Sept, 
I,  I 
896.J 
THE  TROPICAL  AGRICULTURIST. 
169 
TFIE  ASSOCIATED  TE/V  ESTATES  OF 
CEYLON,  LIMITED. 
The  mail  lias  brought  us  a copy  of  tlie  pros- 
pectus of  this  Company  which  has  just  been 
brought  out  by  Mr.  W.  H.  Davies  of  Colombo 
with^a  capital  £150,000,  divided  into  8,000  six 
per  cent  Cumulative  Preference  Shares  of 
£10  each  and  7,000  Ordimary  Shares  of 
£10  each.  The  Preference  Shares  are  entitled 
to  a Cumulative  Preferential  Dividend  of  6 
per  cent  per  annum,  and  are  also  preferential 
as  to  capital.  Mr.  Davies’  firm  in  Colombo  have 
heard  by  wire  from  him  that  the  capital  olleied 
for  subscription  was  over  applied  for.  Mr.  Davies 
is  forming  auotuer  Company  of  tlie  prospectus  of 
whicli  we  are  promised  a copy  shortly.  Of  the 
present  company  the  otlicialsare  : 
DiRKcroRS.-Sir  Alexander  Wilson  (Chairman  of 
the  Mercantile  Bank  of  India,  Limited),  Loudon. 
•S  R Earle,  Esq.  (Director  of  Alsiug  oJ  Company, 
Limited),  7.  Oxford  Court,  London  B.  C. 
.John  McEivan,  Esq.  (of  the  Allynugger  Tea  Com- 
panv,  Limited),  5 BUliter  Avenue,  E,C, 
^ • Mr  Earle  being  a Director  of  the  Malabar  Com- 
pany (fumited),  who  are  the  Vendors,  will  not  act 
BA^^^The  ^ 18-  Bishopsgate 
®'The’Sori  Bank  of  India  (Limited),  London 
^^^SoLiciTORS.— Messrs.  Sanderson,  Holland,  Adkin 
& Co.,  46  Queen  Victoria  Street,  London,  E.C. 
Auditor.— J.  M.  Henderson,  Esq.,  f.c.a.,  2,  Moor- 
gate  Street  Buildings,  E.C.  ^ ^ 
^ Brokers.— Messrs.  Milln  & Robinson,  Austin 
Friars,  and  Stock  Exchange,  Loudon,  E C.  Messrs. 
Hart  & Watson,  63.  St.  Vincent  Street,  Glasgow, 
mLsis.  Higgins  N IVrton,  21,  Dale  Street  Liverpool. 
Agents  in  Ceylon.— Messrs.  Finlay,  Muir  & Co., 
^ SecTORIEs  and  Managing  Agents.— Messrs.  Mc- 
Meekin  & Co.,  5,  Billiter  Avenue,  London,  E.C. 
Ofitce.— 31,  Billiter  Buildings,  London,  L.O. 
The  Company  is  formed  to  take  over  as  going  concerns, 
and  to  apialgamate  under  one  management,  the  tol- 
owiug  carefully  selected  tea  estates  in  Ceylon,  an 
to  purchase  further  estates  as  opportunity  offers  :— 
Tea  in  acres. 
Name  of 
Estate. 
Districts. 
cS 
a 
<0 
a 
Chesterford  ..Kelani 
Valley  .. 
fDukinfield  ..UdaPus- 
sellawa  . . 
Doragalla  ..Pussel- 
lawa 
Horagoda  ..Kalutara.. 
Madultenuc  ..Kelani 
Valley  .. 
i Commonly  known  as  “ Silver  Kandy.” 
The  two  principal  estates  to  be  taken  over  by  the 
Company  have  been  carefully  investigated  and  re- 
ported npnn  by  experts  in  Ceyhm,  and  their  reports, 
which  are  in  great  detail,  may  be  seen  at  the  Com- 
pany’s Offices.  As  regards  the  other  estate.s  the 
figures  have  been  taken  from  the  Proprietors  Si,ate- 
ments. 
22 
The  following  is  a Summary  : — 
There  is  a total  area  of  about  2,789  acres,  of  which 
1,408  acres  are  in  full  bearing. 
15  ,,  4 years  old. 
.358 
1,008 
2,789 
and  younger. 
Foresi,  Chena,  &c. 
^ 2 
•— * hr  (15  T3  ^ ^ 
fe-  ^ P OC3  o 
278  15  266  250  809 
210  — 20  54  284 
620  — — 371  991 
150  — 20  248  418 
1.50  — 52  85  287 
1,408  15  358  1,008  2,789 
The  crop  for  1895  was  663,628  lbs.,  yield-') 
ing  a net  profit  of..  ..  £9,172  1 
The  crop  for  1896,  taken  on  the  usual  | at  Exchange 
basis  of  calculation  for  new  tea  )•  of  1/2 
coming  into  bearing,  is  estimated  per  Rupee, 
at  700,000  lbs.,  to  yield  a net  profit 
of £9,461  J 
Of  the  increase  estimated  for  1896,  so  far  as  the  year 
has  gone,  the  actual  result  fully  justifies  the  figures 
given.  The  reports  referred  to  have  been  submitted 
to  Mr.  W.  Forsythe,  a well-known  Ceylon  planter, 
who  is  now  in  London,  and  he  has  expressed  his 
satisfaction  with  the  same,  and  has  estimated  that, 
when  all  the  young  tea  comes  into  full  bearing,  there 
should  be  a considerable  increase  in  the  crop.  The 
original  report  of  Mr.  Forsythe  may  be  seen  at  the 
Company’s  office.  At  the  price  agreed  to  be  paid  for 
the  estates,  taking  the  Forest  Chena,  &c.,  at  £5  per 
acre,  the  laud  under  Tea  works  out  at  an  average 
cost  of  the  Company  of  £55  8s  per  acre,  which, 
considering  the  high  character  of  the  Dukinfield 
Estate,  is  very  reasonable.  The  present  average 
output  of  the  1,408  acres  of  Tea  in  full  bearing  is 
at  the  rate  of  about  450  lb.  per  acre,  and,  when 
the  373  acres  of  young  Tea  come  in,  there  should 
be  a proportionate  increase  of  revenue  to  the  Com- 
pany ; besides  w-hich  there  would  be  the  natural  in- 
crease upon  the  Estates  generally. 
A feature  in  the  selection  of  the  Estates  is  the 
distribution  over  high  and  low-country,  the  pro- 
perties ranging  from  Udapussellawa,  at  an  elevation 
of  5,500  feet,  to  the  Kelani  Valley  with  an  elevation 
of  450  feet  above  sea  level.  This  should  lead  to  a 
more  uniform  aggregate  result  than  by  having  a 
series  of  properties  all  in  one  locality.  There  is 
ample  Factory  accommodation  for  present  require- 
ments upon  the  Estates,  and  there  is  an  experienced 
staff  of  officials  and  employees,  which  will  be  taken 
over  by  the  Company,  so  that  the  business  will  be 
carried  on  without  any  break  in  its  continuity..  The 
price  to  be  paid  for  the  five  Estates  above-mentioned 
has  been  fixed  by  the  Vendors  at  £103,720,  leaving 
a balance  of  .£6,280  out  of  the  present  issue 
available  for  working  capital,  the  Vendors  agree- 
ing to  pay  all  the  expenses  in  connection  with 
the  formation  of  the  Company  down  to  allotment. 
The  purchase  price  is  payable  in  Cash  owing  to  the 
difficulty  of  adjusting,  on  the  basis  of  a payment 
partly  in  Cash  and  partly  in  Shares,  the  interests 
of  the  several  individual  owners  from  whom  the  Estates 
were  in  the  first  instance  acquired.  The  Vendors  and 
theu’  friends  will,  however,  apply  for  a substantial 
number  of  Shares.  The  Vendors  have  agreed  to  make 
out  a good  title  to  the  Estates  to  be  acquired  by  the 
Company  to  the  satisfaction  of  the  legal  advisers  of 
the  Company  in  Ceylon.  The  following  Certificate 
has  been  given  by  Mr.  J.  M.  Henderson,  f.c.a.,  to 
whom  the  original  Reports  have  been  submitted  for 
investigation  : — 
2,  Moorgatf,  Street  Buildings, 
London,  E.C.,  30th  June,  1896. 
To  the  Directors,  the  Associated  Tea  Estates  of 
Ceylon,  Limited. 
Gentlemen, — I have  compared  the  tables  which  you 
have  prepared  and  submitted  to  me,  as  under,  with 
the  original  Reports  from  Ceylon  referring  to  the 
first  two  estates,  respectively,  and  in  the  other  three 
estates  with  the  figures  given  by  the  proprietors,  and 
Mr.  W.  H.  Davies  of  Colombo,  and  I hereby  certify 
that  the  figures  showing  the  crops  in  1895  and  the 
estimated  crops  for  1896  are  correctly  extracted 
therefrom.  I also  find  that  the  profits  in  1895  and 
the  estimated  profits  for  1896,  as  given  in  the  said 
tables,  are  fairly  deduce!  from  the  said  Reports  and 
statements,  and  the  estimates  given  therein. 
In  the  estates  marked  (*)  the  profits  for  1896  are 
taken  on  the  basis  of  1895. 
