Feb. 1, 1899.1 
THE TROPICAL AGRICULTURIST. 
535 
and 10 per cent on £51,000 oicliuary bhares. 
Moreover, " a considerable increase of pvofit on 
the above estimate may be expected in the 
future as the young tea and coffee come into bear- 
ing," and the planting up of the available land will 
also be proceeded with as the directors deem advis- 
able." The vendor of the estates was Mr. Theodore 
Ford, and the price to be paid for them was £169,000, 
in shares. 
The prospectus went on to show that the consump- 
tion of CeyioD tea in the United Kingdom had gone 
up greatly of late years, and that a, further increase 
in the demand for the tea lor the Russian, German 
and Airerican markets whs probable. Then a table 
was appended in support of the directors' ramark that 
" investments in Ceylon tea companies are now much 
sought after owing to the satisfactory dividends paid 
and the high premiums at which many of the shares 
stand." Six Ceyljn companies were named, and it was 
shown that their £10 paid-up shares were worth, at the 
date of the issue of the prospectus, £29 lOs, £20, £13, 
£21, £25 and £23 respectively, and that the dividends 
for 'l896 were 15, 15, 17, 17i 18 and 15 per cent. And 
the name of a seventh company was added, whose £3 
share was worth £8 and whose 189(5 dividend was at 
the comfortable rate of 20 per cent. 
Now, compare the above figures and statements with 
those contained in the very brief repoit of the directors 
for 1897-98, the first year ff the corporation's existence. 
The directors say that they " regret " that the results 
shown in the accounts " are not satisfactory." They 
attribute this to ihe depression in the tea industry 
generally, the rise in exchange, the increased cost 
of rice, the high freights and low prices. Then, owing 
to some legal technicalities in Ceylon, the directors 
were not able, they say, to have the estates conveyed 
to them and brought under their own control until the 
end of 1897, " consequently for the half of the year 
under review tlie original owners managed the pro- 
perties on account of the company, and the result 
showed, when their accounts were presented, a con- 
siderable loss on the working." But when at length 
the directors gained possession of the estates their 
manager succeeded in reducing the f.o.b. cost of the tea 
produced from 12 05 to 25 96 cents. The crop for the 
first six months— or duiiug the period when the estates 
were not under the control of the directors— fell short 
of the estiiua'.e, but that for the second six months was 
better, and the yield for the twelve months conse- 
quently amounted to 1,112,UU0 lb. 
But, strange to add, tho working of the estates shows 
a profit of no more than a paltry f 1,701, after wiping 
off the loss of the first six months, and charging the 
whole of the Ceylon expenses. This is bad enough, 
but woise remains, for -'after charging London ex- 
penses and debentureinterest there is a loss of £1,620. 
The funds are not forthcoming, therefore, to pay any 
interest on the cumulitive preference shares, and tha 
liability for lb97-98 on account of that interest has to 
be carried forwaid: while, of course, there is not a 
penny for the holders of the ordinary shares to bleaa 
themselves whithal. 
All this means lhat the shareholders have a bitter 
pill to swallow. The directors might have assisted 
Its deglutition, and have atoned at the same time 
for the ineagr>ines3 of their Rtalement, if they had 
issued a report in some detail by the manager ex- 
planatory ot the position and prospects of the estates. 
But, as to prospects, they deem it sufficient to say 
thai the manager's estimates "are encouraging, and 
that thi-y " have sent instructions for operations to 
be energetically continued" in prospecting for— 
plumbiigo 1 Th.'V have reduced their fees, which la 
to their credit luulcr the circumstances, but those 
fees, with the accountant's charges, amounted as it 
was to £1,081, and nothing is said about the agents 
commission. Their balance-sheet is more condensed 
than instrucliv.', a.i though directors arc not under 
an obligation to miticipato and meet the ahareholders_ 
want of full iiiloimalioii. No statutory meeting of 
tho corporation was held, and tho opportunity ..Uoidod 
by such a nu'cting to acquaint Kli.irehoklers wi^th 
tlie amount of capital subscribed and the outlook, .f 
their investment was neglected. But an extra ordi- 
nary general meeting was held on 13th December, 
or nearly six months after the corporation was 
established, to effect some alterations in the articles 
of association, in compliance with the I'equiremcnta of 
the Stock Exchange before a quotation of the 
shares would be allowed. At that meeting 
it, was resolved that " the qualification of a 
director shall be the holding of shares of the 
company of the nominal amount of £500." It 
might be interesting to the shareholders to learn the 
amount of the holdings of the commercial agents 
and iheir colleagues in the management. The so- 
called " second annual general meeting of share- 
holders," which is, however, the first meeting of tha 
description, has been convened for Wednesday, and 
it is to be held not under the roof of the agents, 
as the exra-ordinary meeting was — where adverse 
criticism would sepni like a breach of etiquette — but 
in the neutral atmosphere of Winchester House. The 
directois owe it to themselves, to the agents (one 
of whose partners i-s M.P. for tlie City of London), 
and the shareholders generally to refrain from adopt- 
ing an air of haughty reserve, while the shareholders 
will be well advised, in the presence of the grave 
position revealed by the Board's report, if they ap- 
point a committee of independent shareholders lo 
investigate the genesis and outlook of what has al- 
aeady proved to bo their over-capitalised and most 
unfortunate concern. This may 'lie resented in some 
quarters, but it is about time that their responsi- 
bility should be brought home to persons — no mat- 
ter what their position in the City may be — who 
provoke such a comparison between promise and 
performance as I have ventured to make. 
To all and sundry, therefore, who are thinking 
of investing hard-earned savings in new tea com- 
panies it will be a kindness to offer "Punch's" 
memorable advice to those about to marry — namely, 
'•Don't." — I am, &c., 
Chakles Lawson. 
15, Evelvn-gardens, S.W., 
5th Eec, 1898, 
CEYLON TEA IN MINCING LANE. 
Under the heading ot Bedford news, a well- 
known Ceylon projirietor, now at home, jocu- 
larly ;i«k-< the question as to whether Ceylon 
teas could not be offered in Mincinj"; Lane at a 
fixed upset price, in order to check the effect 
of combination and secure fair play. Tliat sonie- 
thing will have to be done may be judged from 
tiie remark of anotlier proprietor with very wide 
and varied experience, who also writes by this 
mail as follows: — "The combined purchasing 
interests at liome keep down our prices, althouoh 
tlie shipment to other countries has taken so 
many million II/. that London sliipmeiits have 
decreased. These big blenders cannot now get 
enough of our cheap teas, i.e., low grades whicii 
other countries take. Large profits they must 
have to earn divideiids on their over-capitalized 
Companies. They are thetefore lowering the 
prices of the liner teas." This is a nice result 
of "plucking liner," if result it be; but surely 
there is no lack of low-grade teas from the 
lowconiitry ilistricts ; and how can blenders altonl 
to give more than a certain ([uantitj' of tine 
teas and so raise their blend.s to a quality which 
they may not be able to maintain '! 
Negroes and Pets,— It was noted by SirSamuel 
Baker that a negro has never been known to tame 
an elephant or any wild animal. A person miylit 
travel all over Africa and never see a wild 
creature trained and petted. It often struck Sir 
Samuel that the little negro children never liad 
a pet-animal. 
