July 1, 1901.] 
THE TROPICAL AGRICULTURIST. 
4S 
tropical ; possesses vast forests and tracts of 
arable and pastoral land, mines of every known 
metal, extensive vineyards and productive oil 
wells. The present population is 129, 211, 213, 
the foreign trade in 1899 vvas £1,399,000. But 
Kussi.i, with resources developed, could easily 
support three times her preseat population and inde- 
finitely extend her trade. In that trade Ceylon 
wishes to take a substantial share and towards 
a ttaining that object one step will be setting the 
hest possible representation at the forthcoming 
British Exhibition in St. Petersburg. 
CEYLON TEA COMPANIES' RESULTS. 
The disastrous efifects ot over-production are 
very evident in the reports of the Ceylon Tea Com- 
panies, most of which, dealing with last year's 
results, are now to hand. Indeed, 1900 may be 
Baid to have marked the floodtide of over-produc- 
tion to date, and as the year advanced the effect 
on prices grew more and more serious, until in 
the autumn, and especially at the turn of the 
twelve months, the depreciation in values became 
very severe. The fall in prices more particularly 
affected the cheaper classes of tea, the highest 
grades, indeed, holding their own fairly well. In 
addition to the over-production evil, the trade 
was hampered by the increased duty of 2d per lb 
and by the heavy anticipatory clearances which 
were made both in respect of the 1900 and 1901 Bud- 
gets, so that the market during a twelvemonth 
or longer was kept more or less in a state of dis- 
organisation, which interfered with a correct 
appreciation of the relations of supply and demand. 
As regards the Ceylon companies, the main 
point, "however, which is brought out by an 
inspection of their reports is that the high- 
class producers and those which have taken 
care to fortify their position and maintain their 
finances on a sound basis have not suffered 
severely so far as their dividend distributions 
are concerned. A glance at the following list 
will substantiate this statement, the chief suf- 
ferers in these, as in other cases, being, as will 
be seen, the producers of lower-grade teas :— 
Appropria- 
Net Profit. tions for Be 
serve and Divi- 
Oompany. Depreciation. dend. 
1899 
Ceylon Tea & 
Plantations 43,664 
Eastern Pro- 
dace and 
Estates 
Standard 
Tea 
1990 1899 
£ £ 
41,010 10,000 
1900 
£ 
10,000 
Nuwara 
Eliya 
Scottish 
Ceylon 
Alliance 
Tatiyan- 
tota 
.28,615 
.10,780 
17,290 
6,960 
7,900 
15,790 
12,148 
18,263 
5,318 
4,660 
nil nil 
1,700 
2,300 
1,400 
1,000 
2,800 
2,963 
638 
1,000 
7 3i 
15 15 
12 
10 
7 
.12,120 6,753 1,000 1,000 
The hrst company in our table, the 
CKYLON TEA PLANTATIONS, 
shows only a slight diminution in net pro- 
fits as against the preceding year, and it 
has been able to maintain its dividend at the usual 
rate of 15 per cent, although this time the 3 per cent-, 
bonus which was distributed on account of 1899 
is not forthcoming. The Company, however, appro. 
* Including bonus of three per cent. 
priates £10,000 for depreciation, and as it possesses a 
reserve fund of £100,000, which is partly invested 
in coco-nut plantations, thus giving it a ■recond 
string to its bow, it occupies a very strong pusition, 
and may be fairly expected to maintain its ground. 
The Eastern Produce and Estates Company, 
which comes next on our table, makes', unfor- 
tunately, a very different showing. The Com- 
pany grows only medium, and in soniie parts 
indifferent teas, and it is handicapped by be- 
ing obliged to redeem every year £7,500 of 
Debentures until the latter have been re- 
duced to £50,000, an event which should take 
])lace in 1905. The fall in the price of cheap 
teas has, naturally, afl'ected this Company severely, 
compelling a reduction in the dividend from 7 to 
3J per cent. It may be mentioned that an interim 
distribution of 2\ per cent, was made in the 
autumn, so that the Company appears to have 
been exceptionally hard hit by the break in prices 
which took place at the end of the season. It is 
probable that, so long as the undertaking is saddled 
with the heavy annual charge for debenture 
redemption, it will have rather difficult times to 
contend against. A strong contrast to the Eastern 
Produce Estates, and one well calculated to 
illustrate the differences whichexistin this class of 
company, is presented by the Standard Tea 
Company, which, in a confessedly bad year, 
actually exhibits an increase of profits. The 
explanation is that the Company is a producer 
of high-class teas, and that it possesses a new 
acreage now coming into the yielding stage — 
a rather rare circumstance of Ceylon. It is con- 
sequently able not only to maintain its dividend at 
15 per cent, but to increase its appropriation to 
reserves and depreciation. A point in favour of 
this Company is its small capital, but the fact 
that the shares most freely dealt in are only partly 
paid, having a liability of £4, will operate as a 
deterrent to some people. The NuwARA Eliya has 
also enjoyed a very successful year, its prosperity 
being due to practically the same causes as those 
which we have just examined in the case of the 
Standard. Its estates, which are situated in the 
Highlands of Ceylon, produce first-class teas, and it 
also possesses some acreage of young plants 
which have just reached the beai'ing stage. 
Its profits, as will be observed, show a fair 
advance over those of 1899, and it has not only 
succeeded in maintaining its dividend, but also in 
strengthening its financial position. The quality 
of this Company's teas and the excellence of its 
grounds will probably enable it to stand out from 
the ruck both in good times and bad. A more in- 
different though by no means a bad showing is 
made by the Scottish Ceylon. This Company 
possesses a good middle-class garden, somewhat on 
the same lines as that of the well-known Ceylon 
Tea Plantations, and it has achieved very similar 
results during the past year. Its profits have 
fallen below those of 1899 and it has in conse- 
quence to reduce its dividend by 2 per cent., but it 
still maintains its distribution at the previously 
usual rate of 10 per cent. It maybe remarked 
here that the shares of this Company are well 
held and are rarely negotiated. A heavy fall in 
profits has marked the operations of the Alliance, 
and although it still distributes 7 per cent, divi- 
dend, against 8 per cent for the previous year, it 
has been obliged to reduce its carry-forward by 
nearly £1,000. This Company is not particularly 
strong in the matter of reserves, and under the 
circumstances it might well have been a more 
