 

 price means about 4 per cent, difference in profits. 



If an estate costs only ;^20 to bring it into bearing and. 

 the above conditions prevail, the annual profit should 

 be at the rate of s6J per cent.; every penny difference, 

 with a yield of 150 lb. per acre, means 3^ per cent, to the- 

 dividends. 



Should the cost be ;^50 and the yield 150 lb. per acre,, 

 the profit available should be equal to 22^ per cent, an- 

 nually; a difference of one penny in rubber prices for 

 the year would for such a company mean ij per cent, on 

 the dividends. 



The following tabulated statement will perhaps help to^ 

 make this clearer : — 



It is obvious that the cheap estates will be more sen- 

 sitive than the dear ones to any change in the price of 

 raw rubber. The above calculations show, however, 

 that if labour is properly managed and diseases are kept 

 in check, rubber cultivation as a permanent investment 

 should be sound. 



