THE  TROPICAL  AGRICULTURIST. 
Sept,  r,  1896.] 
PUBLIC  COMPANIES  AND  THEIR  bEPURTS. 
We  recently  listened  to  a discussion  relative 
to  tlie  respective  ineiits  of  the  reports  issued  by 
the  tea  companies  connected  with  Cejdon.  This 
discussion  assumed  the  form  mainly  of  argument 
for  and  against  the  directors  issuing  such  reports 
either  giving  or  withholding  the  fullest  infor- 
mation. Each  course  found  its  supporters  : one 
side  holding  the  view  that  it  was  not  desirable 
to  make  the  reports  exhaustive  of  information 
for  the  reason  that  the  outside  public  became 
possessed  of  knowledge  that  the  shareholders  alone 
could  claim,  ami  that  the  last  could  obtain  fuller 
detail  when  they  desired  it  on  api)lication  at 
the  oflices  of  the  companies.  Those  who  did  not 
coincide  with  this  view  urged  that  the  allairs 
of  companies  should  be  to  a very  large  extent 
public  property.  They  argued  that  the  general 
public,  as  investors  in  shares,  were  quite  as 
much  entitled  to  know  the  conditions  under 
which  they  might  purchase  as  were  the  actual  hold- 
ers of  those  who  desired  to  sell  them.  We  must 
say  that  we  agree  in  the  last-stated  opinion.  All 
companies  are  from  their  very  nature  public,  not 
private  atlairs.  Directly  a registered  company  claim- 
in'' limited  liability  submits  either  to  jiublic  quota- 
tion or  makes  appeal  by  circular  or  by  advertisement 
to  "eneral  investors,  it  can  no  longer,  in  our 
opinion  claim  to  keep  back  any  material  facts 
from  public  knowledge.  Let  us  consider  in  this 
connection  the  position  of  any  person  vho  may 
be  desirous  of  purchasing  sliares  in  a company. 
He  sees  in  the  lists  published  daily  the  quota- 
tion of  such  shares.  What  has  he  to  guide  his 
iud<'inent  as  to  whether  that  quotation  is  or  is 
not°to  be  justified  ? He  can  only  rely  upon  the 
judgment  of  others  who  have  been  willing  to 
pay” the  price  quoted.  In  fact,  he  has  to  rely 
entirely  and  solely  upon  the  public  conlidence 
as  expressed  by  tlie  published  quotations.  But 
he  must  certainly  be  entitled  to  such  informa- 
tion as  might  enable  him  to  form  his  own  in- 
dependent judgment ; and  this— -not  already  being 
a shareholder  and  unable  to  claim  detailed  in- 
formation at  beadquarters— he  can  only  obtain 
from  the  directors’ ' reports.  He  therefore  natur- 
ally, if  exercising  due  caution  before  investing, 
turn's  to  those.  Now  these  reports  as  issued  are 
of  strou''ly  divergent  character.  Some  directors, 
as  we  think  rightly  anrl  wisely,  issue  rei>orts 
alVordinc'  the  fullest  )>ossible  detail.  Others,  on 
the  coiitrary,  seem  to  seek  to  make  them  as 
bare  of  information  as  they  possibly  can  do. 
They  aim,  as  it  seems  to  us,  not  at  brevity  only, 
but  at  making  them  as  bald  and  colourless  as 
is  possible.  Surely  the  latter  course  cannot  be 
fair  towards  the  public  interests  concerned.  And 
ue  hold  even  a stronger  view  than  this.  We 
say  that  ilirectors  cannot  be  justified  in  their 
adoption  of  such  reticence  as  to  the  affairs  they 
direct.  There  is  given  to  them  a very  great, 
and,  in  some  respects,  a dangerous  privilege. 
They  may  incur  indebtedness  to  any  amount  they 
may  sec' fit,  while  they  are  relieved  as  to  re- 
spo'nsibility  for  it  beyond  a certain  limitation, 
that  of  th'eir  available  capital  as  represented  by 
individual  investment.  Surely  the  exercise  of 
this  privilege  demands  a quid  pro  rjuo  for  the 
public  who  may  trust  them  ; who  may,  on  the 
faith  of  the  directors  holding  nothing  back,  sup- 
ply them  on  credit  with  goo'ls  or  cash.  It  is 
not  therefore  the  shareholders  alone  that  should 
receive  full  confidence.  Other  inteie.sts  out.side 
of  that  body  demand  it,  but  these  have  not  the 
power  of  examining  into  details.  hen,  tl>eie- 
fore  we  see  a report  that  evidently  aims  at 
with’holding  that  full  confidence,  we  feel  our 
20 
IS3 
pursestrings  tighten  as  regards  the  company 
issuing  it.  It  is  not  for  the  directors  to  urge 
that  full  revelations  might  affect  the  value  of 
their  shares.  They  claim  and  possess  a privilege 
which  can  only  be  due  to  them  so  long  as  every- 
one is  enlightened  as  to  their  position.  Limited 
companies  can  in  no  sense  be  private.  Publicity 
is  the  condition  of  their  being. 

MORE  CEYLON  TE.\  COMPANIES: 
GREAT  SUCCESS  IN  THE  FLOATING  OP 
THE  GALLAHA  ESTATES  AND 
AGENCY  CO. 
The  linancial  papers  by  this  mail  announce 
the  legistration  of  the  “Midland  (Ceylon)  Tea 
Plantations  Co.,  Ld.,”  with  a capital  of  £60,000 
to  acquire  and  work  the  well-known  properties 
of  Gneiss  Bock  and  Strathellie  ; but  this  will  be 
regarded  as  old  news  in  Ceylon  as  it  was  in 
“the  Lane,”  on  being  referred  to.  The  Com- 
pany is  evidently  a private  one  chiefly,  and  the 
provision  of  the  full  amount  of  capital  required 
a foregone  conclusion  before  registration. 
More  important,  with  reference  to  the  credit 
of  the  Colonjq  is  the  very  successful  way  in 
which  “The  Gallaba  Ceylon  Tea  Estates  and 
Agency  Co.,  Limited,”  with  a capital  of  £165,000. 
has  been  floated.  True,  the  vendor  Mr.  Charles 
Straeban,  reserved  to  himself  the  whole  of  the 
Ordinary  shaves  (£50,000)  as  part  of  the  purchase 
money — a fact  which  must  have  given  special 
confidence  to  applicants  for  the  Mortgage  De- 
bentures and  Preference  Shares.  But,  in  reality, 
no  a))plications  for  debentures  were  required,  the 
whole  (£55,000)  having  been  subscribed  for  pri- 
vately— indeed  many  times  over,  we  believe — 
before  the  issue  of  the  prospectus,  although  the 
interest  was  placed  at  5 per  cent.  All,  there- 
fore, that  was  oilered  to  the  public,  with  less 
than  two  days  allowed  for  application,  were  the 
£60,000  of  six  per  cent  pi'eference  shares ; and 
considering  the  circumstances,  it  is  perhaps  not 
surprising,  though  very  satisfactory,  that  the 
amount  required  was  at  once  subscribed  four- 
fold. This,  certainly,  betokens  full  confidence 
in  our  Tea  Enterprise  and  the  continued  pros- 
perity of  Ceylon.  It  will  have  been  noted  front 
the  prospectus  that  the  area  under  tea  and 
cardamoms  has  been  priced  at  the  comparatively 
moderate  rate  of  £47  5s  per  acre ; and  with  so 
extensive  and  well-equipped  a Factory  as  that 
on  Gallaba  and  the  Colombo  business,  centrally 
situated,  under  a Manager  so  well-known  for 
his  experience  and  .sound  judgment,  a pros- 
perous career  for  the  Company  may  Well  be 
anticipated. 
Both  the  Midland  and  Gal!  .ha  Tea  Com- 
panies have  our  best  wishes  for  their  success. 
J.F. 
CACAO  IN  MEXICO. 
In  the  interesting  report  by  Sir  Henry  Dering  on 
tha“  Oiiltivatiou  of  Cacao  in  Mexico,”  reproduced 
in  he  Journal  of  the  Society  oj  Arts  for  June  19,  p. 
059  it  is  stated  ” The  species  of  cacao  tree  most 
cultivated  in  Mexico  are — Cacao,  or  Thcobroma  ovali- 
folia,  T.  hieolof,  T.  augustifolia.  There  are  other 
kinds  known,  generally  found  growing  wild,  which 
come  under  the  head  of  the  Guazuma  or  guacimn, 
Guazuma  polypotrya  being  the  principal  species..* 
The  latter  part  of  this  extract  puzzled  us  a good 
deal,  and  we  addressed  a letter  on  the  subject  to 
the  Foreign-office,  and  asked  for  specimens.  These 
having  arrived  we  found  that  they  belonged  entirely 
to  Theobroma  bkolor,  and  had  no  relation  whatever 
