THE  TROPICAI.  AORirULTURTSr.  [March  2,  1896 
f>?ri 
THE  CA«TLEUEAG11  TEA  C'UMl’ANV  UK 
CEYLON,  LTD. 
Tlie  annual  general  meeting  of  tliis  Company 
was  held  on  Feb.  2Gtli. 
The  Chair  was  taken  by  Mr.  H.  Creasy,  who, 
after  tlie  usual  j)reliminary  formalities,  moved  the 
adoption  of  the  fifth  annual  re^iort  now  before  the 
meeting. 
The  Managing  Director,  in  seconding,  said  that 
all  ]»ossible  detail  and  information  having  appeared 
in  the  report,  he  need,  jierhaps,  only  e.xplain  that 
though  the  profit  earned  was  about  17  per  cent 
it  w'as  necessary  to  carry  forward  a balance 
representing  about  3 per  cent  because  tlie  manure 
applied  in  the  concluding  months  or  weeks  of  last 
year  was  for  ])urposes  of  accounting  more  cor- 
rectly, chargeable  this  year,  though  not  consti- 
tuting an  asset  available  for  dividend.  Tlie  Com- 
IJany’s  investment  exceeded  the  subscribed  capital 
by  some  KG, 000  and  it  would  be  seen  that  as  yet 
there  was  no  reserve  fund  which  he  thought  every 
agricultural  Company  should  maintain.  The 
crop  represented  a yield  of  420  lb.  jier  acre  against 
229  in  the  previous  year,  having  very  consider- 
ably exceeded  the  estimate,  which  was  in  a great 
measure  to  be  attributed  to  a very  favourable  sea- 
son, allowing  cost  of  production  to  lie  reduced 
though,  at  the  same  time,  the  value  of  the  iiroduce 
had  somewhat  fallen.  The  profits  of  the  Com- 
pany now  depend  in  a marked  degree  upon  the 
([uality  of  the  tea  which  it  is  the  anxious  desire 
of  the  management  to  improve.  The  new  machi- 
nery was  jiroving  in  every  way  satisfactory,  while 
withering  accommodation  had  been  increased. 
The  estimate  for  189G  had  been  placed  rather 
below  the  liguie  of  1S9.3,  and  at  iiresent  the 
weather  uas  not  fa\onrable  to  a large  yiehl. 
The  capital  account  reiiresented  the  moderate 
rate  of  KoUS  per  acre,  ami  the  I’ropriotors  uho 
might  have  jmridiased  at  lll.AU  per  share  had 
paid  the  comparatively  moderate  late  of  1!7('2  per 
acre  for  the  tea.  The  number  of  shareholders 
is  now  101,  against  87  a year  ago. 
Mr.  Cordon  Pyper  having  expressed  satis- 
faction with  the  report  in  all  respects  except 
that  at  present  there  existed  no  reserve  fund, 
the  formation  of  which,  he  thought,  should  be  a 
first  charge  upon  the  profits ; the  report  U'as 
put  to  the  meeting  and  adopted  unanimously. 
Mr.  C.  D.  I’ATUEEO  moved  and  iMr.  .1.  A. 
Martin  seconded,  that  a dividend  of  K.s  for  the 
half-year  ended  31st  December  189.‘)  (making 
with  the  interim  dividend  paid  in  Angus!  189.> 
a distribution  of  l.">  )ier  cent  for  the  year  189.”)) 
be  declared  and  made  payable  on  2Sth  I'ebru- 
ary  1896. — Agreed  to. 
Mr.  Cordon  Pyper  moved,  and  Mr.  C.  T). 
Patullo  seconded,  that  Mr.  .lohn  Helps  Starey 
be  re-elected  a Director.— Carried. 
Mr.  C.  D.  Paullo  moved,  and  Mr.  tloRDON 
Pyper  seconded,  that  Mr.  .lohn  Cuthrie  be  re 
elected  Auditor  at  a fee  of  K.')n  per  annum. — 
Carried. 
A discussion  then  took  place  on  Mr.  Cordon 
Pyper’s  suggestion  as  to  reserve  fund,  whiidi 
resulted  in  Mr.  C.  Paper  moving  that  the  Di- 
rectors set  aside  every  year  2.^  jier  cent  of  the 
profits  till  the  .sum  or  K25,000  be  attained.  This 
was  duly  seconded  and  carried. 
.A  vote  of  thanks  to  the  Chair  concluded  the  ju'o- 
ceedings. 
THE  V'A'l'ADEKlA  TEA  COMPANY  UK 
CEV'LON,  LIMITED. 
The  following  is  the  report  of  the  pro- 
ceeilings  at  the  annual  general  meeting  held  on 
■Wednesday,  the  26th  I'eb. 
The  notice  of  mectiim  was  read  and  minutes  of 
last  meeting  were  passed.  The  report  was  taken 
as  read. 
In  the  absence  of  Mr.  Masefield,  the  chair  was 
taken  by  Mr.  David  Fairweather,  who,  express- 
ing regret  at  Mr.  Masefield’s  unavoidable  absence, 
mentioned  that  he  had.  however,  paid  his  usual 
visit  to  the  estate  and  had  sent  in  a re- 
])ort  to  the  Hoard  which  was  receiving  the  best 
attention  of  the  Directors.  He  moved  the 
adoption  of  the  seventh  annual  report  now  be- 
fore the  meeting. 
The  Managing  Director,  in  seconding,  said 
the  report  had  been  framed  with  the  object  of 
giving  shareholders  (many  of  whom  were  un- 
able to  attend)  all  possible  information  in  full 
detail,  but  he  might  explain  the  views  of  the 
Hoard  in  the  pioposals  before  them.  It  ap- 
jieared  that  the  jn-olit  earned  during  the  past 
year  was  slightly  over  50  per  cent,  of  which 
about  30  per  cent,  had  come  out  of  the 
second  half-yeai,  and  the  proposal  to  divide 
only  45  per  cent.,  and  carry  nearly  8 per 
cent,  to  reserve,  carrying  forward  rather  over 
6 per  cent,  was  made,  in  a s[)irit  of  moderation, 
in  view  of  the  exceptional  jirosperity  of  the  past 
year  when  the  weather  had  been  very  favorable 
and  the  market  for  teas  for  price  had  been  much 
higher  than  it  now  is.  In  building  up  the  re- 
serve, the  directors  were  obeying  the  mandate  of 
former  meetings,  and,  if  the  sum  now  proposed 
to  be  transferreii,  appeareil  to  .some  unnecessarily 
large,  the  occasion  for  it  arose  out  of  the  excep- 
tional (irolits,  while,  at  the  same  time,  the  proprie- 
tors were  to  receive  half  as  mucli  again  in  divi- 
dends this  yoar  as  comiiared  with  last.  There 
was  aiioilier  exceptional  feature  in  tlie  figures,  in 
tliat  tlie  portion  of  1894  crop  not  .sold  when  those 
accoiiiils  were  made  up,  had  realised  much  more 
than  expected,  to  the  extent  of  4.(  per  cent. 
]irolit  now  to  be  ili.sjioscd  of.  This  year,  on  the 
other  hand,  it  was  to  lie  fearcil  that,  in  eonsoipi- 
enec  ot  the  recent  sudden  rise  of  about  5 per 
cent,  in  exchange,  the  tea  not  yet  sold  might  prove 
to  have  been  over-\alued,  and  hence  it  was  ad- 
visable to  carry  forward  a good  balance  though* 
indeed,  it  was  only  about  1 jier  cent,  more  on 
the  capital  than  that  of  last  year.  Under  these 
circumstances  he  could  not  su])])ose  there  could 
be  two  opinions  as  to  the  wisiloni  of  following 
a (lolicy  of  moderation,  rather  than  declar- 
ing record  dividends  which  might  perhaps 
not  be  maintained  for  e\en  another  year. 
He  had  heard  of  comparisons  drawn,  but 
in  fact,  these  was  no  comparison  in  the  rate  of 
dividends  unless  other  conditions  were  considered. 
He  had  only  heard  of  one  di\  iilend  exceeding  that 
now  projiosed,  ami  it  was  imtcnt  on  the  aeconnfs 
that  45  per  cent  in  the  case  of  Yataderia  showed  a 
higher  measure  of  success  than  5(1  per  cent  in  the 
other  case.  The  total  dividends  of  this  Company 
would  now  amount  to  167  per  cent,  while  the 
pro[ierty  had  greatly  inipro\cd  in  \alue.  the 
present  juice  of  shares  re|tresenting  about  Kl.275 
jier  acre.  The  investments  of  the  Company  stood 
at  11210,000  which  was  just  balanced  by  tlie  share 
cajiital  and  reserve  fund  ; at  the  same  time,  more 
land  was  being  iuircha.sed  and  being  opened,  while 
the  Factory  was  about  to  be  extended  and  the 
turbine  renewed  ; and  the  time  had  not,  in  the 
ojiinion  of  t'  e Hoard,  arrived  for  scattering  all 
the  jirofits  of  the  Coiujiany  as  fast  as  they  came 
in.  'I’lie  estimation  of  shares  in  the  market 
would  stand  much  higher  when  there  is  a sub- 
stantial reserve  than  otherwise.  'I'lie  undeveloeiied 
resources  of  the  Conijiany  are  rejiresented  by  105 
acres  tea  not  in  hearing,  and  330  acres  of  good 
jungle.  He  was  jileased  to  say  that  labor  was 
