844 • THE TROPICAL 
The present cultivated acreage is as follows: — 
Tea in bearing ... ... 4,9^3 
In partial bearing . . ... 348 
Not in bearing .. .. 545 
Cocoa .. .. .. 126 
Coffee .. .. .. 118 
Total cultivated area . . 6.070 acres. 
The past year, has been one of very severe trial 
to the tea enter prise in India and Ceylon. Prices fell 
towai ds the end of the year to a rate nnprecedented 
in the enterprise for all but the most flavonry teas 
which only two of the Company's estates produce. 
Hence in spite of the increased crop harvested the re- 
sult cannot but be considered a disappointment to 
ehareholders. In December the Chairman Mr James 
Sinclair, went out to Ceylon to visit the estates and 
has I'ust returned to England. He reports most 
favourably on the appearance and condition of the 
properties, which he considers compare well with other 
estates in the same districts. A fair and reasonable 
price for tea, is all that appears to be required 
to enable the company to make substantial profits. 
The Directors regret losing the services of Mr. A 
Melville White, who has acted as General Manager 
in Ceylon since the inception of the Company, through 
his retirement from the Colony, and they wish to 
record their appreciation of his services during his 
tenure of the office. 
Mr. F L Clements, a well-known planter of much 
experience, has been appointed to manage the 
Company's aflairs in Ceylon. 
As ■will bo seen by the Balance Sheet, your 
Directors liave waived their right, under Clause 94 
of the Articles of Associatiou, to a commisEion on 
the amount paid for Debenture Interest. 
Mr. J H Carson resigned his seat on the Board 
during the year owing to having taken up his 
reaidenre in Scotland, and his consequent inability 
to attend Board Meetings. The Directors do not 
propose filling the vacancy couaed by his retirement. 
Mr. T C Owen, the Director retiring by rotation, 
being eligible, offers himself for re-elsoiion. 
Messrs. Broads, Paterson & Co., the Auditors to 
the Company, retire, and, being eligible, offer 
themselves for re election. 
James Sinclair, Thomas J Lawrance ; Directors. 
Howe, White & Co., Secretaries. April, 23rd 1901. 
REPORT OF THE COMMITTEE. 
16, Philpot Lane, London, B.C., 18th April 1901. 
The Committee appointed by the Shareholders 
after several meetings and a long interview with the 
representative of the Vendor Company and subsequent 
meeting with the Board on various occasions, unani- 
mously arrived at the scheme set forth on the next 
page. 
As it was necessar-y for the consent to be obtained 
of all the Vendor Proprietors, Mr Sinclair when in 
Ceylon secured that ol most of those resident there, 
but others living in Englard ard holding a large in- 
terest declined to agree, consequemly the scheme could 
not be proceeded with. Mr Sinclair oniy returned at 
the end of March therefore there has been no time for 
the Committee to prepare any other scheme, but they 
are of opinion that some reduction and re-arrange- 
ment of Capital is necessary and if re-appointed would 
endeavour to arrive at one with the Directors and 
submit the same to the Shareholders at a meeting to 
be called for that purpose. 
The Committee wish to acknowledge that every assis- 
tance has been given to them by the Directors. — A 
Horatio Jones, J F Kimmel, W Murray. 
HEADS OF SCIIKME. 
The arrears of preference interest, due to 31st Dee- 
ember, 1,900, to be satisfied by an issue of "surplus 
certificateH " for the amount due. These to bear no 
interest, and to bo repayable out of surplus profits 
after provision for debenture intorest, depreciation 
AGRICULTURIST. [June 1. mi. 
(£2,000) and expenses and maximum interest in both 
classes of preference shares. All preference shares 
to be entitled to5 per cent interest instead of G per cent 
as from 1st January, 1901. The preference shares to 
be divided into two classes— namely, preference and 
deferred preference. The former to take the' place 
of those held by non-vendors, the latter of those held 
by vendors and sellers of the estates. 
The following represents approximately the liolders 
of Vendor and other Shares respectively. The figures 
might require a slight alteration on a careful scru- 
tiny:— 
Shares. i; 
Non-Vendors 11,841 59,205 to be 4 per cent Prefer- 
ence. 
Vendors 14,0/3 70,065 to be 4 per cent Defer 
red Preference 
25,854 129,270 
Thefirsfcchatge is a payment of 4 per cent on the prefer- 
ence, amounting to i'2,.368, which claim is cumulative 
against the deferred preference. After this, 4 per cent, 
or as much as is available to be paid on the 
£70,065 deferred preference shares, requiring £2,802. 
Should profits be available beyond this, dividends to 
be paid on both classes of shares pari passu until 
they receive a maximum of » per cent. These totals 
would come to substantially less than the present 
preference shares can claim, and thus the ordinary 
shareholders would be advantaged. Payments would 
then be as follows :— Debenture interest, £7,000 ; ex- 
penses, £1,200; depreciation, £2,000 ; 4 per cent on 
preference shares, ^2,368 ; 4 per cent on deferred 
preference, £2,802; and additional 1 per cent on 
both, £1,292, making £16,662. The ordinary share- 
holders are not to receive more than 6 per cent until 
the debentures are redeemed or re-arranged. No 
reserve or sinking fund must be created out of profits 
until 5 per cent dividend on both classes of pre- 
ference shares has been paid. The committee re 
comrnend that an additional director should be 
1 ppointed by the non-vendor shareholders at the next 
general meeting. 
THE AUGUSTA TEA KSTATES COxMPANY, 
LIMITED. 
FOURTH ANNUAL REPORT. 
The Directors beg to submit the Audited Accounts 
^r the year closing 31st December, 1900. The 
Profit and Loss Account shows a balance of £168 
23 od after paying fixed charges, and out of this 
amount the Preference Dividend has been paid. The 
low price at which tea has been selling during the 
twelve months has very much reduced the profit; 
at the same time the Directors are able to charge 
all Machinery and building expenses to revenue, 
and although nothing is written off for Depreciation 
this year, expenditure under these headinas has not 
been curtailed to the detriment of the Company's 
property, 
The quantity of tea manufactured has been 
152,607 lb., of which 121,764 lb. have been sold in 
London at an average price ef 5-78d per lb., and 
29,873 lb. in Colombo at an average of 26 18 cents 
per lb. 
The average sale price for the crop is eqaivalent 
to 5-68d per lb. London, against 7d per lb. the 
previous year. The average rate of Exchage has 
been Is 4 7-16d, and the cost of production 24-80 
cents, or 4d per lb. f. o. b. Colombo, inclusive of 
manure, costing 1-70 cents per lb. on the Com- 
pany's tea cri^v. 
By the Articles of Association, Mr. Charles A. 
Eeiss retires by rotation from the Board, and, being 
eligible, offers himself for re-election. 
The Auditors, Messrs. Singleton, Fabian & Co., 
also offer themselves for re-election. 
Charles A. Heiss, Thomas J. Lawrance, Directors. 
Albin B, Tomkins, Secretary 
London, 9th April, 1901, 
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