July ], 1898.] THE TROPICAL AGRICULTURIST. 
sliall all do everything that we can to keep down 
the uosc. We must leally try to work up the 
coolie ti) the point of giving a day's wo; k for 
a day's pay, and we iim^t ako see that liispay 
does not get too liigli. I hope all the Ceyiori Com- 
panies will exert themselves to reduce expendi- 
ture, while at th ; sauie time taking care not to 
interfere widi efficiency. Jyabour is now, I be- 
lieve, more plentiful in Ceyio;i ; if exchange keeps 
as high as it lias ijeen ;uid the prices on the 
London market continue to rule law, there is a 
fear tiiat labour many become too plentiful, for 
there are many estates that cariiiot keep on much 
longer under ibj present condition of things, in 
the past year our Company has had to increase 
its expenses, but we sliail now try to keep 
them dow n. The directors of tliis Company pro- 
pose that iiol!ii!ig shall be written oft' this year 
for depieciatioii. Our capital outlay, as you will 
see in llie i-eport, h;is been very small, and we 
do not think it is necessary to write anything 
off. Our reserve is, we consider, a very fair per- 
centage on the capital for the present, and so we 
do not propose to aihi anything to our reserve 
fund this year. Now as to our prospects. Mr. 
Kerr has sent us his estimates, wliicb are, as 
usual, very carefully pi'epared, and he tell ns that 
he considers theiii to be very safe estimates indeed. 
To make them sti 1 safer we have gone into the 
figures very fully oo this side, and have cut them 
down considerably. We have reckoned that tea 
will be at the prices i5 fetched last year, and 
have taken exchange at Is 4d ; and working out 
our ligures on their basis, and putting down that 
the crops to be harvested, according to our esti- 
mates, — will be harvested — and 1 n;aysay that Mr. 
Kerr is always safe in this respect— our pros- 
pects are considerably safer for tliis year 
than they were in the i)ast year. Tea, 
from all I can hear from men who ought to know, 
has reached its bottom price in London (hear, 
hear). You will, I think, consiler that our Com- 
pany is in a very safe position, and the oest 
proof of this is that after passing througli a very 
bad year we are still able to \my 10 per cent ; 
and this, I should say, ought to give confidence 
to the public (applause). 
Mr. Todd :— A shareholder, Mr. A. L- Cross, 
who is unable to be 'present today, has written 
me a letter whicli I should like to read to this 
meeting, Wr. Chairman, as it may be expressing 
the views of other shareholders. 
The CnAii!:.i.\N : — Certainly, we shall be very 
glad to hear it. 
Mr. Todd:— ,Mr. Cross writes:—"! think the 
Directors of the Company might easily have main- 
tained the dividend at la per cent for 1897. It 
would only have necessitated taking some £400 
from reserve, and as the object of this sort of 
fund sliouhl be to enable CompanieB to equalise 
dividends it could have done no harm, as next 
year the amount might juobably have been le- 
placed, and if there was then no improvement in 
the situation in Ceylon from the action of the 
Indian Government they (the directors) would 
have been able to covue before the shareholders 
with a better case for lowering the dividend ; 
whereas this drop of 5 per cent — it appears to me, 
wholly unnecessary — will be sure to cause the 
shares to drop and to be injured in the eyes 
of the public. In any case, they could surely 
have given us l.> per cent and then have carried 
forward a balance of £131 to next year. Why 
reduce the dividend so suddenly with a consider- 
able reserve, and keep back £9j1 from the 
shareholders ? I certainly would have pointed 
these things out had I been able to at- 
tend the meeting." Mr. Todd added : " I 
thought periiaps the Chairman might have anti- 
cipated the feeling which I think is well put in 
the letter, and which 1 daresay is in the minds 
of many of the shareliohlers." 
The Chaikman :— I do not know that I have 
any reply to that, except to say that I am my- 
selt the chief sufferer. (Laughter.) What 'is 
carried forward is, surely, not a loss to the share- 
holders. It remains with them, and they may 
be very glad to have it next year. (Hear, hear ) 
Mr. G. G. ANDERSON: — I should have thought 
that taking money from reserve would have had 
the effect of dep! eclating the value of the shares 
more. (Hear, hear.) 
Mr. ToDD:-I hardly think that. The reserve 
fund is undoubtedly large, is it not? 
The Chairman :- I don't think it is lar-^e 
enough, and I should like to add anotlier 
£l,OuOtoit. (Hear, hear.) The larger our reserve 
fund the greater the value of the shares, 1 think 
Mr. Todd : -For my own part I do not, of 
course, move to amend what is being done. But 
perhaps we might have had 12 percent 
Mr. G. W. Pain;.::-I think the directors are 
doing quite right in paying tiie smaller dividend 
anil thus taking the bull by the horns. I quite 
agree with their policy. Perhaps the writer of 
that letter is not a shareholder in other 
Companies, or he would have known that this 
course has been followe 1 in the case of m )st of 
them. (Hear, hear.) 
The Chairji.vn : -[ value Mr. Cross's opinion- 
I know lam well. But, . f cour.se, we stick to 
our report, because we think it is best for every- 
one concerned. ^ 
Mr. R. W. Forbes (Director) :_Il is always a 
pity to touch the reserve fund if we can but pay a 
fair dividend without it. Best let the reserve 
fund stand. But it unfonunately next year the 
same condition of things prevails the tUrectors 
m.ay, of course, have to consider the suf^estion 
Mr. Todd :— The fear is that it will brnu' down 
the value of the shares. ° 
The Chairman :— That is Mr. Cross s idea I 
see, but I think that to do as he .say would 
show, not strength, but weakness. 
Mr. DoDDS:-! would rather liave had S per 
cent. I prefer to add to the reserve and pay a 
smaller dividend. (Laughter.) ' 
Mr. R. W. FuRijEs :-That was really one 
point that the directors did consider. At any 
rate, we thought it a pity to break up the 
reserve fund. 
'■The Chairman :-Mr. Cross thinks we out^ht 
to have paid more ; Mr. Dodds thinks we ouf^ht") 
have jiaid less; Mr. Paine thinks we have'^done 
quite right. (Laughter.) I will now formally 
move: "That the report and accounts as now 
submitted be adopted, and that a final dividend 
of 0 per cent be paid, free of income tax on 
and after this date." ' 
Mr. R. W. Forises seconded the motion, and 
It was earned unanimously. 
Mr. G. G. Anderson :— I have pleasure in 
proposing that Mr. K. \V. Forbes be re-elected 
a director of the Company. Mr. Forbes has 
been a director since the inauguration of the 
Company, and that I think is suilicient induce- 
ment to us to re-elect him. The Company's past 
record has been exceptionally trood, and tlie 
future record, I hope, will be w'ell 'worthy of 
it (hear, hear.) ^ 
