744 
THE  TROPICAL  AGRICULTURIST. 
[May  1,  1896. 
INDIAN  TEA. 
To  the  Editor  of  the  Financial  Times. 
Sir,  Having  read  the  article  ia  which  you  brought 
Indian  tea  planting  companies  before  your  readers 
as  a suitable  channel  of  investment,  it  occurs  to  me 
that  you  may  possibly  like  to  have  some  contirma- 
tioii  of  your  advice  from  one  who  lias  long  been 
conversant  with  the  position  and  development  of  the 
industry  as  a tea-taster  and  agent  in  the  Eondon 
market  for  some  of  the  principal  growers. 
So  little  has  been  known  in  the  pasD  about  this 
branch  of  our  commerce  that  it  is  not  surprising 
that  investors,  as  a rule,  have  regarded  it  with 
diffidence,  or  have  altogether  ignored  it.  But  the 
e.xpeiiraental  stage  has  tong  been  passed,  and  we 
have  now  the  benefit  of  some  fifty  years'  experience 
with  the  result  that  it  is  proved  that  nearly  all,  but  not 
quite  all,  plantations  in  India  are  permanent  in  respect 
of  soil  and  the  capacity  of  plant  to  yield  freely  and 
vigorously  ; that  while  w'cather  causes  some  varia- 
tion in  the  amount  and  quality  of  the  yield,  such 
a thing  as  the  failure  of  a crop  is  unknown,  and 
that  no  limit  has  yet  been  found  to  the  consumption 
of  Indian  tea. 
A most  important  fact  is,  that  the  oldest  plantations 
in  Assam  still  produce  the  finest  tea.  Proof  of  this 
is  to  be  found  in  the  history  of  the  Assam  Company, 
which  has  been  at  work  since  1818,  and  last  year- 
showed  a profit  of  ,fu0,000  on  the  season’s  production, 
equal  to  more  than  25  per  cent,  on  the  capital,  arrd  due 
to  the  fine  quality  of  the  tea  produced.  Another 
weighty  fact  is  that  no  other  tea-producing  country 
has  yet  been  discovered  which  can  give  tea  equal  to 
the  best  from  Assam  and  Dar  jeeling.  Another  is,  that 
notwithstanding  the  steady  increase  of  production, 
there  is  in  no  market  of  the  world  a surplus  stock  of 
Indian  tea,  the  ye.ir’s  consumption  regularly  using 
up  all  that  is  grown.  Last  year  185  million  pounds 
were  produced  by  India ; of  this,  I'iO  millions 
at  least  will  be  used  in  the  Uuiied  Kingdom, 
and  the  lemainder  in  other  countries,  where  the 
use  of  Indian  tea  in  place  of  Cliina  is  rapidly  in- 
creasing to  a point  which  makes  them  keen  com- 
petitors with  English  buyers. 
'The  effect  of  tliese  developments  in  trade  has 
been  to  maintain  the  market  value  of  Indian  tea 
well  above  the  cost  of  production.  You  may  like 
to  know  some  details.  A crop  of  “ common  tea  ” 
costs  from  5gd  to  (id  per  lb.  to  make,  and  realises 
7d  to  7id  per  lb.;  a smaller  crop  of  “good  tea’’ 
costs  about  7d  per  lb.,  and  realises  from  ltd  to  lUd ; 
a still  smaller  crop  of  “fine”  tea  costs  from  l)d  to 
lOd,  and  realises  from  Is  up  to  as  much  as  Is  (Id 
per  lb.  There  is,  therefore,  a good  margin  left  for 
lowered  market  value  or  increased  cost  of  manufacture. 
'The  items  that  would  increase  cost  are:  a rise  in 
the  value  of  silver,  a rise  in  freights,  or  a scarcity 
of  coolie  labour. 
So  much  with  regard  to  the  general  position  and 
prospects  of  the  industry.  The  would-be  investor 
will,  of  course,  want  to  know  which  are  the  strongest 
and  soundest  of  the  many  companies,  but  it  is 
not  my  purpose  to  teh  him.  Some  general  hints, 
however,  may  perhaps  be  given.  These  are  : 
To  notice  the  capital  cost  per  bearing  acre,  and  pre- 
fer those  whose  gardens  show  a low  cost  ; to  ascer- 
tain what  additions  to  the  planted  area  have  been 
made  out  of  the  profits  of  past  years;  to  discrimi- 
nate between  those  who  pay  dividends  and  also  create 
reserve  funds,  and  those  who  do  not;  to  inquire 
what  is  the  average  value  of  the  tea  produced,  and 
if  the  estates  are  situated  in  the  best  districts. 
Most  of  this  information  can  be  found  in  the  ela- 
borate tables  of  statistics  now  published  by  some  of 
the  stockbrokers,  who  are  beginning  to  realise  that 
(5  per  cent,  or  8 per  cent,  can  be  obtained  on  in- 
vestments in  Indian  tea  with  much  less  risk  than  is 
run  in  many  kinds  of  industrial  and  commercial  con- 
cerns for  tl  e sake  of  5 per  cent.  Fr  om  a share- 
holder’s point  of  view  it  is  much  t:  be  desired  (hat 
the  older  companies  would  real  range  their  capital 
on  a modern  basis,  divided  into  the  preferred  and 
deferred  shares  of  small  nominal  amount  that  the 
investor  of  today  so  much  prefers. — I am,  Ac., 
— Finnncinl  Times,  March  11th.  Assam. 
AGAINST  A DUTY  ON  TEA. 
The  following  iretition  has  been  prepared  and  cir- 
culated by  a tea  buyer  on  the  East  Side.  Mr.  C.  K. 
Banks,  expressing,  as  he  claims,  the  opinion  of  a 
large  number  opposed  to  a duty  on  tea : 
'To  the  Honorable  House  of  Ilepresvntatices  Washimj- 
ton,  JJ.  V. 
We,  the  undersigned  citizens,  merchants  and  tea 
dealers,  learning  that  a bill  is  to  be  presented  to 
Congress  to  impose  an  import  duty  on  tea,  beg  to 
present  for  consideration  the  following  objections  to 
such  duty  : 
Such  a duty  as  is  proposed  was  in  force  for  a 
number  of  , years.  It  was  repealed,  so  that  all,  no 
matter  what  their  circumstances,  might  have  at  the 
Ijwcst  possible  cost,  and  enjoy  withoui.  tax  “ at  free 
breakfast  tables,’’  an  article  .so  indispensable  that  it 
has  almost  or  quite  ceased  to  be  considered  a 
luxury. 
'The  ostensible  object  of  those  who  are  desirous  of 
imposing  an  import  duty  on  tea  is  that  the  standard 
of  quality  would  thereby  be  raised,  which  object  can 
be  equally  obtained  by  the  more  stringent  enforce- 
ment of  existing  laws  for  the  inspection  of  tea  at 
tne  port  of  entry,  without  imposing  a tax  on  the 
poor  man’s  comfort  and  consolation. 
We  humbly  pray  your  honorable  body  not  to  re- 
verse the  wholesome  and  consistent  policy  now  in 
force  for  twenty-three  years,  keeping  a staple  article 
of  daily  use  free  from  taxation,  which  falls  heavier 
on  the  poorer  classes  than  on  those  better  able  to 
contribute  to  the  support  of  the  Government. 
We  further  desire  to  call  attention  to  the  fact  that 
the  proposed  tax  is  sought  to  be  imposed  chiefly  in 
tiie  interest  of  large  capitalists,  as  such  a tax  by 
almost  doubling  the  import  cost  of  the  article,  would 
bo  a bin  dell  upon  the  dealers  of  smaller  means. 
We  beg  to  submit  that  the  existing  laws  for  the 
inspection  of  tea  of  a healthful  and  resonable  stan- 
dard can  and  should  be  maintained  at  all  ports  of 
the  United  Stales,  and  that  no  duty  be  imposed  for 
the  benefit  of  a few  capitalists  and  to  the  detriment 
of  the  public  at  large. 
'Tnere  is  irothing  in  the  present  revenue  laws  which 
forbids  the*eutry  of  clean,  low-priced  lea.  The  de- 
cline in  tea  since  1872  has  not  tended  to  increase 
consumption,  which  was  larger  per  capital  in  1872  ai  d 
1878  tliaii  It  has  been  since,  and  greater  in  1886, 
18.3?  and  1888  than  at  any  time  since.  In  1873  and 
1874  the  average  import  price  of  tea  was  37;^  cents, 
and  now,  when  it  has  fallen  to  15  cents,  we  find 
no  increased  use  of  the  article,  conclusively  showing 
that  the  American  people  do  not  care  for  tea  as  a 
beverage.  Beer  and  coffee  are  the  favourite.s.  Is  it 
any  wonder  that  the  tea  trade  does  not  increase 
when  the  bulk  of  the  importations  are  cheap  and 
herby  teas,  giving  forth  a liavour  th.it  does  not  cap- 
tivate and  win  the  palate  ? Not  one  consumer  in 
fifty  drinks  tea  for  the  sake  of  that  flavour  but  sim- 
ply from  habit  or  through  the  natural  carving  for 
a warm  drink.  Does  anyone  imagine  that  cheap, 
poorly  flavoured  coffee,  or  coffee  mixtures,  tend  to 
increase  consumption  ? 'The  introduction  of  the  port- 
able coffee  mill  into  the  grocers'  shops  did  more  to 
make  coffee  the  popular  beverage  it  is  than  did 
making  coffee  duty  free.  It  forced  the  sale  of  roasted 
coffee  in  the  beau,  while  competition  kept  up 
the  quality  and  stimulated  the  sale  of  pure  coff'ee. 
Mr.  Banks  claims  that  tea  has  quite  ceased  to 
be  considered  a luxury,’’  Simply,  we  believe,  be- 
cause of  inferior  quality.  'Tea  should  be  regarded  a 
luxury,  as  coffee  is,  which  pleases  the  palate  and 
awakes  good  cheer  and  brings  comfort.  It  the  people 
were  educated  to  an  appreciation  of  tea  for  its  deli- 
cate and  peculiar  flavour  and  lor  itsinaiked  character- 
istics, the  trade  would  make  more  money  tlian  it 
does  now  and  the  people  would  worship  the  teapot 
as  they  adore  the  coffee  urn,  the  chocolate  cup  and 
the  beer  nuig. 
If  Mr.  Banks  went  into  the  tenement  districts  and 
the  slums  he  would  be  surprised  to  find  the  poorest 
of  the  poor  buying  the  better  grades  of  tea,  unless 
forced  by  the  most  abject  j oveity  to  crucify  their 
r'esires.  What  the  tea  trade  want  is  a campa  ga 
lia.ing  for  its  object  to  denionstrato  to  consumers, 
