t)EC. 1, 1898.] THE TROPICAL AGRICULTURIST. 
413 
as read. Before I proceed to move the resolutions 
necessary to give effect to the recommendations 
of the General Managers, I Ihink you would 
like me to say a few words as to the position 
and prospects of the Company. I need not tell 
yoa how greatly we regi-et the necessity for so 
serious a reduction in the dividend, but that has been 
so fully explained in the report that I need hardly 
go over the ground again. With rrferenca to the 
statement made in the report that the drought ex- 
perienced from January to March is unusual, I may 
say that in all our experience of Ceylon tea-growing 
we have only once before known the flushing of the 
tea so seriously interfered with as it was last year 
— viz., in the year 1893, when there was a decided 
deficiency of rain and a considerable shortage of 
crop ; and, further, I may remind you that we are 
now commencing the eighth year of the eompanyis' 
existence, and never, except in the year referred to, 
have the crops fallen short of the estimates, so 
that it does seem, humanly speaking, very impro- 
bable that we shall have again to deplore a serious 
shortfall during the current year. The estimates for 
next season have been carefully prepared, and I think we 
may hope that the crop will be fully up to them. 
1 believe, in fact, that if the weather is normal 
they may be exceeded, but at least they will come 
up to the mark. I'may mention that we have weekly 
returns from each of the company's estates of made 
tea, and that so far these returns from the com- 
mencement of the crop year, viz., July 1 to the date 
of our last advices from Ceylon, are well up to the 
estimates, and are considerably in excess of the re- 
turns for the same period last year. If yovi will 
refer to the report you will see that while the 
estimated expenditure for the new year is very little 
in excess of the year just closed, viz., K395, 469, against 
Pv393,070, the estimated crop is larger by nearly 
150,000 lb. than that of last year, which at 6jd a 
pound would amount to something like £4,000, or 10 
per cent on the ordinary share capital. But, of 
course, that depends upon the prices realised, and 
it would be ridiculous for me to attempt to pre- 
dict how the market will go. However, the price 
of Oeylon tea is so low that any further- fall 
does not seem probable, more especially as 
the consumption seems to be ovei-taking the piodnc- 
tion, and if the Chancellor of the Exchequer could 
be induced to decrease the duty on tea next year it 
will naturally tend to improve the consumption. L^ist 
year he hesitated between tea and tobacco, but even- 
tually decided iu favour of tobacco, and we must 
hopa our turn will come next year. A third factor, 
ana a most important one in regard to the profits 
of the conipnny. is that of the Indian exchange. That 
is a matter which would take me not live minutes 
but five weeks to explain, so I will not attempt to 
do it. At our meeting last year I expressed a hope 
that we should see a fall in exchange, and for a 
time that hope was realised, so that at one period 
forward exchange could have been fi.xed at Is 3d per 
rupee, but owing to various reasons it again 
hardened, gradually rising to Is 4d, at or near 
which it has since remained. At present I fear 
there is not much hope of any reduction 
in the near future, for the oflicials in the Indian 
Government are so strongly committed to the main- 
tenance of a high exchange and the control they 
exercise over the currency is so powerful that for a 
time at least they will be able to keep the rate of 
exchange up to Is 4d, or near it, although, speaking 
for myself, I believe that in so doing they are in- 
juring materially the welfare of the country. How- 
ever, if any of you wish to study the subject for 
yourselves you cannot do better than lay out the 
modest sum of 23 8d in the purchase of the Blue 
Books published a few weeks ago, giving the minutes 
of the evidence tnken so far before the Indian Cur- 
rency Committee, which is thoroughly examining the 
subject. As regards the condition ol the rst;ii os, which 
of course, is a very important matter, I think I cunuot 
do better than read you some extracts of the letters 
recently received from our Ceylon agents, Messrs. 
Geo, Steuarfc and Co. Tho first extract ia as 
follows: — ''We may add that everything neces- 
sary to maintain the condition of the estates 
has been done. They have been liberally manured 
and well cared for generally, and so far as the cur- 
rent season's prospects depend on circumstances in 
any way under control they seem no less satisfac- 
tory than they have ever been." This is a short 
extract, but it is all very much to the point and 
very satisfactory, the more so because our visitinc 
agents' reports are in a similar strain, and wha"? 
they say may be thoroughly depended upon. The 
second extract is from an earlier letter, and refers 
specially to Tallagala and Sorana. It reads as fol- 
lov/3 :—" After a bad yeuir such as we have just had 
it is encouraging to kaow that the tea promises well 
for the current season, and having regard to the 
fact that in the case of Talagalla there is a 
good deal of younger tea coming into bearing we 
trust it may be found that the crop there has 
been rather understated. On Sorana the bushes have 
not yet had time to show the benefit they are 
deriving from careful treatment, and no doubt we 
shall see a marked improvement in the yield when 
the coconut and shade trees here have been removed 
and the manure applied. Both estates seem to be 
reaping all the advantages of careful management 
and the planting of the new clearing on Sorana 
having been done iu good time, a successful result 
may be confidently looked for. The planting of 
Para rubber is contemplated on both estates, and 
from all we can gather the soil and clifnate should 
be well suited to the cultivation of this tree. We 
also understand that the well-being of the tea need 
not be interfered with if the trees are planted at 
wide distances apart." 1 do not think, gentlemen 
have anything further to say iu regard to the 
report or the position of the company and its 
estates, but I should like to add a word of explana- 
tion as to the accounts. One of our shareholders has 
written to say that there are two items iu the 
accounts he cannot understand, and if they have 
puzzled him, it may well be that they have puzzled 
other shareholders. The items in question are both 
deductions from the factory and extension account. 
The first is the item, " Charged to ' Sorana,' £1 175 
83 8d." If you will refer to the report you will see it 
explained that the general managers have decided to 
charge thef Sorana purchase account with two-thirds 
of the capital expenditure on this estate, and the 
item in question is that two-thirds. Originally the 
whole of this expenditure was charged to the factory 
extension account, and therefore the two-thirds 
referred to had to be transferred out of that account 
and in the summary of accounts take the form of a 
deduction. The second item which the shareholder 
could not understand was the deduction of £3,000 for 
balance of the 1898 issue. This seems simple enough. 
The 1898 issue was £21,0U0, the cost of the Sorana 
estate was £18,000, and consequently the balance was 
£3,000, which was placed to the credit of the factory 
extension account, and therefore was dedncted from 
the expenditure on that account, as specially pro- 
vided when the issue was made. I think that is 
all I have to say, and unless any shareholder wishes 
to ask any question I will proceed to move the 
following resolution : — " That the seventh annual 
report of the general managers, together with the 
annexed statement of accounts, duly audited, be now 
received, approved, and adapted." 
The resolution was seconded by Mr. Charles 
G. Arbuthnot and carried unanimously. 
The Chairman then pro])osed, " That balance 
dividends of 4 per cent, on the old preferred shares, 
and half-year's dividend of 4 per cent, on the new 
preferred shares (less income tax), also 2 per cent, 
on the old ordinary and 1 per cent, on tho now 
ordinary shares (free of income tax) be and hereby 
are declared payable this day" 
The resolution was seconded by Mr. H R 
Arbuthnot and carried unanim.uisly. 
The (Jhairman proposed, '' That thui'o be set aside 
a sum of £2,060 in terms of the articles of association 
for the redemption of 5 per cent, of the outstanding 
debentures at £103."' 
