Dec. 1, 1903.] 
THE TROPICAL AGRICULTURIST. 
387 
KUBBER PROSPECTS IN CEYLON. 
CAUSE FOR OPTIMISM. 
The pessimistic comparison by a planting 
correspDndent recently of the future career 
of rubber to the ambitious but short lived 
flight ol a I'ockec suggests to us a few re- 
fl-^ctions upon this niuch-discussed industry. 
Viewing the question dispassionately, no 
critic, with much knowledge of the subject, 
could subscribe to such a forecast as the 
above, which is entirely unsupported by facts ; 
nor was it such sentiments as these which 
assisted in building up the previous great 
planting industries of Ceylon. On the con- 
trary, we venture to state that the new 
industry starts under the most auspicious 
circumstances, and with a minimum of risk. 
^As always occurs when "novae res" are 
being canvassed, extreme views are expressed 
on every side, and it is amusing to hear on 
tlie one hand pessimists describing rubber- 
Elanting as about on a par with gold or plum 
ago mining, whilst on the other the optimistic 
section already sees itself rich beyond the 
dreams of avarice. The truth lies, as usual, 
midway. The man, who wants to amass 
riches in a hurry, had best avoid rubber ; 
nor is this genus uncommon in Ceylon. But 
the pioneer of rubber in Ceylon, who can 
imitate tiie patience, perseverance and stoli- 
dity of his prototypes in the coffee and tea 
industries, can lay claim to even greater 
prospects of ultimate success. The only 
objection one meets with, is the length of 
time Para Rubber takes to come to maturity ; 
but, on the other hand, we say confidently 
that the auspices under which this industry 
starts are, as far as Ceylon is concerned, most 
flattering. The markets throughout the world 
are exceedingly steady, and the demand, if 
all reports that reach us be true, is on 
the increase. A substitute, it is true, 
for rubber, is const.intly talked of, but, as 
in the case of plumbigo, has yet to come 
within the range of practical politics. Again, 
its opponents argue that rubber will never 
make its permanent home in Ceylon ; yet 
experts, of whom Ceylon contains but a few, 
are of an entirely opposite opinion, and their 
view is supported by the beautiful growths 
which may be seen in various low-country 
districts— notably those of Kahitara, where 
Arapolakande, CuUoden, Neboda and other 
estates cannot but satisfy the veriest sceptic 
If a proof were needed that the Ceylon 
public pins its faith to Para Rubber, it is 
furnished by the avidity with which a recent 
flotation of a foreign Company was taken 
up. We understand that the tSeremban Estate 
Company, Limited, was not only over-sub 
scribed, but the shares, even before allot 
ment, are at a substantial premium and the 
fortunate allottees appear likely to soon find 
themselves on velvet. There are various 
other yyndicates and small private Com- 
panics on the tapis locally, some with the 
Malay Peninsula in view, and others with 
Ceylon as tlieir field of enterprise. The 
Ceylon Rubber Company is, we believe, 
floated, and yet another .and more ambitious 
concern is the Southern Ceylon;;jRubber 
Companv, Limited. The venue of this, latter 
concerQ bears an iil-oraened name, Udugama ; 
but this, we believe, is the only unsatis- 
factory feature about it, and that a senti- 
mental one. The report of Mr. R, W. Harri- 
son, probably one of the best informed of 
cur local Rubber Experts, states that f. very 
liirge extent of the reserve land is suitable for 
the cultivation of this product, and the trees 
already planted and approaching maturity 
he regards as favourable in growth as I hose 
of otlier districts. Referring to the pros- 
pectus itself, we find that the purchase price, 
which the vendor asks, is R290,000 or about 
R20,000 more than he piid for it— not ex. 
orbitant, we consider, in view of expenses 
incurred in the actual acquisition of the pro- 
perty. It is not clear from the document 
before us whether the vendor insists on a 
cash payment or whether he is willing to 
accept part-payment in shares. On enquiry, 
however, we near that a considerable por 
tion of this sum of R290,000 will be repre- 
sented by shares, some taken up by the 
vendor himself and some by the Debenture 
Holders in the original Udugama Company. 
It will be useful to enquire wliat the posi- 
tion of this Company will be, say, in six 
years— 1910 — if the anticipations sketched in 
the Prospectus prove correct. By that time 
the property of the Company of a productive 
nature will consist of 1,500 acres Para Rubber 
beside tea and minor products, which for 
the purposes of this sketch, we do not take 
into account. The estimated harvest is, at 
that age, 3.5 lb. per acre, or, say, 52 500 lb. 
for 1910, which, at a profit of RrSO per 
lb., would give R78,75iJ nott to present to 
its shareholders. After the sixth year, the 
amount of rubber, which it is possible to 
harvest, increases far more rapidly each year 
and naturally the profits increase pro 
portionately. In the tenth year, Ceylon 
rubbers are admitted to produce 2 lb. per 
tree ; but even allowing for a return of, say, 
1^ lb. rubber per tree, this would work 
out at a return of 150 lb. per acre or at Rl'25 
per lb. profit, R225 per acre, equal to 
R337,500 or rather more than 50 per cent on 
the share capital of the Company. 
The mistake, which the Directors make, 
in our opinion, is that of not providing for 
more capital at this ifiitial stage — but we 
can appreciate their difficulty here — because 
the only way to ovjrcome it would be the 
issue of part-paid shares and we know how 
unpopular this method of finance is in 
Ceylon. On the other hand from what we 
hear hinted, the Directors might have con- 
fidently asked for more capital. For it is 
understood, that R200,000 is likely to be 
subscribed in Australia, which added to the 
R150,000 already subscribed, leaves only 
RlUO,000 available for subscription in London 
and (>eylon. Surely twice this sum might 
1)8 safely reckoned upon ? As we pointed out 
before, the only point against this concern 
is the length of time required for the 
realisation of a profitable return, but the 
prospective proofits nf ter 6 years, if realised, 
far more than make up for the loss of 
interest on the Capital invested during the 
youth of the Company. This long wait is 
nevit.-ible in every concern of a similar 
nature— a condition familiar to the Ceylon 
public. 
