August i, 1890,] 
THE TROPICAL AGRICULTURIST. 
J ?3 
people live in the emall towns throughout the country, 
and would be in a position to have a horse and waggon 
at their command, to drive about through the 
countryl soliciting trade. 
We have secured the interest of parties here wliose 
business it has been to reach this class of people, and 
who have the necessary machinery and experience to 
interest them in any good legitimate enterprise ; and 
our plan is to secure an agent and stockholder from 
amongst this class, all over the country, commencing 
in our more thickly settled States, near at hand, and 
lying within a convenient radius, around our principal 
cities, 
No agent will be appointed who does not subscribe 
to some shares, end he must be qualified and under- 
take to push the interests of the Company in the 
teiritory that may be assigned him. The amount 
of shares would vary from jJlOO to $1,000, and he 
would be allowed to deposit his shares (fully paid 
up, of course) as security for tea sold to him which 
would be billed at a price to enable the agent to 
make a handsome profit, at the same time giving the 
Company a handsome return. He will have the double 
incentive of a profit on sales and a dividend on his 
stock, besides which his ownership of stock will give 
him an interest in keeping at work in bis territory even 
should sales not prove large at first, as he would realize 
that his investment in the stock would prove value- 
less, unless himself and his feilow agents all con- 
tinue to work for the common good. 
Whilst working up the class of people we have 
referred to above, we do not by any means propose 
to neglect the principal cities, but would work them 
into co-operation in the general business either 
by means of local agents or by establishing branches 
of the Company itself. 
Our idea in brief is as follows : — To incorporate a 
Company (American)under the same title as the present 
with a capital of ($10,00,000) one millon dollars, divided 
into shares of ($20) twenty dollars each fully paid up, 
and non-assessable, incorporate under the law of this 
State, and without liability to the shareholders. The 
shares to be divided as follows: — 
10.000 shares to be placed in the Treasury of the 
Company to be sold at par — say $20,00,000 ior the 
workiitg capital of the concern. 
12.000 sharos to be paid to the shareholders of 
the present Company, say 2 shares for every one, and 
28,000 shares to be paid to ourselves and the parties 
who will work with us in raising the capital and float- 
ing the enterprise, and we would all have to give much 
time and labour to the matter, and advance a great 
deal of money for advertising, travellers, &c. &o. be- 
fore we could look for any returns. 
It is not by any means our desire that any 
of ynur present stockholders shall part with their 
holdings, but rather that you may get increased 
subscribers, but we can doubtless arrange that 
any who do not wish to accept the 2 shares of the 
new Company for the one of the present Company 
shall receive the amounts they may have paid in, upon 
surrendering their shares. Still less is it onr desire 
that any of the present Directors should be displaced, 
as we wish to have the new Company to be the out- 
growth and harmonious result of the present one, and 
(inly such cbangi s or rather additions to the Board of 
Directors would be made as might be found necessary 
by our local laws and to enable ns to have the proper 
working board and officers here, where the work would 
have to be done. 
As we understand the matter, the present Company 
was gotten up, not with much idea that the shares 
would be directly profitable, but with the prospect 
that they might, and the direct object of exploiting 
Ceylon tea in this country. The money that has been 
so f ir paid in has been, or soon will be, used up 
and unless some decided steps are taken, will be lost. 
Our friends wiio are back of us in the proposed new 
Company say: Why should we bother with the old Com- 
pany at all ? We can buy all the Ceylon tea we want, 
make onr own boards, Ao. &o.— and have the whole 
matter hi onr own hands, as well as any profit. Wo 
have insisted, however, that as we have been 
your agents, and through you have become iuteiested 
in the matter, that we would have nothing to do with 
the business, unless the present Company was merged 
or in a measure continued in the proposed new one, 
as we wish it to be a representation strictly of Ceylon 
industries. 
Our proposed plan may seem visionary to yon, but 
this is a large and growing country, with an active 
and speculative population, who are always ready to 
take up a good scheme on a big scale, and we have 
with us men who have made a study of introducing 
Companies such as we propose, and who will give their 
time, money and experience, with the hope of making 
their interest in the stock valuable, which of course 
would be equally shared in by all stockholders. If the 
Company should succeed, and we think it will, Oeylon 
tea would be more thoroughly and successfully intro- 
duced into this country than by any other means we 
know of. 
Mr. Pineo is fully in accord with the matter stated 
herein, and as we shall have to commence operations 
as soon as possible, we will ask your very careful 
consideration, and would request you to cable us your 
decision, sav “approve,” if, as you are authorised 
by Article 7 of your bylaws, you will give us the 
option of buying out your Company, for say 12,000 
shares of the new Company, we (personally) agreeing 
that if the new Company is undertaken, that we will 
take np any'shares of parties who may now be stock- 
holders, should they not wish to accept the proposal. 
— Yours very truly, 
(Signed) Wattson & Fare. 
1st July 1890. 
Messrs. Wattson & Farr, New York. 
Dear Sirs, — We addressed you on the 26th ultimo , 
and have now to report that a meeting of Directors 
of the Ceylon Planters’ American Tea Company was 
held this day and we were desired to express their 
obligations to you for the great interest you have 
throughout manifested in the welfare of the Company 
and in the introduction of Ceylon Tea into America 
which have led to the proposals you(have made with 
regard to the new scheme put forward in your letter 
of 15th March. Whilst recognizing the desira- 
bility of carrying on the Company’s operations 
on a much more extended basis than at present, 
some of the Directors do not regard the position of the 
Company in a desponding manner and as one liable to 
end in disaster at an early date as you seem to think, 
but however this may be, they expressed themselves 
generally in favour of the scheme and we telegraphed 
you today “ Directors provisionally approve — promotion 
shares deemed excessive— shareholders called — writing.” 
The only matter connected with your proposals about 
which there seems to be a difficulty, is in regard to 
28.000 shares to be appropriated to yourselves and the 
parties who will work with you. There seems to be a 
difficulty in understanding what the reservation of 
such a large number of shares as 28,000 is for ; what 
equivalent the Company is to get for such a large al- 
lotment which amounts to more than half the proposed 
capital of 60.000 shares ; and we are desired to ask if 
it is the intention that the 28,000 shares are to be 
allotted to you for your services in placing the 10,000 
shares, the proceeds of which alone will be placed 
in the coffers of the Company to form its working 
ospital ? We understand that you mould take up 
the balance of shares in the old Company that 
is unallotted, and that you would make yourselves 
liable to refund to any shareholders in the present 
Company the value of their "hares if they did not 
agree to the new scheme. We presnme it is your 
intention t(3 expend a large sum of money — and if so 
about what amount ? — in raising the capital and float- 
ing tbe now concern, advertising, travelling &o. in 
connexion with the promotion of it, and tbe appoint- 
ment of local agents, recouping yonrselves from what 
you may obtain by selling some of the 28,000 shares, 
and not repaying yourselves from the proceeds of the 
10.000 shares which will remain and form the working 
capital of the concern ? 
We would have been glad to have had an explanation 
of this from you prior to the meeting of tbe share- 
