TROPICAL AGRICULTURIST. 
[I>EO. 2, 1901. 
Oq the 22ncl July last an Interim Dividend of 
7i per cent on the Ordinary Shares mid 3 per cent 
on the Preference Shares was paid, and yonr 
Directors now propose to pay on the 14th ui'.y u£ 
December 1901, the balance of the fixed Oomulative 
Dividend on tlie Preference Shares (3 per cent) 
making 6 per cent for the year, 7J per cent on the 
Ordinary Sbarea makiog 15 per cent for the year, 
ali free of Income Tax. It is also proposed to set 
aside the sum of illOO as a provision for possible 
losses on Coast Advance Account, and carry forvfard- 
the balance of £1,172 12s 6d subject to the "Directors' 
remuneration for the year under review and to the 
payment of Income Tax, &o. 
A sum of i;l,693 17s 6d spent upon permanent im- 
provements during the year has been debited to 
Bevenue. 
In accordance with a resolution of the Board, a call 
of 10s. per share was made upon all the members, 
holding preference shares upon which only £4 hatt been 
pai.l, and the same was payable on the 1st July last. 
Tour Directors take this opportunity of pointing out 
that the security of the debenture-holders is ther-^by 
increased, as the borrowing powers of the Board on 
debenture are restricted to the amount of the subs- 
cribed but uncalled share capital at the time of 
such borrowing. 
Your Directors have to report that the total crop of 
tea from the Company's estates for the year fell short 
of the estimates by 2a,462 lb., but on the ether hand, 
there were increases of 79,107 lb. made from purchased 
leaf, and of 138,935 lb, made for others, the total excess 
amountinjf to 189,640 lb. It is regrettable, however, 
tKat the net average price secured has fallen from 
6*21d to 5'28d per lb; during the currencv of the season 
the mean rate of exchange has receded from Is 4il to 
Is 43-83, whilst freights h ve Iso shown a lower ten- 
dency as compared with thfl pievious financial year. 
Your Board specially wish to inform the members 
that no expense has been spared to bring the Com- 
pany's estates into the best possible state of cultivation 
even in face of tha low prices that have prevailed : 
not only has extensive manuring been done, but in 
every case where tea bushes were cut down they were 
lightly plucked for six mouths, and in consequence, the 
Company's Manager in Ceylon reports that each 
estate shows improvement in the cover of tea. 
Your Directors are of opinion that the important 
work of manuring should be continued judiciously 
year by year, uot in order to increase the yield, but 
principally to give nourishment to the bushes and 
keep up their strength and viijour, with the result 
that thoy will be better able to resist blight, which 
has not baeii at all prevalent during the past vear. 
A tot.il sum of E31,3.50 (£2,138 193 8d) has been 
expended on mmuring Tea and Cocoa during the 
season, the whole of which has been debited to 
Revenue account. 
The cocoa crop totalled 2,378 cwt, against an esti- 
mate of 2,165 cwt. 
Your Dire'ctors have to report that the greatest pre- 
cautions continue to be taken to keep cocoa disease 
iu hand, gangs of coolies being frequently employed 
in searching for and treating canker-, in accordance 
with the advice given by the Government Mycologist. 
The opinion is generally held, by those competent 
to judge, that this disease can be kept down, by 
continuous care and attention, to a point when the 
resultant loss from it is not serious ; yonr Directors 
concur in this view, and think that canker will be 
a great obstacle to the successful cultivation of 
cocaa ; indeed, the probability is that it may be 
eradicated. 
A census of coconut trees was taken on or about 
30lh .lunii last, shewing a total number of 46,709 
gvowinK amoijgrit other products ; this is equal to 
over 000 acrey, at the rale of 76 trees per acre. 
Vour Directors are pleased with the progress made 
with this cultivation, and believe that in the COlirse 
ol time it will bo a valuable asset, 
A tea factory has been erected on Strathisla Estate 
and is working well. A satisfactory contract has been 
entered into, to manufacture the total output from 
a neighbouring Estate for a term of years. 
Two bungalows, situated on New Peradeniya and 
the grounds pertaining thereto, have been disposed of 
at good prices and proceeds applied to the reduction 
of the Estate's Capital Account. 
Your Directors have purchased from natives 18i 
acres of land within the boandariea of North Matale 
Estate, of which 12 acres were under cocoa in full 
bearing. 
Tea. — This i.idustry has passed through a very try- 
ing time since the issue of last report and balance 
sheet. Owing to favourable weather, heavy flushes of 
leaf were experienced generally throughout the Island, 
an I many growers, encouraged by the high prices 
ruling here for common kinds during the first half of 
190J, were induced to tuke advantage of the situation 
and pluck somewhat coarsely. The market was con- 
sequently overburdened with supplies of inferior 
qui^lity and the inevitable reaction set in, resulting 
in a serioaa drop in the value of most grades. The 
anticipation of a possible rise in duty also led buyers 
to mike clearances largely in advance of immediate 
requirements and hampered their purchasing power. 
Fortunately the seriousness of the position was re- 
alised, and successful efforts were made by more 
careful plucking and manufacture to remedy the state 
of affaire, and this, combined with climatic infiuences 
more favourable to a smaller and better crop resulted 
in a curtailment of shipments and improved quality, 
which has gradually bronght about a mure healthy 
condition of the initustry Unpleasant as the es- 
perieuce has b^en to all interested it has perhaps not 
proved an unmixed evil, as Ceylon tea. on acc unt of 
its chr-iipnes , was used more freely th n bcf uiv, b^ih 
at horn -1 and ab Old, a:,d it is to bn hoped thti ihe 
taste for the article once implanted may be fostered 
by the more careful cultivation and miiuufacture now 
be-towed upon it. 
Prom Ist January to 31st nit. 1,053,000 packages 
of estate lea passed through the Mincing Lane Sale 
Room realising 6|d per lb against 7id per lb for 
100,700 packages, and 8d per lb for 964,500 packages 
in the corresponding ten months of the two preced- 
ing years, Toe lowest point of the market was touched 
in February, the average for that month being 6id 
per lb wheieas for October it was 8(1 per lb. 
During the first nine months of this year to 30ih 
September Exports to Foreign Mirkets from Loudon 
were: — r 
1901. 1900. 1899. 
13,305.000 lb 10,279,000 lb 8,918,000 lb. 
In the same period shipments from Ceylon to the 
undermentioned countries were : — 
To Australasia. 
1901. 1900. 1899. 
15,669,000 lb 12,894,000 lb 11,967,000 lb. 
To Russia. 
6,977,000 lb 6.657,000 lb 2,719,000 lb. 
To America. 
2,692,000 lb 3,463,000 lb 2.344,000 lb. 
Cocoa. — The Market has been disappointing. At 
the commencement of the season there was a good 
general demand with an improvement in prices but 
as the season developed and arrivals were plentiful 
and continuous, the demand suddenly f-ubsided and 
prices became almost nominnl business aas iiuinga 
retail character, with accumula ting stocks. Holders 
generally adopted a firm atiitade for -ome time, 
awaiting the resumption of demand, but this being too 
prolonged, pressure to sell became manifest, and «■ 
break in prices was the result. The btatistical posi- 
tion of the article is satisfactory, consumption iu 
nearly all countries shewing an eucorraging ruciease. 
The quality generally has been inf( rior, w th ouiya 
few rtallj attractive lott, which aie n.ostly firmly held 
AcKEASBs, — The following siiatement shows the ap- 
