88 - REPORT OF SCHIMMEL & Co. APRIL 1914, 
Sandalwood Oil, East Indian. Although a few large transactions have taken 
place from time to time, and interrupted the general quietness of this important article, 
the market has on the whole continued to wear that aspect of want of animation on 
which we commented already in our Report of last autumn. Even the high average 
prices which were realized at the 1913 sandalwood auctions in Mysore were unable 
to infuse life into the business, and the attempts which were made in several quarters 
to advance the selling prices of oil were soon recognized as failures. Only quite 
recently have the cheap second-hand offers disappeared, for under the pressure caused 
by the financial stringency in the months of October and November, most of the 
second-hand holders have cleared their speculative stocks. But these supplies have 
not yet been used up by the consumers, and so they continue to depress the market. 
It is probable that the prices of sandalwood oil will remain unaltered for some time 
to come; but how the future will shape can of course not be said with any approximation 
to exactitude. It is a fact that a few parcels of the wood which was bought in by 
the Mysore Government at the last auctions are still unsold, and it may be difficult 
to find buyers for them without making considerable concessions in price. In spite 
of the large scale on which we distil this oil we have at our disposal an abundant 
supply of cheap wood, which will last us for a long time to come, and we would 
therefore be able to reap considerable benefit from an upward movement, but notwith- 
standing this fact we are doing all we can to reduce the demands of the shippers, or 
of those on whose behalf they act, to a reasonable basis, as we are convinced that 
it is only by such a policy that the regular sale of large quantities of oil can be 
promoted. We quite appreciate that with the keen competition which exists in pre- 
parations of sandalwood oil, the manufacturers of such preparations, in view of the 
high prices of raw material, are not in a favourable position, and it is therefore also 
to our own interest to assist in facilitating their business by helping to bring about 
lower prices for sandalwood oil. It remains to be seen, however, whether we shall be 
successful in this policy in the face of the well-known endeavours of certain competing 
firms to drive up the prices to an impracticable level. The tables on pp. 90 and 91 
give particulars of the movement in prices, &c. at the last auctions in Mysore. The fact 
that last year almost all the oil distilled by us contained 94 p.c. of santalol, shows 
how carefully we proceed in buying sandalwood, and how excellent are our manu- 
facturing arrangements. 
The shipments of East Indian sandalwood from the Dutch East Indian Atchineiat 
in the year 1913 have again declined. According to the Macassar statistics they have 
been as follows: — 
1 
: 
¥ 
i 
1993 0 28). 16451: piculs 1908 . . . 11309 piculs 
(O12 ks tap AO 73,, 1907:.i) eS oes 
FOUL south SA ABES: 54 190659 be: 05.240 VTS aloe, 
L910 | eels i LOOD: “vie nk oe Sa nas 
1900. ©.) .° 4.43486... 
It will be seen from the above that the reckless destruction of the trees about 
which we have reported in the past attained its height in the year 1909, and that the 
injurious effects of this practice are now beginning to make themselves felt by a 
serious decline in the shipments. 
Several parcels of so-called sandalwood from Madagascar and Siam, as well as 
from New Caledonia and other islands in the Pacific Ocean, which had been sent over, 
chiefly to France, in view of the advance in the price of sandalwood, have turned out 
to be unsuitable for distilling and have caused much disappointment to their owners. 
