122 
THE TROPICAL AGRICULTURIST. 
[August i, i8go. 
SPECIAL MEETING OF THE CEYLON 
PLANTEES’ AMEEICAN TEA COMPANY, 
LIMITED. 
PROPOSALS FROM AMERICA FOR THE 
RE-ORGANIZATION OF THE COMPANY. 
In aoaordance with due notioe a special general 
meeting of shareholders in the Ceylon Planters’ 
American Tea Company, Limited, was held at the 
offices of the Company in Queen St. yesterday, 
commencing about 1 o’clock. Mr. L. H. Kelly 
(Chairman of the Company) presided, and the other 
directors present were Messrs. G. A. Talbot, Harry 
Whitham, C. Spearman Armstrong, W. W. Mitch- 
ell, J. J. Grinlinton, and Thos. North Christie ; 
the shareholders present were Messrs. J. H. 
Renton, C. Oswald Mackwood, H. J. Vollar, Sholto 
G. D. Skrine, F. G. A. Lane, W. H, Davies, Eastern 
Produce and Estates Company by their attorney, 
C. B. Smith by his attorney, F. M. Mackwood, 
H. D. Deane, A. Vanrenen, Gilbert F. Traill, F. G. 
Bewes, A. Bethune, H. V. Lushington, H. L. S. 
Ingles, J. F. Headrick, H. Bois, P. Bois and V, 
A. Julius. 
The Hon. W.W. Mitchell, who acted as Secretary, 
read the notioe calling tbe meeting, and the minutes 
of the last meeting held on the 12th February 1890, 
which were confirmed. 
The Chairman said that he would make a few 
remarks to point out the necessity of calling the 
meeting. The necessity had arisen from a letter 
which they had received from Messrs. Wattson & 
Farr of New York, dated May 15th. The 
letter would be read to them presently, but its 
main object was to point out Messrs. Wattson 
& Farr’s opinion that a very much larger 
business might be done in Ceylon tea in America 
by the co-operative system, as they called it in 
America. There were many ways of doing things 
in America which were strange to them, and 
which might at first seem beyond their ken, 
but Messrs. Wattson & Farr’s idea was to make 
a number of persons in fairly good circumstances 
shareholders in this Company, to allot them so 
many shares, and to supply them with tea, 
holding their shares fully paid up as security, and 
to make them, in fact, the Company’s agents ; 
to appoint them in all the various small towns, 
and to get them to travel about and do as much 
as they could to increase the volume of the sale 
of Ceylon tea. The directors had given the pro- 
posal (of Messrs. Wattson & Farr their deepest 
consideration. They proposed to raise a capital of 
one million dollars, and to apply to the present 
shareholders two shares of 20 dollars each for 
every one share that they now held, so that the 
holder of a share worth R50 would, at the present 
rate of exchange, get an amount equal to about 
E108 for his share, provided he chose to 
remain and amalgamate with the American Com- 
pany. Messrs Wattson & Farr proposed to reserve 
10,000 shares as the working capital of the concern, 
and they proposed to take 28,000 shares for them- 
selves and the promoters of the Company. The 
Directors thought that a great deal too heavy an 
amount : they objected to it, and telegraphed 
to Messrs Wattson & Farr pointing out their 
objection. He would ask the Secretary to read the 
telegram that was sent. 
The Secretary said that the following telegram 
was sent on the 1st of July; — “Directors provisionally 
approve — promotion shares deemed excessive — 
shareholders called — writing.” In reply to that came 
the following telegram : — “ Promoters fully con- 
sidered all points— cannot alter conditions — Delay 
likely prove diiastroui— Prompt ooDfirmation most 
important.” An answer was sent : — “ Will cable 
you on 11th”— this date. 
The Chairman, continuing, said they would 
see that although the directors immediately 
took steps and objected to so large a proportion 
of the shares being allotted as promotion money, 
the promoters in New York seemed to think they 
would require that large sum of money in order 
to promote the Company and to push the 
concern. There was no doubt that a very large 
sum of money would be necessary, but whether 
the sum named was absolutely necessary or not 
it was very difficult for them to say. But they 
did think, as a Board of Directors, taking all 
matters into consideration, that whatever was 
done must be done promptly. Their great object 
was to push the Ceylon tea enterprize, and they 
considered that they would be able to do a very 
much larger and much more extended business 
in accepting this scheme. (Hear, hear.) One thing 
was perfectly certain, and that was that the 
Company had not been supported either at home 
or in Ceylon as well as it ought to have been, 
seeing the very heavy expenditure in work- 
ing anything of the sort in America, and 
they thought it would be to the mutual 
advantage of the shareholders if they would agree 
to amalgamate the Company under the proposals 
made by Messrs. Wattson & Farr. The directors 
wished to take the shareholders entirely into their 
confidence in the whole matter that had been laid 
before them, and therefore he would ask the 
Secretary of the Company to read the letter which 
had been received from Messrs. Wattson & Farr, and 
then to read the reply which was sent. 
The Secretary then read the following correspon- 
dence : — 
New York, May 15th, 1890. 
Messrs. Darley, Butler & Co., 
Agents and Secretaries, Colombo. 
Dear Sirs, — Since last writing you we have your 
esteemed favours of March 26th and April 8th, con- 
tents duly noted, and all enclosures in order. 
Mr. Fineo has continued to use his best efforts in 
increasing sales of Tea, and we see signs of a grow- 
ing interest amongst those who have given the article 
a fair trial. At same time the increase is very slow ; 
and to make the Company a success, some vigorous 
and extended effort must be made. 
We have been, as we have already written yon, 
much interested in the experiment, and have given 
the matter our very careful attention, but must say 
that had we Known how small a proportion of the 
Company’s shares would have been taken we should 
have hesitated about accepting the agency, and would 
most probably have advised that the attempt to start 
the business should not be made. We have done 
our best with the funds provided, and feel that all 
the money spent has been used to the very best ad- 
vantage, but with the present resources of the Com- 
pany it is only a question of a few months, when all 
the money will have been spent and the business 
simply started. 
It has been, therefore, a matter of considerable 
thought with us to advise the best way to avert the 
impending disaster to the Company, and make the 
efforts and money already expended the stepping- 
stones to a permanent success. 
You may or may not be aware that the co-operative 
principle in many forms of business is taking great 
hold of our people at the present time, and after care- 
ful investigation of the matter, we are of the opinion 
that this co-operative idea can be used with marked 
success in the promotion of the plans of this Company. 
We have in this country a very large class of people, 
who have some means and are able to live without 
going in for any very engrossing business, but who in 
many instances would be very glad to add to a small 
income by some clean and reasonably profitable occu- 
pation, without loBiBi^ their independence, Tbe«<^ 
