July i, 1889.J 
THE. TROPICAL AGRICULTURIST. 
the Kinta District, with the object of purchasing tin 
ore, to be smelted by scientific methods in Singa- 
pore. The objection to establishing a smelting fac- 
tory in the State appears to be the enhanced co3t 
of the coal, which would have to be shipped over from 
Penang or Singapore. 
Applications from Europeans for mining concessions 
in the Bating Padang District are numerous. 
Mr. A. A. Swan is pu-ihing on the survey of the 
proposed Ti luk Anson Tapa Railway. Plans for tl e 
section from Teluk Anson to Changkat Jong are ex- 
pected to be ready by the end of May, and for that 
from Changkat Jong to Tapa by September. 
The State Engineer has been recently engaged in 
the preliminary investigations for a trace from the 
Plus Valley towards Kelantan. 
♦ 
EASTERN PRODUCE AND ESTATES COM- 
PANY, LIMITED. 
(From the Money Market Review, April 27th, 1889.) 
The second ordinary general meeting of shareholders 
was held on Thursday at the offices of the company, 
27, Clement's-lane ; Mr. O. J. Lindsay Nicholson iu 
the chair. 
The notice calling the meeting was read by Mr. 
Douglas R. Smith (the secretary). 
The report and accounts were taken as read. 
The Chairman said : Gentlemen, I think it is my 
duty, in the first place, to express the pleasure that 
the directors have in meeting the shareholders of the 
reconstituted company today at the first annual meet- 
ing, and then briefly to go through the balance-sheet 
and the profit and loss account. If you will kindly 
turn to the balance-sheet you will fiud on the liability 
side that we have a capital in hand of £299,888 ; we 
have debentures £195,200 at 6 per cent. ; we then 
have at the debit of estates reserve account, realisa- 
tions, and reioveries the amount of £4,904 14s 2d, 
which is made up of the realisation of produce at a 
value over and above that fixed upon by the liquidators, 
and the proceeds of the sale of one estate. We have 
sundry creditors £7,738 9s 8d, bills payable £19,512 
10s, and a balance of profit and loss account £465 
13s 5d.' On the asset or credit side we have an amount 
repieseuting lauded and other property acquired at 
Jan. 1st, 1888, under agreement dated Oct. 10th, 1887, of 
£436,117 4s. We have laid out on tea extensions 
£11,615 6s lOd ; we have laid out on machinery and 
buildings £3,834, and from this we have written off 
for depreciation an amouut of £1,051 17s 6d leaving 
that latter item now at £2,782 15s 6d. On the 30th 
December we had on hand £16,981 12s 7d of produce; 
but I may say that that amount has been almost rea- 
lised since. Then we have advances against produce 
and supplies of estates, £9,166 2s; furniture, £111 19s 6d; 
sundry debtors, £21,788 9s 7d ; bills receivable 
£967 12s 8d ; and cash on deposit and at bankers, 
£31,019 15s 8d. Now, turning to the profit and loss 
account, you will see we have spent on upkeep of 
estates, including cost of purchased tea leaf and allow- 
ance for depreciation on machinery and buildings, 
£46,323 lis. The salaries, office expenses, and general 
charges in London aud Ceylou have been £6,060 17s 6d. 
and the interest on our six per cent debentures 
amounted to £11,712. On the other side of the profit 
and loss account the proceeds of produce sold and 
brought to account at Dec. 31st and profits from 
agency business and interest, &c,, amounted to 
£47,480 9s 4d. and we have the estimated value of 
produce on hand at December 31st last, £16,981 
12s 7d. Your directors while they call this the 
second ordinary general meeting, would also call at- 
tention to the fact that these accounts only represent 
nine or ten mouths that the directors of this new 
company have been in touch with Ceylon ; and when 
they say they pleased with the results, they based it 
upon the opinion that at the time this company was 
reconstituted you will remember it was stated itmight 
bo possible to go to the debenture holders, or some of 
thom, *or 'certain indulgence, in case we had to meet 
Hub preference divideud. I am glad to say the result 
of the year enabled us to meet every claim a,nd pay 
off the debenture interest, and also the iu'erest upon 
the preference shares. (Hear, hear.) The result of the 
year's working had been injured, iu a way, by the deca- 
dence of ooffee in Ceylon. There s-eems uo doubt that 
coffee appears to be going entirely out of Ceylon, and it 
seems to us only a question of time that coffee will cease 
to be a product of Ceylon. Consequently, we have 
substituted tea for the decaying coffee, and it has, iu a 
measure, injured our results. We do not like to 
hazard aa opinion, but if we can attach any weight 
to the reports which reach us since our report was 
made up, the coffee this year seems likely to repay 
the loss of last year and leave a profit. It is the 
blossom we depend upon ; but Ceylon people know 
the disappointments which have arisen from time to 
time, and we do not attach too much importance 
to it. You will see that the yield of tea, 1888, from 
the company's estates was 986,800 lb., and the 
directors have thought it best to draw attention to 
the average gross price obtained, which was Is per 
lb. for this company, which compares favourably 
with the average market price of ll|d per lb. The 
directors feel that the real backbone of this con- 
cern is to be tea, and they are also of opinion that 
the quality of the tea produced will be the great 
feature if it is to be a feature at all. (Hear, hear.) 
Whilst on this subject I may read some remarks 
made by a great authority, namely, the Chancellor 
of the Exchequer, on the subject of Indian and Ceylon 
teas. ° * * 
That is the opinion of a great authority. Our simple 
and private opinion is that we must endeavour to put 
upon the London market the best tea, our experience 
being that wherever low grade tea is sent prices are 
unremunerative for good and bad together. Indeed 
we believe that individual producers no less than the 
whole industry will gain by a high standard of quality. 
I do not know that there is anything more I need 
allude to, but will nrw move the adoption of the report 
and accounts, and theu sit down and wait for any 
remarks which any gentleman may wish to make. I 
move that the report and accounts be received and 
adopted, and that a divdeud of 5 per cent, per annum 
to the 31st December on the paid-up capital be de- 
clared on the preferred shares, payable on an after 
30th inst. 
Mr. David Reid seconded the motion, and said he 
believed the company had some very valuable property. 
There was no doubt, as the chairman had said, that 
tea was the backbone of the company, and the share- 
holders had reason to look forward with considerable 
hope to the working of the estate. They had some 
very able and experienced men on the estates, and a 
manager who had had a long experience of the working 
of estates inOeylon. He believed the directors might look 
forward to meeting the shareholders in future years 
with improved balance-sheets. (Hear, hear.) As re- 
gards coffee, the prospects were, as regarded the blossom 
(as the chairman had said) good, but it was not always 
that they brought fruit. 
A Shareholder referred to the " advances " on 
the credit side, and asked the nature of these. He 
referred to the subject because the old company got 
into some of its difficulties by making too many ad- 
vances. Referring to the cash on deposit and at 
bankers, he said it seemed a large amount to keep at 
the bankers. 
The Chairman said that, as regarded the advances 
against produce, &c, a part of the amount was to 
outsiders. Where the advances could be made pru- 
dently and well the directors thought it advisable to 
make such advances. As to the amount of money iu 
baud and ou deposit no doubt it was somewhat large, 
but it was mostly bringing in 4 per cent interest. 
On the other side of the accounts there was £5,645 
to go for interest on debentures due on the 31st. As 
to the production of other articles besides tea and 
coffee, to which reference had been made, the com- 
pany were continuing the cultivation of other articles, 
such as cinchona and cardamoms, and they were 
also making preparations to grow pepper ; but tlio 
directors did not think that tlio matter was sutti- 
cieutly important to allude to iu the report. 
