832 
AGRICULTURIST. 
[June  r,  1896, 
the  tropical 
issued  in  ordinary  shares  of  £10  each,  and  i'23,000 
in  6 per  cent.  Debentures  (terminable  in  ten  years) 
of  flOO  each.  This  leaves  a working  capital,  after 
payment  of  charges  and  incidental  expenses,  which 
is  considered  to  be  ample  lor  all  purposes  of  the 
Compairy. 
It  will  be  satisfactory  to  you  to  learn  that  the  whole 
of  this  capital  has  been  placed  without  payment  of  any 
underwriting  or  other  commissions,  and  the  only  pay- 
ments made  in  connection  with  the  purchases  ot  the 
properties  and  the  formation  of  the  Company,  beyond 
the  incidental  expenses,  have  been  the  two  sums  of 
tTOO  mentioired  in  the  Prospectus,  and  a commission  to 
Mr.  Megginson  on  a portion  of  the  money  paid  tor  cer- 
tain of  the Dstates.  I believe  I am  correct  instating 
that  since  the  Company  purchased  the  Estates,  the 
proprietors  have,  in  several  instances,  received  offers 
from  other  quarters  representing  an  advance  of 
fully  10  per  cent. — that  is  to  say,  after  we  bought  tliem  ; 
I believe  offers  were  made  of  10  per  cent  higher  prices. 
As  regards  the  prices  paid  for  the  Estates,  the  posi- 
tion is  shortly  this  : u e have  properties  comprising 
1,341  acres  of  land  under  tea  ; 120  acres  of  forest  avail- 
able for  tea  ; 100  acres  of  patna  available  for  tea  ; and 
148  acres  of  forest  and  fuel  reserve  and  patna,  on  part 
of  which  wo  understand  that  brick-making  is  being 
done  at  a fair  profit.  We  have  no  accounts  with  refe- 
rence to  this  brick-making  work,  but  we  understand 
that  it  is  being  carried  on  at  a fair  profit.  Desides 
these,  we  have  an  eight  years'  lease  of  1)0  acres  of  tea, 
and  several  valuable  bungalows  and  bazaars,  lioughly, 
the  value  of  the  tea  laud  works  out  m the  neighbourhood 
of  T89per  acre.  This  is  no  doubt  along  price,  but  the 
position  is  a somewhat  peculiar  one  in  that  the  pro- 
perties acquired  are  (with  deference  to  the  gentlemen 
here  who  are  interested  in  other  Ceylon  pro- 
erties)  the  very  pick  of  Ceylon  tea  estates, 
oth  as  regards  their  elevation  of  capabilities 
of  growing  the  beat  classes  of  tea,  and  from 
their  good  and  very  deep  soil,  which  makes  it  prac- 
tically assured  that  as  tea  estates  they  have  a very 
long  lease  of  life  before  them.  Eurther  (and  this  is 
the  most  important  point,  I think),  the  area  of  land 
in  Ceylon  available  for  the  cultivation  of  the  high 
class  of  tea  produced  by  these  Estates  is  practically 
already  all  taken  up  and  cultivated,  and  the  whole 
supply  of  these  fine  teas  from  Ceylon  must  always 
remain  comparatively  restricted — of  course,  to  our 
great  advantage.  Since  tho  Company  was  formed, 
we  believe  that  estates  have  been  sold  in  Ceylon  at 
prices  running  up  to  illO  and  Till  an  acre,  as  against 
our  £89;  and  these  are  certainly  no  better  estates 
than  we  have. 
Taking  all  the  circumstances  into  account,  w’e  con- 
sider, therefore,  that  your  Company  have  secured 
properties  at  prices  which  it  is  reasonable  to 
expect  will  enable  satisfactory  dividends  to  be 
paid ; while,  as  regards  the  Estates  themselves, 
they  have  been  described  to  us  as  the  Darjeeling 
of  Ceylon. 
As  regards  the  future  of  the  Company,  I may 
state  that  in  nearly  every  instance  the  vendors  of 
the  Estates  stipulated  that  they  should  be  allowed 
to  apply  largely  for  the  Oi’dinary  Shares,  as  also  for 
almost  the  entire  issue  of  debentures.  Most  of  the 
Shareholders  are  personally  acquainted  with  Mr. 
Megginson,  through  w'hose  gooU  offices  the  estates 
have  been  acquired,  and  I think  I am  right  in  slat- 
ing that  the  highest  opinion  is  enteriaineu  in  Ceylon 
both  of  Mr.  Meggiuson’s  capabilities  as  a practical 
planter,  and  of  his  judgmeni  as  to  the  value  of  pro- 
perties in  Ceylon.  It  was  in  view  of  the  excep- 
tional work  that  was  done  by  Mr.  Megginson,  both 
in  connection  with  securing  these  eMates  and  raising 
tho  necessary  capital  to  pay  for  them,  that 
the  Directors  agreed  to  pay  him  the  com- 
mission of  2 per  cent.  to  which  I 
liave  already  referred,  and  which  we  consider 
a very  moderate  remuneration  for  the  work  done. 
As  you  are  aware,  he  found  the  greater  portion  of 
the  capital  that  was  required  and  if  that  capital 
had  been  subscribed  and  underwritten  here,  pirobably 
the  cost  of  raising  it  would  have  been  a good  deal 
more. 
Qeutlemon,  I do  not  think  I can  tell  you  anything 
more,  except  that  tho  Directors  .'ire  very  pleased  to 
see  you  here  today.  Dy  the  next  time  we  call  you 
together,  we  hope  to  be  able  to  lay  before  j'ou  a 
satisfactory  Statement  of  Accounts.  The  advance 
in  excliange  is  an  element  against  tea  at  the 
moment,  and  the  London  market  prices  for 
tea  have  of  late  unfortunately  gone  back  in- 
stead of  forward  to  meet  tlie  extia  cost  incurred 
bj'  exchange.  Dut  I trust  these  may  prove  only' 
temporary  drawbacks.  At  the  same  time  it  will  not, 
I think,  be  disadvantageous  to  the  eventual  w'ell- 
domg  of  the  tea  industry  if  a slight  set-back  should 
occur  now,  so  as  to  avoid  the  tendency  of  creating 
an  increased  cultivation  of  tea  in  Ceylon  and  India. 
As  I said  before,  this  is  only  a statutory  meeting, 
and  there  is  no  business  to  come  before  us,  but,  if 
any  gentlemen  like  to  ask  me  any  questions,  I shall 
be  glad  to  answer  them  to  the  best  of  my  ability'. 
iilr.  D.  Tonn:  May  I ask  what  is  ihe  amount  of  de- 
bentures. 
! he  Ch.ukma.v  : There  are  £23,000  debentures,  of 
which  £18,000  was  taken  by  the  vendors,  and  £.5,000 
only'  by  tne  shareholders. 
Mr.  A.  L.  Cross  ; — I think.  Sir,  what  you  say  about 
the  brickw'orks  is  correct.  Sir  .John  Grinliuton  will 
bear  me  out  when  I say  that  there  is  a considerable 
field  for  making  bricks  in  that  quarter. 
Sir  John  Grinlinton  : — Well,  Sir,  I have  been  mak- 
ing bricks  in  Portswood  for  some  years,  and  it  is 
not  my  habit  to  proceed  with  any  undertaking  unless 
I see  that  I am  making  a profit.  If  I do  n - t make 
a profit  I stop.  When  these  estates  were  taken  over 
by  your  Company,  in  deference  to  my  wish,  my  son, 
(who  managed  my  property)  would  not  accept  any 
orders,  as  I did  not  know  what  your  views  might  be, 
.and  I did  not  wish  to  do  anything  that  iniglit  in  the 
least  compiomise  you  in  anything  that  is  going  on. 
I wish  to  mention  one  thing  which  I think  it  is 
desirable  that  the  Company  sliouM  know,  not  that 
I have  any  interest  in  depreciating  the  intrinsic  value 
of  these  estates,  but  I should  like  to  say  this  ; Al- 
though you  have  land  in  Ceylon  of  an  altitude  that 
can  produce  tea  equal  to  the  best  tea  that  is  pro- 
duced anywhere,  and  although,  as  regards  those  estates 
that  the  Chairhiau  has  mentioned,  I do  not  believe 
that  any  man,  whether  he  is  interested  in  other 
properties  or  not,  would  for  a moment  dispute  the 
tact  that  he  has  stated  viz,  that  they  are  the 
cream  of  the  tea  estates  in  the  island,  still,  un- 
doubtedly what  you  have  got  to  do  uow  is  to  con- 
tend with  the  very  large  amount  of  acreage  that  is 
coming  into  cultivation  in  India,  and  when  that  tea 
is  brought  into  the  market  you  will  have  it 
competing  with  you.  Of  course  you  cannot 
extend  the  tea  cultivation  in  the  Ceylon  high  alti- 
tudes by  any  purchases  made  from  the  Government; 
there  is  a limit  to  that,  but  you  have  got  to  con- 
tend with  India,  and  I think  it  is  just  as 
well  to  bear  that  in  mind. 
The  Chairman  : There  is  a map  that  Mr.  Meggin- 
sou  sent  us  of  the  estates. 
{The  map  was  handed  round  to  the  Shareholders.) 
The  Chairman  : Well  Gentlemen,  I do  not  think 
I need  detain  you  any  longer. 
A vote  of  thanks  to  the  Chairman  was  proposed 
by  Mr.  A.  Jj.  Cross,  seconded  by  Mr.  G.  Tonn,  and 
unanimously  carried. 
! CANTING  AND  PUODUCE. 
'Thr  Tea  TiuAni'.  of  India. — 'The  references  to  the 
export  of  produce  in  Mr.  O'Conor's  review  of  tb.e 
trade  of  India  are  encouraging.  The  Indian  tea  trade, 
we  know,  has  increased  by  leaps  and  bounds,  but  it 
will  be  news  to  planters  and  tea  proiprictois  on  this 
side  to  learn  that  they  expected  to  lie  ruined  by  the 
closing  of  the  Indian  mints.  The  speeches  made  at 
public  meetings  of  tea  conqianies  in  London  at  the 
thne  were  not  at  nil  in  this  slrnin.  iUr.  O’C.  iior’s 
review  of  the  position  shows  l!i.', t on  the  whole 
Indian  tea  planter.s  are  d.oing  ve:y  well,  and  they 
deserve  to  succeed.  In  Great  ilritain  they  sell 
three  pounds  for  every  one  of  Cliineso  or  Japanese. 
It  is  but  tliirty  years  since  the  proportion  became 
worth  tabulating,  and  then,  in  l.S(i5,  the  Indian,  in- 
