April  i,  1897.]  THE  1'ROPICAL  AGRICULTURIST.  6^5 
THE  SOUTH  WANARAJAH  TEA 
ESTAT  ES,  LIMITED. 
A copy  of  the  prospectus  of  this  Company  has 
just  reached  us.  The  share  capital  is  £100,000,  divided 
into  5,000  cumulative  six  per  cent,  preference  shares 
of  £10  each  and  5,000  ordinary  shares  of  £10  each. 
The  Directors  are  Matthew  P.  Evens,  Director  of 
the  London  Commercial  Sale  Rooms,  Limited,  Chair- 
man. Hamilton  A.  Hancock  (Hancock  Brothers  & 
Co.),  28,  Mincing  Lane,  E.C.  Thomas  J.  Lawrance, 
Director  of  the  Ceylon  and  Oriental  Estates  Com- 
pany, Limited.  Oswald  C.  Magniac,  Hay’s  Wharf, 
Tooley  Street,  S.E.  Managing  Director  in  Ceylon. — 
W.  Reeve  Tatham,  South  Wanarajah  Estate.  Being 
interested  as  the  Vendor,  will  not  vote  as  a Director 
until  after  the  completion  of  the  sale.  Solicitors. — 
Harwood  and  Stephenson,  31,  Lombard  Street,  Lon- 
don, E.C.  F.  J.  and  R.  F.  de  Saram,  Colombo. 
Bankers. — The  National  Bank  of  Scotland,  Limited, 
37,  Nicholas  Lane,  E.C.  Head  office  in  Edinburgh, 
and  Branches  in  Scotland,  the  Chartered  Bank  of 
India,  Australia,  and  China,  Colombo.  Auditors. — 
Fuller  and  Wise,  Chartered  Accountants,  Portland 
House,  Basinghall  Street,  E.C.  Secretary  (jjro.  tern.) 
and  Offices. — P.  E.  Harvey,  39,  Lime  Street,  E ,C. 
This  Company  has  been  formed  to  acquire  as  going 
concerns  the  two  tea  estates  known  as  South  Wana* 
rajah  and  Dartry,  situated  in  Ceylon,  and  to  acquire, 
can’y  on,  and  purchase  other  estates  in  Ceylon  as 
favourable  opportunities  occur,  the  unissued  capital 
being  available  for  that  purpose. 
The  total  area  of  the  two  estates  is  713  acres,  viz.  : — 
467  acres  tea  in  full  bearing. 
46  „ „ in  partial  bearing. 
29  ,,  „ 2 to  3 years  old. 
17  ,,  ,,  1 to  2 ,, 
21  „ „ under  1 year  old. 
580 
41  „ cocoa  and  coffee. 
71  ,,  grass  and  timber. 
21  available  for  tea. 
Total.. 713  acres. 
It  is  intended  to  acquire  the  Dartry  Estate  as  from 
1st  January  last,  and  the  South  Wanarajah  as  from 
1st  July  next. 
Taking  a full  year’s  estimated  revenue,  the  profit 
derivable  from  both  properties  should  be  consider- 
able, as  shown  herein,  and  after  providing  for  the 
interest  on  the  present  issue  of  Debentures  and  the 
Dividend  on  the  present  issue  of  Preference  Shares 
the  balance  should  be  sufficient  to  afford  a handsome 
return  upon  the  Ordinary  Shares. 
As  46  acres  are  still  only  in  partial  bearing,  and  67 
aci-es  are  still  too  young  to  pluck  at  all,  it  will  be 
seen  that  the  output  of  made  tea  should  considerably 
increase  without  further  extensions,  and,  therefore, 
it  is  confidently  believed  that  there  will  be  a very 
considerable  addition  to  the  profits  of  the  Company 
in  two  to  three  years. 
South  Wanarajah  is  situated  in  the  Dikoya  district, 
4 miles  from  Hatton  Railway  Station,  and  has  the 
Government  cart  road  through  the  property.  The 
buildings,  which  are  sufficient  for  all  the  requirements 
of  the  estate,  include  a well-built  bungafow,  ample 
line  accommodation  for  the  coolies,  and  a new  and 
substantially-built  brick  factory,  equipped  with  all 
necessary  machinery  of  the  latest  type  for  the  present 
and  future  requirements  of  the  estate.  'The  motor 
power  is  a turbine  fed  by  an  abundant  supply  of  water 
from  the  river  Dikoya.  * 
The  Dartry  Estate  is  situated  in  the  District  of 
Gampola,  and  is  only  IJ  miles  from  the  Gampola 
Railway  Station,  and  has  a private  cart-road  from 
the  factory  to  the  Government  road,  which  facilitates 
and  ebeapens  transport  operations.  This  estate  en- 
joying as  it  does  a perfect  climate  for  tea,  and  the  com- 
mand of  ample  labour  supply  from  the  villages  adjoin- 
ing, may  be  said  to  possess  great  advantages  which 
cannot  be  too  highly  estimated.  The  property  has 
moreover  been  opened  in  a most  liberal  manner,  and 
86 
planted  with  Tea  of  the  best  jat.  The  buildings  are 
substantial,  consisting  of  a manager’s  bungalow, 
two  conductors’  bungalows,  and  sufficient  line  accom- 
modation for  the  coolies.  The  factory  is  well  equip- 
ped with  machinery  for  all  the  present  requirments 
of  the  estate.  The  motors  are  a turbine  and  an  oil 
engine,  the  latter  being  used  when  the  water  runs 
short,  as  it  usually  does  during  one  or  two  months 
of  the  year. 
The  Vendor’s  estimates  of  crop  from  the  estates 
for  the  present  season,  say  from  1st  January  to  31st 
December,  1897,  are  as  follows  : — 
Tea.  .3000,000  lb.  at  the  low  price  of  6id.  per  lb 
nett  (as  against  6|d.  per  lb.  for  last  season)  £7812 
Tea  Seed,  &o  . . . • • • 
8612 
Ceylon  working  expenditure  ...  £5000 
Depreciation  of  machinery,  London 
charges.  Directors’  and  Auditors' 
Fees  &c.  . . . . . . “162 
5462 
3150 
Deducting — 
Debenture  Interest. . ..  900 
Preference  Share  Dividend  • . 60 
960 
A balance  of  . . . . . . £2190 
is  left  available  for  Dividend  on  the  present  issue  of 
ordinary  Capital  of £18,000. 
The  price  to  be  paid  by  the  Company  for  the 
purchase  of  the  estates  and  properties  including  all 
the  dead  and  live  stock  (except  the  furniture  and 
personal  effects),  free  from  incumbrances,  except  as  to 
a mortgage  on  the  South  Wanarajah  Estate  for 
Rupees  55,000,  or  say  at  Is.  3d.  exchange  £3437  lOs. 
Od.,  has  been  fixed  by  the  Vandor  at  £33,000,  pay- 
able as  to  £23,000  in  cash,  and  as  to  £10,0ci0  by  the 
allotment  of  1000  fully-paid  Ordinary  Shares  of  £10 
each,  which  will  rank  for  dividend  as  from  1st  July 
next.  Taking  the  price  of  the  uncultivated  and  re- 
forested land  at  £10  per  acre,  the  price  of  the  land 
under  Tea,  Cocoa  and  Coffee,  including  all  the  build- 
ings factories,  and  machinery  thereon,  is  about  £57 
per  acre. 
Mr.  W.  R.  Tatham  the  Vendor,  who  has  had  a long 
experience  as  a Ceylon  Planter,  has  agreed  to  act  as 
Managing  director  during  the  term  of  ten  years. 
The  Vendor  will  pay  all  the  expenses  of  and  inci- 
dental to  the  formation  and  registration  of  the  Com- 
pany up  to  the  first  general  allotment  of  of  Shares,  and 
will  convey  the  estates  to  the  Company  free  of  ex- 
pense. 
^ 
PLANTING  AND  PRODUCE. 
The  Tea  Duty  Question. — In  a letter  which  ap- 
peared in  our  last  issue  a correspondent,  “ Planter,” 
drew  attention  to  the  question  of  the  reduction  or 
abolition  of  the  duty  on  tea.  In  our  opinion  the  ad- 
vantages of  such  a fi'^ral  step  are  obvious.  It  would 
benefit  all  who  are  cjiu-crned  in  the  industry.  The 
producer  would  gain  by  it  on  account  of  the  increase 
of  consumption  which  would  inevitably  follow,  and 
also  because  it  would  strike  an  effective  blow  at  the 
evils  that  attend  the  Customs’  supervision  of  tea  im- 
ports in  the  bonded  warehouses.  The  contention  that 
duties  keep  up  the  quality  of  teas  is,  we  believe,  a 
fallacy.  It  is  the  character  of  the  soil  and  natural 
conditions  and  surroundings  that  determine  quality. 
It  cannot  be  doubted  that  the  consumer  would 
hail  the  advent  of  abolition  with  great  satis- 
faction. Nothing  was  more  popular  with  the  masses 
than  the  reduction  of  the  tea  duty  effected  by  Mr. 
Goschen  when  he  was  Chancellor  of  the  Exchequer  in 
the  first  Unionist  Administration.  In  fact,  so  gratify- 
wds  that  policy  from  an  electioneering  point  of  view 
that  it  is  probable  the  present  Ministry,  should  they 
some  day  find  it  necessary  to  appeal  to  the  country, 
will  resort  to  a similar  expedient  to  revive  their  ap- 
parently waning  popularity  with  the  labouring 
classes,  as  evidenced  by  the  recent  bye-elections.  In- 
