July i, 1S90.] 
THP- TROPICAL AGRICULTURIST. 
17 
CEYLON TEA PLANTATIONS COMPANY 
LIMITED. 
The ordinary general meeting of this Company was 
held at the offices, 21, Mincing-lane, E. C., on Tues- 
day ; Mr. David Reid (the Chairman) presiding. 
The Sbcbetaey (Sir W. Johnston, Bart.) read the 
notice convening the meeting, and the directors’ re- 
port was taken as read. 
The Chaibman said : Gentlemen, it is again 
my pleasing duty to render to the .sharehol- 
ders an account of our stewardship, and in doing 
so, I can sincerely congratulate you on the 
present position of the Company. In three years 
we have paid 45 per cent in dividends, have be- 
gun a reserve fund, and have reduced the capital cost 
per acre of our estates by 15 per cent, without lowering 
the intrinsic average value per acre of our property. 
On meeting the shareholders I have endeavoured, on 
every occasion, to make a clear and simple statement 
of the property we have, and what it has cost us, and 
to give you a short history of the year’s operations, 
showing the main features of our policy. On this 
occasion I will follow the same course in as few words 
as possible. By referring to the creditor side of the 
balance-sheet you will see that our property has cost 
us, in round figures, as at 31st Doc. last, £13!5,000 ; and 
byreferring to the statement of acreages, you will find 
we have 3,726 acres of planted land and 2,720 acres 
of unpLinted land. Our planted land originally 
cost us £40 an acre. I have already told you 
that we have reduced that by 15 per cent, viz., £6 
per acre, leaving the value as at 31st Dec. last at £34 
per acre for our planted land <ond £4 par acre for un- 
planted land. In addition to this we have a tea manu- 
facturing business of over 1,000,000 lb. a year, a com- 
mission and agency business which is profitable, and a 
small reserve fund of £3,000. You will see from this 
that our position is considerably improved from last 
year. (Applause.) The future of the company must 
always be a matter of anxious care to the shareholders, 
and the rapid expansion of the company has no doubt 
arrested your attention. Of course each step in the 
direction of new purchases has been taken with the spe- 
cial sanction of the shareholders, but the directors 
feel a great responsibility in a matter of that kind, 
since the duty falls to them of marking out the 
general line of policy, and recommending it to your 
acceptance. I feel confident that in all we have 
done we have acted with caution, and I hope with 
sound judgment. You have only to look at the 
statement of acreages to see the drift of our policy. It 
may be summed up in this, that we believe in good 
land and high elevation. An issue of preference stock 
is about to be made, and, as this is an important step, 
it is fitting that I should say a word on the subject. 
The original promoters provided in the articles for the 
issue of preference stock, because they believed a time 
would soon come when we should be unwilling to 
issue our ordinary stock at par, and that it would be 
desirable to bring in a class of shareholders who look 
mainly to the security which a preference stock gives 
them. We have made the preference holders very 
secure, for if the company issued preference stock up 
to the full extent of its powers, we should only have 
to earn 2i per cent on our total capital to pay their 
interest, and our estates would require to possess a 
value of less than £12 an acre to secure them. Our new 
purchases are made on the assumption that they will 
give as good a return as the old ones. If this expecta- 
tion is roalised, and if we continue to make the profits 
we have hitherto earned, or even something less, it is 
clear that, without diminishing our dividend-paying 
power, we could place to reserve the difference between 
the preference interest and the profit actually earned 
by the capital so raised ; and I think this policy 
should be pursued until a sufficiently large reserve 
fund is accumulated. That is to say, if we issued the 
total amount of our capital to acquire more property, 
and earned 15 p»r cent on the whole as at present, we 
should have £8,000 a year to carry to reserve, and 
thus strengthen the position of the company. Since 
the resolations relative to the issue of preference 
3 
shares were agreed to by the shareholders, the directors 
have had several proposals for increasing the capital of 
the company under consideration, and they decided to 
allow the resolutions to lapse. At an early date the 
form in which the directors propose to deal with the 
issue of preference shares will be laid before the share- 
holders for their sanction. Our report has informed you 
of our appointment of Mr. Rutherford ns the managing 
director of this company. The large expansion of the com- 
pany’s business rendered it essential that vre should have 
a salaried officer with experience of Ceylon business, 
a knowledge of the value of Ceylon property, and 
the cost of work in Ceylon, always in atleudance on 
the company’s business. I am well satisfied tl)at the 
shareholders have got the right min in the right 
place. (Applause.) The important post of manager- 
in Ceylon has been entrusted to Mr. Talbot, who is 
a large shareholder in the company, and whose high 
character and ability are well known. It is therefore 
unnecessary for me to say more than inform the 
shareholders that I am well assured our interesfc.s are 
in safe hands. Our Ceylon staff continue to give the 
directors great satisfaction, and this year we have inaug- 
urated a system of leave-rules on ascale which compared 
with other companies, is liberal, although I do not 
think it is too much so. Sick leave is also provided 
for. The estimates for 1890 are on the table, aud are 
satislaotory, indicating quite as good pro.spects for 1890 
as those obtained in 1839, but it iias been my practice 
to deal only with achieved results, and to allow each 
shareholder to make a forecast for himself. ’The re- 
sult will depend greatly on the price of tea and silver, 
and there are many here more competent than myself 
to form an opinion on these abstruse subjects. I may 
mention to the shareholders that it is the intention 
of the directors in future to pay only one interim 
dividend, probably in November, and the final dividend 
in May. I have now much pleasure in moving 
the adoption of the report and balance-sheet, and 
that a final dividend of 5 per cent, he declared payable 
forthwith. (Applause.) 
Mr. Heney Tod seconded the resolution. 
Mr. H. K. Rutheefokd ; Gentlemen, the chairman 
has so fully entered into the various important points 
affecting the company’s operations for the past year 
that there ia little I can add that would further en- 
lighten the shareholders as to our position. It might, 
however, be interesting to shareholders to learn that 
all the reports we have received from our manager 
in Ceylon, and from independent sources, assure ua 
that our estates are being thoroughly well cultiva- 
ted and the manufacture of our teas are receiiiug 
full and careful attention from our superintendents. 
It is satisfactory for me to be able to state that o-ur 
low country properties, which have fields of tea eleven 
years old, are in good heart and bearing well, and 
that the historical 100 acres of that magnificent pro- 
perty, Mariawatte, still continue to yield 1,000 lbs. 
per acre. As regards cost of production, notwithstand- 
ing we charge the cost of cultivation of all youD<^ 
tea not in bearing to the expenditure, the Oeylon 
manager has been able to lay down the company’s 
crop in London at the low figure of G.^d. per lb. 
and this we consider a very satisfactory performance. 
As to the new purchases, many gentlemen, who are 
shareholders, know these estates, and will bear me 
out when I say that from the suitability of their 
position as regards a favourable climate, from the 
general excellence of the soil, the water power available 
and the advantages of road aud rail communications! 
these properties cannot fail to prove in a very few 
years most valuable additions to the company’s list of 
first-class estates. Before resuming my seat, I would 
desire to say a few words ou behalf of our Ceylon 
staff, whose aid in a large measure has con- 
tributed to the satisfactory result.s of the year’s woirk- 
ing. Those who have been on Oeylon and Indan 
tea gardens know that the work of a tea planter if 
conscientiously carried out, i,; no sinecuro. IIo has a 
real responsibility and real hard work, aud in many 
oases not over well paid. As your chairmun Ims told 
you, this company has framed furlough and sick le.ive 
rules for their officers, and you are aware they have 
