JULY I, 1891.] THE TROPICAL AQRiCULTURiST. 
33 
THE CEYLON TEA PLANTATIONS 
COMPANY. 
Address of the Chaihsian, Mb. D. Reid, 
AT THE 'Recent OiiNEUAi. Meetino. 
' ■■|Genti,emen, — I am very pleaBed to again meet the 
gbarehoicioi-i with a satisfuoLoiy bulsnoti .-heel, and 
to be able to assure 3011 that, iu the opiuioa of the 
Board, the position ot cho Uompiuy iiaa strsiigtlieiied 
with each successive year of Us existence. Befoit' 
referring to my visit to Ceylon aud reviewing the 
Company's present position, 1 wish to give a few 
explanatioDS of the accounts. On the debtor side 
of the Balance Shret yon will find that the Reserve 
at the end of the year ttood at £'i,257, while only 
£3,000 was cairied to tiiat fnnd iroai last year's 
yrotits ; the differt-noe— £257— is prtmiuiu on new 
shares issued during the year. The addilion ^jro- 
posed to be carried from the prolits of 1890 lo 
this fund will bring ii; up to £y,(JOU. On the 
debtor side of the profit and loss account, yon 
will find aa item of £122 — Fur.ough tccnin;. As 
stated in the Direotora' report, £1,750 has been pro- 
vided out of the working e.\pi-.not.s of this yeai' lur 
this purpose, and tacij se^jarate estate has been de- 
bited with the sura sec api^rt, for ihe Furlough of 
the Staff engaged on it. Tho £122 apperaiug in the 
profit and loss acojuut is to provide for the Ceylon 
Manager's furlough. The sum of £1,750 is abnor- 
mally high, as it had to bo ca'cuUteil irom the datea 
our several euperintendents and ussisiauis entered 
the Company's servict — it is, in fao';, a provi- 
sion that' covtrs cot olo, bat four yea-,*. Now ;he 
working expen^e.s of eacli year will be debited vsith the 
liability incarred undtT thu he.id duriUt; tsat year, 
which will be about £tiO0 pec aunu'Ci. Toe sum of 
£200 reserved lor '• Tobacco cultiva iou experiment" is 
an amount the DirectOiS have .-et aside to cover a 
possible lots on an experimtnt they h.ivo tuade on a 
small scale in growing tobacco at Lunugala. Until the 
tobacco is brought to market, we cannot say whether 
there will be a loss or a profit. I thiijk the accounts 
otherwise are plain and will be readily undtrsiood by 
the shareholders, liet me now refer to my viciit to 
Ceylon. 1 visited, iu company with Mr. Talbot, your 
manager iu Ooylon, every i-state iu which the compaoy 
is iuterestid, and personally diecu'-sed with him anil Uie 
various superintendents of estates the condition and pros- 
pects of the Company's property. Coming fttsh fioin 
such IV visit, I presume mat what the sh^ireholderti will 
wish to know is the opini 'U I have formed of tne value 
of the Company's property, the stability oi its pusii-ion 
and the character of the munagement. The value of 
our proper;y as a profit-ea' mug conceru eau be clearly 
seen by anyone .vho has reid the lour annual reports, 
which tihow that the position of ihe Company has bct-n 
one of growing s'ability and improved prospects. I 
particularly directed my attention while in (Jeylon io a 
studs of the- pro'pecbs of our tea continuing to give us 
good crops. The conditioufi of a good tea estate are : Is', 
suitable soil and clituate ; 2ad, good planting with ihe 
best iat of plants ; and 3rd careful uuiaing wh'le.tho 
tea is jouU(5. The actual results obtained a;id divi- 
dends are, I think, good evidence thao the firtt and 
second conditions havo been secured, and I have to 
state my opinion that, with Vi'ry trifling exceptions, 
exceptions so small as not to affect apprtciably the 
character of the whole, the Company's property 
fulfils, the conditions I have named. Let me now 
say a word about the third condition, that is, care- 
ful nursing while the tea is young. If it is attempted 
to get large profits from tea in its early years by 
severe plucking, the ftstate may be greatly riamdged 
and even permanently deteriorated. ' Amongst other 
things patience is required to make a good lea estate. 
I can assure the shareholders that our profits have 
not been obtained by iniperillitig the future. Our 
young tea has been treated with regard mainly to 
producing strong btishes that caa be relied on to 
give large yiells after arriviug at maturity. In 
regard to the condition of the Company's property, 
it is in the highest state of cultivfitioD, and has 
throughout a most thriving appearance. All the 
factories are of the most permanent description, 
thoroughly _well tuilt aim well-desicced, and adapted' 
for economical and eSicieut working. No mouty 
has been was i d in put 11 g up fancy or show build- 
ings, but no outlay has been grudged to give our 
superiulendeuts the mearie of making good tea. I 
should like now, as has been my practice at previous 
annual i,aneral meetings, to take a general view of 
ihe property with which we star ted ijiuiness this year: 
The coat, of ihe properties is .shewn by taki g the 
first item on the cri ditor side of the bid aii-e sheet, 
adding to it the cost of purchase of West Holy rood; 
Ardaliie, and Kithnillukelly estate."-', and deiiuoting 
the £4,000 written oflf for depreciation. Taken in 
round figures this amounis lo £223,000. A^a^nst 
this you have, as shown by the D rectors' report, 
6,307 acres of tea-plauted laud, and 2,831 acres of 
laud of which a considerable portion is fit for 
planting with tea. Kevenue has been charged with 
all renewals and repairs to machinery and buildings 
and th" planling ot a considerable area with timber 
tiees. Without taking into account the Reserve 
fund of £t),000, ijud allowing £i per acce for 
unpiauted land, the acreage under cultivation will 
stand at £33 per acre aa against £34 last year. 
This does not, however, represent all our capital 
a sets. We have a business of manufacturing tea 
groivn by other proprietors which last year abjounted 
to nearly 1| mil'ioii lb., and from which a con- 
siderable profit wa.= trade. I do not, however, deem 
it advisable to assume our manufacturing bosiness as 
representing much capital valun as our customers 
may at.a^.y t;iiie buiid themselvis a factory, and so 
1 prefer valuing _n our preperi} f,;r you solely on the 
basis oi" a price per acr-o - or the whole bu i! eas as a 
going coiice;n. ?Jut, alcLoiigh our manufacturing 
buaiuess is not one we OdU ie certain of retaining 
permacently, there io this to bo observed — that we 
possess buildingi r.nd machiuery suffi. lent to spare 
to deal with iho crop of our own estates, not as 
they are now, but f.s I hoy will be when every acre 
shall be in foil bearing. I can best give an idea of 
the extent and co.tip'e'cuess of the Coaipsny's equip, 
meut, when I tell you.that in January, February and 
March of this year we made at our owu factories 
oyer oue miiliou lb. of tea and three largo factories, 
viz : Mudamana, E, sita and Tanga'xehy, were not 
completed, but all three will be at work on or before 
.June l.,t uf this year. After theso factories are 
fiiiiobed, we shall bo iu a position to deal with con-'-' 
siderably over four Hiiliiou lb. of tea p',r annum, 
Taking these facts in eonjtiuotiou with tho Directcs 
report which shows that during 1390 a. profit 
of over £31,000 was mide from . a plucking nresj 
of less tho 11 4,000 acres, I think I am justified inii 
describing the Conipaoy'.s position as one of growing:] 
prosperity aod stability. I ?hould like now to SKy a ' 
word about the expi»nsion of the OempiDy by new pur- 
chatof', ai d i have to inform you that since issuing 
our n port (ho Directors have couoluded negoiiatious 
for the purch', ae of the YoxI'ord eststa from Messre 
Bsring firos. for £18,000 
I am, after careful inspection ond consideration., 
well sati-tii d with all the Company's new properties, 
and I am no less pleased to be able to assure the 
shurebolders that I see no signs of deterioration in oar 
oldest est'ites. Tho Company's estates iu the Kelani ' 
Valley are lot'kiug health^' and vi^ori^usand havegiven.- 
very heavy crops during the present year. The situa- ; 
tiou of the Company's facdories is generally mosfr i 
favourAble for uidiug one another iu times of pressure 
or break d.,vvii, several of "ur large factories being at 
railway btaiion.-^, and all very accessible by road. X/e* 
me nov.' say a word about the management iu Ceylon. 
Any prop'.Tty, lioweveT fine, m;.y eusily be ruined by 
mis-management, and 1 have given anxious attention 
to the Consideration of the efiiciency of our staff, 1 
have the fullest confidotice in assuring the shareholders 
that no property iu Cej Ion is more carofully or skil- ■ 
f uUj managed than is their property by M ■. Talbot' ■ 
and the able superiniendeuts n-iu assistants \-,h 1 torm ' 
the CooHiany's st..ii, and I ha.eto express in- great 
salisiaotion with the excellent fo. ling ol mutuii re psct 
and trust which I know exists beiweeu the Board of 
