THE SUPPLEMENT TO THE 



Tropical Agriculturist and Magazine of the C. A. 8. 



No. 2.] FEBRUABY, 1908. [Vol. 



TEA IN 1907. 



MESSRS. McMEEKIN & CO.'S ANNUAL 

 REPORT. 



The year was one whi?h presented many 

 features of interest to the various sections of 

 traders connected with tea business. The 

 dominant influence was the continued develop- 

 ment throughout most tea-using countries, in 

 the displacing of other growths by Indian and 

 Ceylon Teas. The consequent increase in the 

 world's consumption of those rendered the pro- 

 duction of them apparently inadequate to meet 

 the demand, and led to a continuance, more or 

 less steady throughout the year, of the advance 

 in the average of prices which commenced 

 during 1906. 



Producers. 

 The conditions in general for those interested 

 in the profits of production have greatly im- 

 proved, and the most obvious index of the 

 improvement is the selling value of the 

 shares in the principal Tea Companies. The 

 calculations of Mr. Geo. Seton as to 170 com- 

 panies representative of India and Ceylon, show 

 that the shares and debentures of same were at 

 about the lowest point (say September, 1902) 

 worth £12,100,000, but their value at 1st Novem- 

 ber, 1907, was £21,600,000. Therar value of the 

 same securities is £19,000,000, and it is frequently 

 assumed that the figure represents the cost of 

 the properties. It merely represents the cost of 

 their investments to shareholders who purchased 

 at par. The varying capital value per acre shows 

 that certain estates have cost much more to 

 make than others or that the inflation of capital 

 at the time of formation has in some cases been 

 considerable. Many of the properties included 

 in companies changed hauds frequently 

 at evor-increasing valuations, and promoters' 

 profits and costs of flotation went to swell the 

 capitp.l In a few cases capital lost has been 

 written down. The resident planter managing 

 his own estate will soon be a mere memory, the 

 ownership in most instances now vesting in a» 



II. 



absentee proprietary of shareholders. The "poor 

 planter " exists more really than ever he did, 

 however, in the shape of resident managers and 

 assistants who lack the stimulus their predeces- 

 sors had in the possibility of brilliant results 

 from their individual efforts on their own behalf. 



Although a general improvement in results is 

 shown, it is much to be regretted that the pro- 

 ducers of high-grade Teas have suffered severely 

 by what approximates to a dead level of uni- 

 formity in price. The old subtle distinctions of 

 grade and quality seem to be abandoned in the 

 scramble to get merely what is lowest in price, 

 and little encouragement is given to the pro- 

 duction of superior tea. The demand will prob- 

 ably always be equal to taking off choice qua- 

 lity Darjeolings when produced, but the fine 

 astringent Assams of former years, which were 

 used to fortify weaker growths in blend3, 

 are unlikely under modern conditions to be so 

 much required. The subject of turning the po- 

 pular taste on to goodness rather than cheapness 

 should weigh with the producers, and surplus 

 profits might be devoted to a quality crusade 

 with more result than has followed other less 

 desirable expenditure. 



Distributers. 

 The year has not been by any means a satisfac- 

 tory one to the distributers. The large wholesale 

 dealers, who buy in the public auctions for re- 

 sale in the country, made in many cases serious 

 losses in consequence of the falling prices for 

 everything except common teas. The profits on 

 the latter, which are generally quickly turned 

 over at narrow margins, never at best provide 

 any reserve towards losses. The smaller dealers 

 and independent shopkeepers have found it hard 

 to meet the competition of the great multiple 

 shop companies. Those who generally sell other 

 goods besides tea have seen fit to cut the latter 

 at unremunerative rates with which the dealers 

 in tea alone could only compete by making 

 serious sacrifices. The higher prices current en- 

 tailed greater capital requirements, while yield- 

 ing smaller profits, and in the closing months 



