39« 
THE TROPICAL AGRICULTURIST. [December i, i88g. 
but our latest advices are of a fairly satisfactory 
character from Amsterdam, and report that the 
market there keeps good for all light coloured tobacco 
of the qualify of which the bulk of ours consists. 
But even taking into account the possible fluctuations 
of the market, the entire crop ought to realise about 
£72,000 and as it cost £42,000 to raise, it should 
leave something like £30,000 the profit balance in our 
hands for disposal. (Cheers.) So that about the 
first week of September next, if the transfer of the 
estates is then completed, we should be in a position 
to announce to you the payment of an interim di- 
vidend for the half-year concluded yesterday. This 
will be, of course, at the rate of 7 per cent, on the 
preference capital, and on the ordinary shares should 
be at a rate more satisfactory than is usual in com- 
panies recently formed. Gentlemen, this is very 
gratifying to myself and colleagues on the board ; 
for, before allowing our names to be placed on the 
prospectus soliciting your subscriptions, we took the 
utmost pains to sift every statement made, and to 
verify the figures put forward. We did not rest 
satisfied with the evidence and documents produced 
by the vendors and promoters ; but those of us who 
are connected by business or otherwise with the East 
instituted private inquiries as to the condition of the 
properties, and all of which fully supported the state- 
ments of the vendors. I was fortunate enough to 
know a high official who had served under our 
government of the Straits Settlements. He had visited 
the Deli and Langkat districts frequently, and knew 
the estates well, and his opinion was that our three 
properties — Rimboen, Lingga, and Taboeran — were 
about the best in Sumatra. So much regarding the 
crop of 1888, which may now be regarded as an as- 
certained quantity, and you will doubtless be anxious 
to learn something of the current year's crop. From 
the latest advices received by us from Sumatra, trans- 
planting had been going on for the last two months, 
and it was expected that the whole would be finished 
early this week. The area prepared for cultivation 
was 1,095 fields as against 824 last year ; so that, 
given equally favourable climate conditions for growth 
and preparation and as good a market, the results 
from this year's crop should be about 25 per cent, 
better than last year, both in quantity and money 
value. To raise and cure this effectually we have 
the ample labour force on the estates of 1,192 Chinese 
coolies, and as the practice is to work by contract, 
each coolie taking a field, we have a sufficient margin 
for sickness or casualties. I would like now to say 
a few words which may be of interest to you 
regarding the prospects of the tobacco industry 
generally, and I do so with great diffidence, because 
there may be some gentlemen in this room who 
have been engaged in tobacco planting in Su- 
matra itself, and can speak as experts. The 
Sumatra tobacco industry is a very young one, for 
it only attained its majority this year. Twenty 
years ago the whole exports from the island were less 
than 300 bales, and sixteen years ago the whole crop 
was not so much as was turned out by our estates- last 
year. So far as I can ascertain — and I have made it my 
bu-iness to inquire from experts and others in the to- 
bacco trade — thereis but Ijh tie prof-pect of a fall in value. 
It is a peculiarity that almost in direct ratio with the 
increase in production has been the increase in the sell- 
ing price. The only point, then, wo have got to fear is 
the possibility of rivals in other places, or in the island 
of Sumatra itself. The peculiarity about tobacco, wl ich 
most of you are probably a" are ot, is that choice quali- 
ties can "iily be gr. wu in very small spots all oV'r the 
worl i. Chenn ts an naturalists ar" not a r le to r -y 
why 'li s ,-lioid.i be ti i cas , but it is undoutedly ;o. In 
ih' i lami «•( rul.a. which it* a very large island, jhere js 
only a very email trac which raises the choice tobacco, 
and which has madethe Havana cigars so famous; and 
in I ia, wh'-re the best purl, of my life has been spi nt, 
.ill hough a vast country — as big as Europe, excluding 
F h c ! I here -re niily on" or two districts, where fair 
Stnok blc tobacco can be urown. The fame applies to 
Sumatra, the third largest island in the world; there are 
only a few places, comparatively speaking, where t 
peculiar wrappery tobacco can be produced. We have 
nothing to fear from competition there, but a little 
rivalry has sprung up in British North Borneo. I was 
one of the Commission of the Indian and Colonial Exhi- 
bition, and I remember with what a flourish it was said 
that this wrappery leaf tobacco was being produced 
there; that is four years ago, and since that time some 
twenty-five companies have been formed for working 
tobacco in North Borneo, with a capital of close on 
£2,000,000, and I have not vet heard that there have 
been any commercial successes whatever from it. 
None of these companies , so far as I know, pays a 
dividend, and I do not believe many pay their working 
expenses. Thus I think that, so far as British North 
Borneo is concerned, we may make our minds quite easy 
that they are not going to hurt us with regard to our 
estates. On the other hand, I believe we shall be able 
to work in the future on a larger scale, and the cost of 
production will be much less than in the past. One of 
the chief causes of expenditure was the importation of 
Chinese coolies, the cost of which used to be put down 
at S100 a bead— that is for adult —and they only stayed 
for from three to five years, so that representsa consider- 
able expenditure. Litely, however, a convention has 
been formed between Holland and China which admits of 
tbe importation of Chinese emigrants into Sumatra, 
at d we are fortunate enough to have on our board Mr. 
C. L. Grant, who is a member of one of the leading 
houses in Hong Kont , and we shall.no doubt, be able 
to get facilities and assistance to put labour on our 
estates much cheaper than could be done hitherto, 
(Applause.) With regard to the transfer of the estates, 
we are doing everything we possibly can to hurry this, 
but 1 believe the Dutch colonists are not very rapid in 
their movements. We are advised by our legal adviser 
here, Mr. Slaughter, and by the highest legal authority 
in Holland, that very little delay is likely to occur. One 
thing likely to hinder us was this — we ascertained, quite 
recently, that there whs a small local company named 
the Deli and Langkat Tobacco Company, and the Dutch 
colonial authorities were likely to take exception to our 
title, although, of course, there would be the difference 
between the Dutch aud English names. However, to 
prevent any po-sibility of delay in that way we were 
advised to alter the name of our company by prefixing 
" British " before the other words, and that is the 
reason for our calling you together a little earlier than 
we should have done otherwise, so that we could effect 
the necessary change in two meetings instead of three. 
As soon as we have got the transfer we will make an 
application for a Stock Exchange quotation, and as we 
have complied with every rule and regulation of the 
Stock Exchange, I should think there is very little 
doubt about our getting it. There is only one other 
matter which I would wish to mention. When I was 
offered the chairmanship of the company by the favour 
of my colleagues I hesitated for some time to accept it, 
because I knew there were many of them of greater ex- 
perience and better adapted to fill the post; but when it 
was pressed on me I accepted it, because I had that 
which the others might not be able to have— the advan- 
tage of going to the East once every two years. In 
January next I leave England, and will make it my 
business when abroad to visit the estates in Sumatra. 
(Applause.) In working other properties in India and 
elsewhere I have found it of the greatest advantage that 
those who control the administration should know all 
that goes on, aiad make themselves acquainted with the 
conditions under which the properties are worked, and 
that they, generally, should be in touch with the men 
who reprint them at the property; and I thought this 
of so much impor anc.-, that I accep'ed the position of 
presiding over this bo ,rd solely on this account. (Hear, 
hear.) I have uotbi- .. m.-re to add now, and beg to 
formally propose this resolution : '-That, subject to the 
approval of the Board of Trade the name of the company 
be, and is hereby changed to the British Deli and 
Laugjjat Tobacco Company, Limited." 
Sir Alex nder Armstrong, K. C. B., seconded the 
motion, which was unanimously agreed to. 
The proceedings then terminated. — LonCon and China 
Express, July 5 th, 1889, 
