272 
THE TKOPICAL AGRICULTURIST. 
[Oct. 1, 1901. 
and think it; important that the shareholders 
should fully realise how much our four companies 
and other leading tea companies are affected by 
the recent legislation on the part ot the home 
and Indian Governments. You w ould notice from 
previous communications there were three factors 
which exerted prejudicial effects on the tea in- 
dustry : — 
(1) The action of the Indian Government in 
arbitrarily fixing exchange at Is 4d, for the rupee, 
irrespective of the rate that would be automa- 
tically fixed by the balance of trade. 
(2) The large production of low-class tea in 
India and Ceylon. 
(3) The increase of 50 per cent, by the home 
Government on the duty on tea. 
These conditions still prevail, and the position 
has been accentuated by an increased production 
of both Indian and Ceylon teas. 
While the scheme for restricting the production 
has fallen through, tosomeextent theobject will be 
accomplished in consequence of thefacl that a great 
many planters have resorted to finer plucking, 
which, combined with unfavourable weather at 
the start of the season in Assam, Sylhet, Cachar, 
Darjeeling and Dooar.«, will bring about a smaller 
out-turn than was anticipated some months ago. 
In view of the production being thus curtailed, 
markets will, no doubt, in course of time, improve, 
and better prices will be obtained for the produce. 
Meantime, the directors would advise the share- 
holders to rest assured that no efforts will be 
wanting on the part of the officers of the com- 
panies to do everything possible to strengthen 
their position and enable them satisfactorily to 
weather the storm. The companies' estates are in 
thorough order and well-supplied with labour and 
machinery, and will bear comparison with any 
estates in their respective districts. 
The teas produced have proved during the past 
year superior to, and in some cases far better than, 
other teas produced in the same districts, and the 
directors look forward with confidence to the result 
of the struggle in which these companies, in con- 
jnuction with all other tea companies, are engaged. 
The tendency of the extremely low prices now 
ruling will be to force tea in^o consumption in 
places where it would not otherwise reach, and, 
with this in view, the directors are doing their 
utmost to assist in introducing tea amongst the 
natives of India 
The directors are also doing their best to en- 
courage the consumption in other countries, and 
are specially engaged in endeavouring to find 
markets, for green tea, which, they think, can be 
manufactured on their estates to sell at a good profit. 
As the Companies produce a large quantity of 
common tea, the present rate of duty, namely, 6d 
per lb., represents a very heavy percentage of the 
average price obtained for the tea. 
The Chancellor of the Exchequer expected that 
the greater part of the increase of duty would be 
borne by the consumer, but in the case of Consoli- 
dated Tea and Lands Company, Ltd., the directors 
estimate that it suffers to the extent of l|d per 
lb, which means about £60,(00, and this added to 
the amount referred to in last report, arising from 
,los« from exchange, say, £22,677 represents ^82.677. 
The tea industry, like other businesses — such as 
coal, iron, cooper, cotton, tin, coffee, shipbuilding, 
&c.— will be subject to vicissitudes, and the 
directors hope that, just as these have had periods 
of depression followed by times of prosperity, the 
\fiO, industry will otqergQ from the clot^d which 
is overhanging it at present, and become again 
profitable as it has been in the past. We would 
remind you that the North and South Sylhet Tea 
Companies, which were merged in the Consolidated 
Tea and Lands Company, Ltd, had one of the 
highest records among goodidividend-paying Indian 
tea companies. From 1882 to 1886 inclusive, while 
the plants were young and yielding little or no 
leaf, no profits were made from the newly-planted 
estates, but out of the profits of the seasons 1887 
and 1888 the Companies paid to their shareholders 
compound interest at the rate of 5 per cent, per 
annum for the whole period of about five years 
during which the estates were practically non-pro- 
ductive, besides placing £16,000 to reserve account 
for depreciation. For the seven succeeding years— 
namely, from 1889 to 1895— in which latter year 
the properties were acquired by the Consolidated 
Company, sufficient profits were earned to pay an 
average dividend of 10 per cent, per annum on the 
capital paid up and to put aside £24,000 to reserve 
account for depreciation. 
The Chairman of these four Companies in con- 
junction with Mr Buchanan, Sir Robert D Moncreiff, 
Bart, Mr. A B Murray and Mr A M Brown— being 
five of the directors of the present Boards — were 
amongst those who formed and conducted these suc- 
cessful Sylhet Companies, and tbey continue to 
manage the Consolidated, Amalgamated, Kanan 
Devan and Anglo-American Companies on pre- 
cisely the same lines as were so successful in the 
case of the North and South Sylhet Tea Companies. 
An arrangement has been made whereby a con- 
siderable quantity of the Companies' produce 
will, in future, be shipped from Chiltagong to 
London, and it is expected that this will effect a 
substantial reduction in the cost of transit of tea 
from the estates to the London market. —We are, 
yours faithfully, James Finlay & Co., Secretaries. 
The first point that will probably |strike share 
holders is that in all this lengthy pronouncement 
there is no sound reason adduced why the reports 
and accounts should not have been produced long 
ago. Though the financial year ends on 30th 
November, it has generally been July] or August 
before any statements were issued, though they 
should have been out by April or May. No 
doubt some delay must arise through all four 
Companies being in one office, but a mere ad- 
justment of staff ought to prevent any congestion 
of business there. Now we are asked to believe 
that because Mr Buchanan is away in India we 
cannot have the reports and accounts, notwith- 
standing the fact that his presence in the East 
cannot possibly influence events and finances that 
relate to a period months prior to his departure 
from Great Britain. When Sir John Muir and 
his colleagues put forward shallow reasons like 
this for not fulfilling one of the elementary duties 
of Directors to their shareholders, the public are 
apt to place a construction on such action that 
is by no means favourable to the position and 
prospects of the Companies. In the long review 
of the situation which is advanced as a substitute 
for a legitimate narrative of operations, there is 
nothing that can be held to affect the Muir un- 
dertakings worse than any others, and if there is 
a good excuse why these Muir undertakings 
should not reveal their trading position it must 
be an excuse that applies equally to all. Since 
other companies have published their reports, 
though in the case of most the financial ye&r 
encle on 3l8t December and not on SQtb Ifoy«n< 
