THE TROPICAL AGRICULTURIST. [September 2, 1889. 
I am only interested in the matter, so far, that 
I also have gemming leases to dispose of, and I do 
not wish to see them unnecessarily depreciated, by 
Government selling their leases much below their 
intrinsio value, -I have the honor to be, sir, your 
obedient servant, C. Shand. 
The Hon. the Colonial Secretary, Colombo. 
♦ 
PLANTING IN CEYLON :— THE OEIENTAL 
BANK ESTATES COMPANY (LIMITED). 
The third annual meeting of this company was held 
on the 18th instant at Winchester House, Old Broad- 
street, London, E. O. Mr. Alexander William Crichton, 
chairman of the company, presided. 
The report of the directors and the notice convening 
the meeting were taken as read. 
The Chairman : Gentlemen, this is the third time 
that we have had the pleasure of meeting you thus, 
but this occasion differs somewhat from the previous 
ones, inasmuch as it follows after only a short interval 
upon the two extraordinary general meetings that wa 
held in the spring. It will be in your remembrance 
that those meetings were held with the object of 
preparing the way to obtain for our shares, according 
to the wish of the shareholders, a quotation on the 
Stock Exchange. The quotation was subsequently 
granted, and ever since then the shares have regularly 
appeared in the Official Li -t. I will now proceed to lay 
the reoor ; . before you, dealing with che geueral situation 
aud wiUi the amount of dividend we recommend you to 
^c'are. The report states the net profit. £-5 803 16s 
lid including £217 17s 5d brought forward from last 
year, and this profit is, besidf s, the amount written off 
the suspense account. And, gentlemen, we are. glad 
t" be able to meet you with such a result, for we have 
been put to great expenditure oil our Mauritius estates 
from excessive rains at the beginning of the year ; and 
we have also suffered heavily from the extraordinarily 
low prices of tea which have prevailed throughout the 
year, and which have prevented the expansion of the 
profit we had expected. As to the quantity of crop, 
indeed, the produce of our 4,200 aares of tea has 
increased very largely ; but, notwithstanding this 
successful result of our agriculture, the heavy fall 
in the price of tea prevented a financial improvement 
commensurate with the increase in the crop. The 
me isures which we took in view of this state of things 
will, we think, commend themselves to you. We have 
for some time past refrained from further extension of 
our tea plantations, so that our revenues should not 
have to bear the burden of the upkeep of new cultivation 
of plants which would not come into bearing, 
necessarily, for some years. Having, as we conceive, 
an ample area already planted, we devote our attention 
to increasing the yield per acre, and to improving the 
quality and manufacture of the tea ; and in that 
direction lies, we feel sure, the beat way of increas- 
ing our profits. (Hear, hear.) In this, it is true, we 
are not following the example nor the methods usual 
with Oeylon planters ; but the failing of the planters 
too often has been to rush with enthusiasm and 
impetuosity into new undertakings without due regard 
to the teachings of experience. Hence arises a vast 
inorease of production, depressing the market, but an 
increase springing rather from large areas rapidly and 
often imperfectly thrown into cultivation, than from 
large and satisfactory yields per acre of each estate. 
Hence, too, arises exaggerated notions of the value of 
the raw tea leaf by those who have to sell it for 
manufacture by others, 9 and 10 cents being asked for 
what, according to the probable value of the tea to be 
made from it, khould only cost 7 cents per pound. Wo 
wish that all th . se tendencies were abandoned, and 
that everything were conducted with prudent antici- 
pations of the future, so that the cost of production 
•hould fall well within the price to be reaped and 
thus a proper margin of gain be secured. These, at 
all events, are our objects, and we feel sure that 
the policy which we are pursuing will plaoe the 
company in a much better position than rapid and 
costly extension, Increase of crop per aore, and the 
improvement of quality rather than increase of 
acreage is what we aim at in our enterprise. (Ap - 
plause.) 
The report goes on to deal with the other products 
of our estates, and you will observe encouraging re- 
marks with reference to the condition of the coffee 
trees, whioh conditions is more satisfactory from the 
high price which coffee now commands. With re- 
gard to sugar also you will see the good hopes that 
we have of a successful campaign during the com- 
ing season. The Mauritius sugar orop begins to be 
reaped in August and is finished about January, 
and during those months the crop being reaped a 
great part is made into sugar, and is gradually sent 
down for sale to Port Louis. Only a comparatively 
small part of last year's orop, therefore, benefited 
by the recent high prices of sugar, which were not 
obtainable there till nearly the end of April. But 
we are only reflecting the general opinion when we 
say we believe that a higher range of prices than 
has prevailed for some years will be obtainable for 
the next sugar orop, and that as a direct conse- 
quence of the small stocks now available for con- 
sumption. Some of you may have seen that 
lately the sugar market has weakened, but we 
are confident that that has only been in conse- 
quence of the proceedings of speculators. The 
sugar market is in an unusually strong condition, 
the stocks of the world being 300 000 tons less this 
year at this time than it was at the corresponding 
period la=t year, and that strong statistical position 
cannot fail to assert itself. The remarks on the crops 
and condition of our estates close all but the merely 
fornrml part of the report, and we have not again added to 
i l this year the list of the mmes and acreages of our 
estates, for they have so often and recentlv appeared 
in reports and other published documents. Now. with 
regaH to the accounts, there is little to call for 
fresh remark. The share capital remains as it was, 
except that a few more ordinary shares have been 
paid up, and I may remark that we do not intend 
in the future to issue any fresh shares. The accept- 
ances and accounts payable are more than balanced 
by the value of stocks in hand and accounts receivable. 
A sufficient amount has been written off the suspense 
account. You will notice with regard to the item 
" office furniture, stationery, and stores," that has 
been increased by nearly £2,000, but the reason is 
that we find it more economical to purchase the 
stores here than in the colonies, and, therefore, we 
have purchased these stores as a means of reducing 
the expenditure on our estates. That does not mean ex- 
penditure in furniture, but stores purchased for the sake 
of economy. The only other item which requires examina- 
tion is the amount by which the cost on our property has 
been increased; that is £24.000— off which £4.000 has 
been written — arising partly from recoveries and partly 
from a sufficient amount set aside to necessary depre- 
ciation of buildings and maohinery. The increased 
oost of this property represents the value of certain 
mortgages taken over, which will yield us a good rate 
of interest; represents the costs of machinery, and 
so represents the cost of the one-third share 
of the Kondesalle estates, and a number of other 
smaller pieces of land which I mentioned last year, 
and which were paid for out of the year under exami- 
nation. The profit and less account resulted in a profit 
balance, which, added to the amount you have already 
received by way of interim dividend and to the 
amount written off for suspense account, makes a total 
of £26,803 16s lid. Out of the balance we now re- 
commend you to deolare a dividend similar to the 
last, which makes a total distribution for the year of 
7 per cent on the issue of preferred shares, and 5 
per cent on the ordinary shares in proportion to the 
amount of oapital paid up. 
Adverting to the issue of our four and a-half per 
cent debentures, we are glad to say that the whole 
amount offered has been subscribed for, and we feel sure 
that this fresh capital will prove a source of great 
strength to the oompany. In the course of the opera- 
tions of considerable magnitude in which we are 
engaged — I mean, amongst other things, the raising 
and bringing to market, either on our own account or 
