July 2, 1894.] THE TROPICAL AGRICULTURIST. 
To the Editor. 
TOBACCO IN BORNEO AND SUMATRA. 
Fassifern, Lindula, May 23. 
Deab Sir — The aooompanying article in the f 
Financial Neivs on the subjeot of Borneo and 
Sumatra tobacco is interesting to such of your 
readers who take an interest in the New Ceylon. 
Borneo's export in 1886 was 27 bales. In 1892 
it reached 10,255. The new London Borneo Co. 
paid a dividend in 1893. 
British oapital in Sumatra . . £700,137 
Do do Borneo .. 601,343 
—Yours truly, W. D. GIBBON. 
THE SUMATRA TOBACCO INDUSTRY. 
The second publio sale of the year for Sumatra 
tjbacco took place at Amsterdam on Thursday last, 
when prices ruled very high, on American and Ger- 
man buying. There is aproep60t of prioes continuing 
to be good during the whole of the season, as the 
supply is much diminished, aDd the demand is greater 
than that of last year. This is an important matter 
or investors, since there is no less than £1,301,480 
of British capital pat into the tobacco oompani< s of 
the East Indies — namely, £700,137 in Sumatra and 
£601,343 in Borneo. It is well known that the pro- 
duction was small In 1892, and it does not appear to 
have greatly reoovered in 1893. The following table 
gives the figures for the last ten years :— 
Crop. Bales. Average price Total 
per lb, value, 
1864 ... 50 0s 94d £325 
1874 ... 12,895 2s 6£d 240,000 
1884 ... 125,447 2s 5d 2,304,000 
1889 .. 161,507 2s 5§d 3,049,000 
•1890 ... 219.C44 Is 3d 2,042,000 
1891 ... 206,257 Is 6£d 2,431,00o 
1892 ... 136,381 2s Id 2,165,000 
1893 ... tl60,000 — — 
1894 ... fl53,000 — — 
* Year oftobacoo orisis. f Eitimated aocording to 
statistics to hand. 
In Borneo it must be remembered, the industry ia 
still in is ,iufanoy ; nevertheless, its rapid growth is 
remarks tble. The first crop in 1886 was twenty -seven 
bales, while that for 1892 was no less than ten 
thousand two hundred and fifty-five bales ; and the 
average pries for the latter was as good as that for 
the former. 
The crisis of 1891 in the tobacco trade cost Holland 
about £1,750,000 sterling. The causes of the crisis 
were the MoKinley Tariff Aot raising the duty from 
75o. to $2, a large orop of iuferior quality, and over- 
production through the rush of new concerns to partici- 
pate in the large profits whioh were being made. 
The effect of the McKinley Tariff is seen in the 
following statement of the American imports ; — 
Year. Bales. 
1881 2,900 (about) 
1885 25,500 „ 
1889 42,500 „ 
1890 62,500 (in anticipation of tariff) 
1891 10,000 
1892 32,000 
1893 ...18,000 
The last importation) slow that even the high dnty 
does not keep the tobaooo out of the American market 
—a faot which says a good deal for its quality and 
the favour in which it is held. With regard to 
the second of the cmsea mentioned as con'ribut- 
ing to the crisis it has to be remarked that in 
consequeuce o( the closiug of miny estates which this 
crisis brought about, a great quantity of la id has 
gODe baok to jungle. This has improve ! th > climate, 
whioh was adversely influeuced by the destruction 
f the primeval forest, and better tobiec > is, as a 
6 
result, being produced. Over-production, again, has 
had its day. It would take several years before pro- 
duction could overtake consumption. It requires two 
or three years to open up a new estate, atd cultiva- 
tion can only be extended gradually. There ia very 
little probability that we shall see the experience of 
1891 repeated. 
Last season's trade was characterised by prices 
such as had never been known before. The record 
price of 4.65H. (7s. 9d.) was obtained for a parcel 
of one hundred and forty bales at the public 
sale of June 10 ; but when sales recommenced 
after the August vaea'ion prices were very much 
lower all round, owing to the Americans ceasing to 
buy. Stringency of money in the United States was 
the only cause of this, otherwise the market there 
oould have absorbed more leaf. The future prospects 
must be regarded as good, for three reasons: fist, on 
account of diminished production ; second, because the 
fall in silver has rendered cultivation possible at 
prices never known before ; and, third, on aooount 
of the fall in price of labour consequent on the closing 
of estates through the cris's. In times past, the 
dividends paid by the great Dutch companies proved 
the highly-remunerative nature of this investment. 
It nppears as if a recurrence of their prosperity were 
now in view, as the Aren»burg Company has 
declared a dividend of 40 per cent., the Am terdam 
Deli Company of 30 per oent., nnd the Deli Maate- 
chappy of 50 per cent. The crisis caused a suspension 
of dividends by the different British companies, and 
heavy debit balances were piled up; but some of 
these, thanks to last year's results, have been already 
greatly rcduoed, and this year ought to see them 
wiped off entirely, and, possibly, a resumption of 
dividends. 
Netherlands India Sumatra Company's shares 
have risen within the last two months 
from 4s to 10s-12s. This company made an excellent 
and novel arrangement for tiling over the critical 
period. A syndicate was formed amongst the share- 
holders to work the e.tate for a year, pajing the 
company oue-fourth of any profit made. The loss 
wbich would have been brought about by the closing 
of the estate and the dismissal of the staff and coo'ies 
employed was thus avoided. The shares of the syndi- 
cate already command a premium of 100 per oent. 
The United Innkat Plantations made a profit of 
£17,000 last year. The crop coming forward is 
a very fine one, as is proved by the faot that 
the parcels of this company's tobacco offered 
at the first two public sdes in Amsterdam realised 
on both occisions the second highest prices. The 
British Deli and L^ngkat Company has also a good 
crop, and its parcels of leaf have sold at good price9. 
This company's cigars are already beooming favour- 
ably known here, through the agenoy of Messrs. 
Spiers and Pond and the different oo-operative stores. 
To the New London Borneo Company belongs the 
honour of having paid a dividend for 1893. The New 
Darvel Bay and the New London and Amsterdam 
Companies promise well. To make this information 
as complete and practical as possible we add a table 
showing the capital of the companies and present 
price of shares : — 
Company Capital issued 
Price 
Sumatra. £ 
British Deli and 
Lingkat ....134,263 
100,000 
50,000 
Nethorlands In- 
dia Sumatral23,000 
7,120 
2,000 
Sumatra To- 
b icco Plntns. 58,316 OrJiuary 
United Lan- 
kat Plntns. 206,325 
10,113 
£ 
Ordinary 1 3/6-4 6 
7 %Ourn. P.efs 1 
6 ,, Dbutrs. 100 80-90 
Ordinary 1 10/-11/ 
10 o/ 0 Curu.Prf 1 l-J 
Founders .... — — 
1 2/6-5/ nom 
Ordinary.. .. 1 11/-12/6 
10% Cum. Pre 1 1J-1J 
