454 
THE  TROPICAL  AGRICULTUKlSf. 
[Jan.  I,  i8q7. 
the  Company’s  estates  you  will  observe  they  are  as 
follows  : — Golfee,  210  acres  ; tea,  2,106  acres  ; cocoa,  671 
acres;  grass,  163  acres;  chena,  379  acres;  forest  and 
timber  trees,  511  acres;  making  a total  of  4,303i 
acres.  I will  now  deal  with  the  profits  for  the  past 
ear.  These,  as  you  will  see  by  the  report,  have 
een  £10,708  Is  Id,  to  which  must  be  added  tne  sum 
of  £1,270  18s  lOd.  the  balance  brought  forward  from 
the  year  1894-5,  making  together  £11,978  19s  lid.  In 
my  remarks  last  year  I referred  somewhat  fully  to 
the  suspense  account.  As  I at  the  time  explained, 
this  account  was  brought  about  by  the  substitution 
of  Cinchona  for  Coffee  and  Tea  for  Cinchona.  This 
has  been  done  at  a cost  of  .£21,704  14s  7d,  of  which 
£14,056  8s  8d  has  been  paid.  The  accopt  is  being 
I’educed  every  year,  and  I hope  you  will  consider 
the  result  satisfactory.  In  dealing  with  it  I think 
we  have  been  a little  too  virtuous.  This  year,  for 
instance,  in  my  opinion,  £150  of  the  amount  charged 
to  this  account  might  have  been  charged  to  capital, 
instead  of  to  the  suspense  account.  To  those  who 
have  bought  shares  in  the  Company  at  a low  rate, 
it  does  not  much  matter  whether  items  are 
charged  to  the  suspense  or  capital  account, 
but  it  is  only  right  that  “ Shareholders 
who  have  been  through  the  brunt  of  the 
battle  should  share  in  dividends  fairly  earned.  I may 
state  that  during  the  past  six  years  our  dividends 
have  been  as  follows 1891,  2i  per  cent;  1892,  IJ 
per  cent : 1893,  3 per  cent ; 1894,  2 per  rent  : 1895, 
4 per  cent ; and  this  year  5 per  cent.  With  regard 
to  the  future  prospects  of  tea,  our  principal  customers 
abroad  have  been  Russia,  Canada,  and  America, 
and  in  all  those  countries  the  popularity  of 
Indian  and  Ceylon  tea  is  growing  fast.  I read  in 
the  report  of  Messrs.  George  White  and  Company 
that  in  the  year  ending  31st  July  last  there  were 
8U  million  pounds  against  75  millions  in  1894,  the 
exports  being  Ti  millions  in  1896.  It  is  gratifying  to 
find  that  the  exports  of  Ceylon  Tea  in  1896  was 
73  million  pounds  of  Indian  Tea.  I will  read  you  an 
extract  from  a letter  by  Mr.  Mackenzie  which  appeared 
in  the  Home  and  Colonial  Midi  of  June  5.  With  re- 
gard to  Indian  and  Ceylon  tea  in  America  Mr. 
Mackenzie  says  “ The  increase  in  the  im- 
ports of  British-grown  teas  into  North  America  from 
5,379,542  lb.  in  1894  to  9,283,1-14  lb.  in  1895,  an  in- 
crease of  72  per  cent,  is  a striking  fact,  and,  while 
demonstrating  the  value  of  past  efforts,  gives  the 
greatest  encouragement  for  the  future.  It  may  be 
confidently  anticipate!  that,  as  in  the  United  King- 
dom, so  in  America,  Ceylon  and  Indian  teas  will 
now'  rapidly  come  into  general  use  and  establish 
for  theniselves  a wide  demand.  . . . Besides  gene- 
r.ul  advertising,  we  assist  by  subsidies  many  firms 
who  advertise  in  many  ways— in  papers  and  maga- 
zines, by  circulars  and  samples,  by  posters  and  signs, 
and  by  ‘ demonstrations,’  where  g.rls  give  away  tea, 
and  advise  as  to  method  of  making  it,  in  leading 
shops  in  many  towns.  We  have  also  done  much  at 
theatres,  giving  tea  to  such  as  care  to  have  it  between 
the  acts ; and  we  have  a lady  who  attends  all  church  and 
social  gatherings  in  New  York  and  Brooklyn,  to  which 
she  can  gain  admittance,  with  a complete  apparatus 
of  "urn,  teapot,  several  dozen  cups  and  saucers,  &c. 
She  le’ctures  on  the  merits  of  pure  machine-made  tea 
as  contrasted  with  the  weak,  washy,  hand-rolled 
article.”  This,  I think  you  will  agree  with  me,  shows 
the  great  effort  which  is  being  made  to  supersede 
Japan  by  better  class  tea.  At  home  there  is  still 
considerable  difficulty  in  procuring  pure  Ceylon  tea 
at  the  stores  and  elsewhere.  This  I can  only  account 
for  by  the  fact  that,  in  order  to  keep  up  a certain 
retail  price,  the  Ceylon  tea  is  mixed  with  inferior 
kinds  by  the  retailers.  I shall  now  be  pleased  to 
answer  any  questions  Shareholders  may  wish  to  ask, 
and  move  that  the  report  and  accounts  be  received 
and  adopted. 
In  reply  to  Mr.  Tye,  the  Chairman  stated  that  the 
variety  of  the  coffee  on  the  estates  was  what  remained 
of  the  old  Ceylon  coffee.  The  Liberian  coffee  was 
interlined  in  the  cocoa. 
Mr.  Ford  North  expressed  his  entire  satisfaction 
with  the  report,  which  he  maintained  did  great 
credit  to  the  directors  and  managers.  He  was 
pleased  to  see  that  there  had  been  no  tendency  to 
do  away  with  coffee,  which  he  believed  would  pay  in 
thi  long  run.  He  deprecated  the  existence  of  the 
suspense  account.  As  a man  of  t wenty  years’ experi- 
ence in  large  tea  concerns  he  had  long  been 
accustomed  to  see  suspense  accounts  extinguished. 
In  the  present  case  he  would  be  quite  satisfied  if 
the  account  was  not  increased. 
The  Chairman  explained  that  when  the  suspense 
account  was  opened  they  issued  6 per  cent,  stock, 
which  now  stood  at  12,  and  they  (the  directors) 
did  not  want  t > issue  more.  If  they  were  their  own 
masters  they  could  charge  everything  against  revenue, 
but  when  others  had  to  be  considered  this  would 
be  decidedly  unfair.  This  year  they  had  to 
face  a factory,  and  two  or  three  years  hence 
perhaps  another.  He  considered  that  the  ex- 
pense should  be  charged  to  capital  account, 
but  circumstances  might  make  it  desirable  to 
charge  it  to  suspense  account.  Subject  to  this  there 
need  be  no  more  additions  to  the  suspense  account. 
This  year  the  additions  had  been  made  by  the  cost 
of  fresh  plant,  a withering  shed  and  timber  for  the 
new  factory.  He  might  add  that  if  the  profits  had 
been  taken  from  the  suspense  account  there  would 
have  been  sufficient  to  have  paid  7j  per  cent. 
The  following  resolutions  were  then  unanimously 
adopted : — 
1.  Proposed  by  the  Chairman  and  seconded  by  Mr. 
Pettit  : “•  That  the  report  and  accounts  be  received 
and  adopted.” 
2.  Proposed  by  the  Chairman  and  seconded  by  Mr. 
Bois  : “ That  the  payment  of  a dividend  on  the  6 per 
cent  preference  shares  for  the  six  months  ending  De- 
cember 31,  1895,  be  confirmed,  and  that  for  the 
six  months  ending  June  30,  1896,  be  paid  forth- 
with,” 
3.  Proposed  by  the  Chairman  and  seconded  by 
Mr.  Austin  : “ That  a dividend  on  the  ordi- 
nary shares  for  the  year  ending  June  30, 
1896,  at  the  rate  of  5 per  cent,  equal  to  lOs 
per  share  (free  of  income  tax),  be  paid  forthwith  ” 
4.  Proposed  by  Mr.  George  White  and  seconded  by 
Mr.  Ford  North,  ‘‘  That  Mr.  Henry  Bois,  a director 
who  retires  on  this  occasion,  be  re-elected.” 
5.  Proposed  by  Mr.  Collinge  and  seconded  by 
Mr.  Ford  North : “ That  Mr.  William  Austin,  a 
director,  who  retires  on  this  occasion,  be  re-elected.” 
6.  Proposed  by  Mr.  Collinge  and  seconded  by  Mr. 
Tye,  “ That  Mr.  John  Smith  be  re-elected  auditor  for 
the  year  1896-7  at  the  remuneration  of  £21.  ’ 
A vote  of  thanks  to  the  Chaiiman,  Directors,  and 
Managers  of  the  estates  in  Ceylon  was  proposed  by 
Mr.  Ford  North  and  seconded  by  Mr.  Collinge. 
Mr.  Giles  Walker  expressed  his  pleasure  at  the 
inclusion  of  the  Managers  in  che  vote  of  thanks.  Ha 
knew  how  hard  they  worked,  and  a recognition  of 
this  kind  was  sure  to  give  a fillip  to  their  efforts. 
The  Chairman  having  briefly  responded,  the  pro- 
ceedings terminated. 
THE  ASSOCIATED  TEA  ESTATES  OF 
CEYLON,  LIMITED. 
The  statutory  meeting  of  the  shareholders  of  this 
company  was  held  at  the  offices  of  the  company, 
31,  Billiter  Buildings,  on  Monday  last. 
The  chair  was  occixpied  by  Sir  Alexander  Wil- 
son, chairman  of  the  directors. 
The  secretary  having  read  the  notice  convening 
the  meeting,  the  chairman  said  : — 
Gentlemen,  this  is  merely  a formal  meeting  which  is 
held  within  four  mouths  of  the  formation  of  the 
company,  in  accordance  with  the  Act  of  Parlia- 
ment. I have  very  little  to  say  except  that  all  the 
estates  purchased  by  the  company  were  transferred 
about  the  10th  of  September,  with  the  exception 
of  Doragalla,  the  transfer  of  which  was  delayed 
on  account  of  a marriage  trust  sottlemont  on  a por- 
tion of  the  estate,  the  existence  of  which  had  been  over- 
looked by  the  vendjr,  having  been  originally  made  by 
him  over  fifty  years  ago.  The  matter  has  now  been 
put  right,  and  the  necessary  documents  arc  at  pro- 
